Resettlement Plan (Draft)

Home , Guyuan, Haiyuan County, Longde County, Shapotou District, Tongxin County, Xihaigu

July 2016

PRC: Ningxia Liupanshan Poverty Reduction Rural Road Development Project

Prepared by the Transportation Department of Ningxia Hui Nationality Autonomous Region for the Asian Development Bank.

CURRENCY EQUIVALENTS 1.00 = US$0.16243 US$1.00 = CNY6.1565

ABBREVIATIONS AAOV – Average Annual Output Value ADB – Asian Development Bank AHs – Affected Households APs – Affected Persons AV – Administrative Village CRO – County Resettlement Office DI – Design Institute DMS – Detailed Measurement Survey FS – Feasibility Study HCG – Haiyuan County Government HCPMO – Haiyuan County Project Management Office HD – House Demolition LA – Land Acquisition LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement LEF – Land-Expropriated Farmer L&RO – Land & Resources Office MOU – Memorandum of Understanding M&E – Monitoring and Evaluation NDRC – Ningxia Development and Reform Commission NHAR TD – Ningxia Hui Autonomous Region Provincial Transport Department PADO – Poverty Alleviation and Development office PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal PRO – Project Resettlement Office RIB – Resettlement Information Booklet RP – Resettlement Plan SES – Socioeconomic Survey SPS – Safeguards Policy Statement of ADB TRO – Township Resettlement Office

WEIGHTS AND MEASURES km – kilometer m² – square meter mu – 666.7 m²

NOTES (i) In this report, "$" refers to US dollars. (ii) This resettlement plan 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. (iii) 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.

NINGXIA LIUPANSHAN POVERTY REDUCTION RURAL ROAD DEVELOPMENT PROJECT FINANCED BY THE ADB

Resettlement Plan for

Zhengqi–Jiucai–Sikouzi Road of Haiyuan County of Zhongwei City in Ningxia Hui Autonomous Region

(Draft based on preliminary design)

July 2016

Prepared by Transportation Department of Ningxia Hui Nationality Autonomous Region

宁夏回族白治区交通运输厅

Endorsement Letter

22Ju1y2016

Mr. Masahiro Nishimura Transport Specialist Asian Development Bank 6 ADB Avenue Mandaluyong City Metro Manila 1550 Philippines

Subject: P48023-PRG Ningxia Liupanshan Poverty Reduction Rural Road . Development project

Dear Mr. Masahiro Nishimura

In accordance with le]9ya$ laws and legislations of the pRG government Policy statement (sPS) 2oog, Resetflement plans (Rps) and a consoli D;yglonment Plan (EMDP rring att irrqelt components. (GAP) covering all project These reports are prepa pregared for the proposed projbct roads by institutes as well as site reconnaissance by consultant team. This is to formally advise you that there is no objection to the Rps, EMDp and GAp documents being posted on the ADB website according to ADB disclosure procedures. We further confirm that we will implement all required actions as set out in the RP, EMDP and GAp during project implementation and accept ADB's supervision and inspection of the action plan implemihtaiion and disclosure of monitoring reports dudng implementation.

Yours sincerely,

Deputy Director, Planning Division Ningxia Department of Transport

GLOSSARY

Affected person (or – Those who are physically displaced (relocation, loss of household) residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas Compensation – Money or compensation of other kinds to which the people affected are entitled in order to replace the lost asset, resource or income Entitlement – Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base Income restoration – Reestablishing income sources and livelihoods of people affected Resettlement – Rebuilding housing, assets, including productive land, and public infrastructure in another location Resettlement Impact – Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms Resettlement Plan – A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation Vulnerable Group – Distinct groups of people who might suffer disproportionately from resettlement effects, as specified in this plan Significantly – Persons who lose 10% or more of their farmland or income, or Affected Persons persons who are affected by entire house demolition and need to be relocated

CONTENTS

1 PROJECT OVERVIEW ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 OVERVIEW OF PROJECT PREPARATION ...... 3 1.3 SUBPROJECTS IN HAIYUAN COUNTY ...... 4 1.4 MEASURES EMPLOYED TO AVOID OR FURTHEST REDUCE LAND ACQUISITION AND DEMOLITION ...... 5 2 PROJECT IMPACT ...... 6

2.1 SURVEY METHOD AND PROCESS ...... 6 2.1.1 Project Survey at the Early Stage ...... 7 2.1.2 Data source and survey method ...... 7 2.2 PROJECT IMPACT SCOPE AND OVERVIEW ...... 8 2.3 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 8 2.4 TEMPORARY LAND OCCUPATION ...... 10 2.5 ANALYSIS OF IMPACT OF RESIDENTIAL HOUSE DEMOLITION ...... 10 2.6 IMPACT OF DEMOLISHED BUILDINGS OF ENTERPRISES AND PUBLIC INSTITUTIONS ...... 10 2.7 AFFECTED INFRASTRUCTURE AND GROUND ANCILLARY FACILITIES ...... 10 2.8 AFFECTED POPULATION ...... 11 2.8.1 Overview ...... 11 2.8.2 Affected vulnerable groups ...... 11 2.8.3 Project impact on women ...... 12 2.8.4 Affected minority population ...... 12 3 SOCIAL AND ECONOMIC PROFILE ...... 12

3.1 SOCIOECONOMIC PROFILE OF PROJECT AREA ...... 12 3.1.1 Socioeconomic profile of Zhongwei city ...... 12 3.1.2 Socioeconomic profile of Haiyuan County ...... 13 3.1.3 Socioeconomic profile of affected towns ...... 14 3.1.4 Introduction to Socioeconomic status of affected villages ...... 14 3.2 SOCIOECONOMIC PROFILE OF AFFECTED VILLAGES ...... 15 3.2.1 Sample survey ...... 15 3.2.2 Nationality and gender ...... 15 3.2.3 Age structure ...... 15 3.2.4 Education background ...... 16 3.2.5 Housing size ...... 16 3.2.6 Farmland resource ...... 17 3.2.7 Household income and expenditure...... 17 3.2.8 Public opinion survey ...... 18 3.3 AFFECTED ENTERPRISES AND PUBLIC INSTITUTIONS AND SENSIBILITY IMPACT ...... 19 3.4 WOMEN’S DEVELOPMENT IN PROJECT AREA ...... 19 3.4.1 Rural women profile in project areas...... 19 3.4.2 Women’s roles in household livelihoods ...... 19 3.4.3 Decision-making at household and community levels ...... 20 3.4.4 Women’s transport needs ...... 20 3.4.5 Project Impacts on Women ...... 21 3.4.6 Measures in RP in facilitating women’s development ...... 22 4 LEGAL FRAMEWORK AND POLICIES ...... 22

4.1 ADB'S POLICY ...... 22 4.2 THE PRC’S LAWS AND REGULATIONS ON LAND ACQUISITION AND RELOCATION ...... 22 4.3 RELEVANT POLICIES OF NINGXIA HUI AUTONOMOUS REGION AND HAIYUAN COUNTY ...... 24 4.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 25

4.5 DIFFERENCES OF ADB’S AND LOCAL POLICIES ...... 27 4.5.1 Compensation and resettlement for house ...... 27 4.5.2 Compensation and resettlement for land ...... 27 4.5.3 Compensation and resettlement for vulnerable groups ...... 27 4.5.4 Consultation and disclosure ...... 27 4.5.5 Resettlement monitoring, evaluation and reporting ...... 27 5 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 28

5.1 RESETTLEMENT PRINCIPLES ...... 28 5.2 CUT-OFF DATE OF COMPENSATION ...... 28 5.3 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 29 5.4 TEMPORARY LAND OCCUPATION ...... 29 5.5 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 30 5.6 COMPENSATION FOR GROUND ATTACHMENT AND INFRASTRUCTURE ...... 31 5.7 COMPENSATION FOR YOUNG CROPS ...... 32 5.8 STANDARD OF OTHER COSTS ...... 32 5.9 ENTITLEMENT MATRIX...... 32 6 INCOME RESTORATION AND HOUSING RESETTLEMENT MEASURES ...... 34

6.1 IMPACT OF LAND ACQUISITION AND INCOME RESTORATION MEASURES ...... 34 6.1.1 Impact of and acquisition ...... 34 6.1.2 Income restoration plan and assistance measures ...... 37 6.2 DEMOLITION AND HOUSING RESETTLEMENT PLAN ...... 40 6.2.1 House Demolition Impacts and Relocation options ...... 40 6.2.2 Other subsidy policy ...... 41 6.3 MEASURES FOR VULNERABLE GROUPS ...... 41 6.4 WOMEN’S DEVELOPMENT MEASURES ...... 42 6.5 RECOVERY PLAN OF GROUND ATTACHMENTS AND SPECIAL FACILITIES ...... 43 7 INSTITUTIONAL ARRANGEMENTS ...... 43

7.1 INSTITUTIONAL ARRANGEMENTS ...... 43 7.2 ORGANIZATIONAL RESPONSIBILITY ...... 44 7.3 STAFFING AND EQUIPMENT ...... 47 7.3.1 Staffing ...... 47 7.3.2 Equipment ...... 47 7.3.3 Organizational Training Program ...... 47 8 RESETTLEMENT BUDGET ...... 47

8.1 RESETTLEMENT BUDGET ...... 47 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCE OF FUND ...... 48 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 49 8.4 APPROVAL OF BUDGET INCREASE ...... 50 9 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 62

9.1 PUBLIC PARTICIPATION ...... 62 9.1.1 Stakeholder identification and information disclosure ...... 62 9.1.2 Participation during project preparation ...... 62 9.1.3 Participation plan during implementation ...... 62 9.1.4 Adaptation of RP based on public opinions ...... 63 9.2 GRIEVANCES AND REDRESS ...... 55 9.2.1 Grievances ...... 55 9.2.2 Grievance Procedures ...... 55 9.2.3 Grievance Redress Principle ...... 57 9.2.4 Contents and Form of Reply to Complaints ...... 57

9.2.5 Report of Grievance ...... 57 10 IMPLEMENTATION PLAN OF LAND ACQUISITION AND RESETTLEMENT ...... 58

10.1 PRINCIPLE FOR IMPLEMENTATION OF LAND ACQUISITION AND RESETTLEMENT ...... 58 10.2 RP IMPLEMENTATION SCHEDULE ...... 58 11 MONITORING, EVALUATION AND REPORT ...... 60

11.1 INTERNAL MONITORING ...... 60 11.2 EXTERNAL MONITORING ...... 61 11.3 SCOPE AND METHODOLOGY OF EXTERNAL MONITORING ...... 61 11.4 POST EVALUATION AND RESETTLEMENT COMPLETION REPORT ...... 62 ANNEXES ...... 64

ANNEX A RESETTLEMENT INFORMATION BOOKLET ...... 64 ANNEX B KEY EXCERPTS OF LOCAL REGULATIONS ...... 80 ANNEX C TERMS OF REFERENCE FOR EXTERNAL MONITORING AND EVALUATION AGENCY ...... 86

List of Tables Table 1-2 Comparison of Mitigation Results of schemes on Land Acquisition and Resettlement ...... 6 Table 2-1 Towns and Administrative Villages Affected by Land Acquisition and Demolition of the Project ...... 8 Table 2-2 Permanent Acquisition of Collective Land (by affected village) ...... 9 Table 2-3 Farmland Loss Affected by Project Land Acquisition (by affected HH) ...... 9 Table 2-4 Farmland Loss of the Households Affected by LA ...... 10 Table 2-5 List of Impact of Demolished Rural Residential House ...... 10 Table 2-6 Affected Ground Ancillary Facilities ...... 10 Table 2-7 Affected Population ...... 11 Table 2-8 Basic Information of Vulnerable Groups of Haiyuan County Road Project ...... 11 Table 3-1 Socioeconomic Profile of Zhongwei City ...... 13 Table 3-2 Social and Economic Status of Haiyuan County ...... 14 Table 3-3 Social and Economic Status of Affected Towns ...... 14 Table 3-4 Socioeconomic Indicators of the Affected Villages ...... 15 Table 3-5 Sampling Proportion ...... 15 Table 3-6 Analytical Table of Income and Expenditure of Surveyed Households ...... 17 Table 3-7 Public Opinion Survey ...... 18 Table 5-1 Resettlement Principles of the Component ...... 28 Table 5-2 Compensation Standard for the Project Land Unit: CNY/mu ...... 29 Table 5-3 Compensation Standard for Demolition of Residential House and Ancillary Facilities ...... 31 Table 5-4 Cost of House by Type (per 100m²) ...... 31 Table 5-5 Compensation Standard for Ground Attachments and Infrastructure ...... 32 Table 5-6 Tax and Fee Standard of Resettlement ...... 32 Table 5-7 Compensation Entitlement and Resettlement Policy Matrix ...... 32 Table 6-1 Permanent Land Acquisition Impact ...... 36 Table 6-2 Summary Sheet of Income Restoration of the Acquired Households ...... 37 Table 6-4 Training Plan for Project Implementation ...... 39 Table 6-5 Demolition Scheme of Residential Houses ...... 41 Table 8-1 Resettlement Budget ...... 48 Table 8-2 Resettlement Investment Plan ...... 49 Table 9-1 Public Participation during Project Preparation Finished ...... 62 Table 9-2 Project Public Participation Scheme ...... 62 Table 10-1 Schedule of Land Acquisition and Resettlement Activities ...... 58 Table 11-1 Schedule of Monitoring and Evaluation ...... 62

List of Figures Figure 1-2 Layout of Route Line ...... 6 Figure 3-1 Age Distribution Structure ...... 16 Figure 3-2 Distribution Structure of Education ...... 16 Figure 7-1 Project Resettlement Organizations ...... 44 Figure 8-1 Resettlement Funds Flow of Distribution ...... 49 Figure 9-1 Public survey site ...... 62

EXECUTIVE SUMMARY

E1. DESCRIPTION OF THE PROJECT

1. Haiyuan County Government plans to construct Zhengqi-Jiucai-Sikouzi Road (the subproject). The subproject starts from K0+000 of Line G341 being designed at the north of Zhaike Town, and ends at Line S311, with right of way (ROW) of 9m, including subgrade/pavement width of 7.5m/6.5m. It is constructed based on the standard of Class III road, with total length of 28.4 km. The estimated investment is CNY115.31 million.

E2. LAND ACQUISITION AND RESETTLEMENT SCOPE

2. The land acquisition and resettlement (LAR) will affect six administrative villages of three towns.

3. A total of 485 mu of land will be acquired, including 209.24 mu of farmland (43.17%), 1.6 mu of residential land (0.33%), 18.45 mu of forest land (3.81%), and 255.74 mu of unused land (52.7%), which will affect 108 households with 507 persons. The subproject will involve 240 m2 of house demolition (HD); all is earth-wood structure. 2 households with 12 persons will be affected by HD. The subproject will affect 108 households with 507 persons excluding overlaps. According to the surveys, no households will lose more than 10% of farmland and income and 2 HHs by HD will only be partially affected. Therefore, no person is regarded as significantly affected.

4. No enterprises or shops are involved in the acquisition and demolition. In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected.

5. In the project implementation area, a majority of affected people are of Hui nationality. Since the subproject is mainly the reconstruction of old road, hence, the lifestyles and customs of the local Hui people will not be affected by the negative impact of the subproject. On the contrary, the subproject will improve the local transport condition, so Hui people all positively support the construction of the subproject as soon as possible.

E3. RESETTLEMENT PRINCIPLES AND ENTITLEMENTS

6. The resettlement plan (RP) is prepared in accordance with the related land acquisition and house demolition policies of Haiyuan County, Zhongwei City, Ningxia Hui Autonomous Region, PRC, as well as Safeguards Requirement 2 Involuntary Resettlement in ADB’s Safeguards Policy Statement (SPS 2009). The objective of the RP is to ensure the affected production and infrastructure is recovered, affected labor forces are reemployed, demolished housing is rebuilt, and the incomes and lives of affected persons (APs) are improved or at least restored to the pre-project (physical and/or economic) levels.

E4. COMPENSATION STANDARDS

7. The resettlement policy of this RP is mainly in accordance with ADB SPS 2009, national laws, regulations, and rules, as well as the resettlement policies of Haiyuan County, Zhongwei City, Ningxia Hui Autonomous Region, and based on the full and extensive consultations with the APs and confirmation of the project implementing agency. It can be implemented after the approval of local governments.

8. The compensation standard for dry farmland and residential land acquisition is CNY7,904/mu in Zhengqi Town, Jiucai Town and Liju Town in Haiyuan County. The compensation standard for forest land is CNY5,538.8/mu, accounting for 70% of that for farmland in the area. And the compensation standard for unused land is CNY1,580.8/mu, accounting for 20% of that for farmland in the area.

9. Based on the policy that the compensation for common crops should be compensated in accordance with their average annual output value in the first 3 years, the compensation fee for young crops is determined to be CNY500/mu.

10. According to the ADB policies and national provisions, the replacement cost is adopted for rural residents’ housing. The compensation price will not be lower than the base price stipulated in this plan, and will increase appropriately based on the housing market in similar regions in 2016. The standard for earth-wood structure is CNY310 per m². The AHs will receive a moving allowance of CNY1,000 per household, and transition subsidies of CNY300 per month if needed in case the new houses are not fully ready before moving, generally not over 6 months in total. The compensation standards for other affected assets including trees, surface attachments, and water and power facilities are set according to replacement cost.

11. Compensation for land acquisition, residential housing, and other attachments will be paid directly to the affected villages or APs respectively.

E5. RESETTLEMENT AND LIVELIHOOD REHABILITATION

12. Among the 108 households affected by LA, 104 HHs will lose farmland less than 5%, and 4 HHs will lose farmland from 5% to 10%, and no AHs will lose over 10%. The household income sources in the project area are mainly from out-migration for work, farm industry and breeding industry, amounting to 95.5 %, with income from out-migration for work contributing to 50.2%, followed by animal husbandry industry of 23.9% and agriculture industry of only 21.4%. The land acquisition impacts on household’s net income are therefore limited and will have minimal impact on the income of the affected households. To minimize the resettlement impacts to APs and restore their incomes, a rehabilitation plan has been developed and included in this RP. The comprehensive compensation package that will be used by the affected persons, which includes expanding cash crop plantation, improving existing low yield cash crops and land rental to expand agricultural plantation, can offset the losses incurred due to the land acquisition impacts. Additionally, arranged jobs, waged non-farming jobs, off-farming business, and special measures for vulnerable groups have been put in place.

13. For physically displaced households (i.e., house demolition), two options are available for them to choose according to their own desire in order to restore their living condition. In both cases, cash compensation for residential land, house structures and attachments based on replacement costs as well as transfer allowances will be provided. The major options include: (i) Cash compensation and self-relocation by displaced household. The compensation standard will be determined in accordance with replacement cost proposed in the resettlement plan. (ii) Allocated resettlement and subsidy policy: The villagers committees select and allocate appropriate Residential land to the affected households, and the allocated area shall be not less than the formal area. And the villagers committees have promised that they will arrange Residential lands within their village to relocate the APs and the resettlement place will be determined before the project is constructed.

iii

E6. PUBLIC PARTICIPATION AND GRIEVANCE

14. From March to July 2016, the project design agency and Survey Group of Shaanxi Academy of Social Sciences (SASS) carried out two socioeconomic surveys and ten public opinion consultation activities with APs (including 40% women). The PMO, implementing agency, affected villages, towns/townships, and APs have consulted with each other on land acquisition and resettlement of the subproject. The issues raised include compensation scheme, resettlement plan, compensation payment; economic recovery, resettlement site and procedures. Their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance redress procedure has been established for the APs to manage LAR and other project related issues. Both oral and written grievances received and their redress actions will be recorded and will be made available to the external monitor and ADB missions on request. The affected masses can also lodge a complaint to the external monitor.

E7. INSTITUTIONAL ARRANGEMENT

15. Transportation Department of Ningxia Hui Nationality Autonomous Region is the executing agency (EA), who will be responsible for organizing and applying for ADB loan, coordinating the implementation of the RP, supervising and checking the payment and use of land acquisition, demolition, and resettlement fees, formulating land acquisition and demolition progress reports, and providing training for personnel of the project implementing agency.

16. Haiyuan County Transport Bureau (CTB) on behalf of Haiyuan County Government is the implementing agency (IA) of the Haiyuan County subproject. Haiyuan PMO as a working body set up in the CTB in is mainly responsible for organizing the resettlement work of the subproject, and making decisions and consultation on major issues arising from construction and resettlement.

17. Haiyuan County Resettlement Office (CRO) under Haiyuan PMO is responsible for the detailed work of preparation and implementation of the RP. Each involved town government and the affected village and community committees are responsible for working with Haiyuan CRO in the implementation of this RP. 1-2 leaders in each town government and each village committee respectively will be nominated to lead the RP preparation and implementation.

E8. RESETTLEMENT IMPLEMENTATION SCHEDULE

18. The resettlement implementation schedule has been prepared based on the preparation and construction progress of Haiyuan County road engineering. However, the final schedule needs to be updated based on the final design and detailed measurement before ADB’s contract was signed. The construction of this subproject is expected to start in July 2017. Therefore, the LAR of this subproject will commence in April 2017, and completed in April 2018. However, rehabilitation of production and residence allocation may take longer to complete. Ningxia PMO has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement work.

E9. RESETTLEMENT COST

19. The resettlement costs are budgeted in the project. According to the price in 2016, the resettlement costs total CNY5,798,043, including basic fees of CNY2,467,442. In terms of impact category, the cost for permanent collective land acquisition is CNY2,277,406; housing

demolition cost is CNY80,000; compensation fee for ground attachments is CNY23,036; compensation fee for special facilities is CNY87,000. Other fees include the CNY33,000 of aid for vulnerable groups, CNY70,000 of RP formulation and monitoring fee, CNY2,650,506 of taxes and fees, CNY50,000 for resettlement training fee, and CNY527,095 for contingencies.

E10. MONITORING AND EVALUATION

20. To ensure the LAR work is implemented smoothly as planned, two supervision modes are adopted by two institutions. First, internal supervision system composed of government departments (Ningxia and Haiyuan PMOs) conducts supervision based on RP clauses from the perspective of administrative management. Secondly, Ningxia PMO will engage an independent external resettlement monitoring institute or firm to undertake external monitoring of the RP implementation. A baseline study will be conducted before the LAR begins and the first monitoring report will be submitted shortly thereafter. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

1 Project Overview

1.1 Project Background

1. The Ningxia Hui Autonomous Region is one of the most underdeveloped provinces/regions in PRC. In 2015, its per capita GDP, per capita income of urban residents, and per capita income of rural residents respectively accounted for about 88.98％, 80.74％, and 76.4％ of the national average values, ranking 30th, 24th, and 24th among 31 administrative provinces and regions. There are 22 counties (districts) in Ningxia, and eight of them have been listed as nationally designated poor counties, accounting for 36.4% of the number of all counties and districts.

2. The poverty-stricken areas in Ningxia are mainly distributed in the mountain areas of southern Ningxia, including Guyuan City (Xiji County, Pengyang County, Longde County, Jingyuan County, and Yuanzhou District), as well as Haiyuan County in Zhongwei City and Wuzhong City (Tongxin County and Yanchi County), which are collectively known as “Xihaigu” region (national-level poverty county), one of the “Three-Xi” (Hexi and Dingxi City of Ganshu Province and Xihaigu Area of Ningxia Hui Autonomous Region ) poverty-stricken regions in PRC.

3. Liupanshan region involved in the project is located in the mountain area of southern Ningxia, including Xiji County, Pengyang County, Jingyuan County, Yuanzhou District, Hai County, and Tongxin County, which are key poverty relief and development regions in PRC, as well as the destitute areas among poor rural areas nationwide and national-level poverty- stricken counties. Due to the poor natural conditions and economic foundation, and limited investment, and other constraints, the highway traffic in the region is featured by poor layout, low technical standard, insufficient construction funds, etc., and cannot satisfy the demands of economic and social development. Currently, undeveloped traffic and other infrastructure have become the bottleneck and disadvantage for the development of Liupanshan destitute area, and the poor transport infrastructures have become the most serious problem reported frequently by the masses in Liupanshan.

4. In order to accelerate the development of Liupanshan, enhance poverty alleviation, guarantee and improve people’s livelihood, facilitate people to overcome poverty and achieve prosperity, ensure all people can share the reform and development achievements, boost PRC Western Development, promote the coordinated development of regions, and achieve the overall strategic objective of national regional development, Transportation Department of Ningxia Hui Nationality Autonomous Region grasps the opportunity of historical development, starts from eliminating the phenomenon that undeveloped traffic and infrastructure restrict the development of contiguous destitute areas in Liupanshan, and now plans to implement Liupanshan rural highway development project for poverty alleviation in Ningxia Hui Autonomous Region with the ADB loan, which includes seven subprojects, involving Xiji County, Pengyang County, Jingyuan County and Yuanzhou District in Guyuan City, Haiyuan County in Zhongwei City, and Tongxin County in Wuzhong City.

5. The construction of Liupanshan rural road development project for poverty alleviation in Ningxia Hui Autonomous Region with the ADB loan mainly targets at: 1) improving the technical grade for road network project, increasing network capacity, and perfecting regional road network; 2) enhancing the connection between the project area and surrounding area, improving regional traffic condition, and promoting the economic development of the project

2 area and region; 3) constructing seven trunk roads and 21 feeder roads in Xiji County, Pengyang County, Jingyuan County, and Yuanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City.

6. As required by ADB, resettlement plan should be formulated for seven trunk roads and two feeder roads. The other 19 roads are farm roads serving agricultural production within villages based on the provision of Notice of the General Office of Ministry of Land and Resources on Further Regulating the Identification of Land Category for Rural Roads (Guo Tu Zi Ting [2013] No.581) (see Section 4.1), so they are people-benefit projects with very limited negative impact compared to the project benefits and the counties will arrange the land acquisition and relocation according to local standards.

7. The project will benefit about 2.10 million residents from six project counties and districts as well as surrounding provinces, counties and cities, of which, urban residents and rural residents respectively account for 16% and 84％.

8. Haiyuan County subproject plans to construct Zhengqi-Jiucai-Sikouzi Road. The subproject starts from K0+000 of Line G341 being designed at the north of Zhaike Town, and ends at road S311, with right of way (ROW) of 9m, including subgrade/pavement width of 7.5m/ 6.5m. It will be constructed based on the standard of Class III road, with total length of 28.4km and estimated total investment of CNY115.3063 million.

Wangtuan- Yuwang Road

Wanzhang- Zhengji-Jiucai- Sanying Road Sikouzi Road

Guanting-Gu Sectin of Gu- Xiji Road Jiangtai-Xitan- Pingfeng Road

Mengyuan Chunshucha– Chengyang Yangping Road

Shatang (Huanghua County)–Gaodian Road

Figure 1-1 Sketch Map of Project Distribution

1.2 Overview of Project Preparation

9. The Asian Development Bank (ADB) and NHAR TD fund the project. Before engineering implementation, resettlement plan shall be formulated in accordance with the standard and requirements for loan financing project.

On February 24-26, 2015, ADB Project Launch Delegation (hereinafter referred to as “Launch Delegation”) visited Yinchuan, and determined the content, principle and requirement of project resettlement plan. “Launch Delegation” and Transportation Department of Ningxia Hui Nationality Autonomous Region (executing agency) confirmed that the resettlement plans for seven independent counties and districts will prepared, including resettlement plans for trunk road subprojects of Yuanzhou, Xiji, Tongxin, Pengyang and Haiyuan, resettlement plan for trunk road and feeder road project of Jingyuan, and resettlement plan for feeder road project of Longde. A summary RP is also prepared for the remaining 19 feeder roads. Transportation Department of Ningxia Hui Nationality Autonomous Region authorized the consultants and experts from Shaanxi Academy of Social Sciences (SASS) to formulate corresponding documents except summary RP for feeder roads. There are four sources for critical data and information in RP: (i) Feasibility study report and preliminary design of the project, preliminary demographic census results, and relevant government documents; (ii) Relevant information of functional department, such as, policy document, work summary and statistical data; (iii) Information of the affected villages and towns and village collectives, such as basic information and statistical report; (iv) Information from focus group discussion (FGDs), interview and household (HH) questionnaire survey.

1.3 Subprojects in Haiyuan County

10. The Zhengqi-Jiucai-Sikouzi road (the subproject) starts from K0+000 of Line G341 being designed at the north of Zhaike Town, passes through Zhengqi village, Satai village, Sabu village, Zhongping village, Matao village,and Yuantao village, and ends at road S311, with ROW of 9m, including subgrade/pavement width of 7.5m/6.5m. It is constructed based on the standard of Class III road, with total length of 28.4 km and estimated total investment of CNY115.3063 million. The total construction period is 24 months. (See Table 1-1)

Table 1-1 Basic Information of Haiyuan County Subproject Construction Project Category Project construction content Project radiation effect grade The project starts from It affects three towns K0+000 of Line G341 being (Zhengqi Town ,Jiucai designed at the north of Zhaike Town and Lijun town), 6 Town, passes through Zhengqi administrative villages village ,Satai village, Sabu village, (Zhengqi village ,Satai Zhongping village, Matao Zhengqi- Adopt Class village, Sabu village, village ,and Yuantao village,and Jiucai- Road III road Zhongping village, Matao ends at Line S311, with Sikouzi reconstruction technical village ,and Yuantao subgrade/pavement width of 7.5m/ Road standard village). There are 3,352 6.5m. It is constructed based on household 14,593 the standard of Class III road, with persons in the 6 total length of 28.4km and administrative villages, estimated total investment of including 5660 CNY115.3063 million. The total impoverished people. construction period is 24 months. Data source: Socioeconomic and physical impact survey in July 2016

1.4 Measures Employed to Avoid or Furthest Reduce Land Acquisition and Demolition

11. To avoid or reduce the negative impact of economic and social development and benefit people is the basic objective of this project. The following principles are followed for determination of project site selection and project boundary during the survey and design stages: (i) Avoid cultural landscape (including temples and other religious activity sites) and key culture relics protection units. (ii) Avoid or try to reduce the existing or planned residential area. (iii) Avoid or try to reduce environmentally sensitive area. (iv) Avoid/minimize house demolition and relocation. (v) Avoid/minimize use of good farmland. (vi) Avoid/minimize ground attachments.

12. In fact, at design stage of the project, two construction schemes or more were prepared for the subproject, and the best one was chosen based on the comprehensive analysis on engineering, environmental protection and feasibility of land acquisition in line with the requirements mentioned above. The details of comparison of scheme of K0+400~ K1+000 are as follows:

1. Introduction of scheme options

13. In the scheme recommended, the angle of intersection at starting point will be improved after transformation of intersection with widened corner. However, the intersecting line is still on a curve. So there’re problems of super elevation and joining of vertical section and cross section, which will cause difficulties in driving a vehicle; what’s more, maximum longitudinal grade of the former road of K0+400-K1+000 is 7.4%, and the slope length doesn’t meet the standard, which could be solved by adjusting the line to the left slightly and digging down the slope. But there’s still the problem of higher cut slope (as high as over 50m) on the right side of the former road, which will cause dangers. Based on the above, we have an alternative scheme for the starting point, i.e. Line A, and the line recommended shall be marked as Line K.

14. After examination on the spot, it was found no corridor line could be used in surrounding area of the former road. So Line A needs a new corridor zone. Starting point of Line A is to the east of Line K and 1.25 km away from that of Line K. Here the view is open, which is good for an intersection. From the starting point to the south, at K0+385, a T-shaped bridge of 11-30m long shall be built to cross the brook at downstream channel of Gaipai Reservoir. Through the intersection at K0+700, the line goes west along the hillside in north of the village. The line finally ends at K1+740.41, joining Line K at K1+200. Total length of the road shall be increased by 540.41m.

2. Comparison of schemes

15. Line A: Advantage: minimum radius of horizontal curve is 100m, maximum longitudinal grade is 6%, and the alignment is obviously superior to that of Line K; maximum digging depth is 11.9m, and maximum slope height of excavation is less than 20m; disadvantage: compared to Line K, the total length is increased by 540.41m, earthwork increased by 80,000m3, another 37 mu land shall be acquired and the cost will be CNY16,000,000 more, one household shall be demolished, and what’s more, bridge construction will bring difficulties to the project construction.

16. Line K: Advantage: short route length, stable roadbed on basis of the former road, less earthwork, less land occupation, and less cost; disadvantage: compared to Line A, minimum radius of horizontal curve is 43m, maximum longitudinal grade is 6.24%, and the alignment is obviously inferior to that of Line A; the length of earthwork is 600m, maximum digging depth is 8.0 m, and there’s the problem of deep cut slope on right side. The line requires land acquisition of 0.8 mu, and no housing shall be demolished.

17. Considering this is a project of Grade-III road at low level and the volume of traffic is low, the main using function is to ensure smooth traffic, and after comprehensive comparison on saving cost, land requisition and demolition, Line K is selected as the recommended scheme.

Line A in blue; Line K in red Figure 1-2 Layout of Route Line

Table 1-2 Comparison of Mitigation Results of schemes on Land Acquisition and Resettlement Selected scheme and the Line A Line K mitigation result of No Project resettlement . Resettlement Selected Result of Scheme Resettlement impact Scheme impact scheme resettlement Land acquisition Involving land Zhengqi- K0+40 Involving land decreased by 36.2 K0+385- acquisition of 37mu, Jiucai- 0- acquisition of mu, and area of 1 K1+740.4 one house Line K Sikouzi K1+20 0.8mu, and no demolishing 1 demolishing with the Highway 2 0 demolishing decreased by area of 300m 2 300m Data source: Feasibility study report of the project

2 Project Impact

2.1 Survey Method and Process

18. As for the land acquisition and demolition impact of the subproject at this stage, the survey scope is determined by the FSR and preliminary design. The results of the detailed

7 design and detailed measurement survey shall be updated in the final RP, and the modified RP shall be submitted to ADB for approval prior to contract awards.

2.1.1 Project Survey at the Early Stage

19. The preliminary survey of land acquisition and demolition impact mainly includes two aspects: 1) Document review: Consult the feasibility study report of the project, economic and social development document in the project implementation areas, and statistical data, as well as data collection. 2) Field survey: From March 20, 2016 to July 2, 2016, by consultant experts of Shaanxi Academy of Social Sciences together with and the personnel in charge of compilation of feasibility study report and relevant personnel of the project implementing agency conducted preliminary project impact survey on the socioeconomic overview and degree of the affected area, public consultation activities, and sought for the opinions of local department and some affected villagers within a certain scope.

20. In March 2016, after receiving the feasibility study report, consultant experts of Shaanxi Academy of Social Sciences together with the project implementing agency and feasibility study report compilation unit screened, determined and made statistics of the socioeconomic development status of project affected areas as well as the land acquisition and demolition effects of the project and the various sub-projects, including the impact survey on the affected population, land, house, ground auxiliary facilities and physical quantity, and the sampling survey on economic and social development level of the affected areas. The survey includes three towns with 6 administrative villages of Haiyuan subproject. Meanwhile, the four affected villages are taken as sampling villages, respectively Satai village, Sabu village and Zhongping village of Zhengqi Town, and Yuantao Village of Jiucai Town, and the sampling villages account for 66.7% of the affected villages. The sampling households for survey are 492, accounting for 25% of the total households (1968 households) of sampling villages, and group interview are conducted for seven times.

21. According to the conclusion of the ADB meeting of Ningxia Autonomous Region Department of transportation in June 2016, a supplementary survey in Haiyuan County was conducted and the impact of land acquisition and demolition was re-verified on the spot from July 10 to July 12, 2016. On the basis of analysis and processing of the survey data and information above and according to resettlement policies of PRC and Asian Development Bank, Resettlement Plan for Zhengqi–Jiucai–Sikouzi Road was compiled.

2.1.2 Data source and survey method

22. Due to tight time and wide coverage of the survey of the project, the acquisition of background material and basic data of project impact shall include two aspects: (i) Document and literature review and information collection. Collect and collate the project information and relevant survey material and statistical material provided by relevant local government departments and project implementing agencies. (ii) Field measurement and data collection, supplemented by symposium, direct exchange with relevant interest groups, etc. to further verify material and data.

23. Survey on land acquisition: After the land acquisition scope is determined by feasibility study report and preliminary design, the project impact survey group shall conduct survey and statistics of the area based on the status quo of land use, ownership and land type.

24. Survey on the affected population: The land acquisition scope shall be determined by feasibility study report, preliminary design and sampling survey shall be conducted for the affected population, including ethnicity, age, educational background, employment status, etc.

25. Survey on the demolished houses and ancillary facilities: The component involves house demolition. On-site check was conducted for the demolished houses one by one, including all ancillary facilities. The survey team together with the village leaders based on the preliminary design, identified the affected house and ancillary facilities, documented ownership, categorized structure types and size.

26. Survey on scattered trees: The scattered trees within the impact scope of the acquisition land are checked on site so as to distinguish fruit trees from other trees. Numbers and varieties were recorded.

27. Survey on special facilities: Surveys were done on the affected electric power, telecommunications cables and other special facilities. Based on the existing information from the line departments, the survey team together with representatives from the owner departments carried out the field check and recording.

2.2 Project Impact Scope and Overview

28. The impact of land acquisition and demolition of the project involves three towns and 6 administrative villages. See Table 2-1 for reference.

Table 2-1 Towns and Administrative Villages Affected by Land Acquisition and Demolition of the Project Construction content Name of town/ street Name of village/ neighborhood committee Zhengqi village ,Satai village, Sabu village, Zhengqi Town , Jiucai Town Zhengqi Jiucai Sikouzi Road Zhongping village, Matao village ,and Yuantao – – and Lijun town village Data source: Socioeconomic and physical impact survey in July 2016

29. The impact of land acquisition and demolition of the project involves three towns and 6 administrative villages. The subproject includes land acquisition of 485 mu, including farmland of 209.2 4 mu, residential land of 1.6 mu, forest land of 18.45 mu and 255.71 mu unused land. 108 households of 507 persons are affected by the land acquisition, and 2 households of 12 persons are affected by both the house demolition and land acquisition. A total of 108 households of 507 persons are affected excluding overlaps. According to the surveys, no households will lose more than 10% of farmland and income and 2 HHs by HD will only be partially affected. Therefore, no person is regarded as significantly affected. The surveys show that no enterprise or store will be affected by the land acquisition and demolition of the subproject. In addition, scattered trees, power poles, electric wire, and other ground ancillary facilities will also be affected by the land acquisition and demolition. No temporary land occupation is involved in the project design plan up to now.

2.3 Impact of Permanent Collective Land Acquisition

30. The project will permanently acquire 485 mu rural collective lands of the above- mentioned areas, including farmland of 209.24 mu (43.17%), residential land of 1.6 mu (0.33%), Forest land of 18.45 mu (3.81%), and unused land of 255.74 mu (52.7%). See Table 2-2 for reference.

Table 2-2 Permanent Acquisition of Collective Land (by affected village) Village Permanent land acquisition (mu) Committee Affected Affected Road Town Residential Forest Unused Sub- /Communi Farmland HH Person land land land total ty Zhengqi 5.69 0 0 7.80 13.49 4 16 Zhengq Satai 35.58 0 0 40.52 76.10 22 101 Zhengqi i Sabu 34.97 0.8 0 39.16 74.93 19 78 -Jiucai- Zhongping 29.50 0 0 45.67 75.17 12 55. Sikouzi Matao 51.73 0.8 0 62.09 114.62 23. 128. Road Jiucai Yuantao 51.77 0 0 60.47 112.24 28 129 Lijun 0.00 0 18.45 0.00 18.45 0. 0 Total 3 6 209.24 1.6 18.45 255.71 485.00 108. 507 Proportion 43.14% 0.33% 3.80% 52.72% 100% \ \ Data source: Socioeconomic and physical impact survey in July 2016.

31. Tables 2-3 and 2-4 show that, a total of 108 households are affected by farmland acquisition of this project, 104 households show the farmland loss rate of less than 5%, 4 households show the rate of 5%-10%, and none of the households show the rate of more than 10%. In terms of affected villages, the average farmland loss rate is only 0.13%. This is because the impacts are linear and the average farmland holdings are large, which is common in poverty areas with poor quality land. The highest farmland loss rate per household is 4.4% from Yuantao Village. Among the 108 households affected by farmland loss, the highest farmland loss rate is 6.5%. The loss will be less in terms of income, because not all of the household income is land based. Thus the land acquisition of this subproject has no significant effect on the households affected by the land acquisition from the perspective of both affected villages and affected households.

Table 2-3 Farmland Loss Affected by Project Land Acquisition (by affected HH) Before land acquisition After land acquisition No. of Village Per Affected No. Per Farm- HH Farmland household village of Farmland household land Road Town affected loss Farmland HH Farmland loss by LA rate % loss rate % Village (HH) (mu) (mu/HH) (HH) (mu) % % name Zhengqi 979 39000 39.84 4 5.69 0.01 3.57 Satai 685 31000 45.26 22 35.58 0.11 3.57 Zhengqi Zhengq Sabu 505 28000 55.45 19 34.97 0.12 3.32 -Jiucai- i Zhongpin Sikouzi 560 35000 62.5 12 29.5 0.08 3.93 g Road Matao 218 13000 59.63 23 51.73 0.40 3.77 Jiucai Yuantao 405 17000 41.98 28 51.77 0.30 4.40 335 TOTAL 2 6 163000 48.63 108 209.24 0.13 3.98 2 Data source: Socioeconomic and physical impact survey in July 2016.

Table 2-4 Farmland Loss of the Households Affected by LA Distribution of proportion of Farmland loss of the Administrative region Project name households affected by LA (household) Town Village 5% 5%—10% ﹥10% Zhengqi 4 0 0 Satai 22 0 0 Zhengqi Zhengqi-Jiucai- Sabu 18 1 0 Sikouzi Road Zhongping 11 1 0 Matao 22 1 0 Jiucai Yuantao 27 1 0 TOTAL 2 6 104 4 0 Data source: Socioeconomic and physical impact survey in July 2016.

2.4 Temporary Land Occupation

32. At this stage, no temporary land occupation is planned. This will be confirmed during detailed design and, if any, will be reflected in the updated RP.

2.5 Analysis of Impact of Residential House Demolition

33. The residential houses involved in the demolition are rural houses of earth-wood structure of 240 m2. A total of 2 households with 12 persons are affected, and the area demolished of each household is 120 m2. The persons will be resettled properly on their existing housing plots. See Chapter 6 for the resettlement measures. See Table 2-5 for the impact of residential house demolition.

Table 2-5 List of Impact of Demolished Rural Residential House Original living Demolition Earth-wood Name of Head of Family Town area area structure village household number (m²) (m²) (m²) Zhengqi Sabu Sa Ailing 7 300 120 120 Jiucai Matao Qi Yujun 5 260 120 120 Total 2 12 820 240 240 Data source: Socioeconomic and physical impact survey in July 2016.

2.6 Impact of Demolished Buildings of Enterprises and Public Institutions

34. No enterprises and public institutions will be affected by land acquisition and demolished.

2.7 Affected Infrastructure and Ground Ancillary Facilities

35. The subproject will affect some ground attachment and special facilities. See Table 2-6 for details.

Table 2-6 Affected Ground Ancillary Facilities Item Unit Quantity Earth wall(h<2m) m 220 Brick wall(h<2m) m 60 Cistern single 5 Iron gate Single 2 Poplar(Ф<10cm) single 10 Locust tree(10cm<Ф<30cm) Single 38 Data source: Socioeconomic survey and physical impact survey in July 2016.

2.8 Affected Population

2.8.1 Overview

36. A total of 108 households with 507 persons are affected, including 106 households with 495 persons affected only by land acquisition and 2 households with 12 persons affected by both land acquisition and house demolition. No enterprise and public institution is affected by the land acquisition and demolition. See the Table 2-7 for details of the affected population. No enterprise or store is affected by the land acquisition and demolition.

Table 2-7 Affected Population Haiyuan County Subtotal No. Category Zhengqi Town Jiucai Town Household Person Household Person Household Person 1 LA 57 250 51 257 108 507 2 HD and LA 1 7 1 5 2 12 Total 57 250 51 257 108 507 Note: The overlaps are excluded in total. Source: Socioeconomic and physical impact survey in July 2016

2.8.2 Affected vulnerable groups

37. The vulnerable groups affected by the subproject mainly include the elderly with no other supporting family members, single-parent families, orphans, family under MLSS, the disabled, poverty families, etc. A total of 11 households with 42 people of vulnerable groups are affected by the subproject, this is 10.2% of the APs. See Table 2-8 for the definition standard of vulnerable groups and the number of vulnerable group households.

Table 2-8 Basic Information of Vulnerable Groups of Haiyuan County Road Project Haiyuan Type Definition standard County (household) The poor under Annual per capital income lower than CNY1,560. 2 MLSS Family with women as primary labors, without young and Women-led family 1 middle-aged men labors (18-55 years old) The elderly over 60 years old without children, relatives The elderly family 1 and other supporting members Family with the members identified according to national The disabled family 2 standard of level I or level II disabled Family with long- Family with member losing work capacity due to disease 5 term patients or in need of long-term medical care Total 11 Note: Double counting has been excluded in the subtotal and total. According to the poverty standard of annual income per person of less than CNY2,736 in Haiyuan County, 11 vulnerable households all belong to poverty- stricken families. Data source: Socioeconomic survey and physical impact survey in July 2016.

38. According to the survey, poverty causes include aspects of: (1) Harsh living and production conditions due to geographical location, such as high mountain, poor soil, cold and dry weather; (2) low value-added grain dominated production model due to remote geographical

12 location and poor road condition; (3) Lack of skill - limiting access as migrant labor seeking outside non-farming waged jobs; (4) lack of information; and (5) illness or disability. The subproject will provide additional assistances to the affected vulnerable households/persons. A special budget of CNY33,000 for supporting vulnerable group has been reserved in the project resettlement budget. (See Chapter 6 for specific measures).

2.8.3 Project impact on women

39. A total of 238 (47%) of the affected persons are female. During the field survey, women focus group discussions were held in each surveyed village. Household interviews paid special attention to women. No outstanding negative impacts on women were found. On the contrary, women pointed out that as the women, children and elderly are the majority left behind after men and young people migrate out, the road improvements will particularly benefit women, children and elderly to transport goods to and from market, go to school and travel to clinic and other social service facilities. Travel will be safer, easier, and smoother. In the longer term, women expected the road improvement will stimulate local industrial development and urbanization, bring more local non-farming job opportunities which will particularly help women with agricultural income as main source to increase their non-farm income.

2.8.4 Affected minority population

40. Project implementation area is Hui people concentrated area. The affected population is Hui people. Since the project is mainly the reconstruction of old road, hence, the lifestyles and customs of the local Hui people will not be affected by the negative effect of LAR; on the contrary, the construction of the subproject will improve the local traffic condition, Hui people will positively support the rapid implementation of the project. (See Chapter 9 Public Participation).

3 Social and Economic Profile

3.1 Socioeconomic Profile of Project Area

41. The subproject is located in Haiyuan County of Zhongwei City and impacts three towns and 6 administrative villages.

3.1.1 Socioeconomic profile of Zhongwei city

42. Zhongwei City is in the central west of Ningxia Hui Autonomous Region. At the intersection of Ningxia, Gansu and Inner Mongolia, it has a long-standing and well-established history. Over 30,000 years ago, human beings were already found at the place. During the Spring and Autumn Period, it was a place for both Qiang and Rong ethnic minority. It was called Fuping of Beidi County in Qin Dynasty, Shunjuan of Anding County in the Western Han Dynasty, Mingsha of Lingzhou County in the Northern and Southern Dynasties, Xiongzhou and Feng’an County in Sui and Tang Dynasties respectively, Changhua Town in Northern Song Dynasty, Yingjili County and Yingli County in the Western Xia regime, and Yingli County in Yan Dynasty. Here the land is fertile and products are abundant, thus it has long been known as “Ningxia is the richest along Yellow River, while Zhongwei is the richest in Ningxia”. The irrigation districts along Yellow River in Zhongwei City cover 1,110,000 mu land, so it is a major base of commodity grain, aquatic products and greenhouse vegetable. Within the city, and there’re also

numerous mineral resources with abundant reserves, including coal, gypsum, silica, clay, limestone, gold, silver, copper, iron, etc., totaling 20 kinds.

43. Zhongwei City governs Shapotou District, Zhongning County and Haiyuan County, which has a total of 40 towns and townships, 442 villages and 32 community residents committees, and covers a total area of 17,000 km2. The permanent resident population is 1,124,800 and 35.5% are of Hui nationality, the other 20 nationalities include Han, Man, Mongol, and so on.

44. In 2015, GDP of Zhongwei City reached up to CNY29.686 billion. Primary industry completed value added of CNY4.755 billion, and that of secondary industry reached up to CNY13.707 billion, and of tertiary industry was CNY11.224 billion. The three industries structure ratio was 16:46.2:37.8. Urban per capita disposable income was CNY19,931; rural per capita disposable income reached up to CNY7,403.

Table 3-1 Socioeconomic Profile of Zhongwei City No. Item Unit Zhongwei 1 Land area km² 23,529 1.1 Farmland area 10,000mu 2,699 2 Population 10,000 person 113 2.1 Agricultural population 10,000 person 71 2.2 Non-agriculture population 10,000 person 42 3 GDP CNY100 million 297 3.1 Primary industry CNY100 million 48 3.2 Secondary industry CNY100 million 137 3.3 Tertiary industry CNY100 million 112 3.4 Per capita GDP CNY/person 26,291 4 Urban per capita disposable income CNY/person 19,931 5 Rural per capita net income CNY/person 7,403 Source: Zhongwei city statistics yearbook, 2015.

3.1.2 Socioeconomic profile of Haiyuan County

45. In the middle south area of Ningxia, Haiyuan County is in the arid zone in middle part of Ningxia, and is governed by Zhongwei City, Ningxia Hui Autonomous Region. The geographical coordinates of Haiyuan County is E 105°09′-106°10′ and N 36°06′-37°04′. It connects to Yuanzhou District of Guyuan City in the east, neighbors Xiji County in the south, faces Jingyuan County and Huining County of Gansu Province in the west, and adjoins Shapotou District and Tongxin County of Zhongwei City in the north. The distance from north to south is 95km and from east to west is 80km. Covering an area of 6,463km2, it governs 17 towns and townships, three management committees and one natural conservation area, 169 administrative villages, 1,175 natural villages, and eight communities, with total population reaching to 460,300, 92% of which are agricultural population and 69% are minorities.

46. In 2015, the county achieved a regional GDP of CNY4.375 billion, increased by 10.8%, and the proportion among primary, secondary and tertiary industry reached 19:33:48. The primary industry achieved value added of CNY1,123 million; the secondary and tertiary industries completed value added of CNY1.368 billion and CNY1.884billion; local public financial budget revenue reached up to CNY174 million, increased by 10%; fixed-asset investment of the whole society broke CNY6.882 billion. Urban per capita disposal income

amounted to CNY19,046, increased by 8.4%; rural per capital disposable income was CNY6,258, increased by 8.5%.

Table 3-2 Social and Economic Status of Haiyuan County No. Item Unit Haiyuan County 1 Land area km² 6,463 1.1 Farmland area 10,000mu 229 2 Population 10,000 person 45 2.1 Agricultural population 10,000 person 35 2.2 Non-agricultural population 10,000 person 10 2.2 Population density Person/km² 71 3 GDP CNY100 million 44 3.1 Primary industry CNY100 million 11 3.1.1 Proportion in GDP % 26 3.2 Secondary industry CNY100 million 14 3.2.1 Proportion in GDP % 31 3.3 Tertiary industry CNY100 million 19 3.3.1 Proportion in GDP % 43 3.4 Per capita GDP CNY/person 9,684 4 Urban per capita disposable income CNY/person 19,046 5 Rural per capita net income CNY/person 6,258 Source: statistical yearbook of Haiyuan County, 2015

3.1.3 Socioeconomic profile of affected towns

47. The subproject affects three towns in Haiyuan County. In the three towns, the average population is 3.88 per household, per capita farmland is 11.02 mu, and per capita annual net income is CNY4,807. The conventional agricultural crops in the affected villages are corn and wheat, etc. According to survey, the affected villages are mainly along the road under construction, and located in mountain area. The income of the villages mainly relies on migration working, breeding and farming. The income of migration working accounted for the highest proportion of total income.

Table 3-3 Social and Economic Status of Affected Towns Rural per Average Numbe Per capita Land Populatio Labor househol r of Farmlan capita net Road Town area n (perso d house d (mu) Farmland income (km²) (person) n) populatio hold (mu) (CNY n /year) Zhengqi- Zhengqi 402 6,409 24,661 14,677 300,000 3.85 12.16 4,826 Jiucai- Jiucai 167 2,258 8,935 6,151 134,076 3.96 15.01 4,397 Sikouzi Road Lijun 207 2,908 11,295 8,964 60,808 3.88 5.38 5,091 Total 3 776 11,575 44,891 29,792 494,884 3.88 11.02 4,807 Source: Socioeconomic survey in July 2016.

3.1.4 Introduction to Socioeconomic status of affected villages

48. The subproject affects the three towns 6 administrative villages of Haiyuan County of Zhongwei City. In the 6 affected administrative, the average household size is 4.35 persons per household, and per capita farmland is 11.17 mu. The per capita annual net income of the 6 administrative villages is between CNY3,300 and CNY4,520.

Table 3-4 Socioeconomic Indicators of the Affected Villages Annual Number of Per capita rural per Population Labor Farmland Household Road Town Village house- cultivated capita net (person) (person) (mu) population hold land income (CNY ) Zhengqi 979 3,854 2,290 39,000 3.94 10.12 4,520 Satai 685 3,072 1,982 31,000 4.48 10.09 4,150 Zhengqi- Zhengqi Jiucai- Sabu 505 2,152 1,272 28,000 4.26 13.01 3,467 Sikouzi Zhongping 560 2,450 1,407 35,000 4.38 14.29 3,340 Road Matao 218 1,140 790 13,000 5.23 11.40 4,017 Jiucai Yuantao 405 1,925 1,350 17,000 4.75 8.83 4,065 TOTAL 2 6 3,352 14,593 9,091 163,000 4.35 11.17 3,989 Source: Socioeconomic survey in July 2016.

3.2 Socioeconomic Profile of Affected Villages

3.2.1 Sample survey

49. In order to understand the basic status of population affected by the land acquisition, the socioeconomic survey group conducts sampling survey for sampling households. The 4 sample villages are Satai village, Sabu village and Zhongping village of Zhengqi Town, and Yuantao Village of Jiucai Town with 8,814 people from 1,968 households in total. The subproject surveys the sample of 2,223 people from 492 households, with the sampling proportion of 25%. See the distribution of sample in Table 3-5.

Table 3-5 Sampling Proportion Number of household in Sample Sampling No. Town sampling village Number of proportion Population (household) household (%) 1 Zhengqi 1,750 438 1,971 25 2 Jiucai 218 54 252 24.7 Total 3 1,968 492 2,223 25 Source: Socioeconomic survey in July, 2016.

3.2.2 Nationality and gender

50. The 492 sample households have a total population of 2,223, a total labor force of 658 and an average population of 3.88 per household. Most of the households surveyed are Hui people. There are 1,095 females (49.3%) of the total surveyed population; most women are mainly engaged in agriculture, housework and other production activities.

3.2.3 Age structure

51. Among the 2,223 sample people from 492 households, 311 persons are under 16 years old (14%), 667 are from 16-39 years old (30%); 823from 40-59 (37%); and422people are over 60 (19%). The affected villages have an older age structure because young people have moved to towns for employment. See age structure in Figure 3-1.

19.0% 14.0% 1.under 16 years old 30.0% 2.16~39 years old 37.0% 3.40～59 years old 4.over 60 years old

Figure 3-1 Age Distribution Structure

3.2.4 Education background

52. Among the surveyed persons, 1,167 people have received primary or below education(57.94%); 877 people received junior high school education (43.55%); 167people received senior high school or technical secondary school education (8.29%); 12 people had received junior college or above education (0.6%). The education levels are very low due to the remote location of villages and the age structure of villagers. See education distribution in Figure 3-2.

0.60% 1.primary or 8.29% below

2.junior school

43.55% 57.94% 3.senior high school/technical secondary school 4.college or above

Figure 3-2 Distribution Structure of Education

3.2.5 Housing size

53. The sampled houses are of earth-wood or brick-wood structure mainly, with a total housing area of 90,036m², and 183m²per household on average and 40.5m² per capita. 35

households (7.1%) have an area less than 100m²; 208(42.3%) households with an area of 100- 150m²; 200(40.7%) households with an area of 151-300m²; 45 (9.1%) with an area of 301- 450m² and 4 household (0.8%) with an area over 451m². These are typical housing sizes for rural people but the quality of housing in these villages is quite simple due to the poverty conditions.

3.2.6 Farmland resource

54. Of the surveyed households, per household farmland is 43.2 mu and per capita farmland is 9.6 mu. The farmland mainly refers to dry farmland and the major crops are corn and wheat, with yearly net return of about CNY350/mu. There are 15 households (3.1%) with per capita farmland of less than 5 mu; 336 households (68.3%) with 5-10 mu; 141 (28.6%) households with more than 10 mu.

3.2.7 Household income and expenditure

1) Annual household income

55. Among the 2,223 sample people from 492 households, the average annual income of household is CNY19,600, including annual average agricultural income of CNY4,200 per household, accounting for 21.4%; annual average animal husbandry income of CNY4,689 per household, accounting for 23.9%; annual average jobs income of CNY9,847 per household, accounting for 50.2%; annual average income of others of CNY864 per household, accounting for 4.5%. The per capita annual net income is CNY5,647. The farmers’ largest source of income comes from working in cities. Females and Males in middle age and old age mainly engage in agriculture and breeding, and young male laborers usually engage in out-migration working.

2) Annual family expenditure

56. The per household total annual expenditure is CNY15,667, including household operating expenditure of CNY4,496 (28.7%); living expenditure of CNY7,567 (48.3%); other expenditure of CNY3,603 (23%). See sample survey on income and expenditure of affected household in Table 3-6.

Table 3-6 Analytical Table of Income and Expenditure of Surveyed Households Per household Per capita Item Proportion % (CNY/household) (CNY/person) Agricultural income 21.4% 4,200 925 Forestry income 0 0 0 Income from animal husbandry 23.9% 4,689 1,033 Industrial income 0 0 0 Income from construction 0 0 0 industry Income from transportation 0 0 0 Annual household industry income Income from trade, food and 0 0 0 service industry Income from other non-farming 4.5% 864 190 jobs Income from working out 50.2% 9,847 2,170 Income from collective 0 0 distribution Income from property 0 0 0

Per household Per capita Item Proportion % (CNY/household) (CNY/person) Subtotal 19,600 4,318 Per household Per capita Proportion (CNY/year) (CNY/year) Household operation 28.7% 4,496 995 expenditure Annual household Living expenditure 48.3% 7,567 1,675 expenditure Others 23% 3,603 798 Subtotal 15,667 3,467

Sources: Survey on physical impact and socioeconomic in July 2016.

3.2.8 Public opinion survey

57. People formulating the Resettlement Plan surveyed the public opinion of the 492 households on a sample. 108 households affected by land acquisition and demolition are all sampling households for survey on public opinion. The survey has issued 492 questionnaires, and all of them have been returned. The results are shown as follows: (i) Awareness: 44.8% of surveyed households are aware the project is going to be constructed, 42.5% are not quite clear about the project and 12.7% know nothing about it. (ii) Attitude: 98.8% of surveyed households support the project construction, and 1.2% do not care about it. (iii) Livelihood options: 61.8% surveyed households are not willing to continue in agriculture anymore; 32% are willing to be given non-agricultural status; 100% are willing to participate in social insurance; and 97% are willing to receive technical training. See public opinion survey in Table 3-7.

Table 3-7 Public Opinion Survey Selection proportion of the opinions No. Questions Answers of the affected households (%) 1 2 3 Total Do you know the project will be (1) Yes (2) Not quite clear 1 44.8 42.5 12.7 100 constructed? (3) No Do you approve the project 2 (1)Yes (2)No (3) I don’t care 98.8 0 1.2 100 construction? Who do you think can benefit from the (1) Nation (2) Collectivity 3 100 97 90 100 project? (multiple choices) (3) Individual Do you know the compensation policy 4 (1) Yes (2) No 13.7 86.3 \ 100 for land acquisition? Do you accept the land acquisition for 5 (1) Yes (2) No 75 25 \ 100 supporting the project? Are you willing to do business after 6 (1) Yes (2) No 46.5 53.5 \ 100 land acquisition? Are you willing to participate in social 7 (1) Yes (2) No 100 0 \ 100 insurance after land acquisition? Are you willing to receive technical 8 (1) Yes (2) No 97 3 \ 100 training after land acquisition? Selection of housing resettlement (1) Land allocation methods. resettlement (2) 9 50.9 40.6 8.5 \ resettlement on site (3) Monetary compensation Where do you want to choose as (1) The group (2) The 10 housing resettlement point? village/community (3) The 40.6 50.4 9 \ town/township 11 Do you know you can lodge a (1) Yes (2) No 41 59 \ \

Selection proportion of the opinions No. Questions Answers of the affected households (%) 1 2 3 Total complaint when your lawful rights and interests are violated? Sources: Survey on physical impact and socioeconomic in July 2016.

3.3 Affected Enterprises and Public Institutions and Sensibility Impact

58. The survey shows that there are no affected enterprises, public institutions, schools, hospitals as well as religion facilities and cultural relics.

3.4 Women’s Development in Project Area

3.4.1 Rural women profile in project areas

59. The proportion of female population was 48.38% in Haiyuan County in 2015, of which the majority were rural women, accounting for 68% of total female population. Women are playing important roles both in agricultural sector as well as rural household development.

60. Based on the socioeconomic survey, there are differences in the education level between women and men. Specifically, 24% of female respondents are in the no-schooling category, higher than male respondents (16%). Similarly, the proportion of female respondents with 7-9 years of education (39%), is lower than that of males (59%), and female respondents with 10-12 years of education (1%), is also lower than that for males (5%).

61. The majority of respondents were farmers with 78% of females and 52% of males being concentrated in agriculture on their farmland. Both long-term and seasonal migrant laborers were mostly men. 15% of males were engaged in the long-term migrant labor compared to 4% for women. 24% of men were seasonal migrant labors against only 7% of women. Women were often left at home both for cultivating household land and taking care of household members. Women were 100% responsible for household work. The survey indicated that there were slightly more females running small businesses than men. However, of the respondents, only 1% of females were village cadre compared to males (6%), indicating that women’s participation in decision-making at village level was lower than for men.

3.4.2 Women’s roles in household livelihoods

62. Among surveyed villages, women and men are involved not only in agricultural activities but also non-agricultural practices. Women and men have different roles in agricultural production practices. Males usually dominate ploughing and clearing activities, while females are more engaged in planting and weeding. Both women and men take part in activities such as fertilizing, harvesting and animal husbandry. Tending poultry feeding is solely a woman’s activity.

63. It is very common for both females and males to be involved in income-generating activities. Among middle-aged groups, more males are long-term as well as seasonal migrant laborers compared to women. Whereas more women are left at home to undertake agricultural practices as well as to look after their household members such as children and elderly.

64. Women exclusively perform household work in addition to their agricultural work. Their roles are cooking, washing and care of small children and elders in their households.

65. It is obvious that men contribute more to cash income generation in the household, and women’s roles tend to be in household maintenance like growing corn and grain, raising animals for household consumption rather than for selling purpose. Looking after children is women’s domain. Some interviewed women reported that they are living in rented houses in the town to look after their school children. They no longer cultivated their land in the village. The household expenditures were fully met from their husbands’ non-farm earnings.

3.4.3 Decision-making at household and community levels

66. Among the majority of households surveyed, men have the power to make decision. Couples jointly discuss agriculture production activities such as planting, crop selections, seed purchases, fertilizer and equipment/tools. In many cases, women’s voices are heard during the discussion process but men make final decisions.

67. Men dominate decision making on household investments such as buying vehicles, running small shops or building new houses. The interviewed villagers indicated that men have more opportunities to go outside than women and therefore have more experience and knowledge with which to make decisions.

68. Men also dominated with respect to decision making on renting out land and on borrowing and lending money. These are very important household decisions and are definitely the responsibility of household heads.

69. Men and women equally share decision-making on household saving and buying durable consumables such as household appliances and instruments of production. Women dominate decisions on purchase of daily consumables.

70. Among the 90% families surveyed, women undertake all housework; both men and women take part in farm work and feeding work; a majority of men have the experience of migrant workers, while less women have.

71. The participation of women in community decision-making is still much less than for men because there are the fewer women members in decision-making bodies of communities. Women’s participation in community management include organizing traditional festivals, special occasions like marriage ceremonies and funeral activities, attending community meetings in the absence of men, and contributing labor for public works such as village road routine maintenance and irrigation repair.

3.4.4 Women’s transport needs

72. The women’s role in the household shapes their transport patterns, frequency of women’s mobility and travel costs. Women’s transport activities are different from men’s since women often have the primary responsibility for transporting goods to and from market, and for accompanying children and elders to hospital, and for seeking job opportunities to meet increasing cash demand of households.

73. Women have similar transport needs to other social groups. Due to their higher level of domestic responsibility, women assign greater importance to transport that is easier, faster, and safer and provides more mobility, as this in turn provides more home time for productive work. Women also expect more buyers to come to the village, which would in turn further reduces

21 travel time and thus saves more time. Specifically, women are more reliant on public transport and prefer safe and regular public transports with fixed fares.

3.4.5 Project Impacts on Women

74. The subproject will bring benefits equally to women and other social groups through improvement of road safety facilities, trunk road rehabilitations and particular rural road upgrade. Shorter travel time on roads is beneficial to them, as it increases mobility, and allows more productive use of time.

75. Women are primarily local travelers for buying home consumption goods and selling produce, sending and picking up small children to and from school, traveling for health purposes, and more frequently accompanying family members to hospital. Accessing better roads, thereby, will provide them easier, faster and safer travel.

76. Public or private transport operators will be more willing to provide services when the road condition and road safety is improved. Firstly, this could increase the potential for young women to travel outside the village to seek employment. Specifically, availability of public transport services, which are their primary means of travel to visit relatives and friends, is especially important to women. Secondly, Haiyuan is in extremely arid region, the villagers have to go to the town to buy water at CNY4-6 /ton, and due to the bad road condition, the freight is as high as CNY100/time. Therefore, the improvement of traffic could reduce the cost of villagers to buy drinking water, which further relieves the life stress of women who look after the family throughout the year.

77. Most men in the project area go out for work, only a few medium-aged elderly stay at home for farm work, while most women stay at home for farm wok and to look after their families. In case the land acquisition and resettlement problems are not solved, compared to men, the project construction will pose potential negative impacts on women. So the negative impact caused by land acquisition and demolition on women shall be considered in the resettlement. Firstly, compared to men, women will have less income and job opportunities due to low-level education and gender discrimination after they lose land, and will be in a bad situation in the labor market. For example, at local labor market, for the same job, a male skilled worker can get the income twice of female each day. Secondly, in the public meeting of negotiation and participation, women’s demand and interests are often neglected, only a few women show their opinions in public.

78. To facilitate income restoration for affected women, various skill-training programs will be provided through a number of ongoing government initiatives. According to women’s needs, relevant training courses such as housekeeping and handicrafts will be introduced to women through Women’s Federation, or the Human Resources and Social Security Bureau with close cooperation with the Project sponsor. Thirdly, provision of jobs to women will be prioritized during project construction, with improving the salary for females according to workload. All the above measures have been included in the Gender Action Plan (GAP), which has been extensively discussed with project sponsor. The GAP addresses women’s needs and ensures women will be benefited equally by the Project and to mitigate negative impacts for women that might arise from the Component.

3.4.6 Measures in RP in facilitating women’s development

79. The separate consultation meetings and focus group discussions have been undertaken in each surveyed village. These were very helpful for women to voice their particularly needs on road safety, compensation modes, concerns over compensation standards, etc. Women’s needs, comments and suggestions on the project have been documented and incorporated in the RP, such as, training needs of handicraft, landscaping, seedling producing and fruit tree caring. Women show stronger desire for project participation and most of them expressed willingness to take part in the project activity in their free time. They also expressed desires to be informed about the project job opportunities.

80. In terms of compensation on LA and HD, women are not worried about their rights. The national laws and regulations guaranteed that women have equal rights on land use rights and house property legal rights. All households constructed or purchased during marriage automatically have shared-ownership between the couple, regardless of how or to whom the property was registered.

4 Legal Framework and Policies

81. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows.

4.1 ADB's Policy

82. The relevant ADB policy is ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement

4.2 The PRC’s Laws and Regulations on Land Acquisition and Relocation

83. The PRC relevant laws and regulations include the following:

(1) The Land Administration Law of the People’s Republic of PRC (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then)

84. Main contents: formulations on land ownership, overall land use plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people.

(2) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People’s Republic of PRC on December 27, 1998)

85. Main contents: in line with Agriculture Law of the People’s Republic of PRC and the Land Administration Law of the People’s Republic of PRC, concrete formulations for the country’s protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, etc.

(3) Interim Regulations on Farmland Use Tax of the People’s Republic of PRC (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008)

86. Main contents: formulations about tax contribution standard and contribution range of state construction occupied Farmland

(4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28)

87. Main contents: In order to use the land properly, to protect the legal rights of the farmers whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guiding principle and way to perfect the compensation of land expropriation. The decision requires all the county, city and province governments to take effective measures to ensure that farmers’ living standards will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground ancillary facilities and young crop compensation are paid in full and in time. If after the payment of land compensation and relocation compensation in accordance with the laws in force, the farmers whose land has been expropriated cannot maintain their original living standard and their social safeguards cannot be paid, the province, autonomous region and/or municipality government should agree to provide further relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the farmers whose land has been expropriated cannot maintain their previous living standard, the local people’s government can offer subsidy with the state-owned land income. The government of province, autonomous region and/or municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for the same land. National key construction projects should incorporate the expense of land expropriation into its budget.

(5) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of PRC (November 3, 2004, Guotuzifa [2004] No. 238)

88. The main contents: to put forward how to carry through The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: (i) To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies woks out the minimum unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. (ii) To affirm unified annual output value multipliers. The unified annual output value times of land compensation and resettlement subsidy should ensure the farmers whose land is expropriated remain a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure that the peasants whose land is expropriated can’t maintain the original living level or pay for their social security, the times can be increased after the approval

of provincial government. If the sum of land compensation and resettlement subsidy is 30 times as the unified annual output value, the farmers whose land is expropriated couldn't remain the original living standard, the local government can provide subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

(6) Real Property Right Law of the People’s Republic of PRC (Order of the People’s Republic of PRC No. 62, in effect as of October 1, 2007)

89. Main contents: In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the property, utilization of property, and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law.

(7) Notice on Further Specification of the Land Type Identification of Farm Road of General Office of Ministry of Land and Resources of the People’s Republic of PRC (Guo Tu Zi Ting [2013] No.581)

90. Main contents: Define and specify the definition and scope of farm road, clearly propose that farm road refers to road (including farm track) serving the transportation between villages and fields and the rural agricultural production, and excluding from the national highway network system. Public road (including overpass) and land for street trees inside towns and villages do not belong to farm road. The pavement width of farm road shall not exceed 6.0 m, or the subgrade width of 6.5 m. In case the road’s pavement or subgrade exceeds the limitation width after reconstruction and expansion, and only has unidirectional lane, it cannot be identified as farm road, and shall be included in construction land management, and handle relevant land using procedure according to regulations.

4.3 Relevant Policies of Ningxia Hui Autonomous Region and Haiyuan County

(1) Notice on Implementing Compensation Standard for Land Acquisition for Towns (Cities and Districts) of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2010] No.3) (taking effect on January 7, 2010)

91. Main contents: Specify the detailed implementation regulations according to the reality of Ningxia Hui Autonomous Region and complying with Land Administration Law of the People’s Republic of PRC.

(2) Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2015] No.101), which was issued and took into effect January 1, 2016.

92. Main contents: According to Land Administration Law of the People’s Republic of PRC and Land Administration Regulation of Ningxia Hui Autonomous Region, decide to publish Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region after deliberation of executive meeting of the People’s Government.

(3) Notice on Issuing Compensation Standard for Land Acquisition and Demolition of the Additional Construction of the Second Line Project in Ningxia Section of Baotou-Lanzhou Railway of the General Office of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Ban Fa [2010] No.43).

93. According to the above Ning Zheng Fa [2015] No.101 document and current economic development of project implementation area, given that the six counties/districts of project implementation are in Ningnan (southern of Ningxia) Mountain area, social development situation and people's production and living habits are identical basically, and economic characteristics are similar, especially land output value is lower in mountainous area, so each county/district PMO has regarded the above Ning Zheng Fa [2015] No.101 document as the basis of compensation policy for land acquisition and demolition.

94. Main contents: compensation rates of LA range from CNY1,500/mu for natural grassland to CNY4,790 for mountainous dry land, and rates of HD range from CNY210/m2 for earth and timber structure to CNY650/m2 for concrete and brick structure.

4.4 ADB’s Policy Requirements on Involuntary Resettlement

95. ADB involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary.

96. The objectives of the policy: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups.

97. The basic principles include: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the

loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.5 Differences of ADB’s and Local Policies

4.5.1 Compensation and resettlement for house

98. Difference: ADB policies require that compensation is based on replacement cost. Chinese laws accept that depreciation is reasonable, and the compensation rate for the old structure should be lower than that for new housing.

99. Solution: Compensation rates in this RP are based on replacement cost.

4.5.2 Compensation and resettlement for land

100. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on AAOV.

101. Solution: An early stage solution is to provide replacement land. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households; especially those in vulnerable groups, and local governments should provide assistance to those in need. These are specified in this RP.

4.5.3 Compensation and resettlement for vulnerable groups

102. Difference: Difference: ADB policies require that special compensation be granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss. Other social programs are in place for vulnerable groups regardless of the project.

103. Solution: Special funds have been allocated to assist the vulnerable groups, who will be further identified during the DMS. All measures have been specified in the RP. For significantly affected households, the RP includes specific provisions.

4.5.4 Consultation and disclosure

104. Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short.

105. Solution: Consultations have begun at the early stage (before and during technical assistance) and will continue throughout the project cycle. Ningxia Provincial Communication Bureau and the local Government agreed to disclose the RP to APs as required by ADB.

4.5.5 Resettlement monitoring, evaluation and reporting

106. Difference: ADB requires internal and external resettlement monitoring. However, laws of PRC have no such requirement except projects that have reservoir resettlement.

107. Solution: Follow the ADB requirements, internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

5 Compensation Principle and Entitlement

5.1 Resettlement Principles

108. The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that APs obtain sufficient compensation based on replacement cost and assistance so that their production and livelihoods are at least restored to pre-project levels. Table 5-1 presents the resettlement principles of the Component.

Table 5-1 Resettlement Principles of the Component No. Principle 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the 2 absence of the project. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. The APs are given compensation in full replacement cost and assistance in resettlement whether legal title is 3 available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and 4 other income-generating activities are provided for the lost land. The IA will ensure that APs fully understand their entitlements, the method and standard of compensation, the 5 livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. The IA will ensure that no physical displacement or economic displacement will occur until (i) compensation at full replacement cost has been paid to each AP for project components or sections that are ready to be 6 constructed; (ii) other entitlements listed in the RP have been provided to APs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help APs improve, or at least restore, their incomes and livelihoods. Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs 7 should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement plan should combine with the overall planning of county/ city/ district. If feasible, changing from “agricultural to non-agricultural” status can be provided to LEF on a voluntary basis. 9 All resettlement cost is included in the project budget and sufficient to cover all affected aspects. The fund 10 needs to be paid in time. The IA and an external monitoring agency will monitor and measure the progress of implementation of the RP 11 and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes.

5.2 Cut-off Date of Compensation

109. The cut-off date for the eligibility for compensation is on November 1, 2016, which is also the date of Haiyuan PMO and RO conducting resettlement DMS. Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses.

5.3 Compensation Rate for Permanent Land Acquisition

110. According to the Notice of Further Regulating the Farm Road Land Affirmation Work of the General Office of Ministry of Land and Resources (Guo Tu Zi Ting [2013] No.581): “ First, farm roads refer to the roads (inclusive of farm track) that conform to the definitions for land in Land-use Status Classification (GB/T21010-2007)”, and is used for the transportation in village and field within the rural scope and served rural agricultural production outside of the state road network system. The public roads (inclusive of interchange) in town and village and land for border tree are not farm roads. Second, the width of farm roads shall not be larger than 6.0 m, or the width of subgrade not larger than 6.5 m. The width of farm roads or the width of subgrade exceeds the upper limits after reconstruction and expansion, and the roads only with one-way lanes shall not be identified as farm roads and shall be incorporated into the management scope of construction land.”

111. The subproject does not belong to farm road construction, and if land acquisition and resettlement is involved, policies shall be formulated in accordance with the Government’s requirements for construction land.

112. According to the Notice of Releasing the Compensation Standard for Land Acquisition in Ningxia Hui Autonomous Region by the People’s Government (Ning Zheng Fa [2015] No.101) issued on January 1, 2016, the project is being implemented in Area II in Haiyuan County, Zhongwei City, where the compensation standard for farmland and residential land is CNY7,904/mu.

113. The acquisition of forest land is executed by the 70% of that of farmland of the same area, the compensation standard for forest land of the RP is CNY5,532.8/mu. The acquisition of unused land is executed by the 20% of that of farmland of the same area, the compensation standard for unused land of the RP is CNY1,580.8/mu. According to the compensation policy for the same crop by the average annual output value in the last 3 years for the common crops, the compensation standard for young crops is CNY500/mu:

114. Table 5-2 has summarized the compensation standard for land acquisition of this RP by land category.

Table 5-2 Compensation Standard for the Project Land Unit: CNY/mu farmland/ Category forest land unused land Young crops residential land Compensation 5,532.8 1,580.8 7,904 500 standard (70% of Farmland) (20% of Farmland)

5.4 Temporary Land Occupation

115. At this stage, no temporary land occupation is planned. If there is any, it will be compensated in accordance with…the notice of Compensation Standard for Land Acquisition and Demolishing & Resettlement of Additional Construction of Second Line of Ningxia Section, Baotou-Lanzhou Railway (Ning Zheng Ban Fa [2010] No. 43), the compensation standard is determined as CNY600 per mu per year. It will be for a maximum of 2 years and the land will be restored to its pre-occupation standards prior to its redistribution to the owners.

5.5 Compensation Rate for House Demolition

116. The compensation for all houses demolished will follow the following principles. (i) Full replacement costs without depreciation: House demolition will be compensated at replacement costs. Table 5-4 has the detailed cost estimations based on the local house construction practice by type. The affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (ii) Various voluntary replacement choices available: The affected household can choose scattered settlement by providing similar condition of individual housing site, or choose concentrated settlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. (iii) No demolition prior to new house ready/or agreement on new house plot/ apartment units singed: No house demolition will commence prior to the new house constructed or transition house arranged. Transition period should not be over 6 months. The affected households will obtain transition compensation prior to moving to the new house. In case of some household facing difficulties of moving, village committee and Haiyuan PMO will provide assistance of transport. For those household facing difficulties to find transition house, the village committee and Haiyuan PMO will provide assistance in renting.

117. According to the policy of Asian Development Bank and regulations of PRC, replacement cost is adopted for the rural residential houses of the RP. The houses to be demolished will receive compensation according to the “replacement price”, the compensation price will be determined through market price, and will not be lower than the compensation base price of the RP. The RP refers to house demolition compensation price of the document (Ning Zheng Ban Fa [2010] No. 43), and combines the actual conditions of the current economic investigation to raise the price properly, which is basically same to cost of constructing a new house in project area in 2015.

118. The residential land for resettlement will be distributed prior to demolition, and the resettlement site shall be determined in villagers’ representative meeting organized by village committee, within the same village group or village as much as possible. The “three supplies and one leveling” for the residential land will be carried out by the project construction unit, and the expense is included in construction budget. Table 5-3 shows the classified compensation standards.

Table 5-3 Compensation Standard for Demolition of Residential House and Ancillary Facilities Type Structure type Unit Base price Remark Residential land CNY/mu 7,904 The compensation for the Compensation house shall not be lower for house Earth-wood CNY/m² 3101 than the proposed base price. 1,0002 CNY1,000 per household relocation subsidy CNY/HH for one time. House on collective Transition subsidy: land CNY300 per household Other subsidy each month. Generally, Subsidy for temporal for house 3 and the transition period is resettlement/ CNY/HH/month 300 6 months. The exceeded transition subsidy time should be calculated in accordance with actual condition.

Table 5-4 Cost of House by Type (per 100m²) Earth-wood Item No. Unit price (CNY) Amount (CNY) A. Subtotal of main building materials 11,830 Wood 5 1,000 5,000 Concrete 0 0 0 Adobe 12,000 0.2 2,400 Brick 1,000 0.35 350 Lime (coating) 6 400 2,400 Tile (tilestone) 8,000 0.21 1,680 Sand 0 0 0 B. Subtotal of other materials 7,000 Miscellany Nails, iron wire, electronic charge 3,000 Water and electricity materials 4,000 C. Subtotal of labor 12,000 Skilled 40 200 8,000 Unskilled 40 100 4,000 Total 30,830 Source: Socioeconomic and physical impact survey in July 2016

5.6 Compensation for Ground Attachment and Infrastructure

119. The compensation standard for the ground attachments, facilities and infrastructure of the project is determined based on the principle of “replacement cost”, shown as Table 5-5.

1 In the compensation standard of Ning Zheng Ban Fa [2010] No.43 document, the price is CNY210 /m2, but the standard was released in 2011. In view of the current economic and social development, the standard has not been suitable for the existing housing compensation. Hence, through the negotiation with the representatives of affected villages, and comprehensive consideration of the local current economic level and the compensation policies of Haiyuan County in the past, it is increased to CNY310 /m2 in the RP. 2 In the compensation standard of Ning Zheng Ban Fa [2010] No. 43 document, the subsidy is CNY500 /household. In view of the current economic and social development survey, the removal subsidy in the RP is increased to CNY1,000 /household. 3 The subsidy for temporary resettlement is used as house rent of relocation households after relocation. Through the survey on local house rent and the negotiation with the representatives of affected villages, the fees in the RP are determined to be CNY300/household/month.

Table 5-5 Compensation Standard for Ground Attachments and Infrastructure Item Unit Compensation standard （CNY) Earth wall(h<2m) m 60 Brick wall(h<2m) m 20 Cistern single 800 Iron gate Single 1,000 Poplar(Ф<10cm) single 28 Locust tree(10cm<Ф<30cm) Single 62

5.7 Compensation for Young Crops

120. According to the compensation policy for the same crop by the average annual output value in the first 3 years for the common crops, the compensation standard for young crops is CNY500 /mu.

5.8 Standard of Other Costs

121. The standard of other expenses is given in Table 5-6.

Table 5-6 Tax and Fee Standard of Resettlement No Item Tax and fee standard Policy basis Notice on re-issuing the Levying Farmland Reclaiming Fee Land reclaiming 1 CNY2,666.8/mu and Use Management Methods of Ningxia Hui Autonomous fee Region. Ning Cai (Zong) Fa [2012] No.13) Notice on Adjustment of Policy of New Construction Land Use Fee of Ministry of Finance, Ministry of Land and Resources and People's Bank of PRC (Cai Zong [2006] No. New construction 2 CNY6,667/mu 48); Notice on Adjustment of Classification of New land use fee Construction Land Use Fee in Some Regions by Ministry of Finance and Ministry of Land and Resources (Cai Zong [2009] No. 24) Farmland Provisional Regulations on Farmland Occupation Tax of the 3 CNY3,333.5/mu occupation tax People’s Republic of PRC

5.9 Entitlement Matrix

122. The entitlement matrix has been established in accordance with the applicable policies in this chapter. See Table 5-7 for details.

Table 5-7 Compensation Entitlement and Resettlement Policy Matrix No. of Implementation Entitled Applicable entitled Compensation Compensation item Type of loss person/ targets person/ policy entitlement collective collective a. Pay land Land The village a) Rural Land within a) Three acquisition compensation meeting will collectives the project towns compensation to allocation: The determine the owning the implementati collectives the rural share division fund using, re- land Permanently on area - b) 507 APs of collectives among the allocation of b) Farmers acquired road right of 108 HHs according to the farmers losing land, investment with land use farmland way losing land (all compensation land is decided and development rights (estimated as with land use standard in by villager project c) Farmers 209.24 mu of rights) Table 5-2 of this meeting; cash The supervising renting the farmland) c) no APs RP compensation authority shall land renting the b. Re-allocation shall be directly approve and

No. of Implementation Entitled Applicable entitled Compensation Compensation item Type of loss person/ targets person/ policy entitlement collective collective land of farmland OR paid to supervise the payment by individual. proposals and affected village requirements of collectives of village and cash provide compensation convenience for (100%) to AHs training project. losing land with Those agreed user rights if land compensation for is contracted to individual shall APs be paid c. Cash according to the compensation agreement and for all the ground prior to attachment (e.g., dispossession. trees) according to standards in Table 5-5 and standing (young) crops according to standard in Table 5-2. Cash compensation for the annual loss during land Land The village loss period. The villagers temporarily committee must a) Farmers Restore to the losing crops will used as To be inform the with land use status prior to get total construction determined original land user Temporary rights the construction, compensation area within during and make loss of land b) Farmers and maintain the according to the project construction corresponding renting the life of APs at the the implementati period compensation. land former level at compensation on area or Maximum period least. The standard close by area of use is 2 years. compensation standard is CNY500/mu per year. Cash Cash compensation compensation for AHs, paid to the including owners of Village and APs residential land, housing/buildin will determine Residence and housing, g and the location of and property and attachments. new residence. within the 12 APs of 2 attachments. HHs or APs The The contractor project HHs. No HH Cash Loss of losing compensation shall be implementati suffer compensation residence/pro buildings or for residential responsible for on area or complete loss for various perty housing due to land shall be filling and affected by and require housing type demolition paid to leveling the area the project relocation according to the collective and of new residence (estimated as replacement cost residential land and connect it to 240 m2) in Table 5-3. The shall be re- the existing moving allocated to the public facilities. compensation is affected CNY1,000 per households by HH, the the villages. transitional

No. of Implementation Entitled Applicable entitled Compensation Compensation item Type of loss person/ targets person/ policy entitlement collective collective compensation is CNY300/month of standard subsidy, and the transitional period is 6 months. Compensation Non- according to the Farmland RP. Funds can within the Rural collective 6 project be used for Loss of non- project Cash Village owning land affected village Farmland implementatio compensation collective ownership villages development as n area decided in a (estimated as village committee 275.56 mu) meeting.

All facilities within the Cash project compensation Proprietor Affected implementatio Proprietor of all Proprietor of all based on the receives the public facilities n area (no facilities facilities market price and total impacts have negotiation with compensation been proprietor identified yet)

The project will assist the villages Refers to the and towns in old and weak, meeting the women, demands of the children, the In the same Any affected 11 HHs with 42 vulnerable disabled, or condition, enjoy person who is persons groups, and each Assistance by Vulnerable those lacking the priority of also belonging to household will government groups living ability, project vulnerable the vulnerable receive about department and the compensation groups CNY3,000 poverty HHs, and assistance special subsidy HHs lacking for the economic labor or with recovery of the heavy burden vulnerable groups.

6 Income Restoration and Housing Resettlement Measures

6.1 Impact of Land Acquisition and Income Restoration Measures

6.1.1 Impact of and acquisition

123. The subproject involved permanent land acquisition of 485 mu of rural collective land, including farmland of 209.24 mu (43.17%), residential land of 1.6 mu (0.33%), forest land of 18.45 mu (3.81%), and 255.74 mu of unused land (52.7%). The land acquisition will affect 507 persons in 108 households in 6 administrative villages of three towns of Haiyuan County.

124. For the six affected villages, the farmland loss rate is only 0.13%, and for Yuantao Village of Jiucai Township, the farmland loss rate by household is 4.4% which is the highest. The main crops in Haiyuan County are corn and wheat. Due to long-time drought, Haiyuan is a county of severe water shortage. The land is cultivated only once a year and the output value per mu is quite low – about CNY500 per mu. Meanwhile, according to an investigation, the cost of production in Haiyuan for planting grains is about CNY150 per mu. Taking consideration to the crops of farmers in project area, net income per mu is about CNY350. So, land acquisition will reduce the income of farmland by CNY18,119.5 calculated based on the highest farmland loss rate by household of Yuantao Village, which is only 0.23% of the general income of CNY7,825,125 of this village in 2015. On the other hand, for households of land acquisition, the household only has loss in income of CNY910/year calculated at the highest farmland loss rate of 6.5% (a household in Yuantao Village has 40 mu land, 2.6 mu are acquired, with farmland loss rate of 6.5%). Even if the compensation for land acquisition is not calculated, it only accounts for 4.79% of the total household income (about CNY19,000). Therefore, land acquisition of the subproject will exert small influence on the affected villages and AHs. See detail in Table 6-1.

Table 6-1 Permanent Land Acquisition Impact Before land acquisition Land acquisition impacts (losses) Income loss Annual Per Farm Per Per income capita Per Total AP of Affected Farm Village land capital Affected HH lost of income Road Town Total Total capita farm land population land farmland loss average Village farmla affected loss of HH population income land acqui- of land loss loss rate income nd village village (CNY) (mu) sition acquisition (mu) rate % of loss of (mu) (CNY/ (CNY/ AH % village village) person) Zhengqi 979 3,854 4,520 39,000 39.84 4 16 5.69 0.01 3.57 1,992 123 2.72% 35.5 Satai 685 3,072 6,150 31,000 45.26 22 101 0.11 3.57 12,453 157 2.55% 8 Zhengqi Zhengqi 34.9 Sabu 505 2,152 3,167 28,000 55.45 19 78 0.12 3.32 12,240 188 5.94% -Jiucai- 7 Sikouzi Zhongping 560 2,450 3,040 35,000 62.5 12 55 29.5 0.08 3.93 10,325 141 4.64% Road 51.7 Matao 218 1,140 4,017 13,000 59.63 23 128 0.40 3.77 18,106 140 3.49% 3 Jiucai 51.7 Yuantao 405 1,925 4,065 17,000 41.98 28 129 0.30 4.40 18,120 144 3.54% 7 209. TOTAL 6 3,352 14,593 4,316 163,000 48.63 108 507 0.13 3.98 73,234 144 3.34% 24 Source: Socioeconomic and physical impact survey in July 2016.

6.1.2 Income restoration plan and assistance measures

125. The land acquisition impact is limited and no household will lose more than 10% of their farmland or income, and thus there is no significant on APs’ livelihoods. Consequently, the rehabilitation strategy focuses on income restoration rather than livelihood restoration. The income restoration plan formulated is based on the will of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self- employment, social insurance approaches were discussed. Table 6-2 summarizes the preferences expressed by APs.

Table 6-2 Summary Sheet of Income Restoration of the Acquired Households No. Selection of income restoration willingness of AHs No. of Job Road Town Village of Improve Non-farm Self- Social AH arrangement APs Agriculture employment employment Insurance s by Project Zhengqi 4 16 1 1 2 0 4 Satai 22 101 7 9 5 1 22 Zhengqi Zhengq Sabu 19 78 6 7 5 1 19 -Jiucai- i Zhongpin Sikouzi 12 55 3 5 4 0 12 g Road Matao 23 128 6 8 8 1 23 Jiucai Yuantao 28 129 7 10 10 1 28 Total 6 108 507 30 40 34 4 108 Proportion 27.8% 37.0% 31.5% 3.7% 100.0% Source: Socioeconomic and physical impact survey in July 2016.

(1) Cash compensation and distribution

126. The affected villages/village groups will be compensated in cash based on the standards discussed in Section 5, where compensation rate for farmland is CNY7,904, residential land CNY7,904, Forest land CNY5,532.8, and Unused land CNY1,580.8 per mu respectively (refer to Table 5-2). The land compensation distribution from village to AP has two scenarios: (i) if the land is contracted to APs, 100% of the compensation will be distributed to APs directly; and (ii) If the land is not contracted to APs, the compensation will be reserved for village infrastructure maintenance or improvement

127. The compensation rate is very comprehensive compared the current land lease price. According to the current land-leasing price in the project area, dry Farmland, which is the main farmland type, is CNY100-CNY150/mu per year, depending on location for convenience of transport. The project compensation for dry land per mu is CNY7,904 that is worth of land leasing price at the existing higher rate of CNY150 for 52 years, annual average output value (CNY500 /mu) for 15.8 years and land net income (CNY350 /mu) for 22.6 years. Due to limited land acquisition per household and high compensation rate, most of APs are not worrying about loss caused by land acquisition because the compensation will free up there labor and the road will bring new economic opportunities.

128. Also, to ensure that the affected households use the compensation in a rationale manner, Haiyuan PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for households affected by permanent land acquisition.

(ii) Improve agriculture

129. About 30 AHs or 27.8% of the total AHs chose agriculture restoration. They will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as ginger, garlic or edible wild herbs, and garden plant seedlings which require intensive labor and capital investment. It is estimated that the plantation of ginger, garlic or edible wild herbs will generate net income of about CNY700- CNY900 per mu compared to that of CNY500 of grain plantation. The annual growth is about 30% to 100% a year. It will be easy to offset their economic loss caused by land acquisition.

130. For the garden seedlings and fruit tree plantation, corresponding training will be provided. For other crop plantation types, training is not desired by APs because most households have such skills already. It is estimated that about 50 members need training on garden plant seedling production and fruit tree care.

(iii) Arranged Jobs

131. About 40 APs expressed interest in job arrangement for this subproject. The Ningxia Transport Department and Haiyuan PMO committed to give priority to employing APs for the job opportunities from this project. It is estimated around 30 unskilled jobs are only available during project construction, and 10-20 jobs during operation, including road maintenance, greening and cleaning. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 50 APs will be trained. Table 6-3 summarizes the direct job opportunities from the project.

Table 6-3 Post information Planned Standard Proposed Proposed Projected income Jobs No. workdays income employment time targets (CNY) (day) (CNY) Local Earth- moving 20 After the project starts 20 CNY80/day 32,000 villager (estimated from July Local Logistical support 10 2017 to July 2018) 100 CNY50 /day 50,000 villager Road Local 10 After project 200/year CNY50 /day 100,000 maintenance villager completion (2018 Local Unskilled labor 10 onwards) 100/year CNY80 /day 80,000 villager Local Total 50 After the project starts villager Note: The remuneration for above jobs will be paid by day due to the existing financial system and job nature. The annual income of the position is predicted under full workload. Source: Socioeconomic and physical impact survey in July 2016

(iv) Non-farming employment/business

132. As the income loss per household from land acquisition is quite limited and agricultural income is no longer their main income sources, about 38 AHs (35.2% of total AHs) stated that they will spend the land compensation and saved time on non-farming employment or self- employment business to offset their income loss. As indicated in Table 6-2, the maximum per AP loss is CNY182 per year, a few days of non-farming employment at a common rate of CNY80 per day would cover their annual income loss.

133. As discussed in Section 3, over 80% of the households’ main income is from non- farming sources and agricultural source is supplementary. Regarding labor input, four basic models are used in operating their farmland: (i) by either female or the old family members left home to carry out agricultural plantation; (ii) with the migrant family members who come back home during busy season to help with planting or harvesting, (iii) by giving land to relatives to plant without charge, or (iv) leasing out the land convenient for irrigation and transport at a price of CNY100-CNY150 per mu per year. Before 2000, almost all households adopted the first two models, but now more and more households adopt the last two models to avoid interruption to their non-farming migrant jobs. For female left at home, they are willing to spend their saved time in either handicraft or finding local non-farming jobs. The surveyed households expressed their interest in non-farming jobs stimulated by the road improvements and hoped the project can provide market information and skills about handicraft, local non-farming jobs or business opportunities (including transport services). It is estimated that about 150 households or 660 people need relevant skill training which has been provided for in the budget of this RP.

(v) Training

134. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

135. For the households that choose agricultural improvement measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

136. For the non-farming employment, skill training will include landscaping, house decoration, handicraft production, car repair, transport services and other skills. It is estimated that about 150 AHs with 660 members require such training.

137. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by Haiyuan PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of non-farm training, it will be delegated to labor and social insurance bureau.

138. A total of CNY50,000 has been budgeted in the RP. The trainees shall receive three skill trainings at least before completion of project in 2018.

Table 6-4 Training Plan for Project Implementation Year Target Scope Agency responsible Budget 660 Gardening plant seedling plantation, fruit people in tree or other new cash crop plantation, CNY50,000 included total, PMO, women’s handicraft production, farm machinery, federation, labor and in project RP budget including 2016-2018 motorcycle or other vehicle repair, driver, social security bureau, in addition to local 320 stonecutter, painter, concrete worker, agriculture and forestry government fiscal females waterproofing worker, masonry worker, bureaus funds. and 280 house decoration worker, etc. males Source: Field Socioeconomic survey and survey on physical impact in July 2016.

(vi) Social insurance

139. All affected households expressed their interest in social insurance. However, the endowment insurance for land-expropriated farmers (LEF) only targets at eligible households. The land acquisition of the component is linear, so there are few opportunities to create LEF. No endowment insurance will be provided if there are no eligible APs. However, the APs are encouraged to participate in the general pension and insurance.

140. To guarantee the vulnerable groups livelihood restoration, MLSS will be made available for officially identified poor. Other insurance options are optional and subject to APs voluntary decision. Since APs will receive cash compensation, they will have an opportunity to participate in voluntary programs; this may be attractive for older farmers.

141. As mentioned above, this project provides land acquisition farmers with diversified relocation measures, which widely covers affected households. See details in Table 7-5.

(vii) Special assistance to vulnerable families

142. The following special assistances are provided for the identified vulnerable families: (i) Priority will be given to arrange jobs. One member from each household will be guaranteed an arranged job. (ii) Preferential credit will be provided if needed to develop non-farming business such as purchase of vehicles for transport business, repair shop, small business of buying and selling, or change from grain plantation to gardening plant seedlings or fruit trees as requested. (iii) Specific training will be provided as desired including farmer to farmer exchange visit. (iv) Special measures for vulnerable group will be provided to them too as described in Section 6.3

6.2 Demolition and Housing Resettlement Plan

6.2.1 House Demolition Impacts and Relocation options

143. The subproject will involve demolition of 240 m² of housing and will affect 2 households with 12 members. The affected households list is shown in Table 6-5. Field surveys reveal that the affected houses are not in good condition in terms of indoor facility, structure, and surrounding facilities. Guided by the principles of the replacement costs and no depreciation, most APs consider that the project provides reasonable compensation as described in Section 5.

144. 2 HHs by HD will lose 40% and 46% respectively of their housing area but they have sufficient land to rebuild new rooms/buildings on the existing site.

145. Guided by the principles of housing demolition and resettlement in this resettlement plan and after negotiation with affected people and relevant organizations in the village and town, a preliminary demolition and resettlement scheme was formulated as shown in Table 6-5:

Table 6-5 Demolition Scheme of Residential Houses family Degree of Situation by Relocation Town village householder number loss HD scheme (person) Resettlement on Zhengqi Sabu SA Ailing 7 40% Partial HD site Resettlement on Jiucai Matao QIN Yujun 5 46% Partial HD site Source: Field Socioeconomic survey and survey on physical impact, April, 2016.

6.2.2 Other subsidy policy

146. The affected households will be entitled the following rights and interests. (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area; and, (iii) Access to the suitable jobs created by the project directly and indirectly, including jobs under project implementation agencies and jobs relating to enterprises attracted into the project area.

6.3 Measures for Vulnerable Groups

147. A support fund for vulnerable groups (11Ahs with 42 people) of CNY33,000 will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubao (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them with income restoration, livelihood improvements and/or house relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures

A) Land acquisition affected households:

148. Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures;

149. The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project. (i) Include all eligible AH into social insurance. The new rural social insurance will be an optimal option for the AH on a voluntary basis. (ii) Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business.

B) House demolition affected households:

(i) Priorities will be given to vulnerable group to choose resettlement locations. (ii) A one-off advance moving reward of CNY3,000 will be provided to vulnerable households after they show relevant valid certificates.

(iii) Minimum size housing (25 m2/person) will be guaranteed for the poor (assistance can be provided for housing materials and labor costs).

(ii) Including eligible vulnerable groups in MLSS as a priority

150. According to the MLSS policy of residents of Haiyuan County, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the average per capita income of each rural AH is not less than CNY200 per month.

(iii) Providing rural medical assistance to eligible vulnerable groups

151. Rural medical assistance will be provided to eligible vulnerable groups to solve their difficulty in receiving medical care. Haiyuan County People’s Government will provide medical assistance for the rural residents in line with the policies.

6.4 Women’s Development Measures

152. During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities.

1) Ensuring women’s equal rights

153. During the preparation of RP, separate meetings were held with female representatives of APs and the Women’s Federation in order to allow women to express their needs, expectations and suggestions on resettlement and restorations measures. Most of them including women-headed households stressed their concerns, namely: (i) receiving compensation on time; (ii) selection of resettlement mode and housing land, (iii) improving agricultural production with limited farmland; and (iii) operating small businesses at home or at agricultural product fairs or markets with either the compensation or small loan which will be provided by the project. Measures to address these concerns have been included in the RP.

2) Training priorities to women with preferential training methods and content

154. As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources given to opportunity generated from the industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and skills working in factories e.g. garment factories. Their training needs have been designed in this RP and training budget has been reserved (refer to Section 6.1). The project will ensure that 40%-60% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to detail the training design on methods and contents.

3) Providing and assisting women to apply for the project-generated job opportunities

155. For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible to inform them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment.

6.5 Recovery Plan of Ground Attachments and Special Facilities

156. To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities.

7 Institutional Arrangements

7.1 Institutional Arrangements

157. Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, relevant departments including transportation department, department of land and resources, department of finance, etc. shall participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are: (i) Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region (ii) Project Management office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region (iii) Haiyuan County Transport Bureau (implementing agency which also has a PMO) (iv) Haiyuan County Resettlement Office of Poverty Relief Project with ADB Loan (v) Project town/township governments (vi) Village committees (vii) Project design institute (viii) External monitoring and evaluation agency (ix) Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau.

158. The Organizational Chart is show in Figure 7-1.

Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Haiyuan Transportation Bureau

Internal monitoring Project Haiyuan Project Resettlement Office design institute

Town/Township Gov’t External monitoring Village/ Community committees Community

Affected people

AH by HD AH by LA Infrastructure

Figure 7-1 Project Resettlement Organizations

7.2 Organizational Responsibility

(i) Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region

159. Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region is the executing agency for the overall deployment of the Project and solving major issues. The group includes Comprehensive Planning Department and Road Management Department, and is led by Deputy Director of Transportation Department of Ningxia Hui Nationality Autonomous Region.

160. Ningxia PMO is the working body of Ningxia Hui Autonomous Region Project Leading Group as coordinating agency in charge of applying for ADB loan, coordinating the formulation and implementation of RP, monitoring and evaluation of the RP implementation.

(ii) Leading Group and Management Office of Poverty Relief Project with ADB Loan of Haiyuan County

161. Haiyuan County PMO is the key working body of Haiyuan Leading Group set up in Haiyuan County Transport Bureau, responsible for the project management, coordination, supervision, direction, quality assurance and annual planning, and the follow-up monitoring of the implementation, reporting to Ningxia Hui Autonomous Region Project Leading Group regularly. The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement.

(iii) Haiyuan County ADB Loan Poverty Reduction Road Project Resettlement Office

162. Haiyuan County ADB Loan Poverty Reduction Road Project Resettlement Office, consisting of 4 persons, responsible for identifying and confirming the quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages’ carrying out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to Haiyuan County PMO.

(iv) Town/township Government

163. The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, police office, civil affairs office and villages. The main responsibilities are: (i) Participating in the survey of the Project, and assisting the preparation of the RP. (ii) Organizing public participation, and communicating the resettlement policies; (iii) Implementing, inspecting, monitoring and recording all resettlement activities within the town; (iv) Settling the house demolition and reconstruction; (v) Responsible for the disbursement and management of land compensation fees; (vi) Supervision of LA, HD, income restoration and house reconstruction; (vii) Reporting LA, HD and resettlement information to Haiyuan County Project Management Office; (viii) Coordinating and handling conflicts and issues arising from its work.

(v) Village committees and village groups

164. The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are: (i) Participating in the socioeconomic survey and DMS; (ii) Assistance in preparing the Relocation and Resettlement Plan; (iii) Organizing public consultation, and communicating the policies on LA and HD;

(iv) Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of collective compensation funds in a village. (v) To choose resettlement sites and distribute housing land for relocated families; helping APs to get house construction approvals, (vi) Organizing the implementation of agricultural (including reserved land distribution) and nonagricultural resettlement activities; (vii) Reporting the APs’ opinions and suggestions to the relevant authorities; (viii) Providing assistance to relocated households with difficulties, particularly the vulnerable families (ix) Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction; (x) Reporting the progress in land acquisition and resettlement; (xi) Preparing clearance letter to confirm the facility and infrastructure have been restored and meet their requirement.

(vi) Agency undertaking RP formulation

165. Shaanxi Academy of Social Sciences has been entrusted by Ningxia Hui Autonomous Region PMO to formulate this RP. The responsibilities include: i) formulating the RP and ii) providing training to the RP implementation staff of PMO in provincial, county and township level.

(vii) Internal supervision agency

166. Haiyuan County PMO sets up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the requirements of the RP, and guarantee all the affected people can get their rights and interests.

(viii) Design Institute

167. At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the Project area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner, make design disclosure to the PMOs of all levels.

(ix) External independent monitoring and evaluation agency

168. The Ningxia PMO will invite qualified M&E institutes as external M&E agency. The main responsibility includes: (i) Monitoring all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of compensation, resettlement and income restoration measures for the APs, including women and vulnerable APs, and submitting M&E reports to Ningxia PMO and ADB semi-annually; (ii) Providing technical advice to the Resettlement Office in data collection and processing. (iii) Follow the TOR for external M&E (see Appendix C).

7.3 Staffing and Equipment

7.3.1 Staffing

169. In order to ensure the successful implementation of the RP, all resettlement agencies of the project have been provided full-time staff, and an efficient communication channel has been established.

7.3.2 Equipment

170. All resettlement agencies of the Project have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

7.3.3 Organizational Training Program

171. In order to ensure the successful implementation of the resettlement work, the resettlement staff will be provided training. As Ningxia Hui Autonomous Region Transport Department has implemented previous ADB and World Bank projects, they are familiar with both ADB and PRC resettlement policy and procedures, and therefore do not need much training. In contrast, the staffs in county RO, Town RO and village levels is experienced with PRC resettlement policies and procedures, but are not familiar with ADB policy and procedures. Therefore the training will focus on county level and lower.

172. A staff training and human resources development system for the county, township, and village level resettlement agencies will be established. Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training.

173. The scope of training includes (i) ADB’s Safeguard Policy Statement (involuntary resettlement policy) (ii) Differences between ADB and PRC polices, (iii) Resettlement implementation planning and management (iv) Key points require attention during RP implementation (v) RP implementation M&E

174. The training budget for resettlement agencies is CNY50,000, which has been included in the technical training budget.

8 Resettlement Budget

8.1 Resettlement Budget

175. Based on the prices in 2016, the estimated resettlement costs covered by this RP are CNY5,798,043, including basic costs of CNY2,467,442. Seeing from the category, permanent collective land acquisition costs are CNY2,277,406, housing demolition and relocation costs are CNY80,000, compensation fees for ground attachments are CNY23,036, and compensation fees for special facilities are CNY87,000.

176. Other fees include RP formulating fee, implementation and management fee, land acquisition fee, technical training fee, external monitoring evaluation fee and contingencies. See Table 8-1 for details.

Table 8-1 Resettlement Budget Total Quantity Proportion No. Budget Item Unit Standard amount (unit) (%) (CNY) Total of 1.1-1.4 1 Basic relocation costs CNY \ 2,467,442 42.6% items 1.1 Permanent land acquisition CNY \ 2,277,406 39.3% 1.1.1 Farmland CNY/mu 7,904 209.24 1,653,833 28.5% 1.1.2 Residential land CNY/mu 7,904 1.6 12,646 0.2% 1.1.3 Forest land CNY/mu 5,532.80 18.45 102,080 1.8% 1.1.4 Unused land CNY/mu 1,580.8 255.71 404,226 7.0% 1.1.5 Subsidies for young crops CNY/mu 500 209.24 104,620 1.8% Compensation fee for 1.2 CNY 80,000 1.4% housing demolition 1.2.1 Rural earth-wood structure 310 240 74,400 1.3% Fees for temporary 1.2.2 CNY/HH 300×6 2 3,600 0.1% resettlement 1.2.3 Moving subsidy CNY/HH 1,000 2 2,000 0.0% Compensation for ground 1.3 CNY 23,036 0.4% ancillary facilities 1.3.1 Earth wall(h<2m) m 60 220 13,200 0.2% 1.3.2 Brick wall(h<2m) m 20 60 1,200 0.0% 1.3.3 Cistern single 800 5 4,000 0.1% 1.3.4 Iron gate Single 1,000 2 2,000 0.0% 1.3.5 Poplar(Ф<10cm) single 28 10 280 0.0% 1.3.6 Locust tree(10cm<Ф<30cm) Single 62 38 2,356 0.0% Compensation fee for 1.4 CNY 87,000 1.5% special-purpose facilities Support fund for vulnerable 2 CNY 33,000 0.6% groups RP formulating and 3 CNY 70,000 1.2% monitoring fee 3.1 Fee for formulation of RP CNY 25,000 0.4% M&E cost for relocation and 3.2 CNY 45,000 0.8% resettlement Training cost for affected 4 CNY 50,000 0.9% people Taxes related to land 5 CNY 2,650,506 45.7% acquisition 5.1 Farmland occupation tax CNY/mu 3,333.5 209.24 697,502 12.0% 5.2 Farmland reclamation fee CNY/mu 2,666.8 209.24 558,001 9.6% Paid use fee for newly-added 5.3 CNY/mu 6,667 209.24 1,395,003 24.1% construction land (10% of item 1- 6 Contingencies CNY 527,095 9.1% 5) 2~6 Subtotal CNY 3,330,601 57.4% 7 Total CNY 5,798,043 100.0%

8.2 Resettlement investment plan and source of fund

177. The source of resettlement funds is Haiyuan County Government supporting funds and domestic loans. Before or during the construction phase, the investment plan will be implemented in stages in order to not affect the production and livelihood of the affected households. See details in Table 8-2.

Table 8-2 Resettlement Investment Plan Year 2017 2018 Total Amount of investment (CNY10,000) 347.8826 231.9217 579.8043 Proportion (%) 60 40 100

8.3 Management and Disbursement of Resettlement Funds

178. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals.

179. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken: (i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid when house is handed over for demolition. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) The resettlement costs may be increased due to the increase of the compensation standards and price inflation, but the Haiyuan County Government will ensure that compensation fees are fully paid.

180. Figure 8-1 shows the resettlement funds distribution flow. Local finance allocation of counterpart funds

LA Compensation Compensation fees for HD fees agreement and payment ground ancillary facilities and Infrastructure

Relevant unites or 50% of relocation individuals fees crops Fees young for Hand over/vacate APs house Direct payment Resettlement subsidy The balance Land Compensation fees should be paid Village committee ask for Payment villager's opinions through before LA village meetings

Figure 8-1 Resettlement Funds Flow of Distribution

8.4 Approval of Budget Increase

181. The project implementation unit has the authority to adjust the budget among categories and the use of contingencies within the budget. Costs exceeding total RP budget should be reported to Ningxia Hui Autonomous Region Development and Reform Commission and Financial Department of Ningxia Hui Autonomous Region by the project office and the increase of the budget subject to the approval. The whole process shall not be more than 1 month.

9 Public Participation and Grievance Redress

9.1 Public Participation

182. According to relevant policies and regulations of ADB, the PRC, Transportation Department of Ningxia Hui Nationality Autonomous Region and Haiyuan County, it is required to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives. It is necessary to develop a sound framework and implementation rules, preparing an effective RP, and organizing proper implementation.

9.1.1 Stakeholder identification and information disclosure

183. The main stakeholders refer to the groups directly affected by or involved in the project, including: (1) those suffering land loss and property loss; (2) the villages to be benefited in the project area; and (3) all organizations and companies directly participating in project construction and operation, including the construction contractor.

184. Other stakeholders include government organizations participating in the project activities as well as the people who are interested in the project and also participate in the relevant project activities in the process of land acquisition and demolition.

185. Early stage information disclosure will be through agencies involved in project design and administrative line agencies at various levels. The main content includes project rationale, scope, road standard, alignment selection, and potential affected people by land acquisition and house demolition. During the PPTA phase, information disclosure occurred mainly through Ningxia PMO and Haiyuan PMO, project design institute, survey teams of RP and poverty and social analysis and environment assessment. Key information including resettlement principles and compensation standard, resettlement options and assistance measures, and up to date negotiation process and results were shared with the APs. Future information disclosure will be conducted through information booklet distribution and website, village bulletins and public media as well as through public consultation. Key information related to compensation standard, implementation schedules, resettlement budget and funds flow, organizational responsibility and contact persons, grievance redress, and internal and external M&E are included in the booklet and will be distributed to all affected households in July 2016. Project implementation progress will also be disclosed to the APs and posted in village bulletins. The draft and final RPs will be posted on ADB website and made available to APs in the Town ROs and affected villages.

9.1.1 Participation during project preparation

186. At the feasibility study, PPTA phase, intensive consultations with stakeholders have been conducted with project executing agency, focusing on project scope and component, the alignment selection/shaping, design standards, and alternatives of reducing affected population.

187. During the PPTA, first survey was undertaken in April 2016 and the second in July 2016. A total of 492 households (including all AHs in 4 sample villages) were surveyed. In addition, a total of 6 key informant interviews, 7 focus group discussions (FGDs) and 2 consultation workshops have been held with women, the poor, the elderly and village representatives in the project area and a number of key informant interviews were held with various bureaus. See Figure 9-1 for details. Over 1,000 people were interviewed/surveyed or consulted in the process. The participants include individual villagers, village leaders, worker and government institution like Transportation Bureau, Development and Reform Committee. The quantitative and qualitative material provided in evaluation, investigation and discussion were used to formulate Resettlement Plan and other documents according to policy requirements of ADB and the PRC.

Figure 9-1 Public survey site

188. Methods and tools used include (i) field visits to collect basic information on the project impact from project beneficiaries and APs; (ii) household survey to understand family situations,

52 livelihood status and living conditions; (iii) focus group discussion to learn expectations and requirements of affected people; (iv) interviews with representatives of households, villages or communities to find potential impacts, coping strategies and demands for support; (iv) interviews with government agencies, development organizations and industrial parks to identify existing programs that can help the poor to take advantages of the project benefits, and (v) workshops were held to collect feedback on the draft RP.

189. The consultation during project preparation shows in Table 9-1 for details. The resettlement information booklet (RIB) has been formulated, and will be distributed in July 2016. The updated RP is subject to the detailed measurement survey, and will be handed over to ADB for approval before the land acquisition and resettlement and issuing of civil engineering contracts. Meanwhile, the updated RP will be disclosed to the APs and published on the website of ADB.

Table 9-1 Public Participation during Project Preparation δFinishedε Time Organizer Participants Objective Comments and contents Project Feasibility Affected people, Report town, village formulation leaders, Project institute, engineering Introducing project background and feasibility Foreign personnel, local purpose study, on-site Capital agency of traffic Site selection should minimize farmland 2015.4~2016.3 inspection and Division of management Route selection should minimize impact preliminary Transportation organization in on APs assessment of Department of project project impact Ningxia Hui implementation Nationality county and Autonomous district Region Design personnel, Shaanxi Academy of Assisting project impact survey Social Relevant Relocation Villager representatives expressed Science, government plan strong needs of the project and Foreign agencies, preparation, proposed suggestions for route 2016.4~2016.5 Capital villager socioeconomic adjustment Division of representatives survey of Socioeconomic survey and Transportation and grass-roots resettlement investigation on resettlement Department of cadres impact households Ningxia Hui Nationality Autonomous Region

Time Organizer Participants Objective Comments and contents Shaanxi Academy of Social Science, Foreign Relevant Capital government Preparation of Division of Negotiate compensation plan and 2016.4~2016.5 agencies and income Transportation income recovery plan villager recovery plan Department of representatives Ningxia Hui Nationality Autonomous Region, Haiyuan PMO 1) Distribution and allocation method of compensations for land acquisition 2) Distribution method and use of land reserved for placement 3) Impact degree of land acquisition and demolition on the income of AHs 4) Development planning of affected villages Public Haiyuan PMO, 5) Employment status and employment Affected towns, consultation Shaanxi resettlement willingness of AHs 2016.4~2016.5 villages and and survey on Academy of 6) Training needs of AHs villagers resettlement Social Science 7) Current status and willingness of option AHs for endowment insurance 8) Relocation method selection of AHs 9) Relocation site selection of AHs 10) Suggestions of APs on the form of housing construction and infrastructure construction 11) Women’s unique role in resettlement Haiyuan PMO, Affected towns, Public Land acquisition and demolition data Shaanxi villages and consultation 2016.7.11~7.13 verification with local government and Academy of villagers and situation villagers on site Social Science verification Source: from Haiyuan PMO.

9.1.2 Participation plan during implementation

190. Along with project implementation, the Haiyuan PMO and RO will conduct further public participation. The arrangement of public participation is shown in Table 9-2.

Table 9-2 Project Public Participation Scheme Objective Approach Time Agency Participant Topic Disclosing draft Village Compensation Resettlement APs, town, announcement Haiyuan standard, Plan and 2016.7 village and and villagers County PMO complaint information village group meeting channels, etc. booklet Compensation Disclosing draft Haiyuan PMO standard, Resettlement Website 2016.7 ABD website and ADB complaint Plan channels, etc. Village Haiyuan PMO, Announcing land Land acquisition announcement 2016.10 RO and town, All APs acquisition area, announcement and villagers village leaders compensation

Objective Approach Time Agency Participant Topic meeting standard, resettlement method, etc. Announcement for Village compensation Haiyuan PMO, Compensation announcement and 2016.10 RO and town, All APs amounts and and villagers resettlement village leaders mode of payment meeting scheme of land acquisition

1) Confirm the final affection quantity 2) Details of assets of loss and the occupied Detailed Haiyuan PMO, 2016.11~ land of Measurement Field survey RO and town, All APs 2016.12 resettlement Survey (DMS) village leaders households 3) Preparation of the basis contract for compensation agreement Prepare final RP Detailed impact Village based on APs, town, numbers, AHs, announcement 2016.12~ Haiyuan detailed design village and compensation and villagers 2017.1 County PMO and DMS and village group standards and meeting disclose RP budget Discussing the Confirming final scheme for Villagers Haiyuan PMO, income recovery Before income recovery meeting RO and town, All APs plan and its implementation and usage (several times) village leaders implementation scheme for compensation LSPB, town Villagers Discussing the Training plan 2016.10~2017.5 and village All APs meeting training needs leaders 1) Resettlement progress and impacts Villagers 2) Payment of Town, village Monitoring participates in 2017.3~2019.6 All APs compensation leaders meeting 3) Information disclosure 4) income restoration Source: from Haiyuan PMO.

9.1.3 Adaptation of RP based on public opinions

191. According to public consultation done by RP survey team of SASS, PPTA consultants, and Haiyuan PMO, some reasonable opinions and suggestions of the affected people are included in the resettlement plan as follow: (i) The views and concerns towards the project have been included in the RP. (ii) All resettlement options fully reflect the needs and wishes of APs.

(iii) Based on the survey results, the compensation standard for housing demolition was then updated based on the current local market replacement price4. The updated compensation standard has been greatly increased compared with the existing rate of the government documents, compensation is made in strict accordance with the market replacement price, and the compensation standard compared with that in other government projects is increased, ensuring the implementation of ADB’s resettlement guarantee policy and benefits of AHs.

192. In the public consulting activities, besides publishing project implementation information to the masses in the affected areas, opinions of the masses to project implementation are also collected and mainly concluded as follows:

(i) The project is implemented in the rural mountain areas with worse roads and natural conditions; it has direct and positive impact on the improvement of going out and economic activities of local people. (ii) The local masses that participate in public consultation especially propose that, the significance of this project not only lies in perfecting traffic highway network and improving traffic conditions; besides, it exerts a direct effect on the improvement in basic living conditions of the local masses. For example, since Sabu Village in Haiyuan County is lack of drinking water, local people can only purchase it from towns, and freight for transporting water each time is around CNY100, which not only increases the burden of the masses, but also wastes time and energy and requires considering weather change. After the implementation of this project, water stop can be built in the village, then greatly improving the basic living condition of the masses. The similar cases occur in the affected areas of other subprojects.

9.2 Grievances and Redress

193. To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems during implementation.

9.2.1 Grievances

194. Contents of grievances include any aspect of resettlement, for example, house compensation, quantity of assets, land compensation, selection of housing sites, and income loss, relocation fees and compensations during house rebuilding, temporary land occupation, other construction impacts, etc.

9.2.2 Grievance Procedures

195. The public participation is always encouraged in the process of compiling and implementing the RP. No substantial dispute is expected to arise; however there may be some unforeseeable problems that occur in the process. In order to solve such potential problems

4 According to current effective regulations, the compensation rates for HD range from CNY210/m2 to CNY650/m2. The consultations and field survey shows that they are not adequate to rebuild the house now with development of local economics. The rates therefore are improved for the subproject. See details in Table 5-3 in Section 5.5.

56 effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up.

196. The grievance procedures will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation networks, the positioning and design of drainage culverts, local road access, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of Haiyuan PMO and the contractors, as well as a forum, for their timely resolution. As an additional measure, village leaders will be provided with a name and contact point (e.g. Telephone number), to whom they can raise matters relating to the road construction as and when they arise.

197. The basic procedure of the grievance solution is: APs-Village committees- town resettlement office - Township or town government- county resettlement office-Haiyuan PMO and Ningxia PMO.

198. The basic grievance redress system is as follows: (i) Stage 1, if APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. Alternatively, the villagers’ committee or the APs may directly appeal to the town resettlement office for negotiated resolution or put forward an oral or written grievance. The town resettlement office records the complaints and resolves the problems within 2 weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2, if the APs are not satisfied with the results of the Stage 1, they may, after receiving the decision, lodge a grievance to the town or township office that will make a decision within 2 weeks. (iii) Stage 3, if the persons are still not satisfied with the decision of town or township office, they may, after receiving the decision, lodge complaints to the government of the county that will make a decision within 30 days.

199. If the persons are still dissatisfied with the decision of the Stage 2 or 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

200. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by the resettlement office that receives these grievances.

201. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

202. The APs may also express grievance to the external monitoring agency, who would then report it to Haiyuan County Resettlement Office, Haiyuan Land and Resource Bureau, and Ningxia PMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that

stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012) .5

203. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media.

9.2.3 Grievance Redress Principle

204. The resettlement offices at each level must perform on site investigations on the complaints from the people and closely consult with them on their opinions before providing practical and justified redress opinions in accordance with the principles and standards specified in national laws and ADB’s involuntary resettlement safeguards principles enshrined in the RP. The complaints that could not be solved must be timely submitted to the higher resettlement department, and the RO at each level are required to provide assistance on investigations.

9.2.4 Contents and Form of Reply to Complaints a.) Contents

205. Description of the complainants’ grievance; results of investigations; national policies, and the ADB’s principles and standards specified in RP; and resolution and its basis. The complainant has the rights to appeal to the higher resettlement department or to the courts. b.) Form of Reply

206. For complaint concerning individual case, the reply can be directly delivered to the complainant in written form.

207. For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents.

9.2.5 Report of Grievance

208. During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to Ningxia PMO in written form monthly.

5 Available: http://www.adb.org/site/accountability-mechanism/main

10 Implementation Plan of Land Acquisition and Resettlement

10.1 Principle for Implementation of land Acquisition and Resettlement

209. The schedule for land acquisition and resettlement will be integrated with the schedule of Project construction. The basic principles for RP implementation are as follows. (i) LA and HD should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary for LA, HD and resettlement. There will no commencement of related civil works until all compensation is paid. (ii) During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of LA and HD, the DMS results will be disclosed and confirmed with the APs. (iii) All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

210. After project approval and completion of detailed design, the Haiyuan resettlement office will organize a survey team along with town resettlement office as well as village leaders to conduct detailed measurement and investigation.

211. Haiyuan PMO will update the RP based on the detailed measurement and investigation results, and the plan will be submitted to Ningxia PMO.

212. Ningxia PMO shall submit the updated RP to ADB for concurrence; this is a condition for ADB award of civil works contracts.

10.2 RP Implementation Schedule

213. The general resettlement schedule of the project has been drafted based on the planned progress of road project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See details in Table 10- 1.

Table 10-1 Schedule of Land Acquisition and Resettlement Activities No. Resettlement Task Target Responsible unit Time Remark 1 Information disclosure 3 towns Haiyuan County PMO and each 1.1 Information booklet and 6 Jul 2016 town governments villages RPs need Disclosure draft RP on Implementation agency, PMO 1.2 Jul 2016 to be ADB website and ADB endorsed 2 RP and budget 2.1 Approve the draft RP and About Government, Haiyuan County budget (including CNY5.8 Jul 2016 completed PMO compensation standard) million 2.2 If any Update RP based on changes detailed design and DMS Haiyuan County PMO, Ningxia Jan Feb – from this and submit to ADB for PMO, ADB 2017 RP (as concurrence required) 3 Detailed measurement survey

No. Resettlement Task Target Responsible unit Time Remark 3.1 Detailed measurement on 6 villages Haiyuan County PMO Nov– Dec LA and HD s 2016 4 Compensation agreements 4.1 Village-level land 6 villages LRB Mar 2017 compensation agreement 4.2 6 villages Household land and 108 VCs, supervised by LRB Mar Apr 2017 compensation agreements – AHs 4.3 Household house compensation and 2 HHs Haiyuan RO Mar–Apr 2017 relocation agreements 5 Implementation of income restoration measures 5.1 Distribution land compensation to AHs May Jun 6 villages Township and VCs – and/or allocation of land (if 2017 possible) 5.2 Village-level development Dec 2016 6 villages VCs – plan Feb 2017 5.3 Income restoration through Apr 2017 Apr 108 HHs Township, VCs and labor bureau – business and employment 2018 5.4 Implementation of AP Apr 2017 108 HHs Labor bureau – training plan Apr 2018 5.5 Vulnerable groups identification and 42 Since Apr PMO and civil affairs assistance measures persons 2017 implementation 5.6 Hiring APs for employment under project during PMO, labor bureau and Jul 2017 Jul 30 APs – construction and for Contractors 2018 operations 5.7 Hiring APs for road 20 APs Haiyuan Transport Bureau Jul 2018 maintenance 6 Implementation of House Relocation 6.1 Train relevant personnel in 15 Jan Dec ADB and Ningxia PMO – ongoing Haiyuan County PMO persons 2016 6.2 Train relevant personnel in 50 Dec 2016 Haiyuan PMO and RO – county, town, and village persons Apr 2017 6.3 Payment of house Feb Mar compensation and 2 HHs Haiyuan PMO and RO – 2017 allowances 6.4 Construction of new Apr Dec 2 HHs APs – houses 2017 6.5 Move into new houses 2 HHs APs Sep 2017 7 Monitoring and evaluation 7.1 Build internal monitoring Based on Ningxia PMO and IAs Dec 2016 system RP 7.2 Engage external monitoring 1 Monitor Ningxia PMO Dec 2016 unit 7.3 Sample of Baseline survey external monitoring Feb 2017 AHs 7.4 Quarterly PMO and implementation Start Jan Internal monitoring report report agency 2017 7.5 Semi- Jul 2017 1st report External monitoring report annual External monitor Jan 2018 2nd report report rd 7.6 Annual Jan 2019 3 report External monitoring report External monitor report Jan 2020 4th report 7.7 Resettlement completion 1 Ningxia PMO and 7 county Mar 2020 report combined PMOs

No. Resettlement Task Target Responsible unit Time Remark report for the Project 8 Consultation and Participation Haiyuan PMO Ongoing records 9 Grievance records Haiyuan PMO Ongoing 10 Process of land compensation and resettlement capital flows 10.1 PMO CNY3.479 already has -To Haiyuan PMO Haiyuan County Government Jan 2017 million initial start up funds 10.2 CNY2.467 Feb Mar - To village Haiyuan PMO and RO – million 2017 10.3 CNY1.8 – Haiyuan PMO, RO and 7 village Start from Apr - To household CNY2.1 committees 2017 million 11 Start civil works 11.1 Haiyuan County project Haiyuan County PMO Jul 2017

11 Monitoring, Evaluation and Report

214. In order to ensure the successful implementation of the RP, two types of supervision modes will be applied at the same time and it will be supervised by two organizations from different channels: First, internal supervision system comprised of government departments (autonomous region, PMOs at county level with resettlement focal persons with support from Project Management System consultant) conduct supervision according to RP provisions from the perspective of public administration. Second, external supervision system comprised of sociology experts conduct evaluation and supervision through social survey.

11.1 Internal Monitoring

215. The internal resettlement monitoring agencies will include Haiyuan County PMO, Finance Bureau and other departments concerned (e.g., Land and Resources Bureau). The PMO shall develop a detailed internal monitoring plan for land acquisition and resettlement, including: (i) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (ii) Status of LA and HD and any variations for the final RP; (iii) Restoration of the household income of the APs after LA; (iv) Preparation of housing plots and relocation after HD; (v) Restoration and resettlement of women and vulnerable persons; (vi) Payment, use and availability of compensation fees for resettlement; (vii) Degree of public participation and consultation during resettlement; (viii) Resettlement training and its effectiveness; (ix) Establishment, staff training and working efficiency of resettlement management agencies; and (x) Any unexpected changes from the final RP and corrective plans prepared to deal with the changes.

216. The Ningxia PMO shall submit phase I progress sheet and an internal monitoring report to ADB. Such report shall indicate the statistics of the past months in tables, and reflect the progress of LA, resettlement and use of compensation fees. Ningxia PMO will also be responsible to prepare a resettlement completion report; this can be done in conjunction with the external monitor. This report will be submitted to ADB.

11.2 External Monitoring

217. According to ADB’s policies, the Ningxia PMO shall employ a qualified, independent and experienced resettlement institute/firm agency as the external RP M&E agency. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the Ningxia PMO and Haiyuan PMO for their review, follow-up and disclosure to APs. Ningxia PMO shall submit the external M&E report to ADB semiannually for their review, comment and disclosure on website.

11.3 Scope and methodology of external monitoring

(i) Baseline survey

218. The external M&E agency will conduct a baseline survey on the affected villages to obtain baseline data on the sample AHs’ production levels and living standard (living, production and income level). The production level and living standard sample surveys will be conducted semiannually to track variations of the APs. This survey will adopt typical sample tracking investigation, (sample size: 30% of land acquisition AHs, 100% of DHs; the sample households will be selected in form of random selection), random interview and field observation to acquire necessary information. Statistical analysis and evaluation will be made on this basis.

(ii) Periodic M&E

219. During the implementation of the RP, the external M&E agency shall conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, key informants interview, random interview and focus group discussion: (i) Payment and amount of compensation fees; (ii) Livelihood training; (iii) Support of women and the vulnerable groups; (iv) Restoration and reconstruction of infrastructure and special facilities; (v) Income restoration options and results (vi) House demolition and reconstruction; (vii) Compensation for lost property; (viii) Time table of the above mentioned activities (applicable for any time); (ix) Performance of resettlement organizations; (x) Use of collective land compensation and the income of APs; (xi) Income growth of labor through employment; and (xii) Whether the APs benefited from the project.

(iii) Public consultation and participation

220. The external M&E institute will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(iv) Grievance redress

221. The external M&E institute will visit the affected villages and groups regularly, and interviewing the township RO and county PMO that accept grievances about how grievances

have been handled. It will also meet complainants, and propose corrective measures and advice for existing issues so as to make the resettlement process more effective.

(v) External monitoring reports

222. The external M&E agency will submit a monitoring or evaluation report to the ADB and Ningxia PMO semiannually; four external monitoring will be conducted and 6 reports will be submitted in total. See Table 11-1 for external monitoring activity and report submitting time. The TOR for External M&E can be found in Annex C.

Table 11-1 Schedule of Monitoring and Evaluation No. Report Date 1 Socioeconomic baseline survey report Feb 2017 2 First monitoring report July 2017 3 Second monitoring report Jan 2018 4 First evaluation report Jan 2019 5 Second evaluation report Jan 2020

11.4 Post Evaluation and Resettlement Completion Report

223. After project implementation, the post-evaluation will be implemented to evaluate the Project’s resettlement activities on the basis of M&E to (i) confirm the RP objectives have been met and (ii) to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work.

224. Post evaluation will be led by Haiyuan PRO, with support from the Monitor. It should be started earlier when records are fresh but it can only be finalized when evaluation reports confirm satisfactory restoration.

Annexes Annex A Resettlement Information Booklet ADB LOAN PROJECT (TA-8440) NINGXIA LIUPANSHAN POVERTY REDUCTION RURAL ROAD DEVELOPMENT PROJECT FINANCED BY THE ADB

Resettlement Information Booklet for Zhengqi–Jiucai–Sikouzi Road Project of Haiyuan County of Zhongwei City in Ningxia Hui Autonomous Region

Prepared by Transportation Department of Ningxia Hui Nationality Autonomous Region July 2016

1 Project Background

1. Transportation Department of Ningxia Hui Nationality Autonomous Region grasps the opportunity of historical development, starts from eliminating the phenomenon that undeveloped traffic and infrastructure restrict the development of contiguous destitute areas in Liupanshan, and now plans to implement Liupanshan rural Road development project for poverty alleviation in Ningxia Hui Autonomous Region with the ADB loan, which includes seven subprojects, involving Xiji County, Pengyang County, Jingyuan County and Yanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City.

2. The construction of Liupanshan rural road development project for poverty alleviation in Ningxia Hui Autonomous Region (the Project) with the ADB loan mainly targets at: 1) improving the technical grade for road network project, increasing network capacity, and perfecting regional road network; 2) enhancing the connection between the project area and surrounding area, improving regional traffic condition, and promoting the economic development of the project area and region; 3) constructing seven trunk roads and 21 branches in Xiji County, Pengyang County, Jingyuan County, and Yanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City.

3. Zhengqi-Jiucai-Sikouzi Road project in Haiyuan County starts from K0+000 of Line G341 being designed at the north of Zhaike Town, passes through Zhengqi village, Satai village, Sabu village, Zhongping village, Matao village, and Yuantao village,and ends at Line S311, with right of way (ROW) of 9 m, including subgrade/pavement width of 7.5m/6.5m. It is constructed based on the standard of Class III road, with total length of 28.4 km and estimated total investment of CNY115.31 million. The total construction period is 24 months.

Wangtuan- Yuwang Road

Wanzhang- Zhengji-Jiucai- Sanying Road Sikouzi Road

Guanting-Gu Sectin of Gu- Xiji Road Jiangtai-Xitan- Pingfeng Road

Mengyuan Chunshucha– Chengyang Yangping Road

Shatang (Huanghua County)–Gaodian Road

Figure 1 Sketch Map of Rural Trunk Road Distribution

2 Project Impact

2.1 Project Impact Scope and Overview

4. The impact of land acquisition and demolition of the project involves 3 towns and 6 administrative villages.

Table 1: Towns and Administrative Villages Affected by Land Acquisition and Demolition of the Project Name of village/ neighborhood Construction content Name of town/ street committee Zhengqi village, Satai village, Sabu Zhengqi Jiucai Sikouzi Zhengqi Town , Jiucai – – village, Zhongping village, Matao village, Road Town and Lijun town and Yuantao village

2.2 Impact of Permanent Collective Land Acquisition

5. The project will permanently acquire 485 mu rural collective land of the above-mentioned areas, including farmland of 209.24 mu (43.17%), residential land of 1.6 mu (0.33%), forest land of 18.45 mu (3.81%),and unused land of 255.74 mu(52.7%).

Table 2: Permanent Acquisition of Collective Land (by affected village)

Village Permanent land acquisition (mu) committee Affected Affected Road Town /communit Residential Forest Unused HH person Farmland Subtotal y land land land

Zhengqi 5.69 0 0 7.80 13.49 4 16

Zhengq Satai 35.58 0 0 40.52 76.10 22 101 i Zhengqi Sabu 34.97 0.8 0 39.16 74.93 19 78 -Jiucai- Sikouzi Zhongping 29.50 0 0 45.67 75.17 12 55 Road Matao 51.73 0.8 0 62.09 114.62 23 128 Jiucai Yuantao 51.77 0 0 60.47 112.24 28 129

Lijun 0 0 18.45 0 18.45 0 0 Total 3 6 209.24 1.6 18.45 255.71 485 108 507 Proportion 43.14% 0.33% 3.80% 52.72% 100% \ \

2.3 Temporary Land Occupation

6. At this stage, no temporary land occupation is planned.

2.4 Analysis of Impact of Residential House Demolition

7. The residential houses involved in the demolition are rural houses of earth-wood structure of 240 m2. A total of 2 households with 12 persons are affected.

Table 3: List of Impact of Demolished Rural Residential House House demolition (m2) Affected people Number Road Town Village Brick- Earth- Makeshift Number of Subtotal of wood wood house households people Zhengqi Wangtuan- Sabu 0 120 0 120 1 7 yuwang Jiucai road Jiucai Matao 0 120 0 120 1 5 Total 0 240 0 240 2 12

2.5 Impact of Demolished Buildings of Enterprises and Public Institutions

8. No enterprises and public institutions will be affected by land acquisition and demolished.

2.6 Affected Infrastructure and Ground Ancillary Facilities

9. The subproject will affect some ground attachments and special facilities.

Table 4 Affected Ground Ancillary Facilities Item Unit Quantity Earth wall(h<2m) m 220 Brick wall(h<2m) m 60 Cistern single 5 Iron gate Single 2 Poplar(Ф<10cm) single 10 Locust tree(10cm<Ф<30cm) Single 38

3 Legal Framework and Policies and compensation rates

3.1 Policy Basis

10. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows. (i) ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement (ii) The Land Administration Law of the People’s Republic of PRC (iii) Regulations on the Protection of Basic Farmland (iv) Interim Regulations on Farmland Use Tax of the People’s Republic of PRC (v) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) (vi) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of PRC (November 3, 2004, Guotuzifa [2004] No. 238) (vii) Notice on Further Specification of the Land Type Identification of Farm Road of General Office of Ministry of Land and Resources of the People’s Republic of PRC (Guo Tu Zi Ting [2013] No. 581) (viii) Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2015] No.101)

3.2 Cut-off Date of Compensation

11. The cut-off date for the eligibility for compensation is on November 1, 2016, which is also the date of Haiyuan PMO and RO conducting resettlement DMS. Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses.

3.3 Compensation Rate for Permanent Land Acquisition

12. According to the Notice of Releasing the Compensation Standard for Land Acquisition in Ningxia Hui Autonomous Region by the People’s Government (Ning Zheng Fa [2015] No.101)(see the attachments) issued on January 1, 2016, the project is being implemented in Area II in Haiyuan County, Zhongwei city, where the compensation standard for farmland and residential land is CNY7,904 /mu.

13. The acquisition of forest land is executed by the 70% of that of farmland of the same area, the compensation standard for forest land is CNY5,532.8 /mu.

14. The acquisition of unused land is executed by the 20% of that of farmland of the same area, the compensation standard for unused land is CNY1,580.8 /mu.

15. According to the compensation policy for the same crop by the average annual output value in the first 3 years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY500 /mu.

Table 5 Compensation Standard for the Project Land Unit: CNY/mu Farmland/ Category Residential Forest land Unused land Young crops land Compensation 5,532.8 1,580.8 7,904 500 standard (70% of Farmland) (20% of Farmland)

3.4 Temporary Land Occupation

16. At this stage, no temporary land occupation is planned.

3.5 Compensation Rate for House Demolition

17. According to the policy of Asian Development Bank and regulations of the PRC, replacement cost is adopted for the rural residential houses of the RR. The compensation rate will be determined through market price, and will not be lower than the compensation base price of the RP.

Table 6 Compensation Standard for Demolition of Residential House and Ancillary Facilities Type Structure type Unit Base price Remark Residential land CNY/mu 7,904 The compensation for the Compensation house shall not be lower than Earth-wood CNY/m² 310 for house the proposed base price. relocation 1000 CNY1,000 per household for CNY/HH subsidy one time. House on collective Transition subsidy: CNY300 Subsidy for per household each month. land Other subsidy temporal Generally, and the transition for house resettlement / CNY/HH 300 period is 6 months. The transition exceeded time should be subsidy calculated in accordance with actual condition.

3.6 Compensation for Ground Attachment and Infrastructure

18. The compensation standard for the ground attachment facilities and infrastructure of the subproject is determined based on the principle of “replacement price”.

Table 7 Compensation Standard for Ground Attachments and Infrastructure Item Unit Compensation standard （CNY) Earth wall(h<2m) m 60 Brick wall(h<2m) m 20 Cistern single 800 Iron gate Single 1000 Poplar(Ф<10cm) single 28 Locust tree(10cm<Ф<30cm) Single 62

3.7 Compensation for Young Crops

19. According to the compensation policy for the same crop by the average annual output value in the first 3 years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY500 /mu.

3.8 Entitlement Matrix

20. The entitlement matrix has been established in accordance with the applicable policies.

Table 8 Compensation Entitlement and Resettlement Policy Matrix No. of Implementation Entitled Applicable entitled Compensation Compensation item Type of loss person/ targets person/ policy entitlement collective collective The village meeting will a. Pay land determine the acquisition fund using, re- compensation allocation of to the rural land, investment collectives and b. Re-allocation Land development a) Rural of farmland OR a) Three compensation project collectives payment by towns allocation: The The supervising Land within the owning affected village collectives share division authority shall project the land collectives of b) 507 APs among the approve and implementation b) cash of 108 HHs farmers losing supervise the Permanently area - road Farmers compensation losing land land is decided proposals and acquired farmland right of way with land (100%) to AHs (all with by villager requirements of (estimated as use rights losing land with land use meeting; cash village and 209.24 mu of c) user rights if rights) compensation provide farmland) Farmers land is c) no APs shall be directly convenience for renting contracted to renting the paid to training project. the land APs land individual. Those agreed c. Cash compensation compensation for individual for all the shall be paid ground according to the attachment agreement and (e.g., trees) prior to dispossession. Cash compensation for the annual loss during land loss period. The village Land a) Restore to the committee must temporarily The villagers Farmers status prior to inform the used as To be losing crops will with land the original land construction determined get total Temporary loss of use rights construction, user and make area within the during compensation land b) and maintain corresponding project construction according to the Farmers the life of APs compensation. implementation period compensation renting at the former Maximum period area or close standard the land level at least. of use is 2 by area The years. compensation standard is CNY500 /mu per year. Cash Cash Village and APs Residence and compensation compensation will determine HHs or property within 12 APs of 2 for AHs, paid to the the location of APs the project HHs. No including owners of new residence. losing implementation HH suffer residential land, housing/building The contractor Loss of buildings area or complete and housing, and shall be residence/property or affected by the loss and and attachments. responsible for housing project require attachments. The filling and due to (estimated as relocation Cash compensation leveling the area 2 demolition 240 m ) compensation for residential of new for various land shall be residence and

No. of Implementation Entitled Applicable entitled Compensation Compensation item Type of loss person/ targets person/ policy entitlement collective collective housing type paid to connect it to the according to collective and existing public the residential land facilities. replacement shall be re- cost. The allocated to the moving affected compensation households by is CNY1,000 the villages. per HH, the transitional compensation is CNY300/ month of standard subsidy, and the transitional period is 6 months. Compensation according to the Non-Farmland RP. Funds can Rural within the be used for collective 6 project Loss of non- project Cash village owning affected Village collective Farmland implementation compensation development as land villages area (estimated decided in a ownership as 275.56 mu) village committee meeting. All facilities within the Cash project compensation Proprietor Proprietor Affected public implementation Proprietor of based on the receives the of all facilities area (no all facilities market price total facilities impacts have and negotiation compensation been identified with proprietor yet) Refers to The project will the old assist the and weak, villages and women, towns in children, meeting the the demands of the disabled, 11 HHs with vulnerable In the same Any affected or those 42 persons groups, and condition, enjoy Assistance by person who is lacking belonging each household the priority of Vulnerable groups government also vulnerable living to the will receive project department ability, and vulnerable about compensation the groups CNY3,000 and assistance poverty special subsidy HHs, HHs for the lacking economic labor or recovery of the with heavy vulnerable burden groups.

4 Institutional Arrangements

21. Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, relevant departments including transportation department, department of land and resources, department of finance, etc. shall participate in and support resettlement implementation. Each affected town/township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are: (i) Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region (ii) Project Management Office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region (iii) Haiyuan County Transport Bureau (implementing agency which also has a PMO) (iv) Haiyuan County Project Resettlement Office of Poverty Relief Project with ADB Loan (v) Project town/township governments (vi) Village committees (vii) Project design institute (viii) External monitoring and evaluation agency (ix) Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau.

22. The Organizational Chart is show in Figure 2.

Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Haiyuan Transportation Bureau

Internal monitoring Project Haiyuan Project Resettlement Office design institute

Project External monitoring Village/ Community committees Community

Affected people

AH by HD AH by LA Infrastructure

Figure 2 Project Relocation Organizations

5 Resettlement Budget

23. Based on the price in 2016, the estimated resettlement costs covered by this RP were CNY5,798,043, including basic costs of CNY2,467,442. Seeing from the influence category, permanent collective land acquisition costs are CNY2,277,406, housing demolition costs are CNY80,000, compensation fees for ground attachments are CNY23,036,and compensation fees special facilities are CNY87,000.

24. Other fees include the CNY33,000 of aid foundation for vulnerable groups, CNY70,000 of resettlement plan formulation and monitoring fee, CNY2,650,506of taxes, CNY50,000 of resettlement training fee, and CNY527,095 of contingencies.

25. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals.

26. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken: (i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid when house is handed over for demolition.. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) The resettlement costs may be increased due to the increase of the compensation standards and price inflation, but the Haiyuan County Government will ensure that compensation fees are fully paid.

Local finance allocation of counterpart funds

LA Compensation Compensation fees for HD fees agreement and payment ground ancillary facilities and Infrastructure

Relevant unites or 50% of relocation individuals fees crops Fees young for Hand over/vacate APs house Direct

Resettlement subsidy Resettlement payment The balance Land Compensation fees should be paid Payment Village committee ask for before LA villager's opinions through village meetings

Figure 3 Resettlement Funds Flow of Distribution

6 Grievances and Redress

27. To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems during implementation.

28. The basic procedure of the grievance solution is: APs-Village committees- town resettlement office - Township or town government- county resettlement office-Haiyuan PMO and Ningxia PMO.

29. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. Alternatively, the villagers’ committee or the APs may directly appeal to the town resettlement office for negotiated resolution or put forward an oral or written grievance. The town resettlement office records the complaints and resolves the problems within 2 weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Haiyuan County RO or PMO. The latter will make resolution within 2 weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the Ningxia PMO for arbitration. The latter will make arbitration decision within a month.

30. If the persons are still dissatisfied with the decision of the Stage 2 or 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

31. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by the resettlement office that receives these grievances.

32. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

33. The APs may also express grievance to the external monitoring agency, who would then report it to Haiyuan County Resettlement Office, Haiyuan Land and Resource Bureau, and PMO of the Ningxia Hui Autonomous Region. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).

7 Implementation Plan of land Acquisition and Resettlement

34. The general resettlement schedule of the project has been drafted based on the planned progress of road project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress.

Table 9 Schedule of Land Acquisition and Resettlement Activities No. Resettlement Task Target Responsible unit Time Remark 1 Information disclosure 3 towns Haiyuan County PMO and each 1.1 Information booklet and 6 July 2016 town governments villages RPs need Disclosure draft RP on Implementation agency, PMO 1.2 July 2016 to be ADB website and ADB endorsed 2 RP and budget

No. Resettlement Task Target Responsible unit Time Remark 2.1 Approve the draft RP and About Government, Haiyuan County budget (including CNY5.8 July 2016 completed PMO compensation standard) million 2.2 If any Update RP based on changes detailed design and DMS Haiyuan County PMO, Ningxia Jan Feb – from this and submit to ADB for PMO, ADB 2017 RP (as concurrence required) 3 Detailed measurement survey 3.1 Detailed measurement on Nov Dec 6 villages Haiyuan County PMO – LA and HD 2016 4 Compensation agreements 4.1 Village-level land 6 villages LRB Mar 2017 compensation agreement 4.2 6 villages Household land and 108 VCs, supervised by LRB Mar Apr 2017 compensation agreements – AHs 4.3 Household house compensation and 2 HHs Haiyuan RO Mar–Apr 2017 relocation agreements 5 Implementation of income restoration measures 5.1 Distribution land compensation to AHs May Jun 6 villages Township and VCs – and/or allocation of land (if 2017 possible) 5.2 Village-level development Dec 2016 ~ 6 villages VCs plan Feb 2017 5.3 Income restoration through Apr 2017 Apr 108 HHs Township, VCs and labor bureau – business and employment 2018 5.4 Implementation of AP Apr 2017 108 HHs Labor bureau – training plan Apr 2018 5.5 Vulnerable groups identification and 42 Since Apr PMO and civil affairs assistance measures persons 2017 implementation 5.6 Hiring APs for employment under project during PMO, labor bureau and Jul 2017 Jul 30 APs – construction and for Contractors 2018 operations 5.7 Hiring APs for road 20 APs Haiyuan Transport Bureau Jul 2018 maintenance 6 Implementation of House Relocation 6.1 Train relevant personnel in 15 Jan Dec ADB and Ningxia PMO – ongoing Haiyuan County PMO persons 2016 6.2 Train relevant personnel in 50 Dec 2016 Haiyuan PMO and RO – county, town, and village persons Apr 2017 6.3 Payment of house Feb Mar compensation and 2 HHs Haiyuan PMO and RO – 2017 allowances 6.4 Construction of new Apr Dec 2 HHs APs – houses 2017 6.5 Move into new houses 2 HHs APs Sep 2017 7 Monitoring and evaluation 7.1 Build internal monitoring Based on Ningxia PMO and IAs Dec 2016 system RP 7.2 Engage external monitoring 1 Monitor Ningxia PMO Dec 2016 unit 7.3 Sample of Baseline survey external monitoring Feb 2017 AHs 7.4 Internal monitoring report Quarterly PMO and implementation Start Jan

No. Resettlement Task Target Responsible unit Time Remark report agency 2017 7.5 Semi- Jul 2017 1st report External monitoring report annual External monitor Jan 2018 2nd report report rd 7.6 Annual Jan 2019 3 report External monitoring report External monitor report Jan 2020 4th report 7.7 1 Resettlement completion combined Ningxia PMO and 7 county Mar 2020 report report for PMOs the Project 8 Consultation and Participation Haiyuan PMO Ongoing records 9 Grievance records Haiyuan PMO Ongoing 10 Process of land compensation and resettlement capital flows 10.1 PMO CNY3.479 already has -To Haiyuan PMO Haiyuan County Government Jan 2017 million initial start- up funds 10.2 CNY2.467 Feb Mar - To village Haiyuan PMO and RO – million 2017 10.3 CNY1.8 – Haiyuan PMO, RO and 7 village Start from Apr - To household CNY2.1 committees 2017 million 11 Start civil works 11.1 Haiyuan County project Haiyuan County PMO Jul 2017

8 Monitoring, Evaluation and Report

35. In order to ensure the successful implementation of the RP, two types of supervision modes will be applied at the same time and it will be supervised by two organizations from different channels: First, internal supervision system comprised of government departments (autonomous region, PMOs at county level with resettlement focal persons with support from Project Management System consultant) conduct supervision according to RP provisions from the perspective of public administration. Second, external supervision system comprised of sociology experts conduct evaluation and supervision through social survey.

36. According to ADB’s policies, the Ningxia PMO shall employ a qualified, independent and experienced resettlement institute/firm as the external RP M&E agency.

37. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the Ningxia PMO and Haiyuan PMO for their review, follow-up and disclosure to APs. Ningxia PMO shall submit the external M&E report to ADB semiannually for their review, comment and disclosure on website.

38. The external M&E agency will submit a monitoring or evaluation report to the ADB and Ningxia PMO semiannually.

Table 10 Schedule of Monitoring and Evaluation No. Report Date 1 Socioeconomic baseline survey report Feb 2017 2 First monitoring report July 2017 3 Second monitoring report Jan 2018 4 First evaluation report Jan 2019 5 Second evaluation report Jan 2020

Annex B Key Excerpts of Local Regulations

A. Key Articles of Land Administration Law of PRC, SC [2004] No.28 and MLR [2004] No.238

1. Land Administration Law of PRC (2004) and the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Project. The key provisions of the above policies are as follows:

Table A2.1: Abstract of the Land Administration Law and Relevant Policies Item Key points Index Land ownership The People's Republic of China resorts to a socialist public ownership i.e. Article 2 of the an ownership by the whole people and ownerships by collectives, of land. Land The State introduces the system of compensated use of land owned by Administration Law the of the PRC State except the land has been allocated for use by the State according to law. Application for Any unit or individual that need land for construction purposes should Articles 43 and 44 of construction land apply for the use of land owned by the State according to law; Whereas the Land occupation of land for construction purposes involves the conversion of Administration Law agricultural land into land for construction purposes, the examination and of the PRC approval procedures in this regard shall be required. All applications for land use for construction shall be accepted by the Article 17 of the administrative department in charge of land of the county government in Land a unified manner, and submitted to higher authorities level by level after Administration examination by the county government. If the acquisition or use of land Regulations o for construction involves farmland conversion, the administrative Shaanxi Province department in charge of land of the county government shall file an application, which shall be submitted to higher authorities level by level after examination by the county government. In case of acquisition or use of woodland, or acquisition or use of land in the urban planning area, the land user shall obtain the approval of the forestry and construction departments at or above the county level, and go through the construction land approval formalities as stipulated herein. The approved construction land must be used for the approved purpose and its use shall not be altered without authorization. If the change of use is necessary, Article 56 of the Land Administration Law of the PRC shall apply. Land acquisition The acquisition of basic farmland exceeding 35 hectares outside the Article 45 of the authority basic farmland, and other land exceeding 70 hectares shall be approved Land by the State Council. Acquisition of land other than prescribed in the Administration Law preceding paragraph shall be approved by the governments of provinces, of the PRC autonomous regions and municipalities and submitted to the State Council for the record The acquisition of not more than 35 hectares of cultivated land other than Article 20 of the basic farmland, and not more than 70 hectares of other land than Land cultivated land shall be approved by the provincial government. Administration Regulations o Shaanxi Province Land For the acquisition of land by the State the local governments at and acquisition above the county level shall make an announcement and organize the announcement implementation after the approval according to the legal procedures. system After the plan for land compensation and resettlement fees is finalized, related local governments shall make an announcement and hear the

Item Key points Index opinions of the rural collective economic organizations and peasants whose land has been acquired. Rural collective economic organizations shall make public to its members Articles 46, 48 and the receipts and expenditures of the land compensation fees for land 49 of the Land acquired and accept their supervision. Administration Law of the PRC Compensation In acquiring land, compensation should be made according to the original Article 47 of the rates for land purposes of the land acquired. Land acquisition Compensation fees for land acquired include land compensation fees, Administration Law resettlement fees and compensation for attachments to or green crops of the PRC on the land. The land compensation fees shall be 6-10 times the average output value of the 3 years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the 3 years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the 3 years prior Article 23 of the to the acquisition. Land Administration (1) Acquired vegetable land or irrigated land shall be compensated for at Regulations of 8-10 times the average annual output value (AAOV) of the 3 years prior Shaanxi Province to acquisition of such land, acquired irrigable land, garden land or lotus root pond at 7-9 times, acquired rain-fed farmland or non-irrigated land at 6-8 times, crop rotation land at 6 times, and pasture land or fishpond at 3-5 times; (2) Acquired newly reclaimed farmland that has been cultivated for less than 3 years shall be compensated for at twice the AAOV, and the investment in development shall be compensated for; (3) Acquired housing land, threshing ground or sunning ground shall be compensated for based on the original land type; (4) The compensation rate for allocated state-owned farm, forest farm, pasture or fishing ground shall be based on subparagraphs (1), (2) and (3) of this paragraph. The compensation rate for acquired or allocated woodland shall be as stipulated by the state. Temporary Users who use the land temporarily should use the land according to the Article 57 of the land use purposes agreed upon in the contract for the temporary use of land and Land should not build permanent structures. The term for the temporary use of Administration Law land shall not usually exceed 2 years. of the PRC If state-owned or collectively owned land is to be used temporarily for Article 31 of the project construction, geologic investigation or any other purpose, an Land Administration application shall be filed along with the application for construction land Regulations o and approved by the administrative department in charge of land; in case Shaanxi Province of separate application for temporary land use, it shall be approved by the administrative department in charge of land of the county government in case of non-cultivated land, by the administrative department in charge of land of the prefecture or municipal government in case of cultivated land, or the administrative department in charge of land of the provincial government in case of basic farmland. Temporary land use in the urban planning area shall be first approved by the municipal administrative department in charge of construction before submission for approval. The user of temporarily used land shall use the land for the approved purpose and shall not construct any permanent building thereon. The period of temporary land use shall not exceed 2 years in general.

Table A2.2: Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and their Application SC [2004] No.28—Improvement of Compensation and Resettlement Systems for Land MLR [2004] No.238 Acquisition Article 12 County-level and above local governments shall take practical measures Fixation of uniform Improvement of so that the standard of living of LEFs is not reduced by land acquisition. AAOV rates measures Land compensation, resettlement subsidy and compensation for ground Determination of compensation attachments and crops shall be paid in full and timely pursuant to law. If uniform land acquisition the land compensation and resettlement subsidy pursuant to the AAOV multiples prevailing laws and regulations are insufficient to maintain the former Fixation of integrated standard of living of the LEFs or to pay the social security expenses of land prices for land farmers who lose all land due to land acquisition, governments of acquisition areas provinces, autonomous regions and municipalities directly under the Distribution of land central government shall approve an increased resettlement subsidy. If compensation the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the LEFs, local governments may pay a subsidy from the income from compensated use of state land. Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. Article 13 Proper County-level and above local governments shall take specific measures Resettlement for resettlement of to guarantee long-term livelihoods of LEFs. agricultural LEFs For projects with a stable income, farmers may become a shareholder production using the right to use of land used for construction approved pursuant to Resettlement by law. reemployment Within the urban planning area, local governments shall bring farmers Resettlement who lose all land due to land acquisition into the urban employment by dividend system, and establish a social security system; out of the urban planning distribution Non- area, in acquiring land collectively owned by farmers, local governments local shall reserve necessary arable land or arrange appropriate jobs for LEFs resettlement within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non- local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible. Article 14 During land acquisition, the ownership of collective land of farmers and Disclosure of Improvement of the right to contracted management of farmers’ land shall be information on land land acquisition maintained. acquisition procedures Before acquisition is submitted for approval pursuant to law, the use, Confirmation of land location, compensation rate and mode of resettlement of the land to be acquisition survey acquired shall be notified to LEFs; the survey results of the present results Organization situation of the land to be acquired shall be confirmed by rural collective of land acquisition economic organizations and farmers to be affected by land acquisition; if hearing necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved matters of land acquisition shall be disclosed unless in special cases. Article 15 If the compensation and resettlement for land acquisition has not been Disclosure of Strengthening implemented, the acquired land shall not be used forcibly. approval items of Supervision over Governments of provinces, autonomous regions and municipalities land the directly under the central government shall formulate the procedures for acquisition

SC [2004] No.28—Improvement of Compensation and Resettlement Systems for Land MLR [2004] No.238 Acquisition implementation of the distribution of the land compensation within rural collective economic Payment of land acquisition organizations on the principle that the land compensation is used for compensation and rural households affected by land acquisition mainly. resettlement Rural collective economic organizations affected by land acquisition shall expenses for disclose the receipt, disbursement and allocation of land compensation land acquisition fees to their members and accept supervision. The agricultural and civil Post-approval affairs authorities shall strengthen the supervision over the allocation and supervision and use of land compensation fees within rural collective economic inspection of land organizations. acquisition

B. Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region，Ning Zheng Fa [2015] No.101

2. The various departments and organizations directly under the people’s government of the various cities, counties (districts) and autonomous regions:

3. To promote the scientific and sustained use of land resources, it was decided to publish Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region (hereinafter referred to as the new compensation standard for land acquisition) in accordance with The Law of Land Administration of the People’s Republic of China and Land Administration Regulations of Ningxia Hui Autonomous Region as well as other laws and regulations and through the deliberation of the executive meeting of the People’s Government of Ningxia Hui Autonomous Region, to be implemented from January 1, 2016. The relevant matters are notified as follows:

4. The new compensation standard for land acquisition is farmland-based. The compensation for the garden acquired shall be equal to that for farmland in the same area, that for forest land acquired shall be equal to 70% of that for farmland in the same area, that for new irrigable land (within 3 years) acquired shall be equal to 60% of that for farmland in the same area, that for artificial grassland acquired shall be equal to that for dry farmland in the same area, that for natural grassland and shrubland shall be equal to 60% of that for dry farmland in the same area, that for unused land acquired shall be equal to 20% of that for dry farmland in the same area, and that for homestead and threshing ground acquired shall be equal to that for farmland in the same area. For use of state-owned agricultural (forestry, animal husbandry) land, refer to the compensation standard for acquisition of the neighboring collective lands.

Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region(Haiyuan) Compensation Number standard for land City, county Area (city) No. of area Range of area (city) acquisition (district) No. (city) CNY/ CNY/ mu ha. Irrigable 22,974 344,610 land County planning area, Haixing I Dry Economic Development Zone 17,650 264,750 farmland

Liwang Town, Qiying Town, Sanhe Town (the area outside Haixin Economic Development Zone), Irrigable Gaoya Town, Haicheng Town, Zhongwei Haiyuan 20,786 311,790 4 2 land Haicheng Subdistrict Office (the area City County outside the county planning area), II Xi’an Town, Guanqiao Town, Jiatang Town, Shutai Town, Shidian Town, Zhengqi Town, Gancheng Town, Ganyanchi Administrative Committee, Guanzhuang Town, Dry Hongyang Town, Jiucai Town, 7,904 778,560 farmland Caowa Town, Lijun Town

C. Land Management Regulations of Ningxia Hui Autonomous Region

Land Management Regulations of Ningxia Hui Autonomous Region (Passed on the 16th Session of the Standing Committee of the 8th Ningxia Hui Autonomous Region People’s Congress)

Chapter V Construction Land Management

5. Article 46: The user should pay fees based on the following items and standards: (i) Land compensation fee: The compensation for the land acquired should be six to ten times as much as the average annual output value of the land in the first 3 years; that for forest land, artificial pasture and extensive fish pond should be six to eight times as much as the average annual output value of local farmland in the first 3 years; that for natural grassland, vacant land, abandoned land, and lake should be two to three times as much as the average annual output value of the local farmland in the first 3 years; that for unutilized land should be one to two times as much as the average annual output value of the local farmland in the first 3 years; that for residential land and threshing ground should be based on the standard for nearby farmland. Key construction projects of the state and Ningxia Autonomous Region should make minimum compensation based on the above standards. (ii) Young crop compensation fee: The compensation for common crops (including artificial grass and after-culture grass) should be in accordance with the average annual output value of local farmland in the first 3 years; that for perennial crops should be two or three times as much as the average annual output value of local

farmland in the first 3 years; no compensation will be made for the farmland without crops. (iii) Compensation for ground attachments: The specific standard is established by land administration department and price control authority as well as other relevant departments of Ningxia Hui Autonomous Region based on the local condition. And the compensation standard for large and medium-sized construction projects is established by the People’s Government of Ningxia Hui Autonomous Region.

6. In case the land compensation fees paid according to the preceding clause still fail to make the peasants to be resettled maintain their original living level, the resettlement subsidies shall be added through the approval of the People’s Government of Ningxia Hui Autonomous Region. But the sum of land compensation fees and resettlement subsidies shall not exceed 30 times of average annual output within the 3 years before the acquisition of the farmland.

7. After the competent administrative departments of land posted notices on land acquisition to the units with land to be acquired, the compensation will not be made for the rush planting of trees and crops, rush-construction of buildings structures and other facilities abandoned on the land of the units or individuals.

8. After the fees for compensation, resettlement, etc. are paid in according to the clause, the units and individuals with land to be acquired shall not have additional requests or obstruct the construction.

9. Article 47 Land compensation fees, resettlement subsidies and compensation fees for attachments that belong to collective paid by the land acquiring units shall be owned by the units with land acquired, and deposited in a special account in the bank. Then the units with land acquired shall propose resettlement scheme and plan for use of funds.

10. Article 48 In case that the personnel to be resettled of the units with land acquired is resettled by rural collective economic organization, the resettlement subsidy shall be managed and used by rural collective economic organization; in case the personnel are resettled by other units, the resettlement subsidies shall be paid to the resettlement unit; in case unified resettlement is not required, the resettlement subsidy shall be issued to resettlement personnel or to be used for the insurance fees of the personnel to be resettled after their consent. In case the resettlement subsidies are issued to resettlement personnel, the personnel shall apply for it, and then it shall be reviewed by villager committee and approved by town people’s government. After self-employment agreement is signed and notarization is made, the subsidies shall be issued by collective economic organization in one time.

Annex C Terms of Reference for External Monitoring and Evaluation Agency

A. Purpose resettlement monitoring and evaluation

1. According to ADB’s SPS 2009 on involuntary resettlement, the resettlement work of this Project will be subject to external M&E. The monitoring will ensure that the resettlement processes are being implemented in accordance with the requirements set out in Resettlement Plans (RPs). The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of the project and project-related LAR activities.

2. A TOR is drafted and a specialist with 8–10 years of relevant social and resettlement experience will be engaged by CQS method.

3. M&E reports will be submitted to ADB and the PMO of Ningxia Hui Autonomous Region Transport Department regularly twice a year during the land acquisition and resettlement (LAR) implementation period and once a year following LAR completion. Through external M&E, ADB and the EAs can fully understand if the LAR work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement.

B. Scope and Methods of External Monitoring

(i) Baseline Survey

4. The external monitor will undertake a baseline survey of the villages affected by land acquisition and house demolition of the Project, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production, and income levels). The survey methods include follow-up survey of sample households (minimum sample size: 10% of households affected by land acquisition, 20% of households affected by house demolition, 40% households significantly affected, 50% of affected villages; the households will be sampled randomly). A statistical analysis will be made on this basis for evaluation.

(ii) Regular Monitoring and Evaluation

5. During the RP implementation, the external monitor will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow- up survey of the sample households, and random interview with affected persons. The external monitor will monitor: (i) the progress of disbursement of compensation for LAR and house demolition; (ii) the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new houses, and adequacy of construction; (iii) institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training; (iv) financial capacity of the PMO and IAs, particularly the budgetary arrangements and cash flow for resettlement activities; (v) the process of public participation and consultation, ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process; (vi) the functioning of the GRM;

(vii) the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems; (viii) rehabilitation of affected shops; (ix) that the vulnerable groups are being provided support in accordance to the criteria set out in the RP; (x) the progress of restoration and reconstruction of infrastructure and special (xi) facilities; (xii) implementation schedule for the RP activities; and (xiii) the overall RP implementation process and if any significant involuntary resettlement are identified, the agency will prepare a corrective action plan to address such issues.

6. In addition, the external monitor will be responsible for verifying the internal monitoring reports of IAs on implementation and progress of the RPs. These internal monitoring reports are prepared by the IAs and the PMO as part of the quarterly progress report.

7. On the basis of the baseline survey, the external monitoring agency will evaluate the project impacts and will provide a “without” and “with” project comparative analysis.

(iii) Monitoring Indicators

8. The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RPs: (i) Progress: including preparation, implementation of land acquisition, house demolition, resettlement site construction, housing relocation and rehabilitation of livelihoods and living conditions; (ii) Quality: including resettlement implementation, civil construction quality, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction; (iii) Entitlements: timely allocation of full compensation entitlements and proper and timely use of funds, and adequate and timely availability of funds for resettlement site construction; (iv) Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.; (v) Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites; (vi) Livelihood/employment: change in livelihood (income sources) and employment, including employment rate, assistance to the different APs, especially for women, and vulnerable APs, and seriously-affected households, such as those at risk of impoverishment due to land loss or housing loss; training and skill enhancement; (vii) Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and (viii) Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people.

(iv) Monitoring and Evaluation Method

9. The external monitor will use both quantitative and qualitative methods to undertake the M&E such as:

10. Surveys – questionnaire surveys based on random sampling with a minimum sample size of 10% of households affected by land acquisition, 20% of households affected by house demolition and 50% of the affected villages. These surveys will be done on annual basis to assess the impact on yearly basis. Out of the above indicated survey population, the external monitor will select a suitable sample size and will undertake follow-up surveys by using tracer survey method. It will require following the same respondents on a yearly basis to assess the project impacts.

11. Qualitative interviews and focus group discussions – with project affected persons, village and community representatives, officials in PMO, IAs and other government departments that are involved in the resettlement process; and, along with written materials, photos, audio and video records, real objects shall also be used.

C Reporting

12. The RP monitoring report will include: 1)Summary of findings and conclusion of investigations and evaluation; 2) Major problems identified (existing and potential); 3) Recommended mitigation or prevention measures which need to be taken; and 4) Assessment of previous follow-up actions.

13. Reports will be submitted to ADB every 6 months during the resettlement implementation. After the preparation of resettlement completion reports, annual evaluations will be conducted for 2 years, or until all issues have been successfully resolved. The final evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed.

14. All reports will be provided in English and Chinese. It should be ensured that information on the progress and status on all aspects of LAR activities will be provided to the external monitor for verification, including records of grievances.

D Consultant Specifications and Inputs

15. The specialist shall have a degree in a relevant subject (sociology, anthropology, or related subject) with 8–10 years’ experience in M&E of projects funded by ADB or other international development funding agencies. The consultant’s inputs will be spread intermittently over the life of the Project for a total of 6 months.

E Monitoring Budget

16. A total budget for RP is about $150,000.