Social Monitoring Report

Project Number: 44011-013 July to December 2018

PRC: Energy Efficient Heating Project

January 2019

Prepared by Heilongjiang Project Management Office and HJI Group Corporation

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

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

PEOPLE’S REPUBLIC OF HEILONGJIANG EFFICIENT DISTRICT HEATING PROJECT Loan 2898-PRC

Poverty and Social Impact Monitoring

and Evaluation Report

Prepared for

Asian Development Bank

By

Heilongjiang Project Management Office

HJI Group Corporation

January 2019

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

ABBREVIATIONS

ADB – Asian Development Bank CFB – circulating fluidized bed CNY – Chinese Yuan (currency unit) EA – executing agency GAP – gender action plan HES – heat exchange station HH – household IA – implementing agency LRRP – labor retrenchment and reemployment plan MLSSP – minimum living standard security program PMO – project management office PPTA – project preparatory technical assistance

PRC – People’s Republic of China SCADA – supervisory control and data acquisition

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

TABLE OF CONTENTS

I. OVERVIEW OF THE PROJECT IMPACTS ...... 1

II. CHANGES OF THE PROJECT SCOPE AND BENEFICIARIES ...... 2

A. CHANGES OF THE PROJECT SCOPE ...... 2

B. CHANGES OF BENEFICIARIES DUE TO THE PROJECT SCOPE CHANGES ...... 3

III. PROJECT POVERTY AND SOCIAL IMPACTS ...... 5

A. SHIFT FROM SMALL BOILERS TO CENTRALIZED HEATING ...... 5

B. POPULATION BENEFITED FROM THE CLOSURE OF SMALL BOILERS ...... 5

C. TRAINING ON THE PROJECT IMPLEMENTATION AND MANGEMENT ...... 9

D. AFFECTED BOILER WORKERS RETRENCHMENT AND REEMPLOYMENT ...... 11

E. PUBLIC AWARENESS ENHANCEMENT ACTIVITIES ...... 12

IV. PROJECT POVERTY AND SOCIAL IMPACTS MONITORING RESULTS ...... 15

V. GENDER ACTION PLAN IMPLEMENTATION STATUS ...... 18

VI. SUGGESTIONS ...... 21

APPENDIX 1 ...... 2 2

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

I. OVERVIEW OF THE PROJECT IMPACTS

1. This is the annual report for Poverty and Social Impact Monitoring and Evaluation for the Report Heilongjiang Efficient District Heating Project (the Project) financed by the Asian Development Bank (ADB). The report focuses on the assessment of the poverty and social impacts of the project during the implementation period from September 2013 to December 2018. 2. ADB approved a loan of $150 million to finance the project, which comprised three outputs: (i) expanded district heating coverage in six1project cities without net increase in emissions, (ii) improved energy efficient heat generation capacity in three project cities (, Tongjang and ), and (iii) promotion of private sector participation in district heating in two project cities (Hailin and Tongjiang). The outcome will be improved air quality and reduced greenhouse gas emissions in six urban areas in Heilongjiang province. The Loan Agreement was signed on 26 February 2013 and became effective on 24 April 2013. The Project was delegated to PRCM for administration on 17 July 2014. The project is extended to be completed on 30 June 2019 and the loan will be extended to be closed on 30 June 2019 correspondingly. 3. In line with the Loan Agreement, the project implementing agencies (IAs) are responsible to ensure that Project contractors: (i) are encouraged to use local labor and local materials in works; (ii) provide equal pay to men and women for work of equal type; (iii) provide safe working conditions for both male and female workers; (iv) maximize employment for the affected persons with equal access to women, including disadvantaged women; (v) comply with applicable labor laws; and (vi) abstain from child and bonded labor in construction, operation and maintenance activities on the Project facilities. 4. As specified in the Project Agreement, the IAs shall implement the Gender Action Plan (GAP) and the Labor Retrenchment and Reemployment Plan (LRRP). According to the GAP, the project will safeguard the livelihood of poor households headed by women through the heating assistance to be provided by the local government and implementing agencies; The poor households under the government’s minimum living standard security program, including poor households headed by women, will be subsidized of heating tariff by the local government and waived part or 100% of connection fees from the heating company.The project will also create job opportunities for 50% women as heating bill collectors. 5. Per LRRP, with the shift of heating supply method from small boilers to centralized heating, all the project affected workers need to undertake training to acquire new skills and knowledge to operate the new heating system. Both full time and seasonal workers who are willing to work at the new heating system are eligible to join the technical training program. The IAs are responsible for providing the trainings supported by the respective local quality and technology inspection bureaus. 6. Contents of this report include: project scope changes, poverty and social impactvariations, poverty and social impact monitoring results, gender action plan implementation status, conclusions and suggestions.

1 The six project cities include Harbin, , , Tongjiang, Yichun and Hailin

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II. CHANGES OF THE PROJECT SCOPE AND BENEFICIARIES

A. Changes of the Project Scope

7. As originally planned, the Project included nine sub-projects andwas designed to expand and upgrade district heating systems (DHSs), heatsource plants, pipeline networks, heat exchange stations and the supervisory control and data acquisition (SCADA2) system in eight cities of Heilongjiang Province. The nine subprojects were planned to close down 470 small and inefficient coal-fired boilers for space heating, replace 275,166 household stoves, cover 40.80 million m2heating areas, and were estimated to save 757,599 tons of standard coal per year. 8. However, due to inevitable factors during project implementation, the project could not be all implemented according to the original plan. Jidong, Yichun Xinqing and Raohe subprojects has dropped out of the ADB loanduring the ADB mid-term review mission from 29 June to 3 July 2015 in Heilongjiang, Jiageda subproject applied to drop out of the ADB loan in November 2016. The Heilongjiang PMO proposed to add Hailin subproject to the ADB loan to replace the withdrawn subprojects in order to fully utilize the ADB loan. 9. The original scope of the project and the changes of the scope are shown in Table 1. After the change of the scope, the project consists of six subprojects instead of nine subprojects including 5 original subprojects and 1 new subproject. The project will close 359 small inefficient coal-fired boilers and replace 116,850 household stoves. The heating area covered by the project will be 34.50 million m2, and 444,977 tons (t) of raw coal will be saved per year due to energy efficiency improvement.

2SCADA- supervisory control and data acquisition system to supervise the temperature and pressure in the heat supply pipe network,and adjust the flow in heat exchange stations。The system will automatically adjust the heat water’s temperature and flow speed according to the actual heat consumption.

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Table 1: Project Scope and Changes

New Number of Heating Small Heating Heating SCADAS Scope No. Subproject Heating Pipeline( Boiler Area(milli Source ystem 2 Change a Exchangers km) Closure on m ) (MWth) Harbin Taiping 2×116 MWth Implement 1 40 Yes 22 18 4.0 HP and DH CFB ed Jiamusi West -- Implement 2 111 Yes 68 218 14.8 DH ed 3 Qitaihe DH -- 33 Yes 27 15 6.8 Adjusted Tongjiang City 3×58 MWth Implement 4 24 Yes 17 36 2.7 HP and DH CFB ed Yichun City– Implement 5 Tangwanghe -- 22 Yes 27 16 1.5 ed DH 6 Hailin 2×25MW 56 4.7 Added 7 Jiagedaqi DH -- 30 Yes 21 68 6.0 Cancelled 8 -- 34 Yes 7 32 0.9 Cancelled DH Raohe Town 3×14 MWth 9 0 No 8 19 0.6 Cancelled HP and DH CFB Yichun City– 10 -- 27 Yes 17 48 2.7 Cancelled Xinqing DH Original Total 448 MW 321 217 470 40.8 New Total 456 MW 230 161 359 34.5

CFB = circulating fluidized-bed, DH = district heating, HP = heating plant, km = kilometer, m2 = square meter, MWth= megawatt thermal, No. = number, SCADA = supervisory control and data acquisition. aThe subprojects without new heat source installation will purchase heat from existing combined heat and power plants.

B. Changes of Beneficiaries due to the Project Scope Changes

10. Original social and poverty impacts before changes. Before the scope changes, the project would directly benefit more than 1.63 million urban residents of the project cities, with about half of whom (0.81 million) are female,in which 37,000 are poor households (including 1,300 poor households headed by women) with 130,000 poverty population. The direct benefits will be provided to 174,625 children in 314 schools and patients and medical staffs in 108 hospitals.

11. Social and poverty impacts after scope changes. After the scope changes, The Project will directly benefit about 1.37 million urban residents in the project cities,with about half of whom (0.68 million) female, including the poverty population of 160,000 (45,000 households),and 1,100 poor householdsheaded by women.The direct benefits are provided to 143,116 children in 284 schools and patients and medical staffs in 98 hospitals.The project will potentiallybenefit 882,000 (64% of the total beneficiaries) residents predicted mainly from shantytown transformation and the closure of small boilers, with details referring to Table 2.

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Table 2:Project Beneficiaries’ Population after Changes

Current Potential Female Schools Hospitals Subproject Source Total Students Beneficiaries Beneficiaries % In 2017 in 2017 Harbin Small Boiler& 120,000 280,000 400,000 50.5 57,594 Taiping Shantytown 178 50 Small Boiler& Jiamusi 20,000 358,000 378,000 48.8 27,500 Shantytown 40 30 Shantytown & Qitaihe 140,000 180,000 320,000 48.8 30,500 Migrant 43 4 Small Boiler, Tongjiang 35,000 21,000 Shantytown & 56,000 49.2 11,290 7 2 Migrant Yichun – Tangwangh 22,000 33,000 Shantytown 55,000 50.0 2,380 4 1 e Hailin 159,000 10,000 Shantytown 160,000 49.7% 13,852 (Added) 12 11

1,369,00 New Total 496,000 882,000 49.5 143,116 284 98 0 % 36% 64% 100% 49.5% 10.4% Note: Small boilers refers to households heated by small boilers; shantytown refers to residents in shantytown; migrant refers to new migrant population. 12. The project originally aimed to close down 470 small boilers and would affect 2,075 workers from 9 subprojects. The scope changes will result in the closure of 359 small inefficient coal-fired boilers and affect 1,963 workers (of which 404 are full time workers and 1,559 are seasonal workers). The details are shown in Table 3 below. Table 3:Small Boilers to Be Closed , the Number of Workers Affected , and Changes

Small Boilers Planned Affected Workers (person) Subproject to Be Closed Full Time Seasonal Total Harbin Taiping 18 0 54 54 Jiamusi 218 143 1,247 1,390 Qitaihe 15 0 30 30 Tongjiang 36 0 108 108 Yichun-Tangwanghe 16 70 0 70 Hailin (Added) 56 191 120 311 New Total 359 404 1,559 1,963 Source:Labor Retrenchment and Reemployment Plan( LRRP) and updated PAM.

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III. PROJECT POVERTY AND SOCIAL IMPACTS

A. Shift from Small Boilers to Centralized Heating

13. After the scope changes, the 6 subprojects will close down 359 small inefficient coal-fired boilers for space heating. By December 2018, 6 subprojects have closed down 324 small boilers with 35 small boilers remaining to be closed in the future (see Table 4). Table 4: Summary of Small Boilers Closed in All Subprojects by December 2018

Small Boiler Small Boilers Small Boilers to Subproject Planned to Be Completed % Closed Be Closed Closed Harbin Taiping 18 18 0 100 Jiamusi 218 218 0 100 Qitaihe 15 15 0 100 Tongjiang 36 36 0 100 Yichun- 16 16 0 100 Tangwanghe Hailin 56 21 35 37.5 Total 359 324 35 90.25 Sources: subproject IAs.

14. As of the reporting period, the project has closed down 324 small boilers, accounting for 90.25% of the planned target of 359 small boilers. The targets of Harbin Taiping, Tongjiang, Yichun, Jiamusi and Qitaihe subprojects have been fully achieved sepreately. Only the target of Hailin subproject has not been completed because the subproject is under construction now. The subproject has closed 21 small boilers, accounting for 37.5% of the target value of 56. The closure of small coal-fired boilers will be controlled by the government, and the boilers closure should be implemented according to the plans and policies of the government. So the left 35 small boilers have not been closed in time. The project has completed central heating supply with a heating area of 28,566,080 m2, accounting for 80.83% of the target area of 35,340,000 m2. Most of the 324 small boilers have been dismantled and boiler rooms are retained for other uses such as heat exchange stations (HES).

B. Population Benefited from the Closure of Small Boilers

B.1 Direct Beneficiaries

15. Up to the end of December 2018, the project has provided a total of 226,499 households with centralized heating services, benefiting 1,211,266 persons. Among them, 327 households participated in the energy conservation awareness campaigns targeting women. These activities were mainly organized in the form of community residents discussions and meetings; 18,772 poor households with 55,247 persons in the project area have received heating subsidies from local governments (including 1621 female headed households). In addition, 58 staff from the project management office and implementing agencies received training on project management and implementation. Details are showed

5 Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report in the table below. Table 5 Project Cumulative Direct Beneficiaries

(As of 31/12/2018)

Household (No.) People Beneficiary area Total Female-headed Poor Total Female households households households (person) (%) A. Participants in the energy conservation awareness 327 65 13 354 68.95 campaigns targeting women B. People connected to the 226,499 / 18,772 1,211,266 49.5 DHSs (i) People connected to the DHSs before the / / / 496,000 49.5 project (ii) People shifted from coal-fired boilers to / / / 268,328 49.3 the DHSs (iii) People shifted from household stoves the 112,160 / / 446,938 49.6 DHSs C. Heating tariff and

connection fee (i) Heating tariff 18,772 1,621 18,772 55,247 49% subsidized (ii) Heating connection All All All All All fee waived D. PMO and IA staff trained for project implementation 58 32.76 and management

16. 226,499 households, with 1,211,266 persons have been benefited from the project, accounting for 88.48% of the project's target of 1,369,000 persons. The Hailin Subproject has not completed the demolition and relocation of all small boilers. After all the small boilers have been dismantled and completed, the actual beneficiary population of the project will be increased. B.2 Institutions Benefitted from the DHSs 17. According to the data provided by the implementing agencies, 47 hospitals and 85 schools in total have connected to district heating systems(DHSs). See the table below for details.

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Table 6: Institutions connected to the DHSs

(As of 31/12/2018)

Of which, Unit Total female (%) A. School connected to the DHSs No. 85 (i) Teachers access to the DHSs Person 12,150 67.4 (ii) Students access to the DHSs Person 104,654 48.8 B. Hospital connected to the DHSs No. 47 (i) Hospital staff access to the DHSs Person 8,144 61.83 (ii) Patients access to the DHSs Person-time 39,947 52.85

Sources: subproject IAs 18. As of the reporting period, small boilers close benefits 47 hospitals, and 104,654 students in 85 schools. All the subprojects, except Hailin subproject have been completed, but the number of institutions and hospitals connected to the DHSs actually shows in the figure far from reaching to the target value. As a matter of fact, most of subprojects completed subprojects have basically reached the targets, and the gap occurs by the subproject of Ha’erbin Taiping, which has the targeted indicator much more than the real agencies (hospitals and schools) the project can cover. According to the data from Haerbin IA, the number of actual beneficiary hospitals in the Harbin Taiping Subproject is only 10, while the target value of the subproject is 50 hospitals, and the number of actual beneficiary schools is 14 and the target value is 178; and the covered schools and hospitals in Harbin subproject is the actual the number of schools and hospitals which could be benefitted within the project area. So the actual completion rate in Haerbin subproject is 100% if it is based on the actual numbers of agencies to be covered.

B.3 Poverty Population Benefited from the Closure of Small Boilers

19. The project will safeguard the livelihood of poor households through the heating tariff assistance provided by the local governments and implementing agencies. The poor households under the government’s minimum living standard security program (MLSSP), including poor single parent family headed by women, are subsidized of heating tariff by the local governments. By the end of 2018, 18,772 poor households with 55,247 people (including 1621 poor households headed by women) have received the assistance in the project areas. The same subsidy standard will be provided to all poor families in accordance with local government policies.

B.4 Women Beneficiaries

B.4.1 Women Benefitted from the Closure of Small Boilers

20. Small boiler operation is a heavy physical job and few women are employed for the position. The project creates job opportunities for women as heating bill collectors at heating bill collection stations to collect bills at users’ doors with a targeted female employment rate of 50% for this position by 2017 (baseline: 30%). By the end of December 2018, 84 female heating bill collectors have been hired. Female employment rate of the heating bill collector

7 Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report position in each of the subproject has reached 80% or more. Qitaihe subproject, however, has started to collect the heating tariff through a local bank. So they don’t have heating bill collectors. Details are showed in the table below. Table 7: Female Heating Bill Collectors Hired by December 2018

Subproject Female Heating Bill Collector (person) % Harbin Taiping 20 83.33 Jiamusi 20 95.24 Qitaihe Pay through the Bank -- Tongjiang 13 100 Yichun-Tangwanghe 24 100 Hailin 7 87.5% Total 84 95.45 Sources: subproject IAs.

B.4.2 Women Benefited from the Removal of Household Stoves

21. Households stoves cause some problems such as : (i) respiratory diseases caused by poor indoor air quality due to small coal stoves used for cooking and heating; (ii) death incidents caused by carbon monoxide poisoning every year due to household small coal stoves used for cooking and heating; (iii) heating expenses of household small coal stoves are higher than central heating expenses; and (iv) it is very easy for residents to catch a cold because it is hard to maintain a stable room temperature with small coal stoves. All these problems will be solved after switching to energy efficient centralized heating system from household stoves. 22. As of December 31, 2018, 112,160 household stoves have been dismantled for all the subproject, and the average time spending on heating per household was reduced by 1.05 hours/day. Household Questionnaire Survey conducted in the shantytown areas during the Project Preparatory Technical Assistanc (PPTA) period found that 61.6% households confirmed that cooking and dealing with stoves are mainly undertaken by women. Therefore, the centralized heating provided reduced the labor time for the women at home. Within the report period, there is no incidents caused by carbon monoxide poisoning and fires caused by central heating. Details are showed below.

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Table 8: Household Stoves Removed by December 2018

Average domestic Cases of carbon Household Stoves Removed chores related to monoxide Residential Area (No.) heating reduced poisoning and fire (Hour/day) accident (No.) Harbin Taiping 18,000 0.7 0 Jiamusi 26,000 1 0 Qitaihe 42,000 1 0 Tongjiang 7,452 1 0 Yichun-Tangwanghe 14,850 1 0 Hailin 3,768 4 0 Total/Average 112,160 1.05 0 Household stoves 116,850 removal target % completed 95.99 Sources: subproject IAs.

23. Women beneficiaries in the project area account for 49.5% (about 0.68 million). The project impacts on women more, especially women from shantytown,by the means include: (i) life convenience brought by the advanced heating method; (ii) improved living environment and life quality; (iii) reduced incidence of respiratory diseases related to indoor air pollution and unstable room temperature; (iv) reduced domestic chores related space heating by small coal-fired stoves; (v) reduced incidence of carbon monoxide poisoning and accidental fire, and (vi) job provisions during central heating system operation although such opportunities will not be plenty.

C. Training on the Project Implementation and Management

24. In order to strengthen the capability building of each project management office (PMO) and the implementation agencie(IA), the PMOs and IAs will send management personnel to participate in relevant meetings and inspections during every ADB review mission. In addition, the PMOs and the Ias also organized relevant meetings and trainings from time to time to guide the project implementation and management. However, these trainings and conferences were organized many years ago. The data was not retained and cannot be provided. Only the Harbin Taiping Subproject and the Hailin Subproject provided relevant data. A total of 58 persons, including 19 women, received training in project management and implementation from the project management offices and implementing agencies of the Harbin Subproject and Hailin Subproject. 25. The energy conservation awareness campaigns targeting women organized by each sub-project unit will not be repeated here, and will be detailed in the section on energy conservation awareness campaigns. The Hailin Subproject has conducted trainings on the project implementation and management for the staff. The training details are listed in the table below.

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Table 9: List of the Trainings No. of No. Decription Organizer Time Place Participants No. Female Participants

Hailang Meeting Room Comprehensi July to Thermal on the 5th floor 1 ve September New Staff 28 2 Power of the company Management 2018 Company building

Sources: subproject IA

Comprehensive Management Training of Hailin Subproject

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Comprehensive Management Training of Hailin Subproject

D. Affected Boiler Workers Retrenchment and Reemployment

26. The project implementation will result in the closing of about 359 small inefficient coal-fired boilers (see Table 1) with 1,963 workers affected (see Table 3). The project has closed down 324 boilers and 475 workers have been reemployed as of the end of December 2018. The reemployment positions include transportation and inspection workers, furnace workers, electric welders, desulfurization workers, tarrif collectors, officers, management personnel, and slag-removing workers, etc. The wages after reemployment are higher than the wage levels before the reemployment, and the wage increase is varied from 18% to 65.93%. All the affected workers of Subprojects of Harbin, Qitaihe, Tongjiang and Yichun have been reemployed. Only the workers of the Jiamusi subproject have not been fully reemployed. Due to the big number of closed small boilers, there were as many as 1,247 temporary workers affected. These workers were seasonal temporary workers and had not officially signed labor contracts with the company at the beginning of the work. According to the IA, all the 1247 persons have self-employed, and the IA has not provided work for them; 84 out of 143 full-time employees have been reemployed, accounting for 58.7% of full-time employees and 6.04 of all the workers. The Hailin subproject under construction has reemployed 129 workers, accounting for 41.48% of the total number of workers. Labor retrenchment and reemployment is shown in Table 10, and more details are shown in Appendix I.

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Table 10: Labor Retrenchment and Reemployment by December 2018

Small Full-time labor (person) Seasonal labors (person) Subproject boilers Affected trained reemployed Affected Trained reemployed closed Harbin Taiping 18 18 0 0 0 54 54 Jiamusi 218 218 143 84 84 1,247 0 Qitaihe 15 15 0 0 0 30 30 Tongjiang 36 36 0 0 0 108 108 Tangwanghe 16 16 70 70 70 0 0 Hailin 56 21 191 73 73 120 56 Total 359 324 404 227 227 1559 248 Source:Labor Retrenchment and Reemployment Plan (LRRP) and subproject IAs.

27. With the shift of heating supply method from small boilers to centralized heating, workers need to undertake training to acquire new skills and knowledge to operate the new heating system. Both full time and seasonal workers who are willing to work at the new heating system are eligible to join the technical training program. Training were provided by respective implementing agencies and supported by the local quality and technology inspection bureaus. Training topics included (i) pipe maintenance, (ii) stoker operation, (iii) laboratory technical work, (iv) machine maintenance, (v) electric maintenance, (vi) cybernation technique, and (vii) heating relay station equipment maintenance.

E. Public Awareness Enhancement Activities

28. Leading groups of energy conservation and emission reduction at provincial, municipal or district levels is in charge of the public awareness enhancement activities on energy conservation and emission reduction. As of 31 December 2018, 3 energy conservation awareness campaigns targeting women in partnership with the women’s federation are organized, with a total of 327 women participated; there were 6 knowledge sharing sessions between private and state-owned district heating companies organized, among which 4 “gender responsive district heating” sessions organized; 4 “gender responsive district heating” sessions organized, of which, 2 “gender responsive district heating” sessions organized. These activities include energy conservation and emission reduction campaigns and central heating publicity activities organized by Taiping Heating, conference on the prohibition of open air burning of straw organized by the Daowai Street Office of Harbin, the energy conservation and emission reduction publicity activities organized by the Hailang Thermal Power Co., Ltd. and Haifeng Community, and the “district heating service entering into thousands of households”, and so on. See the table below

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Table 11: Knowledge Sharing and Awareness Raising Organized

(As of 31/12/2018)

Data

No. A. energy conservation awareness campaign targeting women in 3/327 partnership with the women’s federation is organized in each (women) subproject area (target: 680,000 women) B. knowledge sharing sessions between private and state-owned No. 6/494 district heating companies organized Of which, “gender responsive district heating” session organized No. 4/184

C. “gender responsive district heating” session organized in the No. 4/221 regional conference on district heating Of which, “gender responsive district heating” session organized No. 2/122

Sources: subproject IAs.

29. Each IA advocates energy conservation work through multi-channel, multi-modal and all-round, and they conduct the energy consercation work by using the publicity column of the community to post energy-saving publicity materials, hosting energy conservation special blackboard newspapers, and distributing energy-saving leaflets in crowded areas to increase the awareness of energy saving and emission reduction for all people at their best. Advocates green and low-carbon travel for the whole people and create a good energy-saving atmosphere. Among them, Hailang Thermal Power Co., Ltd. organized energy conservation and emission reduction publicity activities in Haifeng Community, which were jointly attended by community residents and power plant employees.

Energy Conservation and Emission Reduction Publicity Activities of Hailin Subproject

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Energy Conservation and Emission Reduction Publicity Activities of Hailin Subproject

30. In order to guarantee and safeguard the legitimate rights and interests of both the supply and the use of heating, let the residents understand the heating work more clearly, more conveniently and more quickly, and truly achieve the goals of “removing the worries from the people and communicating with the people”. Harbin Taiping Heating Company has carried out the activities of “district heating services entering into thousands of households” in various communities under its jurisdiction. Residents can face-to-face ask about heating policies, service standards and procedures from the staff of the company.

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IV. PROJECT POVERTY AND SOCIAL IMPACTS MONITORING RESULTS

31. The subproject IAs have assigned one staff in each office in charge of the monitoring of project poverty and social impacts as shown in Table 12. Table 12:Staff Assignment for Project Poverty and Social Impacts Monitoring

Subproject Staff Name Contact Number Harbin Taiping Mr. Cai 0451-58623110 Jiamusi Mr. Ju 0454-8289309 Qitaihe Mr. Shan 0464—9259533 Tongjiang Mr. Sun 13603639114 Yichun Tangwanghe Mr. Cao 13845824088 Hailin Mr. Yan 13836323334 Sources: provided by the subproject IAs.

32. Project poverty and social impacts monitoring results are shown in Table 13. The project has been implemented according to the poverty and social impact indicators required.

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Table13: Monitoring Results of Project Poverty and Social Impacts

By June 2018 Subproject Yichun-Tang No. Harbin Taiping Hailin Jiamusi Qitaihe Tongjiang Total Monitoring Content wanghe 1 Boilers Closed Down 18 21 218 15 36 16 322 Target 18 56 218 15 36 16 359 % Completed 100 37.5 100 100 100 75 90.25 2 Stoves Removed (HH) 18,000 3,768 26,000 42,000 7,542 14,850 112,160 Target 116,850 % Completed 95.99% 3 Heating Coverage(m2) 4,012,800 1,559,600 14,800,000 3,842,277 2,851,403 1,500,000 28,566,080 Target 4,000,000 4,740,000 14,800,000 7,600,000 2,700,000 1,500,000 35,340,000 % Completed >100 32.90 100 50.56 >100 100 80.83% People 4 405,672 43,179 378,000 276,051 56,494 51,870 1,211,266 Benefited(Person) Target 400,000 160,000 378,000 320,000 56,000 55,000 1,369,000 % Completed >100 26.99 100 86.27 >100 94.31 88.48% 5 Poverty Households Benefited 7,500/25,000 0 7,370/14,742 1,280/5,120 1,762/6,945 860/3,440 18,772/55,247 (HH/person) Target 45,000/160,000 % Completed 41.72%/34.53% 6 Poverty Households Headed by Women 800 0 530 128 40 123 1,621 Benefited (HH) Target 1,100 % Completed >100

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Subproject Yichun-Tang No. Harbin Taiping Hailin Jiamusi Qitaihe Tongjiang Total Monitoring Content wanghe 7 Schools 14 3 40 14 10 4 85 Benefited (School) Target 178 12 40 43 7 4 284 % Completed 7.87 25 100 32.56 >100 100 29.93% 8 Students Benefited 51,938 2,239 27,500 8,710 11,290 2,977 104,654 (Person) Target 57,594 13,852 27,500 30,500 11,290 2,380 143,116 % Completed 90.18 16.16 100 28.56 100 >100 73.13% 9 Hospitals Benefited 10 3 30 1 2 1 47 (Hospital) Target 50 11 30 4 2 1 98 % Completed 20 27.27 100 25 100 100 47.96% 10 Female Bill 83.33% (20) 87.5% (7) 95.24%(20) Pay through Bank 100%(13) 100%(24) 84 Collectors % % Target 50% 50% 50% 50% 50% 50% 50% % Completed >50% >50% >50% <50% >50% >50% >50% 11 Labor Re-employed 54 129 84 30 108 70 475 Target 54 311 1,390 30 108 70 1,963 % Completed 100 41.48 6.04 100 100 100 24.20% 12 Residents Benefited 1,369,000 Target (female) 680,000 % Completed 100% 13 Meetings held(Times) 10 Target (times) 5 % Completed 200% Sources: subproject IAs.

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V. GENDER ACTION PLAN IMPLEMENTATION STATUS

33. Women beneficiaries in the project area account for 49.5% (about 0.68 million). The project impacts on women more, especially women from shantytown areas, and job opportunities will be created especially for women such as the heating bill collectors. As of the end of June 2018, 0.68 million women, accounting for 49.5% of the total 1.37 million people, have participated in energy conservation and awareness campaigns; 1,621 poor households headed by females have been covered into the distrct heating system without net increase in emissions, accounting for 3.6% of the total 45,000 poor households; and female employment rate of the heating bill collector positions in each of the completed subproject has reached 80% or more, except the Qitaihe subproject which has started to collect the heating tariff through the local banks. More details for GAP implementation status is as below (Table 14):

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Table 14: Gender Action Plan Implementation Status Table

Data Sources Organizations Implementati Project Outputs Activities Target Indicators and Reporting Involved on Status Mechanisms All the Project Cities have organized Organize energy conservation awareness energy 680,000female (100%) in campaigns targeting women in partnership with the conservation subproject area by 2017 women’s federation awareness campaigns with females participated. 1. Expanded 85 schools coverage of with 104,654 district heating Project students and a 143,116children in 284 system in the six Decommission small polluting neighborhood boilers management 47 hospitals schools and 98hospitals project cities and and supply heat by cleaner centralized district office, are connected covered by the new heating towns without net heating systems Reports from implementing the district system by 2017. increase in project agencies, and heating emissions management project systems of the office implementation project. consultant, women’s 18,772 poor households Ensure heating assistance to 27,000 poor federation including households, including 1,100 poor female-headed At least 1,100female-headed 1,621househol households through 70% subsidy of heating tariff households assisted by 2017 ds with by the local government and 100% waiver of females as connection fee from the heating company head of household. 2. Energy efficient Domestic chores working hour As of heat generation reduced by one hour by 2017 December Remove 116,850household stoves and connect capacity in the 2018, 112,160 to district heating systems by 2017 three project household citiesb improved No case of carbon monoxide stoves have

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poisoning and fire accident been reported by 2017 removed, accounting for 95.99%. Complied. Organize a session on “gender responsive district Complied d heating” in partnership with the women’s At least one session federation in the knowledge sharing sessions participated by the female 3. Promoted private between private and state-owned district heating representative of heat users sector companies participation in the Organize a session on “gender responsive district At least one session Complied district heating heating” in partnership with the women’s federation participated by the female sector in the two c in the regional conference on district heating representative of heat users project cities 50% of heating bill collectors Complied. Promote the creation of job opportunities for as women by 2017 (baseline: women as heating bill collectors 30%) a The six project cities and towns include Harbin, Jiamusi, Qitaihe, Tongjiang, and Hailin. b The three project cities include Harbin, Tongjiang and Hailin. c The two project cities include Hailin and Tongjiang. d Topics include, but not limited to, gender responsive human resource management strategy, service delivery for women and poor, and heating access and affordability for poor female-headed households. Source: ADB estimates and subproject IAs.

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VI. SUGGESTIONS

34. The project has been implementated according the plan for the most part as shown in this report. However there are some areas the project should improve before the loan closing date. The suggestions are as following: i) Strenghten the statistical work of beneficiary institutions. At present, the number of sub-projects benefiting institutions connecting to the DHSs has not reached the initial target value of the project;

ii) Strenghten the techinic training for the workers worked for the boilers closed down to train them master the skills for the new jobs. Develop or update the reemployment plan for the workers to be reemployed; and

iii) For Hailin subproject under construction, statistics on beneficiary populations, including poverty populations are still needed, and statistics on female beneficiaries are needed additionally.

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APPENDIX 1: LABOR RETRENCHMENT AND REEMPLOYMENT PLAN:

A. Background

Heating services in a cold climate region, such as Heilongjiang where temperature falls below –40°C and heating season last up to 6 months, is one of the basic human needs essential to support socioeconomic activities. The Heilongjiang Energy Efficient District Heating Project, consisting of six subprojects, will upgrade the district heating system which will allow the closing of 359 small inefficient coal-fired boilers and will affect a total of 1,963 workers. Table 1: Small Boiler to be Closed and the Affected Workers

Number of Small Affected workers Subproject Boilers to be Closed Full-time Temporary Total 1. Qitaihe DH 15 0 30 30 2. Harbin Taiping HP and DH 18 0 54 54 3. Jiamusi West DH 218 143 1,247 1,390 4. Tongjiang City HP and DH 36 0 108 108 5. Yichun City-Tangwanghe DH 16 70 0 70 6. Hailin HP 56 191 120 311 Total 359 404 1,559 1,963 DH = district heating, HP = heating plant. Source: Feasibility study reports and local consultations. The labor retrenchment and reemployment plan will safeguard the benefits of the affected workers as per the requirements of Asian Development Bank and the People’s Republic of China.

B. Profile of Affected Workers

Full time employees. 404 full time workers from the closed small boilers will be re-employed by in the Project. Seasonal Workers. A total of 1,559 seasonal unskilled workers will be affected by the Project, who are mainly farmers or migrant workers from the rural areas working only during the non-agricultural production season. As temporary workers, they are free to decide if they are coming back for the same job before each heating season starts. The employment information is provided by heating companies every year before the heating season by all means of notice, bulletin board, short messages, or other internet media, and those who are still willing to work as temporary workers may be hired on contractual basis depending on vacancy and proficiency after the necessary trainings.

C. Re-employment Status of Affected Workers

C.1 Re-employment Status of Full-time Employees.

In the Project, only subprojects in Yichun, Hailin and Jiamusi involve with the full time employees in the numbers of 70, 191, 143 persons respectively. As of the report period, a

22 Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report total of 227(70,73,84) employees have been re-employed, accounting for 56.19% of the total affected full time employees. The details are show in Table 2. Table 2: The Reemployment Status of the Full-time Employees

Full Time Subproject Reemployed Remaining % Completed Employees Jiamusi 143 84 59 58.74% YichunTangwanghe 70 70 0 100.00% Hailin 191 73 118 38.22% SubTotal 404 227 177 56.19% Yichun Tangwanghe Subproject. 16 small inefficient coal-fired boilers were closed in this subproject, which affected 70 workers who are all full time workers. 100% of the affected workers are all re-employed by different positions, such as tariff collectors in marketing department, security department, inspection brigade, heat exchange stations, etc. In total, 96 workers have been re-employed workers is 96 26 more than the scheduled 70 workers. the company provided 26 more positions. The salary level keeps no change before and after the re-employment. Among these 70+26 workers, 8 are female who are arranged as tariff collectors and inspectors. The transfer notice and list is as following: Figure 1-1: Staff Re-employment Notice for Yichun Tangwanghe Subproject

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Figure 1-2: The List of Reemployed Workers in Yichun Tangwanghe Subproject

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Hailin Subproject. Hailin central heating subproject was newly added in the Project from the year of 2016, which will construct a combined heat and power plant. During the ADB mid-term review mission, Jidong, YichunXinqing and Raohe subprojects has dropped out of the ADB loan, and Jiageda subproject also applied to quit in November 2016. Therefore, the Heilongjiang PMO proposed to add Hailin subproject to the ADB loan to fully utilize the ADB loan which will be completed in 2018. But the project is still in the bidding process before construction by end of Aug. 2017. The Subproject was planned to close 56 small inefficient coal-fired boilers. Thus, 6 affected heating companies of small boilers including Haifeng, Shengyuan, Jianxing, Wanda, Shengfeng and Fangxing will be consolidated into Hailang Thermal Power Company (hereinafter HTPC), and totally affect 191 full time workers, with 36 females. Table 3: Full Time Employees Affected by Hailin Subproject

Affected Heating Affected Female Lowest Salary Company Employees Employee ( CNY/Month) Haifeng 148 21 1800 Shengyuan 18 4 1800 Jianxinge 6 3 1800 Wanda 4 1 1800 Shengfeng 10 6 1800 Fangxing 5 1 1800 Subtotal 191 36 As of the report period, only Haifeng heating company has been consolidated into the central heating network which affected 148 full time workers. Of which, 73 full time employees have been reemployed by HTPC, including 20 females, with the lowest salary 10% increased after the reemployment; 9 employees pursued career opportunities in other companies according to their own willingness; 39 employees retained the job but suspended the salary in Haifeng Heating company who will be reemployed by HTPC if they had a mind to. The Hailang Heating Power Plant is still paying social pension insurance for these 39 employees; and 27 has applied for early retirement 3 voluntarily as per the related regulation and policies in

3 Early retired: according to relevant national provisions or the department provisions, early retirement measures can be used for employees who are not qualified to continue the work but do not meet retirement resignation requirements. The

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China. The details are shown in the table below. Due to the work nature, female are mostly work as bill collectors, water quality inspectors and temperature measurement staffs. The labor contracts and reemployment list are as following: Table 4: Employee’s Resettlement list in Haifeng Company

Company Resettlement Method Number of Persons

Haifeng Reemployment 73

Job Hunting themselves 9

Position Retained but Salary Suspended 39

Early Retired 27

Total 148

Figure 2-1: Re-employment Labor Contract for Wang Lihua

company will be in charge of the endowment insurance for them and they will be eligible for pension at due date.

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Figure 2-2: Re-employment Labor Contract for Xiao Taihai

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Figure 2-3: Name list for Employees Reemployed from Haifeng for Hailin Subproject

Figure 2-3: Name list for Employees with Position Retained but Salary Suspended

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Figure 2-4: Name list for Early Retired Employees

Jiamusi Subproject. 218 small inefficient coal-fired boilers were closed, which affected 1,393 workers, including 143 full time workers and 1,247 seasonal workers. Out of the 143 full time workers, 84 are reemployed by Jiamusi Xinshidai Urban Infrastructure Investment Company in different positions, such as technic management, customer service, tariff collector, foreman, inspector, maintenance, station leader, technician, etc. after trained and examined as qualified, accounting for 58.74%. The reemployment list is as following:

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Figure 3-1: Re-employed Full-time Workers’ List

Figure 3-2: Full-time Workers’ Re-employment Contract

Re-employment Contract for Ren Lihui (management position)

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Re-employment Contract for Sun Minglong (first line labor position)

Re-employment Contract for Wang Xiaoming (female bill collector)

C.2 Re-employment Status of Seasonal Workers

Small boiler closure information was provided to seasonal workers before the end of the last heating season. According to Labor Retrenchment and Reemployment Plan in Appendix 4 of Project Administration Manual (20171101 version), for temporary contractual workers work on seasonal basis only, the employers are not obliged to retain them and provide employment assistance in principle. However, equal opportunities have be provided to them if they would like to work at the central heat supply plants as seasonal worker, and they are eligible to participate in the technical training for potential new positions as well. Those who have completed the training course may be hired on contractual or permanent basis depending on vacancy and proficiency. As a matter of fact, these experienced seasonal workers are preferred in the heat supply plants as they did the similar work. As shown in Table 1, there are totally 1559 affected the seasonal employees in the Project. There are no female seasonal temporary workers since the work is heavy in labor. As of the report period, a total of 248 employees have been re-employed, accounting for 15.91% of the total 1,559 affected seasonal employees. The details are shown in Table 4.

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Table 4 : The Re-employment Status of the Seasonal Workers in the Project

Seasonal Reemployed Remaining Subproject Workers Workers % Completed (person) (person) (person) Harbin Taiping 54 54 0 100.00% Jiamusi 1,247 0 1,247 0.00% Qitaihe 30 30 0 100.00% Tongjiang 108 108 0 100.00% Hailin 120 56 64 46.67% Sub-Total 1,559 248 1,311 15.91%

The details of the reemployment status of the subprojects are as following: Taiping Subproject. 18 small inefficient coal-fired boilers were closed, which affected 54 seasonal workers and now 100% of them have been re-employed by the Harbin Taiping Heating Co., Ltd after necessary training for different positions, such as stokers, inspectors, maintenance, electrician, welder, etc.. The re-employed workers list is as following: Figure 4-1: Reemployed Seasonal Workers in Taiping Subproject

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Figure 4-2: Re-employed Labor’s Contracts in Taiping Subproject

Labor Agreement for Han Hao

Labor Agreement for Qi Benzhuang

Qitaihe Subproject. 14 small inefficient coal-fired boilers were closed, which affected 30 seasonal workers and now 100% have been re-employed.

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Jiamusi Subproject. 218 small inefficient coal-fired boilers were closed, which affected 1,393 workers, including 143 full time workers and 1,247 seasonal workers. There are no records on these activities as well as the statistics on the seasonal workers recorded by IA. According to the IA, notice for the small boiler closure has been publicly posted in the small boiler company before the boilers closed, indicating that the affected seasonal workers have the equal opportunities to work in the new central heating company depending on vacancy and proficiency after the necessary trainings. But in the end, no seasonal workers have been re-employed in Jiamusi subproject. Tongjiang Subproject. 36 small inefficient coal-fired boilers were closed, which affected 108 seasonal workers and now 100% have been reemployed by Tongjiang Changheng Cogeneration Co., Ltd after necessary training in different positions, such as foreman, stokers, mechanic, etc.. The reemployed workers’ list is as following: Figure 5-1: Reemployed Seasonal Workers in Tongjiang Subproject

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Figure 5-2: Re-employed Seasonal Worker’s Contracts

Labor Agreement for Chang Lifang

Labor Agreement for Chen Duanmei Hailin Subproject. 56 small inefficient coal-fired boilers were planned to be closed, which will affect 120 seasonal workers in six affected heating companies including Haifeng, Shengyuan, Jianxing, Wanda, Shengfeng and Fangxing, which will be consolidated into HHPC. Until now, only Haifeng Company and Shengyuan have been consolidated into the central heating network with the employment of 56 persons. Only some of the small boilers of Shengyuan company have been dismantled. Details are shown as below:

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Table 5: Reemployment Status for Seasonal Workers Affected by Hailin Subproject

Heating Current Reemployed Reemployment Lowest Salary Company Employee Status ( CNY/Month) Haifeng 50 50 100% Reemployed 11004 Shengyuan 12 6 50% Reemployed 1100 Jianxing 19 0 Not started yet 1100 Wanda 12 0 Not started yet 1100 Shengfeng 15 0 Not started yet 1100 Fangxing 12 0 Not started yet 1100 Total 120 56 As of the end of December 2018, all the affected 56 seasonal workers from Haifeng heating company and Shengyuan have been re-employed by HTPC. In 2018, Haifeng company continued to dismantle the small boilers, and shift the heating area of small boilers to the district heating areas, so the demand of seasonal temporary workers has been consequently increased. And thus there were 6 additional seasonal workers working in Haifeng for the heating season of 2018 with the lowest salary being increased from CNY 1,300.00 month/person into CNY 1,450.00 month/person, the salary has been increased by 11.54%. D. Trainings

As data collected from the IAs, all the front-line staff and newly recruited workers of the heating companies should take technical trainings, pre-post trainings, on-the-post trainings, as well as the safety trainings provided by the companies periodically to enhance the workers’ skills and safety awareness, especially before the heating seasons coming. The trainings include relevant knowledge trainings, operation regulations and procedures, daily maintenance and safety operation, etc. The re-employed workers will be trained together with the other staff according to the company’s requirement, production and training plans. Trainings are conducted in various ways, including group learning, on-site operation, etc. The heating companies also send staff to other heating companies for new techniques learning. For example, Hailang Thermal Power Company (Hailin Suproject) has sent 6 staffs to learn circulation fluidized bed boiler techniques in Tongjiang Changheng Thermal Power Plant during November 2016 to 25 January 2017. The workers affected by the Project have all attended the trainings organized by the new companies with the other staffs together. During July to September, the Hailang Heating Power Plant has organized trainings for the 28 new staff in 2 times. Table 6: List of Some of the Trainings for the Project

Trained Subproject Time Place Contents Remarks Number Tongjiang Nov. 2016 – Pre-job training for Changheng 25 Jan. Circulation Fludized 6 Thermal Power 2017 Bed Boiler Hailin Plant July to Sep. Hailang Heating Comprehensive 28 In 2 times 2018 Power Plant Trainings 25 Dec. 2016 Within the plant Pre-Post Training 78 10 females 10 Nov. 2016 Within the plant Pre-Post Training 71 15 females Tongjiang 8 Dec. 2015 Within the plant Pre-Post Training 54 6 females 20 May 2015 Within the plant Pre-Post Training 26 4 females

4 CNY 1100 /month/person is the average salary in 2017, and the average salary in 2018 is CNY1300 /month/person.

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Figure 6-1: Training Pictures for the Project

2015.12 Tongjiang Pre-Post Training 2015.12 Tongjiang Pre-Post Training

Tongjiang Pre-Post Training in 2016 Tongjiang Pre-Post Training in 2016

Training in Hailang HPP Training in Hailang HPP

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Figure 6-2: Training Record-Safety Education

E. Public Participation and Consultation

Except Hailin Subproject, all the subprojects were mostly completed from the year of 2013 to 2015. But the implementation agencies and related heating companies for the completed subprojects did not keep any records for the public participation and consultation. It is confirmed by the all the IAs but Yichun Tangwanghe subproject that consultation meetings have been held and closure notices have been posted for public participation and consultation before small boilers’ closure and the consolidation into central heating network, in order to release the information to all the affected employees and collect their feedbacks, concerns and response. The affected employees in Yichun Tangwanghe subproject were transferred directly from the original department to other departments in the same company, and their positions have been re-arranged upon mutual agreements. So the affected workers were consulted by IA when reaching the mutual agreements for new positions instead of the public consultation process for labor retrenchment. In the newly added Hailin subproject, Haifeng Heating Company has held enlarged board meeting on 7 June 2016, and all-staff meeting was held on 23 June 2016 with the public participation and consultation records shown below.

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Figure 7-1 Meeting Minutes of the Enlarged Board Meeting in Haifeng

Figure 7-2 Signed Participants List of All-staff Meeting in Haifeng (Partial)

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F. Complains and Appeals

Complaints regarding employment arrangements, training, salary and benefits are responsible by the respective implementing agencies such as the heating companies. The implementing agencies will record the issues when occurred and contact the related departments or agencies as soon as possible to resolve the issues, such as labor bureaus, civil affairs bureaus, and re-employment centers, under the coordination of PMO. The implementing agencies are responsible for the appeal until the issues are resolved. The affected workers have the right to file the case in the local court if they are not satisfied at the results from IA and local government agencies. Until now, no complains and appeals have been received during the implementation of the Project. G. Monitoring and Evaluation

The IAs take the responsibility for the monitoring of the status of the affacted workers. The status of the affected workers has been reported through semiannual progress reports and annual poverty and social impact monitoring report. H. Conclusion

56.19% of the full time workers affected by the closure of small boilers have been properly resettled in the timely manner. Among all the 404 full-time employees, affected workers in Yichun-Tangwanghe subproject has already been 100% reemployed; 84 out of 143 (58.47%) affected full time workers in Jiamusi Subproject has been re-employed; and 73 out of 191 38.22% affected full time workers in Hailin Subproject which is proposed to be completed in 2018 has been re-employed. Although the IAs are not obliged to retain the seasonal workers and provide them employment opportunities, the seasonal workers in all the completed subprojects except Jiamusi subproject, including Harbin Taiping, Qitaihe, and Tongjiang subprojects, have been 100% reemployed. And 56 out of 120 affected seasonal workers for the newly started Hailin subproject have been reemployed, accounting for 46.67% of its seasonal workers. Actually, the experienced seasonal temporary workers are preferred to be employed in all the heating companies. The details are shown in the table below. Table 7: Labor Retrenchment and Reemployment by August 2017

Affected Labors (person) Subproje Project % % Full Reemploy-e Remain-i Season- Reem- Remain ct Status Comple-t Complet Time d ng al ployed -ing ed ed Harbin Completed 0 0 0 - 54 54 0 100 Taiping Jiamusi Completed 143 84 59 58.74 1,247 0 1,247 0 Qitaihe Completed 0 0 0 - 30 30 0 100 Tongjiang Completed 0 0 0 - 108 108 0 100 Yichun Tangwan Completed 70 70 0 100 0 0 0 - ghe Proposed to Hailin be 191 73 118 38.22 120 56 64 46.67 (Added) completed in 2018 Total 404 227 177 56.19% 1,559 248 1,311 15.91%

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The average salary for both full-time and seasonal employees after reemployment is no less than the original salary rate, and the female’s wage is equal to the men’s. The reemployed workers have been trained to adapt to the new positions on the work knowledge and operation methods as well as safety education and trainings.

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