Resettlement Plan

April 2019

PRC: Liupanshan Poverty Reduction Rural Road Development Project (Haiyuan)

Prepared by the Ningxia Department of Transport for the People’s Republic of and the Asian Development Bank.

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.

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.

Updated Resettlement Plan

April 2019

Ningxia Liupanshan Poverty Reduction Rural Road Development Project

Zhengqi–Jiucai–Sikouzi Road Subproject of of City in Ningxia Hui Autonomous Region

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

CURRENCY EQUIVALENTS Currency unit – () 1.00 = $0.16243 $1.00 = 6.1565 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 DRO – Resettlement Office FS – Feasibility Study 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 M&E – Monitoring and Evaluation MOU – Memorandum of Understanding NDRC – National Development and Reform Commission PADO – Poverty Alleviation and Development office PDRC – Provincial/Autonomous Region Development and Reform Commission 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

NHAR – Ningxia Hui Autonomous Region Provincial Transport Department TRO – Township Resettlement Office HCG – Haiyuan County Government HCPMO – Haiyuan County Project Management Office

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

NOTES

In this report, "$" refers to US dollars. 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. 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.

GLOSSARY

Those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, Affected person (or - access to assets, income sources, or means of livelihoods) as a result of household) (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas Money or compensation of other kinds to which the people affected are Compensation - entitled in order to replace the lost asset, resource or income

Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to Entitlement - 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 Rebuilding housing, assets, including productive land, and public Resettlement - infrastructure in another location

Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, Resettlement Impact - subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms

A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and Resettlement Plan - evaluation

Distinct groups of people who might suffer disproportionately from Vulnerable Group - resettlement effects, as specified in this plan

CONTENTS

NOTE ON THE RP UPDATE OF HAIYUAN COMPONENT ...... I EXECUTIVE SUMMARY ...... IV 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 LAND ACQUISITION AND DEMOLITION MITIGATE MEASURES ...... 5 2 PROJECT IMPACT ...... 8

2.1 SURVEY METHOD AND PROCESS ...... 8 2.2 Data source and survey method ...... 8 2.3 PROJECT IMPACT SCOPE AND OVERVIEW ...... 9 2.4 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 10 2.5 TEMPORARY LAND OCCUPATION ...... 11 2.6 ANALYSIS OF IMPACT OF RESIDENTIAL HOUSE DEMOLITION ...... 12 2.7 IMPACT OF DEMOLISHED BUILDINGS OF ENTERPRISES AND PUBLIC INSTITUTIONS ...... 13 2.8 AFFECTED INFRASTRUCTURE AND GROUND ANCILLARY FACILITIES ...... 13 2.9 AFFECTED POPULATION ...... 13 2.9.1 Overview ...... 13 2.9.2 Affected vulnerable groups ...... 14 2.9.3 Project impact on women ...... 15 2.9.4 Affected minority population ...... 16 3 SOCIAL AND ECONOMIC PROFILE ...... 17

3.1 SOCIOECONOMIC PROFILE OF PROJECT AREA ...... 17 3.1.1 Socioeconomic profile of Zhongwei city ...... 17 3.1.2 Socioeconomic profile of Haiyuan County ...... 18 3.1.3 Socioeconomic profile of affected towns ...... 19 3.1.4 Introduction to Socioeconomic status of affected villages ...... 20 3.2 SOCIOECONOMIC PROFILE OF AFFECTED HOUSEHOLDS ...... 20 3.2.1 Sample survey ...... 20 3.2.2 Nationality and gender ...... 21 3.2.3 Age structure ...... 21 3.2.4 Education background ...... 22 3.2.5 Housing size ...... 22 3.2.6 Farmland resource ...... 22 3.2.7 Household income and expenditure ...... 23 3.2.8 Public opinion survey ...... 24 3.3 THE SOCIAL, CULTURAL AND ECONOMIC CHARACTERISTICS OF AFFECTED HUI NATIONALITY ...... 25 3.4 WOMEN’S DEVELOPMENT IN PROJECT AREA ...... 26 3.4.1 Rural women profile in project areas ...... 26 3.4.2 Women’s roles in household livelihoods ...... 27 3.4.3 Decision-making at household and community levels ...... 28 3.4.4 Women’s transport needs ...... 28 3.4.5 Project Impacts on Women ...... 29 3.4.6 Measures in RP in facilitating women’s development ...... 30 4 LEGAL FRAMEWORK AND POLICIES ...... 31

4.1 ADB'S POLICY ...... 31 4.2 THE PRC’S LAWS AND REGULATIONS ON LAND ACQUISITION AND RELOCATION ...... 31 4.3 RELEVANT POLICIES OF NINGXIA HUI AUTONOMOUS REGION AND HAIYUAN COUNTY ...... 33

4.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 34 4.5 DIFFERENCES OF ADB’S AND LOCAL POLICIES ...... 36 4.5.1 Compensation and resettlement for houses ...... 36 4.5.2 Compensation and resettlement for land ...... 38 4.5.3 Compensation and resettlement for vulnerable groups ...... 38 4.5.4 Consultation and disclosure ...... 38 4.5.5 Resettlement monitoring, evaluation and reporting ...... 38 5 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 39

5.1 RESETTLEMENT PRINCIPLES ...... 39 5.2 CUT-OFF DATE OF COMPENSATION ...... 40 5.3 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 40 5.4 TEMPORARY LAND OCCUPATION ...... 41 5.5 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 41 5.6 COMPENSATION FOR GROUND ATTACHMENT AND INFRASTRUCTURE ...... 44 5.7 COMPENSATION FOR YOUNG CROPS ...... 44 5.8 STANDARD OF OTHER COSTS ...... 44 5.9 ENTITLEMENT MATRIX ...... 45 6 INCOME RESTORATION AND HOUSING RESETTLEMENT MEASURES...... 50

6.1 IMPACT OF LAND ACQUISITION AND INCOME RESTORATION MEASURES...... 50 6.1.1 Impact of and acquisition ...... 50 6.1.2 Income restoration plan and assistance measures ...... 52 6.2 DEMOLITION AND HOUSING RESETTLEMENT PLAN ...... 57 6.2.1 House Demolition Impacts and Relocation options ...... 57 6.3 MEASURES FOR VULNERABLE GROUPS ...... 59 6.4 WOMEN’S DEVELOPMENT MEASURES ...... 60 6.5 RECOVERY PLAN OF GROUND ATTACHMENTS AND SPECIAL FACILITIES ...... 61 7 INSTITUTIONAL ARRANGEMENTS ...... 62

7.1 INSTITUTIONAL ARRANGEMENTS ...... 62 7.2 ORGANIZATIONAL RESPONSIBILITY ...... 63 7.3 STAFFING AND EQUIPMENT ...... 66 7.3.1 Staffing ...... 66 7.3.2 Equipment ...... 66 7.3.3 Organizational Training Program ...... 66 8 RESETTLEMENT BUDGET ...... 68

8.1 RESETTLEMENT BUDGET ...... 68 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCE OF FUND ...... 69 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 69 8.4 APPROVAL OF BUDGET INCREASE ...... 70 9 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 71

9.1 PUBLIC PARTICIPATION ...... 71 9.1.1 Stakeholder identification and information disclosure ...... 71 9.1.2 Participation during project preparation ...... 71 9.1.3 Participation plan during implementation ...... 76 9.1.4 Adaptation of RP based on public opinions ...... 77 9.2 GRIEVANCES AND REDRESS ...... 77 9.2.1 Grievances ...... 78 9.2.2 Grievance Procedures ...... 78 9.2.3 Grievance Redress Principle ...... 79 9.2.4 Contents and Form of Reply to Complaints ...... 79 9.2.5 Report of Grievance ...... 80 10 IMPLEMENTATION PLAN OF LAND ACQUISITION AND RESETTLEMENT ...... 81

10.1 PRINCIPLE FOR IMPLEMENTATION OF LAND ACQUISITION AND RESETTLEMENT ...... 81 10.2 RP IMPLEMENTATION SCHEDULE ...... 81 11 MONITORING, EVALUATION AND REPORT ...... 85

11.1 INTERNAL MONITORING ...... 85 11.2 EXTERNAL MONITORING ...... 85 11.3 SCOPE AND METHODOLOGY OF EXTERNAL MONITORING ...... 86 11.4 POST EVALUATION RESETTLEMENT COMPLETION REPORT ...... 87 ANNEXES ...... 88

ANNEX A RESETTLEMENT INFORMATION BOOKLET ...... 88 ANNEX B KEY EXCERPTS OF LOCAL REGULATIONS ...... 106 ANNEX C TERMS OF REFERENCE FOR EXTERNAL MONITORING AND EVALUATION AGENCY ...... 115

List of Tables Table 1-1 Basic Information of Haiyuan County Subproject ...... 5 Table 1-2 Comparison of Mitigation Results of Selected Route Line Scheme on Land Acquisition and Resettlement ...... 7 Table 2-1 Towns and Administrative Villages Affected by Land Acquisition and Demolition of the Project ...... 9 Table 2-2 Permanent Acquisition of Collective Land (by affected village) ...... 10 Table 2-3 Farmland Loss Affected by Project Land Acquisition (by affected HH) ...... 10 Table 2-4 Farmland Loss of the Households Affected by LA ...... 11 Table 2-5 Incidence of the Resident’s House Demolition ...... 12 Table 2-6 Affected Ground Ancillary Facilities ...... 13 Table 2-7 Affected Population ...... 13 Table 2-8 Basic Information of Vulnerable Groups of Haiyuan County Road Project ...... 14 Table 3-1 Socioeconomic Profile of Zhongwei City ...... 17 Table 3-2 Social and Economic Status of Haiyuan County ...... 19 Table 3-3 Social and Economic Status of Affected Towns ...... 20 Table 3-4 Socioeconomic Indicators of the Affected Villages ...... 20 Table 3-5 Sampling Proportion ...... 21 Table 3-6 Analytical Table of Income and Expenditure of Surveyed Households ...... 23 Table 3-7 Public Opinion Survey ...... 24 Table 5-1 Resettlement Principles of the Component ...... 39 Table 5-2 Compensation Standard for the Project Land Unit: CNY /mu ...... 41 Table 5-3 Compensation Standard for Demolition of Residential House and Ancillary Facilities ...... 42 Table 5-4 Cost of House by Type (per 100m²) ...... 43 Table 5-5 Compensation Standard for Ground Attachments and Infrastructure ...... 44 Table 5-6 Tax and Fee Standard of Resettlement ...... 44 Table 5-7 Compensation Entitlement and Resettlement Policy Matrix ...... 46

Table 6-1 Permanent Land Acquisition Impact ...... 51 Table 6-2 Summary Sheet of Income Restoration of the Acquired Households ...... 52 Table 6-3 Post information ...... 54 Table 6-4 Training Plan for Project Implementation ...... 56 Table 6-5 Resettlement Scheme of Houses Demolition chosen by AHs ...... 57 Table 8-1 Resettlement Budget ...... 68 Table 8-2 Resettlement Investment Plan ...... 69 Table 9-1 Public Participation during Project Preparation （Finished） ...... 74 Table 9-2 Project Public Participation Scheme ...... 76 Table 10-1 Schedule of Land Acquisition and Resettlement Activities ...... 81 Table 11-1 Schedule of Monitoring and Evaluation ...... 87

List of Figures

Figure 1-1 Sketch Map of Project Distribution ...... 3 Figure 1-2 Layout of Route Line ...... 6 Figure 3-1 Age Distribution Structure ...... 21 Figure 3-2 Distribution Structure of Education ...... 22 Figure 7-1 Project Relocation Organizations ...... 63 Figure 8-1 Resettlement Funds Flow of Distribution ...... 70 Figure 9-1 Public survey site ...... 72

Note on the RP Update of Haiyuan Component As required by ADB, it is necessary to update the RP based on the completed DMS, and the Updated RP (URP) will serve as the basis for resettlement implementation. According the detailed design, the Haiyuan County PMO and land resource bureau conducted a Detailed Measurement Survey (DMS) for Zhengqi–Jiucai–Sikouzi Road Project in September 2018. On this basis, this RP was updated. The URP mainly includes updates on resettlement impacts, compensation and resettlement policies, resettlement programs, organizational structure, resettlement budget, resettlement implementation schedule, etc. Compared with the original RP, the LAR impact in this URP increased for the following reasons: (i) the survey during the preparation period of the original RP didn’t have an accurate project red line for reference; (ii) during the DMS some unused land in the original resettlement plan was confirmed as cultivated land. The related resettlement budget also increased. It is confirmed that the principle of avoidance of involuntary resettlement impacts was applied forthis subproject and that house demolition couldn’t be avoided.

Content Original RP Updated RP difference

。K0+000 Route starts at the K0+000 Route starts at the north side of Zhaike Township and north side of Zhaike Township and the G341 Line that is being the G341 Line that is being designed. It runs along the old road designed. It runs along the old road from north to south, passing through from north to south, passing through places including Zhengqi Village, places including Zhengqi Village, Satai Village, Sabao Village, Satai Village, Sabao Village, The total length is Project design Zhongping Village, Matao Village Zhongping Village, Matao Village shortened by 0.494 km. and Yuantao village, with a total and Yuantao village, with a total length of 27.906 km, and this Route length of 27.906 km, and this Route is built according to the standard of is built according to the standard of the third-class highway, with the third-class highway, with roadbed being 7.5 meters wide and roadbed being 7.5 meters wide and the road surface being 6.5 meters the road being 6.5 meters wide. wide. The total amount of land to be acquired increased by 14.53 mu, and the number of affected households increased by 270, among which the The land to be acquired is 485.03 collective land The land to be acquired is 499.56 mu, mu, including the cultivated land of decreased by 25.17 mu, affecting 6 administrative villages in 3 209.24 mu (collective), the and state-owned land towns, with a total of 378 households residential land of 1.6 mu increased by 39.7 mu. and 1,434 people. Among the land to (collective), the forest land of 18.45 According to the field LA impact be acquired, the cultivated land mu (state-owned), and the unused investigation and public (collective) covers 427 mu, the land of 255.74 mu (collective). It opinion when updating residential land (collective) covers affects 6 administrative villages in 3 plan, the unused land in 14.41 mu, and forest land (state- towns, with a total of 108 households the original resettlement owned) covers 58.15 mu. and 507 people. plan was confirmed as cultivated land. Therefore, the number of households affected by land acquisition has been increased accordingly.

I Content Original RP Updated RP difference The house demolition area increased by 1984.14 m2, the number of affected households increased by 16, and the abandoned storage room of village to be demolished increased. The house demolition area is The original immigration The house demolition area is 240m2, 2,244.14 m2, affecting 18 plan is based on the HD impact affecting 2 households and 12 households, 74 people, and the feasibility study and is people. abandoned storage room of village not accurate enough. (42 m2). The updated immigration plan is based on the construction drawing design, which is very accurate and supplements the omissions in the feasibility study. The land acquisition compensation standard of farmland and residential land Policies and in this project is 7904 CNY/mu; the forest land compensation standard is No change rates for LA 5532.8 CNY/mu. The crops compensation is 500 CNY/mu.

Housing compensation standard: Housing compensation standard: 640 600 CNY/m2 for brick and timer CNY/m2 for brick and timer structure structure house, 310 CNY/m2 for house, 480 CNY/m2 for earth wood The compensation earth wood structure. structure. standard for brick and Other compensation costs include Other compensation costs include timer structure has 1000 CNY per household for 1000 CNY per household for Policies and increased 40 CNY/m2 demolition cost and 300 CNY per demolition cost and 300 CNY per and compensation rates for HD month for the transitional month for the transitional standard for earth wood compensation. The transition period compensation. The transition period structure has increased generally shall not exceed 6 months, generally shall not exceed 6 months, 140 CNY/m2. and the reasonable exceeding of the and the reasonable exceeding of the transition period shall be calculated transition period shall be calculated on the basis of actual conditions. on the basis of actual conditions. Livelihood The LA impact is limited, and cash compensation will be adopted. No change restoration HD Available options include monetary compensation or decentralized resettlement resettlement. Relocatees will rebuild houses on their own vacant residential No change programs land at their wills. Some unused land in the original RP was identified as dry land when updating RP, so the land expropriation cost and taxes related to the farmland expropriation have increased by about 4.18 million CNY. In addition, Resettlement CNY 5,798,043 CNY 11,984,359 because of the cost increased area of house demolition compared with that of the original RP, the cost of housing demolition has increased by about 1.4 million CNY. The increase in basic costs has led to an increase in unexpected expenses

II Content Original RP Updated RP difference of about 540,000 CNY accordingly. Commencement date Civil engineering plan is scheduled Implementation Civil engineering plan is scheduled to of the civil engineering to start in July 2017 with a two-year start from July, 2019. plan is delayed by 24 schedule construction period. months. Source: DMS results.

III 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 subgrade/pavement width of 7.5m/ 6.5m. It is constructed based on the standard of tertiary road, with total length of 27.906 km and estimated total money of CNY 115.3063 million. E2. LAND ACQUISITION AND RESETTLEMENT SCOPE 2. The land acquisition and resettlement (LAR) will affect six administrative villages of 3 towns. 3. The land acquisition of the project involves 499.56 mu of land, in which, the area of permanent acquisition of collective land is 441.41 mu, including farmland 427 mu and residential land 14.41 mu. It covers 58.15 mu of state land which is forest land and administrated by Lijun Township Government and does not belong to the village collective. 4. The households demolished area of the project is 2182.14 m2, including 1974.14 m2 of houses in brick and timber structure, and 250 m2 of houses in civil engineering structure. 18 households with 74 people. 5. No enterprises or shops are involved in the acquisition and demolition. In addition, scattered trees, poles, tombs, water wells, a storage room abandoned by the village collectives of Matao Village of Jiucai Township (42 m2) and other ground ancillary facilities will be affected. 6. 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 will not be affected by negatively by the subproject; on the contrary, the subproject will improve the local transport condition, so Hui people all support the rapid subproject. E3. RESETTLEMENT PRINCIPLES AND ENTITLEMENTS 7. The Updated Resettlement Plan (URP) 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 ADB’s Safeguards Policy Statement (SPS 2009). The objective of the URP is to ensure the affected production and infrastructure is recovered, affected labor forces are reemployed, and the income and life affected persons (APs) are improved or at least restored to the pre-project (physical and/or economic) levels. E4. COMPENSATION STANDARDS

IV 8. The resettlement policy 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. 9. The compensation standard for farmland and Residential land acquisition is CNY 7,904 /mu in Zhengqi Town, Jiucai Town and Liju Town in Haiyuan County. 10. The compensation standard for Forest land is CNY 5,538.8 /mu, accounting for 70% of that for farmland in the area. 11. Based on the policy that the compensation for common crops (including artificial grass) should be compensated in accordance with their average annual output value in the first three years, the compensation fee for young crops is determined to be CNY500 /mu. 12. According to the ADB policies and national provisions, price evaluation is adopted for rural residents’ housing and the compensation standard for house demolition is set according to replacement cost. The compensation price will be determined through the evaluation on market price and will not be lower than the base price stipulated in this plan, which is in accordance with the compensation price proposed in the Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, (Hai Zheng Fa 〔2016〕No. 69),and will increase appropriately and be close to the evaluated price of housing market in similar regions in 2018. The compensation standards for house structures are set according to replacement cost which are CNY 600 per m² for brick and wood housing and CNY 480 per m² for earth-wood structures. 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. 13. Compensation for land acquisition, residential housing, and other attachments will be paid to the affected villages and APs respectively. E5. RESETTLEMENT AND LIVELIHOOD REHABILITATION 14. Among the 378 households affected by LA, the average farmland loss rate for 347 households is less than 5%, and that of the remaining 31 households is between 5% and 10%. No AHs will lose more than 10% of their land. 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%,

V 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 livelihood standards of the affected households. To minimize the resettlement impacts to APs and restore their living standards, a rehabilitation plan has been developed and included in this URP. The comprehensive compensation package that will be used by the affected peoples, which includes expanding cash crop plantation, improving existing low yield cash crops and land rental to expand agricultural plantation, will help 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. 15. For physically displaced households (i.e., house demolition), three 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 options include: 16. (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. 17. (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. The villagers committees arrange Residential lands within their town to relocate the APs and the resettlement place is before the project is constructed. 18. (iii) Policy on resettlement on site: As the average residential land area of AHs was more than 2 mu before the project and only a small part of them were affected by land acquisition and house demolition, the AHs can rebuild a house within the scope of their remaining residential land after the demolition of buildings. The compensation covers compensation for residential land and compensation for housing. E6. PUBLIC PARTICIPATION AND GRIEVANCE 19. From March to April 2016, two social economic investigations and ten public opinion consultation activities guided by technical assistance consulting experts, were carried out by the project design agency and Survey Group of Keshe Business Information Consulting Company with the APs (with the participation of 40% women). A supplementary investigation was carried out during the updating resettlement plan in September 2018. The PMO, implementing agency, affected villages, towns/townships, and APs have been consulted on land acquisition and resettlement of the subproject. The issues raised include

VI compensation scheme, resettlement plan, fees payment; economic recovery, resettlement site and procedures and their concerns and comments have been integrated into the URP. Further consultations will be held during the implementation of the URP. 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 people can also lodge a complaint to the external monitoring and evaluation agency. E7. INSTITUTIONAL ARRANGEMENT 20. Transportation Department of Ningxia Hui Nationality Autonomous Region is the organization responsible for the implementation of the URP, supervising and checking the payment and use of land acquisition, demolition, and resettlement fees, formulating land acquisition and demolition reports, and providing training for personnel of the project implementing agency. 21. 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. Haiyuan County Resettlement Office 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 County Resettlement Office 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 implementation. E8. RESETTLEMENT IMPLEMENTATION SCHEDULE 22. 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 is signed. It is scheduled that land acquisition and housing demolition will be started in April 2019 and completed in June 2019. However, rehabilitation of production and residence allocation may take longer to complete. Ningxia PMO has agreed to a set of supervision plan with ADB to ensure timely and effective implementation of the resettlement work. E9. RESETTLEMENT COST 23. The resettlement costs are budgeted in the project. According to the price in 2018, the resettlement costs total CNY 11,984,359, including basic fees of CNY 5,271,934. In terms

VII of impact category, the fee for permanently acquired collective land is CNY 3,702,405; housing demolition compensation costs are CNY 1,433,850; compensation fee for ground attachments is CNY48,680; compensation fee for special facilities is CNY87,000. Other fees include the CNY 70,000 of resettlement plan formulation and monitoring fee, CNY 5,408,937 of taxes, CNY 60,000 of resettlement training fee, and CNY 1,089,487 of contingencies. E10. MONITORING AND EVALUATION 24. To ensure the land acquisition and resettlement work is implemented smoothly as planned, two supervision modes are adopted by two institutions. Firstly, internal supervision system composed of governmental departments (autonomous region and county PMO) conducts supervision based on URP clauses from the perspective of administrative management. Secondly, Ningxia PMO has engaged an independent external resettlement monitoring institute to undertake external monitoring of the RP implementation. A baseline study has been conducted and the first monitoring report has been submitted. 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.

VIII

1 Project Overview

1.1 Project Background 1. The Ningxia Hui Autonomous Region is one of the most underdeveloped provinces/regions in PRC. In 2017, its per capita GDP is CNY 50,659.7, per capita income of urban residents is CNY 29,472, and per capita income of rural residents is CNY 10,738, respectively accounted for about 81.04％, 81.7％, and 79.9％ of the national average values, ranking 29th, 25th, 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 in the mountain areas of Southern Ningxia, including City (, , , Jingyuan County, and Yuanzhou District), as well as Haiyuan County in Zhongwei City and Wuzhong City ( and ), which are collectively known as the “” 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, zhou 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 characterized 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, and the poor transport infrastructure has become the most serious problem 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 the PRC’s 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 plans to implement Liupanshan

1 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 targets: 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 Yuanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. 6. As required by ADB, resettlement plans were 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 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 project. The project starts from K0+000 of Line G341 being designed at the north of Zhaike Town, and ends at Line S311, with subgrade/pavement width of 7.5m/ 6.5m. It is constructed based on the standard of tertiary road, with total length of 28.4km and estimated total investment of CNY 115.3063 million.

2

Figure 1-1 Sketch Map of Project Distribution

1.2 Overview of Project Preparation 9. The project is funded by the Asian Development Bank and NHAR Transport Department. Before engineering implementation, this resettlement plan was formulated in accordance with the standards and requirements for loan financing project.

3 10. On February 24-26, 2015, ADB Project Launch Delegation (hereinafter referred to as “Launch Delegation”) visited , and determined the content, principle and requirement of project resettlement plan. “Launch Delegation” and Transportation Department of Ningxia Hui Nationality Autonomous Region (implementing agency) confirmed that, resettlement plan contained the following content: Taking six project implementation counties and districts as unit, the resettlement plan for six independent trunk roads and branches should be formulated. Resettlement plans have been developed for each country/district required trunk road and branch. 11. On the basis of the task above, Transportation Department of Ningxia Hui Nationality Autonomous Region authorized the consultants and experts from Shaanxi Keshe Business Information Consulting Company to formulate the RP for trunk roads and branch construction. There are four sources for critical data and information in RP: a. Feasibility study report and preliminary design of the project, preliminary demographic census results, and relevant government documents; b. Relevant information of functional department, such as, policy document, work summary and statistical data; c. Information of the affected villages and towns and village collectives, such as basic information and statistical report; d. Information from consultations, focus group discussion (FGDs), interview and household (HH) questionnaire survey. In September 2018, a total of 6 key informant interviews, 4 FGDs and 2 consultation workshops have been held with women, the poor, the elderly and village representatives in the project area 1.3 Subprojects in Haiyuan County 12. 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 Line S311,with subgrade/pavement width of 7.5m/ 6.5m. (with k0+000-k21+000 old road subgrade/pavement width of 7m/6m, the rest old road subgrade/pavement width of 7.5m/6.5m.) 13. It will be constructed based on the standard of Class III road, with total length of 28.4km and estimated total investment of CNY 115.3063 million. It will be started in 2018, and completed in 2020, and the total construction period is 24 months. (See Table 1-1)

4 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 Town and Lijun town), Zhaike Town, passes through 6 administrative Zhengqi village ,Satai villages (Zhengqi village,Sabu village, village ,Satai Zhongping village,Matao village,Sabu village, Zhengqi- village ,and Yuantao Adopt class Zhongping Jiucai- Road village,and ends at Line S311, III Road village,Matao Sikouzi reconstruction with subgrade/pavement width technology village ,and Yuantao of 7.5m/ 6.5m. It will be standard Road village). There are constructed based on the 3,352 household standard of tertiary road, with 14,593 persons in the total length of 27.906km and 6 administrative estimated total money of CNY villages, including 115.3063 million. The total 5660 impoverished construction period is 24 people. months. Data source: project detailed design report and DMS in September 2018 1.4 Land Acquisition and Demolition Mitigate Measures 14. 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: • Avoid cultural landscape (including temples and other religious activity sites) and key culture relics protection units. • Avoid or try to reduce the existing or planned residential area. • Avoid or try to reduce environmentally sensitive areas. • Avoid/minimize house demolition and relocation. • Avoid/minimize use of good farmland. • Avoid/minimize ground attachments. 15. In fact, at design stage of the project, two construction schemes or more were prepared for each road project, 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. 5 An example of scheme selection: K0+400-K1+000 16. 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 are problems of superelevation and joining of vertical section and cross section, which will cause difficulties in driving a vehicle. Furthermore, 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 is 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. 17. After examination on the spot, we 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 1.25km 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 bealock 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. Comparison:

Line A in blue; Line K in red Figure 1-2 Layout of Route Line 18. 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:

6 compared to Line K, the total length is increased by 540.41m, earthwork increased by 1,433,850m3, another 37mu land shall be acquired and the cost will be CNY 16,000,000 more, one household shall be demolished, and what’s more, bridge construction will bring difficulties to the project construction. 19. 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 8.0m, and there’s the problem of deep cut slope on right side. The line requires land acquisition of 0.8mu, and no housing shall be demolished. 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.

Table 1-2 Comparison of Mitigation Results of Selected Route Line Scheme on Land Acquisition and Resettlement Selected scheme and the Line A Line K mitigation result of resettlement Select No. Project Resettlement Resettlement ed Scheme Scheme Result of resettlement impact mpact schem e Involving land Involving acquisition of Zhengqi- land Land acquisition K0+385- 37mu, one Jiucai- K0+400- acquisition of decreased by 36.2mu, 1 K1+740.4 house Line K Sikouzi K1+200 0.8mu, and and area of demolishing 1 demolishing Highway no decreased by 300m2 with the area of demolishing 300m2 Data source: Detailed design report.

7 2 Project Impact

2.1 Survey Method and Process 20. Feasibility study design of the Project was approved on July 29, 2016. The preliminary design was approved on January 25, 2018, and the construction drawing design (detailed design) was approved on March 23, 2018.The original resettlement plan is updated according to the detailed design, and the updated resettlement plan shall be submitted to ADB for approval prior to contract awards. 21. In September 2018, consultant experts from Shaanxi Keshe Business Information Consulting Company updated the original resettlement plan according to the DMS conducted by Haiyuan County PMO and land resource bureau in the same month. The work includes the confirmation of implementation range of the project and the influence of land acquisition and house demolition, public consultation for the resettlement compensation policy for affected people and updating the resettlement compensation scheme of the project. In addition, the evaluation for the newly occurred influence of land acquisition and house demolition and the resettlement compensation to be implemented was also carried out. The sample survey of social economic development level in the affected areas was also conducted. The investigation villages generally covered 2 towns and 6 administrative villages involved in Haiyuan sub-project. The four sample villages are Satai village, Sabao village and Zhongping village of Zhengqi Town, and Matao village of Jiucai Town, which accounted for 66.7% of the total number of affected villages. There were 155 affected households in the sample households, accounting 51% of the total number of 301 affected households in the sample villages. Four group interviews were conducted. In March 2019, verification and investigation of affected areas involved in Haiyuan project were carried out again, and the impact of partial land acquisition and house demolition was verified. 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, the Updated Resettlement Plan for this project was compiled. 2.2 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 included two aspects: 23. A) Document and literature review and information collection. Collection of project information and relevant survey material and statistical material provided by relevant local government departments and project implementing agencies.

8 24. B) Field measurement and data collection, supplemented by symposium, direct exchange with relevant interest groups, etc. to further verify material and data. 25. Survey on land acquisition: After the land acquisition scope was determined by construction drawing 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. 26. Survey on the affected population: The land acquisition scope was determined by feasibility study report, preliminary design and sampling survey was conducted for the affected population, including ethnicity, age, educational background, employment status, etc. 27. 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 houses and ancillary facilities, documented ownership, categorized structure types and size. 28. Survey on scattered trees: The scattered trees within the impact scope of the acquisition land were checked on site so as to distinguish fruit trees from other trees. Numbers and varieties were recorded. 29. 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. 2.3 Project Impact Scope and Overview 30. The impact of land acquisition and demolition of the project involves 3 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 September 2018 31. The impact of land acquisition and demolition of the project involves 3 towns and 6 administrative villages. The subproject includes 441.41 mu of collective-owned land acquisition, affecting 378 households with 1434 persons. The subproject will also include 2182.14m2 of rural houses demolition, in which, 1974.14m2 are wood-brick structure, 250m2 are earth-wood structure. 18 households and 74 persons in total will be affected by house

9 demolition, who are also affected by the land acquisition. Therefore, 378 households and 1434 persons in total will be affected by the subproject. Up to now, the subproject does not involve temporary land occupation, and no enterprises and shops will be affected by land acquisition and house demolition either. In addition, some ground attachment, such as scattered trees, poles, wire etc. will also be affected by the subproject. 2.4 Impact of Permanent Collective Land Acquisition 32. The project will permanently acquire 441.41 mu rural collective land of the above- mentioned areas, including 427 mu (96.74%) of farmland, 14.41 mu (3.26%) of residential land. See Table 2-2 for reference. Table 2-2 Permanent Acquisition of Collective Land (by affected village)

Village Permanent land acquisition (mu) Road Town committee/ Residential Forest Unused AH AP Farmland Subtotal community land land land Zhengqi 3.48 0 0 0 3.48 7 30 Zheng Satai 63.94 0 0 0 63.94 63 231 Zhengq qi i- Sabu 115.1 6.73 0 0 121.83 107 425 Jiucai- Zhongping 27.76 1.35 0 0 29.11 28 96 Sikouzi Matao 133.84 4.68 0 0 138.52 103 410 Road Jiucai Yuantao 82.88 1.65 0 0 84.53 70 242 Lijun 0 0 0 0 0 143 Total 3 6 427 14.41 0 0 441.41 378 4 Proportion 96.74% 3.26% 0 0% 100% \ \ Data source: social-economic survey and DMS in September 2018 33. In the field investigation of updating plan, some villagers put forward that there was scattered planting crops in the unused land in the original resettlement plan, and they had been planting on these lands for many years. They argued that these unused lands shall be compensated as cultivated land. After field survey and consultation, the project office identified most of the unused land in the original resettlement plan as cultivated land. Therefore, the number of affected cultivated land largely increased, and the land acquisition affected households also increased accordingly. Table 2-3 Farmland Loss Affected by Project Land Acquisition (by affected HH)

Before land acquisition After land acquisition Per No. of Village Affected No. Per household HH Farmland Farmland village of Farmland household Farmland Road Town affected loss loss HH Farmland loss by LA rate % rate % Village (HH) (mu) (mu/HH) (HH) (mu) % % name Zhengqi 982 39000 39.71 7 3.48 0.01 1.25 Zhengqi- Jiucai-Sikouzi Zhengqi Satai 689 31000 44.99 63 63.94 0.21 2.26 Road Sabu 506 28000 55.34 107 115.1 0.41 1.94

10 Before land acquisition After land acquisition Per No. of Village Affected No. Per household HH Farmland Farmland village of Farmland household Farmland Road Town affected loss loss HH Farmland loss by LA rate % rate % Village (HH) (mu) (mu/HH) (HH) (mu) % % name Zhongping 563 35000 62.17 28 27.76 0.08 1.59 Matao 222 13000 58.56 103 133.84 1.03 2.22 Jiucai Yuantao 406 17000 41.87 70 82.88 0.49 2.83 TOTAL 3352 163000 48.63 378 427 0.26 2.32 Data source: social-economic survey and DMS in September 2018

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 7 0 0

Satai 60 3 0 Zhengqi Zhengqi-Jiucai- Sabu 99 8 0 Sikouzi Road Zhongping 28 0 0

Matao 92 11 0 Jiucai Yuantao 61 9 0 TOTAL 347 31 0 Data source: social-economic survey and DMS in September 2018

34. Tables 2-3 and 2-4 show that, a total of 378 households are affected by farmland acquisition of this project, 347 households’ farmland loss rate is less than 5%, 31 households’ farmland loss rate is 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 0.26%. This is because the impacts are linear and the average farmland holdings are large, which is common in poverty areas with poor quality land. For Yuantao Village, which has the highest farmland loss rate, its farmland loss rate per households is only 2.32%. Among the 378 households affected by farmland loss, the farmland loss rate per household does not exceed 10%, the range is 0.81%~6.65%. Thus the land acquisition of this project has no significant effect on the households affected by the land acquisition from the perspective of both affected villages and affected households. 2.5 Temporary Land Occupation 35. At this stage, no temporary land occupation is planned.

11 2.6 Analysis of Impact of Residential House Demolition 36. The residential houses involved in the demolition are rural houses, 2182.14 m2 houses will be demolished, of which, 1974.14m2 are wood-brick structure, and 250m2 are earth-wood structure. 18 households and 74 persons in total are affected, who are also affected by the land acquisition, see Table 2-5 for detailed information of land acquisition and house demolition. The total original house area is 3388 m2 and half of AHs will lose part of their houses but not need to relocate, for example, kitchen, storage room, toilet, etc. All AHs will be compensated and settled appropriately after the land acquisition and house demolition. See Chapter 6 for the resettlement measures. Table 2-5 House Demolition Impact Analysis

Original Fully House demolition impact house demoliti N Town Village Name (m2) on or o. Earth-wood Brick Total not? house (m2) house (m2) (m2) (Y/N) Zheng 1 Sabu Sayanbiao 46.83 0 46.83 168 N qi Zheng 2 Sabu Sayanlin 117.37 117.37 210 N qi Zheng 3 Sabu Sazhannong 46.83 0 46.83 140 N qi Zheng 4 Sabu Sazhanshan 89.56 89.56 180 N qi Zheng 5 Sabu Sazhanyong 111.03 111.03 200 N qi Zheng 6 Sabu Yangrucang 119.43 119.43 120 N qi Zheng 7 Sabu Yangrujun 41.36 100.05 141.41 141.41 Y qi Zheng 8 Sabu Majinlu 142.35 142.35 142.35 Y qi Zheng 9 Sabu Mazhigui 79.32 79.32 180 N qi

Zheng 10 Sabu Yangwansheng 144 144 144 Y qi

Zheng Zhongpi 11 Mazhicheng 42.37 166.26 208.63 208.63 Y qi ng

12 Jiucai Matao Libinglin 32.24 69.06 101.3 210 N

13 Jiucai Matao Licheng 154.28 154.28 154.28 Y

14 Jiucai Matao Majinhai 148.72 148.72 148.72 Y

15 Jiucai Matao Majinrong 106.71 106.71 210 N

16 Jiucai Matao Qinyuhe 139.74 139.74 139.74 Y

17 Jiucai Matao Qinyucang 28.99 28.99 180 N

18 Jiucai Yuantao Yangzhicang 40.37 214.48 254.85 254.85 Y

12 Original Fully House demolition impact house demoliti N Town Village Name (m2) on or o. Earth-wood Brick Total not? house (m2) house (m2) (m2) (Y/N) 3388 Total 250 1932.14 2182.14

Data source: social-economic survey and DMS in September 2018

2.7 Impact of Demolished Buildings of Enterprises and Public Institutions 37. No enterprises and public institutions will be affected by land acquisition and demolished.

2.8 Affected Infrastructure and Ground Ancillary Facilities 38. The project will affect water cellar, tombs, trees, abandoned storage room of Matao Village of Jiucai Town and other categories. See Table 2-6 for details. Table 2-6 Affected Ground Ancillary Facilities

Item Unit Quantity

Earth wall(h<2m) m 140

Water cellar m 30 Tomb single 8 Barn m2 145

Poplar (Ф<10cm) single 137

Willow (Ф<10cm) Single 38

Fruit tree(Ф<15cm) Single 45

Storage room m2 42 Data source: social-economic survey and DMS in September 2018 2.9 Affected Population 2.9.1 Overview 39. A total of 378 households with 1434 persons are affected, including 18 households with 74 persons affected by both land acquisition and house demolition. No enterprise and public institution will be 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 Township Jiucai Township Household Person Household Person Household Person

1 Land acquisition impact 205 782 173 652 378 1434

13 2 Demolition impact 11 44 7 30 18 74

Total 205 782 173 652 378 1434 Data source: social-economic survey and DMS in September 2018

2.9.2 Affected vulnerable groups 40. The vulnerable groups affected by the project include elderly people who live alone with no other supporting family members, women-headed families, orphans, the disabled, low income and poverty families, etc. A total of 28 vulnerable households (VH) with 159 people affected by the project, among them, 17 VHs will be affected by both land acquisition and house demolition, the other 11 VHs will be only affected by land acquisition. See Table 2-8 for the definition standard of vulnerable groups.

Table 2-8 Basic Information of Vulnerable Groups of Haiyuan County Road Project

Haiyuan County Type Definition standard (household)

Family with women as primary labors, without young and middle- Women-headed household 2 aged men labors (18-55 years old) The elderly over 60 years old without children, relatives and other Elderly family 5 supporting members Family with the members identified according to national standard The disabled family 6 of level I or level II disabled

Family with member losing work capacity due to disease or in need Family with long-term patients 12 of long-term medical care

Other poverty households 3 Total 28 Note: Double counting has been excluded in the subtotal and total. According to the minimize living security standard (MLSS1) of Haiyuan County ,28 vulnerable households all belong to low income and poverty households. Data source: social-economic survey and DMS in September 2018 41. According to the survey, the reasons for poverty mainly include: (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 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.

1 The MLSS means the annual income per capital of the household is less than CNY 3,150. 14 42. The VHs live in mountainous areas, with harsh natural conditions and especially the extreme lack of water resources. The average annual agriculture output value (AAOV) of the cultivated land is low and the loss rate of cultivated land acquisition of vulnerable groups is small. Therefore, the impact of cultivated land loss has a small impact on the affected vulnerable groups. See Section 6.1 for specific analysis. 43. All of the VHs affected by house demolition have enough residential land to rebuild houses. The average residential land area of VH is more than 2 mu before the project and only a small number of them will be affected by land acquisition and house demolition, the VHs can rebuild a house within the scope of their remaining residential land after the demolition of buildings. According to the social-economic survey of sample households, the living and production environment of the project area is very bad now and the existing roads are in bad condition. The VHs were willing to move out or improve their living environment through this project. In addition, the house demolition compensation standard stated in the resettlement plan is enough for the affected vulnerable groups to rebuild houses with the same structure and area. See Chapter 6 for specific description. 44. Haiyuan County People’s Government is the implementation agency in this project. The 28 vulnerable households affected by this project will be included in the poverty alleviation plan and the range of “targeted poverty alleviation” programmes of Haiyuan County Government, and enjoy the support and preferential policies implemented by the county government (see Chapter 6 for specific measures)。 2.9.3 Project impact on women 45. A total of 638 (accounting for 44.5% of the total persons affected) APs 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 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 markets, go to school and travel to clinic and other social service facilities. Travel will be safer, easier, and smoother. 46. 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 labor income.

15 2.8.4 Affected minority population 47. The project implementation area is a Hui people concentrated area. The affected population is Hui. Since the project is mainly the reconstruction an existing old road, the lifestyles and customs of the local Hui people will not be affected negatively by 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).

16 3 Social and Economic Profile

3.1 Socioeconomic Profile of Project Area 48. The subproject is located in Haiyuan County of Zhongwei city and impacts 3 towns and 6 administrative villages.

3.1.1 Socioeconomic profile of Zhongwei city 49. Zhongwei City is in the central west of Ningxia Hui Autonomous Region. At the intersection of Ningxia, and , 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 , Yingjili County and Yingli County in the regime, and Yingli County in Yan Dynasty. The land is fertile and products are abundant, thus it has long been known as “Ningxia is the richest along , while Zhongwei is the richest in Ningxia”. The irrigation districts along Yellow River in Zhongwei City cover 1,110,000mu land, so it is a major base of commodity grain, aquatic products and greenhouse vegetable. Within the city, and there are also numerous mineral resources with abundant reserves, including coal, gypsum, silica, clay, limestone, gold, silver, copper, iron, etc., totaling 20 kinds. 50. Zhongwei City governs , and Haiyuan County, which has a total of 40 towns and townships, 442 villages and 32 community resident committees, and covers a total area of 17,000km2. 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. 51. In 2017, GDP of Zhongwei city reached up to CNY 37.4 billion. Primary industry completed value added of CNY 5.282 billion, and that of secondary industry reached up to CNY 16.716 billion, and of tertiary industry was CNY 15.416 billion. The three industries structure ratio was 14.1:44.7:41.2. The permanent resident population is 1.1575 million, urban per capita disposable income was CNY 25,344; rural per capita disposable income reached up to CNY 9365. Table 3-1 Socioeconomic Profile of Zhongwei City No. Item Unit Zhongwei

1 Land area km² 23,529

17 No. Item Unit Zhongwei

1.1 Farmland area 10,000mu 2,699

2 Population 10,000 person 115.75

2.1 Agricultural population 10,000 person 70.1

2.2 Non-agriculture population 10,000 person 45.65

3 GDP CNY 100 million 374

3.1 Primary industry CNY 100 million 52.85

3.2 Secondary industry CNY 100 million 167.26

3.3 Tertiary industry CNY 100 million 154.16

3.4 Per capita GDP CNY /person 32,375

4 Urban per capita disposable income CNY /person 25,344

5 Rural per capita net income CNY /person 9,365 Source: 2017 Zhongwei city statistics yearbook 3.1.2 Socioeconomic profile of Haiyuan County

52. In the middle south area of Ningxia, Haiyuan County is in the arid zone, 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. 53. In 2017, the county achieved a regional GDP of CNY 5.237 billion, Year-on-year increased by 6.1%. The primary industry achieved value added of CNY 1.186 billion; the secondary and tertiary industries completed value added of CNY 1.779 billion and CNY 2.272 billion, and the proportion among primary, secondary and tertiary industry reached 22.6:34.0:43.4. The permanent resident population of the county is 398400, urban per capita disposal income amounted to CNY 22,346; rural per capital disposable income was CNY 7,658.

18 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 Resident population 10,000 person 39.84 2.1 Agricultural population 10,000 person 35.28 2.2 Non-agricultural population 10,000 person 4.56 2.2 Population density Person/km² 56 3 GDP CNY 100 million 52.37 3.1 Primary industry CNY 100 million 11.86 3.1.1 Proportion in GDP % 22.6 3.2 Secondary industry CNY 100 million 17.79 3.2.1 Proportion in GDP % 34.0 3.3 Tertiary industry CNY 100 million 22.72 3.3.1 Proportion in GDP % 43.4 3.4 Per capita GDP CNY /person 13145 4 Urban per capita disposable income CNY /person 22346 5 Rural per capita net income CNY /person 7658 ① Floating population refers to that work at a place for more than 6 months with residence registration in other regions. ② In traditional urban population, non-agricultural population refers to those with the residence registration in urban area, excluding influx of population. In current statistical yearbook, the actual urban population is larger than non-agricultural population. Source: 2017 statistical yearbook of Haiyuan County

3.1.3 Socioeconomic profile of affected towns 54. The subproject affects three towns in Haiyuan County. In the 3 towns, the average population is 3.88 per household, per capita farmland is 11.02mu, and per capita income is CNY 5,200~6,900. The conventional agricultural crops in the affected villages are corn, wheat, etc. According to survey, the affected villages are mainly along the road under construction and located in mountain area. The villagers mainly rely on migrant work, animal breeding and farming. The income of migrant workers accounted for the highest proportion of total income.

19 Table 3-3 Social and Economic Status of Affected Towns Rural Averag per Numbe Popula e Per Land Labor capita r of tion Farmla househ capita Road Town area (perso net househ (perso nd(mu) old (km²) n) income old n) populat Farmla (CNY ion nd(mu) /year)

Zhengqi- Zhengqi 402 6409 24661 14677 300000 3.85 12.16 6,135

Jiucai- Jiucai 167 2258 8935 6151 134076 3.96 15.01 5,908 Sikouzi lijun 207 2917 11361 8950 60808 3.88 5.38 6,436 Road

Total 3 776 11584 44957 29778 494884 3.88 11.01 6,165 Source: socioeconomic survey in September 2018.

3.1.4 Introduction to Socioeconomic status of affected villages 55. The subproject affects the three towns, 6 administrative villages of Haiyuan County of Zhongwei city. In the 6 affected administrative villages, the average household size is 4.35 per household, and per capita farmland is 11.17mu. The per capita income of the 6 administrative villages is between CNY 5,100 and 6,400. Table 3-4 Socioeconomic Indicators of the Affected Villages

Per capita Annual rural per Number of Population Labor Farmland Household Road Town Village cultivate d capita net household (person) (person) (mu) population land income (CNY ) Zhengqi 979 3854 2290 39000 3.94 10.12 6,360

Zhengqi- Satai 685 3072 1982 31000 4.48 10.09 5,824 Zhengqi Jiucai- Sabu 505 2152 1272 28000 4.26 13.01 5,778 Sikouzi Zhongping 560 2450 1407 35000 4.38 14.29 5,102 Road Matao 218 1140 790 13000 5.23 11.4 5,896 Jiucai Yuantao 405 1925 1350 17000 4.75 8.83 5,703 TOTAL 6 3352 14593 9091 163000 4.35 11.17 5,681 Source: socioeconomic survey in September 2018. 3.2 Socioeconomic Profile of Affected Households 3.2.1 Sample survey 56. In order to understand the basic status of population affected by land acquisition, a socioeconomic sample survey was conducted. The 4 sample villages are Satai village,Sabu village and Zhongping village of Zhengqi Town, and Yuantao Village of Jiucai Town, with a total of 301 households and 1162 people affected. The survey sampled 627 people from

20 155 households making up for 51% of the affected households. See the distribution of sample in Table 3-5. Table 3-5 Sampling Proportion Number of Sample households in Sampling No. Town sampling proportion village Number of households Population (%) (household)

1 Zhengqi 198 109 432 55

2 Jiucai 103 46 195 45

Total 301 155 627 51 Source: socioeconomic survey in September 2018.

3.2.2 Nationality and gender 57. The 155 sample households have a total population of 627, a total labor force of 398 and an average population of 4.05 per household. All of the households surveyed are Hui people. There are 304 females (48.48%) of the total surveyed population; most women are engaged in agriculture, housework and other production activities.

3.2.3 Age structure 58. Among the 627 sample people from 155 households, 81 persons are under 16 years old (13%), 193 are from 16-39 years old (31%); 222 from 40-60 years old (35%); and 131 people are over 60 years old (21%). The affected villages have an older age structure because young people have moved to towns for employment. See age structure in Figure 3-1.

13% 21%

31%

under 16 years old 35% 16~39 years old 40~60 years old over 60 years old

Figure 3-1 Age Distribution Structure

21 3.2.4 Education background 59. Among the surveyed households, 354 people have received primary or below education (56.5%); 235 people received junior high school education (37.5%); 36 people received senior high school or technical secondary school education (5.7%); 2 people had received junior college or above education (0.3%). 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.

5.7% 0.3%

37.5% primary or below

junior high school 56.5%

senior or technical secondary school junior college or above

Figure 3-2 Distribution Structure of Education 3.2.5 Housing size 60. The total area of residential land of sample houses is 253 mu, with the residential land area of 1.63 mu per household. The sampled houses are earth-wood or brick-timber structures mainly, with a total housing area of 25832m², and 167m² per household on average and 41.2m² per capita. 9 households (5.8%) have an area less than 100m²; 71 (46.5%) households with an area of 100-150m²; 68 (44.5%) households with an area of 151- 300m²; and 5 (3.2%) with an area of 301-450 m². These are typical housing sizes for rural people but the quality of housing in these villages is quite simple due to poverty.

3.2.6 Farmland resource 61. Of the surveyed households, per household farmland is 43.46mu and per capita farmland is 10.74mu. The farmland mainly refers to dryland and the major crops are corn and wheat, with yearly net return of about CNY 350/mu. There are 73 households (47.1%) with 5-10mu; 82 (52.9%) with 10-15mu.

22 3.2.7 Household income and expenditure 1) Annual household income 62. Among the 627 sample people from 155 households, the average annual income of household is CNY 22,985, including annual average agricultural income of CNY 4,550 per household, making up 19.8%; annual average animal husbandry income of CNY 5,700 per household, accounting for 24.8%; annual average odd jobs income of CNY 11,579 per household, making up 50.4%; annual average income from other sources of CNY 1,156 per household, accounting for 5%. The per capita annual net income is CNY 5,682. 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 mail laborers usually go out for working. 2) Annual family expenditure 63. The per household total annual expenditure is CNY 18,106, including household operating expenditure of CNY 4,698 (25.9%); living expenditure of CNY 9,104 (50.3%); other expenditure of CNY 4,304 (23.8%). 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 capita Proportion Per household Item (CNY % (CNY /household) /person)

Agricultural income 19.8% 4,550 1,125

Forestry income 0 0 0 Income from animal 24.8% 5,700 1,409 husbandry

Industrial income 0 0 0

Income from construction 0 0 0 Annual household industry income Income from transportation 0 0 0 industry

Income from trade, food and 0 0 0 service industry

Income from other non- 5.0% 1,156 286 farming jobs

Income from working out 50.4% 11,579 2,862

23 Per capita Proportion Per household Item (CNY % (CNY /household) /person) Income from collective 0 0 distribution

Income from property 0 0 0

Subtotal 22,985 5,682

Per household Per capita Proportion (CNY /year) (CNY /year) Household operation 25.90% 4,698 1,161 expenditure Annual household Living expenditure 50.30% 9,104 2,250 expenditure Others 23.80% 4,304 1,064 Subtotal 18,106 4,476 Sources: socioeconomic survey in September 2018.

3.2.8 Public opinion survey 64. The survey issued 155 questionnaires, and all of them were valid. The authorized personnel in the resettlement plan had conducted the investigation of public opinion in the 4 sample villages covering 155 sampled households. 65. The results are shown as follows: 66. Awareness: 98 households (63.2%) are aware the project is going to be constructed, 46households (29.7%) are not quite clear about the project and 11 households(7.1%) know nothing about it. 67. Attitude:153 households(98.7%) support the project construction, and 2 households(1.3%) do not care about it. 68. Livelihood options: 113 households(72.9%) surveyed households are not willing to continue in agriculture anymore; 39 households(25.2%) are willing to be given non- agricultural status; 100% are willing to participate in social insurance; and 151 households(97.4%) 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 of the affected households (%) No. Questions Answers 1 2 3 Total

Do you know the project will (1) Yes (2) Not quite clear 1 63.2 29.7 7.1 100 be constructed? (3) No

24 Selection proportion of the opinions of the affected households (%) No. Questions Answers 1 2 3 Total

Do you approve the project (1)Yes (2)No (3) I don’t 2 98.7 0 1.3 100 construction? care Who do you think can (1) Nation (2) Collectivity 3 benefit from the project? 100 98.1 92.9 \ (3) Individual (multiple choices) Do you know the 4 compensation policy for (1) Yes (2) No 18.1 81.9 \ 100 land acquisition? Do you accept the land 5 acquisition for supporting (1) Yes (2) No 90.3 9.7 \ 100 the project? Are you willing to continue 6 farming after land (1) Yes (2) No 27.1 72.9 \ 100 acquisition? Are you willing to be given 7 non-agricultural status after (1) Yes (2) No 25.2 74.8 \ 100 land acquisition? Are you willing to work in enterprises or work for 8 (1) Yes (2) No 98.1 1.9 \ 100 others after land acquisition? Are you willing to do 9 business after land (1) Yes (2) No 45.8 54.2 \ 100 acquisition? Are you willing to participate in social 10 (1) Yes (2) No 100 0 \ 100 insurance after land acquisition? Are you willing to receive 11 technical training after land (1) Yes (2) No 97.4 2.6 \ 100 acquisition? (1) Land allocation Selection of housing resettlement (2) 12 44.5 40 15.5 100 resettlement methods. resettlement on site (3) Monetary compensation Where do you want to (1) The group (2) The 13 choose as housing village/community (3) The 43.9 40.6 15.5 100 resettlement point? town/township Do you know you can lodge a complaint when your 14 (1) Yes (2) No 45.8 54.2 \ 100 lawful rights and interests are violated? Sources: September 2018: Survey on physical impact and socioeconomic. 3.3 The Social, Cultural and Economic Characteristics of Affected Hui Nationality 69. Under the jurisdiction of Zhongwei City, Haiyuan County has 17 villages and towns, including 168 administrative villages and 8 communities, with the total area of 6463 m2 and the total population of 458,200 (71.3% of them are Hui nationality). In 2017, the urban per capita disposable income was 22,346 CNY, and the per capita net income in rural areas was 7,658 CNY. 70. The unique cultural characteristics of the Hui nationality in the project area are all related to the Islam belief. Almost every Hui community has its own mosque. Some of them are very luxurious while some of them are simple, and all the mosques are managed by imams.

25 Imams are obliged to manage the daily affairs of Islam and collect zakat. Mosques in the Hui community are public places, hosting all kinds of Islamic activities and other social affairs and observing five practical activities known as five pillars (Shahadah (faith recognition), Salah (faith pillars), Zakat (almsgiving for the poor), Sawm (fasting in Ramadan) and Hajj (pilgrimage to holy city of Mecca)). The Hui people are called to pray five times a day by Muazzins. In some villages, Muazzins are those with a good voice, while in some other villages no one calls. 71. Children of school age can receive education in primary schools in villages or towns, and both Hui and Han students can attend school without any discrimination. In the secondary stage, there is a secondary school in Zhengqi Town which can accept nearby students; there is no secondary school in Jiucai Town, and students can go to secondary schools in the county or Zhengqi Town or Lijun Town. Road improvements achieved by the project will enhance road reliability, safety and convenience, help improve bus services and encourage families to send their children to receive education in county or Zhengqi Town and Lijun Town. Sample surveys show that there is no discrimination between male and female in education today among the Hui people. But in primary schools, some students walk 1~3 km from home to school every day. Parents hope the transportation will be more convenient and safer through the improvement of roads and the provision of late bus services. Students say they used to get up early and walk to school, and through this program, more time will be spent on other housework and study in the morning and evening. 72. Hui culture is closely related to their Islamic beliefs. As one of the 55 officially recognized minorities, the most striking features of the Hui nationality are: i) the practice of Islam and related customs, festivals and mosques; ii) food taboos. In terms of language, the Hui people in the Liupan mountainous area learn and speak Mandarin in communication. Both the Han and Hui people interviewed believe that there is nearly no difference in political, economic and social concepts between the Han and the Hui. Except that the Hui people do not eat pork and participate in a variety of Muslim rituals and festivals, there is no difference between the Han people and the Hui people. Otherwise we are exactly the same. We speak the same language, go to the same school and the same hospital, but we have different foods and religious beliefs. 3.4 Women’s Development in Project Area

3.4.1 Rural women profile in project areas 73. The proportion of female population was 48.45% in Haiyuan County in 2017, 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.

26 74. 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%). 75. 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 76. 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. 77. 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 labors 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. 78. 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. 79. 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 purposes. Looking after children is women’s domain. Some interviewed women reported that they are living in rented houses in the town

27 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 80. 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. 81. 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. 82. 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. 83. 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. 84. 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. 85. 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 86. 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. 87. 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

28 work. Women also expect more buyers to come to the village, which would in turn further reduces 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 88. 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. 89. 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. 90. 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 CNY 4~6 /ton, and due to the bad road condition, the freight is as high as CNY 150 /ton. Therefore, the improvement of traffic could reduce the cost of villagers to buy drinking water, which further relieves stress of women who look after the family throughout the year. 91. Most men in the project area go out for work, only a few medium-aged and elderly stay at home for farm work, while most women stay at home for farm work and to look after their families. 92. 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 was 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. Thirdly, due to the location of resettlement is far away from farmland, women will become busier to do both household work and farm work, which may lay more stress on women. But resettlement may probably increase the

29 distance from school or hospital to their home, which would result in more time on going out. In order to reduce the negative impact on women, the local government plans to provide more choices for resettlement, so as to ensure each family could have the chance to choose the best one for themselves. In the towns and villages of the project, each residential land covers about 2mu land, and the project requires less house demolition which has less influence on relocated households, so they choose resettlement on site. They would build new houses with the compensation within their residential land, and thus the problem could be solved. 93. 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. Provision of jobs to women will be prioritized during project construction. 94. 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 95. 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. 96. 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. 97. 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.

30 4 Legal Framework and Policies

98. 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 99. The relevant ADB policy is: ADB Safeguard Policy Statement (2009) 4.2 The PRC’s Laws and Regulations on Land Acquisition and Relocation The PRC relevant laws and regulations include the following: (1) The Land Administration Law of the People’s Republic of PRC 100. (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) 101. 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 102. (No.257 Decree of the State Council of The People’s Republic of PRC on December 27, 1998) 103. 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 104. (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008) 105. 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) 106. 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

31 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) 107. 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: 108. 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. 109. 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 maintain the original living level or pay for their social security, the amount can be increased after the approval of provincial government. If the sum of land compensation and resettlement subsidy is 30 times the unified annual output value, and the farmers whose land is expropriated can’t maintain the original living standard, the local government can

32 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) 110. 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 Country Road of General Office of Ministry of Land and Resources of the People’s Republic of PRC (Guo Tu Zi Ting [2013] No.581) 111. 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 roads (including overpass) and land for street trees inside towns and villages do not belong to farm roads. 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 112. (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, 2000) 113. 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. 114. (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. Main contents: According to Land Administration Law of the PRC and Land Administration Regulation of Ningxia Hui Autonomous Region, decide to publish Compensation Standard

33 for Land Acquisition of Ningxia Hui Autonomous Region after deliberation of executive meeting of the People’s Government. 115. (3) Notice on Issuing Compensation Standard for Land Acquisition and Demolition of the Additional Construction of the Second Line Project in Ningxia Section of - Railway of the General Office of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Ban Fa [2010] No.43). 116. According to the above NingZhengFa [2015] No.101 document and current economic development of project implementation area, given that the six counties/districts of project implementation are in Ningnan 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 NingZhengFa [2015] No.101 document as the basis of compensation policy for land acquisition and demolition. 117. (4) Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕No. 69 issued by Haiyuan County Government office. 4.4 ADB’s Policy Requirements on Involuntary Resettlement 118. 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. 119. 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. 120. 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.

34 (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.

35 (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 between ADB and PRC Policies and Gap Filling Measures 121. The main aspects of the legal system include the collective land acquisition, the procedures for transferring collective land to the state, house demolition on collective land in rural areas, and house demolition on state-owned land in urban areas triggering the need for compensating and relocating persons, households, and communities. Key gaps between SPS and the PRC’s system and how to the bridge the gaps are as follows: (i) Lack of identification of the poor and vulnerable groups during the screening process. 122. Specific to vulnerable households (men, women, ethnic groups), they are identified by the Government as those who belong to the (i) Five-Guarantee program (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor) who are being provided with production and living assistance (e.g. food, clothing, fuel, education and burial expenses) and (ii) those eligible for the Minimum Living Guarantee System and are provided with living subsidy each month. Furthermore, identification of the poor and vulnerable households are only done during implementation.

36 123. Those who are not considered as vulnerable groups as per Government definition but may become at risk of being vulnerable or experience hardship due to impacts of LA/HD; i.e., may need special support during the transition period (eg during relocation such as provision of labor, transport) will also be identified and will be provided with necessary assistance. 124. Those belonging to ethnic minorities, the elderly, and women-headed-households who do not fall under the Government criteria require greater in-depth assessment during DMS to determine their vulnerability. 125. In this project, there are 28 vulnerable households (VH) with 159 people affected by the project, among them, 17 VHs will be affected by both land acquisition and house demolition, the other 11 VHs will be only affected by land acquisition. (ii) Lack of documentation on the consultation and information disclosure activities, and grievances received. 126. Meetings and interviews held with the affected households are reflected in the RP and will continue to be documented during RP implementation. The grievance redress will also be documented as part of the monitoring reports. Disclosure of the key information in the RP will be carried out through the distribution of resettlement information booklets in local language. (iii) Inadequate social and risk analysis as resettlement planning is focused on loss of land and impacts on houses. 127. Impact assessment was carried out during RP planning through the conduct of socio- economic surveys, consultation meetings, inventory of losses, and key informant interviews. Gender analysis was also carried out. Such measures led to the preparation of project entitlements, relocation, rehabilitation, and gender strategies; and they are reflected in this RP. (iv) Assistance to households who are not eligible for compensation of houses at replacement cost. 128. Based on the Regulations on the Demolition and Compensation of Houses on State- owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated. However, if the APs belong to the vulnerable groups and are in need of housing, they will be assisted in securing affordable housing or low-rent housing which is according to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply the affordable housing and low-rent housing.

37 129. Compensation for non-land assets will be at replacement cost and provision of resettlement assistance similar to those who have licensed houses provided that the affected households meet the Project’s cut-off date. If an earlier cut-off date has been established by the Government, the Government’s cut-off date will be followed provided that the following conditions are met: (i) copy of Halt Notice for Land Acquisition and House Demolition/ pre-notice for Land Acquisition and House Demolition published, (ii) documents confirming dissemination of information (billboards, minutes of public meetings, letters to households, newspapers, websites, broadcast, etc), and (iii) confirmation from households that they were informed about the cut-off-date verbally and in writing. For households who are not eligible for compensation for houses at replacement cost, the history or reason why the structure has no certification/license; and their socio-economic conditions and vulnerability will be assessed by the Project (through its local government and concerned bureaus) to determine the necessary assistance that can be provided to them to ensure that they will be able to restore or will not be worse-off. 130. In this subproject, there were no illegal houses found. (v) Inadequate monitoring and reporting arrangements 131. Monitoring is not done on a regular basis. Each implementing agencies have their own way of monitoring and documenting the process. 132. For this Project, regular monitoring and submission of monitoring reports should be carried out. An external monitor has been engaged by the PMO. All monitoring reports will be submitted to ADB and disclosed to the public.

38 5 Compensation Principle and Entitlement

5.1 Resettlement Principles 134. 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 2 livelihoods in the 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 3 legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or 4 in kind and 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 5 compensation, the 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 6 that are ready to be 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 7 all APs 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 9 voluntary basis. All resettlement cost is included in the project budget and sufficient to cover all affected aspects. 10 The fund needs to be paid in time. The IA and an external monitoring agency will monitor and measure the progress of implementation 11 of the RP and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes.

39 5.2 Cut-off Date of Compensation 135. In September 2018, Haiyuan County PMO and land resource bureau conducted DMS according to the detailed desgin. The cut-off date for the eligibility for compensation is 30 September, 2018. 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 136. 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.” 137. 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. 138. 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 CNY 7,904 /mu. According to the social-economic survey of AHs, the average agriculture income was CNY 4550 per year per household and the average farmland land area was 43.46 mu, the annual agriculture income was about CNY 105/mu. The compensation rate is about 75 times of the agriculture income loss of the original farmland. 139. 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 CNY 5,532.8 /mu. The compensation rate is about 52 times of the agriculture income loss of the original farmland.

40 140. According to the compensation policy for the same crop by the average annual output value in the first three years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY 500 /mu: 141. 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 Young crops Residential land Compensation 5,532.8 7,904 500 standard (70% of Farm land)

5.4 Temporary Land Occupation 142. At this stage, no temporary and occupation is planned. 5.5 Compensation Rate for House Demolition 143. The compensation for all houses demolished will follow the following principles. i Full replacement costs without depreciation: House demolition will be compensated at replacement cost. Table 5-4 has the detailed cost estimations based on the local house construction practice by type. The affected persons shall receive full replacement cost 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 being 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.

41 144. According to the policy of Asian Development Bank and regulations of PRC, price evaluation is adopted for the rural residential houses of the RP. The houses to be demolished will receive compensation according to the “replacement cost”, the compensation price will be determined through market price evaluation, and will not be lower than the compensation base price of the RP. The compensation standard for demolition is formulated by Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕No. 69. 145. 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. According to the assessment results in table 5-4, the compensation standards are higher than the replacement cost.

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 Brick-timber CNY /m² 640 for the house shall Compensation not be lower than for house Earth-wood CNY /m² 480 the proposed base price. CNY 1,000 per relocation subsidy CNY/HH 1,000 household for one time. House on Transition subsidy: collective CNY 300 per land household each Other subsidy month. Generally, Subsidy for for house and the transition temporal CNY/HH 3004 period is 6 months. resettlement / The exceeded time transition subsidy should be calculated in accordance with actual condition.

4 The subsidy for temporal 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 CNY 300 /household/month. 42 Source: Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and tbhe Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕No. 69. Table 5-4 Cost of House by Type (per 100m²)

Brick-timber Earth-wood Item Unit price Amount Unit price Amount No. No. (CNY) (CNY) (CNY) (CNY) A. Subtotal of main building materials

31,520 18,240 Wood 4 1,200 4,800 5 1,200 6,000 Concrete 8 430 3,440 0 0 0 Adobe

0 0 0 12,000 0.6 7,200 Brick

50,000 0.36 18,000 1,000 0.36 360 Lime (coating) 4 500 2,000 6 500 3,000 Tile (tilestone) 8,000 0.21 1,680 8,000 0.21 1,680 Sand

20 80 1,600 0 0 0 B. Subtotal of other materials 7,500 8,500

Nails, iron wire,electronic Nails, iron wire, electronic Miscellany charge 3,000 charge 4,000 Water and electricity materials 5,500 4,500 C. Subtotal of labor 23,500 12,800 Skilled

70 250 17,500 40 250 8,000 Unskilled

50 120 6,000 40 120 4,800 Total 62,520 39,540 Source: Socioeconomic and physical impact survey in September 2018

43 5.6 Compensation for Ground Attachment and Infrastructure 146. The compensation standard for the ground attachment facilities and infrastructure of the project is determined based on the principle of “replacement price”, shown as Table 5- 5. Table 5-5 Compensation Standard for Ground Attachments and Infrastructure Compensation Item Unit standard （CNY)

Earth wall(h<2m) m 20

Water cellar m 800

Tomb single 1000

Barn m2 45

Poplar (Ф<10cm) single 50

Willow (Ф<10cm) Single 50

Fruit tree(Ф<15cm) Single 110

Storage room m2 640 Source: Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕 No. 69.

5.7 Compensation for Young Crops 147. According to the compensation policy for the same crop by the average annual output value in the first three years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY 500 /mu.

5.8 Standard of Other Costs 148. 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 Land reclaiming 1 CNY2,666.8 /mu Fee and Use Management Methods of Ningxia Hui fee Autonomous Region. Ning Cai (Zong) Fa [2012] No.13) Notice on Adjustment of Policy of New Construction Land New Use Fee of Ministry of Finance, Ministry of Land and 2 construction land CNY6,667/mu Resources and People's Bank of PRC (Cai Zong [2006] use fee No. 48); Notice on Adjustment of Classification of New Construction Land Use Fee in Some Regions by Ministry

44 No Item Tax and fee standard Policy basis of Finance and Ministry of Land and Resources (Cai Zong [2009] No. 24) Farmland Provisional Regulations on Farmland Occupation Tax of 3 CNY3,333.5/mu occupation tax the People’s Republic of PRC Source: Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕 No. 69. 5.9 Entitlement Matrix 149. The entitlement matrix has been established in accordance with the applicable policies in this chapter. See Table 5-7 for details.

45 Table 5-7 Entitlement Matrix

Influence Affected person Type of loss degree Compensation policy Compensation standard

a. Pay land acquisition compensation to the rural collectives according to the The Notice of Releasing the Compensation Standard for Land Acquisition in compensation standard in Table 5- Ningxia Hui Autonomous Region by the People’s Government (Ning Zheng Fa [2015] No.101) ,the project is being implemented in Area II in Haiyuan Land within the 2 of this RP a) Six affected County, Zhongwei city , The compensation standard as follow： project b. Re-allocation of farmland OR villages Farmland/ implementation payment by affected village Permanently collectives Forest Unused Young area - road collectives of cash compensation Category Residential acquired farmland b) 1434 persons land land crops right of way (100%) to AHs losing land with user land of 378 (427 mu of rights if land is contracted to APs 5,532.8 1580.8 households who Compensation farmland) c. Cash compensation for all the (70% of (20% of lose their land standard 7,904 500 ground attachment (e.g., trees) Farm Farm (CNY/mu) according to standards in Table 5-5 land) land) and standing (young) crops according to standard in Table 5-2. Land Cash compensation for the annual temporarily To be loss during land loss period. used as determined Restore to the status prior to the Temporary loss of The villagers losing crops will get total compensation according to construction during construction, and maintain the life land the compensation standard area within the construction of APs at the former level at least. project period The compensation standard is CNY implementation 600 /mu per year.

46 Influence Affected person Type of loss degree Compensation policy Compensation standard

area or close by area The state-owned Occupied state- woodland owned land occupied by the No compensation for state-owned Acquisition of covers an area project is land. But the necessary fees for state-owned land of 58.15 mu, all managed by the transfer and admin fees will be paid. of which are Lijun town woodland Government Cash compensation for AHs, including residential land, and Residence and housing, and attachments. Cash property within 18 households compensation for various housing the project Cash compensation paid to the owners of housing/building and and 74 persons type according to the replacement Demolition of implementation attachments. The compensation for residential land shall be paid to are affected by cost in Table 5-3. The moving residential houses area or collective and residential land shall be re-allocated to the affected house compensation is CNY 1,000 per affected by the households by the villages. demolition. HH, the transitional compensation project is CNY 300 /month of standard (2182.14m2) subsidy, and the transitional period is six months.

47 Influence Affected person Type of loss degree Compensation policy Compensation standard

All facilities within the project Cash compensation based on the Affected public implementation Proprietor of all market price and negotiation with Proprietor receives the total compensation facilities area (no facilities proprietor impacts have been identified yet) a. Give priority to arrange works. Ensure that one member of each family can get access to work arrangements. b. Provide special training as expected, including farmer-back- In the same condition, enjoy the priority of project compensation and 28 HHs with 159 farmer training. assistance. Any affected persons c. Continue to enjoy the existing Additionally, the project will assist the villages and towns in meeting person who is Vulnerable groups belonging to the poverty alleviation policies and the demands of the vulnerable groups, and a support fund for VHs also vulnerable vulnerable preferential treatment and support in will be established according to the standard of CNY3,000 per

groups education, medical care and loans. households, which is totally CNY 84,000 for the economic recovery Additionally, with support fund, the and housing reconstruction of the affected vulnerable groups. VHs could: d. Apply for CNY 50,000 to CNY 100,000 preferential loans if non- farming business is required. Such as the purchase of vehicles for

48 Influence Affected person Type of loss degree Compensation policy Compensation standard

commercial transport, the purchase of livestock, repair factory, small businesses, or changing crop cultivation to horticultural seedlings or fruit trees as required. The loan interest will be paid by the fund. e. A one-off advance moving reward of CNY 3,000 will be provided to vulnerable households after they show relevant valid certificates. Source: related resettlement policies above.

49 6 Income Restoration and Housing Resettlement Measures

6.1 Impact of Land Acquisition and Income Restoration Measures 6.1.1 Impact of and acquisition I）Overall analysis of the impact of land acquisition 150. This project would permanently expropriate 441.41 mu of rural collective land, including 427 mu of farmland and 14.41 mu of residential land. And it also occupies 58.15 mu of state- owned forest land of Li Jun Township. The rural collective expropriation involves two townships and six administrative villages of the Haiyuan County, a total of 378 households with 1,434 people. 151. For the six affected villages, the farmland loss rate is only 0.26%, and for Matao Village of Jiucai Township, the farmland loss rate is 1.03% which is the highest. The main crops in Haiyuan County are corn and wheat. Due to long-time draught, Haiyuan is a county of severe water shortage. The land is cultivated only once in a year and the output value per mu is quite low – about CNY 500 per mu. Meanwhile, according to an investigation, the cost of production in Haiyuan for planting grains is about CNY 150 per mu. Taking consideration to the crops of peasant households in project area, net income per mu is about CNY 350. So, land acquisition will reduce the income of farmland by CNY 46,844 calculated based on the highest farmland loss rate of Matao Village, which is only 0.7% of the general income of CNY 6.72 million of this village in 2017. On the other hand, for households of land acquisition, the household only has loss in income of CNY 910/year calculated at the highest farmland loss rate of 6.5% (a household in Yuantao Village has 43 mu land, 2.86 mu are acquired, with farmland loss rate of 6.65%). In case the in the compensation for land acquisition is not calculated, it brings directly about loss to the households for CNY 1,000/year, which only accounts for just 4.17% of the total household income (about CNY 24,000). Therefore, land acquisition of the project will exert small influence on the affected villages and AHs. (Detail in Table 6-1)

50 Table 6-1 Permanent Land Acquisition Impact

Before land acquisition After land acquisition Income loss Per Annual Per capita Affected capital Per AP of Village Farmla income loss income Tow Affected Total Total Per HH populatio Farmlan averag Road Total capita land farmland nd loss of affected loss of n Village populati farm land farmlan n of land d loss e HH income acquisit loss rate of village village on (mu) d (mu) acquisitio (mu) income (CNY) ion rate % AH % (CNY/village (CNY/pers n loss of ) on) village

Zhengqi 979 3854 6360 39000 39.8 7 30 3.48 0.01 1.25 1218 0.32 0.005 Satai 685 3072 5824 31000 45.3 63 231 63.94 0.21 2.24 22379 7.28 0.13 Zhengqi Zhen Sabu 505 2152 5778 28000 55.4 107 425 115.1 0.41 1.94 40285 18.72 0.32 -Jiucai- gqi Zhongpin Sikouzi 560 2450 5102 35000 62.5 28 96 27.76 0.08 1.59 9716 3.97 0.08 g Road Jiuca Matao 218 1140 5896 13000 59.6 103 410 133.84 1.03 2.18 46844 41.09 0.70 i Yuantao 405 1925 5703 17000 42.0 70 242 82.88 0.49 2.82 29008 15.07 0.26 TOTAL 6 3352 14593 5681 163000 48.6 378 1434 427 0.26 2.32 149450 10.24 0.18 Source: Socioeconomic and physical impact survey in September 2018

51 II）Analysis of the impact of land acquisition on vulnerable groups 152. The cultivated land acquisition impact of this project involves 18 vulnerable groups, with a total area of 8.52 mu. The per capita cultivated land of affected households is 40 mu and the average cultivated land loss rate was only 1.18%. According to the annual net income of CNY 350 per mu, the annual loss is CNY 2,982, accounting for 1.13% of the total annual income of CNY 263,000 for 18 vulnerable groups. Among the vulnerable groups, the household with the highest loss of cultivated land (42 mu in total) has a loss of 0.6 mu and the cultivated land loss rate is only 1.43%, which leads to an annual income loss of CNY 140, accounting for 1.46% of the family's annual income of CNY.14,400 Therefore, project land acquisition has a very small economic impact on the affected vulnerable groups.

6.1.2 Income restoration plan and assistance measures 153. 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 Plan of the Acquired Households No. No. Selection of income restoration willingness of AHs of of Road Town Village Job AH Improve Non farm Self- Social APs arrangement s Agriculture employment employment Insurance by Project

Zhengqi 7 30 1 1 2 3 7

Satai 63 231 5 25 20 13 63 Zhengq Zheng Sabu 107 425 6 46 25 30 107 i-Jiucai- qi Zhongpin Sikouzi 28 96 3 17 5 3 28 g Road Matao 103 410 6 48 18 31 103 Jiucai Yuantao 70 242 5 30 17 18 70

Total 6 378 1434 26 167 87 98 378

Proportion 6.88% 44.18% 23.02% 25.93% 100.00% Source: Socioeconomic and physical impact survey in September 2018 (1) Cash compensation and distribution 52 154. The affected villages/village groups will be compensated in cash based on the standards discussed in Section 5, where compensation rate for Farmland is CNY 7,904, Residential land CNY 7,904, Forest land CNY 5,532.8, and Unused land CNY 1,580.8 per mu respectively (refer to Table 5-2). The land compensation distribution from village to AP has two scenarios: 1) If the land is contracted to APs, 100% of the compensation will be distributed to APs directly.2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 600 /mu, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH. 155. 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 CNY 100-150, depending on location for convenience of transport. The project compensation for dry land per mu is CNY 7,904 that is worth of land leasing price at the existing higher rate of CNY 150 for 52 years, annual average output value(CNY 500 /mu) for 16 years and land contribution value (CNY 150 /mu) for 52 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. 156. However, to ensure that the affected households use the compensation in a sustainable 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 Agricultural output 157. About 26 AHs or 6.88% 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 CNY 700-900 per mu compared to that of CNY 500 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.

53 158. 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 159. About 44% of the total AHs expressed interest in job arrangement for this project. 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 80 unskilled jobs are only available during project construction, and 90 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 167 APs will be trained. Table 6-3 summarizes the direct job opportunities from the project. Table 6-3 Post information Planned Standard Projected Proposed Proposed Jobs No. workdays income income employment time targets (day) (CNY) (CNY) Local Earth- moving 80 20 CNY 80/day 128,000 After the project villager Logistical starts Local 30 100 CNY 50 /day 150,000 support villager Road Local 30 200 CNY 50 /day 300,000 maintenance After project villager completion Local Unskilled labor 30 100 CNY 80 /day 240,000 villager After theproject Local Total 170 420 818,000 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 September 2018 (iv) Non-farming employment/business 160. As the income loss per household from land acquisition is quite limited and agricultural income is no longer their main income sources, about 185 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 CNY 1000 per year, thirteen days non-farming employment at a common rate of CNY 80 per day could cover their income loss.

54 161. 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: 1) by either female or the old family members left home to carry out agricultural plantation; 2) with the migrant family members who come back home during busy season to help with planting or harvesting, 3) by giving land to relatives to plant without charge, or 4) leasing out the land convenient for irrigation and transport at a price of CNY 100-150 per mu per year. Before year 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 185 households or 785 people need relevant skill training which has been provided for in this RP. (v) Training 162. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs. 163. 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. 164. 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 185 AHs with 785 members require such training. The training content and the list of trainees will be updated during the monitoring phase. 165. Special training for vulnerable groups should be organized based on their final choices and non-farming business. 166. 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.

55 167. A total of CNY 60,000 has been budgeted in the RP. The trainees shall receive three skill trainings at least before completion of project in 2021. Table 6-4 Training Plan for Project Implementation Year Target Scope Agency responsible Budget Gardening plant seedling plantation, 785 fruit tree or other new cash crop people in CNY 60,000 plantation, handicraft production, PMO, women’s total, included in project farm machinery, motorcycle or other federation, labor and 2019- including RP budget in vehicle repair, driver, stonecutter, social security 2021 418 addition to local painter, concrete worker, bureau, agriculture females government fiscal waterproofing worker, masonry and forestry bureaus and 367 funds. worker, house decoration worker, males etc. Source: Socioeconomic and physical impact survey in September 2018 (vi) Endowment insurance 168. All affected households expressed their interest in social insurance. However, the endowment insurance for land-expropriated farmers (LEF) only targets 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. 169. 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. As mentioned above, this project provides land acquisition farmers with diversified relocation measures, which widely covers affected households. See details in Table 6-5. (vii) Special assistance to vulnerable families 170. The following special assistance is provided for two 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.

56 (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 171. The subproject will involve demolition of 2182.14 m² of housing and will affect 18 households with 74 persons，as well as the abandoned storage room of Matao Village of Jiucai Township are affected. The affected households list is shown in Table 6-5. Field surveys reveal that most of the affected houses are not in good condition in terms of indoor facility, structure, and surrounding facilities. Half of the AHs will lose part of their houses and not need to relocate, for example, kitchen, storage room, toilet, etc. and the other half of AHs who will lose all of their houses still have enough residential land to rebuild their house nearby. Guided by the principles of the replacement cost and no depreciation, most APs consider that the project provides reasonable compensation as described in Section 5. 172. 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 according to the opinion of AHs after they receive the cash compensation for house demolition of this project: (i) “In-situ reconstruction” which means to do reconstruction on their remaining residential land after land acquisition and house demolition. As the average residential land area of AH is more than 2 mu before the project and only small part of them (0.02 mu to 0.15 mu) were affected by land acquisition and house demolition, the AHs can rebuild a house within the scope of their remaining residential land after demolition of buildings. (ii) Self-relocation which means the AHs plan to use the compensation to improve their living environment and move to another place. Table 6-5 Resettlement Scheme of Houses Demolition chosen by AHs

House demolition House loss rate No. Town Village Name impact Resettlement methods (%) （fully/partial）

Cash compensation and in-situ 1 Zhengqi Sabu Sayanbiao Partial 27.88 reconstruction, no need relocation. Cash compensation and in-situ 2 Zhengqi Sabu Sayanlin Partial 55.89 reconstruction, no need relocation. Cash compensation and in-situ 3 Zhengqi Sabu Sazhannong Partial 33.45 reconstruction, no need relocation. Partial Cash compensation and in-situ 4 Zhengqi Sabu Sazhanshan 49.76 reconstruction, no need relocation. Partial Cash compensation and in-situ 5 Zhengqi Sabu Sazhanyong 55.52 reconstruction, no need relocation.

57 House demolition House loss rate No. Town Village Name impact Resettlement methods (%) （fully/partial）

Fully Cash compensation and in-situ 6 Zhengqi Sabu Yangrucang 100.00 reconstruction. Fully Cash compensation and self- 7 Zhengqi Sabu Yangrujun 100.00 relocation Fully Cash compensation and in-situ 8 Zhengqi Sabu Majinlu 100.00 reconstruction. Cash compensation and in-situ 9 Zhengqi Sabu Mazhigui Partial 44.07 reconstruction, no need relocation. Fully Cash compensation and in-situ 10 Zhengqi Sabu Yangwansheng 100.00 reconstruction. Fully Cash compensation and self- 11 Zhengqi Zhongping Mazhicheng 100.00 relocation Partial Cash compensation and in-situ 12 Jiucai Matao Libinglin 48.24 reconstruction, no need relocation. Fully Cash compensation and in-situ 13 Jiucai Matao Licheng 100.00 reconstruction. Fully Cash compensation and in-situ 14 Jiucai Matao Majinhai 100.00 reconstruction. Partial Cash compensation and in-situ 15 Jiucai Matao Majinrong 50.81 reconstruction, no need relocation. Fully Cash compensation and in-situ 16 Jiucai Matao Qinyuhe 100.00 reconstruction. Cash compensation and in-situ 17 Jiucai Matao Qinyucang Partial 16.11 reconstruction, no need relocation. Cash compensation and in-situ 18 Jiucai Yuantao Yangzhicang Fully 100.00 reconstruction. 173. 17 of the 18 relocation households are poverty families except Yang Rujun . As the 18 AHs have larger residential land, all of which are over 2 mu, there are enough residential land for reconstruction. As a result, 9 of the partial impact AHs will not need to relocate and will rebuild their houses in the left residential land. Among other 9 fully affected households, 2 of them choose self-relocation and move to the township nearby. Although they also have enough residential lands to rebuild houses, they plan to choose a better place after receiving the compensation. The AHs who choose this scheme have family members working in the township nearby and consider that the local natural conditions and the living environment are very poor, they want to relocate to the township for better living environment, education and convenience for them to work in the township. The other 7 fully affected households will rebuild their houses on the left residential lands. The demolition compensation standard set by the resettlement plan is enough for the affected vulnerable groups to rebuild houses of the same structure and area. 6.2.2 Other subsidy policy 174. The affected households will be entitled the following rights and interests.

58 (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area including eligible personnel into Endowment Insurance LEF in Gu; (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. (iv) Transition subsidy: CNY 300 per household each month. Generally, and the transition period is 6 months. The exceeded time should be calculated in accordance with actual condition. (v) Relocation subsidy: CNY 1,000 per household for one time. 6.3 Measures for Vulnerable Groups 175. A support fund for vulnerable groups (28 AHs with 159 people) will be established under the project to support vulnerable groups affected by the project which will be established according to the standard of CNY 3,000 per households, which is totally CNY 84,000 for the economic recovery and housing reconstruction of the affected vulnerable groups. The special fund is prepared by Haiyuan County Transport Bureau and will be transferred to Haiyuan County Financial Bureau and implemented by Poverty Alleviation Bureau of Haiyuan County. 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. 176. According to the management procedures of poverty alleviation of the Government of Haiyuan County, the impoverished group shall be brought into the planning of poverty alleviation of the County Government. Those people are entitled to enjoy various preferential policies, such as the limited interest-paid loans, medical poverty alleviation through medical treatment, endowment insurance, educational poverty alleviation, various poverty alleviation training and ecological immigration project in of Ning Xia Autonomous Region. Since the abovementioned preferential policies may enable the poor groups to restore their livelihoods, the county government shall manage and allocate the support funds for the impoverished households of this project in a unified way. A series of additional measures have been implemented to help them to restore their livelihoods and to settle them down. From the long run, the poverty group affected by the project would benefit far more than the project’s support funds. (i) Giving priority to vulnerable groups in resettlement measures 177. Land acquisition affected households:

59 • 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. • 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. • Include all eligible AH into social insurance on a voluntary basis. The new rural social insurance will be an optimal option for the AH on a voluntary basis. • The children of poverty groups shall be incorporated into the objects of educational poverty alleviation. 178. House demolition affected households: • Priorities will be given to vulnerable group to choose resettlement locations. • A one-off advance moving reward of CNY 3,000 will be provided to vulnerable households after they show relevant valid certificates. • 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 179. 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 CNY 200 per month. (iii) Providing rural medical assistance to eligible vulnerable groups 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. (IV) Loan support shall be provided for the impoverished groups in need. 180. Concessionary loans should be offered for those heavily impacted if those non- agricultural undertakings would be developed, such as buying vehicle for commercial transportation, operation maintenance locations, and developing other income-generating undertakings. 6.4 Women’s Development Measures 181. 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.

60 182. Ensuring women’s equal rights: 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. 183. Training priorities to women with preferential training methods and content: 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. 184. Providing and assisting women to apply for the project-generated job opportunities: 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 185. 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.

61 7 Institutional Arrangements

7.1 Institutional Arrangements 186. 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: • Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Project Management office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Haiyuan County Transport Bureau (implementing agency which also has a PMO) • Haiyuan County Project Resettlement Office of Poverty Relief Project with ADB Loan • Project town/township governments • Village committees • Project design institute • External monitoring and evaluation agency • Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau. 187. The Organizational Chart is show in Figure 7-1.

62 Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Haiyuan Transportation Bureau Project design Internal External institute monitoring monitoring Haiyuan Project Resettlement Office

Town governments

Village/ Community committees

Affected people

AH by HD AH by LA Infrastructure

Figure 7-1 Project Relocation Organizations

7.2 Organizational Responsibility (i) Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region 188. 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. 189. 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.

63 (ii) Leading Group and Management Office of Poverty Relief Project with ADB Loan of Haiyuan County 190. 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 191. 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 192. 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: • Participating in the survey of the Project, and assisting the preparation of the RP. • Organizing public participation, and communicating the resettlement policies; • Implementing, inspecting, monitoring and recording all resettlement activities within the town; • Settling the house demolition and reconstruction; • Responsible for the disbursement and management of land compensation fees; • Supervision of LA, HD, income restoration and house reconstruction;

64 • Reporting LA, HD and resettlement information to Haiyuan County Project Management Office; • Coordinating and handling conflicts and issues arising from its work. (v) Village committees and village groups 193. 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: • Participating in the socioeconomic survey and DMS; • Assistance in preparing the Relocation and Resettlement Plan; • Organizing public consultation, and communicating the policies on LA and HD; • Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of collective compensation funds in a village. • To choose resettlement sites and distribute housing land for relocated families; Helping APs to get house construction approvals, • Organizing the implementation of agricultural (including reserved land distribution) and nonagricultural resettlement activities; • Reporting the APs’ opinions and suggestions to the relevant authorities; • Providing assistance to relocated households with difficulties, particularly the vulnerable families • Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction; • Reporting the progress in land acquisition and resettlement; • Preparing clearance letter to confirm the facility and infrastructure restored and meet their requirement. (vi) Agency undertaking RP formulation 194. Shaanxi Keshe Business Information Consulting Company has been entrusted by Ningxia Hui Autonomous Region PMO to formulate the 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 195. Haiyuan County PMO set 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

65 196. At the planning and design stage, it surveyed the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assisted 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. 197. 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 198. Executing agency has engaged a qualified M&E institute as external M&E agency. The main responsibility includes: • 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 NXPMO and ADB semi-annually; • Providing technical advice to the Resettlement Office in data collection and processing. • Follow the TOR for external M&E (see Appendix C). 7.3 Staffing and Equipment 7.3.1 Staffing 199. 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 200. 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 201. 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.

66 202. 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. The scope of training includes • ADB’s Safeguard Policy Statement (involuntary resettlement policy) • Differences between ADB and PRC polices, • Resettlement implementation planning and management • Key points require attention during RP implementation • RP implementation M&E 203. The training budget for resettlement agencies is CNY 50,000, which has been included in the technical training budget.

67 8 Resettlement Budget

8.1 Resettlement Budget 204. Based on the price in 2018, the estimated resettlement costs covered by this RP were CNY 11,984,359, including basic costs of CNY 5,271,934. Seeing from the category of influence, permanent collective land acquisition costs are CNY 3,702,405, housing demolition and relocation compensation costs are CNY 1,433,850, compensation fees for ground attachments are CNY 48,680, and compensation fees special facilities are CNY 87,000. 205. Other fees includes RP formulating fee, implementation & 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 No. Quantity Total amount Budget Item Unit Standard Proportion (%) (unit) (CNY ) 1 Total of 1.1- Basic costs CNY \ 5,271,935 43.99% 1.4 items 1.1 Permanent land CNY \ 3,702,405 30.89% acquisition CNY Farmland 7904 427 3,375,008 /mu CNY Residential land 7904 14.41 113,897 /mu Forest land State-owned 58.15 Subsidies for young CNY 500 427 213,500 crops /mu 1.2 Compensation fee for CNY 1,433,850 11.96% housing demolition Brick-timber structure ㎡ 640 1974.14 1,263,450

Earth-wood structure ㎡ 480 250 120,000 Fees for temporary CNY 300×6 18 32,400 resettlement /HH CNY Moving subsidy 1000 18 18,000 /HH 1.3 Compensation for ground ancillary CNY 48,680 0.41% facilities Earth wall(h<2m) m 60 140 2,800

Water cellar m 20 30 24,000

Tomb single 800 8 8,000

Barn m2 1000 4 180

Poplar (Ф<10cm) single 50 137 6,850

Willow (Ф<10cm) single 50 38 1,900

Fruit tree(Ф<15cm) single 110 45 4,950

68 No. Quantity Total amount Budget Item Unit Standard Proportion (%) (unit) (CNY ) 1.4 Compensation fee for special-purpose CNY 87,000 0.73% facilities 2 Support fund for VHs CNY 84,000 0.70% 3 RP formulating and CNY 70,000 0.58% monitoring fee Fee for formulation of CNY 25,000 RP M&E cost for relocation CNY 45,000 and resettlement 4 Training cost for CNY 60,000 0.50% relocated people 5 Taxes related to land CNY 5,408,937 45.13% acquisition CNY Farmland occupation tax 3333.5 427 1,423,405 /mu Farmland reclamation CNY 2666.8 427 1,138,724 fee /mu Paid use fee for newly- CNY 6667 427 2,846,809 added construction land /mu 6 (10% of item Contingencies CNY 1,089,487 9.09% 1-5) 2-6 Subtotal CNY 6,712,424

7 Total CNY 11,984,359

8.2 Resettlement investment plan and source of fund 206. The source of resettlement funds is Haiyuan County 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 2019 2020 Total Amount of investment (CNY) 3,595,308 8,389,051 11,984,359 Proportion (%) 30 70 100 8.3 Management and Disbursement of Resettlement Funds 207. 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. 208. 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.

69 (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. 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 of ground ancillary facilities

fees and Infrastructure

Relevant unites or 50% of relocation

individuals fees

crops Fees for young young Feesfor Hand over/vacate APs house

Direct payment Resettlement subsidy Resettlement

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

Figure 8-1 Resettlement Funds Flow of Distribution

8.4 Approval of Budget Increase 209. 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 one month.

70

9 Public Participation and Grievance Redress

9.1 Public Participation 210. 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 211. 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. 212. 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. 213. Early stage information disclosure has been through agencies involved in project design and administrative line agencies at various levels. The main content included 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 project management office at provincial and county level, and survey teams of RP, 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.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. 9.1.2 Participation during project preparation 214. At the feasibility study, PPTA phase, intensive consultations with stakeholders have been conducted with project executing agency, focusing on project scope and component, 71 the alignment selection/shaping, design standards, and alternatives of reducing affected population. During the PPTA, first survey was undertaken in April 2016 and the second in July 2016, the investigation for updating the resettlement plan was carried out in September 2018 according to the design of project construction drawing. A total of 155 households (including all AHs in 4 sample villages) were surveyed. In addition, a total of 6 key informant interviews, 4 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.

Figure 9-1 Public survey site

215. Over 800 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.

72 216. 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, 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. The consultation during project preparation is shown in Table 9-1 for details. 217. The resettlement information booklet (RIB) was formulated, and was distributed in October 2016; compilation of the updated resettlement information booklet has started, and will be distributed in May 2019. The updated RP is subject to the detailed measurement survey, and is hereby being shared with 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.

73 Table 9-1 Public Participation during Project Preparation

Number of Time Organizer Participants Objective Issues raised Participants Affected people, Project Feasibility town, village Report formulation leaders, institute, Foreign engineering ⚫ Village thought site selection should minimize farmland Capital Division of personnel, local Project feasibility study, on-site occupation and house demolition impact on Aps. 2015.4~ Transportation agency of traffic 28 Participants. inspection and preliminary ⚫ Organizer introduced project background and purpose, 2016.3 Department of management assessment of project impact minimize farmland acquisition as much as possible Ningxia Hui organization in during feasibility study. Nationality project Autonomous Region implementation county and district Design personnel, Shaanxi Keshe Business Information Consulting Company, Relevant 60 Participants,10 Relocation plan preparation, ⚫ Villager representatives expressed strong needs of the Foreign Capital government 2016.4~ female, 4 low socioeconomic survey of project and proposed suggestions for route adjustment. Division of agencies, villager 2016.5 income resettlement impact. ⚫ Optimize the design of the route in the investigation Transportation representatives and households. process of the project engineering. Department of grass-roots cadres Ningxia Hui Nationality Autonomous Region ⚫ The affected persons support the implementation of the project. ⚫ The affected persons think that they deserve to have the 130 Participants, Investigate the willingness of land support on employment, concessional loan, participation Haiyuan PMO, Affected towns, 60 female, 31 low acquisition and relocation, Discuss of endowment insurance, skill training etc., and they 2016.4~ Shaanxi Keshe villages and income the measures for livelihood accept to be compensated according to the existing 2016.5 Business Information villagers households, 70 recovery, Compensation for and compensation policy of Haiyuan County. Consulting Company affected persons. arrangement of land acquisition ⚫ Include the suggestions of affected persons into the recovery and settlement measures of the RP and the compensation policy of RP is formulated according to the compensation policy of Haiyuan County 80 Participants,15 Haiyuan PMO, Affected towns, female, 2 low Land acquisition and demolition ⚫ Reduce the occupancy of farm lands and the demolition 2016.7.1 Shaanxi Keshe villages and income data verification with local of the residential houses of villagers as much as 1~7.13 Business Information villagers households, 60 government and villagers on site possible. Consulting Company affected persons.

74 Number of Time Organizer Participants Objective Issues raised Participants

The affected persons hope for implementation as soon as possible. ⚫ The PO shall complete all the early stage works of the 20 Participants, 7 Introduction of project, and project as soon as possible.. females, 3 VHs, investigate the willingness of land ⚫ The affected persons hope to rebuild their houses at 13 affected acquisition and relocation original site and buy residential apartment by persons. themselves after receiving the monetary compensation. ⚫ The wills of affected persons are included into the updated RP.

⚫ The affected persons think that they deserve to have the support on recruitment, employment, skill training, 16 Participants, 6 participation of endowment insurance and medical females, 3 VHs, Discuss the measures for livelihood insurance etc., in addition, the low income households 10 affected recovery. hope that they could get help from the government if persons. they have difficulties in rebuilding their houses. Haiyuan PMO, ⚫ Include the suggestions of affected persons into the Affected towns, 2018.8~ Shaanxi Keshe recovery and settlement measures of the updated RP. villages and 9 Business Information villagers Consulting Company ⚫ The affected people accept to be compensated according to the existing compensation policy of Haiyuan 35 Participants, County. In addition, the influence scale of land 13 female, 5VHs, Compensation for and arrangement acquisition and house demolition should be reduced. 25 affected of land acquisition. ⚫ The compensation policy for the updated RP should be persons.(3 formulated according to the existing policy of Haiyuan seminars) County. Necessary optimized design should be taken to reduce the area of land acquisition and relocation. ⚫ Female villagers think that the daily life and travel of the local villagers should be paid close attention and they hope to get the job opportunities in the project

construction. 11 Participants, 6 Advice for project implementation, ⚫ The PO shall strengthen its supervision and female, 1 VHs, 5 and the role of females in the management on the construction units in order to reduce affected persons. immigration and relocation the influence on the daily life and travel of local villagers activities. as much as possible. ⚫ Recruitment of women has been included into the recovery and settlement measures of the updated RP.

75 9.1.3 Participation plan during implementation 218. Along with project implementation, the Haiyuan PMO and RO has conducted 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 updated Village Haiyuan County PMO APs, town, Compensation Resettlement Plan and announcement village and standard, 2019.5 information booklet and villagers village group complaint meeting channels, etc. Disclosing draft Website ABD website Haiyuan PMO Compensation Resettlement Plan and ADB standard, 2019.5 complaint channels, etc. Land acquisition Village Haiyuan County PMO, All APs Announcing land announcement announcement DRB, LRB, Highway acquisition area, and villagers Bureau in affected compensation 2019.6 meeting counties, LRB and town, standard, village leaders resettlement method, etc. Announcement for Village Haiyuan County PMO, All APs Compensation compensation and announcement DRB, LRB, Highway amounts and mode resettlement scheme and villagers 2019.6 Bureau in affected of payment of land acquisition meeting counties, LRB and town, village leaders Detailed Measurement Field survey 2018.8~ JCPMO, DRB, LRB, All APs Confirm the final Survey (DMS) 2018.9 Highway Bureau in affection quantity affected counties, LRB Details of assets of and town, village leaders loss and the occupied land of resettlement households Preparation of the basis contract for compensation agreement Update of resettlement Field survey 2018.6~ Haiyuan County PMO, All affected Updating plan 2019.4 Development and Reform persons resettlement plan Bureau, Land and Resources Bureau, Highway Administration Bureau, Land and Resources Bureau, towns and village cadres of affected county

76 Objective Approach Time Agency Participant Topic Confirming income Villagers Before JCPMO, DRB, LRB, All APs Discussing the final recovery plan and its meeting implementati Highway Bureau in scheme for income implementation (several times) on affected counties, LRB recovery and and town, village leaders usage scheme for compensation Selecting residential Villagers Three LRB, town, and village All APs Viewing of plot land plots for related meeting months leaders options and HHs before selecting final plots demolition Training plan Villagers 2019.10 LSPB, town and village All APs Discussing the meeting leaders training needs Monitoring Villagers 2018.11~ Town, village leaders All APs 1) Resettlement participates in 2020.4 progress and meeting impacts 2) Payment of compensation 3) Information disclosure 4) income restoration Source: from Haiyuan PMO 9.1.4 Adaptation of RP based on public opinions 219. 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) According to public opinion, the unused land identified in the original RP shall be identified as dry land and be compensated according to the standard. (iv) Based on the survey results, the compensation standard for housing demolition was then updated based on the current local market replacement cost. 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. 9.2 Grievances and Redress 220. To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the

77 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 221. 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 222. 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 effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up. 223. The grievance procedures will be operative throughout the entire planning and 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 Jingyuan 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. 224. 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. 225. The basic grievance redress system is as follows: (i) 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 resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) 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 two weeks.

78 (iii) 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. (iv) If the persons are still dissatisfied with the decision of the government of the county, they may lodge complaints to Project Office of the autonomous region at any time which will generally make a decision within 30 days. (v) If they are still not satisfied, they could institute an administrative lawsuit to the people’s court of the autonomous region according to civil procedure law. All complaints and solutions shall be saved by the Project Management Office. 226. 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 resettlement office that receives these grievances. 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. 227. 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. 228. Affected person can also complain to the ADB, which will be handled by its project team. If affected persons are still dissatisfied with the outcome and have been harmed by the failure of ADB's policy, they can file a complaint with the Office of the ADB Special Coordinator or the Office of Compliance Inspections under the ADB Accountability Mechanism. (For more information ： http://www.adb.org/Accountability-

Mechanism/default.asp). 9.2.3 Grievance Redress Principle 229. 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 230. a.) Contents ⚫ Description of the complainants’ grievance;

79 ⚫ Results of investigations; ⚫ National policies, and the ADB’s principles and standards specified in RP; ⚫ Resolution and its basis; ⚫ The complainant has the rights to appeal to the higher resettlement department or to the courts. 231. b.) Form of Reply ⚫ For complaint concerning individual case, the reply can be directly delivered to the complainant in written form. ⚫ For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents. 9.2.5 Report of Grievance 232. During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to the autonomous region level PMO in written form monthly.

80 10 Implementation Plan of land Acquisition and Resettlement

10.1 Principle for Implementation Of land Acquisition And Resettlement 233. 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.  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.  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.  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. 234. 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. 235. Haiyuan PMO will update the Resettlement Plan based on the detailed measurement and investigation results, and the plan will be submitted to Ningxia PMO. 236. Ningxia Hui Autonomous Region shall submit the updated Resettlement Plan to ADB for concurrence; this is a condition for ADB award of civil works contracts. 10.2 RP Implementation Schedule 237. 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 Information booklet Haiyuan County PMO and 1.1 and 6 May 2019 （updated） each town governments villages Disclosure updated RP Implementation agency, PMO 1.2 May 2019 on ADB website and ADB

81 No. Resettlement Task Target Responsible unit Time Remark 2 RP and budget 2.1 Approve the updated RP Government, Haiyuan County and budget (including April 2019 PMO compensation standard) 2.2 Update RP based on detailed design and DMS Haiyuan County PMO, Ningxia April 2019 and submit to ADB for PMO, ADB concurrence 3 Detailed measurement survey 3.1 Detailed measurement on September 6 villages Haiyuan County PMO done LA and HD 2018 4 Compensation agreements 4.1 Village-level land 6 villages LRB June 2019 compensation agreement 18 June~July， Demolition compensation 4.2 househol Project Resettlement Office agreement 2019 ds 5 Implementation of income restoration measures 5.1 Distribution land compensation to AHs June~July， 6 villages Township and VCs and/or allocation of land (if 2019 possible) 5.2 Village-level development 6 villages VCs 2019~2020 plan 5.3 378 Income restoration through affected Township, VCs and labor 2019~2020 business and employment househol bureau ds 5.4 Affected persons October Implementation of AP in Labor bureau 2019~Decemb training plan Septemb er 2020 er 2019 5.5 Vulnerable groups identification and 28 AHs PMO and civil affairs 2018~2019 assistance measures implementation 5.6 Hiring APs for employment June under project during PMO, labor bureau and 170 APs 2019~June construction and for Contractors 2020 operations

82 No. Resettlement Task Target Responsible unit Time Remark 6 Implementation of House Relocation 6.1 Train relevant personnel in 15 ADB and Ningxia PMO May 2019 Haiyuan County PMO persons 6.2 Train relevant personnel 50 May ~July in county, town, and Haiyuan PMO and RO persons 2019 village 7 Monitoring and evaluation 7.1 Submitt Baseline survey and report External M&E agency Feb 2018 ed 7.2 Build internal monitoring PMO and implementation Feb 2018 mechanism organization 7.3 One Entrust external Before Feb organizati PMO organization to monitor 2018 on 7.4 Quarterly PMO and implementation Start from Feb Internal monitoring report report agency 2018 7.5 1st report Semi- From Feb has External monitoring report annual External M&E agency 2018 to Dec been report 2020 submitt ed 7.6 1st June 2021 annual Annual report External monitoring report External M&E agency report 2ed June 2022 annual report 7.7 1 combined Resettlement completion Ningxia PMO and 7 county report for June 2023 report 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 -To implementation Initial capital June 2019 organization 10.2 - To village Most capital Implementation organization June 2019

83 No. Resettlement Task Target Responsible unit Time Remark 10.3 Implementation organization Start from - To household Most capital and village committee June 2019 11 Start civil works 11.1 Haiyuan County project Haiyuan County PMO July 2019 Source: Socioeconomic and physical impact survey in September 2018

84 11 Monitoring, Evaluation and Report

238. 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 239. 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. 240. 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 According to ADB’s policies, the Ningxia PMO has employed a qualified, independent and experienced resettlement institute/firm agency as the external RP M&E agency.

85 241. 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 242. (i) Baseline survey 243. 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. 244. (ii) Periodic M&E 245. 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: • Payment and amount of compensation fees; • Livelihood training; • Support of women and the vulnerable groups; • Restoration and reconstruction of infrastructure and special facilities; • Income restoration options and results • House demolition and reconstruction; • Compensation for lost property; • Time table of the above-mentioned activities (applicable for any time); • Performance of resettlement organizations; • Use of collective land compensation and the income of APs; • Income growth of labor through employment; and • Whether the APs benefited from the project. 246. (iii) Public consultation and participation 247. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

86 248. (iv) Grievance redress 249. The external M&E agency 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. 250. (v) External monitoring reports 251. 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 (included in whole project external M&E report) No. Report Date 1 Socioeconomic baseline survey report Feb 2018 2 First monitoring report Feb 2018 3 Second monitoring report June 2019 4 Third monitoring report December 2019 5 Forth monitoring report June 2020 6 Fifth monitoring report December 2020 7 First evaluation report June 2021 8 Second evaluation report June 2022

11.4 Post Evaluation Resettlement Completion Report 252. 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. 253. 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.

87 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（Updated） for Zhengqi–Jiucai–Sikouzi Road Project of Haiyuan County of Zhongwei City in Ningxia Hui Autonomous Region

May 2019

Prepared by Transportation Department of Ningxia Hui Nationality Autonomous Region

88 1 Project Background 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 zhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. 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 zhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. 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 subgrade/pavement width of 7.5m/ 6.5m. It is constructed based on the standard of tertiary road, with total length of 28.4km and estimated total money of CNY 115.3063 million. The total construction period is 24 months.

89

Figure 1 Sketch Map of Rural Trunk Road Distribution 2 Project Impact 2.1 Project Impact Scope and Overview The impact of land acquisition and demolition of the project involves 2 towns and 6 administrative villages. Table 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

90 2.2 Impact of Permanent Collective Land Acquisition The land acquisition of the project involves 499.56 mu of land, in which, the area of permanent acquisition of collective land is 441.41 mu, including farmland 427 mu and residential land 14.41 mu. It covers 58.15 mu of state land which is forest land and administrated by Lijun Township Government and does not belong to the village collective. Table 2: Permanent Acquisition of Collective Land (by affected village)

Village Permanent land acquisition (mu) Affecte Affecte Road Town committee/commu d Farmlan Residenti Forest Unuse Subtot d HH nity d al land land d land al person Zhengqi 3.48 0 0 0 3.48 7 30 Zheng Satai 63.94 0 0 0 63.94 63 231 Zhengq qi i- Sabu 115.1 6.73 0 0 121.83 107 425 Jiucai- Zhongping 27.76 1.35 0 0 29.11 28 96 Sikouzi Matao 133.84 4.68 0 0 138.52 103 410 Road Jiucai Yuantao 82.88 1.65 0 0 84.53 70 242 Lijun 0 0 58.15 0 58.15 Total 3 6 427 14.41 58.15 0 499.56 378 1434 11.64 Proportion 85.48% 2.88% 0% 100% \ \ %

2.3 Temporary Land Occupation At this stage, no temporary land occupation is planned.

2.4 Analysis of Impact of Residential House Demolition A total of 18 households with 74 persons are affected. Table 3 List of Impact of Demolished Rural Residential House Area of HD (㎡) Brick- No. Town Village Earth- Sub- AHs APs timber wood total house Sabu 135.02 903.11 1038.13 10 39 Zhengqi Zhongping 42.37 166.26 208.63 1 5 Zhengqi-Jiucai-Sikouzi Road Matao 32.24 648.29 680.53 6 26 Jiucai Yuantao 40.37 214.48 254.85 1 4 Total 250 1974.14 2182.14 18 74 2.5 Impact of Demolished Buildings of Enterprises and Public Institutions No enterprises and public institutions will be affected by land acquisition and demolished. 2.6 Affected Infrastructure and Ground Ancillary Facilities The subproject will affect toilets, tombs, trees and other two categories. See Table 2-6 for details. Table 4 Affected Ground Ancillary Facilities

Item Unit Quantity

Earth wall(h<2m) m 140

Water cellar m 30 Tomb single 8

91 Item Unit Quantity Barn m2 145

Poplar (Ф<10cm) single 137

Willow (Ф<10cm) Single 38

Fruit tree(Ф<15cm) Single 45

Storage room m2 42

3 Legal Framework and Policies and compensation rates 3.1 Policy Basis 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. ➢ ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement ➢ The Land Administration Law of the People’s Republic of PRC ➢ Regulations on the Protection of Basic Farmland ➢ Interim Regulations on Farmland Use Tax of the People’s Republic of PRC ➢ Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) ➢ 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) ➢ 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) ➢ 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) ➢ Notice of People’s Government of Haiyuan County on Disclosure of the Compensation Standard for the Acquisition of Collective Land and the Attachments on the Land in Haiyuan County, Hai Zheng Fa 〔2016〕 No. 69 issued by Haiyuan County Government office. 3.2 Cut-off Date of Compensation The cut-off date for the eligibility for compensation is on June 30, 2016, which is also the date of Tongxin PMO and RO conducting Updated RP. 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 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 CNY 7,904 /mu. The acquisition of Forest land is executed by the 70% of that of Farmland of the same area, the compensation standard for Forest landof the RP is CNY 5,532.8 /mu.

92 According to the compensation policy for the same crop by the average annual output value in the first three years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY 500 /mu. Table 5 Compensation Standard for the Project Land Unit: CNY /mu Farmland/ Category Residential Forest land Young crops land Compensation 5,532.8 (70% of Farm 7,904 500 standard land)

3.4 Temporary Land Occupation At this stage, no temporary land occupation is planned. 3.5 Compensation Rate for House Demolition According to the policy of Asian Development Bank and regulations of PRC, market price evaluation 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 evaluation, 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 Base price Structure type Unit Remark () Residential land CNY /mu 7,904 The compensation for Compensation Brick-concrete CNY /m² 600 the house shallnot be for house Brick-timber CNY /m² 640 lower than the Earth-wood CNY /m² 480 proposed base price. 1000 CNY 1,000 per relocation subsidy CNY/HH household for one time. Transition subsidy: House on CNY 300 per collective household each month. land Other subsidy Generally, and the Subsidy for temporal for house transition period is 6 resettlement / CNY/HH 300 months. The exceeded transition subsidy time should be calculated in accordance with actual condition.

3.6 Compensation for Ground Attachment and Infrastructure 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

93 Compensation Item Unit standard （CNY)

Earth wall(h<2m) m 20

Water cellar m 800

Tomb single 1000

Barn m2 45

Poplar (Ф<10cm) single 50

Willow (Ф<10cm) Single 50

Fruit tree(Ф<15cm) Single 110

Storage room m2 640

3.7 Compensation for Young Crops According to the compensation policy for the same crop by the average annual output value in the first three years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY 500 /mu. 3.8 Entitlement Matrix The entitlement matrix has been established in accordance with the applicable policies.

94 Table 8 Entitlement Matrix

Influence Affected person Type of loss degree Compensation policy Compensation standard

a. Pay land acquisition compensation to the rural collectives according to the The Notice of Releasing the Compensation Standard for Land Acquisition in compensation standard in Table 5- Ningxia Hui Autonomous Region by the People’s Government (Ning Zheng Fa [2015] No.101) ,the project is being implemented in Area II in Haiyuan Land within the 2 of this RP a) Six affected County, Zhongwei city , The compensation standard as follow： project b. Re-allocation of farmland OR villages Farmland/ implementation payment by affected village Permanently collectives Forest Unused Young area - road collectives of cash compensation Category Residential acquired farmland b) 1434 persons land land crops right of way (100%) to AHs losing land with user land of 378 (427 mu of rights if land is contracted to APs 5,532.8 1580.8 households who Compensation farmland) c. Cash compensation for all the (70% of (20% of lose their land standard 7,904 500 ground attachment (e.g., trees) Farm Farm (CNY/mu) according to standards in Table 5-5 land) land) and standing (young) crops according to standard in Table 5-2. Land Cash compensation for the annual temporarily To be loss during land loss period. used as determined Restore to the status prior to the Temporary loss of The villagers losing crops will get total compensation according to construction during construction, and maintain the life land the compensation standard area within the construction of APs at the former level at least. project period The compensation standard is CNY implementation 600 /mu per year.

95 Influence Affected person Type of loss degree Compensation policy Compensation standard

area or close by area The state-owned Occupied state- woodland owned land occupied by the No compensation for state-owned Acquisition of covers an area project is land. But the necessary fees for state-owned land of 58.15 mu, all managed by the transfer and admin fees will be paid. of which are Lijun town woodland Government Cash compensation for AHs, including residential land, and Residence and housing, and attachments. Cash property within 18 households compensation for various housing the project Cash compensation paid to the owners of housing/building and and 74 persons type according to the replacement Demolition of implementation attachments. The compensation for residential land shall be paid to are affected by cost in Table 5-3. The moving residential houses area or collective and residential land shall be re-allocated to the affected house compensation is CNY 1,000 per affected by the households by the villages. demolition. HH, the transitional compensation project is CNY 300 /month of standard (2182.14m2) subsidy, and the transitional period is six months.

96 Influence Affected person Type of loss degree Compensation policy Compensation standard

All facilities within the project Cash compensation based on the Affected public implementation Proprietor of all market price and negotiation with Proprietor receives the total compensation facilities area (no facilities proprietor impacts have been identified yet) a. Give priority to arrange works. Ensure that one member of each family can get access to work arrangements. b. Provide special training as expected, including farmer-back- In the same condition, enjoy the priority of project compensation and 28 HHs with 159 farmer training. assistance. Any affected persons c. Continue to enjoy the existing Additionally, the project will assist the villages and towns in meeting person who is Vulnerable groups belonging to the poverty alleviation policies and the demands of the vulnerable groups, and a support fund for VHs also vulnerable vulnerable preferential treatment and support in will be established according to the standard of CNY3,000 per

groups education, medical care and loans. households, which is totally CNY 84,000 for the economic recovery Additionally, with support fund, the and housing reconstruction of the affected vulnerable groups. VHs could: d. Apply for CNY 50,000 to CNY 100,000 preferential loans if non- farming business is required. Such as the purchase of vehicles for

97 Influence Affected person Type of loss degree Compensation policy Compensation standard

commercial transport, the purchase of livestock, repair factory, small businesses, or changing crop cultivation to horticultural seedlings or fruit trees as required. The loan interest will be paid by the fund. e. A one-off advance moving reward of CNY 3,000 will be provided to vulnerable households after they show relevant valid certificates.

98 4 Institutional Arrangements 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: • Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Project Management Office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Haiyuan County Transport Bureau (implementing agency which also has a PMO) • Haiyuan County Project Resettlement Office of Poverty Relief Project with ADB Loan • Project town/township governments • Village committees • Project design institute • External monitoring and evaluation agency • Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau. The Organizational Chart is show in Figure 2.

99 Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Haiyuan Transportation Bureau Project design Internal External institute monitoring monitoring Haiyuan Project Resettlement Office

Town governments

Village/ Community committees

Affected people

AH by HD AH by LA Infrastructure

Figure 2 Project Relocation Organizations

5 Resettlement Budget

Based on the price in 2018, the estimated resettlement costs covered by this RP were CNY 11,984,359, including basic costs of CNY 5,271,934 . Seeing from the influence category, permanent collective land acquisition costs are CNY 3,702,405,housing demolitioncosts are CNY 1,433,850, compensation fees forground attachments are CNY 48,680,and compensation fees special facilities are CNY 87,000. Other fees include the CNY 70,000 of resettlement plan formulation and monitoring fee, CNY 5,408,937 of taxes, CNY 60,000 of resettlement training fee, and CNY 1,089,487 of contingencies. There is another special fund of CNY 84,000 for vulnerable groups for the economic recovery and housing reconstruction of the affected vulnerable groups. The special fund is prepared by Haiyuan County Transport Bureau and will be transferred to Haiyuan County Financial Bureau and implemented by Poverty Alleviation Bureau of Haiyuan County. 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. 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:

100 (vi) All costs related to this RP shall be included in the total budget of the project. (vii) 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. (viii) 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.. (ix) 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. (x) 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 of ground ancillary facilities

fees and Infrastructure

Relevant unites or 50% of relocation individuals

fees crops Fees for young young Feesfor Hand over/vacate APs house

Compensation fees Compensation Direct payment Resettlement subsidy Resettlement

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

Figure 3 Resettlement Funds Flow of Distribution 6 Grievances and Redress 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. 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. The basic grievance redress system is as follows: (vi) 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 resolve the problems within two weeks after the receipt of the complaints if the grievance is oral.

101 (vii) 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 two weeks. (viii) 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. 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. 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. 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. 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). 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. 7 Implementation Plan of land Acquisition and Resettlement 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 Information booklet Haiyuan County PMO and each 1.1 and 6 May 2019 （updated） town governments villages Disclosure updated RP on Implementation agency, PMO 1.2 May 2019 ADB website and ADB 2 RP and budget

102 No. Resettlement Task Target Responsible unit Time Remark 2.1 Approve the updated RP and Government, Haiyuan County budget (including April 2019 PMO compensation standard) 2.2 Update RP based on detailed Haiyuan County PMO, Ningxia design and DMS and submit April 2019 PMO, ADB to ADB for concurrence 3 Detailed measurement survey 3.1 Detailed measurement on LA September 6 villages Haiyuan County PMO done and HD 2018 4 Compensation agreements 4.1 Village-level land 6 villages LRB June 2019 compensation agreement 18 June~July， Demolition compensation 4.2 household Project Resettlement Office agreement s 2019 5 Implementation of income restoration measures 5.1 Distribution land June~July， compensation to AHs and/or 6 villages Township and VCs 2019 allocation of land (if possible) 5.2 Village-level development 6 villages VCs 2019~2020 plan 5.3 378 Income restoration through affected Township, VCs and labor bureau 2019~2020 business and employment household s 5.4 Affected October Implementation of AP training persons in Labor bureau 2019~Decembe plan September r 2020 2019 5.5 Vulnerable groups identification and assistance 28 AHs PMO and civil affairs 2018~2019 measures implementation 5.6 Hiring APs for employment June under project during PMO, labor bureau and 170 APs 2019~June construction and for Contractors 2020 operations 6 Implementation of House Relocation 6.1 Train relevant personnel in 15 persons ADB and Ningxia PMO May 2019 Haiyuan County PMO 6.2 Train relevant personnel in 50 persons Haiyuan PMO and RO May ~July 2019 county, town, and village 7 Monitoring and evaluation 7.1 Submitte Baseline survey and report External M&E agency Feb 2018 d 7.2 Build internal monitoring PMO and implementation Feb 2018 mechanism organization

103 No. Resettlement Task Target Responsible unit Time Remark 7.3 One Entrust external organization Before Feb organizatio PMO to monitor 2018 n 7.4 Quarterly Start from Feb Internal monitoring report PMO and implementation agency report 2018 7.5 1st report Semi- has From Feb 2018 External monitoring report annual External M&E agency been to Dec 2020 report submitte d 7.6 1st June 2021 annual Annual report External monitoring report External M&E agency report 2ed June 2022 annual report 7.7 1 Resettlement completion combined Ningxia PMO and 7 county PMOs June 2023 report report for the Project 8 Consultation and Participation records Haiyuan PMO Ongoing 9 Grievance records Haiyuan PMO Ongoing 10 Process of land compensation and resettlement capital flows 10.1 -To implementation Initial capital June 2019 organization 10.2 - To village Most capital Implementation organization June 2019 10.3 Implementation organization and Start from June - To household Most capital village committee 2019 11 Start civil works 11.1 Haiyuan County project Haiyuan County PMO July 2019

8 Monitoring, Evaluation and Report 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. 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. 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

104 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. 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 2018 2 First monitoring report Feb 2018 3 Second monitoring report June 2019 4 Third monitoring report December 2019 5 Forth monitoring report June 2020 6 Fifth monitoring report December 2020 7 First evaluation report June 2021 8 Second evaluation report June 2022

105

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 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 Article 2 of the ownership i.e. an ownership by the whole people and ownerships Land by collectives, of land. Administration The State introduces the system of compensated use of land Law of the PRC owned by the 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 Articles 43 and 44 construction land should apply for the use of land owned by the State according to of the Land law; Whereas occupation of land for construction purposes Administration involves the conversion of agricultural land into land for Law of the PRC construction purposes, the examination and approval procedures in this regard shall be required. All applications for land use for construction shall be accepted by Article 17 of the the administrative department in charge of land of the county Land government in a unified manner, and submitted to higher Administration authorities level by level after examination by the county Regulations of government. If the acquisition or use of land for construction Ningxia Hui involves farmland conversion, the administrative department in Nationality charge of land of the county government shall file an application, Autonomous which shall be submitted to higher authorities level by level after Region examination by the county government.

106 Item Key points Index 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 Article 45 of the authority the basic farmland, and other land exceeding 70 hectares shall be Land approved by the State Council. Acquisition of land other than Administration prescribed in the preceding paragraph shall be approved by the Law of the PRC governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record The acquisition of not more than 35 hectares of cultivated land Article 20 of the other than basic farmland, and not more than 70 hectares of other Land land than cultivated land shall be approved by the provincial Administration government. Regulations of Ningxia Hui Nationality Autonomous Region Land For the acquisition of land by the State the local governments at acquisition and above the county level shall make an announcement and announcement organize the implementation after the approval according to the system legal procedures. After the plan for land compensation and resettlement fees is finalized, related local governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired. Rural collective economic organizations shall make public to its Articles 46, 48 and members the 49 of the Land receipts and expenditures of the land compensation fees for land Administration acquired and accept their supervision. Law of the PRC Compensation In acquiring land, compensation should be made according to the Article 47 of the rates for land original purposes of the land acquired. Land acquisition Compensation fees for land acquired include land compensation Administration fees, Law of the PRC

107 Item Key points Index resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years Article 23 of the preceding the acquisition of the cultivated land. However, the Land maximum resettlement fee per hectare of land acquired shall not Administration exceed 15 times of the average annual output value of the three Regulations of years prior to the acquisition. Ningxia Hui Nationality (1) Acquired vegetable land or irrigated land shall be Autonomous compensated for at 8-10 times the average annual output value Region (AAOV) of the three years prior 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 Article 57 of the land use to the purposes agreed upon in the contract for the temporary use Land of land and should not build permanent structures. The term for Administration the temporary use of land shall not usually exceed two years. Law of the PRC If state-owned or collectively owned land is to be used temporarily Article 31 of the for project construction, geologic investigation or any other Land purpose, an application shall be filed along with the application for Administration

108 Item Key points Index construction land and approved by the administrative department Regulations of in charge of land; in case of separate application for temporary Ningxia Hui land use, it shall be approved by the administrative department in Nationality charge of land of the county government in case of non-cultivated Autonomous land, by the administrative department in charge of land of the Region 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 MLR [2004] for Land Acquisition No.238 Article 12 County-level and above local governments shall take practical Fixation of Improvement of measures so that the standard of living of LEFs is not reduced by uniform AAOV measures land rates compensation acquisition. Determination of land acquisition Land compensation, resettlement subsidy and compensation for uniform AAOV for for ground attachments and crops shall be paid in full and timely multiples Fixation pursuant to law. If the land compensation and resettlement of integrated land subsidy pursuant to the prevailing laws and regulations are prices for land insufficient to maintain the former standard of living of the LEFs acquisition areas or to pay the social security expenses of farmers who lose all land Distribution of due to land acquisition, governments of provinces, autonomous land regions and municipalities directly under the central government compensation shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the 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

109 SC [2004] No.28—Improvement of Compensation and Resettlement Systems MLR [2004] for Land Acquisition No.238 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 County-level and above local governments shall take specific Resettlement for Proper measures to guarantee long-term livelihoods of LEFs. agricultural resettlement of For projects with a stable income, farmers may become a production LEFs shareholder using the right to use of land used for construction Resettlement by approved pursuant to law. reemployment Within the urban planning area, local governments shall bring Resettlement farmers who lose all land due to land acquisition into the urban by dividend employment system, and establish a social security system; out distribution Non- of the urban planning area, in acquiring land collectively owned local by farmers, local governments shall reserve necessary arable resettlement land or arrange appropriate jobs for LEFs 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 Disclosure of Improvement of farmers and the right to contracted management of farmers’ land information on land acquisition shall be maintained. land acquisition procedures Before acquisition is submitted for approval pursuant to law, the Confirmation of use, location, compensation rate and mode of resettlement of the land acquisition land to be acquired shall be notified to LEFs; the survey results of survey results the present situation of the land to be acquired shall be confirmed Organization of by rural collective economic organizations and farmers to be land acquisition affected by land acquisition; if necessary, the land and resources hearing 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

110 SC [2004] No.28—Improvement of Compensation and Resettlement Systems MLR [2004] for Land Acquisition No.238 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 Disclosure of Strengthening been implemented, the acquired land shall not be used forcibly. approval items of Supervision Governments of provinces, autonomous regions and land over the municipalities directly under the central government shall acquisition implementation formulate the procedures for the distribution of the land Payment of of land compensation within rural collective economic organizations on compensation and acquisition the principle that the land compensation is used for rural resettlement households affected by land acquisition mainly. expenses for Rural collective economic organizations affected by land land acquisition acquisition shall disclose the receipt, disbursement and allocation Post-approval of land compensation fees to their members and accept supervision and supervision. The agricultural and civil affairs authorities shall inspection of land strengthen the supervision over the allocation and use of land acquisition compensation fees within rural collective economic organizations.

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

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

111 irrigable land (within three 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 residential land 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) No. City, county (district) Number Area (city) Range of area (city) Compensation of area No. standard for land (city) acquisition CNY/ CNY/ ha. mu 4 Zhongwei Haiyuan 2 I Irrigable County planning area, 22,974 344,610 City County land Haixing Economic Dry Development Zone 17,650 264,750 farmland II Irrigable Liwang Town, Qiying 20,786 311,790 land Town, Sanhe Town (the area outside Haixin Economic Development Zone), Gaoya Town, Haicheng Town, Haicheng Subdistrict Dry 7,904 778,560 Office (the area outside farmland the county planning area), Xi’an Town, Guanqiao Town, Jiatang Town, Shutai Town, Shidian Town, Zhengqi Town, Gancheng Town, Ganyanchi Administrative Committee, Guanzhuang Town, Hongyang Town,

112 No. City, county (district) Number Area (city) Range of area (city) Compensation of area No. standard for land (city) acquisition CNY/ CNY/ ha. mu Jiucai Town, 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

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 three 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 three 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 three 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 three 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 three 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 three 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. 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

113 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 three years before the acquisition of the farmland. 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. 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. 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. 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.

114 Annex C Terms of Reference for External Monitoring and Evaluation Agency A. Purpose resettlement monitoring and evaluation 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. A TOR is drafted and a specialist with 8~10 years of relevant social and resettlement experience will be engaged by CQS method. 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 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 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:  the progress of disbursement of compensation for LAR and house demolition;  the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new houses, and adequacy of construction;  institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training;

115  financial capacity of the PMO and IAs, particularly the budgetary arrangements and cash flow for resettlement activities;  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;  the functioning of the GRM;  the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems;  rehabilitation of affected shops;  that the vulnerable groups are being provided support in accordance to the criteria set out in the RP;  the progress of restoration and reconstruction of infrastructure and special  facilities;  implementation schedule for the RP activities; and  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. 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. 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 The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RPs:  Progress: including preparation, implementation of land acquisition, house demolition, resettlement site construction, housing relocation and rehabilitation of livelihoods and living conditions;  Quality: including resettlement implementation, civil construction quality, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction;  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;  Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.;

116  Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites;  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;  Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and  Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people. (iv) Monitoring and Evaluation Method The external monitor will use both quantitative and qualitative methods to undertake the M&E such as: 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. 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 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. 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

117 evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed. 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 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 A total budget for RP is about $ 70,000.

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