Resettlement Plan

December 2016

People’s Republic of China: Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project

Prepared by Hutubi County Housing and Urban-Rural Construction Bureau and Leading Group Office of ADB-financed Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project, (Changji Prefecture PMO) for the Xinjiang Uygur Autonomous Region Government and the Asian Development Bank. 2

CURRENCY EQUIVALENTS (as of 31 December 2016)

Currency unit – Chinese Yuan (CNY) CNY1.00 = $0.14 $1.00 = CNY6.95

ABBREVIATIONS ADB – Asian Development Bank AP – affected person AH – affected household DMS – detailed measurement survey HH – household HD – house demolition LA – land acquisition LAR – land acquisition and resettlement LRB – land resources bureau MLS – minimum living standard M&E – monitoring and evaluation PMO – project management office PRC – People’s Republic of China RP – resettlement plan

WEIGHTS AND MEASURES mu – 0.006 ha square meter – m2

NOTE 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.

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.

ADB–financed Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project

Hutubi County Subproject Resettlement Plan

Hutubi County Housing and Urban-Rural Construction Bureau

December 2016 Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table of Contents

EXECUTIVE SUMMARY ...... III 1. OVERVIEW ...... 1

1.1. INTRODUCTION ...... 1

1.2. IMPACT SCOPE OF LAND ACQUISITION AND RESETTLEMENT ...... 3

1.3. OPTIMIZING PROJECT DESIGN TO REDUCE RESETTLEMENT IMPACTS ...... 5 2. IMPACT SCOPE...... 7

2.1. TYPES OF IMPACTS ...... 7

2.2. METHODOLOGY AND PROCEDURES ...... 7

2.3. IMPACT AND RISK IDENTIFICATION ...... 8

2.4. COLLECTIVE LAND ACQUISITION IMPACT ...... 13

2.5. IMPACTS OF STATE-OWNED LAND ACQUISITION ...... 14

2.6. IMPACTS OF HOUSE DEMOLITION ...... 15

2.7. AFFECTED VULNERABLE GROUPS ...... 17

2.8. AFFECTED ETHNIC MINORITIES ...... 17

2.9. AFFECTED ATTACHMENTS AND INFRASTRUCTURE ...... 18 3. SOCIOECONOMIC PROFILE OF AFFECTED AREAS ...... 20

3.1. SOCIOECONOMIC STATUS ...... 20

3.2. SOCIOECONOMIC PROFILE OF AFFECTED PEOPLE ...... 22

3.3. GENDER ANALYSIS ...... 29 4. LEGAL FRAMEWORK AND POLICIES ...... 33

4.1. LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 33

4.2. ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 34

4.3. DIFFERENCES BETWEEN ADB AND PRC POLICIES ...... 35

4.4. ELIGIBILITY AND BENEFICIARIES ...... 37

4.5. COMPENSATION RATES ...... 37

4.6. ENTITLEMENT MATRIX ...... 44 5. RESETTLEMENT MEASURES ...... 49

5.1. OBJECTIVES OF RESETTLEMENT ...... 49

5.2. PRINCIPLES FOR RESETTLEMENT RECOVERY PLAN...... 49

5.3. SUBPROJECT BENEFITS...... 49

5.4. RECOVERY PLAN FOR STATE-OWNED LAND ACQUISITION ...... 49

5.5. SUMMARY OF RESTORATION PROGRAM FOR ACQUISITION OF CULTIVATED LAND ...... 51

5.6. RESETTLEMENT PROGRAM FOR DISPLACED HOUSEHOLDS...... 59

5.7. TRAINING ...... 68

5.8. SUPPORTING PROGRAM FOR VULNERABLE GROUPS ...... 70

5.9. PROTECTION OF WOMEN’S RIGHTS ...... 71

5.10. ETHNIC MINORITY DEVELOPMENT ...... 71

5.11. RESTORATION OF INFRASTRUCTURE AND GROUND ATTACHMENTS ...... 72

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

6. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 73

6.1. CONSULTATION AT PREPARATION STAGE ...... 73

6.2. PUBLIC PARTICIPATION AND CONSULTATION PLAN ...... 77

6.3. GRIEVANCE REDRESS MECHANISM ...... 78

6.4. APPEAL CONTACT INFORMATION...... 80 7. RESETTLEMENT BUDGET ...... 82

7.1. RESETTLEMENT BUDGET ...... 82

7.2. ANNUAL INVESTMENT PLAN ...... 87

7.3. DISBURSEMENT FLOW AND PLAN OF RESETTLEMENT FUNDS ...... 87 8. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES ...... 89

8.1. RESETTLEMENT ACTION AGENCIES ...... 89

8.2. ORGANIZATIONAL CHART ...... 89

8.3. HUTUBI COUNTY ADB LOANED PROJECT MANAGEMENT LEADING GROUP ...... 90

8.4. DIVISION OF RESPONSIBILITIES AMONG AGENCIES ...... 91

8.5. MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY ...... 93 9. RESETTLEMENT IMPLEMENTATION SCHEDULE...... 95

9.1. WORK BEFORE RESETTLEMENT IMPLEMENTATION (RP UPDATING) ...... 95

9.2. WORK DURING RESETTLEMENT IMPLEMENTATION ...... 96

9.3. WORK AFTER RESETTLEMENT IMPLEMENTATION...... 97 10. MONITORING AND EVALUATION ...... 99

10.1. INTERNAL MONITORING ...... 99

10.2. EXTERNAL MONITORING ...... 101

APPENDIX 1: APPLICABLE LAWS, REGULATIONS AND POLICIES ...... 105 APPENDIX 2: RESETTLEMENT INFORMATION BOOKLET (RIB) ...... 118 APPENDIX 3: TERMS OF REFERENCE FOR EXTERNAL MONITORING AND EVALUATION ...... 131 APPENDIX 4: MINUTES OF PUBLIC PARTICIPATION AND INTERVIEW ...... 133 APPENDIX 5: DUE DILIGENCE REPORT ON ROAD CONSTRUCTION SUBPROJECT .. - 140 - APPENDIX 6 LAND OWNERSHIP DESCRIPTION OF THE SECOND WATER PLANT OF HUTUBI COUNTY ...... 159 APPENDIX 7 LAND OWNERSHIP DESCRIPTION OF THE THIRD WATER PLANT OF HUTUBI COUNTY ...... 161 APPENDIX 8 LAND OWNERSHIP DESCRIPTION OF THE SEWAGE DISPOSAL PLANT OF HUTUBI COUNTY ...... 163 APPENDIX 9 LAND OWNERSHIP DESCRIPTION OF THE HEATING PLANT OF HUTUBI COUNTY ...... 165 APPENDIX 10 LAND OWNERSHIP DESCRIPTION OF THE GAS PLANT OF HUTUBI COUNTY ...... 167

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Subproject Hutubi County Subproject

Table 1-1: Subproject Contents ...... 2 Table 1-2: Subproject Scale ...... 2 Table 1-3: Summary of Land Acquisition and Resettlement Impacts ...... 5 Table 1-4: Comparison of the Affected Area before and after Design Optimization ...... 6 Table 2-1: Detail Impact Scope...... 12 Table 2-2: Collective Land Acquisition Analysis ...... 13 Table 2-3: Land Loss Rate analysis ...... 13 Table 2-4: Affected Households’ Land Loss Rate ...... 14 Table 2-5: State-owned Land Occupation ...... 14 Table 2-6: Land Loss Rate Analysis in Liangzhongchang Farm ...... 15 Table 2-7: Affected House Demolition ...... 16 Table 2-8: Affected Vulnerable Households ...... 17 Table 2-9: Nationality and Distribution of Affected Minority People ...... 18 Table 2-10: Affected Attachments and Infrastructure ...... 18 Table 3-1: Demographic Profile of Surveyed Households ...... 23 Table 3-2: Housing Conditions of Affected Households ...... 26 Table 3-3: Cultivate land Area of Affected Households ...... 26 Table 3-4: Selected Households Assets of Affected Households ...... 27 Table 3-5: Economic Statistics of the Sample person in 2016 ...... 28 Table 3-6: Average Household Income Sources of Affected Households in 2015 ...... 28 Table 3-7: Average Household Expenditure Pattern of Affected Households in 2015 ... 29 Table 3-8: Income Difference of Male and Female Laborers in 2016 ...... 31 Table 3-9: Construction of Women’s Income to Household in 2016 ...... 32 Table 4-1: Standards of Compensation for Arable Land in Hutubi County (CNY/m2) ..... 37 Table 4-2: Unified Annual Output Values of Cultivated Land ...... 38 Table 4-3: Times of Basic Compensation Rates ...... 38 Table 4-4: Compensation Standards of State-owned Cultivated Land ...... 39 Table 4-5: Compensation Standards of Collective Cultivated Land ...... 40 Table 4-6: Compensation Standards of Collective Homestead Land ...... 41 Table 4-7: Compensation Standard of Residential House Demolition ...... 42 Table 4-8: Compensation Rates for Attachment and Facilities ...... 43 Table 4-9: Entitlement Matrix ...... 45 Table 5-1: Comparison of Income loss and compensation fee ...... 52 Table 5-2: Restoration plan of APs ...... 53 Table 5-3: Calculation method of rural pension ...... 56 Table 5-4: The Number of Jobs to Be Generated from the Subproject ...... 59 Table 5-5: Commercial house price of Hutubi County in 2016 ...... 62

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 5-6: Arrangements for Training...... 70 Table 6-1: Public Participation Activities during Subproject Preparation Stage ...... 75 Table 6-2: Public Opinion Survey Results ...... 76 Table 6-3: Public Participation Plan ...... 77 Table 6-4: List of subproject contacts ...... 80 Table 7-1: Resettlement Cost Estimates...... 83 Table 7-2: Resettlement Budget Plan ...... 87 Table 9-1: Implementation Schedule ...... 97 Table 9-2: Resettlement Implementation Schedule ...... 97 Table 10-1: Progress Report on Resettlement for LA and HD ...... 100 Table 10-2: Progress of Fund Utilization ...... 100 Table 10-3: Indicators of resettlement external monitoring and evaluation ...... 102 Table 10-4: Reporting Schedule of External Resettlement M&E ...... 104

Figure 1-1: Road Network of Hutubi County (Proposed roads in red line) ...... 3 Figure 1-2: Proposed Roads and Affected Communities/villages ...... 3 Figure 2-1: Hufang Road land acquisition status ...... 15 Figure 2-2: The demolished house status (left is Changhua Road / right is Dongfeng Avenue) ...... 16 Figure 5-1: Hutubi County National Nursery Stock Trading Market ...... 57 Figure 5-2: Hutubi County National Nursery Stock Trading Expositions ...... 58 Figure 5-3: Anjufumin Resettlement Community of Hezhuang Village ...... 64 Figure 5-4: Xijingxiaoyue Resettlement Community...... 65 Figure 5-5: Beiyuan Resettlement Community ...... 66 Figure 5-6: Xibanyaxiaozhen Resettlement Community ...... 67 Figure 5-7: Nidouhuayuan Resettlement Community Plan (Effect Picture) ...... 68 Figure 5-8: Construction Sites of Ningdouhuayuan Community ...... 68 Picture 6-1: Public Participation Activities during Subproject Preparation Stage ...... 75 Figure 6-2: Grievance Redress Flowchart ...... 80 Figure 7-1: Flowchart of Resettlement Fund Disbursement ...... 87 Figure 8-1: Resettlement Organizational Chart ...... 89 Figure 1: Grievance Redress Flowchart ...... 129

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

ABBREVIATION ADB Asian Development Bank APs affected persons DI design institute DDR Due Diligence Report EA executive agency EMDP ethnic minority development plan EMs ethnic minorities FSR feasibility study report GRM grievance redress mechanism HCG Hutubi County Government HD house demolition HH household HDO Housing Demolition Office IA implementing agency LRB Land Resource Bureau LAR land acquisition and resettlement MLA Minimum Living Allowance PMO Subproject Management Office PPTA subproject preparatory technical assistance PRC People’s Republic of China RP resettlement plan SPS Safeguard Policy Statement WF Women Federation XUAR Xinjiang Uygur Autonomous Region

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

DEFINITION OF TERMS

Affected person People (households) affected by project-related changes in use of land, (or household) water or other natural resources

Money or payment in kind to which the people affected are entitled in order Compensation to replace the lost asset, resource or income

Range of measures comprising compensation, income restoration, transfer Entitlement assistance, income restoration, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base

Resettlement Loss of physical and non-physical assets, including homes, communities, impact productive land, income-earning assets and sources, 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, Resettlement objectives, entitlement, actions, responsibilities, monitoring and evaluation plan

Vulnerable Distinct groups of people who might suffer disproportionately from group resettlement impacts, include the disabled, five-guarantee households, female-headed households, low-income people and ethnic minorities.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Executive Summary

1. Subproject Overview. The Hutubi Subproject is one of the subprojects of Xinjiang Changji Urban-Rural Infrastructure Construction Demonstration Project (hereinafter the “project”), which is financed by Asian Development Bank (ADB). The subproject includes three parts: (i) Road Construction: construction of 3 roads with a length of 7.96 km, including 1 new cover culvert, 15 round pipe culverts, and 7 inverted siphons; (ii)Urban utility pipes: (a) Water Supply Pipes: all of these pipelines will be newly built and the total length will be 1,043 m, among which are 8,028 m of water supply pipes and 2,048 m of crossing reservation pipes, with diameters of dn200 and PE100; (b) wastewater pipes: installation of 10,432 m of wastewater pipes, with a diameter of dn400 and material of HDPE; (c) District Heating Pipes: installation of 9,220 × 2 m hot water pipeline, with a diameter of dn250-500 and material of Q235-B; (d) Gas engineering works: installation of 9,900 m of gas pipelines, with a diameter of dn160, pressure of 0.4 MPa and material of PE; and (iii) capacity building in (a) strengthen technical and vocational education and training at Hutubi County Senior Secondary Technical School; and (b) subproject management of implementing agency and subproject implementation units.

The construction of the new roads will cause the land acquisition and house demolition involved in the subproject, so a resettlement plan for the preparation of the land acquisition and house demolition caused by the subproject is necessary. In addition, parts of the farm land in Changhua Road have been demolished because of the master plan of land use and town construction in Hutubi County, therefore a Due Diligence Report needs to be prepared. The subproject in Hutubi County has been included in the master plan of urban and rural development; it will be implemented in 2017 and finished in December 2021. The land acquisition and house demolition will start in May 2017 and will be finished in December 2020. The implementation agency of the subproject is Hutubi County Government, and subproject implementation unit for the Hutubi road component is the Bureau of Housing and Urban-rural Construction of Hutubi County.

2. Impact Scope. Land acquisition (LA) and house demolition (HD) of the subproject will affect 2 towns (Yuanhucun Town and Ershilidian Town), 2 villages (Hezhuang and Xiatougong Villages) and 1 state-owned farm (Liangzhongchang in Yuanhucun Town), with 149 households with 548 people that will be affected, in which 57 households with 215 persons are ethnic minorities, accounting for 39.23% of the total of affected persons (APs). 46 families with 184 members are affected by HD only, and 96 families with 336 members by LA only, and 7 families with 28 members by both.

A total of 360.61 mu of land will be acquired, permanently affecting 103 households with 364 people (including 7 households with 28 people by both LA and HD), including 13.18 mu of state-owned land and 347.43 mu of collective land. The state-owned land consists of (i) 6.35 mu of cultivated land (nursery land), affecting 3 households with 12 people, including 2 households with 8 ethnic minorities; (ii) 2.75 mu of state-owned residential land, where the affected population is included in the population to be demolished without further calculation; (iii) 4.08 mu of state-owned construction land, all of which are vacant lots, without any attachments and buildings, so without population affected. The collective land consists of (i) 197.35 mu of collective cultivate land, with 100 households and 352 people affected (including 7 households with 28 people by both LA and HD), including 32 households with 112 ethnic minorities; (ii) 110.42 mu of collective reserved land; actually, the reserved land used to be arable land, with no current farm road. In order to make it convenient for farmers’ ploughing, they built the farm road by themselves. According to verification from L&R Bureau and village committee, the ownership of the reserved land belongs to the village; the compensation standard will be in accordance with arable land, that is to say, the land compensation fee and resettlement subsidy will be paid to the village, with no young crops fee, because the farm road belongs to collective reserved land. No individuals are involved, so there is no affected population; (iii) 39.66 mu of collective homestead land; the affected population is included in the population to be demolished without further calculation.

About 18,445.35 m2 of house area will be demolished, affecting 53 households with 212 people iii

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(including 7 households with 28 people both by LA and HD) including 27 ethnic minority families with 112 members. According to the survey, the subproject will not involve the demolition of stores or enterprise.

This Resettlement Plan (RP) is prepared based on the Feasibility Study Report (FSR) and the socio-economic survey data of the subproject. The RP shall be updated according to the detail measurement survey and census data of affected persons based on detailed design of the subproject; the updated RP shall be submitted to ADB for review and concurrence prior to start of LAR activities.

3. Policy Framework and Entitlement. This Resettlement Plan (RP) is formulated in accordance with State-owned Land on the Housing Levy and Compensation Ordinance of the PRC (2011), The Land Administration Law of the PRC (2004), The Decision of the State Council on Intensifying the Reform and Tightening the Land Administration (Guo Fa [2004] No. 28), Circular of the Ministry of Land and Resources on the Working Paper Concerning Developing the Unified Annual Output Value Standard of Land Expropriation and the Integrated Section Price of Land Expropriation (Guo Tu Zi Fa [2005] No. 144), Notice on the promulgation and implementation of autonomous unified annual output value standard" (new MLR [2011] 19), and Safeguard Policy Statement (SPS) of ADB (June, 2009).

All the affected people will be compensated for the LAR according to the policies and regulations. Compensation for the permanent LA of the agricultural land includes land compensation, resettlement subsidy, and young crops fee. The compensation standards are (i) CNY12,000 per mu for land compensation; (ii) CNY25,500 per mu for resettlement subsidy; and (iii) the young crops calculated by types and grades of diameters. The ground attachments compensation will be calculated by market values. Because the ownership of collective land belongs to the village, the land compensation will be paid to the village directly; the usage of these compensation funds should be negotiated with all the villagers. However, the resettlement subsidy and young crops fees will be paid to the affected villagers directly.

Compensation for the HD includes (i) monetary compensation: the compensation standards are based on house assessment conducted by a third-party agency but are not lower than the standards listed in this RP, and the compensation will be paid to APs at one time (including transition and moving subsidies); (ii) property right exchange: a third-party agency will evaluate compensation values of demolished houses. The values will be compared with prices of resettlement houses. If the value is lower than the price, APs should pay for the difference for the resettlement houses. However, if the value is higher than the price, the APs will receive a compensation for the difference. APs also receive transition and moving subsidies. APs have priority to select floors and types of the resettlement houses.

4. Resettlement and Restoration Action. Based on social and economic survey and public consultation with APs, the following measures to restore livelihood of APs are prepared, including: (i) using the compensation to do some business, like transportation, or operation of some shops; (ii) participating in social insurance for land-loss farmers to ensure their livelihood level will not be lowered; (iii) local government will assist APs in adjusting agricultural planting structure, provide planting guidance and technical training, expand planting area of cash crops (crops are planted for sale), and develop animal breeding to improve the income; (iv) the PMO will provide temporary unskilled jobs as priority to APs during subproject construction. The PMO will organize technical training for APs, and make sure all affected labor receive at least 2 times of training on farming and non-agricultural work.

5. Organization Structure. The Hutubi subproject IA will be responsible for the subproject implementation, LA and coordination. The LA and HD office will be composed of officials of the urban land administration bureau, construction bureau, and each affected sub-district office or community committee. Each unit will provide one member to the office to be responsible for LA consultation and income restoration activities.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

6. Public Participation and Information Disclosure. From June 8 to 12, 2016, a survey was conducted for the Impact scope of the LAR of the subproject. During June to August 2014, with the assistance of PPTA Resettlement specialists, the PMO and the relevant staff of the RP preparation agency conducted a supplementary survey of the affected land, households and people, and a public opinion and advice survey of the APs and affected entities. For understanding local socio-economic status, different fields staffs are consulted, who come from Hutubi County Land Administration Bureau, house acquisition office, Ershilidian Township, Yuanhucun Township, Xiatougong Village, and Yuanhucun Township Liangzhongchang, and exchange views on compensation standards and measures of livelihood restoration. The implementation process of the LAR is discussed with local governments. Representatives from the HCG, the Hutubi PMO, Land Administration Bureau, Civil Affairs Bureau, women federation, urban planning bureau and other relevant government agencies as well as affected villages, towns and townships and APs attended the public consultations and meetings. The concerns of the APs and their suggestion have been included in the RP.

7. Grievances and Appeals. Hutubi PMO has established a detailed complaint and appeal procedure. The APs can complain about any problems related to the LAR in following procedures to (i) village committees/sub-district office; then (ii) Hutubi County Urban Land Administration Bureau; then (iii) Hutubi PMO; and then (iv) the HCG. The responsible agencies must reply to any complaint in a definite period. The APs may file a lawsuit to the civil court at any time under Civil Procedure Law or report problems to the ADB in accordance with its Accountability Mechanism (2012). The APs may file appeals about any aspect of the LAR.

8. Resettlement Budget. The total resettlement cost is estimated at CNY77.99 million, including (i) land acquisition of CNY23.97 million, accounting for 30.73%; (ii) HD compensation of CNY36.67 million, accounting for 47.01%, (iii) the attachment compensation of CNY0.12 million, accounting for 0.16%; (iv) RP preparation, training, contingency and monitoring of CNY9.18 million, accounting for 11.76%; and (v) taxes and fees of CNY8.06 million, accounting for 10.34%. The IA ensures that adequate resettlement funds will be available in a timely manner to cover all necessary resettlement issues.

9. Implementation of Resettlement Plan. The LAR will be implemented from May 2017 to December 2020. The subproject construction will be commenced only after the updated RP is acceptable to ADB and that full compensation has been paid to the APs.

10. Monitoring & Evaluation and Reporting. Internal and external monitoring on implementation of the RP will be conducted. Hutubi PMO will carry out the internal monitoring, and a monitoring report, as one of key contents of subproject progress reports, will be submitted to ADB quarterly. Xinjiang Uygur Autonomous Region PMO will assistant Changji Prefecture PMO and Hutubi PMO to entrust an independent experienced resettlement monitoring agency to conduct external monitoring and evaluation and report to ADB every six months during implementation of the subproject. The monitoring and evaluation fees have been included in the total budget of the RP.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

1. Overview 1.1. Introduction

1. The Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project is designed to improve living conditions in both urban and rural areas in Changji. The intended Hutubi County subproject outcome is increased urban and rural residents' accessibility to quality urban infrastructure services in Hutubi. The subproject will help accomplish this by (i) improving urban services infrastructure; (ii) constructing or rehabilitating urban-rural road infrastructure; (iii) installing technical and vocational skills training facilities; and (iv)developing project management capacity of government agencies and community groups. 2. The process of extending and upgrading infrastructure, however, will require that some people are economically and physically displaced. The purpose of this RP is to ensure that displacement is avoided to the extent possible, and otherwise minimized and mitigated appropriately. 3. Hutubi County is one of the three subprojects of the Xinjiang Changji Urban-Rural Infrastructure Demonstration Project, which will be financed by Asian Development Bank (ADB). The subproject includes five parts: (i) Road Construction: construction of 3 roads with length of 7.96 km, including 1 new cover culvert, round 15 pipe culverts, and 7 inverted siphons; (ii) Urban utility pipes: (a) Water Supply: all of these pipelines will be newly built and the total length is 1,043 m, among which are 8,028 m of water supply pipes and 2,048 m of crossing reservation pipes, with diameter of dn200 and PE100; (b) Water Drainage: installation of 10,432 m of drainage pipelines, with diameter of dn400 and material of HDPE; (c) District Heating: installation of 2 x 9,220 m of hot water pipelines, with diameter of dn250-500 and material of Q235-B; and (d) Gas engineering works: installation of 9,900 m of gas pipelines, with diameter of dn160, pressure of 0.4 MPa and material of PE. (iii) Capacity building in (a) strengthening technical and vocational education and training at Hutubi County Senior Secondary Technical School; and (b) subproject management of implementing agency and subproject implementation units. 4. The construction of new roads will cause the land acquisition and house demolition involved in the subproject, so a resettlement plan is necessary for the preparation of the land acquisition and house demolition caused by the subproject. In addition, on the basis of the overall development plan and comprehensive land use planning, part of land acquisition work on Changhua Road had been completed already; the ownership of the land belongs to Yuanhucun Town Liangzhongchang. Therefore, a detailed Due diligence report has been prepared for the land that had been acquired; for the details, see in Appendix 5. The loan subproject of Hutubi County has been included in the overall plan of Hutubi County. According to the plan, it will start in 2017 and end in December 2021. The LA is planned to start in May 2017, and end in December 2020.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

The implementation agency of the subproject is Hutubi County Government, and the subproject implementation unit for the Hutubi Road component is the Bureau of Housing and Urban-rural Construction of Hutubi County. The subproject contents are presented in Table 1-1. Table 1-1: Subproject Contents No. Subproject Content and scale Impact The newly constructed roads will involve HD and LA; 149 households with 548 people will be affected in total, including HD affecting 53 households with 212 people, and LA affecting 96 households with 336 people. Construction of 3 roads with There are in total of 149 households with 548 length of 7.96 km, including people affected by the subproject, in which 1 Road construction 1 new cover culvert, 15 there are 46 households with 184 people round pipe culverts, and 7 including 23 households with 95 ethnic inverted siphons minorities affected by HD only; and 96 households with 336 people including 30 households with 103 ethnic minorities affected by LA only; and 7 households with 28 people including 4 households with 17 ethnic minorities affected by LA and HD. All of these pipelines will be newly built and the total length is 1,043 m, among According to the principle of first buried tube, Water supply which are 8,028 m of water after paving the road, there will be no LA and supply pipes and 2,048 m of HD. crossing reservation pipes, the diameter is dn200 Urban Installation of 10,432 m of According to the principle of first buried tube, 2 utility Water drainage drainage pipeline, with after paving the road, there will be no LA and pipes diameter of dn400 HD. Installation of 2 x 9,220 m of According to the principle of first buried tube, District heating hot water pipeline, with after paving the road, there will be no LA and works diameter of dn250-500 HD. Installation of 9,900 m of According to the principle of first buried tube, Gas engineering gas pipelines, with diameter after paving the road, there will be no LA and works of dn160, and pressure of HD. 0.4 MPa. (a) strengthen technical and vocational education and training at Hutubi County Senior Secondary Technical 3 Capacity building School; and (b) subproject not involved LA and HD. management of implementing agency and subproject implementation units. Data Source: From the feasibility study report (FSR) of the subproject.

Table 1-2: Subproject Scale Red Motor Non motor Green line Length vehicle Sidewalk Name Road property vehicle lane belt width (m) lane width width (m) width (m) width (m) (m) (m) Dongfeng Avenue Main road 45.0 2,354.66 21.0 2 × 4.0 2×4.0 2×4.0 Hufang Road Secondary road 32.0 3,676.96 16.0 0 2×4.0 2×4.0 Changhua Road Access road 32.0 1,927.67 16.0 0 2×4.0 2×4.0

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Figure 1-1: Road Network of Hutubi County (Proposed roads in red line)

Figure 1-2: Proposed Roads and Affected Communities/villages

1.2. Impact Scope of Land Acquisition and Resettlement

5. According to the feasibility study report (FSR) of the subproject, construction of 3 new roads will involve LA and HD. It will affect 2 towns (Ershilidian Town and Yuanhucun Town), 2 villages

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(Hezhuang and Xiatougong) and 1 state-owned farm (Liangzhongchang in Yuanhucun Town). A total of 149 households with 548 people will be affected, including 57 households with 215 ethnic minority people, accounting for 39.23% of the total population. 46 families with 184 members are affected by HD only, and 96 families with 336 members by LA only, and 7 families with 28 members by both.

6. A total land area of 360.61 mu will be acquired, permanently affecting 103 households with 364 people (including 7 households with 28 people by both LA and HD), including 13.18 mu of state-owned land. The state-owned land consists of (i) 6.35 mu of cultivated land (nursery land), affecting 3 households with 12 people, including 2 households with 8 ethnic minorities; (ii) 2.75 mu of state-owned residential land, where the affected population is included in the population to be demolished without further calculation; (iii) 4.08 mu of state-owned construction land, all of which is open space, without any supplementary items and buildings, so without any effect on the population. In addition, 347.43 mu of collective land will be acquired, which consists of (i) 197.35 mu of collective farm land, affecting 100 households with 352 people (including 7 households with 28 people by both LA and HD), including 32 households with 112 ethnic minorities; (ii) 110.42 mu of collective reserved land, which used to be arable land, with no current farm road. In order to make it convenient for farmers’ ploughing, they built the farm road by themselves; according to verification from L&R Bureau and village committee, the ownership of the reserved land belongs to village. The compensation standard will be in accordance with arable land, that is, the land compensation fee and resettlement subsidy will be paid to the village, without young crops fee, because the farm road belongs to collective reserved land. No individuals are involved, so there is no affected population; (iii) 39.66 mu of collective homestead land, where the affected population is included in the population to be demolished without further calculation.

7. About 18445.35 m2 of house area will be demolished, affecting 53 households with 212 people (including 7 households with 28 people by both LA and HD) including 27 ethnic minority families with 112 members.

8. According to the survey, the subproject will not involve the demolition of stores or enterprises.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 1-3: Summary of Land Acquisition and Resettlement Impacts Item Total Towns involved in the Subproject 2 Villages involved in the Subproject 2 State-owned farm involved in the Subproject (Liangzhongchang) 1 Subtotal 13.18 Cultivated land (nursery land) 6.35 State-owned land (mu) Residential land 2.75 Construction land 4.08 Subtotal 347.43 Cultivated land (nursery land) 197.35 Collective land (mu) Homestead 39.66 Collective reserved land 110.42 Subtotal 18,445.35 HD (m²) On urban residential land 18,445.35 LA only (HH) 96 Population (person) 336 Both LA and HD (HH) 7 Affected population Population (person) 28 HD only (HH) 46 Population (person) 184 Affected households (HH) 149 Affected population (person) 548 Source: Socio-economic survey June to August 2016

1.3. Optimizing Project Design to Reduce Resettlement Impacts 9. In the engineering design phase, the Impact of the LAR should be minimum; the main principles are following: ‹ To avoid or minimize the occupation of existing and planned residential areas (rural and urban); ‹ To avoid or minimize the acquisition of high quality arable land; ‹ To use existing state and local roads towards to the proposed construction area; ‹ To avoid or minimize the occupation of environmentally sensitive areas; and ‹ To select the resettlement areas in line with the local development plan. 10. The road route selection should be combined with existing roads to avoid or reduce occupancy of existing building and cultivated land.

11. The original subproject plans to build 4 new roads: Hufang Road, Changhua Road, Dongfeng Avenue and Yangguang Road; the subproject will involve in total 405.41 mu of land and affect 120 households with 422 people, involving 23,172.82 m2 of HD and affecting 61 households with 204 people. After field consultation with the affected village and residents, the PMO and design institute (DI) decided to abandon the Yangguang Road construction, which avoids about 3,727.47 m2 of HD and 44.80 mu of LA affecting 24 households. Details are presented in Table 1-4.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 1-4: Comparison of the Affected Area before and after Design Optimization

Item Before design After design Unit Decrease optimization optimization Cultivate land mu 228.43 203.7 -24.73 Collective mu 110.42 110.42 0 reserved land Permanent LA Residential land mu 5.13 2.75 -2.38 Construction land mu 6.54 4.08 -2.46 Homestead mu 54.89 39.66 -15.23 Sub-total mu 405.41 360.61 -44.8 Residential land m2 23,172.82 18,445.35 -4,727.47 HD Sub-total m2 23,172.82 18,445.35 -4,727.47 Household HH 120 96 -24 Cultivate LA Population person 422 336 -86 Household HH 7 7 0 LA and HD Population person 28 28 0 House/building Residential HH 61 46 -15 demolition Population person 204 184 20 Source: The design institute and Socio-economic survey of July 2016

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

2. Impact Scope 2.1. Types of Impacts 12. Based on the feasibility study report (FSR), the main types of Impacts of the subproject include: (i) Land acquisition of collective and state-owned land; (ii) House demolition of residents and attachments; (iii) House demolition of urban and rural and public institutions; and (iv) Losses of ground attachments and infrastructure.

2.2. Methodology and Procedures

13. The Hutubi PMO, design institute (DI) and RP preparation agency conducted a site survey to identify the subproject impact scope on 8 to 12 June 2016 with Hutubi County Construction Bureau.

14. On July 14-23, 2016, training to the governmental staff involved in the preparation of the Resettlement Plan was held at Bureau of Housing and Urban-rural Construction of Changji for the use of ADB loans to coordinate the implementation of urban and rural infrastructure demonstration project. Both the PRC and ADB’s policies related to LAR and indigenous peoples, and contents required for the RP and EMDP were introduced. In addition, the detailed survey methodology and questions were explained to the survey staff.

15. During June 7 to August 1, 2016, with the assistance of PPTA Resettlement specialist, the RP preparation agency conducted a field survey of the impact scope of the subproject with the DI, including physical indicators of the affected population, houses, land and special facilities, as well as affected residents and rural collective economic organizations, and a case study of affected residents.

16. The surveys were conducted in a combination of field investigation, data collection and inquiry, questionnaire survey and interview, including: Land acquisition survey: The survey team surveyed the area of the acquired land by ownership and type after the DI defined the range of land acquisition by field setting-out. House demolition survey: Locations, structures and areas of affected houses and buildings were surveyed. Socio-economic survey: A sampling survey of affected population, including ethnic group, age, educational level and employment status etc.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Scattered tree survey: Scattered trees within the affected areas were counted on spot to differentiate fruit trees and other trees, and registered by species. Special facility survey: The affected water resources, electric power and telecommunication facilities were surveyed based on the existing information of the competent authorities, and verified and registered on spot.

2.3. Impact and Risk Identification 17. According to the feasibility study report (FSR) of the subproject, the land acquisition (LA) and house demolition (HD) of the subproject will affect 2 towns (Yuanhucun Town and Ershilidian Town), 2 villages (Hezhuang and Xiatougong) and 1 state-owned farm (Liangzhongchang Farm in Yuanhucun Town), and 149 households with 548 people will be affected, of which 57 households with 215 persons are ethnic minorities, accounting for 39.23% of the total number of affected persons (APs). 46 families with 184 members are affected by HD only, and 96 families with 336 members by LA only, and 7 families with 28 members by both.

18. A total land area of 360.61 mu will be acquired, permanently affecting 103 households with 364 people (including 7 households with 28 people by both LA and HD), including 13.18 mu of state-owned land. The state-owned land consists of (i) 6.35 mu of cultivated land (nursery land), affecting 3 households with 12 people, including 2 households with 8 ethnic minorities; (ii) 2.75 mu of state-owned residential land, where the affected population is included in the population to be demolished without further calculation; (iii) 4.08 mu of state-owned construction land, all of which is open space, without any supplementary items and buildings, so without any effect on the population. In addition, 347.43 mu of collective land will be acquired; the collective land consists of (i) 197.35 mu of collective farm land, affecting 100 households with 352 people (including 7 households with 28 people by both LA and HD), including 32 households with 112 ethnic minorities; (ii) 110.42 mu of collective reserved land, which used to be arable land; in order to make it convenient for farmers’ ploughing, they converted the lands to farming roads. According to verification from L&R Bureau and the village committee, the ownership of the reserved land belongs to the village. The compensation standard will be paid to the village in accordance with arable land, including land compensation fee, and resettlement subsidy, but without young crops fee. Since no individuals will be involved, there is no affected population; (iii) 39.66 mu of collective homestead land, where the affected population is included in the population to be demolished without further calculation. 19. About 18445.35 m2 of house area will be demolished, affecting 53 households with 212 people (including 7 households with 28 people by both LA and HD) including 27 ethnic minority families with 112 members.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

20. According to the survey, the subproject will not involve the demolition of stores or enterprises. 21. There are a total of 149 households affected by LA and HD, of which, 96 households involved in LA, accounting for 8.8% of total 1692 households; and 53 households affected by HD, accounting for 3.7% of total 1436 households. Due to the relatively low percentage of LA and HD, the subproject is expected to pose little impact to livelihoods in the short to long term. 22. According to the survey, the income sources of the APs are mainly from business and work labor, the business income accounting for 29.07%, work labor accounting for 28.22%, and the wage income accounting for 19.47% and the farming income accounting for 11.40%.Due to the relatively lower percentage of income derived from agricultural activities, as identified during the socio-economic survey, the project is expected to pose little risk to livelihoods in medium- and long-term social and economic shock.

2.3.1. Impacts by Each Road

23. Hufang Road: It is a new road. The road is from south to north, connecting Wuchang Avenue and Jinhua Avenue. Some sections of the pavement are simple asphalt, and some sections are gravel pavement. The construction will acquire land of 163.44 mu, including 110.42 mu of collective reserved land of Hezhuang Village. The reserved land used to be arable land. Since there were no farming roads, the villagers converted the land to farm roads themselves. According to verification from L&R Bureau and the village committee, the ownership of the reserved land belongs to the village. The compensation standard will be in accordance with arable land, including land compensation fee and resettlement subsidy, with no young crops fee. Since no individuals will be involved, there is no affected population; and 41.37 mu of individual land will affect 11 households with 54 people in Hezhuang Village (7 households with 36 ethnic minorities and 1 households with 6 people by both LA and HD); 7.57 mu of homestead land, where the people affected have been included in the population affected by HD; and 4.08 mu of stated-owned construction land, which is an open space without ground attachments and affected people.

24. Changhua Road: It is a new road. It is an access road from east to west, connecting Changhua Road and Guihua Road. Changhua Road is between Wuyi Road and Dongfeng Avenue. The total area of Changhua Road is 61.21 mu. According to the master plan of the county development and land use of Hutubi County, parts of the land in Liangzhongchang Farm (state-owned) of Yuanhucun Town have been acquired. The construction design of Changhua Road within this area accounts for 20.58 mu of land, with 11 households and 39 people affected. The construction of Changhua Road will acquire land of 40.63 mu, with house demolition area of

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

6,384.96 m2; 45 HHs with 152 people will be affected by HD and LA, of which HD will affect 14 households with 57 people, including 4 HHs with 12 minority people. LA will affect 26 households with 78 people, including 22 HHs with 65 minority people. Both HD and LA will affect 5 HHs with 17 people, including 3 HHs with 11 minority people. It will acquire 23.49 mu of individual land in Hezhuang Village, affecting 28 HHs with 83 people; and acquire 8.04 mu of collective homestead land in Hezhuang Village. The affected people have been included in population affected by HD. 6.35 mu of state-owned cultivated land will be acquired, affecting 3 households with 12 people; and 2.75 mu of state-owned residential land will be acquired. The affected people have been included in the population affected by HD.

25. Dongfeng Avenue: The road is from east to west, connecting Xiyuchun Street and Liqing road, with no current road. The construction of Dongfeng Avenue will acquire 156.54 mu of land in total, 2,864.54 m2 of house area will be demolished, 73 households with 257 people will be affected by HD and LA, including 12 households with 42 people (1 household of 4 minority people) will be affected by HD only; and 60 households 210 people (including 1 household with 5 people by both LA and HD, and 2 households with 8 minority people) will be affected by LA only. 1 household with 5 people will be affected by both HD and LA. 132.49 mu of collective farm land in Xiatougong Village of Ershilidian Town will be acquired, affecting 61 HHs with 215 people, including 2 HHs with 8 minority people. It will acquire 24.05 mu of collective homestead; the affected people have been included in the population affected by HD.

2.3.2. Urban utility pipes

26. Water Supply Component: Install the water supply pipelines along the new construction road (Hufang Road, Changhua Road, Dongfeng Avenue). The water supply network will not involve LAR and temporary land occupation and the installation of pipeline is along the newly build road, according to the "first buried tube, after paving the way" principle so there is no additional recovery. There is no impact on HD, because there is no ground attachment or buildings. According to the survey, there are in total of 3 water treatment works in Hutubi County. The first water plant built in October 1978, accounted an area of 1 ha (15 mu); through the confirm and survey of Land and Resource Bureau, the land belonging to state-owned unused land, the water supply capacity is 3500 m3/d, the source of the water is underground water, because it can’t meet the water supply demand, it has been cut off in 2005 as a reserved water plant. The second water treatment works built in 1994, accounted an area of 3 ha (45 mu), through the confirm of Land and Resource Bureau, the land belonging to state-owned unused land and with any attachments and infrastructure and affected population, the detailed land type and ownership description see in Appendix 6. There are 8 deep water source wells in the plant (2 wells built in 1994, 4 wells in 2004, 1 well in 2014, and 1 well in 2015), among which there are 2 wells has been rejected because of no water. The plant has a stage two pressure pump station and 3 pressure pumps; at present it utilizes the terrain gap pressing into the county urban water supply

10

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject network, the water supply capacity is 25,000 m3/d. The third water treatment works was built in 2015, the main structure construction of Water quality monitoring and automatic control center, Purification room, Clear water tank and so on have been completed, and planned to be put into use in June 2017. The designed water supply capacity is 90,000 m3/d in the short term and it will reach 130,000 m3/d in the long term. Through the confirmation of Land and Resources Bureau, the plant occupied 2.8 ha (42 mu) of state-owned unused land and without any attached infrastructure and affected population, and the Environmental Assessment Report of the subproject has confirmed that there are no people in the water source protection area, so there is no population affected by the protection of water sources. The detailed land type and ownership description is in Appendix 7. 27. Drainage Component: Install the water drainage pipelines along the new construction road (Hufang Road, Changhua Road, and Dongfeng Avenue).The drainage network project will not involve permanent LAR; the installation of the pipeline is along the newly built road, according to the "first buried tube, after paving the road" principle so there is no additional recovery. According to the survey, the Fengquan sewage disposal plant of Hutubi County was constructed in May 2003 and completed in 19 September 2008. The sewage disposal capacity is 20,000 m3/d in the short term and will reach 50,000 m3/d in the future. The pipeline network accounted for an area of 17.91 km2, and reached 71000 people. The sewage disposal coverage is 100%, including 90% domestic sewage and 10% of industrial sewage. According to the confirmation of Land and Resource Bureau, the sewage disposal plant occupies an area of 1.8 ha (27 mu) of state-owned unused land and is without any attached infrastructure and affected population. The detailed land type and ownership description is in Appendix 8. 28. Heating Component: Install the heating pipelines along the new construction road (Hufang Road, Changhua Road, and Dongfeng Avenue). The heating network will not involve LAR. And the installation of pipeline is along the newly build road, according to the "first buried tube, after paving the way" principle so there is no additional recovery. There is no impact on HD, because there is no ground attachment or buildings. According to the survey, the cogeneration central heating engineering (heat source plant) of Hutubi County started to construct in September 2011, and has put into operated since August 2013. The designed capacity is 2×300MW+2×600MW, and the largest heating area is 12,340,000 m2. According to the information from Hutubi Land and Resource Bureau, the heating plant took 25.60 ha (384 mu) state-owned unused land and without any attachments and infrastructure and affect population. The detailed land type and ownership description see in Appendix 9. 29. Gas Component: Install the gas pipelines along the new construction road (Hufang Road, Changhua Road, and Dongfeng Avenue). The gas network will not involve permanent LA, and the installation of pipeline is along the newly build road, according to the "first buried tube, after paving the way" principle so there is no additional recovery. There is no impact on HD, because there is no ground attachment or buildings. According to the survey, the gas plant of Hutubi County was built in 1999 and put into use in 2000, at present, the install of the gas pipe has completed about 80 km, and the gas supply capacity is 20000 m3/d, there are in total of 18000 households use the gas; through the confirm of the Land Bureau, the plant occupied 0.35 ha (5.25 mu), state-owned unused land and without any attachments and facilities. The detailed land type and ownership description see in Appendix 10.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Subproject Hutubi County Subproject

Table 2-1: Detail Impact Scope

HD Impact People affected by LA and HD LA (mu) People affected by LA only Residents house demolition HD area area (m HD household household household household household household Constructi Cultivated Cultivated Affected Affected Affected Affected Affected Affected Affected Affected Affected Affected Affected Affected Affected minority minority minority minority minority minority minority on land on Unused people people people people people people people 2 land land Item ) s s s s

3 1

2

Hufang 11.6 9,195.8 151.79 10 48 6 30 20 85 18 78 1 6 1 6 Road 5 5 Changhua 10.7 6,384.9 Road 29.84 26 78 22 65 14 57 4 12 5 17 3 11 Road 9 6 compone Dongfeng 24.0 2,864.5 nt 132.49 60 210 2 8 12 42 1 4 1 5 0 0 Avenue 5 4 46.4 18,445. Subtotal 314.12 96 336 30 103 46 184 23 95 7 28 4 17 9 35 Water — supply component Drainage Component — Heating Component — Gas engineering — works Subtotal 46.4 18,445. Total 314.12 0 96 336 30 103 46 184 23 95 7 28 4 17 9 35 Source: Socio-economic survey, July 2016

1 Agricultural land includes: cultivate land (nursery land). 2 Construction land includes: Collective construction land, state-owned construction land, homestead and residential land. 3 Unused land including: Village collective unused land and state-owned unused land. 12

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

2.4. Collective Land Acquisition Impact

30. A total of 347.43 mu of rural collective land will be acquired permanently, including (i) 197.35 mu collective farm land, affect 100 households 352 people (7 households with 28 people of both LA and HD), including 32 households 112 ethnic minorities; (ii) 110.42 mu collective reserved land, actually, the reserved land used to be arable land, no current farm road, in order to make it convenient for farmers’ ploughing, they built the farm road by themselves, according to verification from L&R bureau and village committee, the ownership of reserved land belongs to village, the compensation standard will be in accordance with arable land, that is to say land compensation fee, and resettlement subsidy will be paid to village, no young crops fee, because the farm road belongs to collective reserved land, no individuals involved, so there is no affected population; (iii) 39.66 mu collective homestead land, affected populations are included in the population to be demolished without further calculation. The detail is in Table 2-2.

Table 2-2: Collective Land Acquisition Analysis Type Name Village Cultivated land Homeste Constructi Collective Subtot (nursery land) ad on land reserved al Hufang Hezhuang 41.37 7.57 0.00 110.42 159.36 Road Village Changhua Hezhuang 23.49 8.04 -- -- 31.53 Road Village Dongfeng Xiatougong 132.49 24.05 -- -- 156.54 Avenue Village Total 197.35 39.66 -- 110.42 347.43

Source: Socio-economic survey July 2016

31. There are 39 households with 137 people in the 2 LA villages. The subproject will acquire 64.86 mu collective land in Hezhuang Village, the total land loss rate is 14.57%; 132.49 mu collective land and affect 61 households 215 people of Xiatougong Village in Ershilidian town, the total land loss rate is 11.79%.

Table 2-3: Land Loss Rate analysis

No. Land Area before LA Area Loss Affected Villages HHs APs LA (mu) (mu) Rate 1 Hezhuang Village 39 137 445.2 64.86 14.57% 2 Xiatougong Village 61 215 1124.2 132.49 11.79% 3 Total 100 352 1569.4 197.35 26.35%

Source: socio-economic survey July 2016

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

32. The land acquisition of the subproject was caused by the road construction which present in linear distribution, most of the AHs only loss a little part of their land; therefore, they have a slight Impact on their production. Table 2-3 shows that biggest Impact of the land loss is 31-40%, only 2 households (2%) will be affected; the detailed is shown in Table 2-4.

Table 2-4: Affected Households’ Land Loss Rate No. Range of Land loss rate Hezhuang Village Xiatougong Village Total % 1 ＜5% 0 8 8 8.00% 2 5%-10% 3 21 24 24.00% 3 11%-20% 33 22 55 55.00% 4 21%-30% 2 9 11 11.00% 5 31%-40% 1 1 2 2.00% 6 Total 39 61 100 100.00%

Source: socio-economic survey July 2016

2.5. Impacts of State-owned Land Acquisition

33. A total of 13.18 mu of state-owned land will be acquired permanently, including (i) 6.35 mu of cultivated land (nursery land), affect 3 households 12 people, including 2 households 8 ethnic minorities; (ii) 2.75 mu state-owned residential land, affected populations are included in the population to be demolished without further calculation; (iii) 4.08 mu state-owned construction land, all these land are open space, without any supplementary items and buildings, so no effect on the population. See in Table 2-5. Table 2-5: State-owned Land Occupation

Subproject Cultivate land (nursery Construction Residential Road name name land) land land

Hufang Road -- 4.08 -- Road component Changhua Road 6.35 -- 2.75 Dongfeng ------Avenue Source: Socio-economic survey July 2016

34. In Changhua Road, the subproject will occupy Liangzhongchang’s state-owned cultivate land in Yuanhucun Town 6.35 mu and will affect 3 HHs with 12 people, including 2 HHs with 8 ethnic minority people.

35. Liangzhongchang Farm is a self-financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery Land of Hutubi County, the south is Wuyi road, the west is Shazhou road, and the north is the cattle farm. At present, there are 2 production teams with 256 HHs 845 people, and 5 kinds of minority groups as Hui, Han, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject total area of 1500 mu, at present there are 960 mu cultivate land around the farm and other 5000 mu in Aweitan, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plants wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17,200 in 2015. Table 2-6: Land Loss Rate Analysis in Liangzhongchang Farm

Affected LA Area No. Land Type APs Loss Rate Farmers Land Area before (mu) LA (mu) 1 Cultivated land Mr. Bi 4 16 2.30 14.38% 2 Cultivated land Mr. Ma 4 14 2.30 16.43% 3 Cultivated land Mr. Ma 4 10.5 1.75 16.67% Source: socio-economic survey July 2016

36. It will occupy permanently 4.08 mu of state-owned construction land for Changhua Road, all of which is open space, without any attachments or buildings, no any affect people. For Changhua Road, 2.75 mu state-owned residential land will be affected. The affected persons are calculated in the population to be demolished.

Figure 2-1: Hufang Road land acquisition status

2.6. Impacts of House Demolition

37. The subproject involves 18445.35 m2 of rural house demolition, affect 53 households 212 people (including 46 households with 184 people LA only, and 7 households with 28 people by both LA and HD) including 27 ethnic minority families with 112 members. The demolished house is mainly the bungalow along the both side of the road; the structures are mainly brick-concrete, color steel brick, color steel, brick-wood and earth-wood. The house demolition area is 18445.35 m2, among which the HD area in Changhua Road is 6,384.96 m2, in Hufang Road is 9195.85 m2, and in Dongfeng Avenue is 2,864.54 m2. For detail, see in Table 2-7. 15

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 2-7: Affected House Demolition

Item Structure Unit Changhua Road Hufang Road Dongfeng Avenue Brick-concrete m2 747.03 5370.55 154.17

Main room Brick-wood 2 746.63 242.14 245.80 Non-main room m Earth-wood m2 2420.98 386.75 1136.21 Brick-concrete m2 802.96 588.08 —

Main room 2 Brick-wood m 60.25 423.24 — Non-main room Main room Earth-wood m2 — — — Color steel brick m2 507.00 1,234.61 — Brick-wood m2 754.64 287.40 779.39 Non-main room Earth-wood m2 150.25 — 548.97 Basement m2 15.00 — — Brick-concrete m2 — 204.97 — Color steel brick m2 — 204.02 — Shed Brick-wood m2 — 254.09 — Earth-wood m2 180.22 — — Total 6,384.96 9,195.85 2,864.54 Category Household Population HD Only 46 184 Ethnic minority 23 95 LA Only 96 336 Ethnic minority 30 103 Both HD and LA 7 28 Ethnic minority 4 17 Source: Socio-economic survey July 2016

Figure 2-2: The demolished house status (left is Changhua Road / right is Dongfeng Avenue)

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

2.7. Affected Vulnerable Groups 38. Vulnerable groups in the subproject refer to those individuals and their families whose living standard is lower than the minimal living standard line of Hutubi County (the implementation of urban and rural integration in Hutubi County in 2014, the standard line of rural and urban people are the same about CNY390 CNY/month/person), including orphan, aged people, handicapped people, mentally disabled persons, impoverished people, and women headed households.

39. According to the survey, there are 1 AHs with 4 people belong to the vulnerable groups, as presented in Table 2-8.

Table 2-8: Affected Vulnerable Households LA Household House Are Population N Demoliti APs a Total Labo Income Source Reason Remark o. on area 2 (mu populati r (m ) ) on force Land leasing rent, Disabled, outside working, lack of 1 Mr. Li — 1.4 4 2 LA Subsistence work allowances force Total — 1.4 4 2 Source: socio-economic survey July 2016

40. Mr. Li, male, 54 years old, Han nationality, deaf, villagers of Xiatougong Village, low-income and poor household, there are four people in the family, his wife named Miss. Xu, 49 years old, disabled, and they have two daughters, the eldest is 26 year old and married now, the youngest daughter is 21 years old and she has a shop. Both of the couples are disabled, Mr. Li is a deaf mute and has a serious heart attack, and his wife suffered from heavy osteomyelitis, the couples lost the basic ability to work which resulted in a poor family economy; the income mainly from the shop of their youngest daughter about CNY2,000-3,000/month and land they lease out to others at; in addition, during the festival they will receive the life subsidies and other items from government, such as rice, noodles, oil and coal to maintain their livelihood. Although the subproject will impose a small portion of their land, but the family support the subproject very much, they expressed that the government must make sure that they can get a reasonable compensation, and they hope that their daughter could get a temporary job in the subproject during the construction to enhance the income and living quality of the family.

2.8. Affected Ethnic Minorities 41. In the total of 548 APs, there are 215 people from 57 minorities HHs (mainly Hui people, see below table 2-9), accounting for 39.23%. On the basis of the socio-economic survey, the minorities live together with groups. They enjoy their social status, and keep their national characteristics in

17

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject the habits and religion. In addition, their economic status or annual income is similar with Han. All minorities people support the subproject although the subproject will affect HD of 27 HHs ethnic minority, the affect houses are no difference with Hans’ on the building style and structure, furthermore, mosques are located nearby the resettlement sites, where is convenient for the ethnic minorities to do worship. In terms of the language, the Uygur has its own languages --- Uyghur, belonging to Altai language family; and the Kazak also speaks its own languages --- Kazakh, also belonging to Altai language family; because they belong to the same language family, the Uygur and Kazak could understand each other since their writing and language are similar; As for the Hui people, they do not have their own languages, they use Han language, but they also have their own cultural attribute. As for the land acquisition, the ethnic minorities have the same compensation rights or entitlements with Han nationality; in addition, the ethnic minorities will obtain the job opportunities and technical training program in priority.

Table 2-9: Nationality and Distribution of Affected Minority People

Affected Type Minority Uygur Hui Kazak population of HH Populatio HH Populatio HH Populatio HH Populatio HH Populatio effect s n s n s n s n s n Only 46 184 23 95 0 0 22 91 1 4 HD Only 96 336 30 103 3 15 25 80 2 8 LA Both LA and 7 28 4 17 0 0 4 17 0 0 HD Total 149 548 57 215 3 15 51 188 3 12 Source: socio-economic survey, July 2016

2.9. Affected Attachments and Infrastructure 42. The ground attachments and infrastructure affected by 3 road construction of the subproject are shown in Table 2-10. Table 2-10: Affected Attachments and Infrastructure

Compensation Item Total Nature standard

3 900 Individual Percolation well 37 1000 Individual

3 500 Individual

1 750 Individual Vegetable cellars (m³) 1 1000 Individual

1 1200 Individual

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Compensation Item Total Nature standard

3 1200 Individual Nang Pit 1 750 Individual

96 45 Individual

25-50 cm 17 55 Individual Polar 2 150 Individual

>50 cm 2 200 Individual

4 20 Individual 5 cm 291 15 Individual

108 30 Individual

80 40 Individual

5-15 cm 11 45 Individual

Elm 44 50 Individual

48 55 Individual

27 55 Individual 15-30 cm 59 60 Individual

45 120 Individual 30 cm 35 200 Individual

5 cm 116 20 Individual

27 300 Individual Fruit tree 5-15 cm 1 90 Individual

67 150 Individual

Jujube tree 5-15 cm 21 90 Individual

Peach tree 5-15 cm 4 90 Individual

Fraxinus chinensis 5-15 cm 1 40 Individual

31 100 Individual

Grape Fruit 33 120 Individual

27 150 Individual

5-15 cm 1 25 Individual Broadleaf tree 15-30cm 1 150 Individual

Plum trees 1 90 Individual

Wooden wire rod 89 200 State-owned

High voltage wire rod 1 400 State-owned

Source: Socio-economic survey July 2016

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

3. Socioeconomic Profile of Affected Areas

43. In order to learn more about their living and production condition and the suggestions to the subproject of the affect people, under the guide of PPTA specialists, the Hutubi PMO, the design institute and RP preparation team work together with the Bureau of Housing and Urban-rural Construction of Hutubi County carried out the field survey and social economic survey among the subproject area during June to August 2016. The survey carried on among the different groups of economic condition, nationalities, gender, ages, etc., to learn about the condition of LA and HD residents and what they need. Given the different people has different demands to the subproject, the specific analysis to the demands of different people will benefit to the identification of the subproject impact and avoid the negative impact of the subproject as can as possible and also promote the smooth implementation of the subproject. 44. Through the questionnaire survey, interview, discussion, observation and other methods, make a fully understanding and communication with the affect groups, provides a quantitative material which is consulted by the local government, opinions of LA and HD affected people, the demands analysis of women and ethnic minorities, the social analysis of the affected community and so on, for the preparation of the report as well as for the evaluation and impact identification of the subproject, and combined with the complementary measures to stress the positive impact and eliminate the negative impact. 45. In order to improve their living and income condition of the affect people as soon as possible, through fully consulting, the PMO not only provides the LA compensation measures, but also prepare the living and production restoring plan in accordance with what they need and the actual condition of the affect people, and also discussed with the affect people about the suggestions and opinions of training, these suggestions and opinions has been collated and summarized in this report. 3.1. Socioeconomic Status 46. Hutubi County. Hutubi means auspicious place in Mongolian, which belongs to Changji Hui Autonomous Prefecture and located in the middle north of Xinjiang Uygur Autonomous Region (Xinjiang), in the hinterland of the Eurasian continent, the southern margin of Zhungeer Basin, 68 km away from the east to Urumqi. The 301 state road, 201 province road, Wukui highway and north Xinjiang railway across the whole County, and it is an important part of the "Wu Chang core economic circle" and the important transport hub to north Xinjiang, Huoerguosi, Alashankou and other border port. It about 258 km from the north to the south of the County, the maximum width is 52 km from the east to the west, the total area of the County is 9721 km2 and the total population is 220000; there about 25 minority groups in the County such as Han, Hui, Kazak, and Uygur. It governs 6 towns, 1 township and Corps Agricultural Division six, Fangcaohu farm and other 24 units.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

47. In 2015, it expected to achieve GDP of CNY14.1 billion, an average annual growth of 10%, 1.76 times of 2010; public budget revenue CNY990 million, an average annual growth of 25%, 2.7 times of 2010; total investment in fixed assets CNY13.92 billion, 4 times of 2010; total retail sales of social consumer goods CNY2.75 billion, an average annual growth of 15.7%, 2 times of 2010; the main economic index rendering steadily growth, and continued to a health development situation.

48. Yuanhu Town is located in the outskirts of Hutubi County surrounding the city. It about 76 km away from the east of the township to Urumqi and 68 km to the Urumqi international airport. The 312 state road, Wukui highway and north Xinjiang railway across the whole township; international communication cable across the hinterland; the interflow of goods and materials, transportation and communication are convenient, with a direct and obvious advantages of urban economic radiation. The township covering 324 km2 of land area with 74,000 mu cultivated land and with a population of 19000, the main crops are cotton, rice, vegetables and fruits and so on. The economy of animal husbandry based on high yield cows and the private economy of agricultural products processing and building materials production developed quickly. The superior location, rich resources, a solid material foundation and a good cultural environment, provides a favorable guarantee and convenient conditions to further intensify reform and opening development for the Yuanhu Township.

49. Ershilidian Town is located in the north of Tianshan mountain, the southern margin of Junggar Basin, in the east of Hutubi County (5 km), about 70 km away from the west of the town to Urumqi and 65 km to the Urumqi international airport and 30 km away to Changji City. The town covering an area of 325 km2 land, including 165,800 mu cultivate land (the actual planting area is about 130,000 mu, it governs 6 villages and 2 farms, distributed into 19 districts, and with a total of 14,100 people including Han, Hui, Uygur, Kazak and other minority groups and 12,000 rural residents.

50. Hezhuang Village is located in the south of Hutubi County, covering an area of 19.58 km2 land, divided into 5 districts, it is about 1048 households with 2,965 residential population and 3,500 temporary resident population; and there are 18 enterprises, 37 shops, 236 rent houses. The village is the typical urban-village, has a large amount of floating population; there are 1040 households 2931 people in the whole village. The population structure is as following: 1,436 male, 1,495 female; 420 households 1364 Han population, 620 households 1,567 minority population including 35 households 114 Uygur, 18 households 51 Kazak, 21 households 63 Dongxiang, 546 households 1,339 Hui, the minority population account for 60% of the total population of the village. 27 low income households (47 people), 18 households disabled (33 people), 6 households five

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject guarantees (the aged, the infirm, old widows and orphans). The total income of the village is CNY16.449 million and per capita income is CNY19,919 in 2015.

51. Xiatougong Village located in the west of Ershilidian Town Government (1 km), the 312 and Provincial Road 201 across the village, covering an area of 13,750 mu; the village has 9506 mu cultivate land (5 mu/person), and the leading industry is nursery. It has 2 districts and 3 villager teams, and it has a population of 1,291 (338 households), consisting of Han, Uygur, Kazak, and has 59 Party members. By 2015, per capita net income achieved CNY18,000.

52. Hutubi County Yuanhucun Town Liangzhongchang is a self-financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery Land of Hutubi County, the south is Wuyi Road, the west is Shazhou road, and the north is the cattle farm. At present, there are 2 production teams with 256 HHs with 845 people, and 5 kinds of minority groups as Hui, Han, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a total area of 1,500 mu, at present there are 960 mu cultivate land around the farm and other 5,000 mu in Aweitan, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plants wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17,200 in 2015. 3.2. Socioeconomic Profile of Affected People 53. All of affected 149 AHs (100%) were surveyed during June 7 to July 31 2016. Detailed results of the household survey are presented in Table 3-1.

3.2.1 Affected population 54. The demographic characteristics of the APs are shown in Table 3-1, including different gender, age, population composition, education and occupation. Among which, 281 are male, and 267 are female; and 333 is Han, 188 Hui, 15 Uyghur, and 12 Kazak.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 3-1: Demographic Profile of Surveyed Households Men Women Total Type Quantity % Quantity % Quantity %

Households 149

Average population 3.68 Age

≤6 10 1.82% 8 1.46% 18 3.28%

7-19 30 5.47% 26 4.74% 56 10.22%

20-35 77 14.05% 79 14.42% 156 28.47%

36-50 65 11.86% 67 12.23% 132 24.09%

51-60 59 10.77% 51 9.31% 110 20.07%

≥61 40 7.30% 36 6.57% 76 13.87%

Subtotal 281 51.28% 267 48.72% 548 100.00% Ethnics

Han 174 31.75% 159 29.01% 333 60.77%

Uygur 7 1.28% 8 1.46% 15 2.74%

Kazak 6 1.09% 6 1.09% 12 2.19%

Hui 94 17.15% 94 17.15% 188 34.31%

Subtotal 281 51.28% 267 48.72% 548 100.00%

Marital status

Unmarried 81 14.78% 62 11.31% 143 26.09%

Married 190 34.67% 189 34.49% 379 69.16%

Divorce 5 0.91% 4 0.73% 9 1.64%

Widowed 5 0.91% 12 2.19% 17 3.10%

Subtotal 281 51.28% 267 48.72% 548 100.00% Education level

Preschool 10 1.82% 8 1.46% 18 3.28%

Illiterate or semiliterate 8 1.46% 14 2.55% 22 4.01%

Primary school 50 9.12% 51 9.31% 101 18.43%

Junior high school 133 24.27% 117 21.35% 250 45.62% Senior high school or technical secondary school 57 10.40% 50 9.12% 107 19.53%

Junior college or above 23 4.20% 27 4.93% 50 9.12%

Subtotal 281 51.28% 267 48.72% 548 100.00% Occupation

Farming 125 22.81% 113 20.62% 238 43.43%

Animal Husbandry 2 0.36% 2 0.36% 4 0.73%

Industry 1 0.18% 1 0.18% 2 0.36%

Commerce 12 2.19% 14 2.55% 26 4.74%

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Men Women Total Type Quantity % Quantity % Quantity %

Service Industry 30 5.47% 30 5.47% 60 10.95%

tourism 0 0.00% 2 0.36% 2 0.36%

Sanitation 2 0.36% 4 0.73% 6 1.09%

Transportation 2 0.36% 1 0.18% 3 0.55%

Communication 3 0.55% 1 0.18% 4 0.73%

Teacher 2 0.36% 3 0.55% 5 0.91%

Office 3 0.55% 3 0.55% 6 1.09%

Student 29 5.29% 29 5.29% 58 10.58%

Doctor 2 0.36% 1 0.18% 3 0.55%

Retired 2 0.36% 2 0.36% 4 0.73%

Workers 37 6.75% 28 5.11% 65 11.86%

Other 19 3.47% 25 4.56% 44 8.03%

Preschool 10 1.82% 8 1.46% 18 3.28%

Subtotal 281 51.28% 267 48.72% 548 100.00% Source: Socio-economic survey July 2016, Household sample: n=149 HHs, Population sample: n=548

Note: (1) the retirement age here refers to men over 65 and women over 60 years of age, so the labor force is the people under the retirement age and over 16 years; (2) preschool children refer to children aged 6 to 0 years; (3) the rest of the occupation refers to the occupation and the non-working capacity of the elderly who are not involved in this table; (4) the analysis of this list includes the affected population of the land requisition and house demolition; (5) the proportion of males and females in the table is the proportion of the total population.

3.2.2 Age

55. The age distribution reveals that 25-35 age groups for both men and women accounts most for 28.47% of the total population; male for 14.05% and female for 14.42%; in addition, 36-50 age groups also accounts for a high proportion (24.09%), male for 11.86% and female for 12.23%; moreover, 51-60 age group accounts for 20.07%, we can see that population of these three age group are the main subproject of labor forces. See figure 3-1 below.

33% Male 30% 27% Female 24% Total 21% 18% 15% 12% 9% 6% 3% 0% ≤6 7-19 20-35 36-50 51-60 ≥61

Figure 3-1: Age distribution of Affected People

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

56. Based on the survey, many male family members over 60 and female over 55 are still engaged in work. However, the definition of actual Labor force should be defined in the section of 16 to 65 year-old male and 16 to 60 years old female, who have stopped school education. According to this, the total number of labor force accounts for more than 72.63% of people surveyed.

3.2.3 Education 57. Among the APs, junior high school degree accounts for 45.62%; elementary school degree for 18.43%, high school / technical secondary school degree for 19.53%, and bachelor, or postgraduate degree or even more higher education degree for 28.65%. For APs with degree of secondary and higher education, the proportion of male slightly higher than that of female, while for college degree above, female’s is higher 0.73% than men’s. These statistics show that female’s education degree improved in the affected area, and it is need to be kept to pay more attention to female's rights in implementation of the subproject, as well as to employment skills training for female. 50% 45% 40% Male 35% 30% Female 25% Total 20% 15% 10% 5% 0% Illiterate or semiliterate or Illiterate school high Junior school secondarytechnical Preschool school Primary aboveor collegeJunior Senior high school or highschool Senior

Figure 3-2: Education Level Distribution of Affected People

3.2.4 Occupation

58. The occupation distribution of affected people is as following: the survey found that the urban-village affected by the integration of urban and rural, the farmers are not confined to the agricultural work, and they also play multiple roles such as work labor, business and others. There are 43.43% of the villagers not only working in crop production but also other works (about 11.86% of the people are as working labor, 4.74% are doing business during slack season such as small restaurants, shops and so on); 10.95% working in service industry, 0.73% working on small scale breeding; See Table 3-3. 25

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Farming

Animal Husbandry 0.73% 3.28% Industry Commerce

0.55% 8.03% Service Industry

11.86% Tourism 43.43% Sanitation

10.58% Transportation

Communication

Teacher 10.95% 4.74% 1.09% Office 0.91% Student 0.73% 0.73% Doctor 0.36% Retired

0.55% 0.36% Workers

1.09% Other Preschool Figure 3-3: Occupation Distribution of Affected People

3.2.5 Housing Conditions 59. The affected household has the largest house area of 1453.50 m2, the minimum of 36.61 m2, and average house area is 229.01 m2, as presented in Table 3-2.

Table 3-2: Housing Conditions of Affected Households Standard Item Total HHs Minimum Maximum Average Deviation

Room 53 2 8 5.2 7.55

Area (m2) HH 36.61 1453.50 229.01 231.63

Source: Socio-economic survey, July 2016

3.2.6 Land Resources 60. The affected household has the largest cultivate land area of 35 mu (there are 7 members with per capita arable land of 5 mu per person) while the minimum is 2 mu which is still reasonable in the village. The average cultivate land area is 15.57 mu per household. Through the survey there is no differences in land use rights between ethnic minorities and Han nationality, as presented in Table 3-3.

Table 3-3: Cultivate land Area of Affected Households Minimum Maximum Average cultivated land Item Total Households Cultivate land (mu) (mu) area per household (mu) LA 103 Per household 2 35 15.57 Source: Socio-economic survey, July 2016

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

3.2.7 Households Assets 61. All affected households have televisions, washing machine, refrigerator; electric rice cooker and mobile phones are more than 100% with average 1.05, 1.06, 1.05, 3.05, 1.11 respectively. Bicycle, electric vehicle, electromagnetic oven ownership is more than 60%, and the ownership rate of computers and motor vehicle are 41.61% and 53.69% respectively; which, to some extent, reflects the inevitable requirement of modern life to families and individuals. Details of other family durable goods show in Table 3-4. Table 3-4: Selected Households Assets of Affected Households

Possession Average Quantity per Average Quantity per Item Household rate household capita

Air-condition 12 8.05% 0.08 0.02

Washing machine 157 105.37% 1.05 0.29

Refrigerator 158 106.04% 1.06 1.06

PC 62 41.61% 0.42 0.11

TV set 156 104.70% 1.05 0.27

Fixed telephone 10 6.71% 0.07 0.02

Cell phone 455 305.37% 3.05 0.83

Electric cooker 165 110.74% 1.11 0.30

Bicycle 97 65.10% 0.65 0.18

Electric vehicle 103 69.13% 0.69 0.19

Motorcycle 78 52.35% 0.52 0.14

Cars 80 53.69% 0.54 0.15

electromagnetic oven 94 63.09% 0.63 0.17

Microwave oven 25 16.78% 0.17 0.05

Tractor 41 27.52% 0.28 0.07 Source: Socio-economic survey, July 2016

3.2.8 Income and Expenditure 62. The APs of the subproject are the farmers of Yuanhucun Town Liangzhongchang, Hezhuang Village and Xiatougong Village of Ershilidian town; because of the influence of the integration of urban and rural, the APs’ income is not only confined to farming or agricultural production; a large number of framers choose other occupations such as working as labor, business or open a restaurant. The main income is from working as labor and business, and the farming income accounts for only 11.4%. Range and average of the household income and expenditure per capita of the 149 HHs are shown in Table 3-5.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 3-5: Economic Statistics of the Sample person in 2016 Unit: CNY/Year/person Standard Type HHs Item Min Max Average deviation Annual per capita income 3641.43 60000 19660.5 10523.43 Total (CNY) affected 149 Annual per HHs capita 3195 41762.5 13314.65 expenditure 7255.56 (CNY) Annual per capita income 3641.43 60000 16800.42 10591.25 (CNY) Minority 57 Annual per HHs capita 3767.14 22650 11517.83 expenditure 6620.4 (CNY) Source: Socio-economic survey, July 2016

63. From Table 3-6, because of the effect of the urban-rural integration the income of the APs is not only from farming but also from business and work labor, the business income accounting for 29.07%, work labor accounting for 28.22%, the wage income accounting for 19.47% and the last is the farming income accounting for 11.40%. Only 3.83% of villagers engaged in small-scale livestock rear, just rear a few of livestock for food by themselves, they are not the dedicated breeders.

64. From the whole income we found that the income structure of minorities also show diversification, mainly from business and work labor, and the following are wage and farming. There is no big difference in the whole family income.

Table 3-6: Average Household Income Sources of Affected Households in 2015 Unit: CNY/year/HH Livesto Farmi Work Busine Touris House Items ck Wage Other Total ng labor ss m rent Raising 7,543. 2,533.5 18,665. 19,232. 1,468. 12,882. 66,150. APs 201.34 3,623 09 6 77 21 46 55 01 Proporti 11.40 3.83% 28.22% 29.07% 0.3% 2.22% 19.47% 5.48% 100% on % 8,161. 4,596.4 16,503. 14,421. 9,842.1 1,991. 56,322. Minority 0 807.02 05 9 51 05 1 58 81 Proporti 14.49 100% 8.16% 29.30% 25.60% 0% 1.43% 17.47% 3.54% on % Source: Socio-economic survey, July 2016

65. According to the survey, most of the farmers in subproject area are planting trees, the Nursery growth period is longer and the initial investment is bigger, when it grows up the

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject investment is relatively small, during the growing period, the affect families are engaged in other industries such as work labor, private business and so on. Table 3-7 showed the composition of average household expenses of the AHs. The survey shows that the expenses on living accounted for 24.50%, the following are expenses on social relationship and business, at the same time, the expenses of minorities are the same with the whole situation, the main expenses is living expense, and the following are business and investment in agricultural production, the proportion are accounted for27.62%, 12.06%, and 11.56%, respectively. See Table 3-7.

Table 3-7: Average Household Expenditure Pattern of Affected Households in 2015 Total household Minority household Item Average household (CNY) Proportion Average household (CNY) Proportion

Water expenses 145.10 0.33% 239.3 0.61%

Electricity expenses 688.02 1.56% 698.77 1.77% Entertainment expenses 154.36 0.35% 35.09 0.09% living expenses 10,808.59 24.50% 10,898.07 27.62% Heating expenses 1,946.38 4.41% 1,867.72 4.73% Clothing expenses 3,763.09 8.53% 3,919.30 9.93% Investment in agriculture 4,291.95 9.73% 4,563.33 11.56% Business expenses 5,555.70 12.59% 4,759.65 12.06% Rent expenses 174.50 0.40% 35.09 0.09%

Educational expenses 2,556.17 5.79% 2,522.81 6.39%

Medical expenses 2,785.57 6.31% 1,743.16 4.42%

Traffic expenses 3,089.93 7.00% 1,966.67 4.98%

Communication expenses 2,195.19 4.97% 2,106.32 5.34%

Social activity expenses 5,668.46 12.85% 4,108.77 10.41% Other 302.01 0.68% 0 0% Total 44,125.03 100.00% 39,464.04 100% Source: Socio-economic survey, July 2016, Household sample: N= 149 HHs, Minority N=57 HHs

3.3. Gender Analysis

3.3.1. Gender Differences in Education 66. It is shown that 45.62% affected family members received junior high school education, female accounting for21.35% and male for24.27%; 18.43% affected family members received primary school education, senior high school or secondary technical school education the proportion of male higher 1.28% than the female; college degree or above higher education accounts for 9.12%, among them the proportion of female higher 0.73% than the male. It is showed that the education degree of female has improved. See in Figure 3-4.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

50%

45% Male 40% Female 35% Total 30%

25%

20%

15%

10%

5%

0% semiliterate Preschool Primary Primary Junior high Senior high college or secondary Illiterate Illiterate or school school school or technical technical Junior above school school

Figure 3-4: Education Level Difference between Men and Women

3.3.2. Gender Difference in Occupation and Income 67. It is shown that the proportions of women dealing with agriculture, business, and industry, short-term labor, working at government agencies or public institutions are slightly lower than those of men. In most farming households they plant nursery, during the growth period, they choose other occupations, and most of them choose the private business such as small restaurant thus led to the employment of women. Besides, the women are not only confined to housework, most of them are doing all kinds of works like men, but mainly in service industry. The women become more and more independent and have more and more influence in family affairs determination and economic income.

50% 45% Total 40% Male 35% 30% Female 25% 20% 15% 10% 5% Workers Sanitation Transportation Animal Husbandry Animal Teacher Office Student Retired Other Preschool Industry Industry Service Tourism Communication Doctor Farming 0% Commerce

Figure 3-5: Occupation Difference between Men and Women

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

68. In order to better identify the income level of the affected male and female laborers, 30 AHs were sampled randomly during the survey. The result showed that the average of annual income of male laborers was CNY33,544.77, while it was CNY21,738.56 for female laborers. It is explained that the number of men work outside, planting, doing business and so on activities are larger than women, while female engaged in agricultural production activities at home more than men. Table 3-8: Income Difference of Male and Female Laborers in 2016

Item Sample Minimum Maximum Average Standard deviation Male annual income per capita (CNY) 30 4,253.70 73,235.00 33,544.77 16,362.72 Female annual income per capita (CNY) 30 5,285.32 50,138.00 21,738.56 11,464.95 Source: Socio-economic survey, July 2016

69. In the annual income interval of below CNY15,000, men’s average income differs slightly from that of women. In the annual income interval of CNY15,000-35,000, men’s average income is much higher than that of women. It is because male laborers mostly deal with business or high-pay jobs and earn more income, while women mostly do housework at home, and have less time and chances to earn more money. In a word, the income of women goes to a trend of improve. 80000 75000 70000 Male Income 65000 60000 Female Income 55000 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Figure 3-6: Income Difference of Male and Female

70. Table 3-9 showed the proportion of women’s income in household total income among 30 sampling households with female labor (doing farm work mainly, and some dealing with services). The average women’s income is accounted for 17.24%-61.33% of total household income, averaging 39.90%. This shows that women’s economic status is improving. Therefore, great attention should be paid to the protection of women’s rights during subproject implementation.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 3-9: Construction of Women’s Income to Household in 2016

Standard Item Sample Minimum Maximum Average deviation

Proportion of women’s income in household 30 17.24% 61.33% 39.90% 0.12 Source: Socio-economic survey, July 2016

3.3.3. Summary 71. The impact areas of the subproject are mainly in urban-village, since they have little cultivate land or no cultivate land, farmers are not only planting, but also do other works such as work labor, transportation, doing private business, opening small restaurant. More and more women begin to earn income, and have a greater voice on important household matters, such as children’s education and housing purchase. They also assume the responsibility of taking care of children and doing housework. Women would take part in social activities like men do in leisure time in order to maintain family income, their position in family life and agricultural production is also indispensable. Women, as one of the family economic source, have more decision-making power in the family, and the role of men and women tended to be more equal.

72. Except regular housework (e.g., cooking, cleaning, and shopping daily necessities), female residents also do farm work in order to secure household income and maintain livelihoods together with men. 73. According to the survey, women’s concerns about resettlement are essentially the same as those of men, regardless of their occupation: (i) Compensation for houses should be available timely, and the location of resettlement housing and resettlement program should be rational. (ii) Resettlement housing should be located beside roads for the convenience of going to work, doing business and going to school. (iii) The living environment for resettlement housing should be better so that they can adapt to urban life more conveniently. (iv) Jobs generated by the subproject should be provided to women so that they can participate in the subproject positively.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

4. Legal Framework and Policies 4.1. Laws, Regulations and Policies Applicable to Resettlement 74. The resettlement policies of the subproject have been developed in accordance with the laws and regulations of the PRC, and ADB’s policies, including: ADB policies: ‹ Safeguard Policy Statement (2009), Safeguard Requirement 2: Involuntary Resettlement ‹ Gender and Resettlement Analysis (2006) Laws and regulations of the PRC ‹ Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004) ‹ Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (effective from October 21, 2004) ‹ Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004) ‹ Property Law of the PRC (Decree No.62 of the PRC, effective from October 1, 2007) ‹ From 21 January 2011 to implement  "The levy and Compensation Ordinance for houses on state-owned land" (Issued by People's Republic of China State Council No. 590, effective from January 21, 2011) ‹ Note of " The levy assessment approach for the houses on state-owned land ", CB[2011] No. 77 Policies of XUAR ‹ Measures of XUAR for the Implementation of the Land Administration Law of the PRC (XUAR People’s Congress [1999] No.913, effective from October 1, 1999) ‹ Notice on the Uniform AAOV Rates for Land Acquisition of XUAR (XPPH [2001] No.500] of the XUAR Development Planning Commission and Department of Finance ‹ Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323) ‹ Notice on the Implementation of the Reply of the XUAR Government on Approving the Uniform AAOV Rates for Land Acquisition (XFR [2011] No.161) ‹ Notice on Implementation of Autonomous Unified Annual Output Value Standard " (new MLR [2011] No. 19) ‹ Xinjiang Uygur Autonomous Region to implement "state-owned land on the housing levy and Compensation Ordinance " approach (Xinjiang Uygur Autonomous Region People's Government Order No. 187 ‹ Notice of Amendment "Hutubi County land-loss farmers’ employment training and social insurance implementation approach" (Hutubi Government [2013] No. 59)

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

4.2. ADB’s Policy Requirements on Involuntary Resettlement 75. The objectives of ADB's Involuntary Resettlement Policy are (i) If possible, involuntary resettlement should be avoided; (ii) If resettlement is unavoidable, all feasible options should be explored and the scope of resettlement should be as small as possible; (iii) Ensure that the displaced persons have the same economic and social conditions before and after the project; and (iv) Improve the living standard of displaced poor and other vulnerable groups.

76. Involuntary resettlement is an important part of the project design and resettlement plans. Planning and implementation should take into account the following basic principles: (1) 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 a gender analysis, specifically related to resettlement Impacts and risks. (2) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform 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. Support the social and cultural institutions of displaced persons and assist the local population in the resettlement area. (3) Improve or at least remain, 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. (4) 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. (5) 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

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

with appropriate income sources and legal and affordable access to adequate housing. (6) 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. (7) 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. (8) 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. (9) 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. (10) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the 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. (11) Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. (12) 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.

4.3. Differences between ADB and PRC Policies 77. Generally speaking, there are many similarities between the ADB’s involuntary resettlement policies and the PRC’s LAR policies, which include: ‹ Both of them address importance to avoid or reduce resettlement Impacts during the planning and design stage of a project; ‹ Both of them address importance of the restoration and improvement of the livelihood of APs; ‹ Both of them address importance of the openness and transparency of the resettlement policies; ‹ Both of them address importance of the participation and awareness of the public during resettlement; 35

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

‹ Both of them require that the formulation and implementation of the resettlement compensation standard must be in accordance with relevant national laws, regulations and policies.

78. However, there are still some differences in some aspects between ABD’s involuntary resettlement policies and the PRC’s LAR policies, which include: ‹ ADB addresses more importance of the planning prior to the implementation of resettlement, and it requires that a feasible RP to be prepared in accordance with ADB’s involuntary resettlement policies; ‹ The ADB’s resettlement policies 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 at replacement costs. However, the LAR policies of the PRC provide a different compensation policy to unlicensed structures; ‹ ADB has specific and clear requirements on public participation and public opinion polls surveys, such as consultation and information on compensation standards must be published; ‹ ADB policy requires that the compensation should be sufficient to any losses and restore long-term revenue potential. Chinese standards are based on the average annual output value. ‹ ADB addresses more importance of the special care extended to the vulnerable people during resettlement; and ‹ ADB addresses more importance of monitoring and evaluation during and after resettlement implementation.

79. Based on the above analysis, during preparation for the LAR, this project have taken full account of the relevant policies of ADB and the following measures: ‹ The preparation of the project and RP must be based on concrete social economic survey, physical Impact survey, detail social analysis; ‹ Special cares must be given to vulnerable people including poor, women, during preparation and implementation of the LAR; ‹ Make compensation at replacement value to buildings without titles to land constructed before the cut-off date; ‹ After compensation to the AP(s) for land loss, the further technical training, public employment, job support should be provided to APs to restore their sustainable livelihoods; ‹ Publish the RP and resettlement information booklet (RIB) in accordance with requirements of ADB; and ‹ Establish internal and external monitoring systems for the LAR and conduct monitoring

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

and evaluation during and after implementation of the RP.

80. With the above measures, the ADB’s resettlement policies and the PRC’s LAR policy gaps will be bridged and the smooth implementation of the LAR will be guaranteed.

4.4. Eligibility and Beneficiaries 81. The cut-off date for eligibility for the compensation is the time when the Project is officially announced it to the affected villages. Announcement can be through distribution of resettlement information booklet or posting notices in the village community boards. It is expected that the public announcement will be carried out on or before 15 February 2017. 82. Any newly claimed land, newly built houses or settlement in the subproject area , the APs after this date will not be entitled to get the compensation or subsidization.

4.5. Compensation Rates

4.5.1. Compensation Rates for State-owned Land 83. The subproject is of construction of public utilities, so the state-owned cultivate land and state-owned unused land will be allocated by transferring land use right after payment for relevant fees, according to the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500], the state-owned unused land and cultivate land need to pay the new construction land occupancy charge (14 yuan/m2); the state-owned unused land will be allocated by transferring land use right after payment for relevant fees, according to the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500], paying leasing fees at a rate of CNY10-20/m2 (inside the build-up area is CNY20/m2, outside the build-up area is CNY10/m2). The Subproject will involve acquisition of state-owned land in the built-up area of Hutubi County, and the compensation rate is CNY20/m2.

4.5.2. Compensation Rate for State-owned Residential Land 84. For state-owned of public institution land and state-owned residential land, according to land use right type, class, purpose and duration, reference Hutubi County land standard (2015) to compensate, as shown in Table 4-1.

Table 4-1: Standards of Compensation for Arable Land in Hutubi County (CNY/m2) Level Commercial Land Residential Land Industrial Land Grade I 780 540 240 Grade II 590 440 190 Grade III 420 330 160 Grade IV 310 260 125 Source: Hutubi County Land and Resource Bureau

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

4.5.3. Compensation Rates for Cultivated Land 85. According to the “Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No. 323)” and the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19, compensation is paid, and the compensation standards for cultivated land are showed in Table 4-2. Table 4-2: Unified Annual Output Values of Cultivated Land

Degree Grade I cultivated land Grade II cultivated land Grade III cultivated land Annual Output 1,500 800 600 Value (CNY/mu) 1. This table standard applies to arable cultivation of food crops. 2. The annual output value of cultivate land planted specialty crops, vegetable, orchard cultivate land should be higher than the first-class standard table; cotton fields should be Note paid at maximum of 1.5 times; orchard may not exceed two times; vegetable may not exceed three times; grapes ground shall not exceed 4 times. Other crops actual annual output estimates Source: Hutubi County Land and Resource Bureau

Table 4-3: Times of Basic Compensation Rates Per capita cultivated land (mu) Times of unified annual output values Above 3.0 mu 12-13 2.0-3.0 14-16 1.0-2.0 17-20 Less than 1.0 mu 30 times the sum of land compensation and resettlement subsidy Source: Hutubi County Land and Resource Bureau Note: the compensation after times of the sum of land compensation and resettlement subsidies must beyond 20 times of the compensation standard. It is generally 8 times for land compensation. 86. According to the survey, the land acquisition compensation standard of XUAR is based on the Unified Annual Output Value, land location factors, social economic conditions, and the income of the farmers, to promise that the living condition of the farmers will not be decreased because of the LA, and guarantee their long term livelihood: the LA compensation Unified Annual Output Value base is : class 1 cultivate land 1200 yuan/mu, class 2 600 yuan/mu, class 3 400 yuan/mu, because of the development and the update of the crops and the improvement of planting, the LA compensation Unified Annual Output Value has been improved by the XUAR government in 2010 (Table 4-2). The Unified Annual Output Value is based on the annual output and market price of the main crops under the main cropping system, Annual Output Value = Average annual crop yield × the price of the crops, therefore it is also the land benefit value. Through the survey, Unified Annual Output Value of Hutubi county is 1000 yuan/mu, but in accordance with the benefits of the farmers and according to the document of Agreement on approving the annual output value of the land requisition of XUAR (New Deal Letter No. [2010]323), the annual output value base is compensated as 1500 yuan/mu; the

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject cultivate land compensation is 37500 yuan/mu (excluded the young crops compensation), it is about 25 times of the income of the annual output value. The total period of second round of land contract is 30 years, which started from 1998 and to end in 2028, so there is only 12 years to reach their expiration date, according to the survey , the annual production value of the crops is 1000yuan/mu, so the total production value for 12 years will be 12000yuan/mu, while the compensation rate is 1500yuan/mu×25times＝37500yuan/mu, by comparing with the remaining 12years’ land annual production value, the compensation standard is much higher. Not matter the collective cultivate land or state-owned cultivate land they all meet the document of Agreement on approving the annual output value of the land requisition of XUAR (New Deal Letter No. [2010]323) and the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19)

4.5.4. Compensation Rates for State-owned Cultivated Land

87. For the state-owned cultivate land of Yuanhucun Town Liangzhongchang, in accordance with the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19), the land compensation base based on the type of the crops and grade of the land, and the resettlement subsidy based on the area of per capita arable land (Table 4-3); the per capita arable land of Yuanhucun Town Liangzhongchang is 3 mu, according to the document the compensation base should be 12-13 times, in consideration of farmers interests, the relevant departments decided that the land compensation is eight (8) times and the resettlement subsidy is 17 times and the other different lands compensation standards are presented in Table 4-4 in details.

Table 4-4: Compensation Standards of State-owned Cultivated Land Compensation standard (CNY/mu) Land type Land Resettlement Young corps Total compensation subsidy Cultivated 1,500Õ8 = 1,500Õ17 = Compensation will be paid according to 37,500 land CNY12,000/mu CNY25,500/mu species and diameters of the crops Source: Hutubi County Land and Resource Bureau 88. Compensations for young crops: (i) cultivate land young crops compensation will be paid according to the crops on ground, if no crops on ground, it will not be compensated. All the land involved in the subproject are cultivate land, the compensation will be paid according to species and diameters of crops; and (ii) ground attachments will be compensated in accordance with the actual input costs.

89. Because the ownership of the land belongs to state-owned, all the land compensation for Yuanhucun Town Liangzhongchang will be paid to the farm management committee, while the compensation for young crops and resettlement subsidy will be paid to the affected households.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

90. In addition to these costs, for the occupied state-owned arable land, land reclamation and land resettlement management fee will be paid to the local land administration department, cultivated land reclamation fee is CNY43,000/mu, and arable land occupation tax is CNY20/m2.

4.5.5. Compensation Standard for Collective Cultivated Land 91. Compensation for collective cultivated land is paid according to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323) and Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No. 19. 92. For the collective cultivated land, the compensation is calculated and paid according to the land grade, varieties of crops and times of basis of different types of land and in accordance with the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19), the land compensation base based on the type of the crops and grade of the land (nursery land 1500 CNY/mu), and the resettlement subsidy based on the area of per capita arable land (Table 4-3); the per capita arable land of Hezhuang Village and Xiatougong Village is over 3 mu, according to the document the compensation base should be 12-13 times, in consideration of farmers interests, the relevant departments decided that the land compensation is eight (8) times and the resettlement subsidy is 17 times and the other different lands compensation standards are presented in Table 4-5 in details.

Table 4-5: Compensation Standards of Collective Cultivated Land

Compensation standard (CNY/mu) Village Type Land Resettlement Young corps Total compensation subsidy Hezhuang Nursery 1,500Õ8 = 1,500Õ17 = Compensation will be paid according 37,500 Village land CNY12,000/mu CNY25,500/mu to species and diameters of fruit trees. Xiatougong Nursery 1,500Õ8 = 1,500Õ17 = Compensation will be paid according 37,500 Village land CNY12,000/mu CNY25,500/mu to species and diameters of fruit trees. Source: Hutubi County Land and Resource Bureau

93. Compensations for young crops: (i) cultivate land young crops compensation will be paid according to the crops on ground, if no crops on ground, it will not be compensated. All the land involved in the subproject are cultivate land, the compensation will be paid according to species and diameters of crops; and (ii) ground attachments will be compensated in accordance with the actual input costs. 94. All of resettlement subsidy, the compensation for young crops and ground attachments will be paid to the affected households directly, while the land compensation will be paid to the village committee first, in accordance with Article 26 of the "Regulations for the Implementation of Land Administration Law"-The land compensation paid to the rural collective economic

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject organizations", and later all the villagers will have meetings to discuss how to use the compensation. All the compensation for occupied various collective land and uncontracted land of collective village will be paid to the village collective directly. Such as the Xiatougong Village use the compensation fees to construct road, dig wells and given tap water, the villagers can use the water in free; and Hezhuang Village not only use the money on infrastructure construction but also on skill training, the villagers can also get the training in free.

4.5.6. Collective Reserved Land Compensation 95. This subproject will acquire collective construction land and unused land of 110.42 mu, the reserved land used to be arable land, in order to make it convenient for farmers’ ploughing, they built the farm road by themselves, according to verification from L&R bureau and village committee, the ownership of reserved land belongs to village, the compensation standard will be in accordance with arable land and paid to village, including land compensation and resettlement subsidy, no young crops fee. Since no individuals involved, there is no affected population. According to Notice on Implementation of Unified Annual Output Value Standard of XUAR (issued by XLRB [2011] No. 19), the village collective unused land and construction land will be compensated as cultivate land (basis CNY1,500/mu) and 8 times of the basis. So the land compensation fee is CNY12,000/mu in total. The resettlement compensation (basis CNY1,500/mu) and 17 times of the basis, so the resettlement compensation fee is CNY25,500/mu in total. The total compensation funds for land compensation and resettlement subsidy fee is CNY37,500/mu. The land compensation will be paid to the village committee first, and later all the villagers will have meetings to discuss how to use the compensation.

4.5.7. Compensation Standard for Collective Homestead 96. For permanent acquisition of collective homestead, the compensation standard is referring to Hutubi County District Benchmark Premium in 2014, the compensation standard of state-owned residential land and collective homestead are the same, and the specific compensation standards are shown in Table 4-6. Table 4-6: Compensation Standards of Collective Homestead Land

Class I -- CNY/m2 --

State-owned Hufang 2 Class II CNY/m 557 residential Road land and Changhua Class III CNY/m2 405 collective Road homestead Dongfeng Class IV CNY/m2 286 Avenue

4.5.8. Compensation Standard for Residential House Demolition 97. HD compensation will be in accordance with the Acquisition and Compensation

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Ordinance for Houses on State-owned Land promulgated by Xinjiang Uygur Autonomous Region People's Government on January 1, 2014. Full consultation with APs will be conducted, the house demolition standard will refer to the market housing price in 2016, and the real estate market price fluctuation of the houses will be considered. The final compensation price will be determined according to results of a housing real estate appraisal and survey company (the company should be an independent third party, and approved by both affected people and PMO) after the on-site assessment. The HD compensation includes not only compensation for housing structure but also the state-owned residential land and homestead compensation.

98. According to the compensation standards of stated-owned residential land and collective homestead, the compensation will be on the basis of benchmark land price of Hutubi in 2014; the standards of Class1 land is CNY540/m2, Class 2 is CNY440/m2, Class 3 is CNY330/m2, Class 4 is CNY260/m2, the compensation standards of the subproject affected by the market rise index, planning index and volume ratio, regional location are higher than the established compensation standard. Besides, because the location of Changhua Road and Hufang Road is near the center of the town and the Dongfeng Avenue is in the rural area, the property assessment value in Changhua Road and Hufang Road is higher than that in Dongfeng Avenue. See Table 4-7. 99. A one time moving subsidy at CNY1000 per household will be provided, the temporary transitional subsidy at CNY1000/month/household will also be provided. The actual number of months for the transitional subsidy will be determined based on actual situation. Table 4-7: Compensation Standard of Residential House Demolition

Standard (CNY) Type Structure Unit Changhua Hufang Dongfeng Remark Road Road Avenue Masonry CNY/m2 2,400 2,400 1,800 concrete

Main House Masonry 2 CNY/m 2,400 2,400 1,800 timber Earth timber CNY/m2 2,400 2,400 1,800 Masonry CNY/m2 1,475 1,475 — concrete Masonry Deputy Room CNY/m2 1,475 1,475 — timber Earth timber CNY/m2 — — — Color steel CNY/m2 928 835 — Masonry CNY/m2 888 888 888 timber Affiliated House Earth timber CNY/m2 511 — 511 Basement CNY/m2 1,200 — —

Masonry 2 CNY/m — 1,622 — Sheds concrete Color steel CNY/m2 — 928 —

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Standard (CNY) Type Structure Unit Changhua Hufang Dongfeng Remark Road Road Avenue Masonry CNY/m2 — 630 — timber Earth timber CNY/m2 330 — — Other Subsidies

Moving Subsidy Per HH 1,000 * Calculated in 18 months temporarily, the subsidies will be paid one time, according to Temporary HH/month 1,000 the actual situation. transitional subsidy* Source: Hutubi County House Demolition Management Office, July 2016

100. According to the survey among the building materials market and manpower market in the first half of 2016 of Hutubi county, the replacement price contractor masonry concrete house is 1200- 1300 yuan /m2, so the compensation standard of the subproject is higher than replacement cost.

4.5.9. Compensation Rates for Attachments 101. Compensation standards of attachments and special facilities affected by the subproject are shown in Table 4-7.

Table 4-8: Compensation Rates for Attachment and Facilities

Item Total Compensation standard Nature

3 900 Individual Percolation well 37 1,000 Individual

3 500 Individual

1 750 Individual Vegetable cellars (m³) 1 1,000 Individual

1 1,200 Individual

3 1,200 Individual Nang Pit 1 750 Individual

96 45 Individual

25-50 cm 17 55 Individual Polar 2 150 Individual

> 50 cm 2 200 Individual

4 20 Individual 5 cm 291 15 Individual Elm 108 30 Individual 5-15 cm 80 40 Individual

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Item Total Compensation standard Nature

11 45 Individual

44 50 Individual

48 55 Individual

27 55 Individual 15-30cm 59 60 Individual

45 120 Individual 30cm 35 200 Individual

5 cm 116 20 Individual

27 300 Individual Fruit tree 5-15 cm 1 90 Individual

67 150 Individual

Jujube tree 5-15 cm 21 90 Individual

Peach tree 5-15 cm 4 90 Individual

Fraxinus chinensis 5-15 cm 1 40 Individual

31 100 Individual

Grape Fruit 33 120 Individual

27 150 Individual

5-15 cm 1 25 Individual Broadleaf tree 15-30 cm 1 150 Individual

Plum trees 1 90 Individual

Wooden wire rod 89 200 State-owned

High voltage wire rod 1 400 State-owned Source: From Hutubi County House Demolition Office in July 2016

4.6. Entitlement Matrix

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 4-9: Entitlement Matrix Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact The subproject will acquire 347.43 mu of (1) (i) Land compensation will be paid to village collective land, collective 100%, and the use of the money and affect 100 will be determined by the villagers. (ii) both households with resettlement subsidy and crop 352 people, compensation will be paid to the APs 100%; including 32 (iii) land-loss farmers can participate in households with social insurance; (iv) during subproject 112 ethnic construction, the PMO will provide unskilled minorities; job priority to APs, so that the APs will including (i) generate cash income; and (v) the PMO will 197.35 mu of provide technical training for APs, inviting Cultivated land the technical staff from agricultural sector (ii) 110.42 mu of and the labor and social security bureau to collective carry out training on farming and reserved land; 61 HHs with 215 non-agricultural production, and make sure Permanent the reserved people in all APs received the training at least 2 times. For the cultivated land, land compensation rate is CNY12,000/mu; Acquisition of land used to be Xiatougong resettlement subsidy is CNY25,500/mu; and young crop Collective arable land, with Village; 39 HHs (2) Measures to restore the livelihood of APs compensation is according to species and diameters of crops. Land no current farm with 137 people in include: (i) with the help of cash road; in order to Hezhuang Village compensation, APs can engage in make it non-agricultural activities, such as convenient for transportation, private business or dining; farmers’ (ii) participating in social insurance; (iii) ploughing, they adjusting the agricultural structure, via the built the farm guidance and technical training from road government, to expand the acreage of cash themselves, crops, and to improve the economic income; according to and from the technical training to improve verification from the economic income; (iv) using the L&R bureau and compensation engage in the trading village business on nursery; (v) given the priorities committee, the to the affected people on employment to ownership of increase the income of the affected people reserved land during the construction period. belongs to village; (iii) 39.66

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact mu collective homestead land, affected populations are included in the population to be demolished without further calculation. Occupy 13.18 (i) Land compensation in 100% will be paid to mu state-owned the state-owned cultivate land management land, The committee; (ii) Resettlement subsidy and young state-owned crops compensation in 100% will be paid to land consists of the APs; (iii) APs can get the same area of (i) 6.35 mu of arable land with equal quality by reallocation of cultivated land the farm; (iv) there are in total of 960 mu (nursery land), cultivate land around the farm, and 5000 mu in affect 3 Aweitan, these land will be contracted to the households 12 workers of the farm, and the workers has the people, including rights to contracted again; (v) the PMO will 2 households 8 organize technical training for APs, inviting the ethnic minorities; technical staffs from agricultural sector and the (ii) 2.75 mu 3 HHs with 12 labor and social security bureau to carry out (i) For the cultivate land, land compensation rate is CNY12,000/mu; Permanent state-owned people in trainings on farming, husbandry, resettlement subsidy is CNY25,500/mu; and young crop Acquisition of residential land, Yuanhucun Town non-agricultural production, and others related, compensation is according to species and diameters of crops. State-owned affected Liangzhongchang to make sure all APs received at least 2 times (ii) Exploitation of farm land for 5,000 mu in Aweitan, the farmers Land populations are Farm training. can contract the land priority. included in the Measures to restore the livelihood of APs population to be include: (i) with the help of cash compensation, demolished APs can engage in non-agricultural activities, without further such as transportation, private business or calculation; (iii) dining; (ii) participate in social insurance; 4.08 mu (iii) Adjusting the agricultural structure, via the state-owned guidance and technical training from construction government, to expand the acreage of cash land, all these crops, and to improve the economic income; land are open and from the technical training to improve the space, without economic income. (iv) Use the compensation any engage in the trading business on nursery; (v) supplementary given the priorities to the affected people on

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact items and employment to increase the income of the buildings, so no affected people during the construction period. effect on the population. House demolition involves 18445.35 m2 of (i) Cash compensation. rural house Main house (Changhua Road and Hufang Road): demolition, masonry-concrete/masonry-timber/earth-timber for CNY2,400/m2, affects 53 deputy house (Changhua Road and Hufang Road): households 212 Masonry-concrete/masonry-timber for CNY1,475/m2; Affiliated House people (Changhua Road): masonry-timber for CNY888/m2, earth timber for (including 7 CNY511/m2, basement for CNY1,200/m2; Sheds: (Changhua Road): households 28 earth timber for 330 CNY/m2. Main house (Dongfeng Avenue): people both LA masonry-concrete/ masonry-timber/ earth-timber for 1800CNY/m2, (i) to assess the price to obtain housing at 2 and HD) Affiliated House (Dongfeng Avenue): masonry-timber for CNY888/m , replacement value compensation; including the 2 including 27 earth timber for CNY511/m . compensation to the house structure, ethnic minority 40 HHs with 165 state-owned residential land, and homestead families with 112 people in Moving subsidy is CNY1,000/HH and temporary transitional subsidy is (ii) voluntarily choose resettlement options, House members. The Hezhuang CNY1,000/HH, and compensation standards of stated-owned including monetary compensation, property demolition of house Villages, and 13 residential land and collective homestead, the standards of Class1 right exchange, allocation of land on their own 2 2 2 residential demolition area HHs with 47 land is CNY540/m , Class 2 is CNY440/m , Class 3 is CNY330/m , construction, buying cottage; (iii) the Aps and 2 houses including 8,291 people in Class 4 is CNY260/m , the compensation standards of the subproject 2 PMO choose an independent third company m Xiatougong affected by the market rise index, planning index and volume ratio, agreed by both of them; (iv) to get moving brick-concrete; Village. regional location are higher than the established compensation 2 subsidies, temporary transition costs, relocation 520.18 m standard. incentives. mixtures; 136.01 (ii) Property right exchanges: the compensation price for 2 m color steel; demolished houses will be determined based on house appraisal by 2,850.16 m2 a real estate appraisal and survey company on-site, and plus moving brick-wood; subsidy, temporary transition allowance, and land compensation 4,823.38 m2 fees, etc. The compensation prices for demolished houses will be earth-wood; compared with the resettlement house prices. If the compensation 1,809.62 m2 prices are higher than the resettlement house prices, the IA will pay color steel brick, the difference to APs in cash. Otherwise, APs will pay the difference and 15 m2 of to IA for the resettlement houses. APs can select different floors of basement. resettlement houses (apartment) and different types of houses.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact Besides the rights above, vulnerable people (i) will be provide security houses (ii) will be provided unskilled job priority during subproject Vulnerable 1 HHs with 4 1 HHs affected by construction; (iii) will be in priority to get the Same as above Groups people LA training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau, and (iv) get CNY1500 special subsidy. Besides the rights above, ethnic minority people (i) As for the HD affected people, who owns only 1 set of house and the evaluated price cannot replace 70m2 apartment, 23 HHs with 95 according to the compensation for demolition of people affected minimum safeguards, Hutubi government will by HD only; 30 provide the affected people resettlement Ethnic HHs with 103 apartment, and no need to pay the extra 57 HHs, with Minority people affected money.(ii) will have priority in choose of floor, Same as above 215 people Group by LA only; 4 HH apartment pattern and location of resettlement and 17 people houses; (iii) the minority will have priority to affected both by contract the newly cultivated land in Aweitan; HD and LA. (iv) will be provided unskilled job priority during subproject construction; (v) will be in priority to get the training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau. Besides the rights in first column, the affected female people (i) will have priority access to subproject non-technical jobs employment; (ii) Women 267 people 267 people will enjoy the labor and training priorities; (iii) Same as above ensure that the resettlement process access to relevant information and be able to participate in consultation related to LAR issues. (i) Ground attachment (power poles and fruit Ground trees) compensation will be paid to the owner; Attachments Public Facilities and (ii) the compensation will be determined Property owners See table4-7 above. and Public and trees according to the replacement cost and Facilities restoration shall be in accordance with the original scale and standards.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

5. Resettlement Measures

5.1. Objectives of Resettlement 102. The objectives of the subproject resettlement is to restore the AHs’ annual net income per capita to the pre-resettlement level and further improved with local economic development.

5.2. Principles for Resettlement Recovery Plan 103. According to the applicable laws and regulations of the PRC and ADB’s Policy on Involuntary Resettlement, the following basic principles will apply to the resettlement work of the Subproject: (1) Implement resettlement and the applicable compensation policies properly to improve or at least restore the production level and standard of living of the affected residents; (2) The affected people shall be fully consulted for resettlement programs; (3) The planning layout shall be determined on the principle of “facilitating production and life”; and (4) Resettlement shall be combined with the local urban development, resources development, economic development and environmental protection programs. Feasible measures shall be designed to restore and improve the displaced persons’ production level and standard of living, and create necessary conditions for their self-development.

5.3. Subproject Benefits 104. The subproject aims to improve the living condition and the quality of infrastructure service of urban and rural area of Changji. Through the infrastructure construction , the subproject will make the affect people get benefits from all aspects, including: (i) the construction of the road will convenient their travel and living condition; (ii) the construction of urban public facilities will guarantee the capacity of water supply, heating supply, and gas supply. (iii) decrease the incidence of environmental related diseases; (iv) get more training opportunities; (v)the construction of the subproject will use the local resource and increase the employment opportunities and the income and living condition.

5.4. Recovery plan for State-owned Land Acquisition 105. Hutubi County Yuanhu Township Liangzhongchang is a self-financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery Land of Hutubi County, the south is Wuyi Road, the west is Shazhou Road, and the north is the cattle farm.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

106. At present, there are 2 production teams with 256 HHs with 845 people, and 5 kinds of minority groups as Hui, Han, Dongxiang, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a total area of 1,500 mu, at present there are 960 mu cultivate land around the farm and other 5,000 mu in Aweitan4, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plants wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17200 in 2015. It has 7 village cadres; the wages of the village cadres are paid by the county fiscal about CNY98000 every year. There are 26 Party members in the farm. At present, there are 208 employees to participate in social security including 115 state-owned employees (95 male and 20 female) and 93 non-state-owned employees (23 male and 70 female), and there are 120 people that enjoy social security retirement policy.

107. Due to the enterprise aims to manage Yuanhucun Town Liangzhongchang farm lands , the income from the contracted lands belongs to the employee (APs) who are responsible for planting during the period of employment, and Liangzhongchang farm will not need to pay the wage/salary to farmers, however, the social insurance of the employees will be fully paid by the farm. In addition, the employee will not have the right to continue their lands contract once they reach the retiring age, the contracted land will be allocated to others. The retirement pension issued by country government is in accordance with the standard of the basic endowment insurance system.

108. This subproject will acquire 6.35 mu of Liangzhongchang state-owned cultivate land permanently (total land for 5,960 mu), accounting for 0.1% of the total arable land (5,960 mu) of the farm. The land compensation will be paid to the farm management committee directly, and resettlement subsidy and young crops subsidy for the land acquisition will be paid to the farmers. Given the influence to the affected employees, some restoration measures are considered, there are 5,000 mu of newly cultivated land in Aweitan, it is enough to allocate the lands to the affected employees, and committee management/local government will distribute the land to the affected employees for priority based on the land-loss amount of the affected employees. The types of planting crops will be determined by the affected farmers, and the income is similar or even more than their before. In order to enhance the planting skill of the employees, committee management/local government will also provide training program to employees every year.

109. According to the survey on 3 affected employees, all affected workers support the subproject. The land they plant belongs to Liangzhongchang, and not to the workers. However,

4 It is located in Shitizi Town of Hutubi County, about 24 km away from Hutubi. 50

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject they know Liangzhongchang has newly cultivated cultivate land, even though they will lose the land, they will get other land from Liangzhongchang. Therefore, the land acquisition will affect little to them. However, they hope that the construction schedule will be noticed with six months in advance. If the construction starts in the crop growing season, reasonable compensation for crop loss should be paid to them. So the construction is better to be mobilized after crop harvest period. They also hope after land acquisition, some planting technology training and instruction shall be provided, so that they can obtain bigger benefit from arable land. Part affected workers think based facilities of construction, sanitation and city environment can be improved, and also will lead to economic development for Hutubi County, also will increased employment opportunities, while the subproject implementation period, they hope they have opportunity to participate in the subproject.

110. According to the consultation with affected workers, resettlement measures are prepared to support affected workers’ improvement of livelihood and income, including: (i) Temporary employment: affected workers will be employed priority in the subproject during the subproject construction; (ii) Improvement of agricultural production structures: training on planting and poultry raising technique will be provided by relevant government departments, increasing cultivated cultivate land of economic crop planting, and developing household poultry raising; and (iii) Technical training: training on economic crop planting, pouty raining, non-agriculture skills will be provided to affected households at least one time per household. By taking all those measures to improve the income of the affected, to make sure the normal livelihood of the affected could be restored.

5.5. Summary of Restoration Program for Acquisition of Cultivated Land 111. The land acquisition of the subproject for the road construction is linear, most of the affected people only loss a little part of their land; therefore, the land acquisition has few Impact on their production. Table 2-3 and Table 2-4 indicates that among the 100 affected households, the minimum land loss rate is 0.75% and the maximum is 38.75% and the total landloss rate is 12.04%. According to the present average annual output value and the acquired land area we v g p - f v could get the annual loss, net income formula for planting crops: i = i × i i ( i net g p f income/mu i per mu yield i market price i the total investment of the crops); for example if the farmer planting corns, through the survey ,the yield output is 900 kg/mu. The market price is1.75 yuan/kg, the total planting investment is 575 yuan/mu, therefore the net income is ((900kgÕ1.75yuan/kg) -575yuan/mu) =1000yuan/mu; The ratio of the land compensation to income loss is 38.33 times; if not included the land compensation, then the loss will be 30.33 times. 51

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

See in Table 5-1.

Table 5-1: Comparison of Income loss and compensation fee B. Land compensation fee (CNY10,000/year) Land A. Income Resettleme Young Affecte loss loss Land Village nt crops B/A d HH area (CNY10,0 Type Total (mu) 00 / year) Compensat Compensati Compensati ion fee on fee on fee Hezhuang Cultivate 39 64.86 9.73 77.83 165.39 129.72 372.95 38.33 Village d land Xiatougon Cultivate 61 132.49 19.87 158.99 337.85 264.98 761.82 38.33 g Village d land Total 100 197.35 29.60 236.82 503.24 394.70 1134.76 38.33 Remark: Income loss is CNY1,000/mu of planting net income

112. According to the survey to 100 households affected people, the cash compensation is what they want and they also required that the compensation should be paid on time. And the compensation will be used in business, planting or skill training and so on.

113. In order to improve or restore their original production, living and income levels as soon as possible, in addition to pay the land compensation to the AHs, the PMO also developed a restoration plan on the basis of full consultation for the APs and in accordance with the status of the AHs:

(1) APs will engage in non-agricultural activities via the cash compensation. 114. With the improvement of urban functions and the increase of urban scale, Hutubi County's commercial and service industry has also been fast developed, and more and more people have engaged in these sectors. So the AHs can use cash compensation for commercial and service industry investment. For example: with the increase of urban area, and the improvement of road conditions, the demand for taxi is continually increased, and the affected villagers can use the compensation money to buy a car as taxi. They can also improve the income by renting the commercial houses with the cash compensation or engage in commercial activities, such as running a department store, or running a restaurant. 115. A total of 197.35 mu of rural collective land will be acquired permanently, affect 100 households, average household LA is 1.97mu, according to the compensation unit price of 37500yuan/mu, a total of 73875 yuan per household can be received. It is surveyed that net income of the land is 1000yuan/mu per year, the land compensation is 37.5times of the land annual net income. With the compensation, APs can have opportunities to invest those activities listed in table 5-2, and the will have long-term income generation. The details see table5-2.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 5-2: Restoration plan of APs Responsible Item Initial fund Benefit Remark agency Annual income Hutubi is a tourist city, and achieved close to Changji, the CNY50,000 transportation and , they can environment are good and it recover the has a little number of taxis, CNY70,000 costs in 2 thus it is very suitable for (Equivalent years, transportation, the reward is of 2mu of during the high and quick. Transportation land tourist Need the training of driving compensati season and skills. Based on their own on.) harvest willingness, PMO could season contact the driving school Labor and daily for the affected, which social security income nearby the accommodation, department is achieved they should pay by responsible CNY300— themselves. for training 400 and Invested The APs choose this plan employment for Annual need to use the money from guidance; and business CNY40,000 income land compensation to rent the PMO is (Equivalent achieved the house along the street, responsible Department of 1mu of CNY20,000 and the opening of the store for the store land , they can only need one person; and coordination compensati recover the the PMO can help to finish of the relevant on.) costs in 2 the coordination of the procedures. years relevant procedures. Operating in general ethnic catering, to meet the needs Annual of the residents living CNY35,000 income nearby. Hutubi is a tourist (Equivalent achieved city; during the tourist of 1mu of CNY30,000 Restaurant season daily income land , they can achieved CNY400-500. compensati recover the PMO could provide some on.) costs in 1.5 necessary assistance years during check in the related procedures.

(2) Participation of the land-loss farmers in the social insurance. 116. According to the implementation of the social pension insurance system for urban and rural residents in Autonomous Region, the land-loss farmers can participate in the social pension insurance based on their own willingness, that is to say the affected farmers can participate in the social pension insurance voluntarily. The Hutubi Government decided that the land-loss farmers will be included in the scope of social pension insurance. The social pension insurance fund consists of three parts (individuals, village collective subsidies, government subsidies).

117. The APs entitled to participate in the social insurance are: residents at the age of 16 and upwards (not including students), and the staff of non-state organs or public institution who have 53

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject not involved in the place of domicile. The APs who are eligible or who expressed to join voluntarily will be determined during resettlement implementation.

(i) Individual contribution The people included in the scope of social pension insurance need to pay the insurance fees. At present the standards of insurance fee are including 14 grades: grade 1, for CNY100/year, grade 2, for CNY200/year, grade 3, for CNY300/year, grade 4, for CNY400/year, grade 5, for CNY500/year, grade 6, for CNY600/year, grade 7, for CNY700/year, grade 8, for CNY800/year, grade 9, for CNY900/year, grade 10, for CNY1,000/year, grade 11, for CNY1,500/year, grade 12, for CNY2,000/year, grade 13, for CNY2,500/year, grade 14, for CNY3,000 each year, the insured person can choose different grades according to their family income, the insurance must be paid every year and if they paid more they will get more in the future.

(ii) Collective subsidies The qualified village collective should subsidize parts of the insurance fee for the insured villager, the villagers’ democratic conference decides the standards of subsidies, and encourage qualified community included in the scope of community public welfare fund.

(iii) Government subsidies People's governments at all levels to provide subsidies to the insured person, the subsidy standard should not be less than CNY50 per person per year, the required funds are paid by the financial burden at all levels. In the area of financial difficulties, to given the subsidies according to current financial system of the autonomous region. According to local conditions the subsidy standard can be increased appropriately, the required funds are beard by their own. Encourage the people choosing degree 2 or above (more than CNY100), and when the grade improved the insured person can get at least CNY5 increase per year, and the money needed are paid by the local County Finance. Intermittent payment period cannot get the government subsidies. The severe disabled people and other poor groups can choose the payment grade by their own, and the people's government of City or county (city, district) helps them to pay the minimum standard of the insurance.

118. The individuals included in social pension insurance system for urban and rural residents over 60 years old and paid the insurance more than 15 years (including 15 years), and never receive the provisions of the basic pension benefits of the country, can receive the social pension insurance system for urban and rural residents monthly. 119. The standards of personal account pension for the month: total personal account

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject money/139 (the same as the current worker’s insurance pension plan). If the insured person dies, personal account funds can be inherited according to law. 120. Treatment calculation method: Monthly pension income = personal pension accounts (individuals total amount + government subsidies + interest) ÷139 + basic pension (CNY115).

121. For example: a farmer handed insurance pension at age of 40, and handed it for 15 years; if the basis is CNY100/year, then after he retired, he will get CNY131/month, CNY1,574.94/year; if the basis is CNY200/year, he will get CNY143/month, CNY1,711.14/year; if the basis is CNY300/year, he will get CNY154/month, CNY1,847.58/year; if the basis is CNY400/year, he will get CNY165/month, CNY1,984.02/year; if the basis is CNY500/year, he will get CNY177/month, CNY2,120.45/year; the higher of the basis will get the more pension. For detail, see Table 5-3.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 5-3: Calculation method of rural pension

Basis 100 200 300 400 500 600 700 800 900 1,000 1,500 20,00 2,500 3,000 (CNY/year) Government subsidy 50 55 60 65 70 80 90 100 110 120 130 140 150 160 (CNY/year) Payment 15 15 15 15 15 15 15 15 15 15 15 15 15 15 period (year) Personal account pension 2,250 3,825 5,400 6,975 8,550 10,200 11,850 13,500 15,150 16,800 24,450 32,100 39,750 47,400 amount (15 years) Bank interest (15 years, 8.07 10.76 16.14 21.52 26.9 32.28 37.66 43.04 48.43 53.81 80.71 107.61 134.51 161.42 0.35%) Total personal account 2,258.1 3,835.8 5,416.1 6,996.5 8,576.9 10,232 11,888 13,543 15,198 16,854 24,531 32,208 39,885 47,561 pension amount (15 years) Basic 115 115 115 115 115 115 115 115 115 115 115 115 115 115 pension Pension 139 139 139 139 139 139 139 139 139 139 139 139 139 139 factor Pension can get in a 131.25 142.6 153.97 165.33 176.7 188.61 200.52 212.43 224.34 236.25 291.48 346.71 401.94 457.17 month (CNY/month) Pension can get in a year 1,574.9 1,711.1 1,847.6 1,984 2,120.5 2,263.4 2,406.3 2,549.2 2,692.1 2,835 3,497.8 4,160.5 4,823.3 5,486 (CNY/year) Source: Social Security Bureau of Hutubi County (2016.7)

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(3) To adjust agricultural structure, guided by government departments, and conduct training on planting and skill training, secondly, with the guidance of government, produce the high efficient crops to plant, after LA, the affected farmers could use the land compensation to expand economic crop planting acreage, to enhance the income.

(4) To the land-loss farmers, especially the minority households, the government will help these affected households to rent shops in privilege price for Hutubi County nursery market business in priority, In addition, the ethnic minorities are good at catering; they can also operate their restaurant business.

122. Hutubi County national nursery stock trading market5 is one of the national important seedling distribution center, which is also the only national nursery stock trading market in Northwest China.

123. Hutubi County national nursery stock trading market with total area of 1,500 mu, with investment of CNY2 billion, currently, 624 mu of land had been approved, including the phase one project 263 mu had been completed, with building area for 90,000 m2, by the July 2015, CNY400 million had been invested, the center has 10,000 square meters of indoor and outdoor multifunctional exhibition service center, and 12,000 square meters of modern office building, more than 170 sets of indoor decoration core stores, and 26,000 square meters of functional market shops, which had been put into use, the hardware standard reached to the domestic first-class level, becoming an important platform in Hutubi County.

Figure 5-1: Hutubi County National Nursery Stock Trading Market

124. The commercial stores for nursery stock market can be divided into 2 types, single-layer, double-layer and three-layer as well, with different area to choose, the range of stores area from 28—2,000 m2, the commercial stores rental standard as follows: rent for 30 m2 area, rent is CNY0.75/m2/day; stores area for 50 m2, the rent is CNY0.85-0.9/m2/day; stores area for 150 m2,

5 It is located in Road S201, about 3 km from Hutubi. 57

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject the rent is CNY0.65/m2/day; the rent price would be the lowest throughout the whole Hutubi County of the same type.

125. The merchants need to pay CNY2,000—5,000 of security deposit only, they can sign the lease contract for 3 years, after the expiration of the contract the security deposit will be refunded to the merchants; In addition, according to the privilege policy, 1.5 years of rent and property cost can be deducted, the rent can be paid from the second year, taking the store area for 50 m2 as an example, the rent period is 3 years, the total rent amount is CNY46,537.5 (with no privilege policy), after given the deduction of rent costs, CNY23,268.75 of rent would be paid, the preferential costs for CNY23,268.75, as for the farmers who engaged in nursery planting, they can lease the commercial stores in nursery stock market, expansion the nursery stock sales outlets, to increase the income.

126. Field survey found that some of villagers (8 to 10 households) in Hutubi County formed a cooperative voluntary. They rent shops from Hutubi County national nursery stock trading market to run their business. The advantages of the cooperative are farmers can unified purchase and selling with competitiveness. It can strengthen the farmers’ bargaining ability, enlarge the production scale, increase products’ price and decrease material cost. Additionally, through the cooperative operation, the farmers can get more technical training or services and it will help the affect people restore their living condition and increase their income.

Figure 5-2: Hutubi County National Nursery Stock Trading Expositions

127. Throughout the production restoration process, the PMO will organize the APs for free technical training, such as some economic crops planting and farming as well as some other types of industries.

128. Meanwhile, during the subproject construction process, the IA will take some helps and supports and restoration measures for resettlement, including:

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(1) During the subproject, the Hutubi County will give priority to the affected persons to involve in the subproject labor; for example: Construction contractor provides the needed numbers and the working types before starting construction to local government and to discuss the training programs, so that more APs can benefit from it. According to the opinions survey, 91% of the APs want to participate in their slack time to this subproject. After all subprojects in Hutubi County completed, the road area, and green area will be increased, and the road maintenance equipment is improved, which requires more road maintenance workers, and green area management workers, lighting conservation and management of workers, equipment and vehicle drivers. According to the procurement of subproject construction content and devices, according to preliminary estimates the subproject implementation and operation period will create 171 jobs; the subproject is expected to generate jobs as shown in Table 5-4.

Table 5-4: The Number of Jobs to Be Generated from the Subproject Item Hutubi Sub-component Water Road Water supply Heating Gas Type drainage Subtotal component component component component component Technical 3 3 3 3 3 15 Temporary Non-technical 45 24 25 18 13 125 jobs Sub-total 48 27 28 21 16 140 Technical 2 2 2 2 2 10 Permanent Non-technical 5 4 4 4 4 21 jobs Sub-total 7 6 6 6 6 31 Total 55 33 34 27 22 171

Source: Feasibility study report prepared unit

(2) Throughout the production restoration process, all the APs will be organized to take technical training. such as some economic crops, to invite the technical staffs from agricultural sector and the labor and social security departments to train the affected people on farming technical and other aspects. Each affected household can receive at least twice training on farming and non-agricultural production training, through these measures to improve skills to increase income of affected persons to restore the livelihoods.

5.6. Resettlement Program for Displaced Households

5.6.1. Resettlement program for Rural Households 129. The households affected by HD may choose cash compensation or property right exchange or purchase commercial housing. They may choose a resettlement option based on affordability and individualized needs. During RP preparation, the households were consulted on their options.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

130. Of the 53 households affected by HD, only one household has chosen the property right exchange. Their current houses are mostly in earth timber and masonry timber structures, and out of repair, without central heating, water supply and drainage systems. Their surrounding environment and roads are poor, making traffic inconvenient. They will be eligible for improved housing with similar floor space. If the affected people choose property exchange, property registration and property certificates of the exchanged house are responded by HD office, and when it completed distributed to the affected people. 131. The other 52 households have chosen cash compensation, because they mostly have already purchased commercial housing in Hutubi County, so they will use compensation for other investments. 132. A real estate appraisal agency (the company should be an independent third party and be approved by both affected people and PMO) will appraise a house based on location, house structure, construction size, floor and decoration, and by reference to market price. The cash compensation will be fully paid at one time after signing the contract. After getting cash compensation, AHs can purchase commercial houses or buy a second house, according to the survey, the bungalow with an area of 250 to 300 m2, (the unit price is 1000yuan/m2)the transaction price is between 250000 yuan to 300000 yuan or do investment according to their individualized needs.

(1) Purchase of Commercial Housing 133. If AHs opt to purchase commercial houses or buy a business shops or a new house, an example is provided below.

134. Case: For example, for a household with four family members, if their house size is earth timber structure (main rooms)with 150.62 m2, the size in masonry timber structure (wing rooms) is 146.87 m2, and the size in masonry timber structure is 15.41 m2, and the open area that is residential land (which is identified as class 4) in yard is 440.87 m2, this household will receive the following compensation: (i) compensation for houses of the main residential house area (main rooms): CNY361,488, and the unit price is 2400yuan/m2; (ii) compensation for wing houses in masonry timber structure: CNY256288, and the unit price is 1475 yuan/m2; (iii) compensation for state-owned housing land: CNY13684 and the unit price is 888 yuan/m2; and residential land compensation CNY: 126088.82, and the unit price is 286 yuan/m2; (iv) compensation for attachments CNY21,270.3; (v) moving subsidy: CNY1,000, totaling CNY779819. Based on real estate prices of Hutubi County in the first half of 2016 (see table 5-3), the average price of new commercial houses of multi-storied buildings is CNY2450/m2. With the compensation, each AH may purchase a 110.1 m2 commercial house with three bedrooms, two living rooms and one bathroom in CNY 320,000, and has a remaining sum of CNY459,800, of which CNY100,000 can

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject be used for remodeling, and others may be used for other investments.

(2) Property Right Exchange 135. The compensation price for demolished houses will be determined based on independent third party house appraisal who will conduct survey company on-site and provide an evaluation report for each AHs, the evaluate will be on the basis the property specific location, construction structure, construction area, and decorate and the market price . Before the evaluated market price determined, the evaluation company need to take care the opinions of the affect people, if the affected people prefers to exchange, the costs balance between their compensations and resettlement houses will be calculated. Their housing compensation includes the evaluation market price and plus moving subsidy, temporary transition allowance, and land compensation fees, etc. If the compensation prices are higher than the resettlement house prices, the IA will pay the difference to APs in cash, otherwise , Aps should pay the difference . APs can select different floors of resettlement houses (apartment) and different types of houses. The floor prices are different see in Table 5-5.

136. According to the survey, there are several types and areas of apartment options for affected people to choose from. the average affected houses area is 229.01m2, the affected people can obtain 2 sets of replacement apartments with each area of 110m2, and no need to pay any costs. On the other hand, if the APs choose smaller type of apartment, the IA will pay the remaining compensation funds to HD people. 137. The property exchange proportion: the property exchange on the basis of resettlement houses standard, replacement ratio will in accordance with 1:1.

138. Case: If any AHs select the property right exchange, the building area in the same to their former houses will be exchanged, while other houses (structures/extensions) and other facilities will be compensated for at appraised price. For example, for a household with three persons, if the total area is 182.05 m2, the size in earth timber structure (main rooms) is 143.96 m2, and the size in masonry timber structure (wing rooms) is 38.09 m2, and the open area is 671.87 m2, the house will get CNY607,800 including moving subsidy, attachments compensations and so on. If this household selects property right exchange, it will exchange its house for a 110.1 m2 apartment with three bedrooms and two living rooms and a garden at the price of CNY2,842/m2. Currently the average AHs have 3.5 people and the resettlement house with three bed rooms, two living rooms and a wash room in 110.1 m2 can meet their need.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 5-5: Commercial house price of Hutubi County in 2016

Plots similar to areas to be demolished First floor CNY2,842/m2 First floor CNY2,744/m2 Second floor CNY2,842/m2 Second floor CNY2,866.5/m2 Third floor CNY2,793/m2 Third floor CNY2,866.5/m3 With garden Without garden Fourth floor CNY2,450/m2 Fourth floor CNY2,450/m2 Fifth floor CNY2,058/m2 Fifth floor CNY2,058/m2 Sixth floor CNY1,715/m2 Sixth floor CNY1,715/m2 Source: Hutubi County house levy management office, 2016

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Plots similar to areas to be demolished Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor

r 1 2 3 4 5 6 7 8 9 Floor 9 Pric 2,278. 2,327. 2,376. 2,425. 2,474. 2,523. 2,572. 2,621. 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 10 Pric 2,278. 2,376. 2,425. 2,474. 2,621. 2,670. 2,303 2,352 2,548 2,450 e 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 11 12 12 Pric 2,278. 2,327. 2,376. 2,425. 2,523. 2,621. 2,719. 2,768. 2,254 2,303 2,352 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 11 12 13 13 Pric 2,278. 2,327. 2,376. 2,425. 2,523. 2,621. 2,719. 2,817. 2,254 2,303 2,352 2,401 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14 Pric 2,278. 2,327. 2,376. 2,425. 2,572. 2,621. 2,670. 2,768. 2,254 2,303 2,352 2,401 2,499 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15 Pric 2,229. 2,278. 2,327. 2,376. 2,425. 2,523. 2,670. 2,817. 2,254 2,303 2,352 2,401 2,597 2,744 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor

Floor r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 Pric 2,229. 2,278. 2,327. 2,376. 2,425. 2,572. 2,768. 2,817. 2,205 2,254 2,303 2,352 2,499 2,646 2,695 2,450 e 5 5 5 5 5 5 5 5 Floo Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor Floor r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 17 Pric 2,229. 2,278. 2,327. 2,376. 2,425. 2,523. 2,572. 2,621. 2,768. 2,866. 2,205 2,254 2,303 2,352 2,401 2,695 2,450 e 5 5 5 5 5 5 5 5 5 5 Source: Hutubi County house levy management office, 2016

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139. According to the social survey, of the house demolition affected households, the maximum homestead area for 1,677 m2, and the minimum homestead area is 142.55 m2. The demolition of Hufang Road is all in Hezhuang Village, because they are affected by the integration of urban and rural, the Hezhuang Village has become an urban village. The village has built a community called Anjufumin, the villagers in the village have bungalow in the village and building in the community, most of them have moved to the buildings, parts of them are unwilling to move to the building because they have a large area of homestead. After the demolition, they could build house in other place of the homestead and they can also do some business in their own home to improve their family income after the subproject. For the affected people from Changhua Road, based on their opinion, the house demolition has no impact to them, most of the villagers have buildings in the County, and the demolished bungalows are mainly to rent out to the migrant workers. On the subproject demolition, the owner needs 3 months in advance to inform the tenant of the relocation and refund the paid rent, or given an appropriate compensation according to the housing rental contract.

Figure 5-3: Anjufumin Resettlement Community of Hezhuang Village

5.6.2. Resettlement Housing Options 140. The resettlement housing will provide a variety of units and more than one area for the residents to choose, the main resettlement areas are Xijingxiaoyue community, Beiyuan community, Ningdouhuayuan, Xibanyaxiaozhen. 141. The determination of the resettlement community is based on the consulting between the PMO and affect people, all of these resettlement communities are around the demolished area, it is about 1.5 km away from the demolished house; therefore through the discussion and consulting they choose Xijingxiaoyue community, Beiyuan community, Ningdouhuayuan, Xibanyaxiaozhen as resettlement communities. 142. All the resettlement communities and relevant information have been posted in the hall of land acquisition office, the information including the source of resettlement, area, floor, and the introduction of relevant supporting facilities, to make people learn more about the resettlement

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject communities and the condition of resettlement house. 143. Through the survey we found that, all of the 4 provided resettlement communities are around the HD area, therefore the social economy and cultural composition are the similar with their original living area, there is no social economy and cultural difference exists, the affected people will adapt to the new life as community residents.

144. Introduction on Xijingxiaoyue Resettlement Community—this community is located on the north of Dongfeng Avenue and on the south of the 2nd primary school, the total investment of the community is CNY100 million, total land use area is 9,749.21 m2, and the total construction area is 29,051.84 m2. The community has a total of 165 residential units. And the construction structure is frame structure, building density is not more than 35%, the volume rate is 2.5, green rate is 30%. The community started to construct on April 2015, and has deliver the apartments at present. The community is constructed in strict conformity with the Building Code for urban residential district planning and design, and has such public facilities as nursery, kindergarten, primary school, health center, cultural activity station, savings office, postal office, community service center, property management and commercial services; it is about 600 m from this community to the Second middle school, Second primary school, Second kindergarten and People's Hospital. There are three room layouts: (i) two bedrooms and one living room, (ii) two bedrooms and two living rooms, and (iii) three bedrooms and two living rooms. 5 housing sizes are available – 92.88 m2, 88.33 m2, 79.99 m2, 94.62 m2, 93 m2, 108.18 m2, 110.1 m2, and 94.23 m2.

Figure 5-4: Xijingxiaoyue Resettlement Community

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145. Introduction on Beiyuan Resettlement: The total land use area is 92.2 mu , and the total construction area is 72,700 m2, planning to build 28 buildings with 992 households; and there are 2 construction period in total; and the first phase of Beiyuan community has a total land use area of 43 mu, and total construction area of 36,900 m2, it has built 13 buildings with 592 households (including 6 buildings with 360 households low rent housing and 232 households resettlement house), and the first phrase of Beiyuan community has completed in August 2014; the second phase of Beiyuan community occupy 49.2 mu of land, and the total construction area is 35,800 m2,planning to build 13 buildings with 400 households. At present the 15#, 16#, 17#, and 18# buildings are under the construction, the total construction area is 12,700 m2. The community is constructed in strict conformity with the Building Code for urban residential district planning and design, and has such public facilities as nursery, kindergarten, primary school, health center, cultural activity station, savings office, postal office, community service center, property management and commercial services. There are three room layouts: (i) two bedrooms and one living room, (ii) two bedrooms and two living rooms, and (iii) three bedrooms and two living rooms. 5 housing sizes are available – 92.12 m2, 80.30 m2, 80.34 m2, 94.28 m2, 93.44 m2, 108.18 m2, 108.12 m2, 98.88 m2. It will be completed in June 2017.

Figure 5-5: Beiyuan Resettlement Community

146. Introduction on Xibanyaxiaozhen Resettlement community: the community is the

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject resettlement community under construction, and located in the south of Dongfeng Avenue, the west of Liangzhongchang Road, the total land use area is 60,687.57 m2, and the green area accounted for 38.2% of the total planning area; the community has 16 sold-buildings with 363 households, and has different room layouts: 70-120 m2. There are 58 households in 70 m2, 96 households in 80-90 m2, and 146 households in 90-110 m2, 63 households over 110 m2, and 396 ground parking spaces. The community is constructed in strict conformity with the Building Code for urban residential district planning and design, and has such public facilities as nursery, kindergarten, primary school, health center; cultural activity station, savings office, postal office, community service center, property management and commercial services; it is about 500 m from the community to the Sixth middle school, and 1.2 km to People’s hospital. The apartment will be delivered in December, 2016.

Figure 5-6: Xibanyaxiaozhen Resettlement Community 147. Introduction on Ningdouhuayuan Resettlement community: it is located in the southwest of the Hutubi County, and close to Province Road 201, the north is Zhuoyuekangcheng community (under construction), the east is Shangergong Road, the south is Petroleum apartment, the west is Fuyuan community and close to the Third primary school and the Forth junior high school. The planning construction area is 37,041.7 m2, and the actual land use area is 69,624 m2, volume rate of 1.67, building density of 18.2, green space rate of 36.7, parking space 318 (including 91 space above the ground and 227 under the ground). There are 5 buildings (with 15 floors) with 480 households and 3 buildings (with 6 floors) with 132 households including 24

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject households low rent housing, and there are 18 households’ commercial shops accounting for the area of 2,195 m2. There are 2 gates of the community, and the transportation is very convenient, it will deliver the apartments in December 2016. The community is constructed in strict conformity with the Building Code for urban residential district planning and design, and has such public facilities as nursery, kindergarten, primary school, health center, cultural activity station, savings office, postal office, community service center, property management and commercial services; it is about 1 km from the community to the first middle school, and 1.1 km to Hospital of traditional Chinese Medicine.

Figure 5-7: Nidouhuayuan Resettlement Community Plan (Effect Picture)

Figure 5-8: Construction Sites of Ningdouhuayuan Community

5.7. Training 148. In addition to cash compensation to the APs, the subproject might consider offering technical assistance to affected people and village governments to educate them about maximizing compensation payments though long-term investment strategies. It will also combine with the vocational education program of Hutubi, and formulate the special training program, mainly to provide skills training opportunities for the farmers who are affected by land acquisition and house demolition. In order to follow out the spirit of document on implementing the new concept of development of comprehensive well-off society goal of speeding up agricultural

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject modernization opinions from State Council. To strengthen and expand new subjects of agricultural management oriented, and rely on primary industries, insisted on the requirement of invigorate agriculture by relying on science and education, attract more talents to strengthen the Chinese agriculture field. To provide strong support for modern agriculture, a professional farmer team needs to be established, and combine the local industry and rural characteristics to carry out free training program. According to different training types, government subsidies will be provided, the standard is CNY250—3,000/person. In this subproject there are 550 person-times will be trained in total, and at least two person-times of each AH will be trained. 30% of person-times of training will be provided to women. See Table 5-6.

149. In order to improve the living and income condition of the affect people, in addition to cash compensation, benefit sharing schemes were also been considered through fully consulting, making the actual restoration plan for the affected people for their long term development, in particular, offering technical assistance to affected people and village governments to educate them about maximizing compensation payments though long-term investment strategies. Detailed see in Table 5-6; through the technical training and non-agriculture production skill training, to enhance the skills and economic income of the affect people. With the improvement of urban functions and the increase of urban scale, Hutubi County's commercial and service industry has also been fast developed, and more and more people have engaged in these sectors. So the AHs can use cash compensation for commercial and service industry investment. (i) For example: with the increase of urban area, and the improvement of road conditions, the demand for taxi is continually increased, and the affected villagers can use the compensation money to buy a car as taxi. They can also improve the income by renting the commercial houses with the cash compensation or engage in commercial activities, such as running a department store, or running a restaurant. (ii) To adjust agricultural structure, guided by government departments, and conduct training on planting and skill training, secondly, with the guidance of government, produce the high efficient crops to plant, after LA, the affected farmers could use the land compensation to expand economic crop planting acreage, to enhance the income. (iii)To the affected farmers, especially the ethnic minority households, the government functional department have the priority to rent shops for these households in Hutubi County nursery market, reduce their rent to help them restore their family income; the ethnic minorities are good at catering; they can rent a house and open a restaurant. (iv) provide training on economic crop planting, pouty raining, non-agriculture skills will be provided to affected households at least one time per household. By taking all those measures to improve the income of the affected, to make sure the normal livelihood of the affected could be restored

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(1) Scope of training: According to the industry and market demands of Hutubi County and surrounding areas, through the survey the farmers hope that vocational skills training should be conducted with focus on crop cultivation, livestock breeding and services such as repair, electric welding, tailoring etc.

Table 5-6: Arrangements for Training

Expected training No. Type of training Target groups Person-times Female Time costs (CNY10,000) LA affected 1 1.72 350 105 Farming technique households 2017.12 Affected by both 3 2.75 100 30 Business training LA and HD 2017.12

Skill training: machine Affected by both 2017.12– 4 1.61 100 30 repair, electric, welding, LA and HD 2020.2 tailoring, cooking 5 Total 6.08 550 165

(2) Forms of training: The forms of training include vocational skills training, single-skill training and on-the-job training, in which vocational skills training will be conducted by training institutions and employers under the leadership of the department in charge of labor and social security, with focus on farming, stockbreeding and crop cultivation skills. (3) Organizational structure: Hutubi County Government has established the Project Leading Group, and the training working team will be affiliated to the Hutubi PMO, which will be located at the Hutubi County Labor and Social Security Bureau. (4) Funding: The training budget of the subproject is CNY60,800. The training budget include organizational, teaching material, printing, examination and practice costs, and trainer remuneration, which will be paid by the training working team of the subproject. The training expense has included in the budget of Vocational Education sub subproject.

5.8. Supporting Program for Vulnerable Groups 150. All the vulnerable AHs not only can get the fixed compensation for LAR and policies of Hutubi County for vulnerable people, but also can enjoy some other policies: (1) Hutubi County Government will provide security houses to vulnerable people. ¢ As for the HD affected people, who owns only 1 set of house and the evaluated price cannot afford replace 70m2 apartment, according to the compensation for demolition of minimum safeguards, Hutubi government will provide the affected people resettlement apartment, and no need to pay the extra money. ¢ They have priority to select resettlement housing floor, location, and dwelling. Considering the living condition, the aged and disable groups can choose lower floor apartments for priority.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

(4) Hutubi PMO will provide them technical training, and employment information and guidance to increase employment opportunities. (5) During the construction subproject, unskilled labor would provide to them in priority. (6) Set up a special subsidy at CNY1500 into the resettlement budget, to help vulnerable households. The affected vulnerable household is affected by LA, and his wife is deaf and mute disabled persons, the PMO decided to paid a lump sum CNY 1500 special assistant to his family.

5.9. Protection of Women’s Rights 151. Women will participate fully in resettlement activities through information disclosure and village meeting, and enjoy the same rights as men in compensation, employment and training. In addition, the following measures will be taken to help women restore income: ‹ At the construction stage, it should be ensured that a certain number (at least 30%) of women receive unskilled jobs generated by the Subproject, and women and men will receive equal pay for equal work; ‹ Skills training, including training on stockbreeding and crop cultivation, will be first made available to affected female laborers so that their economic status is not reduced; ‹ At the operation stage, cleaning, landscaping and environmental sanitation jobs will be offered to affected women to ensure their income restoration; and ‹ Affected women will receive relevant information, and participate in public consultation and resettlement. ‹ Affected women will receive relevant information, and participate in public consultation and resettlement. Both spouses must sign the compensation agreements.

5.10. Ethnic Minority Development 152. The population affected by HD includes 57 minority households with 215 persons, manly being Kazak, Uygur, Hui peoples. Through the survey, the minorities live together with the local other groups, the subproject will involve the HD of minority people, but the HD will not separate the minority groups and the subproject will not Impact their rights of land access and use of resource; therefore affected minority people in the subproject enjoy the local social status, and their economic status is consistent with the Han, and retains their national characteristics in the habits and religion. The minority population will enjoy the same rights to compensation for LA, HD and resettlement as the Han population, and have priority in employment and training, overall there is no different between Han and minorities. In addition, the RP / EMDP will support social and cultural institutions of displaced persons and host populations, the subproject provides an assessment on the changes in community composition in the host settlement areas might create additional strain on cultural institutions (such as mosques). It was identified that mosques are located nearby the resettlement sites, where is convenient for the ethnic minorities to do worship.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

If additional strains will be identified during the implementation stage, the subproject will further consider appropriate mitigation measures. A separate Ethnic Minority Development Plan (EMDP) has been developed to promote the development of ethnic minorities.

5.11. Restoration of Infrastructure and Ground Attachments 153. Affected infrastructure and ground attachments will be restored by proprietors after receiving compensation from the owner of the subproject. Restoration measures must be planned in advance, and suited to practical conditions, so as to be safe, efficient, timely and accurate, with minimum adverse Impact on nearby residents.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

6. Public Participation and Grievance Redress

154. According to relevant policies and regulations of the PRC, regional and municipal on LAR, it is very necessary to conduct public consultation and encourage active participation of APs in subproject 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 properly. Consultation has been fully highlighted during preparing RP, and organizing implementation.

6.1. Consultation at Preparation Stage

6.1.1. Completed Public Participation Activities 155. As to all significant topics for discussion involved in the planning stage of resettlement, the PMO has organized meetings and discussions of design institute (DI), consultant agency, local communities and APs to disclose information and conduct public consultation in various ways from June 2016 to August 2016, including: (i) Design optimization discussion in order to minimize land acquisition and resettlement Impacts; (ii) Impact survey based on the FSR to get detailed information on population, houses, land, special facilities, APs, shops and enterprises in the subproject area; (iii) Consultation with managers of affected villages, to get the socio-economic background of them and discuss the LA options and the compensation standards with the villagers; and Opinion survey on Aps. (iv) The PMO organized meetings that were attended by a representative sample of affected stakeholders, including women, elderly people and children. (v) The PMO and RP preparation agency will make a detailed discussion with the affected representatives on the draft RP and information disclosure.

156. The public participation and consultation provided a basis for the improvement of the RP. During consultation, Uygur or Kazak language translator is arranged for the ethnic groups who cannot speak Han language.

157. These meetings and surveys played an important role in developing rational compensation rates, restoration programs and training programs. It has been found that the AHs’ main concerns are: (i) Since the LA area is not large, the LA will have little Impact of their income condition. They only concern whether the compensation can be paid timely and whether crop cultivation training and livestock breeding technical training can be conducted. (ii) During the survey and consulting, affected people were asked if they would prefer getting

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

access to additional farming land instead of cash compensation for their loss, but voted in favor of cash compensation. As for house demolition, the APs’ first concern was the compensation standards, then was the resettlement sites, and finally was life issues during the transition period. (iii) For the removal from the demolished cottage to the building are acceptable, that is regarded as an opportunity to improve their living conditions. (iv) Women believe that after relocated to the building, the heating problem in winter has been resolved, which can reduce the pressure on women's labor and the heating costs. (v) Due to the construction of the road, inconvenience to daily travel would be problems, the construction process may cause noise, dust, construction waste; and have to take measures to deal with or mitigate pollutions. (vi) The road construction period and dates should be published promptly to inform the residents living nearby, let them know the inconvenience in advance.

158. Based on the above discussions, the PMO: (i) Has developed land acquisition compensation standards, and will inform to the APs in advance. After the agreement is signed, the land compensation will be paid timely. (ii) Discussed with Hutubi County People's Government about APs most concerned issues, such as the resettlement work, and discussed with the labor and social security bureau about the relevant training issues for AHs. (iii) Discussed a satisfied resettlement plan for the APs with Hutubi house demolition department and resettlement house construction units. On the one hand, the house demolition department will further explain the policies on house demolition and compensation standards to the affected households, on the other hand, resettlement house construction units should regularly announce the resettlement house construction situation to the affected households. Life issues during the transition period for affected households concern, resettlement housing construction is urged to be completed as soon as possible, and transition costs should be given to the affected families, to give some help for vulnerable groups to ensure they can go smoothly with the transition period. Some important issues during the subproject preparation consultation/meeting are listed in Table 6-1.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Picture 6-1: Public Participation Activities during Subproject Preparation Stage

Table 6-1: Public Participation Activities during Subproject Preparation Stage Amount of Location Date Participants Key Topics persons/females ‹ Introducing the Hezhuang Village, APs, PMO, background and purpose Xiatougong Village, community officials, of the subproject 2016.1-2016.7 150/75 Yuanhucun Town DI, RP preparation ‹ how to minimize the Liangzhongchang agency cultivated LA and HD Impacts APs, PMO, ‹ proposed compensation Hezhuang Village, community officials, rates; Xiatougong Village, DI, RP preparation 2016.7.15 100/50 ‹ revenue sources of the Yuanhucun Town agency and L&R affected villagers Liangzhongchang Bureau, and LA ‹ construction progress department APs, PMO, ‹ location of resettlement Hezhuang Village, community officials, site Xiatougong Village, 2016.8.11 RP preparation 100/55 ‹ The needs of trainings; Yuanhucun Town agency and LA ‹ income restoration Liangzhongchang department measures ‹ design for resettlement APs, PMO, RP PMO 2016.8.12 50/25 houses; preparation agency ‹ construction progress; APs, PMO, ‹ discuss the draft report community officials, on resettlement RP preparation ‹ discuss future PMO 2016.8.20 95/45 agency, L&R counseling plans Bureau, and LA ‹ future information department disclosure plan

6.1.2. Opinion Survey Results 159. The respondents include the 149 rural AHs affected by LA demolition. The survey on 149 AHs showed that most of them know that the subproject is about to be constructed and support for it, and most of them thought the road condition and lacking of facilities has badly impacted their life. 40.78% thought this would improve their living environment, and 26.39% thought it would improve their working environment, 20.77% thought it would generate more job opportunities; 91.73% are aware or somewhat aware of the compensation and resettlement policies for LA and HD; 98.11% would file an appeal when their lawful rights and interests are infringed on during resettlement. See Table 6-2.

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Table 6-2: Public Opinion Survey Results Option 1 Option 2 Option 3 Option 4 Option 5 No. Question Result Result Result Result Option Result Option 1 Option 2 Option 3 Option 4 (%) (%) (%) (%) 5 (%) Do you know that the 1 subproject is about to be Yes 93.27 Not quite clear 2.15 Unclear 4.58 — — — — constructed? Do you support the 2 Yes 90.38 No — Do not care 9.62 — — — — subproject? Improve traffic conditions Which benefits will the road residents travel Improving living 3 69.52 30.48 No benefit — — — — — construction have? to promote environment urban development How do current road 4 conditions affect your lives None 9.62 Not serious 21.34 Serious 43.22 Very serious 25.82 — — and work? Improving Generating Improving What benefits will the Improving living 5 40.78 working 26.39 job 20.77 mental and 12.06 — — subproject have for you? environment environment opportunities physical health Potentially Other What adverse Impacts will Reducing Affecting traffic leading to advers 6 the subproject have on No adverse Impact 45.92 33.47 10.89 income due to 9.72 — safety property e you? LA losses Impacts Are you aware of the compensation and 7 Yes 91.73 Somewhat 7.21 No 1.06 — — — — resettlement policies for LA and HD? Will you file an appeal when your lawful rights and 8 Yes 98.11 Do not know 1.89 — — — — — — interests are infringed on during resettlement?

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

6.2. Public Participation and Consultation Plan 160. This Resettlement Plan (RP) is prepared based on the Feasibility Study Report (FSR) and the socio-economic survey data of the subproject. The RP shall be updated according to the detail measurement survey and census data of affected persons based on detailed design of the subproject; the updated RP shall be submitted to ADB for review and approved by ADB concurrence prior to start of LAR activities. 161. During the implementation of the subproject, the PMO, women's Federation, community committee staffs will establish a cooperation mechanism, through held forum among women and other ways to learn about their demands, hopes at different stage of the subproject. During the whole progress of the subproject, the subproject implementation agency invited the women's Federation staffs to join in. 162. With the progress of subproject preparation and implementation, Hutubi County PMO, affected village committee, and communities will conduct further public participation, including the LA compensation standard, and the scope of training for the APs, disclosing construction issues, soliciting comments and expectations from the APs during updating and implementation, disclosing the compensation rates and appeal channel, etc., and learning RP implementation progress and the APs’ livelihood restoration. See Table 6-3.

Table 6-3: Public Participation Plan Purpose Mode Time Agencies Participants Topic Feasibility Study Disclosure of Disclosure of Distribution 2017.2 PMO All APs compensation rates, the RIB and appeal channel Disclosure of RP on ADB ADB website 2017-02 Website Detailed Design According to the Resettlement office, final design To conduct the Bulletin board, affected villages, verification 2017.3 All APs measurement and village meeting communities and detailed survey assessment individuals (DMS) Update the RP Updating the Resettlement office, and Update the RP and according to the 2017.3-4 All APs data of the RP consulting experts submit to ADB modified data Disclosure of ADB website 2017.04 ADB the Updated RP PMO and L&R Bureau, LA Disclosure of LA area, LA Bulletin board, 2017.3 department and officers of All APs compensation rates announcement village meeting affected Villages and LA schedule Announcement PMO and L&R Bureau, LA of Bulletin board, Compensation fees 2017.3 department and officers of All APs compensation village meeting and mode of payment affected Villages program for LA

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Purpose Mode Time Agencies Participants Topic Discussing the final Determination PMO and L&R Bureau, LA income restoration of Resident meeting 2017.4--5 department and officers of All APs program and the compensation affected Villages program for use of plan compensation fees Notification of PMO and L&R Bureau, LA Notification of compensation Resident 2017.4-5 department and officers of All APs compensation fees amounts and meeting affected Villages and date of payment date of payment Discussion of detail Skill training Resident 2017.12 – PMO and L&R Bureau, Affected training requirements arrangement meeting 2019.12 Village Committees Labor and timeframe Discussion of resettlement building Persons Relocation PMO, Construction Bureau, structure, construction Resident affected by planning and 2017.4-6 Transportation Bureau and schedule, facilities in meeting house implementation Village Committees resettlement demolition communities, public transportation, etc. PMO and L&R Bureau, LA Learning RP Random Monitoring for 2017.4 – department and officers of implementation Family survey sampling, APs 2020.12 affected Villages, the progress and the APs’ all APs affected people livelihood restoration

6.3. Grievance Redress Mechanism

163. Since public participation is encouraged during the preparation, updating, and implementation of the RP, no substantial disputes are anticipated. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of subproject construction and land acquisition, a transparent, accessible and effective grievance redress mechanism has been established. The system has shown in figure 6-1. The basic grievance redress system is as follows: Stage 1: If any AP is dissatisfied with any land acquisition and resettlement of any other safeguards related problems, he/she may file an oral or written appeal with the community committee/sub-district office orally or in writing. In case of an oral appeal, the community committee/sub-district office shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Hutubi County Land and Resources Bureau or the LA and HD management office (depending upon the issue) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Hutubi County PMO receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Hutubi County Government after receiving such disposition within 3 months. Alternatively, he/she may file an action in a civil court in accordance with the

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Civil Procedure Law of the PRC at any time irrespective of the use and progress of the GRM process. 164. At each stage, when the responsible agencies receive the appeal, it will be also copied to the PMO for discussion, so that the grievance can be redressed at lower levels. All grievances (and their resolution) at each stage will be recorded and kept. The PMO will report the grievances and their resolution) to ADB in semiannual monitoring reports. If the affected people are still not satisfied with the results above, they may submit their complaint to ADB's Accountability Mechanism (2012).6 The first step requires good faith efforts to resolve the problem with the ADB Project Team. Besides, reporting behaviors which are against ADB's policies or procedures also welcomed. Website is:www.adb.org/Accountability-Mechanism/. APs may file an appeal on any aspect of resettlement, including compensation rates, etc. The above means of appeal, and the names, locations, persons responsible and telephone numbers of the appeal accepting agencies will be communicated to the APs at a meeting, through an announcement or the RIB, so that the APs know their right of appeal. Mass media will be used to strengthen publicity and reportage, and comments and suggestions on resettlement from all parties concerned will be compiled into messages for disposition by the resettlement organization at all levels. 165. Through social survey, the similar levels of educational attainment found between women and men in the subproject area, as well as the similar distributions of income-generating occupations (see Section 3.3), as well as the relative social equality of women and men in the subproject area and the presence of women at the committee/sub-district office. There are no significant barriers to women’s access of the GRM. 166. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingency costs. During the whole construction period of the Subproject, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues.

6 http://www.adb.org/Accountability-Mechanism/default.asp. 79

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Hutubi County County Legal authority People’s Government

ADB County Disciplinary Inspection authority LAB/HDO/PMO

External monitoring County appeal accepting Town government / authority Community / village committee

Affected household

Figure 6-2: Grievance Redress Flowchart

6.4. Appeal Contact Information 167. In order that the APs can feed back their grievances timely, contacts have been appointed for different appeal accepting agencies and their contact information disclosed.

Table 6-4: List of subproject contacts

No. Unit Position Name Tel

Hutubi County Bureau of Housing and Urban-rural Deputy director 1 Haimiao 18199286555 Construction general

Hutubi County Bureau of Housing and Urban-rural 2 Director Zhou Haitao 13689933666 Construction

Hutubi County Bureau of Housing and Urban-rural 3 Clerk Liyang 13689933488 Construction

4 Hutubi County Land Bureau Director Liu Zhongping 18999352211

5 Hutubi County Land Acquisition Office Section Chief Gong 13039408333

6 Hutubi County Yuanhucun Town Liangzhongchang Captain Ma Yongcheng 13999346673

7 Hutubi County Hutubi Town Government Mayor Nuersitan 18196162122

8 Hutubi county Hezhuang Village committee Secretary Baiyun 13565333305

9 Hutubi County Yuanhucun Town Government Mayor Chen 13899683290

10 Hutubi County Xiatougong Village Secretary Cao Guangbin 18997563968

11 Hutubi County Xiatougong Village group 3 Captain Li Wanbin 15299601333

Responsible 12 Hutubi County Ershilidian town government Mateng 18809943322 person

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No. Unit Position Name Tel

13 Hutubi County Xiatougong Village group 2 Captain Wangjun 13899613890

14 Hutubi County Ershilidian town government Mayor Xuan Xiaobin 13565347555

15 Hutubi County Yuanhucun Town government Mayor Wenbo 18699472655

Responsible 16 Hutubi County Department of letters and visits Office 0994-4509513 person

Responsible 17 Hutubi County Discipline Inspection Department Office 0994-4502422 person

Responsible 18 Legal Department of Hutubi County Office 0994-4502260 person

To be 19 External M&E agency -- determined

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7. Resettlement Budget

7.1. Resettlement Budget

168. All costs incurred during LAR will be included in the general budget of the subproject, all resettlement costs will be from domestic funds, which is CNY77.99 million in total, as detailed in Table 7-1. ‹ State-owned land occupation: CNY1.42 million in total (1.82% of total costs) including State-owned residential land, State-owned cultivated land; ‹ Acquisition of collective land: CNY22.55 million in total (28.91% of total costs), including cultivated land compensation, collective land compensation etc.; ‹ Residents Housing Demolition: CNY36.67 million in total for house demolition (47.01% of total costs), including house structure compensation, relocation subsidy, temporary transition fees; ‹ Attachments and infrastructure: CNY0.12 million (0.16% of total costs); ‹ Other costs: including survey and design fees, construction management fee, external monitoring and evaluation, implementation management fees, skills training costs, Special support fee for vulnerable groups and contingencies, totaling CNY9.18 million (11.76% of total costs); ‹ Stipulated fees for land acquisition: totaling CNY8.06 million (10.34% of total costs)

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Table 7-1: Resettlement Cost Estimates

Changhua Road Hufang Road Dongfeng Avenue Total (ten compensat compensat compensat Proporti No. Item Unit subtotal subtota subtotal thousa Remark ion ion ion on quality (1000 remark quality l (1000 remark quality (1000 remark nd standard standard standard yuan) yuan) yuan) yuan) (unit/yuan) (unit/yuan) (unit/yuan) State-owned land 142.30 — — 142.30 1.82% acquisition State-owned land m2 105.78 — — 105.78 compensation inside the inside the 1833.3 m2 20 3.67 built-up — — — — — — — — 3.67 built-up 3 Urban area area State-owned land outside outside the Compensation the m2 10 — — — — — — — — — — — built-up built-up area area Residential land 1833.3 m2 557 102.12 — — — — — — — — 102.12 (Class 2) 3 State-owned farmland 36.51 — — 36.51 Acquisition 1 farmland (nursery) 0.00

Land mu 12000 6.35 7.62 — — — — — — — — 7.62 compensation fee Resettlement fee mu 25500 6.35 16.19 — — — — — — — — 16.19 Estimate the average price, the actual Yong crops mu 20000 6.35 12.70 compens — — — — — — — — 12.70 ation will be based on the evaluatio n price Collective land 288.36 856.34 1109.79 2254.50 28.91% acquisition

farmland (nursery) mu 135.07 237.88 761.82 1134.76 2 Land mu 12000 23.49 28.19 12000 41.37 49.64 12000 132.49 158.99 236.82 compensation fee Resettlement fee mu 25500 23.49 59.90 25500 41.37 105.49 25500 132.49 337.85 503.24

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Estimate Estimate Estimate the the the average average average price, the price, the price, the actual actual actual Yong crops mu 20000 23.49 46.98 compens 20000 41.37 82.74 compensa 20000 132.49 264.98 compensa 394.70 ation will tion will be tion will be be based based on based on on the the the evaluatio evaluation evaluation n price price price

collective — 414.07 — 414.07 reserved land Land mu — — — 12000 110.42 132.50 — — — 132.50 compensation fee Resettlement fee mu — — — 25500 110.42 281.57 — — — 281.57 collective 153.30 204.40 347.98 705.67 homestead Class 2 m2 557 — — 557 — — 557 — — —

Class 3 m2 405 — — 405 5046.83 204.40 405 — — 204.40 5359.9 Class4 m2 286 153.30 286 — — 286 — — 153.30 9 16035. Over class 4 m2 217 — — 217 — — 217 347.98 347.98 72 Resident house 3 1283.67 1892.08 490.76 3666.50 47.01% demolition House

compensation Masonry concrete m2 2400 747.03 179.29 2400 5370.55 1288.93 1800 154.17 27.75 1495.97 Main Masonry timber m2 2400 746.63 179.19 2400 242.14 58.11 1800 245.80 44.24 281.55 room 2420.9 1136.2 Earth timber m2 2400 581.04 2400 386.75 92.82 1800 204.52 878.37 8 1 Masonry concrete m2 1475 802.96 118.44 1475 588.08 86.74 — — — 205.18

Masonry timber m2 1475 60.25 8.89 1475 423.24 62.43 — — — 71.31 wing room Earth timber m2 — — — — — — — — — 0.00 Masonry color m2 928 507.00 47.05 835 1234.61 103.09 — — — 150.14 steel Masonry timber m2 888 754.64 67.01 888 287.40 25.52 888.00 779.39 69.21 161.74 Affiliat Earth timber m2 511 150.25 7.68 — — — 511.00 548.97 28.05 35.73 ed Basement m2 1200 15.00 1.80 — — — — — — 1.80

Masonry concrete m2 — — — 1622 204.97 33.25 — — — 33.25 Masonry color m2 — — — 928 204.02 18.93 — — — 18.93 steel Shed Masonry timber m2 — — — 630 254.09 16.01 — — — 16.01

Earth timber m2 330 180.22 5.95 — — — — — — 5.95

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Other subsidies m2 0.00 Redecoration and Evaluatio Evaluation Evaluation Evaluation price — — 51.24 — 66.34 — 92.29 209.87 attachment n price price price

Moving subsidies household 1000 19.00 1.90 1000 21.00 2.10 1000 13.00 1.30 5.30

Temporar Temporari Temporaril ily prepay ly prepay Temporarily y prepay 18 month, 18 month, prepay 18 18 month, it would it would month, it it would be be be would be Temporary calculated yuan/month/hous calculated calculated calculated transitional 1000 19.00 34.20 1000 21.00 37.80 according 1000 13.00 23.40 95.40 ehold according according according to subsidy to the to the to the the actual actual actual actual costs of costs of costs of costs of implementat implement implemen implement ion ation tation ation

Attachment and

Facilities Total of compensation Evaluatio Evaluation Evaluation Evaluation Evaluatio 4 Evaluation price 6.32 2.34 3.57 12.23 0.16% fees for n price price price price n price attachments Subtotal of item 5 1720.64 2750.76 1604.13 6075.53 77.90% 1～4 Other costs 259.82 415.37 242.37 917.57 11.76%

Based on the Survey, design percentage of 1720.6 1604.1 and research land acquisition 3.00% 51.62 3.00% 2750.77 82.52 3.00% 48.12 182.27 4 3 costs and resettlement compensation fee

6

Based on the Implementation percentage of 1720.6 1604.1 management land acquisition 3.00% 51.62 3.00% 2750.77 82.52 3.00% 48.12 182.27 4 3 costs and resettlement compensation fee

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Subproject Hutubi County Subproject

Based on the percentage of Skills training 1720.6 1604.1 land acquisition 0.10% 1.72 0.10% 2750.77 2.75 0.10% 1.60 6.08 costs 4 3 and resettlement compensation fee

Special support for — — — — — — — 0.15 0.15 0.15 vulnerable groups

Based on the House percentage of 1720.6 1604.1 resettlement 0.50% 8.60 0.50% 2750.77 13.75 0.50% 8.02 30.38 House demolition 4 3 assessment fee compensation

Based on the External percentage of 1720.6 1604.1 monitoring and land acquisition 0.50% 8.60 0.50% 2750.77 13.75 0.50% 8.02 30.38 4 3 evaluation fees and resettlement compensation fee

Based on the percentage of 1720.6 1604.1 Contingencies land acquisition 8.00% 137.65 8.00% 2750.77 220.06 8.00% 128.33 486.04 4 3 and resettlement compensation fee

Stipulated fees for land 76.59 389.59 340.06 806.25 10.34% acquisition New construction 19893. 101193. 88326. land occupancy m2 14 27.85 14 141.67 14 123.66 293.18 33 33 67 7 charge Cultivated land 19893. 101193. 88326. m2 20 39.79 20 202.39 20 176.65 418.83 occupation fees 33 33 67 Cultivated land mu 3000 29.84 8.95 3000 151.79 45.54 3000 132.49 39.75 94.24 reclamation fee

Total 2057.05 3555.72 2186.56 7799.35 100.00%

Remark: The drainage, heating, and gas network subcomponents will not involve permanent LAR; the installation of pipeline will be along the new road, according to the "first buried tube, after paving the way" principle so there is no additional recovery.

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Component

7.2. Annual Investment Plan 169. All resettlement funds of the subproject are from local counterpart funds. Before or during subproject construction, the civil works and resettlement plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 7-2.

Table 7-2: Resettlement Budget Plan Planne Plann d ed Planned Compl Investm Com start eted ent Proportio No. Subcomponent plete time time (CNY10, n% d (year) for 000) time LAR(ye (year) ar) Changhua Road (including water supply, water 2019. HTB01 2018.4 2017 2057.06 26.37% drainage, heating and gas supply network) 10 Hufang Road (including water supply, water 2019. HTB02 2018.4 2017 3555.73 45.59% drainage, heating and gas supply network) 10 Dongfeng Avenue (including water supply, 2019. HTB03 water drainage, heating and gas supply 2018.4 2017 2186.56 28.04% 10 network) Total 7799.35 100.00%

7.3. Disbursement Flow and Plan of Resettlement Funds

7.3.1. Disbursement flow

170. During the implementation of the subproject, compensation fees will be paid at the standard in RP, Hutubi County fiscal budget will appropriate the compensation funds to Land Resource Bureau and Housing Levy Office, and then pay the funds to the affected units or individuals. Hutubi PMO is responsible for coordinating and overseeing the payments.

171. The disbursement flow is as follows:

Hutubi County Fiscal Budget

Land Resource Bureau Housing Levy Office Hutubi PMO

LA Affected Proprietors of attachment HD Affected Proprietors of attachment

Figure 7-1: Flowchart of Resettlement Fund Disbursement

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

7.3.2. Disbursement plan

172. The land acquisition compensation fee, prior levy management fees will be charged by the Municipal Land and Resources Bureau, land compensation and resettlement fees and compensation for young crops will be directly paid to affected farmers; infrastructure and appurtenances compensation by the implementation of the agency will be paid directly to the relevant units.

173. To ensure that the resettlement funds are available timely and fully, and the APs’ production, livelihoods and income are restored, the following measures will be taken by Hutubi County PMO: ‹ All costs related to LA and compensation will be included in the general budget of the subproject; ‹ Land compensation fees and resettlement subsidies and young corps compensation will be paid up before LA so that all APs can get paid. ‹ In order to ensure the successful implementation of LA and resettlement, financial and supervisory agencies will be established at all levels to ensure that all funds are disbursed timely and fully.

174. The budget is a cost estimate of resettlement. Depending on practical changes within the affected areas, and due to the practical Impacts of detailed measurement survey (DMS), modifications to compensation and inflation, etc., resettlement costs may be increased, but Hutubi County PMO will ensure the payment of compensation fees. The budget incorporates contingencies, and will be applied and revised as necessary.

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8. Organizational Structure and Responsibilities

8.1. Resettlement Action Agencies 175. The agencies responsible for the planning, management, implementation and monitoring of the subproject’s resettlement activities are: ‹ XAUR PMO (EA) ‹ Changji PMO(IA) ‹ Hutubi people’s government (sub IA ) ‹ Hutubi County ADB Loaned Project management Leading Group (Hutubi PMLG) ‹ Hutubi County Project Management Office /Hutubi County Construction Bureau (Hutubi County PMO/PIU, under Hutubi PMLG ) ò Hutubi County Land and Resources Bureau (Hutubi County LRB, land acquisition implementation agency IA) ò Hutubi County house acquisition management office (urban house demolition implementation agency IA ‹ Yuanhucun Township (participation) ‹ Ershilidian Town (participation) ‹ External M&E agency (resettlement external monitoring agency entrusted by XAUR PMO)

8.2. Organizational Chart

Xinjiang Uygur Autonomous Reginal GovernmentExecutive Agency/XJPMO

Changji Hui Autonomous Prefecture Government (Implementation Agency/CHPMO)

Hutubi County Government (IA)

ADB Project Leading Group (PLG)

Hutubi County LRB

Hutubi QURCB CPMO/PIU External Monitoring Hutubi Counnty House Demolition Levy Office

Affected Villages/Communities

Figure 8-1: Resettlement Organizational Chart

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

8.3. Hutubi County ADB Loaned Project management Leading Group 176. The resettlement staffs of Hutubi County are from functional departments of Hutubi Municipal Government. They have rich working experience and have participated in LA and resettlement in a number of local municipal projects, and will play a good organizing and coordinating role in the implementation of the subproject. The Project Leading Group is composed of the following persons: Leaders: Zhao Xiandong County Party committee standing committee and Deputy county magistrate Deputy Head: Gengyi Secretary for Bureau of Housing and Urban-rural Construction Members: Quandong County Finance Bureau Chief Liuyan County Environmental Protection Bureau Xuying Deputy Director of the County Finance Bureau Liuli Deputy Director of the County Audit Bureau Deng Yongli Deputy Director of the County Development and Reform Commission Miao Xinmin Deputy Director of the County Urban and Rural Planning and Management Bureau Zhu Changfeng Deputy Director of the county Housing and Urban-Rural Construction 177. The Leading Group office is located in Hutubi Bureau of Housing and Urban-rural Construction, Director of the Office is Gengyi, and deputy director is Xuying, Liuli, and Deng Yongli.

178. The primary duties of the leading group is responsible for deploying, directing, coordinating the county ADB loaned project related work.

179. Leading Group Office main responsibility is to strengthen cooperation with relevant regional counterparts’ convergence of the various stages of subproject coordination and management, to ensure the smooth implementation of the subproject. Development and Reform Commission is responsible for pre-subproject review of reporting, subproject coordination and guidance work, finance department and auditing bureau responsible for supervision of the use of subproject funds, debt service work, houses construction department is responsible for subproject implementation, technical guidance and quality supervision.

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8.4. Division of Responsibilities among Agencies

8.4.1. XUAR PMO ‹ Responsible for the overall project management and coordinating, entrusting external monitoring agency , and submission of project progress reports to the ADB.

8.4.2. Changji PMO ‹ Responsible for the overall project implementation and management, internal resettlement supervision and progress report preparation.

8.4.3. Hutubi people’s government ‹ Responsible for the coordinating, funds arrangements of LA and HD, and internal resettlement supervision.

8.4.4. Hutubi County PMO ‹ Entrust design institutes to measure the subproject Impact scope; ‹ Organize socioeconomic survey; ‹ Organize and incorporate the preparation of the RP; ‹ Implemented the RP policies; ‹ Confirm and coordinate the RP implementation according to the subproject schedule; ‹ Disburse and monitor the RP fund utilization; ‹ Guide, coordinate and supervise activities and progress of the RP implementation; ‹ Organize and implemented RP internal monitoring, and assist the external monitoring; ‹ Review the external monitoring report; ‹ Coordinate to solve problems related to the resettlement; ‹ Coordinate to solve complains and appeals on the resettlement; and ‹ Report the progress and fund use of the resettlement implementation.

8.4.5. Hutubi County Bureau of Housing and Urban-Rural Construction

‹ Organizing the socioeconomic survey; ‹ Conducting the DMS and baseline survey; ‹ Organizing public participation activities; ‹ Negotiating resettlement programs and organizing the preparation of the RP; ‹ Applying for the license for planning of land use and the license for land used for construction; ‹ Implementing measures for LA; ‹ Implementing the state policies and regulations on construction land management; ‹ Developing resettlement and compensation programs according to the policies, and

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submitting them to competent authorities for approval; ‹ Handling the land use approval formalities; ‹ Implementing the RP; ‹ Entering into compensation and resettlement agreements with the affected economic organizations together with L&R bureau; ‹ Entering into compensation agreements for temporary land occupation; ‹ Entering into compensation and resettlement agreements with the affected households and entities; ‹ Reviewing resettlement implementation; ‹ Managing information on LA, HD and resettlement; ‹ Training staff; ‹ Coordinating and handling conflicts and issues arising from implementation; ‹ Coordinating and handling disputes and appeals; ‹ Reporting LA, HD and resettlement information to the Hutubi PMO.

8.4.6. Yuanhucun Township, Ershilidian Town 180. Led by the leaders in charge, and composed of party office, land management and other units and various community key officials. Its main responsibilities are: ‹ Participating in the survey of the Subproject, and assisting in the preparation of the RP; ‹ Organizing public participation, and propagandizing the resettlement policies; ‹ Implementing, inspecting, monitoring and recording all resettlement activities within its jurisdiction; ‹ Responsible for the disbursement and management of land compensation fees; ‹ Supervising the LA and contract signing ‹ Reporting LA and resettlement information to the county land and resources bureau; ‹ Coordinating and handling conflicts and issues arising from its work.

8.4.7. Liangzhongchang Farm and Village Committees 181. Composed of key officials of committee. Its responsibilities are: ‹ Participating in the socioeconomic survey and DMS; ‹ Organizing public consultation, and propagandizing the policies on LAR ; ‹ Paying and managing relevant funds; ‹ Reporting the APs’ comments and suggestions to the competent authorities; ‹ Reporting the progress of resettlement implementation; ‹ Providing assistance to displaced households with difficulties; ‹ Cooperate with other higher-level units with land acquisition related work

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8.4.8. Design Institute ‹ Reducing the Impacts of the Subproject through design optimization; and ‹ Identifying the range of LA

8.4.9. External Monitoring and Evaluation Agency ‹ During the implementation of the resettlement plan, to track, monitoring and evaluation the implementation activities, and track and monitoring resettlement regularly twice a year. ‹ Monitoring progress, quality, funding for resettlement, and give advice; ‹ Verify the Data and conclusions of the internal monitoring reports, ‹ Submit monitoring and evaluation report every six months to both Hutubi PMO and ADB.

8.5. Measures to Strengthen Institutional Capacity 182. In order to implement resettlement successfully, the resettlement staff must be trained under a program developed by the Hutubi PMO.

8.5.1. Training Program for Resettlement Management Staff 183. A staff training and human resources development system for the county sub-district and community-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: ‹ Principles, policies, and requirements of resettlement for the subproject ‹ Resettlement planning, updating, and implementation ‹ Resettlement monitoring and reporting ‹ Resettlement financial management ‹ Management information system

8.5.2. Measures for Improving Resettlement Agencies

(1) Define the responsibilities and scope of duty all resettlement agencies, and strengthen coordination, supervision and management; (2) Provide adequate financial and technical support, and improve technical equipment, such as PC, monitoring equipment and means of transportation etc.; (3) Select staff strictly, and strengthen operational training for administrative staff and technical staff to improve professional proficiency;

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(4) Select female officials appropriately and give play to women’s role in resettlement implementation; during the implementation of the subproject, the PMO, women's Federation, community committee staffs will establish a cooperation mechanism, through held forum among women and other ways to learn about their demands, hopes at different stage of the RP and subproject. During the whole progress of the subproject, the subproject implementation agency invited the women's Federation staffs to join in. (5) Establish a database and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Project Leading Group; (6) Strengthen the reporting system and internal monitoring, and solve issues timely; and (7) Establish an external M&E mechanism and an early warning system.

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9. Resettlement Implementation Schedule

184. According to the subproject implementation schedule, the subproject will be planned and implemented for 5 years from 2017 to December 2021; the LAR will begin in March 2017 and end in December 2020. The basic principles for resettlement implementation are as follows: ‹ LA and HD shall be completed and compensation should be paid prior to the commencement of civil work construction. ‹ During the LAR, the APs shall have opportunities to participate in the subproject. Before the commencement of civil construction, the scope of LAR will be disclosed, the RIB distributed and public participation activities conducted properly. ‹ All compensation shall be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LAR. No entity or individual should use such compensation funds on their behalf, nor should such compensation be discounted for any reason.

9.1. Work before Resettlement Implementation (RP Updating) (1) Verification of the scope of LAR 185. The scope of the LAR will be defined according to the subproject detailed design and layout. And the resettlement work will be assigned to township and village via meetings, and then inform to the village committee. The Hutubi PMO will survey and register land, houses and attachments, and their ownership within the defined subproject scope.

(2) Field investigation of the range of LAR 186. The Hutubi PMO will organize relevant staff of Hutubi LRB, village to visit the affected areas, investigate and register land, houses, attachments, facilities and equipment, etc., judge the nature and ownership of infrastructure, and keep detailed records.

(3) Updating the RP and preparing the budget 187. Before the beginning of land acquisition and civil works, the RP will be updated based on the detailed design and detailed measurement survey (DMS), and submitted to ADB for review and concurrence. Based on the survey findings, Hutubi County PMO will work out the RP and budget in accordance with applicable policies and regulations, and then submit them to the Hutubi County Construction Bureau (CB) for check.

(4) Contract signing 188. Under the coordination and direction of Hutubi PMO, Hutubi CB will enter into land acquisition agreements with Hutubi LRB, and pay the contract price.

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189. The compensation agreement for land acquisition will be signed based on the compensation rates specified in the RP, and in accordance with the state, provincial and municipal laws and regulations on resettlement. The Hutubi PMO, LRB, and Township government will negotiate with the affected village committees, residents, enterprises and stores about compensation and resettlement respectively. After consensus, Hutubi LRB and PMO will sign the compensation agreement for land acquisition immediately. A copy of such agreement should be submitted. Hutubi PMO will supervise and witness the whole process.

9.2. Work during Resettlement Implementation

(1) Disbursement of compensation payments 190. The APs will receive compensation timely after signing agreements.

(2) Land use license 191. The subproject IA should endeavor to obtain all land use licenses timely. LAR certificates must be obtained before the payment of compensation and the acquisition of land, houses and private properties.

(3) facility relocation and reconstruction 192. CB pays compensation to the property owner, who is responsible for the relocation, restoration, and reconstruction of affected facilities, and EA is in the charge of supervision.

(4) Resettlement 193. Monetary compensation, property exchange and commercial housing are provided for affected persons to choose, and whichever will improve the housing condition a lot.

(5) Internal supervision, and external M&E 194. Internal supervision is the responsibility of the IA, which will submit a progress report to the XAUR EA and ADB quarterly. External M&E is the responsibility of the XAUR PMO (EA), Xinjiang Uygur Autonomous Region PMO will assistant Changji Prefecture PMO and Hutubi PMO to entrust an independent experienced resettlement monitoring agency to conduct external monitoring and evaluation and report to ADB every six months during implementation of the subproject. The purpose of external M&E is to access whether APs’ incomes and living standards have been fully restored or improved after the LAR. If the target is not achieved as the RP, further measures should be suggested and taken.

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9.3. Work after Resettlement Implementation

(1) Internal supervision and external M&E maintain 195. After the completion of resettlement, the external and internal monitor should maintain to complete fulfillment of the subproject.

(2) Filing and documentation 196. When the resettlement work is finished, the responsible party should summit a supplementary report to Hutubi CB to check and archive. 197. According to the implementation plan, before the subproject start, the land acquisition and house demolition need to be completed, and after all the compensation paid to the affect people the subproject can start the construction. 198. Arrange the overall progress of the resettlement plan in accordance with the course of subproject construction and land acquisition compensation. Specific implementation time may appropriate adjustments during practice of the subproject, which has shown in Table 9-1.

Table 9-1: Implementation Schedule Planned Planned Complet Planned Complete ed time No. Subcomponent start time d time for (year) (year) LAR(yea r) Changhua Road (including water supply, water drainage, HTB01 2018.4 2019.10 2017 heating and gas supply network) Hufang Road (including water supply, water drainage, heating HTB02 2018.4 2019.10 2017 and gas supply network) Dongfeng Avenue (including water supply, water drainage, HTB03 2018.4 2019.10 2017 heating and gas supply network)

Table 9-2: Resettlement Implementation Schedule Responsible No. Resettlement Tasks Target Deadline Agency 1. Consultation and Disclosure 1.1 Draft RP circulation and Government of Hutubi PMO and PIUs, Jan. 2017 endorsement consultant 1.2 RIB distribution All affected villages, ROs Feb. 2017 communities and people 1.3 RPs distribution All affected villages and ROs Feb. 2017 communities 2.Resettlement Plan & Budget 2.1. DMS PIUs and ROs, DI, Mar.-May 2017 affected villages, communities and APs 2.2 Updating RP based on DMS PIUs and ROs, May. 2017 consultant 2.3 Approval of final RP & budget Government of Hutubi May. 2017 2.4 Submission of Updated RP to Hutubi County and ADB June 2017

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject

Responsible No. Resettlement Tasks Target Deadline Agency ADB for review and concurrence. Uploading of Updated RP on ADB website 3. Capacity Building 3.1 Establishment of a resettlement PMO and PIUs March. 2017 offices at various levels 3.2 ROs capacity building 10 staff TPMO, PMO and PIUs Apr 2017 3.3 Designate village/community All affected villages/ PMO and ROs Apr. 2017 authorities communities 4. Commencement and Completion of Resettlement 4.1 Agreements with villages and All villages and APs PIUs, ROs and LAB Mar. 2017 APs 4.2 Commencement ROs Mar. 2017 4.3 Disbursement of compensation ROs Mar. – Jun 2017 to APs 4.6 Completion ROs 31 Dec 2020 5. Monitoring & Evaluation 5.1 Internal monitoring reports Semi-annual PMO Mar. and Sept. each reports year since 2017--2021 5.2 Contracting external monitor PMO Mar-Apr. 2017 5.3 Review Baseline survey and 20% of seriously External monitor June. 2017 supplement survey as affected HHs necessary. If RP updating is 50% affected villages delayed for 2 years, another baseline survey will be conducted 5.4 External monitoring report Semi-annual reports External monitor 15 April. and 15 Oct. each year since 2017--2021 5.5 Resettlement completion report Report PMO 31 Dec 2021

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10. Monitoring and Evaluation

199. In order to ensure the successful updating and implementation of the RP and meet the objectives of resettlement properly, land acquisition, property demolition and resettlement activities of the subproject will be subject to periodic M&E according to ADB’s resettlement policy requirements, including internal and external monitoring.

10.1. Internal Monitoring

10.1.1. Purpose 200. The purpose of internal monitoring is to enable all resettlement agencies to function properly during subproject implementation, conduct internal supervision and inspection on the whole process of resettlement preparation and implementation, learn resettlement progress, and ensure that the land acquisition, house demolition and resettlement work can be completed on schedule according to the RP, and promote successful subproject construction.

10.1.2. Organization and staff 201. The internal resettlement monitoring agencies are Hutubi PMO and other relevant authorities (e.g., Hutubi County LRB and CB). These agencies will have a leader who is responsible specifically for the resettlement work. Such leaders should have rich resettlement experience and authority, and be able to coordinate all departments involved in the resettlement work. The members of such agencies should have knowledge on resettlement and social issues so as to perform their duties.

10.1.3. Scope of Internal Monitoring 202. The Hutubi PMO will develop a detailed internal monitoring plan for land acquisition and resettlement, including: (1) Payment, use and availability of compensation fees for land acquisition, house demolition, and implementation progress and quality of production and development options of APs; (2) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during LAR; (3) Restoration of the household income of APs; (4) Restoration of vulnerable groups; (5) Payment, use and availability of compensation funds; (6) Restoration and reconstruction of infrastructure, ground attachments and special facilities; (7) Level of public participation and consultation during LA and resettlement; (8) Resettlement training and its effectiveness; and (9) Working mechanism, training, working hours and efficiency of local resettlement offices.

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10.1.4. Internal monitoring reporting 203. The Hutubi PMO will submit semi-annual progress report to ADB. Such report should indicate the statistics of the past 6months in tables and in narrative, and this should reflect the progress of land acquisition, house demolition, resettlement and use of compensation funds Comparison with the budgeted amount and schedule. The report should also include outstanding or potential issues that cause or may cause delay of resettlement completion, report on grievances Table 10-1 and Table 10-2 provide some formats.

Table 10-1: Progress Report on Resettlement for LA and HD

______community, ______sub-district

Cut-off date: MM/DD/YY

Date of completion: MM/DD/YY

Actually Percentage of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land occupation mu Payment of land compensation fees CNY10,000 Training person Employment person Land adjusted mu Reporter: ______Signature (person responsible): ______Official seal:

Table 10-2: Progress of Fund Utilization ______community, ______sub-district Cut-off date: MM/DD/YY Date of completion: MM/DD/YY

Unit / Investment Compensation Adjust Affected units Introduction Rate Quantity (CNY) (CNY) compensation Village 1 Village 2 The collective Displaced

household Enterprise Reporter: ______Signature (person responsible): ______Official seal:

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10.2. External Monitoring 204. According to ADB’s policies, XUAR PMO will organized the Changji PMO and Hutubi PMO use the Government matching funds to hire a qualified and experienced resettlement agency as the external resettlement M&E agency.

205. The external M&E agency will 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 level and living standard, and submit M&E reports simultaneously to the Hutubi PMO, Changji PMO, XUAR PMO, and ADB.

10.2.1. Scope and Methodology of External Monitoring

(1) Baseline survey 206. The external M&E agency will conduct a baseline survey on the villages affected by LA and HD to obtain baseline data on the sample AHs’ production level and living standard. Subsequent production level and living standard surveys will be conducted annually to track variations of the APs’ production level and living standards of AHs. This survey will be conducted using such methods as random survey and acquired necessary information from random interview and field observation. A statistical analysis and an evaluation will be made on this basis.

(2) Periodic M&E 207. During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually during the subproject implementation, of the following activities by means of field observation, panel survey and random interview:

‹ Timely payment and amount of compensation; ‹ Training; ‹ Support measures for vulnerable groups and ethnic minority people; ‹ Restoration and reconstruction of infrastructure, ground attachments and special facilities; ‹ Restoration for production and resettlement people; ‹ Adequacy of compensation for lost properties; ‹ Compensation for lost working days; ‹ Timetables of the above activities (applicable at any time); ‹ Resettlement network organization; ‹ compensation fee for collective land acquisition and resettlement earnings; and ‹ Job opportunities generated by the subproject.

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(3) Public consultation 208. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(4) Grievance redress 209. The external M&E agency will visit the affected village periodically, and inquire with the Hutubi PMO, township government and village committees that accept grievances to assess how well grievances have been handled. It will also meet complainants. The external M&E agency will propose corrective measures and advice for existing issues so as to make the resettlement process more effectively. 210. In addition, the external monitor will also verify the data and findings of the internal monitoring reports. (5) Information disclosure of external monitoring reports 211. During the monitoring and evaluation, affected people and/or to their representatives’ attitudes and comments will be included in the monitoring and evaluation of resettlement programs. Such as, disclosing monitoring reports (or a short summary of key findings) directly to affected people and/or to their representatives and inviting their comments on, or confirmation of, monitoring findings.

10.2.2. Indicators of External monitoring reporting 212. The external monitoring agency should verify, monitor and compare the following indicators during the implementation of RP. The indicators are presented in the table below:

Table 10-3: Indicators of resettlement external monitoring and evaluation No. Items/elements Contents Key indicators Construction land approval documents; Progress of construction land Land acquisition amount, type and Impact; approvals and delivery Civil works progress and linkage with land Permanent acquisition activities land acquisition Amount and type of temporary land use; 1 and temporary Temporary land use Temporary land use compensation and impacts disbursement Permanent Land Amount and type Permanent land acquisition; compensation standards and Permanent land acquisition compensation implementation standard and disbursement Household demolition number and Progress of housing demolition area(structures); Resident Comparison with resettlement plan; housing 2 Compensation standard(structures) and demolition and Compensation standards and change; resettlement implementation Compensation payment; Transition fees delivered

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No. Items/elements Contents Key indicators Comparison of infrastructure; Per capita housing area; Living conditions of before and Community facilities; after resettlement Distance from the center the county and township; Satisfactory of sampling survey Cash compensation funds Compensation payment to APs or AVs Variation of per capita lands before and after LA; Land adjustment Land for land program, if any; Quality and distance of adjusted land; Impact to the production mode of farmers; Employees number of non-farm payrolls; Production resettlement mode Income Variation of crop species; 3 restoration Impact to the livestock; program Per capita net income of rural residents; Variation of income Disposable income of urban residents; Proportion of three main industries employee; Employment Proportion of women in small business; Number of migrant workers; Times, type and time of training; Training Benefits, number and effective of training; Satisfaction of resettlement Satisfactory of sampling survey; Progress of structure Number and area (structures) demolition Compensation standard (structures) and variation; Compensation Compensation payment method; Demolition of Compensation for the shutdown period enterprises and Enterprise reconstruction way; Household 4 shops and Housing reconstruction and number of resettlement; resettlement demolition Number of enterprise expansion; process Number of close down Number and income of employees; income of enterprises; Restoration Satisfaction of sampling employees and operators Funds Availability of funds Funds sources and payment 5 availability and Allocation Allocation flows application Vulnerable Vulnerable households Type of the vulnerable and Impacts 6 households special assistance measures Measures implementation (timely, subsidy etc.) No. of women participating in meetings, DMS, accepting payments, 7 Gender matters participation Women hired during construction and other employment opportunities No. of EM participating in meetings, DMS, Ethnic minority 8 As the requirements of EMDP Priority hiring, during construction and other matters employment opportunities No. of issues/problems/complaints received, responded to, addressed and resolved in a Resettlement Resettlement complaint and timely manner 9 complaint and grievance cases Available staff and resources to address grievance grievances Timely reporting of grievances Public Times, population, time, site, topic and Public consultation and consultation and efficiency; 10 information disclosure information Way, content and response of information activities disclosure disclosures

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No. Items/elements Contents Key indicators No. of qualified staff Coordination meetings and follow-ups Clear roles and Organizational Training to improve capacity of staff 11 responsibilities, coordination Set-up Monitoring, preparation of reports and and reporting submission

No. of issues/problems/complaints received, responded to, addressed and resolved in a Grievance timely manner 12 GRM being followed Redress Available staff and resources to address grievances Timely reporting of grievances

10.2.3. External monitoring reporting 213. The external M&E agency will submit semi-annual monitoring and evaluation report to Xinjiang Uygur Autonomous Region PMO, Xinjiang Autonomous Region PMO, and ADB as following schedule.

Table 10-4: Reporting Schedule of External Resettlement M&E

Resettlement report Date

1 Baseline survey April 2017

2 M&E Report (No. 1) October 2017

3 M&E Report (No. 2) April 2018

4 M&E Report (No. 3) October 2018

5 M&E Report (No. 4) April 2019

6 M&E Report (No. 5) October 2019

7 M&E Report (No. 6) April 2020

8 M&E Report (No. 7) October 2020

9 M&E Report (No. 9) September 2021

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Appendix 1: Applicable Laws, Regulations and Policies

Applicable provisions of the Land Administration Law of the PRC

Ownership and right of use of land

Article 8. The State shall own land in urban districts.

Peasants shall collectively own land in the rural areas and suburban areas, except otherwise provided for by the State, including land for building houses, land and hills allowed to be retained by peasants.

Article 22. The amount of land used for urban construction shall conform to the standards prescribed by the State so as to make full use of the existing land for construction purposes, not to occupy or occupy as less agricultural land as possible.

Urban general planning and the planning of villages and market towns should be in line with the general plans for land use. The amount of land for construction use in the urban general planning and the planning of villages and market towns shall not exceed the amount of land used for construction purposes in cities, villages and market towns fixed in the general plans for the utilization of land.

The land for construction purposes in cities, villages and market towns within the planned areas of cities, villages and market towns shall conform to the city planning and the planning of villages and market towns.

Article 24. People's governments at all levels shall strengthen the administration of plans for land use and exercise control of the aggregate land for construction purposes.

Article 26. Revision of the general plans for land use shall be approved by the original organ of approval. Without approval, the usages of land defined in the general plans for the utilization of land shall not be changed.

Whereas the purpose of land use defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by the State Council, it shall be changed according to the document of approval issued by the State Council.

If the purpose of land defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by provinces, autonomous regions and municipalities, it shall be changed according to the document of approval issued by the provincial level people's governments if it falls into their terms of reference.

Protection of cultivated land

Article 31. The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land.

The State fosters the system of compensations to cultivated land to be occupied. In the cases of occupying cultivated land for non-agricultural construction, the units occupying the cultivated land should be responsible for reclaiming the same amount of land in the same quality as that occupied according to the principle of "reclaiming the same amount of land occupied. Whereas units which occupy the cultivated land are not available with conditions of reclamation of land or

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Article 32. The local people's governments at and above the county level may demand units which occupy cultivated land to use the topsoil of the land occupied for use in the newly reclaimed land, poor land or other cultivated land for soil amelioration.

Article 33. People's governments of all provinces, autonomous regions and municipalities shall strictly implement the general plans for the utilization of land and annual plan for the use of land, adopt measures to ensure not to reduce the total amount of cultivated land within their jurisdictions. Whereas reductions occur, the State Council shall order it to organize land reclamation within the prescribed time limit to make up for the reduced land in the same quantity and quality and the land administrative department of the State Council shall, together with agricultural administrative department, examine and accept it.

Article 36. Land shall be used sparingly for non-agricultural construction purposes. Whereas wasteland can be used, no cultivated land should be occupied; whereas poor land can be used, no good land should be occupied.

Article 41. The State encourages land consolidation. People's governments of counties and townships (towns) shall organize rural collective economic organizations to carry out comprehensive consolidation of fields, water surface, roads, woods and villages according to the general plans for the utilization of land to raise the quality of cultivated land and increase areas for effective cultivation and improve the agricultural production conditions and ecological environment.

Local people's governments at all levels shall adopt measures to ameliorate medium-and low-yielding land and consolidate idle and scattered and abandoned land.

Article 42. Whereas land is damaged due to digging, cave-in and occupation, the units or individuals occupying the land should be responsible for reclamation according to the applicable provisions of the State; for lack of ability of reclamation or for failure to meet the required reclamation, land reclamation fees shall be paid, for use in land reclamation. Land reclaimed shall be first used for agricultural purposes.

Land for construction purposes

Article 43. Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law, except land owned by peasant collectives used by collective economic organizations for building township enterprises or building houses for villagers or land owned by peasant collectives approved according to law for use in building public facilities or public welfare facilities of townships (towns).

The term "apply for the use of land owned by the State according to law " used in the preceding paragraph refers to land owned by the State and also land originally owned by peasant collectives but having been acquired by the State.

Article 44. Whereas occupation of land for construction purposes involves the conversion of agricultural land into land for construction purposes, the examination and approval procedures in this regard shall be required.

For projects of roads, pipelines and large infrastructure approved by the people's governments of provinces, autonomous regions and municipalities, the State Council has to approve land for construction whereas conversion of agricultural land is involved.

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Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization of land within the amount of land used for construction purposes as defined in the general plans for cities, villages and market towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original general plans for the utilization of land. The specific projects within the scope of land approved for conversion shall be approved by the people's governments of cities or counties.

Land to be occupied for construction purposes other than those provided for in the second and third paragraphs of this article shall be approved by the people's governments of provinces, autonomous region and municipalities whereas conversion of agricultural land into construction land is involved.

Article 45. The acquisition of the following land shall be approved by the State Council: 1. Basic cultivate land; 2. Land exceeding 35 hectares outside the basic cultivate land;

Acquisition of land other than prescribed in the preceding paragraph shall be approved by the people's governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record.

Acquisition of agricultural land should first of all go through the examination and approval procedure for converting agricultural land into land for construction purposes according to the provisions of Article 44 of this law. Whereas conversion of land is approved by the State Council, the land acquisition examination and approval procedures should be completed concurrently with the procedures for converting agricultural land to construction uses and no separate procedures are required. Whereas the conversion of land is approved by people's governments of provinces, autonomous regions and municipalities within their terms of reference, land acquisition examination and approval procedures should be completed at the same time and no separate procedures are required. Whereas the terms of reference have been exceeded, separate land acquisition examination and approval procedures should be completed according to the provisions of the first paragraph of this article.

Article 46. For acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures.

Owners or users of the land acquired should, within the time limit specified in the announcement, go through the compensation registration for acquired land with the land administrative departments of the local people's governments on the strength of the land certificate.

Article 47. In acquiring land, compensation should be made according to the original purposes of the land acquired.

Compensation fees for land acquired include land compensation fees, 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 preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition.

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The standards for land compensation and resettlement fees for land acquired shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation fees and resettlement fees for cultivated land acquired.

The standards for compensating for ground attachments and green crops on the land acquired shall be determined by various provinces, autonomous regions and municipalities.

In acquiring vegetable fields in suburban areas, the units using the land should pay new vegetable field development and construction fund.

Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the acquisition.

In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land acquired according to the social and economic development level.

Article 48. After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired.

Article 49. Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision.

It is forbidden to embezzle or divert the land compensation fees and other related expenses.

Article 50. Local people's governments at all levels shall support rural collective economic organizations and peasants in their efforts toward development and operations or in starting up enterprises.

Article 52. In the process of the feasibility study for construction projects, land administrative departments may examine the related matters concerning the land for construction purposes and put forward their proposals according to the general plans for the utilization of land, the annual plan for the use of land and standards for land used for construction purposes.

Article 53. Whereas a construction project approved needs land owned by the State for construction purposes, the construction unit should file an application with land administrative department of the people's government at and above the county level with the power of approval on the strength of related documents required by law and administrative decrees. The land administrative department shall examine the application and submit it to the people's government at the same level for approval.

Article 54. A paid leasing should be gone through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law:

1. Land for use by government organs and for military use; 2. Land for building urban infrastructure and for public welfare undertakings; 3. Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; 4. Other land as provided for by the law and administrative decrees.

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Article 55. Construction units that have obtained State-owned land by paid leasing can use the land only after paying the land use right leasing fees and other fees and expenses according to the standards and ways prescribed by the State Council.

Starting from the date when this law comes into effect, 30% of the leasing fees for new construction land shall be handed over to the central finance, with the rest 70% to be retained by related local people's governments, for the development of land for cultivation.

Article 56. In using State-owned land, construction units should use the land according to the provisions of the contract for compensated use of leased land use right or according to the provisions of the documents of approval concerning the allocation of land use right. The change of the land to construction purposes should get the consent from the land administrative departments of the related people's governments and be submitted to the people's governments that originally give the approval for the use of land. In changing the purpose of land within the urban planned areas, the consent should be obtained from the related urban planning administrative departments before submission for approval.

Article 57. In the case of temporary using State-owned land or land owned by peasant collectives by construction projects or geological survey teams, approval should be obtained from the land administrative departments of local people's governments at and above the county level. Whereas the land to be temporarily used is within the urban planned areas, the consent of the urban planning departments should be obtained before being submitted for approval. Land users should sign contracts for temporary use of land with related land administrative departments or rural collective organizations or villagers committees depending on the ownership of the land and pay land compensation fees for the temporary use of the land according to the standard specified in the contracts.

Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary use of land shall not usually exceed two years.

Article 58. In one of the following cases, the land administrative departments of related people's governments shall recover the land use right of State-owned land with the approval of the people's governments that originally gives the approval or the people's governments with the power of approval:

1. Use land for the sake of public interests; 2. Use land for adjustment in re-building old city districts in order to implement urban construction plans; 3. When the term for the land use right expires according to what is agreed upon in the contract for compensated use of land, the land user has failed to apply for extension or failed to get approval for extension; 4. The use of land originally allocated has been stopped due to cancellation or removal of units; 5. Roads, railways, airports and mining sites that have been approved to be abandoned. Proper compensation should be given to land use right users whereas the use right of State-owned land is recovered according to the provisions of 1 and 2 of the preceding paragraph.

Article 62. One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities.

Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses.

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The use of land for building houses should be examined by the township (town) people's governments and approved by the county people's governments. Whereas occupation of agricultural land is involved the examination and approval procedure provided for in Article 44 of this law is required.

The application for housing land after selling or leasing houses shall not be approved.

Article 63. The land use right of peasant collectives shall not be leased, transferred or rented for non-agricultural construction, except in the case of legal transfer of the land that conforms to the general plan for the utilization of land and legally obtained by enterprises due to bankruptcy or acquisition.

Article 64. Buildings or structures put up before the general plan for the utilization of land and unconformable to the general plans are not allowed to be rebuilt or expanded.

Article 65. In one of the following cases, the rural collective economic organizations may recover the land use right with the approval of the people's government that gives the approval for the use of land: 1. Land needed for building public facilities and public welfare undertakings of townships (towns) and villages; 2. Land not used according to the purposes approved; 3. Land not used any more due to cancellation or removal of the original units.

Proper compensation shall be given to land users in the case of recovering the land owned by peasant collectives provided for in item 1 of the preceding paragraph.

Regulation on Expropriation and Compensation of Houses on State-owned Land

Article 8. In order to meet the public interests such as safeguarding the state security and promoting national economic and social development, the house expropriation is definitely needed for any of the following conditions. Then the city or county people’s government can make the decision of house expropriation.

(1) The need of national defense and foreign affairs; (2) The need of infrastructure construction for energy, transport, and water conservancy organized and implemented by the government; (3) The need of public affairs for science and technology, education, culture, health, sports, environmental and resources protection, disaster prevention and mitigation, cultural relic protection, social welfare, and municipal utilities organized and implemented by the government; (4) The need for low-income house organized and implemented by the government; (5) The need for reconstruction of the dangerous houses and poor infrastructure district in accordance with the relevant provisions of the urban and rural planning organized and implemented by the government; (6) The need for other public interests needs set by laws, administrative rules and regulations.

Article 10. The house expropriation departments make an initial draft for expropriation and compensation and submit to city or county people's government.

The city or county people's governments shall organize relevant departments to demonstrate and publish the expropriation and compensation draft to ask for public opinion, the period of which should not be less than 30 days.

Article 12. Before the city or county people's government makes the decision of house expropriation, the government should make a social stability risk assessment. If the amount of house expropriation is large, it should be discussed and decided by the executive meeting of the

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Before the decision of house expropriation is made, the fund of expropriation and compensation should be in full amount in place, be deposited in special account and used only for this purpose.

Article 13. After the decision of house expropriation was made, the city or county people’s government should announce it in time. The announcement should include the house expropriation and compensation plan, the rights for the administrative reexamination and administrative proceedings and so on.

The city or county people's governments and the house expropriation department should do well in propagating and explaining the house expropriation and compensation.

The house is expropriated legally, at the same time, the use rights for state-owned land is also taken back.

Article 16. After the range of house expropriation is determined, it is banned to newly build, expand, and rebuild houses and to change the use of houses for more unreasonable compensation; no compensation will be paid to the implementation against the regulations.

The house expropriation department should inform the relevant departments the above-mentioned behavior in written form to suspend relevant procedures. The written form should make the period of suspension clear, which should be no longer than one year.

Article 17. The compensation to be expropriated by the city or county government that makes the decision of house expropriation should include the following: (1) Compensation for the value of expropriated house; (2) The compensation for moving house and temporary shelters caused by house expropriation; (3) The compensation for production shut-down or business shut-down caused by house expropriation.

The city or county people's government should formulate subsidies and incentive measures to subsidize and reward the expropriated household.

Article 19. The compensation of the expropriated house should not be lower than the market price of the similar house on the publish date of the house expropriation decision. The qualified house evaluation organs decide the value of the expropriated house according to the formulations of expropriated house evaluation.

Article 21. The expropriated household/entity can choose monetary compensation or choose house property right exchange.

Article 25. Based on the provisions of this regulation, the house expropriation department and the expropriate sign compensation agreement on compensation method, compensation amount, payment period, the location and area of the house for property right exchange, moving fee, temporary relocation fee or temporary shelter house, production shut-down and business shut-down loss, time limit for removal, the transition way and transition period, and so on.

After the signing of the agreement, if one party does not fulfill the appointed obligation in the agreement, the other party can lodge a lawsuit according to law.

Article 26. If the house expropriation department and the expropriate can-not reach a compensation agreement during the signing period defined by the house expropriation plan, or the owner of the expropriated house is not clear, the house expropriation department reports to the city or county people’s government to make compensation decision and shall make public

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The compensation decision should be fair, including the relevant compensation agreement in Item 1, Article 25 of this regulation.

If the expropriate refuses to accept the compensation decision, he can apply for administrative the administrative reexamination or lodge a lawsuit according to law.

Article 27. The implementation of house expropriation shall compensate first and then move.

After the city or county people's government that makes the house expropriation decision compensates the expropriated household/entity, the expropriated household/entity should finish moving within the deadline defined by the compensation agreement or compensation decision.

No unit or individual can force the expropriate to move by violence, threat or illegal ways such as cutting off water supply, heat supply, gas supply, power supply and traffic, and the construction unit is banned to take part in the removal activity.

Article 29. The house expropriation department shall establish house expropriation and compensation files according to laws, and publish compensation for each household for the expropriation in the house expropriation range.

Regulations of XUAR for the Implementation of the Land Administration Law of the PRC Chapter 1. General Provisions Article 2. These Regulations shall be complied with by all those who engage in land protection, development, and utilization, supervisory and administrative activities within the jurisdiction of Xinjiang Uygur Autonomous Region.

Article 6. State-owned land shall be used on a compensated basis according to law, and shall not be invaded, traded or transferred illegally by any entity or individual in any form.

Governments at all levels shall take stops to plan, strictly manage, conserve and develop land resources, and prohibit illegal land occupation.

Chapter 2. Land ownership and use rights

Article 8. Users of state-owned land and owners or users of collective land must apply for land registration with the administrative authority for land of a county-level or above government, and obtain a permit to use state-owned land or certificate of ownership or permit to use collective land.

Chapter 4. Cultivate land protection and land reclamation

Article 20. A compensation system for cultivate land occupation is practiced in Xinjiang Uygur Autonomous Region. Anyone who occupies cultivate land for nonagricultural construction with approval must be reclaim cultivate land of the same amount and quality as the occupied cultivate land or obtain it by land consolidation; where conditions do not permit cultivate land reclamation, cultivate land reclamation fees shall be paid at a rate of CNY15,000-45,000 per hectare based on the rating of the occupied cultivate land to be used specifically for cultivate land reclamation.

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Article 21. Anyone who occupies basic cultivate land with legal approval and has to pay cultivate land reclamation fees shall pay such fees at 1.5 times the rate for ordinary cultivate land reclamation.

Article 25. The following types of land shall not be reclaimed: (1) Prohibited areas identified in overall land utilization plans; (2) Natural hay fields, artificial pastures, fenced pastures and high-grade pastures; (3) Woodland and river or lake flat; (4) Sloping land with a gradient of over 25 degrees and desert land exposed directly to sandstorm; and (5) Areas whose ownership is disputed.

Chapter 5. Land for Construction

Article 31. The examination and approval procedures for converting agricultural land to construction uses shall be gone through in accordance with the following provisions in case land is occupied by state construction. (1) In the range of the land for village and town construction defined in the master plan of township land utilization, the use of the land collectively owned by farmers and herdsmen for construction of township and village enterprises, rural common facilities, public utilities, rural roads, water conservancy projects and other facilities is subject to the approval of autonomous prefecture or municipal people’s government or administrative office according to the control quotas defined by the yearly plan for land use. (2) In the range of the land for village and town construction defined in the master plan of land utilization, the use of the land for implementation of the planning is subject to the approval of the People’s Government of the autonomous region or shall comply with the provisions of the laws and regulations approved by the State Council.

Article 35. Land expropriated for state construction shall be compensated according to the following standards: (1) 8 to 10 times the annual output value of local cultivated land shall be compensated for expropriated basic cultivate land; (2) 7 to 9 times the annual output value of local cultivated land shall be compensated for expropriated irrigable land and fish pond other than basic cultivate land; (3) 7 to 8 times the annual output value of local cultivated land shall be compensated for expropriated dry cultivated land other than basic cultivate land; (4) 6 to 7 times the annual output value of local cultivated land shall be compensated for expropriated forest land, artificial grassland, house site, rural road, threshing floor and other lands; (5) 6 times the annual output value of local grassland shall be compensated for expropriated natural grassland;

The land as sated in Point (1), (2), (3) and (4) expropriated for construction of major transport, water conservancy and other projects approved by the state or the autonomous region shall be compensated 6 times the annual output value of local cultivated land. The output values of all types of cultivated lands and grasslands shall be determined to the average annual production value of the three years before requisition.

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Article 36. The young crops and their attachments on expropriated land shall be compensated to the following standards: (1) Common young crops shall be compensated to their average output value of in the last three years. Young root crops shall be compensated to 2 to 3 times their average output value of in the last three years. (2) The buildings, structures, other facilities and forest trees on expropriated land shall be compensated according to the actual losses under the relevant stipulations. (3) For the relocation of the tombs on expropriated land, the local people’s government makes an announcement on and time limit of and reimbursement for rebury in pursuance of the relevant prescriptions. Unclaimed tombs and those having not been relocated within the time limit will be removed by the associated department as organized by the local people’s government.

Article 37. The relocation subsidy for expropriated arable land shall be paid under the Land Administration Law of the PRC, Article 47, Clause 2. The relocation subsidy may be appropriately increased provided that the per capita arable land is less than 0.1 hectare before land requisition. However, the total sum of the land compensation and relocation subsidy for expropriated land shall not exceed 30 times its average annual output value before land requisition.

The relocation subsidy for expropriated fish pond shall be paid with reference to that for adjacent cultivated land.

The relocation subsidy for expropriated forest and grass lands shall be determined with reference to that for cultivated land requisitioned. No relocation subsidy shall be paid for the requisition of house sites, rural roads and threshing floor.

Article 39. The rural collective economic organization owns the compensation for expropriated rural land of collective economic organization. The compensation for the attachments and young crops on the land is owned by their respective owners.

The collective economic organization expropriated of land shall make the incomings and outgoings of the compensation for land requisition to its members and subject itself to supervision. Misappropriation and peculation of the compensation for the land requisition and other related funds are prohibited.

Article 40. When a rural economic organization is to resettle the people expropriated of land, the resettlement subsidy shall be paid to the organization, which manages and uses the money according to laws. If they are to be resettled by other organization, the resettlement subsidy shall be paid to the corresponding resettling organization. In case no unified resettlement is required, the resettlement subsidy shall be paid to the individuals to be resettled or used for pay their insurance expense with their approval. The resettlement subsidy shall be earmarked its specified purposes only without peculation. Municipal, county and township governments shall enhance the supervision of the use of resettlement subsidy.

Article 46. The areas of the house sites of rural villagers shall follow the following standards (by county for per capita cultivated land). (1) The area of the house site of each household shall not be greater than 200 m2 if the per capita cultivated land is less than 0.04 hectare.

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(2) The area of the house site of each household shall not be greater than 300 m2 if the per capita cultivated land is 0.04 to 0.07 hectare. (3) The area of the house site of each household shall not be greater than 400 m2 if the per capita cultivated land is 0.07 to 0.1 hectare. (4) The area of the house site of each household shall not be greater than 500 m2 if the per capita cultivated land is 0.1 to 0.14 hectare. (5) The area of the house site of each household shall not be greater than 600 m2 if the per capita cultivated land is 0.14 to 0.34 hectare. (6) The area of the house site of each household shall not be greater than 800 m2 if the per capita cultivated land is over 0.34 hectare.

The above standards for the areas of house sites may be appropriately raised up to twice if unused lands are used for building houses.

"Autonomous notice on the promulgation and implementation of a unified annual output value standard" (Xinjiang MLR [2011] No.19) Yili Kazak Autonomous Prefecture Land and Resources Bureau, Development and Reform Commission, the Financial Bureau, around the City Land Resources Bureau, Development and Reform Commission, the Financial Bureau:

Autonomous land unified annual output value standard has been approved by the regional government and is hereby promulgated. After January 1, 2011, land for construction of new reporting, involving imposition of collective cultivate land, garden compensation standards here. Former Autonomous Region Development Planning Commission, Ministry of Finance "On Land and Resources issued the autonomous system of land management administrative fees notice" (New Price house 500 [2001]) Note A, and table Note C adjusted accordingly.

Please do a good job around the convergence of old and new compensation standards work, increase efforts to explain the policy advocacy, and effectively safeguard the interests of land-loss farmers and herdsmen. Accessories: autonomous land unified annual output value standard. Table 1.1: Collective land compensation standard First grade collective Second grade collective Third grade collective Degree land land land Compensation standard 1,500 800 600 (CNY/mu) 1 This table standard applies to arable cultivation of food crops. 2. The annual output value of cultivate land planted specialty crops, vegetable, orchard cultivate land should be higher than the first-class standard table; cotton Note fields should be paid at maximum of 1.5 times; orchard may not exceed two times; vegetable may not exceed three times; grapes ground shall not exceed 4 times. Other crops actual annual output estimates. Table 1.2: Standard of resettlement subsidy Per capita arable area (mu) Times of resettlement subsidy standard >3.0 mu 12—13 2.0—3.0 14—16 1.0—2.0 17—20 <1.0 mu 30 times of the sum of land compensation fees and resettlement subsidy Note: The land compensation and resettlement subsidies multiples of two and 20 times the compensation shall not be less than the base. Land compensation fee is generally 8 times.

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Table Notes to Document [XJJF (2001) No.500]

Appendix 1: Table 1.1 Calculation bases of cultivate land compensation Unit: CNY/mu I II III Class (High-yield) (High-yield) (High-yield) Level 1,500 800 600 1. These rates apply to cultivate land on which cereal crops are grown; 2. For cultivate land on which special crops are grown, vegetable plots and orchards, annual Notes output values shall be higher than that of Grade I cultivate land; that of cotton land may be up to 1.5 times, that of orchards up to 3 times, that of grape land up to 2 times, and that of other cash crops measured at actual annual output value. Note: The amount of land compensation and resettlement subsidy cannot lower 20 times than compensation standard; land compensation is 8 times.

Table 1.2 Calculation bases of pasture land compensation Unit: CNY/mu Class I II III Base amount Excellent/good Medium Inferior Level 1 328 262 120 2 262 148 88 3 136 96 63 4 80 69 50

Table 1.3 Standard of resettlement subsidy Per capita arable area (mu) Multiple of average annual output value of the past 3 years >3.5 mu 4—5 3.0—3.5 6—7 2.5—3.0 8—9 2.0—2.5 10—12 1.5—2.0 13—15 1.0—1.5 16—18 0.5—1.0 19—20 <0.5 mu 30 times of the sum of land compensation fees and resettlement subsidy

Table 1.4 Standard of compensation fees for urban state-owned land

Unit: CNY/m2 Entity Within built-up area Out of built-up area Urumqi Municipality 30 20 Karamay, Shihezi, Kuitun, Changji, Bole, Yining, Tacheng, Korla, Altay, Turpan, Hami, Akesu, Artux 20 10 and Hetian Municipalities Other counties (cities) 15 8 Other townships 6 2

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Table 1.5 Compensation rates for timber and commercial forests Item / species Unit Tree specification (breast diameter, cm) Compensation rate (CNY) / <5 cm 10-15 Broad-leaf / 5-15 cm 15-25 forest / 13-30 cm 25-35 / >30 cm 45 / <5 cm 20-30 Coniferous / 5-15 cm 30-50 forest / 13-30 cm 50-70 / >30 cm 90 / <5 cm 20-40 / 5-15 cm 40-60 Fruit tree / 13-30 cm 60-100 / >30 cm 120 / Not bearing fruit below 3 years 30-70 Grape / Bearing fruit above 3 years 70-110 Note: The forest compensation fees of Reserve are higher by 50%.

Table 1.6 Compensation rates for scrub forests Close canopy (%) Rate (CNY/mu) 20—40 300 40—60 500 >60 600

Table 1.7 Rates of management fees for temporary land uses Nature of land Land type and area Rate Remarks Land for infrastructure Any period less than one construction projects, year shall be counted as such as energy, traffic, one year, and any period CNY20/year*mu water resources, more than one year but communication and less than two years as investigation two years. Operating temporary Within built-up area CNY1-2/month*m2 land uses Out of built-up area CNY0.1-0.5/month*m2 Other temporary land Within built-up area CNY0.3-0.5/month*m2 uses Out of built-up area CNY0.1-0.3/month*m2

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Appendix 2: Resettlement Information Booklet (RIB) (Name of affected person)

In order to relieve living condition, improve the road construction, improve the traffic congestion, road net, water supply and drainage, heating capacity of the city, and improve road safety and the county town’s overall image, Hutubi County Government (executing agency) plans to use part of an ADB loan to implement a municipal infrastructure in Hutubi County, which is one of Subproject of the ADB-financed Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project.

The Subproject will affect your family (entity) to some extent. This booklet is provided to you so that you understand the basic information of the Subproject, state policies on land acquisition, house demolition and resettlement, and possible Impacts on you.

I. Composition of the Subproject

Hutubi County urban and rural infrastructures construction of demonstration subproject (Subproject) is one of Subproject in Xinjiang Changji urban and rural infrastructure construction demonstration Project, which is financed by Asian Development Bank (ADB). The subproject includes five parts: (i) Road Construction: construction of 3 roads with length of 7.96 km, including 1 new cover culvert, round 15 pipe culverts, and 7 inverted siphons; (ii) Urban utility pipes: (a) Water Supply: all of these pipelines will be newly built and the total length is 1,043 m, among which are 8,028 m of water supply pipes and 2,048 m of crossing reservation pipes, with diameter of dn200 and PE100; (b) Water Drainage: installation of 10,432 m of drainage pipelines, with diameter of dn400 and material of HDPE; (c) District Heating: installation of 2 x 9,220 m of hot water pipelines, with diameter of dn250-500 and material of Q235-B; and (d) Gas engineering works: installation of 9,900 m of gas pipelines, with diameter of dn160, pressure of 0.4 MPa and material of PE. (iii) Capacity building in (a) strengthen technical and vocational education and training at Hutubi County Senior Secondary Technical School; and (b) subproject management of implementing agency and subproject implementation units.

II. Impacts of the Subproject

The subproject will affect 2 towns (Ershilidian Town and Yuanhucun Town), 2 villages (Hezhuang and Xiatougong) and 1 state-owned farm (Liangzhongchang in Yuanhucun Town). A total of 149 households with 548 people will be affected, including 57 households with 215 ethnic minority people, accounting for 39.23% of the total population. 46 families with 184 members are affected by HD only, and 96 families with 336 members by LA only, and 7 families with 28 members by both.

A total land area of 360.61 mu will be acquired, permanently affecting 103 households with 364 people (including 7 households with 28 people by both LA and HD), including 13.18 mu of state-owned land. The state-owned land consists of (i) 6.35 mu of cultivated land (nursery land), affecting 3 households with 12 people, including 2 households with 8 ethnic minorities; (ii) 2.75 mu of state-owned residential land, where the affected population is included in the population to be demolished without further calculation; (iii) 4.08 mu of state-owned construction land, all of which is open space, without any supplementary items and buildings, so without any effect on the population. In addition, 347.43 mu of collective land will be acquired, which consists of (i) 197.35 mu of collective farm land, affecting 100 households with 352 people (including 7 households with 28 people by both LA and HD), including 32 households with 112 ethnic minorities; (ii) 110.42 mu of collective reserved land, which used to be arable land, with no current farm road. In order to

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Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject make it convenient for farmers’ ploughing, they built the farm road by themselves; according to verification from L&R Bureau and village committee, the ownership of the reserved land belongs to village. The compensation standard will be in accordance with arable land, that is, the land compensation fee and resettlement subsidy will be paid to the village, without young crops fee, because the farm road belongs to collective reserved land. No individuals are involved, so there is no affected population; (iii) 39.66 mu of collective homestead land, where the affected population is included in the population to be demolished without further calculation.

About 18445.35 m2 of house area will be demolished, affecting 53 households with 212 people (including 7 households with 28 people by both LA and HD) including 27 ethnic minority families with 112 members.

III. Compensation Standards

A. Compensations for collective and state-owned cultivated lands:

According to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323) and the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No. 19, the compensation is paid for the LA and HD. The compensation standards for collective cultivated land and state-owned cultivated land are shown in Table 1 and 2, respectively.

Table 1: Unified Annual Output Values of Collective Land Degree Grade I collective land Grade II collective land Grade III collective land Annual Output 1,500 800 600 Value (CNY/mu) 1. This table standard applies to arable cultivation of food crops. 2. The annual output value of cultivate land planted specialty crops, vegetable, orchard cultivate land should be higher than the first-class standard table; cotton Note fields should be paid at maximum of 1.5 times; orchard may not exceed two times; vegetable may not exceed three times; grapes ground shall not exceed 4 times. Other crops actual annual output estimates

Source: Hutubi County Land and Resource Bureau

Table 2: Times of Basic Compensation Rates Per capita cultivated land (mu) Times of unified annual output values Above 3.0 mu 12-13 2.0-3.0 14-16 1.0-2.0 17-20 Less than 1.0 mu 30 times the sum of land compensation and resettlement subsidy Source: Hutubi County Land and Resource Bureau Note: The compensation after times of the sum of land compensation and resettlement subsidies must beyond 20 times of the compensation standard. It is generally 8 times for land compensation.

For the state-owned agricultural land of Yuanhucun Town Liangzhongchang, in accordance with the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19), the land compensation base based on the type of the crops and grade of the land, and the resettlement subsidy based on the area of per capita arable land (Table

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4-3); the per capita arable land of Yuanhucun Town Liangzhongchang is 3 mu, according to the document the compensation base should be 12-13 times, in consideration of farmers interests, the relevant departments decided that the land compensation is eight (8) times and the resettlement subsidy is 17 times and the other different lands compensation standards are presented in Table 3.

Table 3: Compensation Standards of State-owned Cultivated Land Compensation standard (CNY/mu) Land type Land compensation Resettlement subsidy Young corps Total Compensation will be paid according to Cultivated 1,500Õ8=CNY12,000/mu 1,500Õ17=CNY25,500/mu species and 37,500 land diameters of the crops Source: Hutubi County Land and Resource Bureau

Compensations for young crops: (i) cultivate land young crops compensation will be paid according to the crops on ground, if no crops on ground, it will not be compensated. All the land involved in the subproject are cultivate land, the compensation will be paid according to species and diameters of crops; and (ii) ground attachments will be compensated in accordance with the actual input costs.

All the land compensation for Liangzhongchang Farm will be paid to the farm management committee, while the compensation for young crops and resettlement subsidy will be paid to the affected households directly according to the actual Impact scope. The land compensation and resettlement subsidy will be used for the farm development and welfare of all staffs of the farm.

In addition to these costs, for the occupied state-owned arable land, land reclamation and land resettlement management fee will be paid to the local land administration department, cultivated land reclamation fee is CNY3,000/mu, and arable land occupation tax is CNY20/m2.

B. Compensation Standard for Collective Cultivated Land

Compensation for collective cultivated land is paid according to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No. 323) and Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No. 19.

For the collective cultivated land, the compensation is calculated and paid according to the land grade, varieties of crops and times of basis of different types of land and in accordance with the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No. 19), the land compensation base based on the type of the crops and grade of the land (nursery land CNY1,500/mu), and the resettlement subsidy based on the area of per capita arable land (Table 4-3); the per capita arable land of Hezhuang Village and Xiatougong Village is over 3 mu, according to the document the compensation base should be 12-13 times, in consideration of farmers interests, the relevant departments decided that the land compensation is eight (8) times and the resettlement subsidy is 17 times and the other different lands compensation standards are presented in Table 4 in details.

Table 4: Compensation Standards of Collective Cultivated Land Compensation standard (CNY/mu) Village Type Resettlement Land compensation Young corps Total subsidy

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Compensation standard (CNY/mu) Village Type Resettlement Land compensation Young corps Total subsidy Compensation will be paid Hezhuang Nursery CNY1,500Õ8 = CNY1,500Õ17 = according to 37,500 Village land CNY12,000/mu CNY25,500/mu species and diameters of fruit trees. Compensation will be paid Xiatougong Nursery CNY1,500Õ8 = CNY1,500Õ17 = according to 37,500 Village land CNY12,000/mu CNY25,500/mu species and diameters of fruit trees. Source: Hutubi County Land and Resource Bureau

Compensations for young crops: (i) cultivated land young crops compensation will be paid according to the crops on the ground; if there are no crops on the ground, it will not be compensated. All the land involved in the subproject is cultivated land, the compensation will be paid according to species and diameters of crops; and (ii) ground attachments will be compensated in accordance with the actual input costs.

All resettlement subsidy, the compensation for young crops and ground attachments will be paid to the affected households directly, while the land compensation will be paid to the village committee first, in accordance with Article 26 of the "Regulations for the Implementation of Land Administration Law" – The land compensation paid to the rural collective economic organizations", and later all the villagers will have meetings to discuss how to use the compensation. All the compensation for occupied various collective land and uncontracted land of collective villages will be paid to the village collectives directly. Xiatougong Village will use the compensation fees to construct roads, dig wells and provide tap water, and the villagers can use the water free. Hezhuang Village will not only use the money on infrastructure construction but also on skill training; the villagers can also get the training free.

C. Collective Reserved Land Compensation

This subproject will acquire collective reserved land of 110.42 mu, which is village collective reserved land. According to Notice on Implementation of Unified Annual Output Value Standard of XUAR (issued by XLRB [2011] No. 19), the village collective reserved land will be compensated as cultivated land (basis CNY1,500/mu) and eight times of the basis. So the land compensation fee is CNY12,000/mu in total. The resettlement compensation is 17 times of the basis (the basis is CNY1,500/mu), and is CNY25,500/mu. The land compensation will be paid to the village committee first, and later all the villagers will have meetings to discuss how to use the compensation.

D. Compensation Standard for Collective Homestead

For permanent acquisition of collective homestead, the compensation standard is referring to Hutubi County District Benchmark Premium in 2014, and the specific compensation standards are shown in Table 5.

Table 5 Compensation Standard for Collective Homestead Unit: CNY/m2 Rank Commercial Residential Industry

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Class 1 780 540 240 Class 2 590 440 190 Class 3 420 330 160 Class 4 310 260 125

E. Compensation Standard for Residential House Demolition

HD compensation will be in accordance with the Acquisition and Compensation Ordinance for Houses on State-owned Land promulgated by Xinjiang Uygur Autonomous Region People's Government on January 1, 2014. Full consultation with APs will be conducted and the real estate market price fluctuation of the houses will be considered. The final compensation price will be determinate according to results of a housing real estate appraisal and survey company after the on-site assessment. The HD compensation includes not only compensation for housing structure but also the state-owned residential land and homestead compensation.

According to the compensation standards of stated-owned residential land and collective homestead, the standards of Class1 land is CNY540/m2, Class 2 is CNY440/m2, Class 3 is CNY330/m2, Class 4 is CNY260/m2, the compensation standards of the subproject affected by the market rise index, planning index and volume ratio, regional location are higher than the established compensation standard. Besides, because the location of Changhua Road and Hufang Road is near the center of the town and the Dongfeng Avenue is in the rural area, the property assessment value in Changhua Road and Hufang Road is higher than that in Dongfeng Avenue. See in Table 6.

Table 6: Compensation Standard of Residential House Demolition Standard (CNY) Type Structure Unit Changhua Hufang Dongfeng Remark Road Road Avenue Masonry concrete CNY/m2 2,400 2,400 1,800 Main House Masonry timber CNY/m2 2,400 2,400 1,800 Earth timber CNY/m2 2,400 2,400 1,800 Masonry concrete CNY/m2 1,475 1,475 —

Deputy Room Masonry timber CNY/m2 1,475 1,475 — Earth timber CNY/m2 — — — Color steel CNY/m2 928 835 — Masonry timber CNY/m2 888 888 888 Affiliated Earth timber CNY/m2 511 — 511 House Basement CNY/m2 1,200 — — Masonry concrete CNY/m2 — 1,622 — Color steel CNY/m2 — 928 — Sheds Masonry timber CNY/m2 — 630 — Earth timber CNY/m2 330 — — Benchmark Land Price for This Subproject 2 The subproject does not involve Only State-owned Class I CNY/m Class I. compensate residential land 2 Class II CNY/m 557 for the and collective Class III CNY/m2 405 vacant land homestead Class IV CNY/m2 286 in yard. Other Subsidies Moving Subsidy HH 1,000 Calculated in 18 months temporarily, the subsidies Temporary transitional HH/month 1,000 will be paid one time, according to the actual. subsidy

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Source: Hutubi County House Demolition Management Office, July 2016

F. Compensation Rates for Attachments Compensation standards of attachments and special facilities affected by the subproject are shown in Table 7.

Table 7: Compensation Rates for Attachment and Facilities Item Total Compensation standard (CNY) Nature 3 900 Individual Percolation well 37 1,000 Individual 3 500 Individual 1 750 Individual Vegetable cellars (m³) 1 1,000 Individual 1 1,200 Individual 3 1,200 Individual Nang Pit 1 750 Individual 96 45 Individual 25-50 cm 17 55 Individual Polar 2 150 Individual >50 cm 2 200 Individual 4 20 Individual 5 cm 291 15 Individual 108 30 Individual 80 40 Individual 5-15 cm 11 45 Individual Elm 44 50 Individual 48 55 Individual 27 55 Individual 15-30 cm 59 60 Individual 45 120 Individual 30 cm 35 200 Individual 5 cm 116 20 Individual 27 300 Individual Fruit tree 5-15 cm 1 90 Individual 67 150 Individual Jujube tree 5-15 cm 21 90 Individual Peach tree 5-15 cm 4 90 Individual Fraxinus chinensis 5-15 cm 1 40 Individual 31 100 Individual Grape Fruit 33 120 Individual 27 150 Individual 5-15 cm 1 25 Individual Broadleaf tree 15-30 cm 1 150 Individual Plum trees 1 90 Individual Wooden wire rod 89 200 State-owned High voltage wire rod 1 400 State-owned Source: From Hutubi County House Demolition Office in July 2016

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G. Entitlement Matrix Type of Impact Scope APs Entitlements Compensation Impact The subproject will acquire 347.43 mu collective land, (i) Land compensation will be paid to village affect 100 collective 100%, and the use of the money will households 352 be determined by the villagers of the village. people, (ii) while both resettlement subsidy and crop including 32 compensation will be paid to the APs 100%; households 112 (iii) land-loss farmers can participate in social ethnic insurance; (iv) during subproject construction, minorities; the PMO will provide unskilled job priority to including (i) APs, so that the APs will generate cash 197.35 mu income; and (v) the PMO will provide technical general farm training for APs, inviting the technical staff land (ii) 110.42 from agricultural sector and the labor and mu collective social security bureau to carry out trainings on reserved land, 61 HHs with 215 farming and non-agricultural production, and the reserved people in make sure all APs received the training at (i) For the cultivate land Permanent land used to be Xiatougong least 2 times. CNY12,000/mu; resettlement Acquisition of arable land, no Village; 39 HHs young crop compensation is acc Collective current farm with 137 people Measures to restore the livelihood of APs crops. Land road, in order to in Hezhuang include: (i) with the help of cash (ii) make it Village; compensation, APs can engage in convenient for non-agricultural activities, such as farmers’ transportation, private business or dining; (ii) ploughing, they participate in social insurance; (iii) Adjusting built the farm the agricultural structure, via the guidance and road by technical training from government, to expand themselves, the acreage of cash crops, and to improve the according to economic income; and from the technical verification from training to improve the economic income. L&R bureau and (iv) Use the compensation engage in the village trading business on nursery; (v) given the committee, the priorities to the affected people on ownership of employment to increase the income of the reserved land affected people during the construction period. belongs to village; (iii) 39.66 mu

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Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact collective homestead land, affected populations are included in the population to be demolished without further calculation. Occupy 13.18 (i) Land compensation in 100% will be paid to mu state-owned the state-owned cultivate land management land, The committee; (ii) Resettlement subsidy and state-owned young crops compensation in 100% will be land consists of paid to the APs; (iii) APs can get the same (i) 6.35 mu of area of arable land with equal quality by cultivated land reallocation of the farm; (iv) there are in total (nursery land), of 960 mu cultivate land around the farm, and affect 3 5000 mu in Aweitan, these land will be households 12 contracted to the workers of the farm, and the people, workers has the rights to contracted again; (v) including 2 the PMO will organize technical training for households 8 APs, inviting the technical staffs from ethnic agricultural sector and the labor and social (iii) For the cultivate land, land compensation rate is 3 HHs with 12 Permanent minorities; (ii) security bureau to carry out trainings on CNY12,000/mu; resettlement subsidy is CNY25,500/mu; and people in Acquisition of 2.75 mu farming, husbandry, non-agricultural young crop compensation is according to species and diameters of Yuanhucun Town State-owned state-owned production, and others related, to make sure crops. Liangzhongchang Land residential land, all APs received at least 2 times training. (iv) Exploitation of farm land for 5,000 mu in Aweitan, the farmers Farm affected Measures to restore the livelihood of APs can contract the land priority. populations are include: (i) with the help of cash included in the compensation, APs can engage in population to be non-agricultural activities, such as demolished transportation, private business or dining; (ii) without further participate in social insurance; calculation; (iii) (iii) Adjusting the agricultural structure, via the 4.08 mu guidance and technical training from state-owned government, to expand the acreage of cash construction crops, and to improve the economic income; land, all these and from the technical training to improve the land are open economic income. (iv) Use the compensation space, without engage in the trading business on nursery; (v) any given the priorities to the affected people on

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Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact supplementary employment to increase the income of the items and affected people during the construction period. buildings, so no effect on the population. House demolition (iii) Cash compensation. involves Main house (Changhua Road and Hufang Road): 18445.35 m2 of masonry-concrete/masonry-timber/earth-timber for CNY2,400/m2, rural house deputy house (Changhua Road and Hufang Road): demolition, Masonry-concrete/masonry-timber for CNY1,475/m2; Affiliated affects 53 House (Changhua Road): masonry-timber for CNY888/m2, earth households 212 timber for CNY511/m2, basement for CNY1,200/m2; Sheds: (i) to assess the price to obtain housing at 2 people (Changhua Road): earth timber for 330 CNY/m . Main house replacement value compensation; including (including 7 (Dongfeng Avenue): masonry-concrete/ masonry-timber/ the compensation to the house structure, 2 households 28 earth-timber for 1800CNY/m , Affiliated House (Dongfeng Avenue): state-owned residential land, and homestead 2 2 people both LA masonry-timber for CNY888/m , earth timber for CNY511/m . (ii) voluntarily choose resettlement methods, and HD) 40 HHs with 165 including monetary compensation, property including 27 Moving subsidy is CNY1,000/HH and temporary transitional subsidy people in right exchange, allocation of land on their own ethnic minority is CNY1,000/HH, and compensation standards of stated-owned House Hezhuang construction, buying cottage; (iii) the Aps and families with 112 residential land and collective homestead, the standards of Class1 demolition of Villages, and 13 PMO choose an independent third company 2 2 2 members. The land is CNY540/m , Class 2 is CNY440/m , Class 3 is CNY330/m , residential HHs with 47 agreed by both of them; (iv) to get moving 2 house Class 4 is CNY260/m , the compensation standards of the houses people in subsidies, temporary transition costs, demolition area subproject affected by the market rise index, planning index and Xiatougong relocation incentives. including 8,291 volume ratio, regional location are higher than the established 2 Village. The moving reward of the subproject: 1) m compensation standard. signed the contracts within 15 days and brick-concrete; (iv) Property right exchanges: the compensation price for 2 moving out during the acquired time, given 520.18 m demolished houses will be determined based on house appraisal CNY10,000 one time; 2) sign the contract mixtures; by a real estate appraisal and survey company on-site, and plus 2 within 16 to 30 days and moving out during the 136.01 m color moving subsidy, temporary transition allowance, and land acquired time, given CNY5,000 one time. steel; 2,850.16 compensation fees, etc. The compensation prices for demolished m2 brick-wood; houses will be compared with the resettlement house prices. If the 4,823.38 m2 compensation prices are higher than the resettlement house prices, earth-wood; the IA will pay the difference to APs in cash. Otherwise, APs will pay 1,809.62 m2 the difference to IA for the resettlement houses. APs can select color steel brick, different floors of resettlement houses (apartment) and different and 15 m2 of types of houses. basement. Besides the rights above, vulnerable people (i) Vulnerable 1 HHs with 4 1 HHs affected by will be provided unskilled job priority during Same as above Groups people LA subproject construction; (ii) will be in priority to

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Type of Impact Scope APs Entitlements Compensation Policy and Rates Impact get the training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau

Besides the rights above, ethnic minority 23 HHs with 95 people (i) will have priority in choose of floor, people affected apartment pattern and location of resettlement by HD only; 30 houses; (ii) the minority will have priority to Ethnic HHs with 103 contract the newly cultivated land in Aweitan; 57 HHs, with Minority people affected (iii) will be provided unskilled job priority during Same as above 215 people Group by LA only; 4 HH subproject construction; (iv) will be in priority and 17 people to get the training on farming and affected both by non-agricultural production provided by HD and LA. agricultural sector and the labor and social security bureau. Besides the rights in first column, the affected female people (i) will have priority access to subproject non-technical jobs employment; (ii) will enjoy the labor and training priorities; (iii) Women 267 people 267 people Same as above ensure that the resettlement process access to relevant information and be able to participate in consultation related to LAR issues. (i) Ground attachment (power poles and fruit Ground trees) compensation will be paid to the owner; Attachments Public Facilities and (ii) the compensation will be determined Property owners See table 7 above. and Public and trees according to the replacement cost and Facilities restoration shall be in accordance with the original scale and standards.

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IV. Appeal Procedure

If you as an AP have any complains and problems during the LAR implementation, please follow procedures below and contact relevant persons listed below: Stage 1: If any AP is dissatisfied with any land acquisition and resettlement of any other safeguards related problems, he/she may file an oral or written appeal with the community committee/sub-district office orally or in writing. In case of an oral appeal, the community committee/sub-district office shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Hutubi County Land and Resources Bureau or the LA and HD management office (depending upon the issue) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Hutubi County PMO receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Hutubi County Government after receiving such disposition within 3 months. Alternatively, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC at any time irrespective of the use and progress of the GRM process. At each stage, when the responsible agencies receive the appeal, it will be also copied to the PMO for discussion, so that the grievance can be redressed at lower levels. All grievances (and their resolution) at each stage will be recorded and kept. The PMO will report the grievances and their resolution) to ADB in semiannual monitoring reports. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may submit their complaint to ADB's Accountability Mechanism (2012).7 The first step requires good faith efforts to resolve the problem with the ADB Project Team. Besides, reporting behaviors which are against ADB's policies or procedures also welcomed. Website is:www.adb.org/ Accountability-Mechanism/. APs may file an appeal on any aspect of resettlement, including compensation rates, etc. The above means of appeal, and the names, locations, persons responsible and telephone numbers of the appeal accepting agencies will be communicated to the APs at a meeting, through an announcement or the RIB, so that the APs know their right of appeal. Mass media will be used to strengthen publicity and reportage, and comments and suggestions on resettlement from all

7 http://www.adb.org/Accountability-Mechanism/default.asp. 128

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject parties concerned will be compiled into messages for disposition by the resettlement organization at all levels. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingency costs. During the whole construction period of the subproject, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues.

Hutubi County County Legal authority People’s Government

ADB County Disciplinary Inspection authority LB/HDO/PMO

External monitoring County appeal accepting Town authority government/Community/ village committee

Affected household

Figure 1: Grievance Redress Flowchart In order that the APs can feed back their grievances timely, contacts have been appointed for different appeal accepting agencies and their contact information disclosed. Table 9: list of subproject contacts

No. Unit Position Name Tel Remark

Deputy Hutubi County Bureau of Housing and 1 director Haimiao 18199286555 Urban-rural Construction general

Hutubi County Bureau of Housing and 2 Director Zhou Haitao 13689933666 Urban-rural Construction

Hutubi County Bureau of Housing and 3 Clerk Liyang 13689933488 Urban-rural Construction

4 Hutubi County Land Bureau Director Liu Zhongping 18999352211

Section Section Chief 5 Hutubi County Land Acquisition Office 13039408333 Chief Gong

Hutubi County Yuanhucun Town 6 Captain Ma Yongcheng 13999346673 Liangzhongchang

Hutubi County Hutubi Town 7 Mayor Nuersitan 18196162122 government

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Hutubi county Hezhuang Village 8 Secretary Baiyun 13565333305 committee

Hutubi County Yuanhucun Town 9 Mayor Mayor Chen 13899683290 government

10 Hutubi County Xiatougong Village Secretary Cao Guangbin 18997563968

Hutubi County Xiatougong Village 11 Captain Li Wanbin 15299601333 group 3

Hutubi County Ershilidian Town Responsible 12 Mateng 18809943322 Government person

Hutubi County Xiatougong Village 13 Captain Wangjun 13899613890 group 2

Hutubi County Ershilidian Town 14 Mayor Xuan Xiaobin 13565347555 government

Hutubi County Yuanhucun Town 15 Mayor Wenbo 18699472655 government

Hutubi County Department of letters responsible 16 Office 0994-4509513 and visits person

Hutubi County Discipline Inspection Responsible 17 Office 0994-4502422 Department person

Responsible 18 Legal Department of Hutubi County Office 0994-4502260 person

19 External M&E agency Uncertain --

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Appendix 3: Terms of Reference for External Monitoring and Evaluation

1. Objective

According to ADB policy requirements, Hutubi Prefecture PMO will hire a qualified, and experienced in ADB loaned project external resettlement monitoring agency. External monitoring and evaluation agencies regularly focus on the implementation of the resettlement activities and track the progress of resettlement, quality, financial monitoring and giving advice. Tracking and monitoring the production ability and living standards of resettlement people, submit monitoring and evaluation reports to the Changji Prefecture PMO， Hutubi MOand Xinjiang PMO as well as ADB.

2. Content and methods of external monitoring

(1) Baseline survey

External monitoring agency will conduct baseline survey on APs to obtain production and living standards (life, production and income levels) of APs. The progress and changes of APs’ production and living standards will be surveyed once every six months. We use follow-up survey of a representative sample (at least 20% households affected by LA and HD, respectively, and 100% vulnerable households), random interviews and field observations and other methods to take the necessary relevant information.

(2) Regular monitoring and evaluation

During the implementation of the resettlement program, external monitoring agency conducted twice a year on a regular basis of tracking and monitor of resettlement, through on-site observation, follow-up survey sample households and casual interviews of resettlement monitoring of the following activities: ‹ Timely payment and amount of compensation; ‹ Training; ‹ Support measures for vulnerable groups and ethnic minority people; ‹ Restoration and reconstruction of infrastructure, ground attachments and special facilities; ‹ Restoration for production and resettlement people; ‹ Adequacy of compensation for lost properties; ‹ Compensation for lost working days; ‹ Timetables of the above activities (applicable at any time); ‹ Resettlement network organization; ‹ compensation fee for collective land acquisition and resettlement earnings; and ‹ Job opportunities generated by the subproject.

(3) Public consultation

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

(4) Grievance redress

The external M&E agency will visit the affected village groups periodically, and inquire with the Hutubi County PMO, resettlement offices and neighborhood committees that accept grievances to assess how well grievances have been handled. It will also meet complainants. The external M&E agency will propose corrective measures and advice for existing issues so as to make the resettlement process more effectively. In addition, the external monitor will verify the data and 131

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project Hutubi County Subproject findings of the internal monitoring reports. (5)External monitoring agency

The external resettlement monitoring agency will be recruited by XAUR PMO, Changji PMO, and the PMO of each Counties and ADB.

(6)Organization of resettlement monitoring and evaluation

i. Xinjiang Uygur Autonomous Region PMO will assistant Changji Prefecture PMO and Hutubi PMO to entrust an independent experienced resettlement monitoring agency to conduct external monitoring and evaluation and report to ADB every six months during implementation of the subproject. ii. The external monitoring agency shall set up a "Project Resettlement Working Group on Monitoring and Assessment", whose main task is to monitor and assessment and resettlement projects, preparation of monitoring and evaluation framework, monitor the target, check the site investigation, monitoring and laboratory analysis; prepared resettlement monitoring and evaluation reports in accordance with ADB's policy. iii. During the field monitoring and survey, the IA and PMO of each county should provide traffic assistant.

(7) Monitoring Indicators

Baseline survey and follow-up monitoring and post-project evaluation will include the following points, and is not limited to targeted households socio-economic indicators: iv. Educated degree of adults in different sexes v. Occupational area of adults in different sexes vi. Land and housing areas of different types vii. Sources of income viii. Different types of expenses ix. The main asset ownership x. Cropping patterns (different types of area)

3. External monitoring agency

The external M&E agency will submit semi-annual monitoring and evaluation report to Xinjiang Uygur Autonomous Region PMO, Xinjiang Autonomous Region PMO, and ADB as following schedule.

Table 1: Reporting Schedule of External Resettlement M&E Resettlement report Date 1 Baseline survey April 2017 2 M&E Report (No. 1) October 2017 3 M&E Report (No. 2) April 2018 4 M&E Report (No. 3) October 2018 5 M&E Report (No. 4) April 2019 6 M&E Report (No. 5) October 2019 7 M&E Report (No. 6) April 2020 8 M&E Report (No. 7) October 2020 9 M&E Report (No. 9) September 2021

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Appendix 4: Minutes of Public Participation and Interview

1. Interview record of land acquisition household

Time: July 28, 2016 PM Location: Hutubi County, Dongfeng Avenue

Participants: Resettlement unit staff

Interviewee: Li Zhihu

Basic situation:

1. Li Zhihu, male, 54 years old, Han nationality, deaf, villagers of Xiatougong Village, low-income and poor households, there are four people in the family, his wife named Xu Maohua, 49 years old, disabled, and they have two daughters, the eldest is 26 year old and married now, the youngest daughter is 21 years old and she is working for others. 2. Both the couples are disabled, Li Zhihu is a deaf mute and has a serious heart attack, and his wife suffered from heavy osteomyelitis, the couples lost the basic ability to work which resulted in a poor family economy; the income mainly from the wages of youngest daughter about CNY2,000-3,000/month, subsistence allowance of CNY600/month, and land rented money; in addition, during the festival they will receive the life subsidies and other items from government, such as rice, noodles, oil and coal to maintain their livelihood. 3. Although the subproject will impose a small portion of their land, but the family support the subproject very much, they expressed that the government must make sure that they can get a reasonable compensation, and they hope that their daughter could get a temporary job in the subproject during the construction to enhance the income and living quality of the family.

Attitude toward the subproject:

1. The subproject is a good thing, it should be support, but the land requisition compensation should be reasonable, the government should fully take into account the vulnerable groups and the disabled, to develop a reasonable compensation scheme. 2. If the road repaired, it will convenient the travel of the villagers to a large extent. 3. The road is clean and tidy will make the environment clean and tidy, it is beneficial to the villagers' physical and mental health.

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2. Interview record of relocation household

Time: July 26, 2016 AM Location: Hutubi County, Hufang Road

Participants: Resettlement unit staff

Interviewee: Kurban

Basic situation:

1. Kurban, male, 41 years old, Uygur, villagers of Hufang Road, with 9 people in the family, his wife 36 year old, his daughter 16 years old, his son1 year old, 94 year old father, mother is 80 years old, 33 year old sister, 42 years old brother-in-law, the whole family are farming and breeding at home; the income is relatively good, economy mainly from breeding about CNY150,000/year; the second is agricultural income, the family has 30 mu of land, and the annual income of CNY20,000; the elderly people have an annual pension of CNY4,800. 2. All of them support the family very much, Kurban said that the national policies are reasonable and make farmers really get benefit, and the policies greatly improve the farmer's income and the quality of life, as long as compensation for reasonable, we all willing to participate and support the subproject.

Attitude toward the subproject:

1. The subproject in order to convenient the farmers themselves, and the beneficiary are also farmers themselves, it is a good thing, should be supported. 2. We are willing to participate in the subproject and we will try our best to support the development of the subproject in the case of no adverse Impact on our own interests.

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3. Interview record of land acquisition and relocation household

Time: July 26, 2016 AM Location: Hutubi County, Hufang Road

Participants: Resettlement unit staff

Interviewee: Ma Rushan

Basic situation:

1. Ma Rushan , male, 56 years old, Hui nationality, the villagers of Hufang Road, there are 7 people in the family, 52 year old wife, two daughters are married, a divorced son, and two grandchildren, his son was working for others, the rest of the people is farming at home; the family income is mainly from the planting and working for others; the farming land area of 12 mu, annual income of about CNY30,000; the wages of his son of CNY36,000/year; these income just enough for a family to maintain their livelihood, they hope to have a high income in the future. 2. They very supportive of the subproject, but because of the economic conditions is not very good, they hope that the demolition compensation and resettlement of houses should be reasonable, do not cause their homeless; and they also hope that the transportation and environment of their new living place should be convenient and good. For the land acquisition also expressed support, although land acquisition will influence home farm income, but because of the condition of the land is not very good and land area is not large, so the Impact is small. Finally, I hope that all the compensation and resettlement should be reasonable, compensation for resettlement funds should be issued in a timely manner.

Attitude toward the subproject:

1. We hope that the subproject will provide more jobs to increase the income of farmers. 2. The implementation of the subproject should be in time to consult with the local affected people. 3. We hope that the implementation of the subproject does not cause economic burden to the affected people.

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4. Institution Forum Minutes

Time: July 26, 2016 AM Site: Meeting Room of Hutubi PMO meeting room

Participant-units: Hutubi County DRC, PMO, CB, L&RB, CAB, ERC, FB, WCB, WF, etc.

The main issues and content:

The director of PMO described the resettlement program for displaced households. The subproject includes five parts: (i) Road Construction; (ii) Water Supply; (iii) Water Drainage; (iv) District Heating; (v) Gas engineering. And especially stressed the Impact area of the subproject. The land demolished are including state-owned cultivate land (nursery land), state-owned construction land, stated-owned unused land, residential land, collective cultivate land, and collective construction land. The subproject is of construction of public utilities, so the state-owned farm land and unused land will be allocated by transferring land use right after payment for relevant fees, based on the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500]. For the state-owned unused land and farm land should pay for new construction use fee (CNY16/m2). For the allocated state-owned land, land use rights will be acquired according to the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500] paying leasing fees at a rate of CNY10-20/m2. The Subproject will involve acquisition of state-owned land in the built-up area of Hutubi County, and the compensation rate is CNY20/m2, for the state-owned unused land should pay non-agricultural construction allocated unused land management fee of CNY50/mu.

In addition, the director of Hutubi County demolition office describes the resettlement plan to the affected people. They can choose cash compensation or property rights exchange according to their own condition, the demand for property rights exchange: exchange the house among the land use right area according to the construction area and combined with the floor coefficient or according to the residential area and combined with the floor coefficient. The people choose to exchange the house with residential land will get the resettlement house according to the exchange ratio of 1:0.4 and combined with floor coefficient and the legitimate attachments on the ground will no longer be compensated. The house be demolished will give cash compensation according to market price of the newly built commercial house in same location. Property exchange in principle in accordance with the residential housing construction area--- “one to one” principle and combined with floor coefficient (the land occupied by residential housing has been included, no further compensation). Concrete replacement ratio: property exchange based on standard layer of the resettlement house, in accordance with the residential housing construction area of 1:1 replacement ratio to be replaced.

The director of WF gave a short report on the last year’s work, and introduced the work to be carried out in this year. Meanwhile, the director said that it should be allowed to make unemployed women participate in the construction of subproject, or after the construction, make them engage in sanitation worker. Thus, can increase the employment rate of women, and help them obtain some remuneration to increase family income.

The Director of ERC also expressed that ethnic minorities should be given equal attention. On the one

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hand, allow them participate in the construction of subproject, on the other hand, it is necessary to explain the minorities’ food habits, lifestyle, clothing and customs, even taboos to workers of construction team, in case these workers conflict with the local ethnic minorities.

5. Interview record of Hezhuang Village

Time: August 11, 2016 AM Site: Village committee of Hezhuang Village

Participants: Resettlement unit staff

Interviewee: Secretary Baiyun

The main issues and content:

Secretary Baiyun introduced the basic situation of Hezhuang Village to us. Hezhuang Village is located in the south of Hutubi County, covering an area of 19.58 km2 land, divided into 5 districts, it is about 1,048 households with 2,965 residential population and 3,500 temporary resident population ; and there are 18 enterprises, 37 shops, 236 rent houses. The village is the typical urban-village, has a large amount of floating population; there are 1,040 households 2,931 people in the whole village. The population structure are as following: 1,436 male, 1,495 female; 420 households 1364 Han population, 620 households 1,567 minority population including 35 households of 114 Uygur, 18 households of 51 Kazak, 21 households of 63 Dongxiang, 546 households of 1,339 Hui, the minority population account for 60% of the total population of the village. 27 low income households (47 people), 18 households disabled (33 people), 6 households five guarantees (the aged, the infirm, old widows and orphans). The total income of the village is CNY16.449 million and per capita income is CNY19,919 in 2015. There are in total of 9,000 mu of land in Hezhuang Village, because of the County’s development there are about 3,000 mu of land haven been acquired, at present the whole village has 6,200 mu land including 120 mu cotton, 860 mu corn, 1,800 mu of Jujube, 70 mu of grape, 220 mu of hops and 6,100 mu nursery; the land acquisition of the subproject are only acquired the nursery land. At present there are only 1/3 people planting crops, most of the villagers have moved into the buildings and engaged in other industries such as business, migrant workers, restaurant. The living standard of the village has improved greatly; the subproject will help them repair their road and make their transportation convenient. All the villagers support the subproject.

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In addition, the villagers can get the free training, such as cooking, Automobile Service; the villagers can choose by their own, through the training the villagers improved their working skills, so they can get a better job and improve their living standards.

6. Interview record of Yuanhucun Town Liangzhongchang

Time: August 11, 2016 AM Site: Yuanhucun Town Liangzhongchang

Participants: Resettlement unit staff;

Interviewee: Captain Ma Yongcheng

The main issues and content:

Captain Ma Yongcheng introduced the basic situation of Yuanhucun Town Liangzhongchang to us. Hutubi County Yuanhu Township Liangzhongchang is a self-financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery land of Hutubi County, the south is Wuyi road, the west is Shazhou road, the north is the cattle farm. At present, there are 2 production team with 256 HHs 845 people, and 5 kinds of minority groups as Hui, Han, Dongxiang, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a total area of 1,500 mu, at present there are 960 mu cultivate land around the farm and other 5,000 mu in Aweitan, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plant wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17,200 in 2015. It has 7 village cadres; the wages of the village cadres are paid by the county fiscal about CNY98,000 every year. There are 26 Party members in the farm. At present, there are 208 employees to participate in social security including 115 state-owned employees (95 male and 20 female) and 93 non state-owned employees (23 male, 70 female), and there are 120 people that enjoy social security retirement policy.

The subproject will acquire 6.35 mu of state-owned cultivated land. It has very little Impact on them. At present the operating condition is good, and all the farmers support the subproject greatly. After the construction of the road, the travel conditions and infrastructure will also be improved.

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Liangzhongchang has built houses for the workers, and the houses have been handed over in 2015. At present most of the workers have moved into the new houses and the living environment has improved greatly. The average price of the houses is CNY2,000/m2 and there are preferential policies for workers; the workers can buy the house within 30 m2 at the price of CNY1,000/m2; the excess area will be sold according to the average price. In addition, the workers can get subsidy of CNY1,500; the living standards and environment have improved greatly.

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Appendix 5: Due Diligence Report on Road Construction Subproject

Xinjiang Changji Integrated Urban-Rural Infrastructure Demonstration Project

Hutubi County Subproject Due Diligence Report

Hutubi County Housing and Urban-Rural Construction Bureau

November 2016

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1 Overview of the project

1.Hutubi County urban and rural infrastructure construction demonstration subproject (Subproject) is one subproject in Xinjiang Changji urban and rural infrastructure construction demonstration Project, which is financed by Asian Development Bank (ADB). The subproject includes five parts: (i) Road Construction: construction of 3 roads with length of 7.96 km, including 1 new cover culvert, 15 round pipe culverts, and 7 inverted siphons; (ii) Water Supply: all of these pipelines will be newly built and the total length is 1,043 m, among which the water supply pipe is 8,028 m and crossing reservation pipe is 2,048 m, the diameter is dn200 and the material is PE100; (iii) Water Drainage: installation of 10,432 m drainage pipeline, the diameter is dn400 and the material is HDPE; (iv) District Heating: installation of 2x9,220 m hot water pipeline, the diameter is dn250-500 and the material is Q235-B; (v) Gas engineering: installation of 9,900 m of gas pipeline, the diameter is dn160, the pressure is 0.4 MPa and the material is PE.

2.Because of the overall development of Hutubi County, The subproject acquired 736 mu of land for the construction of Xiyuchun Landscape zone, including 20.58 mu of land of Changhua Road, which is acquired in October 2013, and the affected 11 households with 39 people need to do the DDR survey. According to the ADB’s requirements, Hutubi County Development and Reform Commission, the Hutubi County PMO, and a RP preparation agency conducted a full survey and compiled this due diligence report (DDR) on LAR Impact, compensation, payment, etc.

2 Preparation for Due Diligence Report

3.A preparation team composed of the Hutubi PMO and a RP preparation agency prepare the report. From 11 to 13 June 2016, the team visited the Land and Resource Bureau, Liangzhongchang farm and other relevant departments to collect the land acquisition, compensation and resettlement agreement and other relevant materials, and interviewed the principal of the Liangzhongchang farm and related people. The main contents of this report include: to understand the actual situation of the LA, the process of the LA and compensation payment, to know public participation and complaint cases, to assess the compensation payment for the LA, and ultimately to draw relevant conclusions.

3 Project Impact

4.Hutubi County Government and the Liangzhongchang farm signed an Agreement on 6 February 2013. The government acquired 736 mu of cultivated land from the Liangzhongchang farm be used for construction of Xiyuchun landscape zone.

5.Hutubi County Yuanhu Township Liangzhongchang is a self-financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery Land of Hutubi County, the south is Wuyi road, the west is Shazhou road, and the north is the cattle farm.

6.At present, there are 2 production teams with 256 HHs with 845 people, and 5 kinds of minority groups as Hui, Han, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a total area of 1,500 mu, at present there are 960 mu of cultivated land around the farm and other 5,000 mu in Aweitan, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plant wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17,200 in 2015. It has 7 village cadres; the wages of the village cadres are paid by the county fiscal about CNY98,000 every year. There are 26 Party members in the farm. At present, there are 208 employees to

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participate in social security including 115 state-owned employees (95 male and 20 female) and 93 non state-owned employees (23 male and 70 female), and there are 120 people enjoy social security retirement policy.

7.Through the survey we found that, Hutubi County Government and the Yuanhucun Town Liangzhongchang signed an Agreement on 6 February 2013. The government acquired 736 mu of cultivated land from the Yuanhucun Town Liangzhongchang be used for construction of Xiyuchun landscape zone. In the project, the construction of Changhua Road only acquired 20.58 mu of land of Yuanhucun Town Liangzhongchang, 11 households with 39 people affected by ADB loan project only, the land acquisition did not cause large influence to the local people.

4 The economic analysis for affected people

8.The DDR carried the social economic survey to the 11 households with 39 people. The survey including the analysis of the occupation, income, expenditure and so on.

9.The analysis of the occupation as following: the survey found that because the affected people belonging to state-owned farm’s farmers, so the occupation structure is single. According to the survey, the planting people accounting for 56.41%, the outside work people accounting for 17.95%, and the institution staffs accounting for 2.56%, see in Figure 1. Farming

2.56% 5.13% 7.69% Outside 2.56% working

7.69% Student

56.41% Teacher 17.95%

Workers

Preschool

Other

Figure 1 The occupation of the affect people

10.Because of the Impact of the road construction, the land acquisition farmers of Yuanhucun Town Liangzhongchang in Hutubi County are mainly responded for planting the cultivate land which is distributed by Liangzhongchang. At the same time, in spare time they also choose to do outside working; their income are mainly from planting and outside work, the planting accounting for 61.34%. For the detailed information, see in Table 1.

Table 1: Economic situation of affected people in 2015 Unit: CNY/year/person Affected Minimu Standard Type APs Item Maximum Average HHs m deviation Per capita 13,000 26,666.67 20,371.21 5,332.73 Affected income 11 39 HHs Per capita 7,790 19,450 11,098.94 4,349.27 expenditure Note: DDR survey in July 2016

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11.From Table 2 we can see that the main income of the affect households is planting, it is because that the affected people are the workers of Liangzhongchang; the following is outside work; the planting income accounting for 61.34%, the outside work income accounting for 25.55%, and the wage income accounting for 12.02%. For details, see Table 2.

Table 2: Income resource of affected people in 2015 Unit: CNY/year/HH Item Agriculture Outside working Wage Other Total Total 449,000 187,000 88,000 8,000 732,000 Per household 40,818.18 17,000 8,000 727.27 66,545.45 average income % 61.34% 25.55% 12.02% 1.09% 100% Note: DDR survey in July 2016 total N=11 households with 39 people 70%

60%

50%

40%

30%

20%

10%

0% Farming Work labor Wage Other Figure 2 The income resource of affected people

12.Through the survey we found that, most of the farmers of the project area are planting nursery, the growth period of the nursery is long and the beginning investment is large; during the growth period, the affect people could do other jobs like outside working, business and so on; the Table 3 show the per households average income. The survey show that the living expenditure accounting most for 28.64%, the following are the agriculture and social activity expense accounting for 14.82% and 10.84% respectively. See Table 3.

Table 3: Per household expenditure of affected people in 2015 Unit: CNY/year/HH Expenditure Total Per capita % Water expenses 2,280 58.46 0.60% Electricity expenses 7,780 199.49 2.05% Entertainment expenses 8,000 205.13 2.11% living expenses 108,800 2789.74 28.64% Heating expenses 23,150 593.59 6.09% Clothing expenses 26,500 679.49 6.97% Investment in agriculture 56,300 1443.59 14.82% Educational expenses 40,000 1025.64 10.53% Medical expenses 24,600 630.77 6.47% Traffic expenses 13,800 353.85 3.63% Communication expenses 22,540 577.95 5.93%

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Social activity expenses 41,200 1056.41 10.84% Other 5,000 128.21 1.32% Total 379,950 9742.31 100.00% Note: DDR survey in July 2016 35% 30% 25% 20% 15% 10% 5% 0%

Figure 3 Per household expenditure of affected people

13.The affection to the labor force of the project is presented in Table 4. Through the survey we found that the annual income of male labor force is CNY35,150, and the female labor force is CNY27,759.09. The reason why male’s income is higher than female is that the number of male working in planting and outside work is larger than female; most of the females are working in the home or do some temporary works.

Table 4: Income proportion of male and female labor force Type HHs Item Minimum Maximum Average Standard deviation Male 15,600 55,000 35,150 12,948.47 Affected HHs 11 Female 14,400 45,000 27,759.09 9,673.88 Note: DDR survey in July 2016

14.The annual income lower than CNY20,000, the male and female are has a slight difference; the annual income between CNY20,000 and 55,000, the male is obvious high than female. It is because most of the male do some high paid jobs like outside working; while the female, most of them are doing housework at home or take care of child and old people, they have little time to work outside, so their income are lower than male. But generally speaking, the income of female has increased. 60000

Male Income 50000 Female Income

40000

30000

20000

10000

0 1 2 3 4 5 6 7 8 91011 Figure 4: Income distribution proportion of male and female labor force

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5 Compensation and Payment

15.From October to December 2012, Hutubi County Land and Resource Bureau consulted with Liangzhongchang farm several times and finally reached an agreement and signed an Agreement on 6 February 2013. According to the land acquisition laws of the County, the Hutubi government acquired 736 mu of cultivated land from Liangzhongchang farm and paid the land compensation fee in total of CNY8.83 million; the government paid the first compensation fee of CNY5 million after signing the agreement, and paid the rest money in August 2013. And the young crops and resettlement compensation fee in total of CNY8.96 million, will be paid to the farm within 10 days after signed the agreement; because the farm belong to the state-owned farm, the land compensation fee will be paid to the farm and the resettlement and young crops compensation fee will be paid to the farmers.

16.Hutubi County Land and Resource Bureau consulted with Liangzhongchang farm several times and finally reached an agreement and signed an Agreement on 6 February 2013 and the land acquisition has been completed in October 2013, the detailed compensation agreements see in appendix.

Picture 1 : Acquired land of Liangzhongchang farm (Waiting for construction)

6 Public Participation

17.In the land acquisition process, Hutubi County Land and Resource Bureau and related agencies organized full consultation with Liangzhongchang farm on project-related Impacts to fully understand the considerations of affected people’s views and suggestions, and take a variety of ways for public participation and negotiation: (1) Public participation and consultation meetings

18.Before the land acquisition, hold forums, focusing on the basic situation of urban development planning.

19.For the proposed construction projects, as well as the scope of planned land acquisition, listen to the views and suggestions of Liangzhongchang farm, Yuanhucun Town, and concerned departments, as well as made records and given consideration and concern in the implementation.

(2) Public meeting for LA compensation and resettle

20.Prior to the implementation of land acquisition program, to explain to Liangzhongchang farm the relevant policies and regulations, compensation standards, payment time, replacement land location etc. combined with opinions and suggestion of Hutubi County Land and Resource Bureau and Liangzhongchang farm; to implement the project the in strict accordance with national and Xinjiang Uygur Autonomous Region policies; to call on concerned department to discuss the LA of Liangzhongchang farm and resettlement. 145

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(3) LA and compensation

21.During detailed investigations and measurements on LA, compensation standard setting, land acquisition agreements negotiation, and compensation payment, the principal of Liangzhongchang farm and Hutubi County Land and Resource Bureau have participated in the work process, to ensure that land acquisition just, fair, reasonable and transparent.

(4) Release announcement about Land acquisition

22.The main content of the announcement include: project overview, scope of land acquisition, compensation standards, resettlement policies, schedules and so on.

23.From 10 to 13 June 2016, the investigation team visited Hutubi County Development and Reform Commission, Hutubi County Land and Resource Bureau, the PMO, Liangzhongchang farm and relevant departments, and conducted field visits, the relevant personnel interviews and questionnaires, learned Land acquisition implementation policy, project Impact, compensation standard, payments, etc., and held meetings Liangzhongchang farm to understand public participation, asked whether their livelihoods affected by LA or not, and inquired for the views and opinions on the LA.

Picture 2: Interview record of Liangzhongchang farm

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Returning Visiting to LA Households

Time: 29 July 2016 Location: Home visit to Affected person

Participants: Staff from Hutubi PMO, team members from RP preparation agency

Interviewee: Ms. Shan (the people who affected by land acquisition in 2013) Basic Information:

1. Ms. Shan, female, 48 years old, who is the staff in Yuanhucun Town state-owned farm Liangzhongchang, with 3 family members, her husband Mr. Ma 49 years old, and they have one son 23 years old who is on school now (college student). The main family income is from planting the nursery, the total annual income about CNY40,000, in addition, Mr. Ma also engages in some outside working during slack seasons, and earing some extra money for helping out with family expenses, the income from outside working is about CNY50,000 per year, overall, the family income is more substantial. However, the main expenditure is living costs, and then the education fee for the child, the total costs for child is around CNY20,000 every year, including tuition fee and living cost.

2. The family contracts farm land for 10.5 mu in total in Liangzhongchang. The government acquired 4.5 mu of land in total, and the ADB project accounts for about 1.8 mu. The land in Liangzhongchang belongs to state-owned land, the ownership belongs to nation instead of us. We are responsible for planting the land we contracted from Liangzhongchang, besides, more than Liangzhongchang cultivated 5,000 mu of farm land in Aweitan. And this part of land will be distributed to us base on our needs. So the land acquisition has little negative Impacts to us, we still have land for planting.

3. We were informed to make preparation for land acquisition ahead about 2 years before the project implementation, 4.5 mu of nursery land was acquired in 2013 and we got CNY527,625 of the compensation in total, we are satisfied with the compensation standard, because of the land ownership belongs to state-owned, the land compensation paid to Liangzhongchang directly, the farm used the funds to build Anjufumin residential estate and the construction of infrastructure. And the resettlement subsidy and young crops fee paid to us. The houses in Anjufumin residential estate will sold to the staff from Liangzhongchang for priority, the average price of the house is CNY2,000/m2, besides, the farm also give us the preferential policy, within the house area of 30 m2, we can purchase in CNY1,000/m2, in addition we can get CNY1,500 for extra allowance from Liangzhongchang. Not only the living standard gets greatly improved, but also the environment gets upgrades.

4. Furthermore, we farmers also received the agricultural training, to improve the skill of planting, to increase our income, to guarantee our economic profits.

Attitudes toward the project:

5. Show their supportive attitudes to the project, and satisfied with the rehabilitating measurements. 6. The public participation and project information were well informed before the implementation of project. 7. The compensation standard is reasonable, and we are satisfied with the standard, and the compensation also paid to us timely.

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1. Interview record of Yuanhucun Town Liangzhongchang

Time: August 11, 2016 AM Site: Yuanhucun Town Liangzhongchang

Participants: Resettlement unit staff

Interviewee: Captain Ma Yongcheng The main issues and content:

Captain Ma Yongcheng introduced the basic situation of Yuanhucun Town Liangzhongchang to us. Hutubi County Yuanhu Township Liangzhongchang is a self -financed state-owned agricultural farm managed in way of enterprise in 1963. Located in the east of Hutubi County about 2 km away. It is a typical suburban state-owned farm, the east is the nursery land of Hutubi County, the south is Wuyi road, the west is Shazhou road, and the north is the cattle farm. At present, there are 2 production teams with 256 HHs with 845 people, and 5 kinds of minority groups as Hui, Han, Dongxiang, Kazak, Uygur, the minority population accounting for 60% of the total population in the farm. With a total area of 1,500 mu, at present there are 960 mu cultivate land around the farm and other 5,000 mu in Aweitan, all these land have been contracted to the workers in the farm (8.5 mu/person). The farm mainly plant wheat, corn and hops, and known as the largest hop planting base for it has planting hops for 40 years. The annual per capita net income is CNY17,200 in 2015. It has 7 village cadres, the wages of the village cadres are paid by the county fiscal budget, about CNY98,000 every year. There are 26 Party members in the farm. At present, there are 208 employees to participate in social security including 115 state-owned employees (95 male and 20 female) and 93 non state-owned employees (23 male and 70 female), and there are 120 people enjoy social security retirement policy.

The project will acquired 6.35 mu of state-owned farm land, it has very little Impact on them, at present the operating condition is good, and all the farmers are support the project greatly, after the construction of the road, the travel conditions and infrastructure have also been improved.

Liangzhongchang has built house for the workers, and the house have been delivered in 2015, at present most of the workers have moved into the new house and the living environment has improved greatly, the average price of the house is CNY2,000/m2 and it has preferential policies for workers, the workers can buy the house within 30 m2 at the price of CNY1,000/m2, the excess area will be sold according to the average price, in addition, the workers can get subsidy of CNY1,500, the living standards and environment have improved greatly.

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24.The findings show that: in the land acquisition process, Hutubi County Government and related agencies conducted extensive public participation to fully understand the opinions and recommendations of Liangzhongchang farmers, and all related matters are based on full public participation to implement; taking Liangzhongchang farmer’s opinions on research and development into consideration, the acquired land will get a reasonable compensation. All land compensation fees were paid by the time stipulated in the agreement, and no remaining issues. The principal of Liangzhongchang farm thought that land acquisition made no Impact on them. The project only acquired 736 mu of land, while after the land acquisition the Liangzhongchang farm cultivated 5,000 mu of land in Aweitan and around the farm there are still 960 mu cultivate land, all these land have been contracted to the workers in the farm (8.5 mu/person).

25.In the LA, Hutubi County Land and Resource Bureau and related agencies conducted extensive public participation with Liangzhongchang farm to fully understand the opinions and recommendations of affected people, and detailed public participation is shown in following tables.

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Public participation I

TimeSeptember 20, 2012 Location: Liangzhongchang farm of Hutubi County Participants: Mateng (Yuanhucun Town), Mayongcheng (Liangzhongchang farm), Zhangquan (Hutubi Land and Resource Bureau) and concerned workers.

Conference topics:

Consult Meeting about proposed land acquisition for the construction of Xiyuchun landscape zone.

Content:

1. Introduces the basic ideas and purpose of the construction of Xiyuchun landscape zone; 2. Introduce the future development of Hutubi County and schedule the scope of Land acquisition and implementing time; 3. Seek opinions and views to Yuanhucun Liangzhongchang farm and concerned agencies’.

Staffs express their views:

Ma Yongcheng who is the farm leader said that the project could promote regional economic development, and he was supportive of the project construction. Before LA, the interest of farmers should be taken into consideration. Liangzhongchang belongs to state-owned farm, which is in escrow by Yuanhucun Town, the operation mode is self-financed, we have staff for more than 100 people.

We are concerned about the issues on how to resettlement and the compensation, all of us hoping that we can be resettled for properly.

All the acquired land is nursery land, and I hope government start from the point of farmers and take the following issues into consideration. Other concerned people are supportive of Ma Yongcheng’s opinions that normal living for farmers could not be disturbed, and hoping all of the affected farmers could be resettled properly.

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7 Appeal Procedures

26.During the LA, an appeal procedure was established. If displaced persons have any complaint and question about project land acquisition or other problems, they could take a variety of ways to appeal. The appeal system is shown in figure 1. Basic appeal stages are as follows:

Stage 1: If any AP is dissatisfied with any land acquisition and resettlement, he/she may file an oral or written appeal with village committee/community, township government/sub-district office, or Hutubi PMO. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with LRB, after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Hutubi PMO after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Administrative Office in Hutubi, or he/she may applies for administration proceedings with people’s court of Hutubi county within 3 months based on the Civil Procedure Law. Displaced persons may file an appeal on any aspect of resettlement, including compensation rates, payment time, etc. The above means of appeal have been communicated to the displaced persons by virtue meetings and other channels, so that the displaced persons know their right of appeal.

County legal department Hutubi County Government

Disciplinary inspection LRB/PMO Hutubi People’s court

County letters and visits Community/village/township

APs

Figure 1: Grievance Redress Flowchart

27.From the investigation, it is found that the farmers in Liangzhongchang understand well about its own rights and the grievance complaint channels. There is no complaint until now and the farmers are satisfied with the compensation. 8 Conclusion and Suggestion

28.Prior to and during the land acquisition, Yuanhucun Town as well as the relevant units organized several different forms of public participation, and the farmers of Liangzhongchang’s opinions are fully respected in the project implementation process. The compensation payments have been paid in full. No Impact on the regular operation of ARI. Overall, all of the compensation and resettlement measures are based on public participation to implement fully and without any remaining problems.

29.During the implementation period, the grievance complaint channels are in validity and there is no complaint up to now. ARI is very supportive of the project construction, and they are satisfied with the compensation standard, no remaining problems.

30.The investigation found that the land acquisition compensation and the fund for infrastructure construction have been paid in full, no remaining problems. 151

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9 Agreement on Land Compensation

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Agreement of Land Compensation on Liangzhongchang First Party: Hutubi County L&R Bureau Second Party: Liangzhongchang

In order to speed up the development of Hutubi, and promote the growth of economy, on the basis of county master plan, and land use plan, 736mu of land in Liangzhongchang would be acquired which had been approved by Hutubi government, based on the related national policies some land acquisition compensation agreement had been reached as follows: Land compensation: Based on the national land management laws and regulation and Xinjiang land management laws article 47 and article 35, the land compensation would be paid in 8 times. That is to say: 736 mu×CNY1,500/mu×8 times = CNY8,832,000 in total Besides, the resettlement subsidy and young crops fee would be paid to affected farmers directly. According to the related laws and regulations both in PRC and Xinjiang, the resettlement subsidy would be paid in 16 times. The agreement for resettlement subsidy and young crops fee as well as the attachments on the ground would be signed separately, which would be shown below. Way of payment: After signing the land compensation agreement, CNY5, 000,000 would be paid for one time by first party within 10 days, the rest of compensation funds would be paid by the end of August 2013 for one time.

First Party: Hutubi County Land and Resource Bureau Representative: Li Yujun Second Party: Liangzhongchang Representative: Witness Unit: Yuanhucun Town Signing date: February 6, 2013

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10 Agreement on Young Crops and Surface Appendages

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Agreement on Young Crops and Surface Appendages First Party: Hutubi County L&R Bureau Second Party: Liangzhongchang

In order to speed up the development of Hutubi, and promote the growth of economy, on the basis of county master plan, and land use plan, 736mu of land in Liangzhongchang would be acquired which had been approved by Hutubi government, based on the related national policies resettlement subsidy, surface appendages as well as young crops fee compensation agreement had been reached as follows: Resettlement subsidy: 172 mu×CNY1,500×16 times = CNY4,128,000 Appendages and young crops fee: CNY4,833,400 Poplar tree: 2,486×CNY80 = CNY198,880 Seepage pit: 5,739 m×CNY180/m = CNY1,033,020 Floodgate: 154×600 = CNY92,400 Bridge and culverts: big bridge: 6×CNY2,000 = CNY12,000 Small bridge: 19×CNY900 = CNY17,100 Motor-pumped well: the new well for CNY280,000, and old well for CNY180,000 The total compensation funds for CNY8,961,400. Way of payment: After signing the land compensation agreement, CNY8,961,400 would be paid for one time by first party within 10 days. First Party: Hutubi County Land and Resource Bureau Representative: Li Yujun Second Party: Liangzhongchang Representative: Witness Unit: Yuanhucun Town Signing date: June 8, 2013

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11 Payment Issue Details

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Appendix 6 Land ownership description of the Second water plant of Hutubi County

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Land ownership description of the Second water plant of Hutubi County

The Third water plant of Hutubi County was built in 1994, the plant accounted an area of 3 ha, all the land belonging to state-owned unused land and with any attachments and facilities on it. The land intends to occupied has clear boundaries, accurate area, and ownership of no dispute.

Hutubi Bureau of land and resources November 15, 2016.

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Appendix 7 Land ownership description of the Third water plant of Hutubi County

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Land ownership description of the Third water plant of Hutubi County

The Third water plant of Hutubi County was built in 2015, the fifth time construction land acquisition in Yuanhucun town, the plant accounted an area of 2.8 ha, all the land belonging to state-owned unused land and with any attachments and facilities on it. The land intends to occupied has clear boundaries, accurate area, and ownership of no dispute.

Hutubi Bureau of land and resources November 15, 2016.

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Appendix 8 Land ownership description of the sewage disposal plant of Hutubi County

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Land ownership description of the sewage disposal plant of Hutubi County

The sewage disposal plant of Hutubi County was built in 2002, the third time construction land acquisition in Yuanhucun town, the plant accounted an area of 1.8 ha, all the land belonging to state-owned unused land and with any attachments and facilities on it. The land intends to occupied has clear boundaries, accurate area, and ownership of no dispute.

Hutubi Bureau of land and resources November 15, 2016.

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Appendix 9 Land ownership description of the heating plant of Hutubi County

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Land ownership description of the heating plant of Hutubi County

The heating plant of Hutubi County was built in 2010, the third time construction land acquisition in Yuanhucun town, the plant accounted an area of 25.60 ha, all the land belonging to state-owned unused land and with any attachments and facilities on it. The land intends to occupied has clear boundaries, accurate area, and ownership of no dispute.

Hutubi Bureau of land and resources November 15, 2016.

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Appendix 10 Land ownership description of the gas plant of Hutubi County

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Land ownership description of the gas plant of Hutubi County

The gas plant of Hutubi County was built in 1999, the second time construction land acquisition in Yuanhucun town, the plant accounted an area of 0.35 ha, all the land belonging to state-owned unused land and with any attachments and facilities on it. The land intends to occupied has clear boundaries, accurate area, and ownership of no dispute.

Hutubi Bureau of land and resources November 15, 2016.

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