46040-003: Yunnan Pu'er Regional

Social Monitoring Report

4th Annual Report Project Number: 46040-003 March 2020

PRC: Yunnan Pu’er Regional Integrated Road Network Development Project

Prepared by Science and Technology Consulting and Development Center of Yunnan University for the Yunnan Pu’er Municipal Government and the Asian Development Bank

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, 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 Loan

Yunnan Pu’er Regional Integrated Road Network Development Project

(RRP PRC 46040)

Monitoring and Performance Evaluation Report for Ethnic Minority Development Plan and Gender Action Plan

Science and Technology Consulting and Development Center of Yunnan University

March 2020

Contents

1. Introduction ...... 1

1.1 PROJECT OVERVIEW ...... 1

1.2 OBJECTIVES OF PROJECT DESIGN ...... 10

1.3 OBJECTIVES OF PERFORMANCE EVALUATION AND MONITORING ...... 20

1.4 METHODS OF MONITORING AND EVALUATION ...... 21

1.5 DESIGNING MONITORING FRAMEWORK ...... 22

1.6 METHODS OF DATA COLLECTION ...... 40

1.7 SURVEY SAMPLE SELECTION ...... 40

1.8 MONITORING PROCESS ...... 41

2. Project Impact ...... 51

2.1 SOCIOECONOMIC SITUATION OF THE PROJECT AREA ...... 51

2.2 FOREIGN AND PORT TRADE ...... 74

2.3 OTHER IMPACTS ...... 80

3. Result of the Project ...... 93

3.1 REGIONAL TRANSPORT ...... 93

3.2 TRANSPORT UTILIZATION OF FARMERS IN PU’ER CITY ...... 104

3.3 BORDER TRANSPORT ...... 118

3.4 TRAFFIC SAFETY IN THE PROJECT AREA ...... 120

4. Project Output ...... 124

4.1 REGIONAL ROAD IMPROVEMENT ...... 124 4.1.1 ROAD CONSTRUCTION ...... 124

4.2 RURAL ROAD IMPROVEMENT ...... 132

4.3 CONSTRUCTION OF MENG’A MATERIAL TRANSIT CENTER ...... 135

4.4 EMPLOYMENT IN ROAD CONSTRUCTION ...... 135

4.5 INSTITUTIONAL DEVELOPMENT ...... 136

5. Implementation of Project Activities ...... 145

5.1 IMPLEMENTATION OF LAND ACQUISITION AND RESETTLEMENT ...... 145

5.2 EVALUATION, DESIGN AND ASSESSMENT OF ROAD SAFETY ...... 163

5.3 BIDDING AND PROCUREMENT ...... 165

5.4 MONITORING ON ETHNIC MINORITY DEVELOPMENT PLAN ...... 166

5.5 MONITORING ON PROJECT ENVIRONMENT ...... 185

6. Monitoring Result ...... 203

6.1 MONITORING ON PROJECT IMPACT, RESULT AND OUTPUT ...... 203

6.2 DEVELOPMENT OF ORGANIZATION ...... 213

6.3 PROJECT ACTIVITIES ...... 214

7. Problems and Suggestions ...... 218

7.1 PROJECT ACTIVITIES LAGGING BEHIND ...... 218

7.2 INCREASE OF ADVERSE IMPACT, AND UNSATISFACTORY OUTPUTS AND

OUTCOMES ...... 219

Appendices ...... 222

TABLE 1 NUMBER OF EMPLOYEES ...... 222

TABLE 2 NUMBER OF NON-TECHNICAL WORKERS ...... 222

TABLE 3 SALARY STANDARD OF WORKERS OF NJ ROAD ...... 224 TABLE 4 SALARY STANDARD OF WORKERS OF MM ROAD ...... 225

TABLE 5 LOCALLY PURCHASED PRODUCTION MATERIAL AND RENT COST ...... 226

TABLE 6 TRAINING RECORDS PROVIDED BY THE CONTRACTORS ...... 228

TABLE 7 OTHER DATA PROVIDED BY THE CONTRACTORS ...... 229

BRIEFING ON 2019 REGIONAL ROAD SURVEY ...... 231

1. Introduction

1.1 Project Overview

Yunnan Pu’er Regional Integrated Road Network Development Project is implemented with Asian Development Bank (hereinafter referred to as ADB) loan, whose executing agency (hereinafter referred to as EA) is Pu’er Municipal Government (hereinafter referred to as PMG) and implementing agency (hereinafter referred to as IA) is Pu’er Municipal Transport Bureau (hereinafter referred to as PMTB).

Table 1-1 Basic Information of the Project

NO. Project Basic Information

1 Country PRC

2 Loan No. LOAN 3217-PRC

3 Project Title Pu’er Regional Integrated Road Network Development Project

4 Start of the Loan October 20, 2015

5 End of the Loan June 30, 2021

6 Borrower Ministry of Finance, PRC

7 EA PMG

8 IA PMTB

9 Sum USD 200 million

Approval and ADB approved the $200 million loan on December 8, 2014. 10 Execution The loan agreement was signed on June 25, 2015

The Latest 11 November 25-30, 2019 Inspection by ADB

The project consists of three sub-projects:

Output 1: Regional roads development. This output comprises: (I) upgrading and new construction for a total of 228.078 km of Class III highway between Ning’er- Jiangcheng-Longfu (hereinafter referred to as “NJ Road”); (II) upgrading and new

construction for the 44.739 km Menglian to Meng’a section of the existing Lancang- Menglian-Meng’a Class III/IV border road to a predominantly Class II road (hereinafter referred to as “MM Road”); (III) the development of trade facilities at the MTC; and (IV) improving the safety of the roads by introducing safety measures determined by the China RAP road safety design decision making tool.

Output 2: Rural access improvements (hereinafter referred to as “Rural Roads”). This output comprises: (I) the upgrading of 30 village earthen or gravel roads with a length of 537 km to concrete Class IV standard; (II) the hardening of 1,500 km village roads; (III) introduction of five new village bus service routes on a pilot basis, and (IV) a gender focused rural road maintenance program. The primary objective of the roads is to provide all weather access to administrative villages or to link with higher level roads.

Output 3: Institutional development. This output will address the limited implementation capacity of PMG. A project management consultant will be recruited to assist the PMG to implement and monitor the project in accordance with ADB procedures. The project will finance a 3-year training program ($400,000 for 40 person- months) for international and domestic training in financial and project management, road maintenance engineering, road maintenance practices, road safety, environmental management, social safeguards management, and wildlife trafficking and human and drugs trafficking enforcement.

The project affected area1 covers the nine counties of Pu’er city but not Simao district. The nine counties are Ning’er Autonomous County of Hani and Yi People, Mojiang Autonomous County of Hani People, Jingdong Autonomous County of Yi People, Jinggu Autonomous County of Dai and Yi People, Zhengyuan Autonomous County of Hani and Lahu People, Jiangcheng Autonomous County of Hani and Yi People, Menglian Autonomous County of Dai, Lahu and Wa People, Lancang

1 Including land acquisition, house demolition and rural road construction.

Autonomous County of Lahu People, and Ximeng Autonomous County of Wa People. Details of the affected area are shown from Table 1.1-2 to Table 1.1-4.

Table 1.1-2 Land Acquisition and House Demolition of NJ Road2

Affected Resettlement House Demolition Township/ Permanent Land Temporary Land Area of House County Administrative Town Occupation (ha) Occupation (ha) Demolition(m2) Villages Households Population Households Population

Minzheng 63 241 3.56 1 4 250

Banhai 107 411 9.19

Manlian 181 717 13.17 8 33 2,000

Xinping 262 1070 16.07 3 13 750 Ning’er Taida 4 21 0.25

Ning’er Xishitou 115 467 6.21

Wenquan 140 566 42.24

Yuhe 12 60 1.24

Heping 243 984 30.35

Mengxian Qianle 57 234 1.39 0 0 0

Anning 95 370 3.33 13 56 3,250

2 Revised according to the Updated Report on the Resettlement Plan of Ning’er-Jiangcheng-Longfu Road approved by ADB in June 2017.

Xuande 196 793 9.12 16 67 4,000

Yalu 162 646 24.16 8 33 2,000

Xianren 154 618 18.34 19 80 4,750

Liming Wangjie 114 457 19.81 6 25 1,750

Tuanshan 187 758 15.61 20 90 6,000

Shuicheng 218 919 35.06 55 190 4,655.36 Baozang Banhe 107 329 11.66 43 148 1,200

Jiangbian 257 941 34.43 42 151 3,447.32

Jiangcheng Menglie Niuluo 87 180 31.03 44 186 3,544

Dazhai 178 757 58.93 25 92 1,024.4

Basan 62 198 12.06 17 59 810.28 Qushui Nuna 65 178 9.59 4 15 700.02

Total 3,066 11,915 406.79 324 1,242 4,0131.38

Table 1.1-3 Land Acquisition and House Demolition of MM Road

County Resettlement House Demolition

Affected Township/ Permanent Land Temporary Land Area of House Administrative Households Population Households Population Town Occupation (ha) Occupation (ha) Demolition(m2) Villages

Mangzhang 29 106 7.80 3 12 252 Nayun Dengzhan 5.27

Paliang 85 366 39.62 10.18 47 189 4,858

Mengma 71 378 21.84 9.09 18 53 2046

Mengma He’an 11 61 2.36 2.36

Manghai 72 353 17 9.47 9 30 588

Menglian Meng’a 166 750 19.51 12.08 70 242 13,788

Mengma Tea

Company

Menglian State- 36 99 7.19 18 36 828 run Farm Companies Luoxiaohai Rubber 1 5 4.64 1 5 5600 Production Factory

Mengma Rubber - - 1.42 Company

Total 471 2,118 121.38 48.45 166 567 27,960

Table 1.1-4 Affected Area of 30 Rural Roads

County Township/Town Administrative Villages Road Name Mileage (km) Road Pavement Note

Yayi Luoshitang Luositang Road 29.2 CB/Prefabricated Concrete Blocks

Mojiang Sinanjiang Guangfeng, Xiqi Xiqi Road 40.2 C/Cement Concrete

Xin’an Longkai Longkai Road 14.3 C/Cement Concrete

Sub-total 83.7

Jinggu, Fengshan Wenshan, Wenshao Jingfeng Road 38.75 C/Cement Concrete Jinggu Minle Minle, Taozishu, Gahu Minxiu Road 32 C/Cement Concrete

Sub-total 70.75

Chang’an Chang’an Road 33.02 A/Bituminous Concrete Land Acquisition Zhenyuan Zhentai Shahe Shahe Road 14.4 C/Cement Concrete

Wenxing Wenxing Road 19 C/Cement Concrete Land Acquisition

Shanjie Shanjie Road 10.18 C/Cement Concrete Land Acquisition

Yuhe Yuhe Road 15.1 C/Cement Concrete

Anban Luojia Luojia Road 12.74 C/Cement Concrete

Wenli Wenli Road 22.5 C/Cement Concrete

Sub-total 126.94

Zhonghui, Nanwang Zhonghui Road 22.6 C/Cement Concrete Jiangcheng Jiahe Longma, Zhonghui Longzhong Road 33.7 C/Cement Concrete

Sub-total 56.3

Fudong Nadong Nadong Road 12.13 C/Cement Concrete

Nanlie Nanlie Road 12.82 C/Cement Concrete Laba Lancang Yintong Yintong Road 9 C/Cement Concrete

Zhutang Ganhe Ganhe Road 11.3 C/Cement Concrete

Wendong Duoyishu Duoyishu Road 14.4 C/Cement Concrete

Sub-total 59.65

Ximeng Lisuo Nankang Nankang Road 13 C/Cement Concrete

Lisuo Lisuo Road 10.5 C/Cement Concrete

Yongbuluo Yongbuluo Road 14.9 C/Cement Concrete Zhongke Galou Galou Road 12 C/Cement Concrete

Wenggake Yingla Yingla Road 11.3 C/Cement Concrete

Mengka Banzhe Banzhe Road 4.6 C/Cement Concrete

Sub-total 66.3

Menglao Menglao Road 9.9 C/Cement Concrete Wenlong Yichang Yichang Road 10.46 C/Cement Concrete

Jingdong Xinping Xinping Road 10.92 C/Cement Concrete

Longjie Heshao Heshao Road 13.3 C/Cement Concrete

Nan’an Nan’an Road 28.9 A/bituminous concrete

Sub-total 73.48

Total 537.12

The administrative areas (counties, towns/townships and administrative villages) covered by this monitoring are still in line with the monitoring of 2018 3 , with no increase in the area of land acquisition and house demolition as well as the number of households and population affected.

1.2 Objectives of Project Design

The project focuses on improving the transport condition of rural and border areas of Pu’er and regional road network, and promoting regional integration and trade with neighboring countries. Performance objectives and monitoring framework is shown in table 1.2-1, monitoring framework of EMDP in table 1.2-2 and GAP in table 1.2-3. The above three have been monitored at the same time.

Table 1.2-1 Project Design and Monitoring Framework

Data Sources Performance Targets and Indicators Design Summary and Reporting Assumptions and Risks with Baselines Mechanisms

Impact Value of trade at Meng’a and Longfu Yunnan Pu’er Assumptions border crossings increased 100% by Statistical Regional 2023 compared with 2013 ($340 million Yearbook Supportive trade integration and and $904,000, respectively) agreements established trade between between PRC and Yunnan Pu’er and Border crossings by vehicles and people neighboring countries neighboring between Myanmar at Meng’a (219,700 PRC Customs countries is and 998.700, respectively in 2013) and Office enhanced. PRC and between Viet Nam and PRC at Appropriate approvals Longfu increase 100% by 2023 are issued for the compared with 2013 Survey development of project Poverty rate in Pu’er declines from border crossing sites 37.1% in 2013 to 25% by 2023 (poverty line CNY 2,300) Risks Expected economic growth fails to materialize

Outcome Average travel time between villages Before and after Assumptions and townships decreases from 42 survey Accessibility Roads are maintained

3 There is increase in the area of rural collective land to be acquired and rural houses to be demolished by NJ Road compared with the original resettlement plan according to the Updated Report on the Resettlement Plan of Yunnan Pu’er Regional Integrated Road Network Development Project (Subproject: Ning’er-Jiangcheng-Longfu Road ) approved by ADB in May 2017.

between rural and minutes in 2013 to 30 minutes by 2020 border areas and the regional Average number of trips between Before and after Risks villages and townships for rural survey transport network Lack of long-term in Yunnan Pu’er is households increases from 5.2 trips per month in 2013 to 7 trips per month by sustainable asset improved management regime 2023 EA project Travel time by car between Ning’er and monitoring Longfu border reduced from 8 hours to 5 reports hours by 2020

Vehicle operating costs/km on project Traffic police roads reduced data

Outputs Longfu road upgraded to paved class III- ADB review Assumptions IV standards by 2019 missions and 1. Regional roads progress reports Counterpart funding development 48.75 km of MM Road upgraded to sufficient and available class II-I road by 2018 in a timely manner

Meng’a Material Transit Centre EA project complete by 2018 completion report Good coordination 3-star China RAP rating achieved on between EA, IA and regional roads customs agency

At least 20% women employed for ADB review unskilled construction jobs missions and progress reports Risks At least 50% of available unskilled jobs for ethnic minorities, women, poor, and Difficulties in complying people affected by land acquisition with ADB procurement China RAP procedures Of the affected people: (i) 50% of report women receive livelihood restoration training, and (Ⅱ) new house titles contain the names of both the men and

women householders

ADB review missions and progress reports

2. Rural access 600 km of roads upgraded to paved class ADB review improvement Ⅳ standards by 2017 missions and progress reports Spot improvements on 1,200 km (or CNY24 million invested in) of village access roads by 2017(at least 30% of unskilled jobs are for women) EA project completion

At least 50% of available unskilled jobs report for ethnic minorities, women, poor, and people affected by land acquisition Five pilot public bus transport routes servicing the project rural roads ADB review implemented by 2017 missions and Gender focused community rural road progress reports performance-based maintenance program implemented on 600 km of rural roads (at least 75% of the 42,000 days of employment generated will be performed by women) ADB review missions and progress reports

ADB review missions and progress reports

3. Institutional 40 person-months of domestic and ADB review development international training provided to staff of missions and PMG and PMTB by Q4 2018; with 8 progress reports person months or alternatively 20% of the total training budget for women EA project completion 20% of PMO staff are women report

EA and IA staff trained on social safeguards and gender requirements ADB review Gender sensitivity training is conducted missions and for PMG staff with at least 50% male progress reports participation

ADB review missions and progress reports

Activities with Milestones Inputs

1. Regional roads design Loan 1.1 Conduct detailed design of Ning’er-Longfu road, safety audit (Q3 2014); ADB: $200.0 million construct civil works, pre-open safety audit (Q3 2018) Government: $397.7 1.2 Conduct detailed design of MM Road, safety audit (Q3 2014); construct civil million works, pre-open safety audit (Q3 2017)

1.3 Update Resettlement Plan and EMDP(Q1 2015)

1.4 Complete land acquisition and resettlement (Q1 2016)

1.5 Complete construction phase monitoring and implementation of environmental management, resettlement and EMDP(Q3 2018)

1.6 Completion of Material Transit Centre at Meng’a Port (Q3 2017)

2. Rural roads design 2.1 Complete detailed design of rural roads, safety audit (Q2 2015)

2.2 Complete civil works, pre-open safety audit (Q12017) 2.3 Complete construction phase monitoring and implementation EMDP and, if needed, environmental management and Resettlement Plan (Q1 2017)

2.4 Implement transport services pilot, rural road maintenance and spot improvement agreed tasks (complete by Q2 2018)

2.5 Review result of 2.4 (Q4 2018)

3. Project Management Office (PMO) 3.1 Create a PMO with at least 6 full-time qualified professionals (by Q3 2014)

3.2 Establish GRM (by Q3 2014)

3.3 Establish contracts with capacity building consultants for safeguards, gender and trafficking (by Q4 2014)

3.4 Provide training on specific competencies (complete by Q4 2016)

3.5 Implement and monitor R P, EMDP, GA P (Q3 2019)

Note: quoted from PAM and revised according to Progress Report Q2 2016.

Table 1.2-2 Monitoring Framework of EMDP

Level II Level I Indicators Level III Indicators Indicators

Basic Data of The number of townships and administrative villages, land area, the Project cultivated land area, total population, rural population, and ethnic Socioeconomic Area minority population. Development Economic GDP, fiscal revenue, per capita net income of rural population, Development and per capita retail sales of social consumer goods. Indicators

Industry Output of the three industries, and production of grains, oil crops, Development vegetables, main cash crops and characteristic crops

Income of hired farmers;

Construction materials purchased locally;

Whether it is clearly stated in tender documents and contracts that over 50% of non-technical work should be assigned to ethnic minorities, women, the poor and other people in the project Direct affected area; Economic Benefit The quantity of small machinery leased/purchased and the amount of money spent;

The number of houses/sites rented and the amount of money spent; and

Whether local women are organized to cater for construction workers.

Construction How many days of employment are created (42,000 days); Impact Total number of employed workers/income earned, including the Construction number of local residents, women and minority members/income and Other earned; and Services by Local People The number of people employed as non-technical workers, and the percentage of minority people/women and the income they get.

Whether the construction affects local production and life;

Whether it damages local irrigation, drainage, roads, land and Elimination relevant equipment and facilities; of Adverse Whether the construction pollutes local water sources, produces Impact noises, dust and garbage to people living in surrounding areas and how to solve the problem; and

Whether temporary land occupation is recovered.

The distribution, income and expenditure of ethnic minorities, the Ethnic Ethnic Minorities number of migrant workers, the number of agricultural products Minorities and Poverty sold and purchased, and the amount of crop processed

Stricken Poverty Poverty rate; impoverished people in each district; per capita net population Stricken income; number of poverty stricken villages; and average Population household income.

The upgrading of NJ Road;

The upgrading of MM Road;

What facilities have been built in Meng’a Material Transit Center, Direct Impact annual trade volume/amount and the kinds of commodity; of Highway Construction The upgrading of 30 rural roads (total length of 537 km); The hardening of village roads (total length 1,500 km);

Total population benefiting from the road upgrading and the percentage of ethnic minority population

The progress of opening five public bus routes;

The number of road safety facilities installed (including traffic signs, speed bumps and crosswalk);

The number of trainings on road safety;

The number of handouts on road safety awareness to the public; Transport the change of transport and freight cost; Condition The volume of traffic flow and the number of passengers;

The increase of money input for road maintenance, of financial subsidy and of the ratio of road maintenance expenditure; Degree of Transport The number of traffic accidents; Improvement The number of passenger stations improved;

Is road maintenance by spontaneous activities or organized ones;

Has trainings on road maintenance been conducted;

Has tools, safety equipment and construction materials been provided for road maintenance;

How many job opportunities have been provided by road maintenance;

The involvement of women and poor people;

The increase of travel frequency of local people;

How many rural and functional transport services been introduced;

Transport service to school-age children;

Is all-weather traffic available; and

Pilot public bus service site at the level of townships and villages.

To analyze a case which transforms the travel methods and brings Case Study economic benefit (trade development) to farmers after road construction (improves transport connectivity and road safety)

The building of local schools, hospitals, banks and police station; Benefits the building of collecting station for coffee beans and tea leaves

Trainings on non-agricultural production skills;

Trainings on Women's employment skills/access to Women's employment, changes in income and employment;

Technical trainings transport, border trade and tourism services;

Farmers’ Trainings on growing techniques of cash crops; Impact on Rural Skill Production and Improvement Trainings on economic development; Life Trainings on law, labor contracts and rights;

The number of the above trainings and the involvement of villages, ethnic minorities and women; and

Job opportunities of non-agricultural production.

Micro Loan The number of ethnic minority borrowers; and Assistance The purpose of the loans (case study).

Case study 1-2 farmer trainees, or a case of changing income source

The impact of land acquisition;

Impact of Comparison between original plan for land acquisition and actual Land acquisition, land situation; house demolition Acquisition and resettlement and House Affected housing area; Demolition Protection of cultural heritage and other facilities of ethnic minorities; and

Affected land area and affected households;

Comparison between the actual expenditure of compensation and the budgetary estimate; Resettlement The situation of land acquisition, house demolition and and rebuilding; livelihood restoration Measures, results and problems for livelihood recovery; special assistance to vulnerable groups (minimum living allowance, pension insurance and other)

The length of irrigation and drainage pipes, and the ratio of reconstruction; Infrastructure The number of power systems and other facilities, and the ratio of Restoration reconstruction; and

New infrastructure.

Cases where farmers’ needs are satisfied through Case Study resettlement/housing are solved for the needy

Preventing damage to ancient trees and relics;

Improving culture facilities in minority villages;

Celebrating and restoring ethnic holidays;

The number of approved projects for ethnic cultural relics Cultural protection/ the number of projected completed; Protection, Tourism, and Tourists sites in ethnic villages Foreign Trade Improvement of village roads and other infrastructure facilities Promotion Other Impacts How may commercials are made for tourist destinations；

The number of tourists/the amount of tourism income;

How many jobs are created; and

Foreign trade volume.

How many propaganda materials are there and how many times Preventing are they handed out (posters/posters in the languages of ethnic HIV/AIDS minorities); Spread How many condoms are handed out;

How many trainings are organized by the Center for Disease Control and Prevention (how many trainings are for staff and management personnel and how many are for specialized organizations and villagers), and how many trainees are there (including women).

Prevention and control of malaria and tuberculosis;

Lowering the the number of nets provided; Risk of How many mosquito nets are provided; Infectious Diseases How many times are workers tents sprayed; and

How many workers are quarantined and treated for tuberculosis

Combating the The number of monitoring stations; Trafficking of Cases where women association organize awareness raising Human, Drug activities and information analysis; and and Other Prohibited The number of posters and brochures Items

Re-checking the Problems Identified in Problem Tracking Have the problems been solved? Previous Monitoring Report

Table 1.2-3 Gender Action Plan (GAP)

Project Outputs Indicators/Targets of Activities/Performance Responsibility

Output 1: Regional roads Employ at least 20% local females for PTMB will appoint a staff nontechnical construction works development member (female) as focal Ensure equal pay for equal job between males and point to implement females monitor and report on Road safety: Community consultations and these activities awareness building on road safety issues targeting women (50% participants) 2015–2018 At least 50% women affected by land acquisition or house demolition participate on income Gender specialist, design

generation skills such as cash-crop growing and institute, contractors, and non-farming skill training program (included in Resettlement Plans). ACWF will ensure implementation and Gender responsive HIV/AIDS/STI prevention consultation and awareness building (minimum of monitoring of these 50% female participants) activities.

Gender responsive human and drug trafficking prevention consultation and awareness building (minimum of 50% female participants) Women trainers of gender sensitive training especially on HIV/AIDS and Trafficking training

Output 2: Rural access Employment at least 20% local women in PMO gender focal staff unskilled construction jobs on rural roads improvement Ensure equal pay for female and male workers 2015–2018 who undertake equal value of work (monitored through contractors’ payroll) Gender specialist, design institute, contractors, and Road safety: Community consultations and awareness building on road safety issues targeting ACWF will ensure women (50% participants) implementation and Piloting public transport services: The output will monitoring of these pilot village bus services that will mostly benefit activities. the village women. Gender pattern of use of public transport will be periodically monitored. Improved village transport infrastructure: Improvement of village roads by forming “road maintenance groups” mainly consisting of women (75%). 75% of the total 42,000 days of employment generated to go to women Rural Road maintenance for two years post-operation (Dehong experience).

Output 3: Institutional Recruit gender specialist to support GAP EA/IA, gender specialist implementation strengthening and capability building Appoint a project staff (gender focal point) responsible for gender mainstreaming and GAP implementation and reporting Provide GAP orientation/training to key EA/IA staff Gender sensitivity training for staff of project related government agencies (minimum of 50% men participants) Collect sex-disaggregated data on project impacts

Gender responsive Ensure at least 50% female participants in public consultation resettlement related measure Include 50% women in livelihood restoration training for affected people Ensure that women and men are equally entitled to new house registration, and both names are reflected on titles Provide additional support to women headed households

Note: quoted from PAM.

1.3 Objectives of Performance Evaluation and Monitoring

In order to ensure Yunnan Pu’er Regional Integrated Road Network Development Project progress well and its objectives and benefits be delivered, the monitoring group has conducted external monitoring on the performance of the project with a scientific system for five consecutive years. The group has monitored and evaluated the indicators, issues and objectives of the project so as to reflect the development of project objectives and related issues and the fulfillment of performance objectives, and to make objective evaluation on whether project outcomes meet the intended targets. Meanwhile, existing problems can be identified timely, experience and lessons be drawn and targeted solutions be proposed. Besides, performance evaluation helps EA at all levels improve their weakness in project implementation and enhance project management and performance.

To ensure the minority groups in the direct affected areas of Yunnan Pu’er Regional Integrated Road Network Development Project share equal benefits, and to mitigate the negative impacts through a series of measures, the monitoring group has conducted external monitoring for EMDP to guarantee the affected minority groups benefit from it. The external monitoring is mainly for Hani, Yi, Lahu, Wa and Dai people, who take up 71% of the total population in the directly affected area of the project.

According the monitoring plan, the performance monitoring of the project consists of five phases. As the forth one, the current monitoring investigates and records the 20

project status by September 2019, and the statistic data are of 2018 4 . Related construction works and activities are for the period ending the third quarter of 2019 and have been compared with those of the previous year and of the baseline for the monitoring and evaluation.

1.4 Methods of Monitoring and Evaluation

Both qualitative and quantitative methods were used in the performance evaluation, including literature research, comparative analysis, cost-benefit analysis, participatory rapid assessment (PRA), target evaluation method, expert evaluation and public evaluation. The main investigative tools used in the monitoring process are listed in Table 1.4-1.

Table 1.4-1 Methods Used in Project Monitoring

No. Methods Use

1 Collecting and reviewing project information and data needed for Second Hand performance evaluation, including those from PMO, construction Material headquarter, relevant departments at the county level; other special Collection and monitoring and consulting organizations, reports and documents; and Analysis published yearbooks and bulletins.

2 Communicating and discussing with PMOs of city and country level (including the construction headquarter), relevant departments at all Stakeholders levels (transportation, poverty alleviation, ethnic minorities, human Meeting resources and social security, science and information and public security), and village leaders in order to follow up with project implementation and impact.

3 Choosing key people (village cadres, the elderly, and the affected Key People household representatives) as key information sources, and inquiring Interview through meetings and interviews relevant information for evaluation.

4 Household Designing suitable sampling methods and conduct questionnaire survey Questionnaire with leaders and folks in the project area in order to learn about their

4 As of the end of the report, Statistic Yearbook of Pu’er (2019) has not been released. The relevant statistical data is from Statistic Yearbook of Yunnan (2019), Leaders’ Handbook of Yunnan (2019), Leaders’ Economic Work Manual of Pu’er (2019) and National Economic and Social Development Statistical Bulletin of Pu’er City (2018).

Survey understanding about the project and the outputs of the project.

The focus is to explain/analyze whether the changes following the project 5 Question Tree are related to the project, what the relations are and how they are related.

Checking the visible project outputs like houses and infrastructure Field 6 facilities in order to review the feedback from group discussions and Observation household interviews.

1.5 Designing Monitoring Framework

Before the evaluation and monitoring started, the group designed indicator systems according to the performance objective and monitoring framework in the PA M, EMDP and GAP (Table 1.5-1, Table 1.5-2 and Table 1.5-3). The monitoring framework is the same as the last one, with no change of indicators.

Table 1.5-1 Indicator System for Performance Evaluation

Evaluation Level I Level Ⅱ Type of Level Ⅲ Indicators Source of Indicator Standard Indicators Indicators Indicator

The value of cross-border trade at Meng’a Port Quantitative Monitoring Framework

The number of entry-exit vehicles at Meng’a Port Quantitative Monitoring Framework Enhanced The number of entry-exit personnel at Meng’a Port Quantitative Monitoring Framework regional Trade Status integration The value of cross-border trade at Longfu Port Quantitative Monitoring Framework Impact and trade with The number of entry-exit vehicles Longfu Port Quantitative Monitoring Framework neighboring countries The number of entry-exit personnel at Longfu Port Quantitative Monitoring Framework

Poverty Poverty rate of Pu’er (%) Quantitative Monitoring Framework Alleviation

The time spent from villages to town/townships (minutes) Quantitative Monitoring Framework

The times of round-trip between villages and town/townships by Transport Quantitative Monitoring Framework Outcomes Outcomes rural families Accessibility The time spent from Ning’er to Longfu border by mini bus (hours) Quantitative Monitoring Framework

Running cost of vehicles per km on project roads (yuan/km) Quantitative Monitoring Framework

The incidence of car crash in the counties covered by the project Quantitative Monitoring Framework (per thousand people)

The incidence of road death in the counties covered by the project Quantitative Monitoring Framework Transport Safety (per thousand people)

The rate of road accident per one hundred vehicle Quantitative Added

The rate of road death per one hundred vehicle Quantitative Added

Condition of NJ Road Schedule Monitoring Framework

Condition of MM Road Schedule Monitoring Framework

Construction of the Raw Material Shipping Center at Meng’a Port Schedule Monitoring Framework Road Construction The percentage of females in total nontechnical jobs Level

Regional The percentage of nontechnical jobs provided to minority members, Outputs Roads women, the poor and people affected by land acquisition and house Level Monitoring Framework Development demolition

Safety levels of regional roads Level Monitoring Framework

The number of road safety signs Quantitative Added Road Safety The number of effective measures to limit speed Quantitative Added

The number of trainees on road safety Quantitative Monitoring Framework

Progress of resettlement Schedule Monitoring Framework

The number of people receiving skill trainings Quantitative Monitoring Framework

The percentage of female trainees on livelihood recovery Level Monitoring Framework Resettlement Both husband and wife are registered as the owners of the new Quantitative Monitoring Framework house.

Resettlement for land acquisition is completed. Schedule Monitoring Framework

The number of road subcontracts that have been upgraded Quantitative Monitoring Framework

The length of village roads that have been improved Quantitative Monitoring Framework

The proportion of available nontechnical jobs provided for ethnic minorities, women, the poor, and people affected by land Level Monitoring Framework Road acquisition Improvement Rural Access The number of days when women join road maintenance out of the Improvement Level Monitoring Framework total days of road maintenance for the 600 km rural roads

The percentage of women employed in the 1,200 km village road Quantitative Monitoring Framework improvement

The proportion of village roads maintained (number or length) Quantitative Monitoring Framework Road Maintenance, The introduction of five new bus routes at the pilot site Quantitative Monitoring Framework

Transit Point Improvement and The proportion of women employed in community rural roads Level Monitoring Framework Transport maintenance (at least 75%) Services

PMG as PEO sets up a leading group for project overall Non-quantitative Monitoring Framework implementation and supervision.

PMO should have at least six full-time staff, and 20% of them Non-quantitative Monitoring Framework should be women. Institution Setup PMTB as PIO and management organizations at all levels fulfills and Project their responsibilities and completes tasks in accordance with their Non-quantitative Monitoring Framework Management respective management roles

Road safety research institute introduces safety measures to Institutional Non-quantitative Monitoring Framework Development improve road safety.

Grievance Redress Mechanism is established. Non-quantitative Monitoring Framework

The number of trainees from PMG and PMTB, and the percentage Quantitative Monitoring Framework of female participants

PIO and PEO staff receive trainings on social security and gender Trainings Non-quantitative Monitoring Framework needs (exact training dates)

At least 50% of the participants of gender sensitive training for Quantitative Monitoring Framework government employees were male.

Detailed design and safety audit of NJ Road Schedule Monitoring Framework

Civil engineering construction of NJ Road Schedule Monitoring Framework

Regional Road Design and safety audit of MM Road Schedule Monitoring Framework Design Civil Engineering construction of MM Road Schedule Monitoring Framework

Complete the supervision and implementation of environmental Schedule Monitoring Framework management, resettlement and EMDP

Detailed design and safety audit of Rural Roads Schedule Monitoring Framework

Progress of Civil engineering construction of Rural Roads Schedule Monitoring Framework Activities Major Complete the supervision and implementation of EMDP during Activities Schedule Monitoring Framework road construction stage

Implement and review pilot projects of transport services, rural road Rural Roads Schedule Monitoring Framework maintenance and improvement Design Sign consultation contacts on safety and security, gender and drug Schedule Monitoring Framework trafficking

Special skill trainings organized every quarter Schedule Monitoring Framework

Implement and monitor Resettlement Plan, EMDP and Gender Schedule Monitoring Framework Action Plan.

Table 1.5-2 Project Monitoring Framework of EMDP

Level I Indicators Level II Indicators Level III Indicators

Basic Data of the Project The number of townships and administrative villages, land area, cultivated land area, total population, rural Area population, and ethnic minority population.

Socioeconomic Economic Development GDP, fiscal revenue, per capita net income of rural population, and per capita retail sales of social consumer Development Indicators goods.

Industry Output of the three industries, and production of grains, oil crops, vegetables, main cash crops and Development characteristic crops

Income of hired farmers;

Construction materials purchased locally;

Whether it is clearly stated in tender documents and contracts that over 50% of non-technical work should be Construction Direct Economic Benefit assigned to ethnic minorities, women, the poor and other people in the project affected area; Impact The quantity of small machinery leased/purchased and the amount of money spent;

The number of houses/sites rented and the amount of money spent; and

Whether local women are organized to cater for construction workers.

How many days of employment are created (42,000 days);

Total number of employed workers/income earned, including the number of local residents, women and Construction and Other minority members/income earned; and Services by Local People The number of people employed as non-technical workers, and the percentage of minority people/women and the income they get.

Whether the construction affects local production and life;

Whether it damages local irrigation, drainage, roads, land and relevant equipment and facilities; Elimination of Adverse Impact Whether the construction pollutes local water sources, produces noises, dust and garbage to people living in surrounding areas and how to solve the problem; and

Whether temporary land occupation is recovered.

The distribution, income and expenditure of ethnic minorities, the number of migrant workers, the number of Ethnic Minorities Ethnic Minorities agricultural products sold and purchased, and the amount of crop processed and Poverty Poverty rate; impoverished people in each district; per capita net income; number of poverty stricken villages; Stricken population Poverty Stricken Population and average household income.

The upgrading of NJ Road;

The upgrading of MM Road;

What facilities have been built in Meng’a Material Transit Center, annual trade volume/amount and the kinds Transport Direct Impact of Highway of commodity; Condition Construction The upgrading of 30 rural roads (total length of 537 km);

The hardening of village roads (total length 1,500 km);

Total population benefiting from the road upgrading and the percentage of ethnic minority population

The progress of opening five public bus routes;

The number of road safety facilities installed (including traffic signs, speed bumps and crosswalk);

The number of trainings on road safety;

The number of handouts on road safety awareness to the public; the change of transport and freight cost;

The volume of traffic flow and the number of passengers;

The increase of money input for road maintenance, of financial subsidy and of the ratio of road maintenance expenditure;

The number of traffic accidents;

Degree of Transport The number of passenger stations improved; Improvement Is road maintenance by spontaneous activities or organized ones;

Has trainings on road maintenance been conducted;

Has tools, safety equipment and construction materials been provided for road maintenance;

How many job opportunities have been provided by road maintenance;

The involvement of women and poor people;

The increase of travel frequency of local people;

How many rural and functional transport services been introduced;

Transport service to school-age children;

Is all-weather traffic available; and

Pilot public bus service site at the level of townships and villages.

To analyze a case which transforms the travel methods and brings economic benefit (trade development) to Case Study farmers after road construction (improves transport connectivity and road safety)

The building of local schools, hospitals, banks and police station; the building of collecting station for coffee Benefits beans and tea leaves

Trainings on non-agricultural production skills;

Trainings on Women's employment skills/access to Women's employment, changes in income and employment;

Technical trainings transport, border trade and tourism services; Impact on Rural Trainings on growing techniques of cash crops; Production and Farmers’ Skill Improvement Life Trainings on economic development;

Trainings on law, labor contracts and rights;

The number of the above trainings and the involvement of villages, ethnic minorities and women; and

Job opportunities of non-agricultural production.

The number of ethnic minority borrowers; and Micro Loan Assistance The purpose of the loans (case study).

Case study 1-2 farmer trainees, or a case of changing income source

The impact of land acquisition;

Comparison between original plan for land acquisition and actual situation; Impact of land Acquisition Affected housing area; and House Demolition Protection of cultural heritage and other facilities of ethnic minorities; and

Affected land area and affected households; Land acquisition, Comparison between the actual expenditure of compensation and the budgetary estimate; house demolition and resettlement Resettlement and livelihood The situation of land acquisition, house demolition and rebuilding; restoration Measures, results and problems for livelihood recovery; special assistance to vulnerable groups (minimum living allowance, pension insurance and other)

The length of irrigation and drainage pipes, and the ratio of reconstruction; Infrastructure Restoration The number of power systems and other facilities, and the ratio of reconstruction; and New infrastructure.

Case Study Cases where farmers’ needs are satisfied through resettlement/housing are solved for the needy

Preventing damage to ancient trees and relics;

Improving culture facilities in minority villages;

Celebrating and restoring ethnic holidays;

The number of approved projects for ethnic cultural relics protection/ the number of projected completed;

Cultural Protection, Tourism, Tourists sites in ethnic villages and Foreign Trade Promotion Improvement of village roads and other infrastructure facilities

How may commercials are made for tourist destinations；

Other Impacts The number of tourists/the amount of tourism income;

How many jobs are created; and

Foreign trade volume.

How many propaganda materials are there and how many times are they handed out (posters/posters in the languages of ethnic minorities);

How many condoms are handed out; Preventing HIV/AIDS Spread How many trainings are organized by the Center for Disease Control and Prevention (how many trainings are for staff and management personnel and how many are for specialized organizations and villagers), and how many trainees are there (including women).

Prevention and control of malaria and tuberculosis;

the number of nets provided; Lowering the Risk of How many mosquito nets are provided; Infectious Diseases How many times are workers tents sprayed; and

How many workers are quarantined and treated for tuberculosis

The number of monitoring stations; Combating the Trafficking of Human, Drug and Other Cases where women association organize awareness raising activities and information analysis; and Prohibited Items The number of posters and brochures

Re-checking the Problems Problem Tracking Identified in Previous Have the problems been solved? Monitoring Report

Table 1.5-3 Monitoring Indicators of GAP

Level I Indicators Level II Indicators Level III Indicators

Decrease in the unbalance in the Gender Fairness in employment rate of different The number of jobs offered for females, female applicants and local female employees (≥20%) Employment genders (ensure the percentage of female employees)

Gender fairness in employment,payment and Equal payment among different genders supervision on them

Ensure the number of jobs of maintenance work of village- The number of jobs offered to females, female applicants, the percentage of at least 75% of female level transportation infrastructure employees in “village road maintenance group” offered to females

Ensure the number of jobs of maintenance work created in the Among the 42,000 jobs created in the 2 years after the operational period of the project, 75% were jobs of 2 years after the operational road maintenance work for females. period of the project

Work in the pilot project of Periodical supervision on the gender mode of public transportation service public transportation service

Gender ratio of trainings on At least 50% of the participants to the trainings on livelihood restoration were females. livelihood restoration Gender Fairness to Affected Trainings organized for females Population and affected by land acquisition and At least 50% of the affected female population participated in the trainings Policy of Gender house demolition Preference extra help to female-supported Allowance, decrease/free taxation, free life materials, and other forms families

Ensure equal treatment on resettlement among different Both names of the couple was written on the property ownership certificate of the houses. genders

Percentage of female employees At least 6 full-time employees, and 20% of the total staff are females. in the staff number of PMO

Trainings on gender sensitivity organized for workers in At least 50%of the participants were male. governmental department related to this project

Female trainers of gender Organization Try to ensure female trainers for trainings about HIV/AIDS and illegal trafficking enhancement and sensitivity trainings capability building nominate an employee as contact for gender issues, in charge of gender mainstreaming, the Hire experts on gender implementation of GAP and report

Pay attention to female At least 50%of the participants were female. participants in public consulting

Community consulting and awareness enhancement for At least 50%of the participants were female. females on road safety

Gender-responsive consulting and awareness enhancement on At least 50% of the females participate. the sexual transmission of HIV/AIDS

Gender-responsive consulting and awareness enhancement on At least 50% of the females participate. human/drug trafficking

1.6 Methods of Data Collection The data of this monitoring are from statistic sources (including data from statistic departments), PMO of Pu’er City and the site visit and sample survey by the monitoring group. The three categories of data complement and confirm each other.

Statistic data are from bulletins, work reports and figures provided by statistic authorities and relevant departments of Pu’er city and the nine counties in its jurisdiction. The data reflect the overall situation of the project affected area while the data from the PMO show the actual progress in project implementation. Sample survey data are collected from questionnaires during household visits and thus demonstrate the impacts experienced by the subjects.

1.7 Survey Sample Selection

1.7.1 Survey Goals

The survey aims at learning about the situation of living and production of local residents in the project area, their perception of the project and their feedback, so as to contribute to the smooth implementation of the project.

1.7.2 Survey Objects

Survey objects are those who are involved, affected and benefit from the project, including EA/IA, governments and relevant functional departments at all levels, construction entities, villagers along the project corridor and households involved in land acquisition and relocation (farmers or organizations). Two kinds of questionnaires were used in the survey: one was for the residents and other personnel in the project area, and the other was for the administrative villages.

1.7.3 Survey Methods

The monitoring group made investigations by visiting and interviewing PMO, governments and relevant functional departments and by making questionnaire survey on villagers along the project roads and households (farmers or organizations) affected by land acquisition and house demolition.

1.7.4 Sample Selection

Given the specialty of the project, the monitoring group used multi-stage and interval sampling methods to choose sample villages from the affected area of MM Road, NJ Road and Rural Roads. From the sample villages, the group used simple random method to choose sample households to make questionnaire survey. The samples were selected according to the following principles: (1) the villages and townships directly or indirectly affected; (2) the habitat of ethnic minorities; (3) along the site of the highways; (4) poverty-stricken areas; and (5) households involved in land acquisition and house demolition. The sample area of the current monitoring remains the same as that of 2018 so that the data collected are comparable.

According to the principle of sampling survey, 16 administrative villages (including one company) in 10 towns/townships in five counties were chosen for questionnaire survey. MM Road (including Meng’a Material Transit Centre) covered two villages in one town/township in one county and one company, NJ Road six villages in five towns/townships in two counties, and Rural Roads seven villages in four towns/townships in two counties. A total of 16 village questionnaires and 450 household questionnaires were collected.

1.8 Monitoring Process The process of this monitoring is as follows:

No. Step Content

Identifying staffing, timeline, methods, requirements, targeted 1 Make Work Plan interviewees and ways of collecting their opinions.

Collect and Project documents at initial phase, project management manual, progress 2 Review reports, etc. Relevant regional statistical data, work reports and work Materials summary of the government and functional departments.

Agreeing on survey plan, designing face-to-face interviews, meetings and Make Plan for 3 question lists, and designing performance evaluation framework and Field Survey survey questionnaires.

4 Field Survey Making investigations and collecting opinions and information through meetings, questionnaires, interviews and observation. Ensuring extensive 41

and good representation of respondents, and ensure authenticity of the views collected by taking appropriate approaches. Sorting out questionnaires and interview records.

Analyze and Analyzing all the materials according to the monitoring framework, and 6 Demonstration making objective and fair judgment on project performance.

Draft Evaluation 7 Drafting evaluation report based on the collected information and analysis. Report

Revise the Revising the draft report by reconfirming basic data with PMO and adding 8 Report and improving supporting documents.

1.8.1 Site Investigation

1. Site Visit

From July to October 2019, the evaluation group visited key towns/townships and villages along NJ Road and MM Road to investigate project progress and resettlement situation, and held meetings at the headquarters of NJ Road and MM Road. The investigation sites included Heshao Village and Xinping Village of Longjie Town, and Yichang Village and Mengman Village of Wenlong Town, Jingdong County; Nanwang Village and Zhonghui Village of Jiahe Town, Longma Village and Shuicheng Village of Baozang Town, Jiangbian Village of Menglie Twon, Jiangcheng County; Meng’a Village and Mengma Village of Mengma Town, Menglian County; Menglian State-run Farm; and Xinping Village of Ning’er Town, Heping Villiage and Xuande Village of Mengxian Town, Wangjie Village of Liming Town, Ning’er County.

Picture 3.2-1 Site Visits of NJ Road

Picture 3.2-2 Site Visits of MM Road

Picture 3.2-3 Site Visits of Rural Roads (Jingdong)

1.8.2 Questionnaire Survey

1. Questionnaire Design

Two kinds of questionnaires were used: one for residents and the other for villages.

-- Resident questionnaire survey was made with rural residents and enterprise employees involved in NJ Road, MM Road and the 30 rural roads. The questionnaire covered living standard, living needs, economic options, travel options, travel scope, transport means and travel safety. The monitoring group evaluated the positive and negative impacts of the project on local people, mainly women, the poor, ethnic minorities and other vulnerable groups.

-- Village questionnaire was to investigate from village cadres such basic information of the sample villages like income, road, transport, production and life. Through the survey, the monitoring group developed a preliminary understanding on the perceptions, opinions and suggestions the residents along NJ Road, MM Road and Rural Roads had for the project, and on the situation of their life and production.

2. Sample Size Determination

This project covers nine counties. The sub-project of MM Road (including Meng’a Material Transit Center) involves one county, two towns/townships and six villages, as well as four enterprises; NJ Road Six towns/townships, two counties and 23 villages; and Rural Roads 18 town/townships, seven counties and 29 villages. Since the indicators in the questionnaires were the percentage of people with different views, it was important to determine necessary sample size according to estimated overall proportion.

In simple random sampling method, the formula for necessary sample size is:

n is the required sample size, and N is the total number.

is the standard normal distribution of quantile, and p0 is a rough estimation of P by experience (the proportion of sample with certain characteristics). When no information is available on the sample, the maximum variance is usually assumed, and the maximum value can be obtained by taking p0=0.5, 2 q0=1- p0=0.5, p0q0=p0-p0 .

When credibility is 95%, is 1.96. When the maximum absolute error d is 5%, =384. Since N>>n0, the necessary sample number for simple random sampling is:

=384

Considering the sample must be representative of the sub-projects and some questionnaires might not be answered, the group enlarged the sample to 450 households by 27 compared with the previous one.

Village questionnaire survey was conducted in parallel in administrative villages and companies and 16 village questionnaires were completed.

3. Sample Distribution

The three-stage isometric random sampling was used in this project. The first stage was to select counties, the second to select two village units out of the counties chosen in stage one, and the third stage to select randomly households for interview. Because the number of counties covered by MM Road and NJ Road was small, all of those counties were selected in order to ensure the representativeness of the two sub-projects. Then according to the population of resettlement, the PPS sampling was conducted to directly select village-level units. The result of distribution of sample is shown in table 1.8-1.

Table 1.8-1 Sample Distribution

Town Administrative Household Village Sub-projects Counties (ship)s Villages Samples Samples

Heshao 30 1 Longjie Xinping 30 1 Jingdong Wenchang 30 1 Wenlong Mengman 30 1 Rural Roads Nanwang 20 1 Jiahe Jiangcheng Zhonghui 20 1

Baozang Longma 20 1

Sub-total 180 7

Meng’a 30 1 Mengma Mengma 30 1 Menglian MM Road State-run Menglian Company 30 Farm

Sub-total 90 2

Ning’er Xinping 30 1

Heping 30 1 Ning’er Mengxian Xuande 30 1

NJ Road Liming Wangjie 30 2

Baozang Shuicheng 30 1 Jiangcheng Menglie Jiangbian 30 1

Sub-total 180 7

Total 450 16

4. Household Survey Outcomes

Among the 450 questionnaires collected, 21.11% of the households are impoverished and 67.56% belong to ethnic minorities. Demographic features of the interviewed households are listed in table 1.8-2. With the continuous advancement of poverty alleviation work in recent years, Pu’er City has achieved remarkable results in poverty alleviation, and the number of poor people has dropped significantly5 . The proportion of poor households in the sample households of NJ Road is low, and there is no sample of poor households in MM Road.

5 The changes of the poor population in Pu’er can be referred to in Table 2.1-3 Poverty Situation in the Project Area.

Table 1.8-2 Demographic Features of the Interviewed Households (%)

Indicators Rural Roads MM Road NJ Road Total Sample

Investigation Year 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

Poor 26.83 25 46.67 10.13 6.66 0 16.11 28.87 2.78 21.49 20.8 21.11 Poverty Level Normal 73.17 75 53.33 89.87 93.34 100 83.89 71.13 97.22 78.51 79.2 78.89

Han 29.27 30.5 27.22 17.72 21.95 25.56 27.22 31.8 41.11 30.58 32.13 32.44

Yi 9.15 20 47.22 5.06 8.94 5.56 17.78 12.13 10 14.05 17.42 24

Hani 45.12 48 25 2.53 3.25 1.11 48.33 48.12 30 28.37 27.83 22.22 Ethical Dai 16.46 1 0 36.71 37.4 65.56 0.56 1.26 12.22 15.7 11.09 18 Households

Lahu 0 0.5 0.56 2.53 4.07 0 1.11 1.26 2.22 1.1 1.81 1.11

Wa 0 0 0 30.38 17.07 0 0.56 0.42 1.67 6.89 4.98 0.67

Others 0 0 0 5.07 7.32 2.21 4.44 5.01 2.78 3.31 4.74 1.56

Primary School 51.22 47.5 54.44 51.9 52.85 67.78 45.56 30.13 31.11 51.24 40.27 47.78 and Below Education Level Junior High 33.54 40.5 40 34.18 34.96 24.44 38.33 49.79 57.78 34.71 43.89 44

Senior High6 12.8 12 4.44 7.59 6.5 7.78 12.22 16.32 10 9.92 12.22 7.33

6 Including Secondary Specialized Schools.

College and 2.44 1.11 6.33 4.88 0 3.89 3.77 1.11 4.13 3.39 0.89 above

1 6.1 1.5 0 2.53 0.81 5.56 2.53 0.84 2.78 3.86 0.9 2.22

2 9.76 8.5 10 5.06 8.13 16.67 5.06 6.28 5.56 6.89 7.01 9.56 Family 3 26.22 24 26.67 17.72 24.39 28.89 17.72 23.01 25 20.66 22.4 26.44 Members 4 26.83 31 22.22 32.91 30.08 12.22 32.91 35.56 27.22 29.75 32.81 22.22

Over 5 31.1 34 41.11 41.77 36.59 36.67 41.77 33.47 39.44 38.84 36.43 39.56

Male 84.76 96.5 93.89 59.49 83.74 81.11 62.22 94.56 93.89 66.67 91.63 91.33 Gender of Householder Female 15.24 3.5 6.11 40.51 16.26 18.89 37.78 5.44 6.11 33.33 8.37 8.67

2. Project Impact

2.1 Socioeconomic Situation of the Project Area

2.1.1 Socioeconomic Overview7

In 2018, Pu’er’s economy grew steadily, and progress was made in all major social areas. Its GDP reached CNY 66.248 billion, an increase by 8.5% over the previous year in terms of comparable prices. The increase value of the primary industry was CNY 16.366 billion, an increase by 6.3%; that of the secondary industry was CNY 24.416 billion, up by 10.6%; and that of the tertiary industry was CNY 25.466 billion, up by 7.9%. The structure of the three industries was adjusted to 24.70: 36.86: 38.44 from 25.36: 35.79: 38.85 of the previous year. The per capita GDP was CNY 25,170, an increase by 8.1%. The increase value of the non-public economy was CNY 28.04 billion, accounting for 42.3% of the city’s GDP, an increase by 0.1% from the previous year.

By the end of 2018, the total resident population of Pu’er was 2.637 million, an increase by 10,000 over the end of 2017. The urban resident population was 1.1455 million, which constituted 43.44% of the total population (urbanization rate of resident population) and registered a growth of 1.13%. The birth rate of the whole city was 12.46‰, the death rate was 6.18‰, and the natural growth rate was 6.28‰. The total employment of all social laborers was 1.8902 million, an increase of 43,800.

In 2018, the total output value of agriculture, forestry, animal husbandry and fishery of Pu’er was CNY 27.195 billion, up by 6.3% from 2017. Annual grain production area was 339,520 ha, an increase by 0.7%. Grain output reached 1,168,200 tons, an increase by 1.5%.

7 National Economic and Social Development Statistical Bulletin of Pu’er City (2018)

Table 2.1-1 Socioeconomic Profile of Pu’er in 2018

Production Value of Agriculture, Forestry, Item GDP GDP Per Capita Per Capita Disposable Per Capita Disposable Animal Husbandry and Income of Urban Residents Income of Rural No. (billion yuan) (yuan) Fishery (yuan) Residents (yuan) Area (billion yuan) 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

1 Ning’er 4.739 5.28 5.545 24,579 27,303 28,614 1.845 1.953 1.948 26,014 28,225 30,738 9,007 9,953 10,908

2 Mojiang 5.655 6.229 6.534 15,362 16,880 17,683 2.775 2.838 2.844 24,066 26,208 28,384 8,504 9,295 10,159

3 Jingdong 6.31 6.884 7.142 17,213 18,687 19,312 4.02 4.232 4.211 24,295 26,287 28,579 8,879 9,776 10,727

4 Jinggu 9.339 10.03 10.339 31,372 33,535 34,430 4.909 4.956 4.8 26,058 28,143 30,564 9,162 10,042 11,097

5 Zhengyuan 4.613 5.113 5.364 21,768 24,025 25,054 3.186 3.353 3.281 24,184 26,191 28,347 9,001 9,964 10,991

6 Jiangcheng 2.67 2.829 2.980 21,076 22,209 23,278 1.52 1.571 1.561 23,999 26,087 28,315 8,315 9,080 9,932

7 Menglian 2.62 2.877 3.055 18,744 20,393 21,466 1.83 1.971 2.021 21,329 23,057 24,925 8,226 9,040 9,928

8 Lancang 6.305 7.25 7.795 12,625 14,479 15,524 3.108 3.42 3.42 22,568 24,667 26,892 8,037 8,873 9,716

9 Ximeng 1.223 1.357 1.431 12,941 14,259 14,926 0.502 0.541 0.567 20,994 22,988 24,852 8,135 8,900 9,786

23.69 251,59 8,585 Total 43.474 4.7849 50.185 19,520 21,308 200,287 24.835 24.653 23,723 25,761 9,436 93,244 5 6 .11

10,20 10 Simao 13.165 1.4807 16.022 41,968 46,993 50,638 2.336 2.5 2.541 26,425 28,830 31,454 10,209 11,162 9

21,764 26.03 Pu’er 56.804 6.2459 66.248 23,821 25,170 27.335 27.195 24,795 26,853 29,088 8,669 9,484 10,386 .8 1

(Continue) Table 2.1-1-1 Crop Production in the Project Area of 2018

Grains Oil Crops Pork/Beef/Mutton Vegetables Fruits Country/ Total Per Total Yield Total Yield Total Yield Total Yield City/ Yield Per Capita Per Capita Per Capita Per Capita Capita (Thousand (Thousand (Thousand (Thousand District (thousand Yield (kg) Yield (kg) Yield (kg) Yield (kg) Yield (kg) tons) tons) tons) tons) tons)

Ning’er 80.9 417 1.9 9.8 23.8 122 58.3 301 2.9 15

Mojiang 153 414 2.8 7.6 26.3 71 48.5 131 8.2 22

Jingdong 186 502 3.1 8.4 29.9 81 57.8 156 19.4 53

Jinggu 155.4 517 3.3 10.9 19.1 64 128.9 428 42.7 142

Zhenyuan 115.6 538 2.9 13.5 28.4 132 97.8 455 7 33

Jiangcheng 49.1 383 0.5 3.9 6.2 48 28.8 224 140.7 1,097

Menglian 72.3 507 0.6 3.9 7.5 53 28.1 197 33.2 233

Lancang 249.2 495 2.2 4.3 35.4 70 39.4 78 27.4 54

Ximeng 42.2 439 0.2 1.8 4.3 44 21.3 222 2.8 30

Average 122.6 468 1.9 7.12 20.1 76.1 56.5 243.65 31.6 186.56

Pu’er 1,168.2 443 18 6.8 196.5 75 542.6 206 301.9 114

Yunnan 18,605.4 385 609.8 12.6 3,784.7 79 22,057.1 457 8,133.5 168

Note: the data are from Leaders’ Economic Work Manual of Pu’er (2019).

(Continue) Table 2.1-1-2 Production of Major Cash Crops of the Project Area of Pu’er City 2018 (Tons)

Tobacco Sugarcane Tea Coffee Fruits Oil Crops County 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Ning’er 5,300 5,200 5,100 500 600 700 10,659 11,022 10,693 8,459 8,974 9,180 1,900 2,200 2,900 2,500 2,200 1,900

Mojiang 9,200 7,900 8,500 58,000 39,100 27,100 12,922 14,004 14,303 5,038 6,255 6,504 7,600 7,900 8,200 3,300 3,300 2,800

15,80 Jingdong 13,400 12,800 12,300 263,000 224,000 198,800 11,916 12,707 13,018 774 944 995 17,300 19,400 3,700 3,400 3,100 0

42,00 Jinggu 10,800 10,600 10,100 448,800 477,200 486,400 10,301 11,440 12,965 5,017 7,449 5,281 42,000 42,700 4,100 4,000 3,300 0

Zhenyuan 13,300 12,900 12,500 36,000 31,200 26,600 4,629 4,806 4,715 1,808 1,857 1,848 6,100 6,300 7,000 3,800 3,300 2,900

140,6 Jiangcheng / / 32,600 45,700 38,800 14,188 14,054 13,787 7,772 8,637 7,901 131,400 140,700 500 600 500 00

28,10 Menglian / / 414,400 447,600 404,100 4,268 4,441 73 7,439 8,547 8,718 29,500 33,200 500 400 600 0

40,20 Lancang 500 400 1,002,500 1,116,000 1,092,600 16,668 18,788 20,585 5,291 6,776 7,306 41,900 27,400 2,300 2,200 2,200 0

Ximeng / / 86,700 97,700 118,000 3,040 3,187 3,222 431 547 620 600 2,900 2,800 200 0 200

282,9 17,50 Total 52,500 49,800 48,500 2,342,500 2,479,100 2,393,100 88,591 94,449 93,361 42,029 49,986 48,353 281,400 284,300 20,900 19400 00 0

Note: the data are from Leaders’ Economic Work Manual of Pu’er (2019).

The annual per capita disposable income of urban residents was CNY 29,088, an increase by 8.3% over the previous year. Per capita disposable income of rural residents was CNY 10,386, an increase by 9.5%. Per capita consumption expenditure of urban residents was CNY 19,962, up by 15.1%; and per capita consumption expenditure of rural residents was CNY 9,294, up by 35.6%. The city’s average annual wage of workers was CNY 83,510, an increase by 3.2%.

2.1.2 Ethnic Minorities and Impoverished Population

1. Ethnic Minorities in the Project Area

All the nine counties in the project area are autonomous counties of ethnic minority. By the end of 2017, there were 1,561,488 ethnic minority members in the area, which took up 67.56% of the total population, a slight drop from the previous year. By the end of 2018, the number of minority members rose to 1,613,000, 69.8% of the total population.

Table 2.1-2 Ethnic Minority in the Project Area (2018)

Item Area Ning’er Mojiang Jingdong Jinggu Zhenyuan

Minorities Townships 0 18 0 0 0

Minority Population 90,500 169,200 194,900 237,500 183,200

Percentage of Minority 46.7% 45.8% 52.7% 79.0% 85.2% Population

(Continue)Table 2.1-2-1 Ethnic Minority in the Project Area (2018)

Item Area Jiangcheng Menglian Lancang Ximeng Total (9 Counties)

Minorities Townships 69 110 /

Minority Population 98,400 134,000 427,800 77,500 1,613,000

Percentage of Minority 76.8% 94.1% 85.0% 80.6% 69.8%

8Mengnong Autonomous Township of Yi People.

9Qianliu Autonomous Township of Yi People, Jiujin Autonomous Township of Hani People, Ankang Autonomous Township of Wa People, Wendong Autonomous Township of Wa People, Xuelin Autonomous Township of Wa People, and Fazhanhe Autonomous Township of Hani People.

10Lisuola Autonomous Township of Lahu People.

Population

Note: the data are from Leaders’ Economic Work Manual of Pu’er (2019). The major ethnic minority groups in the project area are Hani, Yi, Lahu, Wa, Dai, Yao, Bai, Hui and Miao. Most of them live in the same area with other groups and their distribution has remained the same since the end of 2015. Since then (1.5238 million minority members), the total population of minority members has grown by 89,200, with an increase rate of 5.85%. It is estimated that according to the growth rate Rural Roads will benefit 74,500 ethnic members, and NJ Road and MM Road 331,500 people by 2020 when the project is completed.

2. Poverty Population in the Project Area

In 2018, the poverty population of Pu’er dropped by 107,300, and the incidence of poverty fell from 14.09% to 8.12%, a decrease by 5.97%. The registered poverty population had seen a steady decrease since 2016, with a drop of 86,000 in 2016, 91,300 in 2017 and 107,300 in 2018. 410 poverty-stricken villages had shaken off poverty since 2016, with 111 alleviating poverty in 2016, 128 in 2017, and 171 in 2018. In 2017, Ning’er Hani and Yi Autonomous County rose out of poverty. Zhenyuan, Jinggu, Menglian, and Ximeng County passed the assessment and inspection by the third-party in 2018 and exited the list of poverty counties on April 30, 2019 after the approval from the provincial government11.

The roads constructed in this project are located in poverty-stricken areas, and all nine counties in the project area are national poverty counties. In recent years, with the various measures for poverty alleviation, the poverty alleviation work has achieved periodic results, and the number of poor people and the incidence of poverty have been greatly reduced. For example, Ning’er County has invested CNY 3.125 billion in poverty alleviation, lifting 32 poverty-stricken villages, 3984 households with 14214 people out of poverty. 342 households with 936 people remained in poverty. The incidence of poverty dropped from 8.22% in late 2013 to 0.66%, making Ning’er county one of the 15 earliest counties shaking off poverty12. Jiangcheng County has invested various poverty alleviation funds totaling CNY 993 million, lifting 7,171 people in

11 The government of Simao District of Pu’er

12 From Government Report of Ning’er County (2019)

1,900 households out of poverty. Its poverty incidence dropped from 21.71% in 2017 to 14.35%13.

13 From Government Report of Jiangcheng County (2019)

Table 2.1-3 Poverty Population in the Project Area

Poverty Population Poverty Incidence (%) Area 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Ning’er 11,509 9,394 4,258 1,798 936 201 8.08 6.59 2.99 1.26 0.66 0.14 Mojiang 72,966 60,749 55,677 40,822 37,482 3,687 23.58 19.63 17.99 13.19 12.11 1.19 Jingdong 47,127 38,270 39,170 30,359 10,235 3,895 15.88 12.89 13.20 10.23 3.45 1.31 Jinggu 43,760 36,445 28,244 18,070 4,305 1,117 17.19 14.31 11.09 7.10 1.69 0.44 Zhenyuan 27,522 22,216 15,475 2,025 2,282 390 16.36 13.21 9.20 1.20 1.36 0.23 Jiangcheng 29,393 24,127 24,748 18,832 12,447 822 33.88 27.81 28.53 21.71 14.35 0.95 Menglian 24,997 20,739 17,814 11,884 1,302 246 25.37 21.05 18.08 12.06 1.32 0.25 Lancang 166,727 139,317 141,981 120,440 84,951 6,909 38.94 32.54 33.16 28.13 19.84 1.61 Ximeng 25,191 20,618 19,701 14,832 1,106 342 33.12 27.11 25.90 19.50 1.45 0.45 Total/Average 449,192 371,875 416,151 259,062 155,046 17,609 23.6 19.46 17.8 12.71 6.25 0.73 Pu’er City 462,619 382,968 358,449 267,116 159,832 17,709 23.5 19.45 18.21 13.57 8.12 0.9 Note: the data are provided by Poverty Alleviation Office of Yunnan Province.

Table 2.1-4 Demographic Features of Pu’er City

Item Village Total Population Rural Population Ethnic Minority Population Poverty Population Town/ Committees/ (thousand) No. (thousand) (thousand) Township Sub-district Area Offices 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

1 Ning’er 6/3 85/ 193.2 193.5 194 115.3 110.3 162.3 90.2 108.7 90.5 10,324 1,798 936

2 Mojiang 12/3 160/ 368.9 369.1 369.8 244 236.2 306.4 168.8 288.1 169.2 69,053 40,822 37,482

3 Jingdong 10/3 166/ 367.4 369.3 370.2 230.3 225.3 344.5 193.5 186.9 194.9 46,133 30,359 10,235

4 Jinggu 6/4 136/ 298.4 299.8 300.8 163.8 158.9 291.9 235.6 151.6 237.5 39,123 18,070 4,305

5 Zhengyuan 8/1 109/ 212.4 213.2 215 141.6 138.6 200.5 181 121.4 183.2 24,626 2,025 2,282

6 Jiangcheng 5/2 48/ 127 127.8 128.2 73.6 72.8 110.9 975 103.0 98.4 29,008 18,832 12,447

7 Menglian 4/2 39/ 140.1 142 142.5 72.7 72.4 123.1 131.8 112.2 134 21,641 11,884 1,302

8 Lancang 5/15 157/ 500.5 500.9 503.3 359.8 350.6 453.3 425.4 400.0 427.8 154,080 120,440 84,951

9 Ximeng 5/2 36/ 94.7 95.6 96.2 66.2 64.9 83.4 76.3 89.5 77.5 22,163 14,832 1,106

2,302. 2,311 Total/Average 61/35 936/ 2,320 1,467.2 1,430 2,076.3 1,600.1 1,561.5 1,613 416,151 259,062 15,5046 6 .2

10 Simao 5 56/ 314.4 315.8 317 85.7 85.5 13,992 8,054 4,786

Pu’er 66/37 993 2,617 2,627 2,637 1,552.9 1,515.5 2,198.2 / 430,143 267,116 159,832

Note: the data are from Leaders’ Economic Work Manual of Pu’er (2019) and provided by Poverty Alleviation Office of Yunnan Province..

2.1.3 Economic Situation of Sample Families

1. Sources of Family Income

The poverty situation of Pu’er is closely related to its poor transportation. Simao District has good transportation and facilities and has seen small increase of poor people. On the contrary, the poor transportation system of other counties adds up the cost of agriculture product shipping and non-agriculture activities, rendering greater difficulty for poverty alleviation. Questionnaire results show the annual income of poverty- stricken families were much lower than that of normal families but the increase rate of the former was much higher than that of the latter. Compared with 2017, the average income of the normal families in the project area reached CNY 42,972, an increase by CNY 2,186 with an increase rate of 5.36%; while that of the poor families rose to CNY 30,649, an increase by 3,146 with an increase rate of 11.44%.

Table 2.1-5 Average Annual Income of Sample Families (yuan)

Rural Roads NJ Road MM Road Total Project 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Normal 33,86 44,81 36,23 48,38 36,02 61,02 36,54 40,25 40,78 42,97 28,313 31,370 Family 3 3 9 7 8 0 8 0 6 2

Poor 31,08 30,45 27,53 28,33 29,31 23,16 25,09 27,50 30,64 20,796 27,580 - Family 9 2 0 3 3 3 8 3 9

Note: the data are from questionnaire results. With the continuous effort of poverty alleviation work, poverty population in the project area has continued to decline. The sample size of poor households in this survey has dropped significantly, with no sample of poor household in MM Road, and five samples in NJ Road (accounting for 2.78% of the total samples of NJ Road, including three samples of poor households and two samples of households receiving subsistence allowance). On the one hand, most of remaining households are extremely poor, with very low average income. On the other hand, the limited sample size means limited representativeness. It is expected that in the next monitoring, the samples can no longer be classified according to whether a household is poor.

The planting industry is the main source of household income in Pu’er, with coffee and tea being the major economic crops. In 2018, the tea output was 113,300 tons, an

increase by 6.3%; the oil production was 18,000 tons, an increase by 7.4%; the tobacco yield was 50,100 tons, a decrease by 2.2%; vegetable output was 522,600 tons, an increase by 4.9%; the fruit output was 301,900 tons, a decrease by 4.0%; and coffee output was 74,100 tons, a decrease by 1.7%.

Table 2.1-6 Output and Growth Rate of Major Agricultural Products of Pu’er in 2018

Growth Rate over the Output (thousand tons) Previous Year (%)

Grains 1,168.2 1.5

Oil Crops 18 7.4

Sugarcane 2,393.4 10.1

Tobacco 50.1 -2.2

Vegetables 522.6 4.9

Fruits 301.9 -4.0

Tea 113.3 6.3

Rubber 76.5 5.4

Walnut 20.3 9.4

Coffee 74.1 -1.7

Aquatic Product 170 5.6

Note: the data are from National Economic and Social Development Statistical Bulletin of Pu’er City (2018).

The income of the sample families is mainly from planting and cattle farming. Crop production accounted for nearly 55.39% of average family income, an increase by 11.09%, and livestock raising took up 8.89%, dropping by 9.79% from the previous year. The proportion of poverty alleviation and subsidiaries in family income increased from 2.02% in 2018 to 16.32% in 2019, due to the strengthened effort of poverty alleviation work. The percentage of non non-agricultural activities fell from 20.06% in 2018 to 5.47% in 2019.

Planting is the major source of the family income of ethnic minority families, and accounts for nearly 51.73% of the average family income in the project area. The income from cash crops and traditional crops by minority groups is slightly higher than 63

that of Han people.

Non-agricultural activities and paid work are important supplementary sources of family income in the project area, but their shares have decreased over the previous year. The percentage of non-agricultural activities income fell from 20.06% to 5.47% and that of paid work from 12.63% to 11.93%. Poverty alleviation and subsidy have take up a larger share, increasing from 2.02% in the previous year to 16.32%. That shows the traditional life and production has undergone changes and business opportunities become available as a result of poverty alleviation work.

Table 2.1-7 Major Income Sources of Sample Families (%)

Rural Roads NJ Road MM Road Total % of Total Income 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Cash Crops 35.22 48.00 53.36 14.32 30.17 38.42 31.15 35.49 54.23 27.23 31.72 47.56

Traditional Crops 5.84 7.69 4.81 3.55 12.91 6.15 7.21 5.10 7.22 4.56 12.58 5.83

Cattle Farming 32.57 7.06 7.19 34.68 20.23 12.84 5.35 8.37 4.38 20.68 18.68 8.89

Non-agri Activities 2.25 36.38 1.67 7.12 21.77 6.73 11.56 17.76 10.58 6.9 20.06 5.47

Paid Work 12.17 0 15.58 22.41 10.49 10.04 27.98 29.06 8.39 22.7 12.63 11.93

Poverty Alleviation 4.51 0.87 5.76 2.6 2.16 34.98 7.13 0.91 0.11 4.88 2.02 16.32 and Subsidy

Other 7.13 0.01 0 3.9 2.28 10.76 5.87 3.31 11.87 6.43 2.31 6.68

Annual Average 45,804.8 27,283 30,423 31,431 33,725 48,561 35,015 57,620 26,289 38,646 37,673 37,255 Income (Yuan) 3

(Continue) Table 2.1-7 Major Income Sources of Minority Families (%)

Average of the Project Rural Roads NJ Road MM Road Area Income Sources % of the Total Income % of the Total Income % of the Total Income % of the Total Income

Han Minorities Han Minorities Han Minorities Han Minorities

Cash Crops 55.49 66.22 29.48 43.33 50 57.68 41.44 41.93

Traditional 1.53 7.23 2.31 12.08 0 2.76 1.68 9.80 Crops

Cattle Farming 9.36 4.53 13.89 18.53 0 2.68 10.18 14.02

Non-agri 1.94 1.52 7.65 3.48 13.04 4.27 6.58 2.38 Activities

Paid Work 21.89 8.57 7.93 8.31 5.65 2.65 12.25 6.71

Poverty Alleviation and 5.51 4.37 82.39 0.75 0 0.04 43.61 1.37 Subsidy

Other 0 0.00 20.73 3.61 31.3 4.12 15.44 2.33

Note: the data are from questionnaire results.

Overall, the average annual income of minority and non-minority families in the project area has increased from CNY 35,832.25 to CNY 38,370.49, namely an increase by 6.61%. The average annual income of Han families has decreased but is still higher than that of minority families. The income of women is still lower than that of men.

Table 2.1-8 Family Income of the Project Area-by Nationality (yuan)

Average of the Project Nationality Rural Roads NJ Road MM Road Area

Han 33,112 49,696 38,043 42,295

Minorities 31,384.51 48,624 30,944.92 38,370.49

Note: the data are from questionnaire results.

Table 2.1-8 Family Income of the Project Area-by Gender (yuan)

Gender Average Family Income Han Families Minority Families

Male 21,655 27,421 20,944.66

Female 11,696 12,672 14,658.46

Note: the data are from questionnaire results. 2. Working Status

The income of migrant workers is an important source of rural households and can greatly improve the family income. 57.56% of the sample families have members working outside of their hometowns, 41.78% do not and 0.66% do not answer the questions. Among those who work outside, 32.05% are husbands and 10.81% wives; and 35.79% are sons and 14.76% daughters. In general, more males than females go out to work. 61.54% of minority families work as migrant workers, among which 39.48% are husbands, 8.12% are wives, 30.12% are son and 9.65% are daughters. More males than females work as migrant workers.

Because regional economic growth engender employment, Rural Roads, NJ Road and MM Road have seen decrease in the ratio of migrant workers compared with the previous year, with a drop of 1.39%, 10.19% and 32.87% respectively. The majority of the migrant workers find jobs within the county or neighboring areas, and more of them are Han people than minority ones. More people choose to work outside of their counties, which shows with the adjustment of the rural economic structure and industrial structure, the urban-rural gap has gradually narrowed, and the number of migrant workers has gradually increased.

Table 2.1-9 Migrant Workers of Sample Families (%)

Is there family Rural Roads NJ Road MM Road Total member working in 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 other places?

Yes 29.19 72.5 71.11 44.57 79.08 68.89 32.91 40.65 7.78 41.97 61.54 57.56

No 70.81 27.5 28.33 55.43 20.92 30 67.09 59.35 92.22 58.03 38.46 41.78

Workplaces

Within the County/ 68 86.29 42.86 Neighboring 65.96 87.59 70.51 87.23 42.31 54.90 64.43 77.12 68.73 Areas

Other Counties/Pu’er 8.51 2.07 22 19.23 10.11 8.87 26.92 9.80 0 17.45 9.96 12.74 City

Other Cities of 12 3.23 0 Yunnan 17.02 4.14 2.56 1.6 3.85 9.80 7.38 4.8 6.18

Kunming 2.13 1.38 15 3.85 0.53 1.61 0 1.96 0 2.68 1.48 6.56

Other Provinces 8.51 4.14 14 2.56 0 2.42 23.08 23.53 57.14 8.05 6.64 8.11

Family Members as Migrant Workers

Husband 23.4 62.76 46.09 24.36 61.7 58.06 15.38 25.81 14.29 22.82 52.77 50.97

Wife 4.26 11.72 14.84 14.1 11.17 15.32 7.69 11.29 14.29 10.07 11.81 15.06

Son 42.55 32.41 46.09 44.87 30.32 43.55 42.31 35.48 28.57 43.62 35.79 44.4

Daughter 21.28 8.28 9.38 41.03 10.11 15.32 34.62 27.42 42.86 33.56 14.76 13.13 (Continue) Table 2.1-9 Migrant Workers of Minority Families (%)

Rural Roads NJ Road MM Road Average of the Project Area Is there family member working Percentage Percentage Percentage Percentage in other places? Han Minorities Han Minorities Han Minorities Han Minorities

Yes 75.51 19.00 70.27 41.37 0 1.48 60.96 34.87

No 24.49 18.35 29.73 32.50 100 48.52 39.04 52.20

Workplaces

Within the County/ 18.75 36.29 8.33 42.86 Neighboring Areas 15.63 25.1 10.91

Other Counties 3.13 7.03 4.84 0.67 0 3.86 2.22 /Pu’er City

Other Cities of 3.13 0.81 0.40 0 Yunnan 3.13 1.93 2.13

Kunming 5.47 3.13 0 0.27 0 2.7 1.29

Other Provinces 2.34 4.30 1.61 0.14 57.14 1.93 3.09

Family Members as Migrant Workers

Husband 16.41 14.85 27.42 7.66 14.29 21.24 7.43

Wife 4.69 5.08 5.65 3.23 14.29 5.02 2.51

Son 13.28 16.41 15.32 7.06 28.57 13.9 7.63

Daughter 2.34 3.52 6.45 2.22 42.86 4.25 2.22

Note: the data are from questionnaire results. 3. Family Income and Expenditure

The major family expenditures within the project area are on food and clothing, health-care and education, and investment in agricultural production and other activities. Compared with the previous year, the expenditure on food and clothing has increased, taking up 44.29% of the total. 10.71% of the total expenditure is on investment in agricultural production and other activities, a decrease of 6.29% from the previous year. That on health-care and education has dropped from 24.2% to 16.85%, and that on house building/rebuilding has increased from 10.98% to 18.6%. As for the minority families, food and clothing account for 43.36% of the expenditure, an increase by 22.05% from the previous year; investment in agricultural production and other activities 18.29%, an increase by 8.4%; health-care and education 23.23%, an increase by 7.91%; house construction/reconstruction 9.83%, an increase by 1.23%; fuel, travel and freight 2.85% and 0.44%, a decrease by 2.33% and 0.6% respectively.

Table 2.1-10 Major Expenditures of Sample Families (%)

Rural Roads NJ Road MM Road Total Expenditure 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Food and Clothing 22.46 20.76 49.27 27.09 36.10 32.33 42.37 45.09 58.24 29.5 36.34 44.29

Agricultural 22.02 15.73 11.56 18.7 16.94 12.77 7.3 12.58 4.9 17.5 17.00 10.71 Production and other 69

Investment

Medical Treatment 8.11 10.2 24.71 16.99 20.23 29.86 24.20 16.85 and Education 22.31 22.07 28.46 26.39

House 40.45 23.21 11.28 21.4 13.40 3.78 10.98 18.6 Construction/Rebuilt 24.83 20.39 12.73 15.83

Fuel, Travel and 14.86 5.51 8.93 4.98 8.25 2.14 9.72 4.62 Freight Transport 3.48 5.6 9.36 5.56

Others 2 0.09 0 3.59 2.05 4.88 0.58 0.45 0.59 2.81 1.77 2.07 (Continue) Table 2.1-10 Major Expenditures of Minority Families (%)

Rural Roads NJ Road MM Road Average

Expenditure Percentage Percentage Percentage Percentage

Han Minorities Han Minorities Han Minorities Han Minorities

Food and Clothing 38.54 63.66 39.04 26.88 52.91 67.64 41.06 43.36

Agricultural Production and other 10.59 7.66 13.24 23.50 4.35 3.28 10.95 18.29 Investment

Medical Treatment 16.68 4.83 16.19 26.20 32.52 24.95 18.92 23.23 and Education

House 22.55 21.52 7.69 16.40 4.78 0.98 12.22 9.83 Construction/Rebuilt

Fuel, Travel and 7.94 3.21 5.22 3.89 3.74 0.45 5.9 2.85 Freight Transport

Others 0 0.00 9.56 1.11 1.43 0.09 5.07 0.44

Note: the data are from questionnaire results.

The sample families sell more crops than they buy, and the earning is higher than the cost. That is in line with the finding that the income of those sample families is from cash crops. In addition, some sample families have their crops processed at factories.

Table 2.1-11 Income and Expense of Agriculture Crops of Sample Families

Expenditure on Rural Roads NJ Road MM Road Total

Crops Sold Annually (ton) 1.65 1.55 0.93 1.47

Crop Sales Annually (yuan) 11414 12821 3153.3 10324

Crop Purchased Annually (ton) 1.04 0.88 0.07 0.78

Expense on Crop Purchase (yuan) 2397.8 3333.3 176.44 2327.7

Crop Processed at Factories (ton) 1.14 1.28 0.01 0.97

(Continue)Table 2.1-11 Income and Expense of Agriculture Crops of Minority Families

Rural Roads NJ Road MM Road Average Expenditure on Han Minorities Han Minorities Han Minorities Han Minorities

Crops Sold Annually (ton) 1.64 2.05 0.86 2.34 0 1.59 0.99 2.54

8124. Crop Sales Annually (yuan) 11224 15374.51 8462.9 15499.47 434.78 6075.42 14264.91 8

Crop Purchased Annually (ton) 1.01 1.34 0.42 1.63 0.02 0.02 0.56 1.30

2281. Expense on Crop Purchase (yuan) 2689.8 2045.05 2697.3 7149.59 73.04 60.17 5558.87 4

Crop Processed at Factories (ton) 1.01 1.15 0.62 2.05 0 0.01 0.65 1.46

Note: the data are from questionnaire results.

4. Trainings for the Farmers

Questionnaire results show that 16.4% of respondents have obtained opportunities for work or production after receiving trainings and 76.8% believe their income has increased. 3.2% respond the trainings do not help. The top three trainings joined by the respondents are on planting skills for agricultural crops, planting skills for cash crops, and preventing human trafficking and drug dealing; and the top three trainings the interviewees hope to participate are planting skills for cash crops, planting skills for agricultural crops and road safety. Details are in Table 2.1-12.

Table 2.1-12 Training Programs Joined by Sample Families (%)

Rural Roads NJ Road MM Road Total Training Subjects Attende Hope to Attende Hope to Attende Hope to Attende Hope to d Attend d Attend d Attend d Attend

Road Maintaining 5.5 0 0.75 0 0 0 Skills 2.8 0

Finance 17.43 3.89 6.02 1.67 0 1.11 Management Skills 10.8 2.44

Road Safety 2.75 2.78 19.55 14.44 0 2.22 11.6 7.33

Environmental 20.18 2.22 0 0 13.6 Protection 9.02 10 4.89

Preventing Wild Animals and Plants 19.27 0 25.56 1.11 0 2.22 22 0.89 Trafficking

Preventing Human 53.21 0 0 30 and Drug Trafficking 5.26 2.22 26 6.89

Growing Techniques of Agricultural 56.88 31.11 44.36 36.11 0 17.78 48.4 30.44 Crops

Growing Techniques 71.56 18.33 0 8.89 of Cash Crops 29.32 10 46.8 13.11

Working Skills 0 6.11 1.5 1.67 0 6.67 0.8 4.44

Non-agriculture 0 0 0 6.67 Occupation skills 1.5 1.67 0.8 2

Labor Laws and Rights and Interests 2.75 0 0.75 0 0 0 1.6 0 of Laborers

ADIS Prevention 16.51 3.33 3.76 0.56 0 1.11 9.2 1.78

Women 0 0 0 1.11 Entrepreneurship 1.5 0.56 0.8 0.44

Tea Processing 0 0 0 0 0 0 0 0

Note: the data are from questionnaire results. 5. Loans and Support Funds

44.89% of the interviewees have loans or support funds, 51.78% of them do not, and 3.33% do not answer the questions. The loans are mainly from Rural Credit Cooperatives, and the top three purposes of loans are agricultural investment, house

building and business running. As shown in the following table.

Table 2.1-13 Sources of Loans and Support Funds (%)

Sources Rural Roads NJ Road MM Road Total

Rural Credit Cooperatives 87 95.05 0 90.59

Bank of Agriculture 3 6.93 0 4.95

Village Fund 0 0 0 0

Private Lenders 2 0 0 0.99

Others 2 0.99 0 1.98

Table 2.1-14 Uses of Loans and Support Funds (%)

Uses Rural Roads NJ Road MM Road Total

House Building 67 70.3 0 68.32

Doing Business 57 73.27 0 64.85

Agriculture Input 76 78.22 0 76.73

Medical Treatment 1 2.97 0 1.98

Going to School 5 6.93 100 6.44

Others 2 6.93 0 4.46 2.2 Foreign and Port Trade 2.2.1 Foreign Trade of Pu’er City

Despite the complicated economic and political situation around the world in 2018, Pu’er’s export saw significant increase. The export value reached USD 226 million, exceeding USD 200 million for the first time. The export of coffee, rosin and other traditional products hit a record high. In spite of the low price throughout the year, the export volume of coffee reached 28,544 tons, and the export value USD 61.78 million, increasing by 81% and 31% respectively. Rosin exports saw a year-on-year increase of 22%. In 2018, the foreign trade turnover reached USD 1,131.23 million, down by 9% from 2017. The import value was USD 905.08 million, down by 15.1%, and the export value was USD 226.15 million, up by 27.9%. The turnover of general foreign trade was USD 424.04 million, down by 14.2%, in which import reached USD 313.27 million, down by 28.1% and export USD 110.77 million, up by 88.4%. The volume of border trade was USD 598.36 million, down by 11.3%, in which import rose to USD 570.62 million, down by 10.8% and export USD 27.74 million, down by 20.5%. The construction of Menglian (Meng’a) Border Economic Cooperation Zone has been accelerated, and two border trade markets have been established. The construction of “single window” international trade has been initiated. Pu’er has organized the 13th Pu’er Tea International Expo Fair, the 1st Pu’er International Coffee Expo, and the 5th Jiangcheng China-Laos-Vietnam Border Economic Fair. The export of specialty products exceeded USD 200 million for the first time, an increase by 28%.

Within the project affected area, the import of Menglian County reached USD 5,161.48 million, down by 11% over the previous year, and the export USD 386.09 74

million, down by 20.7%. The import of Jiangcheng County amounted to USD 385.43 million, up by 23.8%, and the export USD 176.45 million, up by 78.5%. The import of Ning’er County reached USD 31.51 million, up by 119.1%. (see Table 2.2-1).

Table 2.2-1 Foreign Trade of Project Area (USD million)

County/ 2017 2018 Year-on-Year Growth (%) No. District Total Import Export Total Import Export Total Import Export

1 Ning’er 14.38 0 14.38 31.51 0 31.51 119.1% 119.1%

2 Mojiang 76.67 0 76.67 39.93 0 39.93 -47.9% -47.9%

3 Jingdong ------

4 Jinggu 46.56 0 46.56 36.74 0 36.74 -21.1% -21.1%

5 Zhenyuan 17.42 0 17.42 8.34 0 8.34 -52.1% -52.1%

6 Jiangcheng 409.47 310.62 98.85 560.98 384.53 176.45 37.0% 23.8% 78.5%

7 Menglian 6,933.85 6,447.19 486.66 5,547.57 5,161.48 386.09 -20.0% -19.9% -20.7%

8 Lancang 85.88 58.08 27.80 401.36 74.73 326.63 367.3% 28.7% 1074.9%

9 Ximeng 69.23 58.41 10.82 55.35 51.79 3.56 -20.0% -11.3% -67.1%

Sub-total 7,653.46 6,874.30 779.16 6,681.78 5,672.53 1,009.25 -12.7% -17.5% 29.5%

10 Simao 766.77 345.87 420.90 802.68 319.73 482.95 4.7% -7.6% 14.7%

Pu’er City 8,420.23 7,220.17 1,200.06 7,484.46 5,992.26 1,492.20 12.5% 20.5% -19.6%

Note: the data of 2017 and 2018 are obtained with the coordination of PMO. The data source and caliber remain the same to ensure the comparability

2.2.2 Port Trade

According to the monitoring framework, the group monitored the foreign trade at Meng’a Port and Longfu Port (Channel), and the amount of cross-border trade of both ports had exceeded the criteria of growing by 100% by 2023 (compared with 2013) set in the framework. The growth rates of cross-border vehicles and people at Meng’a Port were much higher than the average annual rates to achieve the objective. Therefore, the indicators of port trade are expected to be completed ahead of schedule.

Menglian (Meng’a) Port is a national port of Class II. In 2011, the State Council approved Menglian-Meng’a Border Economic Cooperation Zone, and included it into the five border economic zones of Yunnan. In recent years, by accelerating the construction of transportation infrastructure for large entry and exit channels and improving the functional support of border ports and border areas, Pu’er has continuously deepened interconnection with neighboring countries and regions, vigorously improved the port business environment, optimized customs clearance efficiency, and increased customs clearance speed. In 2018, the border trade was USD 1.026 billion, the freight volume was 697,200 tons, the passenger flow was 1.7314 million, and the traffic flow was 3.752 million. The continuous increase in port traffic has boosted local development and improved the life of local people.

Longfu Port is part of Pu’er Green Economy Pilot Demonstration Zone. The construction of the comprehensive mutual trade zone is progressing in an orderly manner. It is planned to begin with small-scale trade of rice, timber, fruits, seafood and agricultural products, forming a regular market for people at both sides of the border. At present, by transforming and upgrading border trade, the local government is actively boosting industrial processing, commercial logistics, and related service industries in Jiangcheng County to benefit border population and increase tax revenue. In 2018, the trade volume of the border residents of Longfu Port reached CNY 8.55 million, and the flow of inbound and outbound goods reached 3,463 tons.

Table 2.2-2 Port Trade in the Project Area

Item Year 2014 2015 2016 2017 2018

Total Volume (USD million) 567 502 902 1,161 1,026

Cross-border Trade of Meng’a Increase by (USD million) 226 -65 400 259 -135

Increase Rate (%) 66.43 -11.46 79.81 28.73 -11.63

Amount (thousand) 248.6 274.7 303 326 375.2 Entry-exit Vehicles at Meng’a Increase by (thousand) 28.9 26.1 28.3 23 49.2 Port Increase Rate (%) 13.16 10.48 10.30 7.58 15.10

Amount (thousand) 1,199.9 1,341.0 1,463.8 1,596.1 1,731.4 Entry-exit Passengers at Meng’a Increase by (thousand) 187.7 141.1 122.8 132.3 135.3 Port Increase Rate (%) 18.55 11.76 9.16 9.04 8.48

Amount (thousand yuan) 970 1,080 2,180 2,968 5,582

Cross-border Trade at Longfu Port Increase by (thousand yuan) 66 110 1,100 788 1,880

Increase Rate (%) 7.3 11.34 101.87 36.15 188.04

Entry-exit Vehicles at Longfu Port Amount 21 12 -- 33 --

Increase by 5 -9 -- 33 --

Increase Rate (%) 31.25 -42.86 ------

Amount (thousand) 123 156 160 108 --

Entry-exit Vehicles at Longfu Port Increase by (thousand) 21 33 4 -52 --

Increase Rate (%) 20.59 26.83 2.56 -32.50 --

Note: the data of 2017 are obtained with the coordination of PMO.

2.3 Other Impacts

2.3.1Tourism

As a region rich in ethnic tourism resources, Pu’er has maintained a strong momentum of development for its tourism industry. It has introduced well-known enterprises such as Shanghai Jiuze and Shenzhen Overseas Chinese Town Holdings Company to develop well-being industry, and has accelerated ancient tea route and Xikang Yunshe projects. The Sun River and Sanguo Manor Automobile Tourism Camp have been put into use. Pu’er section of Travel Yunnan with One Phone has been online. It has created one national AAAA-level and three AAA-level scenic spots. Pu’er Airlines obtained the national general civil aviation license and opened its first route to the southwest from Simao to Lancang.

In 2018, Pu’er received 0.1147 million foreign travelers (including one-day trip at border area), an increase of 24.4% from the previous year. The foreign exchange income from tourism was USD 69 million, an increase of 45.4%. The number of domestic tourists was 34.7581 million, an increase of 20.4%; the domestic tourism income was CNY 34.955 billion, an increase of 31.01%; and the total annual tourism revenue was CNY 35.411 billion, an increase of 31.15%.

Table 2.3-1 Number of Tourists and Tourist Revenue of Pu’er in 2017

Foreign Tourists Domestic Tourists Total Tourism Income County/ 2017 2018 2017 2018 2018 Year-on-year Year-on-year Year-on-year 2017 District (billion rate ( thousand (thousand （） (thousand (thousand （） rate % rate % (billion yuan) person-time) person-time) person-time) person-time) yuan) （%）

Simao 20.5 25.5 24.39 8,106.4 9,735.8 20.1 7.808 10.229 31.01

Ning’er 1.2 1.5 25 2,470 2,961.9 19.91 2.173 2.862 31.71

Mojiang 1.2 1.45 20.83 4,638.6 5,574.2 20.17 3.768 4.936 31

Jingdong 0.3 0.36 20 1,645 1,971.9 19.87 1.37 1.795 31.02

Jinggu 0.38 0.46 21.05 2,200.5 2,647.1 20.3 2.211 2.896 31

Zhenyuan 0.15 0.19 26.67 973.2 1,237.1 27.12 0.896 1.199 33.82

Jiangcheng 12 16.3 35.83 1,486.2 1,784.6 20.08 1.346 1.763 31

Menglian 41.1 50.1 21.9 3,132.8 3,767 20.24 3.063 4.013 31.02

Lancang 12.3 15 21.95 3,242.9 3,892.8 20.04 3.387 4.437 31

Ximeng 3 3.7 23.33 980.5 1,185.7 20.93 0.977 1.28 31.01

Pu’er 92.2 114.7 24.38 28,876.1 34,758.1 20.37 27 35.411 31.15

Note: The data of 2018 are collected with the coordination of PMO.

2.3.2 Medical Treatment

After decades of efforts, Pu’er has seen steady increase in its medical resources,

and improved medical capacity and people’s well-being. In 2018, there were 530

medical and health institutions, including 47 hospitals (19 government-run hospitals,

one enterprise-run hospital and 27 private hospitals), 119 health centers at the

town/township level, one community health center, 320 clinics (dispensaries), 11

centers for disease control, and 11 health supervision offices. The number of medical

personnel was 14,713, an increased by 1,390 from 2017, which included 3,618

practicing physicians, 4,434 practicing assistant physicians, 6,273 registered nurses,

625 pharmacists, and 679 technicians (inspectors).

There were 988 village clinics, 2,360 village doctors and 124 health workers.

Overall, the number of hospitals increased by 4 over the previous year; township health

centers and clinics increased by 17 and 15 respectively; there were 13,358 beds in

health institutions, an increase of 1,859 over the previous year; and the number of health

technicians saw a significant increase by 1,390. Immediate settlement for urban and

rural residents’ serious illness insurance across Yunnan province has been realized, and

the maximum payment limits for urban employees and urban and rural residents’

medical insurance have been increased to CNY 250,000 and CNY 190,000 respectively.

All the registered poverty population has been covered with pension insurance, basic

medical care and serious illness insurance.

Table 2.3-2 Medical and Sanitation Facilities in the Project Area

Pu’er City Indicator 2014 2015 2016 2017 2018 Organizations

Numbers of Hospital 32 36 36 43 47 Medical

Community Health Center 1 4 1 1 1

Health Center 103 103 103 102 119

Clinic, Health Center, Dispensary 247 291 316 305 320

Emergency Center (Station) 1 2 2 2

Blood Bank 1 1 1 1

Maternal and Child Care Service 11 11 11 11 Center (Station)

The Center for Disease Control 11 11 11 11 11

Health Supervision Institution 11 11 11 11 11

Medical Science Research Center 2 2 2

Number of Sickbeds 9,416 9,710 10,742 11,499 13,358

Number of Medical Personnel 9,643 10,295 11,852 13,323 14,713

Note: The data are from Statistic Yearbook of Yunnan (2019).

In 2018, 6,735 people were infected with notifiable infectious diseases and 87 cases were reported. The morbidity rate and death rate of notifiable infectious diseases showed increase compared with 2017, reaching 256.38/100,000 and 5.02/100,000 respectively. Details are shown in the following table.

Table 2.3-3 The Morbidity Rate of Notifiable Infectious Diseases and Death Toll

Morbidity rate of Death rate of People infected with People die from notifiable notifiable notifiable infectious notifiable infectious Year infectious infectious diseases diseases of category A diseases of category diseases (per (per 100,000 and category B A and category B 100,000 persons) persons)

2015 6,548 87 246.8 3.32

2016 5,964 77 228.94 2.96

2017 6,238 104 238.36 3.97

2018 6,735 132 256.38 5.02

2.3.3 Education, Science & Technology, Cultural Development and Sports

(1) Education 84

There were one college, five secondary schools, 11 vocational high schools, 127 general high schools, 505 primary schools, and 229 kindergartens in Pu’er. In 2018, there were 3,934 students enrolled, 12,115 students in total and 4,577 graduates in the college. There were 2,987 students enrolled, 9,386 students in total and 3,204 graduates in the secondary schools (including technical schools). There were 4,627 students enrolled, 12,082 students in total and 2,968 graduates in vocational high schools. There were 39,361 students enrolled, 115,106 students in total and 37,104 graduates in middle schools. There were 33,316 students enrolled, 186,430 students in total and 28,476 graduates in elementary schools. There were 55,726 children in the kindergartens. The enrollment rate of school-age children was 99.94%, and the enrollment rate of primary school graduates was 99.09%. The gross enrollment rate of junior high school students was 113.05%, and the enrollment rate of junior high school graduates was 67.44%. The enrollment rate of high school students was 74.17%. Among them, the enrollment rates of school-age children, primary school graduates, junior high schools, and high schools have increased (by 0.04% to 7.9%), but the enrollment rate of junior high school graduates has decreased by 4.27 %.

Table 2.3-4 Educational Statistics of Pu’er City in the Last Five Years

Indicator 2014 2015 2016 2017 2018

Dormitory Floorage in Secondary Schools 1307.49 1361.95 1522.5 1683.8 1784.7 (thousand m2)

Dormitory Floorage in Primary Schools 1199.3 1267.6 1402.9 848.4 1666 (thousand m2)

Enrollment Rate of School Age Children 997.3 997.7 998.7 999 999.4 (%)

Enrollment Rate of Primary School 981.3 980.2 983.7 988.1 990.9 Graduates (%)

Gross Enrollment Rate of Secondary 1070.6 1070 1090 1110 1130.5 School (%)

Enrollment Rate of Secondary School 691.5 680.5 699.7 717.1 674.4 Graduates (%)

Gross Enrollment Rate of High School 695.4 702.6 700.3 662.7 741.7 (%)

Note: The data are provided by Education Bureau of Pu’er.

(2) Science and Technology

In 2018, 214 scientific and technological projects were implemented, with an investment of CNY 41.848 million, an increase of 3.8%. 463 patent applications were filed and 359 patents were granted, an increase of 74 from the previous year. By the end of the year, Pu’er had six independent research and development institutes, with

257 employees (including 213 professional technicians). Those institutes conducted 45 research projects, had 68 scientific papers published, and invested CNY 83.37 million.

In 2018, Pu’er saw an increase in the number of scientific and technological projects, patent grants, and investment in science and technology, but the number of patent applications and papers had declined.

Table 2.3-5 Development in Science and Technology

Item 2014 2015 2016 2017 2018

Implemented S&T Project 143 140 135 139 214

Invested Fund (thousand yuan) 27,330 44,680 43,360 40,320 41,848

Applied patent 247 350 484 494 463

Granted patent 126 240 255 285 359

Papers of science and technology 56 80 74 91 68

Note: The date are from National Economic and Social Development Statistical Bulletin of Pu’er City (2018).

(3) Culture and Sports

The city carried out extensive public fitness activities, and organized the fourth 86

nationality sport games, the second Pu’er marathon, and the grand triathlon games. The athlete team of Pu’er ranked the eighth in the Provincial Games and fifth in the

Provincial Nationality Games, and for the first time won a gold medal in Yunnan

Paralympic Games. The China-Laos-Vietnamese Carnival of Bag-Throwing was rated as a boutique event of sports and tourism of China. The Oath of National Unity was played on China Central Television, the dance named Wa People Were Singing a New

Song Again was selected as the national art work of real theme, Pu’er City Record was edited, the magazine of Pu’er Coffee was published, and the application of the Ancient

Tea Forest of Jingmai Mountain as an UNESCO World Heritage Site was progressing steadily. By the end of 2018, there were 15 art performance groups, 11 cultural centers,

11 public libraries and eight museums. The city’s radio and television coverage rate reached 97.46% and 99.4% respectively. There were 17 FM and TV broadcast transmitter stations, seven medium and short wave broadcast transmitter stations, and

198.056 million users of digital TV. 18 sport games and 133 modern sports activities were organized in 2018. Pu’er’s athletes won 31.5 gold medals, 11 silver medals and

30 bronze medals in provincial competitions.

2.3.4 Livelihood and Social Security

(1) Employment Environment

In 2018, the total number of workers in the whole society was 1.8902 million, an increase of 43,800 from the previous year. Among them: 1.174 million were employed in the primary industry, a decrease of 2,300 over the previous year; 0.1856 million were employed in the secondary industry, an increase of 11,500; and 0.5306 million were employed in the third industry, an increase of 34,600. The number of the new employed in urban areas was 17,388, the number of reemployed was 4,930, and 154,800 people were employed through the special action plan for rural labor transfer program. By the end of 2018, 10,973 people registered unemployed in urban areas, and the

unemployment rate was 3.29%, the same as the previous year. The annual labor productivity was CNY 35,048/person, an increase of 3.6% over the previous year.

(2) Livelihood

The annual per capita disposable income of urban residents was CNY 29,088, an increase of 8.3% over the previous year. That of rural residents was CNY 10,386, an increase of 9.5%. Per capita consumption expenditure of urban residents was CNY 19,962, an increase of 15.1%, and that of rural residents was CNY 9,294, an increase of 35.6%. The average annual salary of employees in the city was CNY 83,510, an increase of 3.2%.

Table 2.3-6 Statistics of Living Condition

Item 2014 2015 2016 2017 2018

Per capita disposal income of regular urban 21,058 22,830 24,795 26,853 29,088 residents (yuan)

Per capita disposal income of regular rural 7,096 7,914 8,669 9,484 10,386 residents (yuan)

Per capita consumption expenditure of 13,210 14,507 15,762 17,349 19,962 regular urban residents (yuan)

Per capita consumption expenditure of 5,041 5,761 6,395 6,853 9,294 regular rural residents (yuan) average annual salary of employees (yuan) 39,311 48,969 66,033 80,910 83,510

Note: The date are from National Economic and Social Development Statistical Bulletin of Pu’er City (2018).

(3) Social Security

By the end of 2018, 1.6854 million people had joined urban pension insurance, a year-on-year increase of 0.116 million. Among them, 0.1457 million were enterprise employees, an increase by 3,400, and 1.4105 million joined pension insurance for urban and rural residents, an increase by 0.1093 million. The number of people covered in the basic medical insurance for urban employees was 0.2144 million, an increase of 4,000,

and that covered in the basic medical insurance for urban and rural residents was 2.1862 million, a decrease of 18,500. 0.119 million people joined unemployment insurance, an increase of 6,000. 0.1881 million people joined work injury insurance, an increase of

11,900. 0.1459 million people joined maternity insurance, an increase of 3,500.

2.3.5 AIDS and Drug Prevention

(1) Anti-Drug

Since it borders with three countries and is adjacent to the “Golden Triangle” of overseas drug sources, Pu’er has always been a key region of anti-drug work, especially the area along MM Road, where live many drug addicts. Besides preventing drug from entering China, the city has also paid close attention to banning drug-making compounds (raw materials for synthetic drugs) from flowing outside. Since 2016, under the deployment of the Provincial Party Committee and the Provincial Government,

Pu’er Municipal Party Committee and the Municipal Government have organized the fourth anti-drug war for a period of five years. A total of 3,271 drug crimes have been solved, 2,925 suspects arrested, and 13.8 tons of drugs seized. Pu’er has made great contributions to the international and national anti-drug work. On December 22, 2018, the Public Security Bureau of Pu'er City successfully detected a large drug smuggling case and seized 348.457 kg drugs. On May 10, 2019, the Municipal Public Security

Bureau cracked a target case, arresting 29 suspects, seizing 210 kg drugs, confiscating two guns and 22 bullets.

At the same time, the city has deepened international anti-drug cooperation, conduced regular exchanges with the local governments and police of Myanmar, Laos, and Vietnam, and carried out 20 border anti-narcotics talks, 38 joint anti-drug operations. It had law enforcement cooperation with Myanmar police to have arrested

67 oversea drug dealers, destroyed four drug manufacturing plants, and seized 1.98 tons of drugs, 126.77 kg of raw materials, two standard pistols and 34 bullets. The Chinese 89

and Lao police jointly eradicated 23.13 ha of poppies in Laos, which were around 10.84 million poppy plants.

32 Pu’er enterprises planted 84,667 ha of alternative crops in northern Myanmar and Laos, and established three alternative development demonstration parks. The city donated anti-drug equipment worth of over CNY 2.3 million to Laos’ Funsari Province to help carry out AIDS surveillance, and helped train more than 50 anti-drug personnel from Laos Funsari Province and Myanmar.

In addition, the city has paid close attention to drug prevention education to the youth, and has covered all the primary, middle, secondary vocational schools, and higher education schools through its June 27 Program. It has organized 661 sessions of anti-drug publicity activities, and 94 anti-drug training courses, built rehabilitation centers and facilities for sick drug abusers, which had received 5,499 drug addicts.

Since 2011, the anti-drug work of Pu’er has ranked at the forefront in the comprehensive assessment across Yunnan, and has been awarded and praised by the

National Drug Control Commission, the Ministry of Public Security, the Provincial

Drug Control Commission and the Provincial Public Security Department.

The household survey shows 41.11% of the sample households have been involved in anti-drug propaganda and training.

(2) HIV/AIDS Prevention

Pu’er is located in the southwestern frontier of China, bordering Laos, Vietnam, and Myanmar. The underdeveloped region hosts 26 ethnic minorities, and faces grim situation of AIDS prevention and control. In order to fight the war against AIDS, Pu’er has formulated Implementation Plan of the 4th People’s War against AIDS and has made budget at the criteria of CNY 1.5 per resident per year. The front-line staff engaged in

AIDS prevention and treatment can receive the second-class epidemic prevention

allowance of CNY 154/person/. Meanwhile, Pu’er has formulated Evaluation System of Reward and Punishment for Performance in Fulfilling Drug Prevention

Responsibilities to reward organizations and front-line medical workers who have fulfilled the annual objectives for drug prevention work.

After years of hard work, AIDS control was stable in 2018. The rapid detection points have covered 100% of the townships and extended to the village level. A prevention and control mechanism with government leading, departments charging, and the whole society participating has been formed. On the World AIDS Day in 2018,

Ximeng County hung one banner, placed six exhibition boards, and distributed more than 7,000 copies of promotional materials and 2,000 condoms. 20 people consulted and tested. Over 2,500 people were engaged in the publicity activities.

The Red Cross Society of Menglian County promoted HIV/AIDS prevention and control work through projects. It trained 1,009 people in 10 AIDS prevention training for beginner drivers, had face-to-face intervention for 300 people, and mobilized 200 people to have HIV test. It interviewed 992 people for their knowledge on HIV/AIDS, handed out 1,009 publicity materials and 300 commemorative cups. It has also promoted AIDS prevention by posting posters, and distributing publicity materials in local communities, and organizing drama shows in primary and middle schools.

During the implementation of integrated regional road development project, all the bidding documents and contracts have included trainings on awareness of AIDS prevention and sexually transmitted infection (STI). Till Q2 of 2018, 15 trainings (14 in NJ Road project and one in MM Road project) for workers were held by contractors of the two regional roads. The cumulative number of trainings was 147 (including 61 in NJ Road project and 86 in MM Road project), including drug prevention, sanitation and healthcare, HIV/AIDS, safety in construction, environmental protection etc. The monitoring group did not receive data on HIV/AIDS and STI training from the

contractors.

979 copies of materials were distributed in the two regional road projects. All the work sheds were sprayed by contractors for 279 times. The work shed at section 1 and

3 of NJ Road 1 were sprayed for 30 times, the most frequent among all the sections.

810 condoms (200 in this monitoring period) and 234 sets of mosquito nets (56 in this monitoring period) were distributed in the two regional road projects. By far, no serious disease was reported from contractors and project supervision to PMO.

Household survey shows 50% of the sample families were involved in AIDS prevention publicity and training. On-site investigation shows 95.93% of interviewees knew about AIDS, and 91.52% of them knew how to prevent AIDS.

2.3.6 Anti Human Trafficking

Field survey shows the major issue of human trafficking was illegal labors, especially those from Myanmar. Pu’er has cracked illegal entry, illegal residence, and illegal employment by tightening border patrol, investigating the key industries, screening rental houses, construction sites and other major sites, and implementing registration and report for floating population. Those who enter, resident and work illegal will be repatriated immediately.

Household survey shows 29.33% of sample families were involved in anti human trafficking propaganda and training. In 2018, the Border Management Detachment of

Pu’er repatriated a total of 1,111 people. Meng’a Border Police Station alone carried out five centralized inspection operations, inspected 21 key industry sites, and repatriated 53 Myanmar people.

3. Result of the Project

3.1 Regional Transport

3.1.1 Mileage of Road Transport

Road transport which is the primary way for passenger transport and freight transport in Pu’er City is closely related to the economic development and poverty alleviation. In 2018, the traffic mileage of Pu’er had increase of 1,408 miles, with an increase rate of 6.74% to 22,312 miles, among which the mileage of classified highway had increase of 1,476 miles with an increase rate of 8.53% to 18,772 miles and the mileage of non-classified road had decrease of 69 miles, with an decrease rate of 1.91%.

Table 3.1-1 The Length of Road Transport in Pu’er

(Unit: miles)

Second- Fourth- Traffic Classified First-Class Third-Class Substandar Year Indicator Freeway Class Class Mileage Highway Roads Roads d Roads Roads Roads

Length of road transport of Pu’er 20,373 16,002 200 5 897 544 14,357 4,371 2015 Ratio to Traffic Mileage - 78.55% 0.98% 0.02% 4.40% 2.67% 70.47% 21.45%

Length of road transport of Pu’er 20,236 16,205 200 5 966 608 14,427 4,030 2016 Ratio to Traffic Mileage - 80.08% 0.98% 0.02% 4.77% 3.00% 71.29% 19.92%

Length of road transport of Pu’er 20,904 17,296 200 18 1,023 636 15,419 3,609 2017 Ratio to Traffic Mileage - 82.74% 0.96% 0.09% 4.89% 3.04% 73.76% 17.26%

Length of road transport of Pu’er 22,312 18,772 231 22 1,026 845 16,648 3,540

2018 Ratio to Traffic Mileage - 84.13% 1.04% 0.10% 4.60% 3.79% 74.61% 15.87%

Increase 1,408 1,476 31 4 3 209 1,229 -69

Increase rate 6.74% 8.53% 15.50% 22.22% 0.29% 32.86% 7.97% -1.91%

Note: Statistics of 2018 were from Yunnan Provincial Statistical Yearbook (2019).

During the whole monitoring period, the traffic mileage in the project area kept growing with improvement in road quality.

Chart 3.1-1 The Growth Trend of Mileage of Road Transport of Pu’er City

(Unit: miles)

25,000

20,000

15,000

10,000

5,000

0 2015 2016 2017 2018

Length of road transport Classified Highway Substandard Roads

Among the classified highway, roads for 231 miles were open to traffic, with an increase rate of 15.5% year over year. Mileage of all levels of highway had large growth since the monitoring has been started. Details are shown in Chart 3.1-2.

Chart 3.1-2 The Growth Trend of Classified Highway in Pu’er City

(Unit: miles)

1200 1000 800 600 400 200 0 2015 2016 2017 2018

first-class highway second-class highway third-class highway freeway

Meanwhile, Pu’er has also paved hardened roads for 2,343 miles in areas for ethnic minorities that evolve “straightly” from primitive society to socialist society, regions of ethnic minorities of small population and natural villages with relatively large population along the border areas, which has improved the poor local transportation of ethnic minority areas and other areas of underdeveloped transportation.

3.1.2 The Number of Civilian Vehicles

By the end of 2018, the number of civilian vehicles in Pu’er City has reached

267,100, among which 832,800 were motorcycles. Meanwhile, 822,200 people were drivers with motor vehicle driving licenses, among which 400,300 were drivers with car driving license. The number has greatly increased in this year.

Table 3.1-2 The Number of Civilian Cars in Pu’er

(Unit: thousand )

Number of Number of Number of Number of Rate of increase Civilian Civilian Civilian Civilian Item (comparing Cars in Cars in Cars in Cars in with last year) Pu’er (2015) Pu’er (2016) Pu’er (2017) Pu’er (2018)

I. Civilian Cars 186.8 216.9 246.9 267.4 8.30%

1:Passenger cars 133.6 159.2 184.1 205.1 11.39%

Including: 0.8 0.8 0.9 0.9 -1.21% Large-size

Medium-size 1.1 1.1 1.1 0.9 -15.41%

Small-size 129.8 155.7 180.9 202.4 11.87%

Including： 63 71.4 79.3 86.9 9.53% sedans

2. Trucks 51 55.3 60.3 59.8 -0.78%

Including: large-size 3.2 4.1 5 5.6 12.83%

Medium-size 7.3 7.6 7.7 5.7 -26.13%

Small-size 40.4 43.6 47.6 48.4 1.71%

3. Other cars 2.1 2.5 2.5 2.5 -0.08%

II. Motorcycles 702.9 640.3 792.7 832.8 5.06%

III. Cargo trailers 0.2 0.3 0.4 0.5 24.38%

IV. Automobile drivers 696.9 743.8 779.2 822.2 5.52%

including：car drivers 312 347.5 369.6 400.3 8.31%

Note: from Yunnan Provincial Statistical Yearbook (2019)

During the monitoring period, the number of civil automobile ownership kept

increasing, and the number of citizens who worked as drivers has increased largely as

well. Details are shown in Chart 3.1-3.

Chart 3.1-3(1) The Growth Trend of the Number of Cars Owned by Pu’er Citizens

250000

200000

150000

100000

50000

0 2015 2016 2017 2018 passenger cars sedans trucks

Chart 3.1-3(2) The Growth Trend of Automobile Drivers

900000 800000 700000 600000 500000 400000 300000 200000 100000 0 2015 2016 2017 2018 automobile drivers car drivers

3.1.3 Cargo Freight Volume

In this period, Cargo transport got better development and the cargo freight volume

and turnover have greatly increased. According to the transport management

department of Pu’er, the cargo freight volume has increased by 15.74% to 33.38 million

tons; the cargo freight turnover, 16.54% to 5,158.434 million ton kilometers while the

average cargo transportation distance has decreased by 0.03% to 154.29 miles.

Table 3.1-3 Road Cargo Freight Volume in the Project Area

Item Cargo freight volume Cargo freight turnover Average haul distance

(thousand tons) （thousand ton km） (km)

Increase Increase Increase 2017 2018 2017 2018 2017 2018 Area Rate Rate Rate

Ning’er 2,860 3,510 22.73% 516,960 603,140 16.67% 1,810 171.83 -5.06%

Mojiang 2,970 35,00 17.85% 555,030 648,604 16.86% 1,870 185.32 -0.90%

Jingdong 3,920 4,390 11.99% 578,850 670,160 15.77% 1,480 152.66 3.15%

Jinggu 4,260 4,770 11.97% 633,920 727,270 14.73% 1,490 152.47 2.33%

Zhenyuan 3,160 3,690 16.77% 465,920 547,050 17.41% 1,470 148.25 0.85%

Jiangcheng 2,380 2,810 18.07% 360,210 424,940 17.97% 1,510 151.22 0.15%

Menglian 2,970 3,460 16.50% 378,990 446,930 17.93% 1,280 129.17 0.91%

Lancang 4,110 4,510 9.73% 603,730 700,040 15.95% 1,470 155.22 5.59%

Ximeng 2,210 2,740 23.98% 332,900 390,300 17.24% 1,510 142.45 -5.67%

Total 28,840 33,380 15.74% 4,426,520 5,158,434 16.54% 13,890 154.29 -0.03%

Note: from transportation management department.

3.1.4 Passenger Transportation in the Project Area

3.1.4.1 Passenger Transportation Service in the Project Area

The road transportation facilities has been improved a step further. Compared with

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the condition before the project in 2015, the indicators related to rural road construction

like the number of passenger transport lines, inter-provincial lines and rural lines have

increased to a certain degree, especially that the number of rural passenger cars to

administrative villages have increased from 738 which was the data during the baseline

monitoring period to 956 now, which has greatly facilitated the farmers in the project

area for going out.

Table 3.1-4 Passenger Transport in Pu’er City

Rural Rural Passenger Passenger Inter- Inter- Rural Intercity Rural Passenger Cars to Year Transport provincial county Passenge Lines Lines Cars to Administrative Lines Lines Lines r cars Counties Villages

2015 508 4 85 83 336 1131 103 738

2016 517 4 93 74 346 1224 103 828

2017 519 4 95 75 345 1140 103 1040

2018 532 4 89 71 368 1093 103 956

Increase 13 0 -6 -4 23 -47 0 -84

Rate of 2.50% 0.00% -6.32% -5.33% 6.67% -4.12% 0.00% -8.08% increase14

Note: from transportation management department.

3.1.4.2 Passenger Capacity in the Project Area

The number of coach stations in the project area decreased because of the

influence of project construction and in 2018, the person-time of passengers has

increased by 0.56% to 10.74 million and the passenger turnover has increased by 0.89%

to 928.787 million passenger kilometers.

14 compared with last year

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Table 3.1-5 The Number of Coach Stations in the Project Area

Area Year 2016 2017 2018

Ning’er 11 11 11

Mojiang 15 15 14

Jingdong 13 13 11

Jinggu 17 10 12

Zhenyuan 12 12 9

Jiangcheng 7 6 4

Menglian 7 7 7

Lancang 20 19 18

Ximeng 7 4 9

9 Counties in total 109 97 95

Note: from the Internet.

Table 3.1-6 Transport Capacity of Roads in the Project Area

Indicator Passenger volume Passenger turnover

(thousand person-time) (thousand passenger km)

Area 2017 2018 Increase Rate 2017 2018 Increase Rate

Ning’er 1,370 1,350 -1.46% 117,540 120,503 2.52%

Mojiang 1,410 1,400 -0.71% 129,250 123,633 -4.35%

Jingdong 1,440 1,420 -1.39% 102,810 106,833 3.91%

Jinggu 1,510 1,410 -6.62% 91,270 81,993 -10.16%

Zhenyuan 1,050 1,010 -3.81% 89,490 102,363 14.38%

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Jiangcheng 790 940 18.99% 74,410 79,583 6.95%

Menglian 960 1,030 7.29% 100,890 102,273 1.37%

Lancang 1,450 1,390 -4.14% 147,740 134,473 -8.98%

Ximeng 710 790 11.27% 67,200 77,133 14.78%

9 Counties in 10,680 10,740 0.56% 920,600 928,787 0.89% total

Note: from transportation management department of Pu’er government.

3.1.5 Local Road Maintenance

During the baseline report period and the first monitoring peiord, it was found that apart from efforts made by maintenance stations, volunteer villagers from each villages and towns also participate by doing some simple maintenance work and cleaning for town-level and village-level roads. Field investigations showed that no village has applied an unified road maintenance system, organized road maintenance trainings or arranged any special person for village road maintenance. No farmer has gotten payment from road maintenance work.

Along with the implementation of this project, villages have started to organize professional groups for rural road maintenance step by step. From the field investigation in 2018, a small part of the interviewed villages had organized rural road maintenance. In 2019, village-level road maintenance systems have been primarily built and the indicators related to this have been improved, compared with last year.

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Table 3.1-7 Response of Interviewed Villages on Road Maintenance

(the percentage of affirmative answer)

Year 2018 2019 2016 2017 Indicator (percentage) (percentage)

formal organization for road 0 0 29.41 62.5 maintenance

road maintenance group 0 0 47.06 43.75

financial subsidy for road 0 0 23.53 50 maintenance

trainings on road maintenance 0 0 17.65 50

3.2 Transport Utilization of Farmers in Pu’er City

From the latest field investigation, the most frequently applied transportation has changed from walking to driving (accounting for 74.44% of the questionnaire samples).

It is shown that the traffic in the project area has been clearly improved that farmers are inclined to apply vehicles of higher speed.

3.2.1 Transportation Vehicles in Families

The statistics from field interviews showed that the rate of families owning transport vehicles has increased from 84.02% to 90.22% (87.79% were ethnic minority families).

Analysis on the 3 subprojects showed that the vehicle owning rate in MM Road project has increased obviously while that of rural road project has decreased slightly along with the progress of construction work, which have reflected the condition of local road construction and convenience in trips. 104

Case 1 for Illustration

During the investigation in Huijiang Village of Meng’a, the investigation group have found that almost all the sample families have cars. Villagers also said that the road construction has brought convenience that the local agricultural products and specialties can be transported out of the mountains in time, which has promoted the economic development in rural areas but also the development of rural industries and adjustment in industries.

Table 3.2-1 Vehicle Owning Rate in Families in the Project Area

(Unit: %)

Rural Roads NJ Road MM Road Project 2017 2018 2019 2017 2018 2019 2017 2018 2019

Percentage 86.67 96.67 84.83 84.33 96.47 95.5 96.3 92.59 94.44

Note：The data were from questionnaires.

The vehicle owning rate of ethnic minority families were generally similar to that of common families; however, the owning rate of motor tricycles in poor families and families receiving lowest allowance is much higher while that of sedan, mini vans and trucks are lower.

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Table 3.2-2 Categories of Transport Vehicles Owned by Interviewed Families

(Unit: per household)

2019

Vehicles In ethnic In poor families and families In all families minority families with low-income insurance

bicycle/tricycle 0.04 0.03 0

scooter 0.05 0.06 0

Motor tricycle 0.08 0.09 0.13

motor cycle 1.1 1.18 1.04

Agricultural 0.17 0.20 0.13 vehicle/tractor

sedans/minivan 0.25 0.23 0.15

truck 0.03 0.03 0

Note: The data were from questionnaires.

3.2.2 Transportation of Agricultural Product

The investigation have found that when there was need for transporting agricultural products, the way farmers applies have been changed from relying on the buyers to self-driving. Compared with last year, while farmers choices of self-driving kept increasing, the percentage of relying on buyers’ transportation has also increased to a certain degree.

Table 3.2-3 Ways of of Transporting Agricultural Products in the Project Area

(Unit: %)

Percentage（%） Way of Transporting 2018 No. Agricultural Ethnic 2016 2017 Number of Products minority samples families

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1 Self-driving 14.24 54.3 54 57.43%

Cars of Relatives 2 1.55 3.17 3.33 2.64% or Friends

Buyers’ Coming to the Farmers’ and be 3 62.54 23.3 31.78 30.36% Responsible for Product Transportation

Regular Shuttle 4 0.62 2.04 5.11 3.63% Bus

5 Others 21.05 9.5 4.67 4.29%

Note：The data were from questionnaires.

3.2.3 Impact on Farmers’ Trips

Though investigation on indicators like the trip extension, time and financial expenditure on trips, the monitoring group made analysis on the project impact to the going-out of farmer households. From the monitoring result, the trip extension have clearly been enlarged, few time was spent on trip obviously while the financial expenditure had no clear drop.

3.2.4.1 Monitoring on Trip Extension

Through analysis on whether the trip extension of farmer households was affected by project construction based on monitoring on the farthest destination of the interviewees, the monitoring group found that the most obvious increase in farthest destination has changed from places in Yunnan Province (outside Pu’er) to places outside Yunnan Province. The trip extension of farmer households in the project area was enlarged a step further and farmers were more willing to go out.

Table 3.2-4 Analysis on the Trip Extension of Farmer Households

in the Project Area

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(Unit: %)

Local Road NJ Road MM Road Farthest

Destination 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Neighbouring 2.27 0.61 3.5 0.56 2.78 0.56 0.84 2.22 0.83 2.53 2.44 2.22 Villages

County 14.55 9.76 5.5 5 1.67 2.22 6.7 1.67 8.33 25.32 16.26 7.78

Pu’er 21.36 17.07 15 13.89 20.56 11.11 8.79 7.22 71.67 26.58 28.46 25.56

Other Places 45.45 61.59 71.5 12.22 54.44 68.89 73.22 31.67 17.5 29.11 25.2 25.56 in Yunnan

Out of 14.09 9.76 4.5 54.44 20.56 16.11 10.46 38.33 1.67 16.46 27.64 31.11 Yunnan

Note: The data were from questionnaires.

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3.2.3.1 Times of Trips

The times of trips made by farmers in the subprojects has increased comparing with that of last year, and some indicators even have surpassed the level in the period of baseline monitoring, which all have shown that the use ratio of on roads have increased greatly.

Table 3.2-5 Times of Trips Made by Farmers in the Project Area

(Unit: times)

Trip Rural Roads NJ Road MM Road Destination 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Times of Round Trips to 11.78 4.51 7.01 7.24 5.68 6.4 9.65 9.15 19.93 5.57 10.47 0.9 neighbouring Villages

Times of Round Trips to 6.24 3.87 7.63 2.7 5.78 5.2 11.56 7.8 6.46 5.01 8.10 3.63 Village

Times of Round 2.7 0.77 6.46 0.77 6.02 3.32 10.52 3.93 1.43 2.48 4.47 1.97 Trips to Town

Times of Round 0.21 0.09 0.04 0.04 0.6 0.29 0.54 0.29 0.04 0.16 0.28 0.12 Trips to Pu’er

Note: The data were from questionnaires.

3.2.3.2 Time and Cost on Trips

Compared with the condition before baseline report, the time farmer households spent on trips were consistent or shorter than that before the implementation of the project, except that the time to the county neighbouring villages that farmer households of MM Road project spent on trip hasn’t been restored. It is believed that along with the completion of the project this can be greatly improved and the time on trip can be shortened.

Table 3.2-6 Time Spent on Trips of Farmers in the Project Area

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(Unit: mins)

Trip Rural Roads NJ Road MM Road Destination 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

neighbouring 97 37 31 23 29 27 32 19 12 42 109 21 Villages

Village 149 82 84 64 56 45 68 46 33 39 178 26

Town 239 176 173 200 160 114 171 162 107 131 396 149

Pu’er 672 449 1475 - 379 318 383 320 720 480 1236 423

Note: The data were from questionnaires.

Most of the financial expenditures of farmer households have decreased, and the expenditure on trip to neighbouring villages has dropped greatly in particular. Meanwhile, the different categories of expenditure in MM Road project that had soared in the last two monitoring period was restored in this period.

Table 3.2-7 Expenditure on Trips of Farmers in the Project Area

(Unit: yuan)

Trip Rural Roads NJ Road MM Road

Destination 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 neighbouring 16 16 15 4 12 22 23 3 3 13 39 4 Villages

Village 57 65 40 21 19 23 39 40 9 32 89 9

Town 102 69 69 66 33 39 71 76 23 64 183 53

Pu’er 271 161 - - 73 102 136 166 400 248 689 400

Note: The data were from questionnaires. Data from Internet showed that the traffic mileage from Pu’er to Ning’er, Mojiang, Jinggu, Jiangcheng have been slightly shortened and that to Menglian has greatly shortened while the traffic mileage from Pu’er to Zhenyuan and Jingdong have been prolonged, which has caused certain inconvenience to local people.

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Table 3.2-8 Traffic Milage

Milage (miles) Item 2017 2018 2019

From Pu’er to Ning’er 45 45 42

From Pu’er to Mojiang 158 158 156

From Pu’er to Jingdong 250 250 308

From Pu’er to Jinggu 138 138 134

From Pu’er to Zhenyuan 182 182 242

From Pu’er to Jiangcheng 147 147 145

From Pu’er to Menglian 286 235 228

From Pu’er to Lancang 176 176 179

From Pu’er to Ximeng 235 235 235

9 counties in total 179.67 174.00 185.44

Note: The data were from Internet.

3.2.4 Farmers’ Degree of Satisfaction on Traffic Condition

3.2.4.1 Degree of Satisfaction on Road Condition

Generally speaking, the farmer households’ satisfaction degree on road condition has become higher that in the last year. Among the three subprojects, the overall satisfaction on rural road project was highest and MM Road project, lower.

Table 3.2-9 Satisfaction Degree of Farmers in the Project Area

(Unit: %)

2019

Item 2017 2018 Rural NJ MM Total Roads Road Road

Have the roads they Yes 62.26 42.76 44.97 62.36 43.02 14.44 usually take satisfied their need for trips? No 34.99 56.33 55.03 37.64 56.98 85.56

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Yes 57.85 43.44 53.24 61.24 64.80 14.44 Are the roads they usually take safe? No 39.94 55.66 46.76 38.76 35.20 85.56

Do the regular roads Yes 56.75 44.8 66.21 68.72 87.08 16.67 they usually take have useful traffic signs? No 39.67 54.52 33.79 31.28 12.92 83.33

Note: The data were from questionnaires.

3.2.4.2 Analysis on Reasons for Dissatisfaction

In the subprojects, interviewed households in rural road project considered that roads to neighbouring villages were the most inconvenient; NJ Road project, roads to the towns and the county. 74% of the farmer households in MM Road project considered the way to the county the most inconvenient.

Case 2 for Illustration

During the field investigation in state-run farm, the monitoring group found that because of the construction, the previously flat road has become lower than before with the curb too high. What’s more, the spoil ground stuck the road without any makeup facilities (there was a ladder on it till the National Day), which has caused much inconvenience to local people’s daily life for they had to detour, and one old man in Menglian State-run Farm even broke the leg because of the road project.

Apart from the above, employers also reported problems of increase in the ticket fare of bus, fast speed of passing cars, too many potholes on the road, less traffic signs, low construction progress, and irresponsibility of construction group etc.

Table 3.2-10 The Most Distinctive Inconvenience in Traffic Considered

(Unit: %)

Destinatio Rural Roads NJ Road MM Road

n 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

To 46 41 75 43 34 38 50 18 4 24 11 14 neighbou 112

ring Villages

To 43 21 0 23 21 19 16 41 12 23 26 11 Village

To 11 30 25 11 44 27 38 36 58 39 60 74 County

To Pu’er 0 0 0 0 1 3 1 1 26 9 3 0

Note: The data were from questionnaires As for the investigation on inconvenience on roads, the monitoring group offered four options; however, two of the options (no accessible in bad-weather days/prone to traffic accidents) was chosen by farmer households during the monitoring period of 2018, towards which farmer households in the three subprojects showed collective opinion.

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Table 3.2-11 Reasons for the Dissatisfaction from Farmers in the Project

Area

Rural Roads NJ Road MM Road Reason 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

No Crossing/ 10 7 2 1 2 7 3 4 27 19 1 10 Detour

Poor Pavement 77 79 99 99 95 77 94 96 71 68 99 90 Quality

Note: The data were from questionnaires.

3.2.4.3 Feedback on Project Construction

On the one hand, farmer households hold positive attitude towards the road

improvement brought about by this project, especially 91% of the interviewed farmer

households in MM Road project. On the other hand, the interview showed in some

aspects that local rural road condition was still poor that farmer households anticipated

the improvement in road condition.

Table 3.2-12 Issues that Farms in the Project Area consider solvable

(Unit: %)

Rural Roads NJ Road MM Road

Item 201 201 201 201 201 201 201 201 201 201 201 201 6 7 8 9 6 7 8 9 6 7 8 9

Higher 24 76 89 76 29 79 77 82 45 53 74 70 safety

Road condition 45 80 64 43 57 86 62 82 45 80 76 91 improvemen t

More job 15 27 27 5 16 17 17 26 2 15 20 18

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Case 3 for Illustration

During the field investigation in Hegexin Village, the monitoring group found that the accessibility of rural roads has been greatly improved, which has facilitated the farmers. However, the following problems existed still: firstly, the insufficient percentage of harden work of village-level roads caused inconvenience; secondly, there were security risks for few traffic signs were quipped on the construction section; thirdly, protective measures against slide were not prepared at some slopes.

opportunity

Much convenience 17 38 57 26 26 29 43 36 13 66 73 31 in Trade

Note: The data were from questionnaires. 3.2.4.4 Problem Caused by Road Construction on Interviewees and Solutions

Based on the impact to interviewees, inconvenience in traffic, production and going-out were still the most distinct problems, especially to the interviewed households in MM Road project. 86% interviewed households reporting this problem proved the pervasiveness of inconvenience on roads among local people. Among the three subprojects, impact to interviewees of rural road project were relatively light and problems of interviewees of NJ Road project were mainly the damage to infrastructure such as roads, ditches etc.

Table 3.2-13 Problems caused to Farmer Households in Project Construction

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(Unit: %)

Rural Roads NJ Road MM Road Problems 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Illegal Land 29 51 51 27 24 49 28 38 59 18 42 19 Acquisition

Roads, ditches etc. 25 17 22 11 37 23 45 69 27 27 57 17 to be Destroyed

House Damage (Not 11 5 15 0 16 13 7 18 37 11 18 4 Demolition )

Crop Yield or Crop 22 26 13 31 13 13 10 21 33 13 39 18 Quality to be affected

Environme ntal 16 24 3 9 34 26 16 33 24 43 57 44 Pollution

Noise/Con struction at 14 10 2 0 34 20 7 15 37 44 42 34 Night

Traffic/Inc onvenience 41 68 27 53 40 61 54 68 74 73 76 86 in going- out

Others 19 10 1 0 11 5 0 0 0 3 8 0

Note: The data were from questionnaires.

Compared with last years, farmer households were incline to solve problems by

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themselves when affected by construction this year.

Table 3.2-14 The Problem-solving Ways of Affected Farmer Households

Percentage（%）

2019 No. Problem-Solving ways 2017 2018 Number of Rural NJ MM Road samples roads15 Road

1 Report To Village cadres 68.28 69.68 57.79 - 81.56 0

Report to the construction 2 47.85 18.1 20.1 - 27.66 1.85 party

3 Reporting to project staff 23.66 7.24 5.03 - 7.09 0

4 Solve by themselves 10.75 15.38 50.25 - 34.75 94.44

5 others 17.74 11.76 3.52 - 4.96 0

As for whether the problems above can be solved in time, the conditions of the

tree subprojects are different. Rural road project and NJ Road project implemented well

that most of the problems can be solved int time. However, 82.5% of the households in

MM Road project considering that the problems won’t be solved timely echoed the

information in the previous part that 94.44% of the farmers chose to solved by

themselves, to which related parties should pay attention.

Table 3.2-15 Farmers’ Degree of Satisfaction on Problem Solving

Percentage（%）

2019 No. Question Answer 2017 2018 Number of Rural NJ MM Samples Roads Road Road

15 For 97.78% of the interviewed households of rural road project expressed no impact to their life, no household sample was collected from field investigation. The condition in the flowing Table 3.2-18 was the same.

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1 Have the Yes 51.08 52.04 67.98 - 82.61 17.5 problems been 2 solved in time? No 36.02 33.94 32.02 - 17.39 82.5

Yes 58.06 53.39 68.8 50.0 66.7 100.0 Has the 3 temporary land No 16.67 26.24 12.5 25.0 11.1 0.0 requisition 4 been No restored?16 / / 18.8 25.0 22.2 0.0 answer

Statistics of village-level investigation showed that the restoration percentage of temporary land acquisition has increased. In the three subprojects, MM Road project has been implemented well while the problem of untimely restoration of temporary land acquisition existed in NJ Road project and rural road project.

The monitoring group have found that those transport vehicles commonly seen around the new houses of relocatees included agricultural tractors, transport tractors, motorbikes, farm vehicles, pick-up cars etc., which reflected that the road improvement work has brought less negative influence to the transport during the course of relocatees’ production.

3.3 Border Transport

In the monitoring phase, the monitoring group has made field investigations on border-centered roads and have found that with the progress of project, traffic limit to two roads were canceled and policy of one-way access was applied to some roads of poor pavement condition. For the work of construction party and effective measures being taken, there was few traffic jam. Even in bad weather such as rainy days, it never occurred that the road was not accessible for days, which has basically guaranteed the accessibility of roads. During the field investigation, the monitoring group witness the

16 In the previous monitoring period, data of this indicator were based on household questionnaires. However, for the few sample households were related to temporary land acquisition and the the answers given by them were based on memory and guess, all the original statistics were replaced by that in the village-level questionnaires to ensure the representativeness of statistics.

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normal clearance of vehicles in Meng’a Port and normal operation of cross-border trade market.

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Picture 3.3-1 Road Condition and Traffic Condition during the Construction

3.4 Traffic Safety in the Project Area

According to the statistics from Traffic Police Divisions of Pu’er City, the indicators of traffic accident rate, rate of death in accidents, rate of injury in accidents and economic lost etc. have increased slightly compared with those statistics of 2017 but showed drop compared with that of 2016 while the indicator of economic loss in the project area kept decreasing. Calculated in the total population of the 9 counties

(2.3026 million), the rate of traffic accident has increased from 376.89/100,000 to

409.93/100,000 with an increase rate of 8.77% and the rate of death in traffic accidents has increased from 9/100,000 of last year to 9.21/100,000, with an increase rate of 2.3%.

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Table 3.4-1 Traffic Safety in the Project Area

Economic Loss Item Road Transportation Deaths in Accidents (person) Injuries in Accidents (person) Accidents ( thousand yuan)

Area 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Ning’er 1.54 1.34 1.16 0.06 0.04 0.02 0.47 0.55 0.44 2.9 0.76 0.4

Mojiang 1.74 0.58 0.76 0.04 0.02 0.02 0.66 0.26 0.25 4 0.8 0.9

Jingdong 0.83 0.9 0.97 0.01 0.02 0.02 0.49 0.36 0.41 1.6 1 1.6

Jinggu 1.97 1.28 1.37 0.03 0.02 0.03 0.73 0.54 0.64 2.8 1.4 1.2

Zhenyuan 1.67 1.1 1.26 0.03 0.02 0.01 0.64 0.5 0.37 2.7 2 1.6

Jiangcheng 1.36 1.66 1.65 0.04 0.02 0.02 0.67 0.59 0.48 3.8 2.4 1.4

Menglian 0.83 0.49 0.84 0.03 0.05 0.03 0.49 0.19 0.36 1.1 0.7 0.8

Lancang 1.18 0.89 1.02 0.05 0.036 0.03 0.40 0.3 0.28 3.5 2.7 2.2

Ximeng 1.73 0.98 1.08 0.08 0.04 0.05 0.72 0.4 0.34 4.9 2.4 2.8

9 counties in 1.43 1.02 1.02 0.04 0.07 0.0004 0.59 0.41 0.39 3 1.6 1.5 total

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Simao 1.53 1.84 2.1 0.04 0.02 0.01 0.61 0.59 0.59 2.2 2.8 1.9 District

Pu’er City 1.48 1.24 1.25 0.04 0.025 0.02 0.6 0.44 0.42 2.6 2.8 1.5

NJ Road 1.54 / / 0.06 / / 0.47 / / 2.9 / /

MM Road 1.74 / 0.06 0.04 / 0.003 0.66 / 0.02 4 / 0.04

Note: The data were from Traffic Police Division of Pu’er City.

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Meanwhile, apart from the consistency in accident rate per 100 cars, the indicators of injury rate per 100 cars and rate of economic loss per 100 cars etc. have slightly decreased and the indicator of death rate per 100 cars has obviously decreased, which has proved the improvement in traffic accident in the project area.

Table 3.4-2 Traffic Accident indicators in the Project Area

Item Rate of Economic Loss Accident Rate Per Death Rate Per 100 Injury Rate Per 100 Per 100 Cars 100 Cars Cars Cars (thousand yuan)

2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

Area

Ning’er 1.54 1.34 1.16 0.06 0.04 0.02 0.47 0.55 0.44 0.29 0.076 0.04

Mojiang 1.74 0.58 0.76 0.04 0.02 0.02 0.66 0.26 0.25 0.40 0.08 0.09

Jingdong 0.83 0.9 0.97 0.01 0.02 0.02 0.49 0.36 0.41 0.16 0.1 0.16

Jinggu 1.97 1.28 1.37 0.03 0.02 0.03 0.73 0.54 0.64 0.28 0.14 0.12

Zhenyuan 1.67 1.1 1.26 0.03 0.02 0.01 0.64 0.5 0.37 0.27 0.2 0.16

Jiangcheng 1.36 1.66 1.65 0.04 0.02 0.02 0.67 0.59 0.48 0.38 0.24 0.14

Menglian 0.83 0.49 0.84 0.03 0.05 0.03 0.49 0.19 0.36 0.11 0.07 0.08

Lancang 1.18 0.89 1.02 0.05 0.036 0.03 0.40 0.3 0.28 0.35 0.27 0.22

Ximeng 1.73 0.98 1.08 0.08 0.04 0.05 0.72 0.4 0.34 0.49 0.24 0.28

9 counties 0.000 1.43 1.02 1.02 0.04 0.07 0.59 0.41 0.39 0.30 0.16 0.15 in total 4

Simao 1.53 1.84 2.1 0.04 0.02 0.01 0.61 0.59 0.59 0.22 0.28 0.19 District

Pu’er 1.48 1.24 1.25 0.04 0.025 0.02 0.6 0.44 0.42 0.26 0.28 0.15

NJ Road 1.54 / / 0.06 / / 0.47 / / 0.29 / /

MM Road 1.74 / 0.06 0.04 / 0.003 0.66 / 0.02 0.40 / 0.004

Note: The data are from Traffic Police Divisions of Pu’er City

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4. Project Output

By June 2019, the estimated value of finished works of Yunnan Pu’er Regional

Integrated Road Network Development Project was 1.289 billion yuan and the overall completion percentage of the project was 66.2%, including regional road works for 58.4% and rural road works for 89.4%.

4.1 Regional Road Improvement

4.1.1 Road Construction

NJ Road has finished the investment of 862.89 million yuan (including upfront fee, expenditure on land requisition, house demolition and resettlement), which took up

46.93% of the total. Bidding of the ten subgrade works has been finished and the construction party have went to the sites after the construction contracts have been signed. Among the ten contract packages, contract package 1 and 10 which ranked top have finished 78% and 80% respectively, while contract package 6 which ranked last has finished 21% and the rest have finished 25%-50%. Considering that the whole construction was seriously behind schedule and it is impossible to finish in the rest contract time, contracts for extension have been signed already.

MM Road has 2 subgrade contract packages with contract value of 0.43 billion yuan. By June 30, 2019, 0.402 billion yuan, 93.5% of the total investment, has been invested on the work of subgrade engineering.

Pavement work of regional roads: The bidding documents of MM Road pavement was approved by ADB on Sept. 12, 2018 and the construction work has started on May

6, 2019. By the end of Q3 of 2019, 9% of the construction has been finished. The bidding of NJ Road pavement work has finished.

As of the end of the reporting period, all of the contracts have been tendered and

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the accepted tender values are incorporated into the cost estimate given in Appendix 3.

14 in 15 construction works have been awarded and are substantially completed by the end of the period. One civil works package (LCRR-sub1) contract have not been approved by ADB due to the violation of the ADB’s procurement guidance, and is decided not to finance by ADB. The average value of works completion is 97.5%.

4.1.2 Road Safety

The regional roads are designed according to ChinaRAP level 3. To improve the road safety in project area, PMO has stipulated in the construction contract that the employer should offer a safe working environment and sufficient trainings work and safety. For the sake of traffic safety, all the contractors had arranged safety signs, warning tapes along the construction section and speed bumps at the corners and dangerous places. By Dec. 2019, NJ Road has been equipped with 122 sets of effective speed control measures (including 30 equipped in this monitoring period) and 971 safety signs (38 newly equipped); MM Road has arranged 550 sets of effective speed control measures (416 newly equipped) and 145 safety signs (773 newly equipped)17.

4.1.3 Resettlement

By Sept. 30, 2019, collective land requisition for 439.87 ha in NJ Roads has been finished, which accounted for 98% of the resettlement plan; house demolition for

36,140 m2, 57% of the updated plan.

With no increase in land requisition and house demolition, collective land requisition for 101.2 ha in MM Road has been finished, which accounted for 84% of the resettlement plan; house demolition for 47,625 m2, 109% of the plan.

17 from Quarterly Report (Q4 of 2019)

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Table 4.1-1 Regional Road Condition and Output

Target in Indicator/year 2015 2016 2017 2019 2019

Subgrade construction of all road sub-contractors has Subgrade construction of all road sub-contractors was in the period of 10 subgrade projects have been started and was in the period of earthwork and earthwork and stonework finished the bidding and stonework excavation. By July of 2017, the subgrade Roads for excavation. The construction had contract signing. All the construction work was comparatively behind schedule. no obvious progress and was 234.07 km Road construction parties have Class-4 The road condition during the construction period can seriously behind schedule. All the being conditio started the construction paved road basically meet the need of cars. The road condition road sub-contractors had delivered upgraded to n of NJ extension report. work. For the impossibility from Liming to Baozang Village is comparatively bad standard Road of finishing all the contract Road Construction that landslide is easy to take place in rain season. Taking road accessibility as the highway packages in the rest of the However, the construction party has dealt with this basic principle, the construction class 3-4 party can solve the problems like contract time, extension problem quickly and efficiently so that the road access road landslide in time and contracts have been signed. was guaranteed. guarantee the road accessibility.

By June 2018, 80% of the Class 4 or By the end of June of 2017, more than 70% of the MM Road has two contracted time has passed with unclassified earthwork and stonework excavation has been subgrade contract packages Roads for 66% of the construction work Road road, with contract value of 0.43 48.75 km completed, and some sub-contracts are hard to get finished, which was slightly behind conditio including through because of the muddy road condition. schedule. billion yuan. By June 30, being n of MM two-line 2019, 0.402 billion yuan, upgraded to During the construction period, the Road and one- By December of 2017, the roads were under 93.5% of the total standard roads have met the requirements lane road, construction but can meet passage need of all kinds of investment, has been highway in common vehicles. For the traffic control during the invested on the work of

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condition construction, the time spent on transport has increased for road accessibility with longer subgrade engineering. By level 1-2 with many sharply and traffic ham was quite common in the time in traffic. Sept. 30, 2019, 98% of the (2018) curves and uncontrolled time. contract time has passed trucks while contract package 1 passing has finished 91% of the target; contract package 93%, which was slightly behind schedule.

ChinaRAP group has provided the local designers with

design philosophy of road safety and has made a large Safety- quantity of safety evaluation on the road designs of the Designed according to Reach rating of project, which has greatly raised the safety level of ChinaRAP3; Roads were ChinaRAP regional not started project roads. The safety design of MM Road and NJ under construction. level 3 roads Road adheres to 3-star level which has meet the Road safetyRoad requirements of ADB.

Number By June 2018, 948 pieces of traffic By Sept. 2019, 498 safety of safety By June of 2017, 400 safety signs were used on NJ safety signs were used in NJ Road 152 signs were used on NJ signs on Road; 71, MM Road. project and 145 pieces in MM Road Road; 135, MM Road. roads project.

By the end of June of 2017, 66 effective measures for Number By June 2018, 81 speed-limit By Sept. 2019, 76 effective of 75 speed limit were applied on NJ Road, and 5 on MM measures were used in NJ Road measures for speed limit effective Road. project and 46 in MM Road were applied on NJ Road;

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measure project. 81, MM Road. s for speed limit

Contractors of NJ Road and MM Road have People distributed 100 pieces of getting According to sample data analysis, 21 from 423 According to the statistics of materials of safety random samples, there was one in road samples, accounting for 5%, have participated in road awareness. According to 100 422 samples have been trained with safety safety trainings. sample survey, 33 persons road safety. trainings in the 450 survey samples have received training for road safety.

By June of 2017, different to the planned schedule in Villagers in Ning’er Land for 7.46 ha was newly County rebuild houses on the following aspects: acquisitioned and houses for 842 m2 were demolished in NJ Road their own will; therefore,

Resettlement NJ Road: collective land acquisition went well and Practical project. There was no new land there was no collective schedule house demolition and resettlement have just started. acquisition in MM Road project. resettlement here. House of started Resettlement to housed demolition are mainly in a The relocatees were being resettled demolition for 47,625 m2 resettle and the resettlement work of some dispersive way. For the reasons of agricultural land has been finished in MM ment households have been finished in protection and geological condition, it is difficult for NJ Road project. 138 in 171 Road, which accounted for the resettlement households to choose suitable households affected by house 109% of the plan. 33 homestead. The delayed resettlement may postpone the demolition in MM Road project affected households have

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project construction. have been resettled. been resettled to the resettlement sites. MM Road: Land acquisition of all the affected villages has been finished and house demolition and house reconstruction.

NJ Road and MM Road have adopted the resettlement mode of “reconstruction before demolition” has been applied so as to minimize the influence to the life and production of the residents and protect the legal interest of the affected households and the smooth implementation of the project.

According to Resettlement monitoring plan, the According to The Monitoring Menglian-MM Road: 91 Rate of compensation standard was publicized by Report on Resettlement, the person-times training has females compensation standard published governments of all counties and the land been provided for local who get by governments of towns and acquisition are compensated in cash. trainings counties and the way of people, including 38.8% on According the resettlement policy, all the compensating by cash were clearly women trainees and 82% livelihoo stated. households affected by house demolition are be ethnic trainees. The Reach d training ranged from new 50% restorati resettled by monetary compensation and the According the policies for on to the homestead of new houses are allocated resettlement, all the households technology of pig raising, affected by house demolition were affected autonomously by the governments of those tea planting to rubber populati compensated with cash and affected counties and villages. tapping. on who homestead allocated by each town- level or county-level government. participa No special technical trainings were organized for NJ Road: 106 person- ted in affected population. However, according to the The questionnaires showed that 104 times training has been 129

trainings result of questionnaires, 47 (19 poor households, were females which accounted for provided for local 14 females) of the 140 sample households have 46.2% have participated in people, including trainings on agricultural planting participated in trainings including agricultural 36.2% women trainees technology, cash crop planting crop plantation skills, economic crop etc. It can be skills etc.. and 70% ethnic seen that monetary compensation is the principal trainees. The training mode for compensation. The technical trainings ranged from new organized by governments of villages have technology of pig covered part of the affected households with a raising, grape planting high percentage. to dragon fruit planting, etc.

According to the statistics of sampling survey, 1 of Whether the 423 sample households has moved into the new the The village-level house without detailed notes that whether the owner house questionnaires showed The village-level questionnaires owner of of the new house belong to the two party of the that 43.7% of the house showed that 52.94% of the house the new couple. heads of house registration were heads of house registration house is both parties of the couple. were both parties of the the two According to interviews, the resettlement households of the express that the owner of the new house can be either couple. couple the husband or the wife.

The resettlement has not been finished. By Sept. 30, 2019, Complet Collective land for 432.07 ha was In the collective land for 439.87 ion of acquisitioned and houses for Q1 of period of NJ Road: For the the poor geological condition of the ha was acquisitioned in NJ land 47,732 m2 were demolished in NJ Road, accounting for 98% 2016 measure project being easy to slide, the side slope of the road has acquisiti Road project, accounting for of the updated Resettlement announcem on and to be gentle, thus, the acreage of land acquisition was respectively 97% and 76% of the Plan; houses for 36,140 m2 130

resettle ent increased by 3.22 ha. plan in the updated Resettlement were demolished, ment Plan. In this monitoring period, accounting for 57% of the updated Resettlement MM Road: Newly added collective land acquisition for there was no new land acquisition Plan.There was no increase 0.638 ha. The land of 90.93 ha was acquisitioned, and house demolition in MM Road in land acquisition and accounting for 80% of the plan. project. By June 30, 2018, house demolition. collective land for 101.2 ha was Collective land for 101.2 acquisitioned and houses for ha was acquisitioned in 47,625 m2 were demolished, MM Road, accounting for accounting for 84% and 109% 84% of the updated respectively. Resettlement Plan; houses for 47,625 m2 were demolished, accounting for 109% of the updated Resettlement Plan.

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4.2 Rural Road Improvement

32 rural roads of 600 km have been planned to be improved according to the village-level road improvement group. After adjustment, 30 rural roads of 537 km were confirmed in June 2017 to be improved. The improved roads would be at least 4.5 m in width, some even 6.5 m.

By the end of Sept. 2019, 89% of the total construction work has been finished and the construction work of all the contract packages have been started. However, the construction progress was behind schedule that PMTB has prolonged the contacts with the 15 contractors. The average construction progress of the contract packages was

89.4%, among which JCRR-Sub1, ZYRR-Sub1-Sub4, XMRR-Sub1, JDRR-Sub2 have completed the construction; JGRR-Sub2, 83.4%; the rest, above 95%.

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Table 4.2-1Rural Road Improvement

Year 2015 2016 2017 2019 Target Indicator

No progress in 2016. Finished 78.7% Road for 537 km Number and length of sections of completed Length of 190.96 km of the total Finished 89% of the total Not started being upgraded village-level road upgrading of the total road has construction construction work to level 3-4 been improved by work Nov. of 2017

No progress in 2016; Finish local rural road Road Number and length of sections of No statistics of improvement Not started Improveme com/completed village-level road improvement local village-level for 1,200 km nt road improvement (or invest 24 by June of 2017 million yuan)

Proportion of jobs offered to minorities, females, poor, and the affected population in Not started At least 50%

those available non-technical jobs No data by Sept.

Work days of females to the number of days of 2019 employment created by project maintenance Not started At least 75% along the 537-mile rural roads

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Proportion of female employment in the Not started At least 30% construction of 1200-mile village-level road

Rate of village-level road maintenance Not started Not started (quantity or mile) Road Maintenanc the rural traffic routes e, Road increasing from 517 to implement the Access five new village bus service routes on a pilot 519; villages accessible to project of public Not started Not started Improveme basis rural traffic routes transportation nt and increasing from 828 to service Transport 1,040 Service Rate of female employment for maintenance Not started Not started 86% At least 70% work of rural roads of communities

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4.3 Construction of Meng’a Material Transit Center

The site of Meng’a Material Transit Center has been confirmed with an acreage of

6.67 ha. By this monitoring phase of Sept. 2019, the construction of Meng’a Material

Transit Center hasn’t been substantially started yet, which would be started by the

Office of Menglian (Meng’a) Cross-Border Economic Cooperation after the completion of road construction.

4.4 Employment in Road Construction

By Sept. 2019, 1,391 people were hired for NJ Road, including 1,125 nontechnical positions. 762 people had been employed for MM Road, including 440 nontechnical positions. The two regional road projects had guaranteed the same payment for the same work among ethnic minorities, local residents and other groups and between males and females, and ensured poor people with the same salary as other people or higher. At certain sections of the project, women received lower payment than men mainly because women engaged in relatively easy work like cooking,which was different from male’s work in nature.

Among the 1,125 nontechnical staff of NJ Road, 134 were women, taking up 12% of the total; 253, minorities, 22.5%. The data showed that the nontechnical staffs of NJ

Road were mostly locals, especially minority members since the minority population constituted a large part of local population. In the employment period of 2019, the percentage of females in nontechnical employees was lower than 20% and there was no obvious preferential policy applied to issue of the recruitment of impoverished people and resettled population.

As for the 440 people hired as nontechnical workers for MM Road, 11 were females, accounting for 2.5% of the total; 102 were locals, 23.2%; and 91 were minority members, 20.7%. Although in the employment period of 2019 the percentage of

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females in nontechnical employees was lower than 20%, and more than 20% of the

local people were employed as nontechnical workers, there was no obvious preferential

policy applied on issue of the recruitment of impoverished people and resettled

population.

Table 4.4-1 Employment Information of Road Construction

Indicator Employment of Nontechnical Notes Objective of 2019 Year Workers

2015 N/A

345 nontechnical workers were employed by NJ Road, including 54 At least 20% of local women and 271 minority The two regional road women will be hired, members, taking up 15.7% and 78.6% ensured at least 20% of and at least 50% of respectively of the total number. nontechnical workers nontechnical jobs will were women and over 2016 - July 123 people were hired as nontechnical be provided to 50% were minority 2017 workers for MM Road. 4 of them were minority members, members, women and local women and 31 were minority women, the poor and other vulnerable groups members, constituting 3.3% and 25.2% those affected by land during the construction respectively of the total. acquisition and house period of 2016-2017. The construction of Rural Roads was demolition. just started and no nontechnical job was available.

Among the 1,125 non-technical staff in At least 20% females were employed; at NJ Road, 134 females account for 12%; During the employment least 50% of the non- 253 ethnic minority members account for construction period technical jobs were for 22.5%. in 2018-2019, the June 2018 - offered to ethnic proportions of females Sept. 2019 Among the 440 non-technical staff in minorities, females, in non-technical staff in Menglian-MM Road, 11 females poor population, and MM Road and NJ Road account for 2.5%; 102 locals account population affected by were all below 20%. for 23.2%; 91 ethnic minority members house demolition and account for 20.7%. land acquisition.

4.5 Institutional Development

4.5.1 Organization and Project Management

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Under the leading group of PMG, the executing agency of PMG is responsible for the overall implementation and supervision of the project. PMG has clear allocation of responsibility, duties, and personnel meeting the requirement of an executing agency.

The implementing agency of PMTB is responsible for the implementation of project output and coordination with other governmental branches. PMTB has founded

PMO, under which the subordinate headquarters and Transport Bureaus of all levels is directly responsible for supervision and management on project work. In PMO, there are 12 full-time employees, including 5 females, accounting for 42% of the total.

Management agencies carry out their own responsibilities and fulfill related duties.

To handle those appeals related to social security, PMO has established social security Grievance Redress Mechanism that accord with the time schedule of regulations of Environment Impact Assessment, Environment Management Plan,

Resettlement Plan, and Ethnic Minority Development Plan. Meanwhile, Grievance

Redress Mechanism based on the need of the government and project implementation was established to handle complaints about issues not related to social security. Road safety research institutions have introduced the assessment measures for road safety design.

4.5.2 Trainings

From 2018 to Sept. 2018, PMO has organized special trainings on safety education, hygiene and health, social welfare (including gender sensitivity and gender need) with

632 person-time, including 213 female person-time, 73 ethnic minority person-time.

Apart from these, ADB Loan Project Management staff has offered trainings for EA and IA, and a large number of trainings18 targeting the affected population organized

18 County government, women federation, labor union, HR, bureau of labor and social security, bureau of industry and information technology, etc, have been hold 20 trainings which are coffee, tobacco, pest control, employment skill, rural e-commerce, border trade, women business guidance, etc. among them, women accounts for 43.4%.

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by EA and IA were carried out as well. It can be seen that the capacity of EA and IA has been well built to meet the need of project implementation.

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Table 4.5-1 Output of Institutional Development

Indicator Completion Implementation in 2016-2017 Implementation in 2017-2018 Implementation in 2018-2019

Whether a leading group has been founded by EA (PMG) to be Founded in March of PMG, EA, is responsible for the overall Unchanged Unchanged responsible for the 2014 implementation and supervision. overall implementation and supervision Organizations and Project Management Project and Organizations

In PMO, there should In Q3 of 2014, there be at least 6 full-time were 12 employees in There are 11 full-time employees (1 person There was no change in the staff members There are 12 full-time employees, employees and 20% of PMO, including 5 less), including 5 females, accounting for of PMO and number of female members. including 5 females, accounting for 42%. all employees were females, accounting 45.45%. females. for 42%.

PMTB, IA, being responsible for the Whether IA (PMTB) PMTB functions as IA, being responsible PMTB functions as IA, being responsible for the implementation of the project and the management for the implementation of project output implementation of project output and construction and coordination with and coordination between other organizations of all coordination between other governmental other governmental branches. governmental departments. departments. levels have carried out Yes PMTB founded ADBPMO and the their responsibility, PMTB has founded PMO, under which PMTB founded ADBPMO and the subordinates of PMTB is directly in charge fulfilled their duties and the subordinate headquarters and subordinates of PMTB is directly in charge of of supervision and management of the supervision and management of the project. finished related tasks? Transport Bureaus of all levels were project. directly responsible for supervision and

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management on project work.

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ChinaRAP group has provided the local ChinaRAP group has provided the local designers with design philosophy of road designers with design philosophy of road ChinaRAP Group has provided the local safety and has made a large quantity of Whether safety safety and has made a large quantity of safety designers with the designing philosophy safety evaluation on the road designs of the measures were evaluation on the road designs of the project, of road safety, safety investment project, including assessment on introduced by road investment performance based on optimal including assessment on investment Yes projects and assessment on investment safety research theory, editing safe investment project, performance based on optimal theory, editing performance and practical safety institutions to improve assessment on practical safety safe investment project, assessment on performance, which has greatly performance, which has greatly raised the road safety practical safety performance, which has improved the safety of project roads. safety level of project roads. greatly raised the safety level of project roads.

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To handle those appeals related to Grievance Redress Mechanism were Grievance Redress Mechanism were founded. It social security, PMO has established founded. It has realized the following has realized the following functions: i) check functions: i) check and record the and record the reasonable complaints about social security Grievance Redress reasonable complaints about parties in the parties in the project; ii) solve the appeals in Mechanism that accord with the time project; ii) solve the appeals in time; iii) time; iii) provide the complainant with options schedule of regulations of provide the complainant with options for for handling with the complains; iv) report to Environment Impact Assessment, handling with the complains; iv) report to ADB periodically for check when necessary. ADB periodically for check when Environment Management Plan, necessary. Resettlement Plan, and Ethnic Minority Development Plan. Meanwhile, Grievance Redress Mechanism based on the need of the government and project Has Grievance Redress Mechanism implementation was established to been established? handle complaints about issues not related to social security.

Details: layer-by-layer trainings from top to down, to make those project subject (special groups) and benefit-related group familiar with the running of appealing mechanism. There is a special person of all the involved subjects (contractors, supervision companies, and PMO representing EA and IA) being 142

responsible for appealing solving, with details and final resolution to the all the appeals recorded.

Grievance Redress Mechanism have achieved: (1) scrutiny and record reasonable complaints to the review and document eligible complaints of Project stakeholders; (2) proactively address grievances; (3) provide the complainants with notice of the chosen mechanism and/or action; and (4) prepare and make available to ADB upon request periodic report

Number of Employees / 88 person-time, including 42 female person- of Project Management time (PMG and PMTB) who 183, including 35 / participated in trainings female person-time Trai and the number of ning females participants s Whether the employees 160 person-time 3 trainings on social securities and gender A training on social security was organized Training organized in this monitoring period of PEO and PIO has needs were organized in January and April (including 40 female in June 2017. participated in training were no related to this aspect. person-time) have of 2016, and June of 2017. of social securities and 143

gender need and the participated in trainings exact training time

At least 50% of the / 113 male employees male governmental have participated, employees have / / accounting for 75.22% of participate in trainings the total male employees. on gender sensitivity

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5. Implementation of Project Activities

5.1 Implementation of Land Acquisition and Resettlement

5.1.1 Resettlement Plan and the Change

Resettlement Plan of the project was implemented based on Updated Report on

Resettlement Plan of NJ Road Project of Yunnan Pu’er Regional Integrated Road Network

Development Project and Resettlement Plan of MM Road Project of Yunnan Pu’er Regional

Integrated Road Network Development Project (Final) and there was no change compared with

previous monitoring.

The main influence to the relocatees is shown in the following Table 5.1-1.

Table 5.1-1 A Summary Sheet of Land Acquisition and House Demolition in the Project19

Acreage Affected Subproject Land Acquisition Notes (ha) Population

1,551 people from Collective 2,118 people 305 households land 121.384 from 471 affected only by acquisition households land acquisition; Perpetual MM Road Affected by both House 567 people from land acquisition 2.796 demolition 166 households and house demolition

There is no people Temporary 48.45 / affected

19Source: The Updated Report on Resettlement Plan of NJ Road Project of Yunnan Pu’er Regional Integrated Road Network Development Project);Resettlement Plan MM Road Project of Yunnan Pu’er Regional Integrated Road Network Development Project (Final)

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Acreage Affected Subproject Land Acquisition Notes (ha) Population

State-owned There is no people land/croplan 106.11 / affected d acquisition

Collective 11,915 people Perpetual land 406.79 from 3,066 / NJ Road acquisition households 1,242 people House 4.01 from 324 / demotion households

13.5 ha - Temporary / / 15 ha

Rural Road: According to Resettlement Plan of the project, land for 0.606 ha from 4 villages in Zhentai Town of Zhenyuan county would be acquisitioned, which would affect 1,325 people from 303 households. No changes have been made compared with the previous monitoring.

5.1.2 Land Acquisition and Resettlement

As an independent consulting agency, Hohai University is in charge of the monitoring on resettlement progress and the writing of Resettlement Monitoring Report. By August 2019, NJ section and Meng’a Section have handed in 7 periodical reports respectively and rural roads has hand in 1 periodical reports20.

1. Land Approval

The Ministry of Land and Resources has approved the land for the construction of Lancang-MM Road Project of Pu’er on September 23, 2015 (Official Written Reply of

20 The monitoring group found that there was discrepancies between statistics Monitoring Report on Resettlement and the planned statistics in Periodical Report. After confirmation, it was discovered that the statistics in Monitoring Report on Resettlement was based on RP while that in Periodical Report was calculated by House Demolition Office based on the planned statistics in RP. This report has adopted the statistics in Monitoring Report on Resettlement.

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Ministry of Land and Resources [2015] No. 647)21.

The Ministry of Land and Resources has approved the land for the construction of Ning’er section on July 27, 2017 and Jiangcheng section on August 15, 2017 (Official Written Reply of Ministry of Land and Resources [2017] No.491 and (Official Written Reply of Ministry of Land and Resources [2017] No.408).22

2. Collective Land Acquisition

By June 30, 2019, MM Road construction project has finished land acquisition for 142.5 ha in total (including new collective land acquisition 23.56 ha during 2018-2019), accounting for 117.42% of the planed acreage. The new area of land acquisition is mainly caused by landslides in the rainy season. In addition, due to the imperfect design, there are many broken ditches of the project, which seriously affect the agricultural irrigation system and agricultural production. In order to solve this problem, the project added land acquisition to improve irrigation and drainage systems to ensure the agricultural production.

6.87 ha of Mengma Tea Company located in Paliang village which is not included in the original land acquisition plan need to be acquired. The crops compensation has been paid, the land acquisition agreement has not been signed, because of there is dispute of land ownership between Mengma Tea company and Paliang village, that is: the land is owned by Paliang village, Mengma Tea company according to the agreement with Paliang village, has the right to use. The initial compensation plan for land acquisition is to allocate the compensation to Paliang village collective, which will negotiate with the company to reallocate the compensation according to the actual situation. The plan is still under further consultation and no final agreement has been reached.

21 Yunnan Pu’er Regional Integrated Road Network Development Project — (subproject: Menglian-MM Road) Resettlement External Monitoring Report No. 7

22 Yunnan Pu’er Regional Integrated Road Network Development Project — (subproject: NJ Road) Resettlement External Monitoring Report No. 7

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1.42 ha of land of Mengma Rubber Company has been acquired, and crops compensation has been paid. In 2017, Mengma Rubber Company requested land replacement; in the first half of 2018, since there was no suitable land for replacement, Mengma Rubber Company requested cash compensation and appraisal by a third party. land compensation will be appraised by a third party, but no compensation agreement has been signed yet. The Menglian Resettlement Office promises to sign a compensation agreement with Mengma Rubber Company and pay compensation after appraisal as soon as possible.

By June 30, 2019, 439.2 ha of collective land had been acquired in total (including

new collective land acquisition 4.85 ha during 2018-2019，that is: Ning’er Town 4.08

ha, Liming Xiang 0.62 ha, Mengxian Town553.33 m2, Menglie Town 0.105 ha), accounting for 107.97% of the plan. Since landslides are likely to occur in the project area due to poor geological conditions, slope gradient has to be reduced, leading to a further increase in land acquisition area; all additionally acquired land is caused by road rerouting, collapse, etc. The agreement for collective land acquisition in Ning’er County has been signed, and the land acquisition compensation paid to the affected households. The number of affected households has not increased because: 1) The AHs overlap with the households formerly affected by land acquisition; and 2) The number of households affected additionally by land acquisition has not been reported.

Details for collective land acquisition of MM Road and NJ Road are shown in Table 5.1-2.

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Table 5.1-2 Collective Land Acquisition

Cumulative Cumulative completion in Updated Plan completion in last Accumulative completion this monitoring period Village/ monitoring period County Village Land Land Township Land Land Acreage Household Acreage Household Acreage Household Acreage Household percentage (ha) (ha) (ha) (ha)

Mangzhang 7.8 29 7.056 71 10.572 0 17.628 71 226.08% Nayun Yunshan 0 0 0.264 14 0 0 0.264 14 / Village

Subtotal 7.8 29 7.32 85 10.572 0 17.892 85 229.46%

Mengma 21.84 71 20.76 209 0.496 13 21.25 222 97.32% Village

Paliang 39.62 85 32.31 225 7.79 0 40.1 225 101.20%

Menglian Mengma He’an 2.36 11 6.1 56 1.14 0 7.24 56 306.37%

Manghai 17.002 72 16.406 199 3.38 49 19.78 248 116.36%

Meng'a 19.51 166 23.22 222 0.00 9 23.22 231 119.05%

Mengma 1.42 0 1.42 0 0 0 1.42 0 100.00% Gum Factory Enterprises Luoxiaohai 4.64 1 4.64 1 0 0 4.64 1 100.00% Gum Factory

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Subtotal 113.59 442 111.648 990 12.992 73 124.64 1,063 109.73%

Total 121.384 471 118.968 1075 23.564 73 142.532 1,148 117.42%

Ning’er / 91.93 884 106.63 1074 4.076 0 110.706 970 120.43% Town Mengxian Ning’er / 53.75 455 61.48 771 0.056 0 61.54 771 114.49% Town Liming / 68.34 753 63.82 587 0.62 0 64.43 580 94.28% Village Baozhang / 46.72 325 53.20 400 0 0 53.2 400 113.86% Village Menglie Jiangcheng / 124.39 522 123.4 527 0.105 0 123.5 527 99.29% Town Qushui / 21.65 127 28.53 127 0 0 25.83 127 119.27% Village

Total 406.79 3,066 434.35 3,486 4.85 0 439.2 3,375 107.97%

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Note: The data are from External Resettlement Monitoring Report (No.7).

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By June 30, 2018, the construction of the three rural roads involved in perpetual land acquisition of Zhenyuan County was completed. According to Resettlement Plan, this project has acquisitioned dry land for 0.61 ha and 1,325 people of 303 households from 4 villages of Zhentai Township in Zhenyuan County were affected by the land acquisition. The actual resettlement influence of the project accorded with Resettlement Plan. Perpetual collective land acquisition is shown in Table 5.1-3.

Table 5.1-3 Perpetual Collective Land Acquisition of Rural Roads

Land

Affected acquisition Affected Household County Township Road Name Villages (ha)

Dry land household population

Road of Shanjie Shanjie 0.178 65 265 Village Village

Road of Wenxing Wenxing 0.23 125 570 Zhentai Village Village Zhenyuan Township Wenmian County 0.095 33 127 Road of Chang’an Village

Village Chang’an 0.10 80 363 Village

Subtotal 0.61 303 1,325

During the period of April to September 2019, the land acquisition progress is only involved in upgrading Wenxing village road. Rural road land acquisition compensation fees (Ground attachment) have been paid 18,800 yuan, only 6% of the planned amount (320,600 yuan), but the rural road land acquisition has been completed.

3. House Demolition

As of June 30, 2019, 216 households had been affected by HD in total, with a total

HD area of 48,966.6 ㎡，complete 175.13% of the resettle plan (according to the demolition area which is 27,960 m2 in the resettle plan). It is learned that though some

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affected houses in the subproject area are out of the boundary line of the highway, they are too close to the highway and of poor quality, so they are affected greatly by road construction. In order to facilitate subproject implementation, these houses will also be compensated for, so that the actual HD area is more than the planned HD area. These houses will be subject to the compensation policy and rates for other houses specified in the RP.

There were some housed demolition caused by the independent construction made by the Office of Menglian (Meng’a) Cross-Border Economic Cooperation Area. This required the road width of 23 meters in the project area to be widened for 8.5 meters more. Compensation raised from house demolition in this area was disbursed by the Committee of Menglian (Meng’a) Cross-Border Economic Cooperation Area with the policy and standard in accordance with Resettlement Plan approved by ADB. According to External Resettlement Monitoring and Evaluation Report, HD within the Border Economic Cooperation Zone boundary line in Meng’a Village has begun, and 16 houses have been demolished, with a total area of 5,157.27 m2, the HD compensation has been fully paid to the AHs, totaling 2.708 million yuan.

As of June 30, 2019, the total HD area of the Subproject was 36,599.76 m2, affecting 239 households, including 19,697.1 m2 in Jiangcheng County, affecting 173 households, and 16,902.66 m2 in Ning’er County, affecting 66 households. Complete 91.2% of the resettle plan (according to the demolition area which is 40131.38 m2 in the resettle plan)

The Subproject of NJ road involves the demolition of non-residential properties23. As of June 30, 2019, non-residential properties of 12,981.64 m2 had been demolished for the Subproject, including 5,345.2 m2 in Ning’er County, and 7,636.44 m2 in Jiangcheng County. In addition, auxiliary structures24 of 7,985.58 m³ in Jiangcheng

23 Mainly including shower rooms, enclosing walls, toilets, pigpens, kitchens, etc., involving cash compensation only, with no resettlement involved

24 Mainly including septic tanks, enclosing walls, courtyards, etc.

153

County have been demolished, including auxiliary residential structures of 3,004.03 m³ and auxiliary non-residential structures of 4,981.55 m³, all subject to cash compensation.

The details of completed main house demolition can be found in Table 5.1-4 and 5.1-5.

By June 30, 2018, three roads in Zhenyuan County, which the rural road construction project involving permanent land acquisition, had been basically

completed25. According to the investigation on project influence, house demolition was not involved in Rural Roads project.

25 Yunnan Pu’er Regional Integrated Road Network Development Project——Rural Access Improvement Component External Resettlement Monitoring and Evaluation Report (No.1)

154

Table 5.1-4 Details of Finished Main House Demolition of MM Road Project

By June 2019

Cumulative completion by External Resettlement Cumulative completion Plan December 2018 Monitoring Report No.7 by June 2019

County Village/Town Village House House House House Demolition Household Demolition Household Demolition Household Demolition Household (m2) (m2) (m2) (m2)

Mangzhang 252 3 1,473.2 8 0.0 1 1,473.2 9 Nayun Yunshan 0 0 164.6 1 0.0 0 164.6 1

Menglian County Subtotal 252 3 1,637.8 9 0 1 1,637.8 10

Paliang 4,858 47 14,528.7 48 0.0 8 14,528.7 56

Mengma 2,046 18 7,273.1 28 1,860.7 8 9,133.8 36

Mengma He’an / / / 5 0.0 0 / 5

Manghai 588 9 3,043.9 24 3.4 1 3,047.3 25

Meng'a 13,788 70 10,845.4 28 0.0 17 10,845.4 45

155

Cumulative completion by External Resettlement Cumulative completion Plan December 2018 Monitoring Report No.7 by June 2019

County Village/Town Village House House House House Demolition Household Demolition Household Demolition Household Demolition Household (m2) (m2) (m2) (m2)

State-run Menglian 828 18 3,494.8 32 678.9 6 4,173.7 38 Enterprise Farm Luoxiaohai 5,600 1 5,600.0 1 0.0 0 5,600.0 1 Gum Factory

Subtotal 27,708 163 44,785.9 166 2,543 40 47,328.9 206

Total 27,960 166 46,423.7 175 2,542.96 41 48,966.6 216

Note: The statistics of households was collected by Meng’a Resettlement Office when agreement was signed; the statistics of acreage of house demolition was collected when the houses were being demolished. Therefore, the statistics of house demolition was after the statistics of households. There was only statistics of number of houses in He’an, and no specific acreage was provided. The data are from External Resettlement Monitoring Report (No.7)

156

Table 5.1-5 Details of Finished Main House Demolition of NJ Road Project

By June 2019

Cumulative completion by December External Resettlement Cumulative completion by Plan 2018 Monitoring Report No.7 June 2019

County Village/Town House House Acreage House Demolition Household Household Demolition Household Demolition Household (m2) (m2) (m2) (m2)

Ning’er Town 3,000 12 4,629.66 15 0 0 4629.66 15

Ning’er Mengxian Town 9,250 37 4,148 16 460 5 4608 21

County Liming Village 12,500 45 7,665 30 0 0 7665 33

Subtotal 24,750 94 16,442.66 61 460 5 16902.66 66

Baozang Village 5,855.36 98 5,319.58 33 0 0 5319.58 33

Jiangcheng Menglie Town 8,015.72 111 12,149.45 109 0 0 12149.45 109

County Qushui Village 1,510.3 21 ,2228.07 31 0 0 2228.07 31

Subtotal 15,381.38 230 19,697.1 173 0 0 19697.1 173

Total 40,131.38 324 36,139.46 234 460 5 36599.76 239

157

Note: The data are from External Resettlement Monitoring Report (No.7)

158

4. House Resettlement

(1) House Resettlement of MM Road Project

In the 216 households whose houses had been demolished, 33 of them were resettled collectively in the three resettlement spots of Dongkuoxiaozhai Group, Yindaizu Group of Paliang Village of Mengma Town and Manglang Group of Meng’a Village by PMO. New migrate households were resettled dispersively and were going to choose homestead by themselves for house reconstruction with the support of village committee, governments of the village and town and the Resettlement Office of Menglian County. The resettlement details in shown in the following Table 5.1-6.

Table 5.1-6 Resettlement of the Affected Households of MM Road Project

Cumulative completion Cumulative completion Village New Resettlement and December 2018 by June 2019 enterprise Colle disper Subto Collec dispe Subto Collec disper Subto s ctive sive tal tive rsive tal tive sive tal

Mangzhan 0 8 8 0 1 1 0 9 9 g

Yunshan 0 1 1 0 0 0 0 1 1

Paliang 26 22 48 0 8 8 26 30 56

Mengma 0 28 28 0 8 8 0 36 36

Manghai 0 24 24 0 1 1 0 25 25

Meng’a 7 21 28 0 17 17 7 38 45

He’an 0 5 5 0 0 0 0 5 5

State-run Menglian 0 32 32 0 6 6 0 38 38 Farm

Luoxiaoha i Gum 0 1 1 0 0 0 0 1 1 Factory

159

Total 33 142 175 0 41 41 33 183 216

Note: The data are from External Resettlement Monitoring Report (No.7)

Of the 14 families to be resettled in the Dongkuoxiaozhai Group of Paliang village, 13 have completed construction and moved in. The resettlement sites have been connected to water distribution system and electricity, but the roads have not yet hardened and the greening work has not started. Menglian Land Resources Bureau needs to coordinate the land use situation of other projects to report to the land resources administration at the higher level to apply for land using procedures. After obtaining the approval, Menglian Land Resources Bureau will deal with the land certificate for each immigrant. Because of the impact of road construction, 1 household has only completed the foundation construction and has not started the construction of the main body of the house. However, because the immigrant family has another house to live in the village, the demolition of the old house does do not affect their normal life26.

The road of Dongkuoxiaozhai group has a height difference of 20m due to the construction of the subproject, make it inconvenient for the villagers to travel. The Menglian Resettlement Office has negotiated with the village group to design and construct new travel roads. At present, The Menglian Resettlement Office has built two double-access roads on both sides of the entrance of the village to facilitate the villagers getting around in different directions. There is no problem for the villagers to travel at present (as shown in the figure below).

26 Yunnan Pu’er Regional Integrated Road Network Development Project——(Subproject: Menglian-MM Road Project) External Monitoring Report on Resettlement (No.7)

160

Intai resettlement site in Paliang village is planned to relocate 12 households. By June 30, 2019, all 12 households have been relocated, and the resettlement area has been electrified and connected with water, but pavement hardening has not been completed, the land using procedures is being handled. There have been landslides around Intai group 1 and group 2 settlement，Pu’er Highway Planning, Surveying and Design Institute designed the protection works，until June 30, 2019, the protection structure had been constructed and put into operation，but the greening work is not yet completed.

Among the 7 affected households to be resettled in Manglang resettlement site in Meng’a Village, 6 have completed and moved into new houses, and the other has completed the main structure of its new house. This affected household has a house in the county town, the demolition of the old house does do not affect their normal life. The infrastructure of the resettlement site (include water connection, electric connection, road connection and site leveling) has been completed. The land using procedures is being handled.

According to the report by the Menglian Resettlement Office that all households who opted for scattered resettlement had moved into new houses. The resettlement houses are much better than the old houses in terms of environment and safety, and the 161

resettlement office has built cement roads for them. Their livelihoods are not affected.

(2) House Resettlement of NJ Road Project

The house resettlement in Ning’er County was undertaken by the villagers themselves, not in a collective way. Those villagers found suitable land for house construction and built houses by themselves firstly (the allowed acreage of homestead was about 200 m2 in Mengxian Town, about 250 m2 in Liming Township and about 120 m2 in Ning’er Town), then reported related statistics to village collectives. After statistics of all the households were collected, it should be approved by related government departments (e.g. Bureau of Land and Resources Administration), which would issue the approval documents after on-site investigation and examines.

House resettlement in Jiangcheng County included both dispersive resettlement and collective resettlement based on villagers’ own will. For those dispersively resettled households, the Bureau of Land and Resources Administration of Jiangcheng County would speed up the process of homestead approval and ensure the quick resettlement in NJ Road project. Bellow were the specific details of collective resettlement based on villagers’ own will.

This resettlement site involves 30 households, including 3 affected by house demolition for the Subproject, and 27 resettled due to government poverty alleviation, dilapidated house reconstruction, etc. All resettlement houses have been completed and the households had moved in. Resettlement site for Niuluohe Village, Menglie Town had involved 45 households, all resettlement houses have been completed and the households had moved in. Dazhupeng resettlement site for Dazhai village, Menglie Town involves 9 households, in July 2017 all resettlement houses have been completed and the households had moved in.

Dazhupeng resettlement site for Shuicheng Village, Baozang Township is planned to resettle 8 affected households from Xinfeng Group（original plan was expected to resettle 10 households，6 households were confirmed with with last report， 8 are

162

confirmed till now）, and its construction has not begun. The houses have been demolished in Shuicheng Village are mainly facade rooms and kiosks, which do not affect the normal life of immigrants, and they are granted a transition subsidy from local government.

5. Temporary Land Occupation

By June 30, 2019, Meng’a subproject has occupied a total of 23.64 ha of temporary land (the designed temporary land occupation area is 726.77 mu, including 27.9 ha for borrow areas and spoil grounds, 48.45 ha for production and living areas, construction of temporary roads). Compensation for temporary land use at the spoil ground has been fully paid to the affected persons. Due to the landslides caused by construction， temporary land occupation may increase, villagers agreed to wait for unified measurement and compensation after subgrade completion.

By June 2019, the temporary land occupation of NJ road subproject has accumulated 139.45 ha. Most of the spoil ground of road sub-contracts along NJ Road were not located as on the design drawing, but were solved in the following two ways: Firstly, the construction party made an agreement after negotiation with villagers or village collectives. After signing the agreement, villagers or village collectives provided spoil ground for free without any requirement for land reclamation. After the construction, the area used to be spoil ground will be used as production and living places. Secondly, the construction party negotiated with villagers or village collectives on issues of area of filling, compensation plan, and the follow-up matters and then signed an agreement.

Temporary land acquisition was not involved in rural road construction project.

5.2 Evaluation, Design and Assessment of Road Safety

Through communication and cooperation for two years, ChinaRAP Group has provided the local designers with the designing philosophy of road safety and has made a large amount of safety assessment during the road design and highlighted the road 163

sections of high risks. They also has introduced to the designers those important factors affecting the star-rating, offered the rules of improving road safety based on optimization theory, safety investment projects and, assessment on investment performance and practical safety performance. This interactive-style design has greatly improved the safety of project roads.

The analysis at the present stage is basically in the form of premise based on practical survey material. According to the introduction in part 1, the star-rating of the project mainly offers target-oriented measures on the risk of four road types. The star- rating of Menglian-MM Road, NJ Road and rural roads is in the following Table5.2-1.

Table 5.2-1 Star-rating of the Roads

Construction Percentage of Roads above 3-star drawing design Menglian-MM Road NJ Road Rural Road

Motor vehicle 100% 100% 46% Motor cycle 100% 100% 46% pedestrian 100% 100% 89% bicycle rider 100% 100% not evaluated

BCR:The road safety investment between Design 1 and Design 2 of MM Road is CNY 4 million, the yield gap of two visions is CNY 1 million, and the BCR (benefit- cost ratio) of the final design is 27.4. The BCR of NJ Road is 15.1, rural roads is 12.2.

Analyzing for the future 20 years and adopting the preliminary design, the toll of MM Road would be 3,906; however, adopting the final design, the toll would be 3,236 (a decrease of 670, decrease rate of 17%). NJ Road, preliminary design, toll of 4,488; final design, 1,863 (a decrease of 2,625, decrease rate of 58.5%); rural roads, preliminary design, toll of 1,075; final design, 712 (a decrease of 363, decrease rate of 34%).

Table 5.2-2 Estimated Deaths and Serious Injuries Prevented on Roads (20 years)

164

Fatalities and Fatalities and serious Fatalities and Final design serious injuries injuries saved injuries saved (%)

Menglian - MM Road 3,236 670 17%

Ning’er to Jiangcheng to 1,863 2,625 58.50% Longfu Road Rural Roads 712 363 34%

5.3 Bidding and Procurement

5.3.1 Bidding of the Project

The regional road project involves 12 subgrade sections and 4 pavement sections (including 2 subgrade sections and 1 pavement sections for Menglian - MM Road, 10 subgrade sections and 3 pavement sections for NJ Road). The 12 subgrade tenders have completed the bidding and signed the construction contract before June 8, 2016, and all construction units have started work.

Among the four bid sections of road pavement works, the bidding document for Menglian-MM Road was accepted by ABD on September 12, 2018, and published on the same month. ABD approved the bid evaluation report on December 24, 2018, and signed the contract on December 28, 2018. The performance bond was paid on January 17, 2019. NJ Road involves three bid sections of pavement engineering. As of August 19, 2019, no feedback from ADB has been received on the bid documents. Compared with the original plan of “bidding to be complete”, the schedule of the pavement works bidding is lagging behind.

All the 15 contract packages involved in rural roads have completed the bidding before September 2017，and all construction units have started work.

5.3.2 The Bidding and Procurement of Capability Building Consulting Service

The procurement of consulting service has launched in July of 2014. At present, the bidding of consulting service contract has been finished and all the consulting

organizations have come to the site.

165

Table 5.3-1 External Monitoring & Capacity Development

Consultancy Contractors Contractors Performance Project The service is effective and sufficient. Management Egis International Thetraining and workshop are hold in a Consultant* timely manner and with good quality. The service is effective and sufficient. Resettlement Hohai University The report submitted with good quality Plan and in a timely manner.

Guangxi Transport Research The service of this joint venture is Environment Institute &Yunnan Fangyuan effective and sufficient. The monitoring Management Technology Co., Ltd. action is carried out effectively. The Plan Kunming Longhui Engineering report submitted is acceptable quality Design Consulting Co., Ltd. & and in a timely manner. Yunnan Jinyu Ecological The service of this contractor is Beijing China Communications effective and sufficient. The site survey Road Safety Hua’an Technology Co., was carried out effectively. The report Ltd.(ChinaRAP) submitted is acceptable quality and in a timely manner. The service of this contractor is effective and sufficient. The site survey Wildlife Wildlife Conservation Society was carried out effectively. The Trafficking training and workshop are acceptable quality and in a timely manner. The outcome of propaganda is recognized. Ethnic Minority The report submitted from this Development contractor is acceptable quality but not Science and technology Plan, Gender in a timely manner as stipulated in the consulting and development Action Plan contract. A contract re-negotiation has center of Yunnan held with this contractor in the Project university(2019) September to deal with the delay Performance matter. Monitoring * Indicates contracts utilizing ADB funds

5.4 Monitoring on Ethnic Minority Development Plan

71% of the benefited population of this project are ethnic minorities. To make sure they are actively participated in and benefited in culture from the project, Ethnic

166

Minority Development Plan was issued to ensure the interest of ethnic minorities. And to guarantee the success implementation of the project and lowering known risks. The Yunnan Academy of Scientific and Technical Information (YASTI) was hired to monitor on the indicators of Ethnic Minority Development Plan, YASTI have submitted the baseline report (using 2015 data as the baseline) and the 2016 annual monitoring report. Starting from 2017, the monitoring team of the science and technology consulting and development center of Yunnan University was hired to monitor the indicators of the minority development plan. Experts in the same field from Project Management Company gave assistance in the implementation of Ethnic Minority Development Plan and monitoring report has to be handed in periodically by PMO.

The construction activity will raise an opportunity for minority communities to benefit directly and indirectly. Contractors will be encouraged to employ minorities. Those people affected by the project, typically those touched directly or indirectly by resettlement, are given first priority for employment opportunity with contractors, consultants and PMTB. Affected people and ethnic minority households benefit indirectly through local procurement of goods and services.

167

Table 5.4-1 Checklist of EMDP

Monitoring Actions Indicators and 2017 2018 2019 Sources

A. Project Benefits and Improvement Measures

1. Regional road Subgrade work: The two contractors of MM development Road had started construction since March 2016. By June 2017, 40% of the construction work - Improve the 33 value has been finished with an estimated value subcontracts of local 50.4% of the overall civil of CNY172 million. roads with a total The number and engineering work has been finished 83% of civil works for MM Road has (by June 2018); 66%, MM Road; been completed and 46% for NJ road. length of 6,000 km length of improved Roadbed construction of NJ Road was started in 30%, NJ Road, 78%, rural roads. rural roads October 2016, and by June 2017, 25% of the - Repair/renovate NJ construction work value has been finished with Road and MM Road an estimated value of CNY141 million.

The pavement work was expected to start in 2018 Q4.

The number of rural In 2018, ethnic minority population 322,000 people will be benefiting beneficiaries of The total population of the project area was accounted for 67.56% of the total from regional roads development. road development 2.3026 million in 2017, and minority population population of the project area, 69% of those are ethnic minorities, and the ratio of took up 69.49% of the total. which was 2.3113 million. equivalent to 260,700 people. minority members

The number of Some villages started to build a Some villages started to build a Connecting to 1,200 km of lower level village improved road system for road maintenance. system for road maintenance 62.5% 168

Monitoring Actions Indicators and 2017 2018 2019 Sources

spots, and the road. 29.41% of the interviewed villages of the interviewed villages had found number and had found a unified village-level a unified village-level road mileage of PMG and county governments decided to harden road maintenance system; 47.06% maintenance system; 43.75% of the maintained village all these roads instead of spot improvement. of the interviewed villages have set interviewed villages have set up road roads up road maintenance groups; maintenance groups; 50% of the Road maintenance was voluntarily done by 23.53% of the interviewed villages interviewed villages have subsidized villagers. have subsidized road maintenance road maintenance work; 50% of the work; 17.65% of the interviewed interviewed villages have received Road maintenance system has not been villages have received special special trainings on road established. trainings on road maintenance. maintenance.

2. Improve village roads The number of In the aspect of rural roads, up to June 2017, and transport service improved village except XXMM-Sub1 (contract package 1 of roads - Improve village Ximeng County), all the contract packages of roads The mileage of rural roads have been signed, started and moved All the construction work of the 30 rural roads of 537 km in total have 89% of civil works for rural road improve village forward with the overall completion percentage - Pilot site for rural been started but no line have been upgrading have been completed. roads of 4.53% with an estimated value of transport service finished yet. CNY89,400,000. The number of employment days The construction completion of Zhenyuan was created 70%.

The number of 4 newly build coach stations, including The number of passenger bus routes Currently, the number of rural public has increased from 517 to 519. The transport routes increased from 517 to introduced rural and Jiangcheng Coach Station built in the project number of rural passenger cars to 519 and the number of villages 169

Monitoring Actions Indicators and 2017 2018 2019 Sources

functional traffic area administrative villages have accessing rural public increased from services increased from 738 to 1,040. 828 to 1040. There are total 79 rural bus stations in 7 project counties under rural road upgrading sub-project.

3. Improved road safety The rate of traffic accident has decreased by 18.62% from 463.13/100,000 of last year to Collision accident rate in 2016 (/100,000 people) 376.89/100,000 and the rate of death

in the project area was 463.13. Death rate in traffic accidents has decreased by (person/100,000 persons)of traffic accidents in 11% to 9/100,000.

the project counties has decreased from 11.82 to Accident rate per 100 cars has 9.99. Accident rate per 100 cars has decreased decreased from 1.43 to 1.02. Decrease of from 1.71 to 1.43. Death rate per 100 cars has - Install road safety accident rate decreased from 0.05 to 0.04. Injury rate per 100 Death rate per 100 cars has facilities, including people has decreased from 0.7 to 0.59. increased from 0.04 to 0.07. traffic signs, speed bumps and Economic loss rate per 100 cars has decreased Injury rate per 100 people has pedestrian crossing from 3,600 yuan to 3,000 yuan. decreased from 0.59 to 0.41.

- Organize education Economic loss rate per 100 cars has programs and decreased from 3,000 yuan to 1,600 yuan. programs on The number of road By the end of June 2017, 693 and 216 sets of By Dec. 201, 1,436 road safety signs 170

Monitoring Actions Indicators and 2017 2018 2019 Sources

community safety signs road safety signs were installed in the areas of NJ By June 2018, 83 effective speed- (498 new ones in this period) were awareness installed Road project and MM Road project respectively. limit measures and 938 pieces installed in NJ Road project; 369 (135 new ones), Meng’a-Menglian (including 245 new in this period) of - Establish Road project. safety signs were equipped in NJ comprehensive data Road project and 134 effective base of road speed-limit measures and 369 159 sets of speed limit signs and accidents The number of By the end of June 2017, 428 and 51 sets of pieces (including 153 new in this speed bump (76 new sets in this effective measures speed limit facilities were installed along NJ period) were installed in NJ Road period) of safety signs were used in to speed limit Road and MM Road respectively. project; 215 (81 new ones), Meng’a- MM Road project. Menglian Road project.

From January to December 2019, contractors in NJ road and MM road were reported monitoring table The number of local monthly. According to statistics, 126 communities 10 training with 289 participants trainings in NJ road were conducted

receiving trainings were organized. in total, including 98 safety trainings on road safety with 1,931 participants, including 297 females and 683 ethnic minorities. The rest of the training is vocational skills training.

171

Monitoring Actions Indicators and 2017 2018 2019 Sources

Contractors held 103 trainings in MM road, including 49 safety training with 1,931 participants, including 231 women, 522 ethnic minorities. The rest of the training is vocational skills training.

Preparation and distribution of By the end of June, 2017, 600 pieces and 560 879 pieces of materials about 100 pieces of handbook of pieces of awareness enhancement materials were awareness enhancement were awareness enhancement were Awareness distributed in the areas of NJ Road project and distributed in the two regional road distributed by the contractors of both enhancement MM Road project respectively. projects. NJ Road and MM Road projects. materials

4. Economic returns of the Among the 345 nontechnical staff of NJ Road, In NJ Road project, 48 females (42 In NJ Road project, 134 females project 80 were women (54 were locals), taking up locals) accounted for 12.03% of the accounted for 12% of the total 1,125 The number of 23.2% of the total; 298 were local people, total 399 nontechnical workers. non-technical workers while 253 - 50% of nontechnical nontechnical jobs Among all the non-technical 86.4%; 271 were minority members, 78.6%; 55 ethnic minority workers accounted jobs given to ethnic provided for local workers, 369 local people accounted for 22.5% of the total. were from families affected by land acquisition minority members, people (including for 92.48% of the total. 101 ethnic those provided for and house demolition, 15.9%; and 102 were poor minority people accounted for In MM Road project, 11 females females, poverty minority members people, 29.6%. 25.31% of the total. accounted for 2.5% of the total 440 population, those and females) non-technical workers while 91 who affected by the As for the 123 people hired as nontechnical In MM Road project, 17 females ethnic minority workers accounted accounted for 27.86% of the total 61 project and other workers for MM Road, 26 were females for 20.7 of the total. (including 4 from local community), accounting nontechnical workers. Among all 172

Monitoring Actions Indicators and 2017 2018 2019 Sources

local groups. for 21.1% of the total; 25 were locals, 20.3%; the non-technical workers, 43 and 31 were minority members, 25.2%. local people accounted for 70.49% - Utilize local of the total. 3 ethnic minority people resources and local accounted for 20.93% of the total.

construction materials By July 2017, the contractors of NJ Road had bought food for 639 times and agricultural The amount and products for 390 times, amounting to 1.2549 and value of products 0.4033 million yuan respectively; those of MM None None procured locally Road had bought food 483 times and agricultural products 28 times, valuing 54,300 and 105,000 yuan respectively.

The constructors of NJ Road rented 50,310 m2 of office and production space and construction According to the statistics from machines 236 times, costing 880,650 yuan and contractors, the total rent the NJ Road project and MM Road The number of 2.5985 million yuan respectively. Those of MM contractors paid by the 2 regional project have spent CNY683,200 and rented house/land Road rented 3,650 m2 of office space and road projects for local places used as CNY215,000 on venue rent. construction machines 128 times, spending office was CNY344,00 0. 110,480 yuan and 4.224 million yuan respectively.

The source and cost The total value of construction materials like Contractor of the two regional road During the monitoring period, of construction cement, sand and stone of NJ Road reached projects have purchased cement for contractors of NJ Road project has materials, and the 6.0071 million yuan, accounting for 40% of the CNY3,557,800, sand for bought construction materials for percentage in total total procurement; that of MM Road was CNY2,807,800, and building stones 18.89 million yuan; contractors of 173

Monitoring Actions Indicators and 2017 2018 2019 Sources

procurement 19.3436 million yuan, 35% of the total for CNY5,664,400. Besides, MM Road project, 158.59 million procurement. construction materials like rebar yuan. and diesel for CNY1,205,330,000 were bought.

5. Capacity building The number of measures trainings Menglian-MM Road: 91 person-times - Technical trainings training has been provided for local Menglian County has organized for people, including 38.8% women on cash crop growing affected population many trainings Governments of counties, Women Federation, on livelihood restoration, such as trainees and 82% ethnic trainees. The - Non-agricultural Labor Union, HR,Bureau of Labor and Social management technology of coffee training ranged from new technology Security, Bureau of Industry and Information skills trainings and rubber, planting techniques of Technology, etc, have been hold 20 trainings of pig raising, tea planting to rubber tea, banana, corn and rice, cattle which are about coffee, tobacco, pest control, tapping. breeding, electrowelding and The number of employment skill, rural e-commerce, border electrical engineering etc.. 1,738 NJ Road: 106 person-times training minority trainees trade, women business guidance, etc. Among people have participated in the them, women account for 43.4% while ethnic has been provided for local people, trainings, including project affected minorities account for 76.9%. including 36.2% women trainees and population for 944, females for 280 and ethnic minority for 686 persons. 70% ethnic trainees. The training ranged from new technology of pig raising, grape planting to dragon fruit planting.

B. Addressing social risks and mitigation measures

174

Monitoring Actions Indicators and 2017 2018 2019 Sources

1. Protect ethnic The number of minorities cultures and awareness Trainings on ethnic minority culture protection raise the awareness of enhancement were added to workers. Contractors have organized such protection programs and the trainings for workers on number of attending Taking the local worshiping divine tree or relics - Raise the awareness respecting culture and conventions workers into consideration, the primary design of the and sensitivities of project had marked that all divine trees and of ethnic minorities. construction workers The number of cultural relics would not be affected. The The construction of two roads in the during construction ancient trees/relics construction of two roads in the project involves the divine trees for sacrifice and after several project involves the divine trees for appraised and Same as last year - Avoid damage to negotiation the villagers agree to transplant the sacrifice and after several conserved tree after a rite of local customs with all the ancient trees and negotiation the villagers agreed to expense included in the resettlement fees. If sites in the process of The number of transplant the tree after a rite of local there is any dispute on divine trees or cultural project design. consultations with relics during the construction, the Culture customs with all the expense minority Protection and Management Committee will included in the resettlement fees. - Cultural Protection communities confirm the authenticity and then the project will Bureau appraising around cultural protect or resettle them according to local culture ancient trees and and religious rites. issues, especially cultural relics ancient trees/relics

2. Minimize the risk of The clause of Trainings on the prevention of AIDS and STI are Trainings on the prevention of AIDS infectious diseases trainings of and STI were included in the Same as last year included in both project tenders and contracts. HIV/AIDS bidding documents and contracts. consciousness to all 175

Monitoring Actions Indicators and 2017 2018 2019 Sources

I. Raise the awareness of the people involved preventing AIDS and is included in the tender of other Sexually contractors. Transmitted Infection (STI) 632 workers on the construction Number of training By June 2016, contractors of the 2 regional roads 371 people have participated in the sites, including 213 minorities and - The contractors participants/number have provided the construction workers with 16 10 trainings on drug prevention, 74 females, have participated in the of trainings healthcare and HIV/AIDS that 13 trainings on safe production and provide trainings to trainings on drug prevention, health care, organized for contractors of both regional road environmental protection organized all workers and workers HIV/AIDS etc. projects organized for workers. by contractors of the two regional managers in roads. accordance with the Number of provisions under the 415 pieces of publicity materials materials made and 600 copies of consciousness improvement have 879 pieces of awareness were made and distributed in NJ tender documents distributed for been distributed in NJ Road project; 560, MM construction was distributed in the Road project; 2,129 in MM Road awareness two regional road projects. II. Prevention and Road project. project. enhancement Control over malaria The number of among construction 2,730 condoms were distributed in distributed 30 90 workers MM Road project. condoms - Keep the The number of 82 in NJ Road project; 611, MM construction site Mosquito nets 340 in NJ Road project; 160, MM Road project 158 Road project clean and equipped offered

Times of mist spray For 119 times in NJ Road project; 93, MM Road For 392 times in NJ Road project; All the work shed were shed in NJ 176

Monitoring Actions Indicators and 2017 2018 2019 Sources

with sewage system in workers’ shed project 230, MM Road project Road project for 253 times; MM Road project, for 1,211 times. - Mosquito nets and Number of workers mist spray in the 68 in NJ Road project; 17, MM 20 in NJ Road project; 139, MM who received 180 in NJ Road project; 17, MM Road project workers’ shed Road project Road project tuberculosis check - Medication to those infected

III. Prevention and Control over tuberculosis among construction workers Number of workers - Offer annual health who have been examination to all quarantined and None None None the workers treated for tuberculosis - Quarantine and medication to those infected

- Effort from communities (Malaria Prevention 177

Monitoring Actions Indicators and 2017 2018 2019 Sources

and Control Center)

3. Against illegal human Pu’er City has also promoted “the trafficking and drug project of drug prevention among trafficking adolescents around June 26” and carried out the planned tasks in 3 Pu’er City has also promoted the - Cooperation years. During this time, 54 publicity project “June 27” on drug prevention between activities of drug prevention, 4 among students in normal primary 400 people (including 245 females) have trainings on drug prevention were departments and middle schools, secondary participated in the trainings on AIDS&drug held and more than 60,000 pieces of vocational schools and colleges. - Consciousness prevention in Ximeng County, Mojiang County materials of drug prevention were distributed. State media and During this time, 661 publicity improvement and and Pu’er City. provincial media have published activities of drug prevention and 94 data analysis, trainings on drug prevention were Experts were appointed to assist in and broadcast 161 pieces of press cooperation with held. consciousness improvement and training. release on the drug prevention work local Women’s of Pu’er City. It is shown by the household Plans about trainings on illegal trade of human, Federation, focusing Local farmers’ awareness of farmers investigation that 50% of on the communities drug and wild life were made in December 2016. were enhanced through posters, interviewed households got trainings distributed materials, in-campus on HIV/AIDS prevention, 41.11% of Lahu and Wa publicity on drug prevention and participated in trainings on drug - Consciousness AIDS prevention, drama circuit on prevention and 29.33% on human- improvement and drug prevention and AIDS trafficking prevention. education on prevention in primary schools and secondary schools. fighting against drug trafficking, According to field investigation, the 178

Monitoring Actions Indicators and 2017 2018 2019 Sources

especially to the awareness degree of interviewees youngsters has reached 95.93%, and 91.52% of the interviewees know the - Improvement in law protective measure against AIDS. enforcement, including checking points and supervision equipment

- Posters and pamphlets distribution in coach stations and frontier connection,

- Appointment of experts on the prevention of human trafficking and drug trafficking

Complaints Feedback from contractors in NJ

179

Monitoring Actions Indicators and 2017 2018 2019 Sources

4.Lowering the negative received and solved Road project reflected that 25 influence from complaints were received, including roads, ditches, destroyed water pipe, construction The report from contractors in NJ disputes on land acquisition and - Avoid water source Road project reflected that 10 stive etc. The contracted had promised to solve these problems in pollution complaints were received, including one month. No complaints from complaints on roads, ditches, - Minimize night farmers were reflected in the No construction in night destroyed water pipe, disputes on feedback from contractors of MM construction near the land acquisition and stive etc.. The Road project. residential areas Measures of water spray were adopted to contracted had promised to solve Length of irrigation minimize stive. - Minimize stive these problems in one month. channels and According to the materials given by contractors, pollution from sewage pipes and irrigation channels, sewage pipes, electrical The report from contractors in NJ construction the restoration power system, telegraph poles, bridges and Road project showed no complaints percentage from farmers. However, the - Clear up the sites culverts were damaged in varying degrees and monitoring group found from field after construction most of the damaged were restored. interviews that those farmers whose crops had been buried or destroyed - Offer short-term were not timely compensated and service during the ditches and cropland were not period of restored. construction and irrigation, sewage and road system

180

Monitoring Actions Indicators and 2017 2018 2019 Sources

restoration 务

C. Poverty alleviation measures of local governments

1.Facilitating Non-agri Ethnic minority Ning’er County has has provided with the micro- fields of traffic transport, participants credit aid, including industry loan, start-up loan border trade and tourism and small guaranteed loan, in an amount from Amount of paid Household interviews showed that etc. CNY20,000 to 100,000. credit 51.58% of the interviewed families Household interviews showed that - Facilitating technical Menglian County, small guaranteed loan from have gotten loans or support fund, 44.89% of the interviewed families trainings on traffic Rural Credit Cooperatives and loans from among which 54.67 of ethnic and 50.5% of ethnic minority families have gotten loans or support transport, border Women’s Federation. minority families have gotten loans fund, with an average amount of trade and tourism or support fund, with an average of Jingdong County has lent CNY98,360,000 to CNY29,800. The main source of CNY27,835. The main source of - Offering micro- 1,676 females (including 591 benefited by loan was the Bank of Rural Credit number of ethnic loan was the Bank of Rural Credit Cooperatives (90.59%). credit aid to help in supportive loans to start-up and 1,085, by small minority borrowers Cooperatives (92.95%). non-agricultural guaranteed loans) and helped 8,600 people to be The top 3 loan use were for and the usage agricultural investment, house fields employed. The top 3 loan use were for house construction and business. construction, agricultural The survey indicates that 51.64% of the investment and business. interviewed family has gotten loan or financial support and the average loan of this year is CNY55,052. In ethnic minority families, 54.35% has gotten loan or financial support and the

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Monitoring Actions Indicators and 2017 2018 2019 Sources

average loan of this year is CNY65,476.2.

2.Tourism Promotion Celebration and Promotion of February Festival, June Festival, - Ethnic minority Celebration and Promotion of February Festival, October Festival of Hani culture protection June Festival, October Festival of Hani Nationality, Takuo Festival, Hulu and ecological Nationality, Takuo Festival, Hulu Festival of Festival of Lahu Nationality, Lahu Nationality, Wooden Drum Festival and Wooden Drum Festival and New culture tourism Celebration and New Rice Festival of Wa Nationality, Mikaha Rice Festival of Wa Nationality, restoration of ethnic Same as the last year development Festival and Torch Festival of Yi Nationality, Mikaha Festival and Torch Festival minority festivals Closing-door Festival, Opening-door Festival of Yi Nationality, Closing-door - Promotion of tourist and Water-sprinkling Festival, International Festival, Opening-door Festival and attractions in Twins Day of the Tropic of Cancer of Mojiang Water-sprinkling Festival, different ways and Hani Festival of Jiangcheng County International Twins Day of the Tropic of Cancer of Mojiang and

Hani Festival of Jiangcheng County

The full-length documentary of Well-known enterprises such as ethnic culture The Oath of National Shanghai Jiuze and Overseas Unity was played on CCTV. A dance Chinese Town of Shenzhen were named Wa People Were Singing a introduced to develop the industry of Number of Ads Not started New Song Again was successfully health care. debuted in Yunnan Grand Theatre. The pace of projects of “Tea & Horse Microfilm The Call was awarded Ancient City”, Xikang Cloud “the Excellent Photography” and Resorts etc. were accelerated. “the Excellent Debut” by Asia MicroFilm Begonia Award. The Sun river and car tourist camp of 182

Monitoring Actions Indicators and 2017 2018 2019 Sources

first Pu’er Marathon was Manor of Three Kingdoms were put successfully held, and the tourist into use. attraction of Ancient Tea Route was The App “One Phone For Travelling listed in the important provincial in Yunnan” has updated Pu’er cultural protection projects. section.

One 4-A tourist attraction and three 3-A tourist attractions were graded.

Graded. 17 tourist villages with ethnic minority characteristics were built in Number of home- The Number of home-stay tourist spots in 12 home-stay tourist spots were Menglian County; 10 demonstration stay tourist spots in household survey spots has increased from 1 in interviewed and the income of tourist villages with ethnic minority ethnic minority the Baseline Report to 51 and an additional home-stay tourism was characteristics and 64 tourist villages income of CNY1,386,000 were gotten from it. CNY1,420,000. villages with folklore characteristics were built in Ning’er County.

In 2017, Pu’er City have received In 2018, tourists for 2.2 million were 28,876,100 travelers and created an received by Menglian County, to The tourist income of Pu’er City has increased income in tourist industry for which the amount has increased year Tourist income by 56.59% to CNY1,683,600 in 2016. CNY27 billion, which have over year by 29.9% while the tourist increased by 39.79% and 60.37% revenue was 360 million yuan, to respectively. which the amount has increased year over year by 50.6%. Jobs created for Not started Not started ethnic minorities Ning’er has implemented the policy of developing tourism with ethnic

183

Monitoring Actions Indicators and 2017 2018 2019 Sources

minority characteristics.

In Jiangcheng, 1.5 million tourists were received with tourist revenue of 1.4 billion yuan, to which the amount has increased year over year by 45%.

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5.5 Monitoring on Project Environment

The project is classified Category A for environmental assessment on the basis that the construction of the regional roads, Menglian-Meng’a and the NJ road, could create significant negative impacts and, moreover, result in a significant number of vegetation losses with other short-term construction impacts such as noise, dust, sedimentation and erosion.

The environmental management institutions of the project have been established during the preparatory phase of the project. As described in Section 3.8 of the report, institutional organization has been well structures for environmental management. The PPMO and the IA have both assigned environmental staff to manage, coordinate, oversee and verify EMP implementation. PMTB has contracted the Yunnan Fangyuan Technology Co., Ltd., Guangxi Transport Research Institute, Kunming Longhui Engineering Design Consulting Co., Ltd, and Yunnan Jinyu Ecological Engineering Consulting Co., Ltd, as the External Environmental Monitoring Agencies(EEMA). PMTB has contracted Yunnan Shengmeng Engineering Consulting Co., Ltd, Shandong Ping’an Road and Bridge Engineering Consulting Co., Ltd, and Yunnan Yuantu Engineering Supervision Co., Ltd, to supervise the construction of MM Road and the NJ Road, supervise the environment simultaneously during engineering supervision and handed in environment Monitoring Report monthly.

Environment Management Plan has illuminated engineering solutions and the best measures to minimize negative influences. Contractors will be responsible for implementing the mitigation measures during construction under the supervision of PPMO through the Supervision Office, and Loan Implementation Environmental Consultant.

Following are the monitoring on measures adopted to mitigate environmental impacts and Environment Management Plan:

(1) Spoil Disposal

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Menglian-MM Road: There are 9 spoil yards designed for the entire route, covering an area of 18.09 ha, with design capacity of spoils for 2.29 million m3. Until June 2019, the actual quantity of spoils is about 1.219 million m3. Of the nine disposal sites for the Menglian-MM Road, five are still active by end of the third quarter of 2019; at K61+900, K63+350, K64+400, K81+340 and K89+645. The site at K58+000 is not used anymore. The disposal site at K63+200 has not been used for some time and grasses have grown on the spoil deposits. Except at K61+400, all the other sites have been provided with retaining wall and side ditches.

NJ Road: According to Owner-supplied data and field survey, until June 2019, 56 spoil disposal sites are used, covering an area of 103.07 ha, with a design capacity of 13.175 million m3, the cumulative spoil is about 11.038 million m3. There are 57 disposal sites by 30 September 2019, 41 were actively used during the third quarter of 2019. Fourteen sites have been provided with retaining wall, seven have been provided with ditches and cut-off drains and two were provided with soil bags as temporary erosion control measure. Construction of the retaining wall and drainage ditches is in progress in 24 sites. Erosion is notable in sites where protection has not been provided. At NJ Road Sub 9 the spoils previously stockpiled on the roadsides have been cleared.

(2) Soil Erosion Control

Drainage ditches, either temporary or permanent have been constructed along many sections of both the MM and NJ roads. These have helped control runoff from going into the roadbed and remain passable during the past rainy season. Along NJ road, permanent drainage has been completed along many road sections on both side. Similarly, several sections have been provided with permanent protective wall or retaining structure. However, massive erosion has been observed in control still needs to be strengthened as this is a prevalent issue in many sites because of the massive cut and fill and disposal activities.

Major landslide was observed at K210+580 and K210+680 in early November

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2018. The eroded materials occupied part of the roadway making it slippery and unsafe for travel. The Contractor had cleared the debris and is continually maintaining the road, but the risk of erosion is high in these areas due to the steep slopes of the cut areas.

(3) Soil Contamination

During July 2018 and June 2019, the petroleum products on Menglian-MM Road and NJ Road under construction are all kept according to related regulations. All hazardous substances and waste materials are treated appropriately without leakage. Construction wastes are delivered to designated place for disposal. By September 2019, major spills of oil or hazardous materials were not observed in any site. Soil contamination by waste water from cement batching plants, fabrication yard, or machine/equipment maintenance areas was not observed. The construction camps were properly maintained. No major soil contamination was observed in the Contractors’ fabrication yards.

(4) Dust Management

Menglian-MM Road：During July 2018 and June 2019, only some sections of the road are under construction. From July to December 2018, the EEMA have monitored the ambient air quality of six construction points for one day per month27. From January to June 2019, the EEMA have monitored the ambient air quality of eight construction points28. The monitoring results of all monitoring points is 100% within requirements. The TSP daily mean value of these seven monitoring points, where subgrade works have been under construction, ranges from 0.064 to 0.158mg/m³, which satisfies the limit of Class II in Ambient Air Quality Standard (GB3095-2012).

NJ Road: From July to December 2018, only one construction point is under

27 Pajingchachang(K64+500),Hegelaozhai (K68+300), Guangsan(K87+700), Bingsuo(K89+300), Anma(K94+600),Menga(K98+700)

28 Pajingchachang(K64+500), Hegelaozhai (K68+300),Hegexinzhai(K68+30), Hehaxinzhai(K71+400), Guangsan(K87+700), Bingsuo(K89+300),Anma(K94+600), Menga(K98+700)

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construction29, the EEMA have monitored the ambient air quality of it for one day per month. From January to June 2019, just part of sections is in construction, the EEMA have monitored the ambient air quality of eight construction points30. The monitoring results of all monitoring points is 100% within requirements. The TSP daily mean value of these seven monitoring points, where subgrade works have been under construction, ranges from 0.053 to 0.252mg/m³, which satisfies the limit of Class II in Ambient Air Quality Standard (GB3095-2012).

Despite the massive earthworks activities, dust was not prevalent in the construction sites during this period due to the frequent occurrence of rains.

(5) Noise Control

The Contractors complied with the noise control measures in the EMP that include avoidance of nighttime works, limiting the speed of hauling trucks, setting up batching plants and fabrication areas away from residential areas, avoiding use of horn, and maintaining good condition of equipment. Most earthmoving activities are far from residences, thus the impact of noise on residential areas and other sensitive receptors is minimal.

The monthly monitoring plan for monitoring points have been formulated by EEMA according to the construction conditions provided by the Engineering Command. Between July 2018 and June 2019, some monitoring points have completed subgrade construction, and there was no construction activity near some monitoring points during the entry of monitors.

Menglian-MM Road：During July 2018 and June 2019, only some sections of the road are under construction. From July to December 2018, the EEMA have monitored the noise of six construction points for one day per month31. From January to June 2019,

29 Qiyiqiao(K159+450)

30 Xuande(K60+600), Qiyiqiao(K159+450),Niuluohe (K183+500), New rural relocation Village, Coffee Factory, Longdonghe Group ofBashan Village, Shangzhai and Xiazhai Group of Dazhai Village

31 Pajingchachang(K64+500), Hegelaozhai(K68+300), Guangsan(K87+700), Bingsuo(K89+300), 188

the EEMA have monitored the noise of eight construction points32. All project sections haven’t constructed at nighttime, so all monitoring points haven’t monitored the noise of nighttime. The monitoring values at these points range from 54.5dB (A) to 62.4dB (A) at daytime. The all monitoring values satisfy the limit value given in GB3096-2008.

NJ Road: During July 2018 and June 2019, the most part of sections isn’t in construction. From July to December 2018, only one construction point is under construction33, the EEMA have monitored the noise of it for one day per month. From January to June 2019, the EEMA have monitored the noise of eight construction points34. All project sections haven’t constructed at nighttime, so all monitoring points haven’t monitored the noise of nighttime. The monitoring values at these points range from 54.5db (A) to 58.8db (A) at daytime. The all monitoring values satisfy the limit value given in GB3096-2008.

(6) Water Quality Control

Menglian-MM Road: During July 2018 and June 2019, part project sections haven’t constructed. EEMA have monitored water quality monthly in river reach near three river-crossing bridges35, when they were in constructing. According to evaluation for monitoring results, the monitoring indexes of river reach near Nancha River K56+803, Nanma River K74+950, Nanma River K96+300 during July to December, CODCr, DO and TPH can satisfy the water quality standard of category III in Environmental Quality Standard for Surface Water (GB3838-2002). For suspended solids (SS), no up-to-standard evaluation is performed because no corresponding water environmental quality standard exists in China at present. The monitoring results of the

Anma(K94+600), Menga(K98+700)

32 Pajingchachang(K64+500), Hegelaozhai (K68+300),Hegexinzhai(K68+30), Hehaxinzhai(K71+400), Guangsan(K87+700), Bingsuo(K89+300),Anma(K94+600), Menga(K98+700)

33 Qiyiqiao(K159+450)

34 Xuande(K60+600), Qiyiqiao(K159+450), Niuluohe(K183+500), New rural relocation Village, Coffee Factory, Longdonghe Group of Bashan Village, Shangzhai and Xiazhai Group of Dazhai Village

35 Nancha River K56+803, Nanma River K74+950, Nanma River K96+300

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three bridge shows that the bridges construction didn’t have a significant impact on water quality. The CODCr and SS dates of the impact station (100m downstream of the bridge alignment) aren’t more than 130% of control station (50m upstream of the bridge alignment), the DO dates aren’t less than 70%.

The value of TPH monitoring results are low for Nanma River K74+950 and K96+300 in July and September 2018 also in July and September 2019. Affected by sampling and analysis deviation, dates of the impact station were more than 130% of control station, but the dates can satisfy the water quality standard of category III in Environmental Quality Standard for Surface Water (GB3838 - 2002).

NJ Road: During July 2018 and June 2019, part project sections haven’t constructed. From July to December 2018, EEMA have monitored water quality monthly in river reach near three river-crossing bridges36. From January to June 2019, EEMA have monitored water quality in river reach near four river-crossing bridges37.

According to evaluation for monitoring results, the monitoring indexes of river reach near the seven rivers, CODCr, DO and TPH can satisfy the water quality standard of Class III or IV in Environmental Quality Standard for Surface Water (GB3838-2002). For suspended solids (SS), no up-to-standard evaluation is performed because no corresponding water environmental quality standard exists in China at present. The monitoring results of the seven bridge works shows that the bridges construction didn’t have a significant impact on water quality. The CODCr and SS dates of the impact station (100m downstream of the bridge alignment) aren’t more than 130% of control station (50m upstream of the bridge alignment), the DO dates aren’t less than 70%. The value of TPH monitoring results are low for Shili River K227+240 in July 2018. The CODCr dates of the impact station are more than 130% of control station for Mengxian

36 Longdong River K221+400, Shili River K227+240, Mengye River K139+340

37 Mengxian River K58+875, Longdong River K221+400, Lahu River K194+700, Shangren River

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River K58+875 in January and February, Lahu River K194+700 in June, Shangren River in April 2019. Affected by sampling and analysis deviation, dates of the impact station were more than 130% of control station, but the dates can satisfy the water quality standard of category III or IV in Environmental Quality Standard for Surface Water (GB3838-2002). The SS dates of the impact station are more than 130% of control station for Longdong River K221+400 in May, Lahu River K194+700 in June.

During June and September 2019，most streams along the roads appeared to have been affected by massive siltation. The streams are highly turbid. Run-off carrying soil or silty material from the construction sites obviously contributed to high turbidity of the rivers. Landslides/erosion has worsened during the recent rainy season and consequently caused further siltation of the rivers. Although the Contractors have tried to adopt erosion control measures such as benching, immediate removal of spoils from the construction sites, and providing temporary drainage ditches along the foot of slopes, these seem to be ineffective due to high erodibility of the soil during periods of massive downpour. At some locations, even the completed drainage ditches were damaged by erosion.

No problems relating to impacts on domestic water supply was reported during this period, and there were no complaints received relating to disturbance or contamination of water supply source during the third quarter of 2019.

(7) Solid Waste Management

Most Contractors have trash bins in the camp sites but waste segregation is still not widely practiced. Housekeeping in most camps is satisfactory. Garbage from most camps is collected through the community collection system. Improperly disposed garbage was observed in two camps.

(8) Complaints about Environmental Issues

There were no issues or complaints received during the third quarter of 2019, both in Menglian-MM Road and NJ Road. Many issues noted during the past reports have 191

been corrected. The prevailing issues this quarter are listed below:

Table 5.5-1 Common Problems Related to the Environment

NO. issues Recommendations

The Contractors should continue to strengthen implementation of mitigating measures in spoil disposal sites and cut areas to prevent Slip/landslide uncontrolled run-off, erosion and sliding, as recommended in the /soil erosion 1 EMP. during rainy days Contractors should regularly monitor sites of cut areas and material stockpiles to ensure that local people’s farmlands or properties will not be affected by soil erosion from sites.

Contractors should maintain the riding surface of roads being used 2 Slippery road for public transport especially where heavy equipment usually passes.

Material and Fuel or gasoline are stored far from water bodies, however, storage fuel storage areas are not properly constructed. The fuel containers should be 3 do not meet stored in covered areas with bund to prevent seepage or leak into the requirements ground with proper sign boards.

Lack of warning signs Warning signs and other safety precautions should be provided 4 at before the approach to critical areas where landslide or slip has landslide/slip occurred or has high probability of occurrence. positions

5.6 Monitoring on Gender Action Plan

In general, communities along the project corridor were impacted by increased sales of goods and services generated by project activities. Women, as participants in the local market, benefited directly and indirectly from localized procurement of goods and services. One of the conditions for ADB loans was to stress the importance of female labors and enhance the status of females. It was required that contractors of civil engineering should give priority to female labors, especially on nontechnical works and other works should not exclude female labors. Whenever there was employment opportunities from contractors, consultants and proprietors, priority would be given to

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those who have been directly or indirectly affected by resettlement.

The project has employed Yunnan Academy of Scientific and Technical Information (YASTI) to monitor GAP in 2015 and 2016. From last period (2017), this work has been transferred to Science and Technology Consulting and Development Center of Yunnan University.

The project management company has also arranged experts in this field to assist PMO with the implementation of GAP as well as the submission of periodical monitoring reports. Every level of the project management from AE/IA to each site has persons specifically designated as the person responsible for gender related activity, including information publicity and collection of report data.

5.7 Project Construction

5.7.1 Construction Progress

Until September 2019，the overall weighted progress of the civil works is 66.2%, and specifically 58.4% for the regional roads and 89.4% for the rural roads. The estimated value of work completed at the end of the period is CNY 1,289 million. The Disbursement progress of Civil Works amounts to equivalent USD 78,1 million, representing 39% of loan amount.

1. Subgrade Engineering

The two contractors of Menglian-MM Road started mobilization in March 2016, the constructions began work in the second quarter. Due to the delay of the construction works for two contractors, PMTB and two contractors made an agreement on the extension of the construction contract. The revised contract completion date, which is same for both contracts, is on 31th October 2019. The progress to date of still less than expected with 90% of contract time elapsed on both contracts, and CNY 179 million for MM-Sub1 and CNY 223 million for MM-Sub2 or respectively, only 77% and 90% of the estimated final value of the work completed.

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The works commenced in October 2016 except for package NJ-Sub5 which commenced in December. Due to the delay of the construction works for ten contractors, PMTB and ten contractors made an agreement on the extension of the construction contract. The revised contract completion date has been granted for all contracts until 31 December 2019, excepted for package NJ-Sub1, of which completion date has been prolonged to 30 November 2019.

With effectively average of 84% of time passed, the accumulative progress on all ten contracts stands at CNY 450 million or 46% of estimated final value. NJ-Sub1 and NJ-Sub 10 show greatest progress at respectively 79% and 81%, then comes two others packages, NJ-sub2 and NJ-sub9, showing progress around 50% (respectively 51% and45%), while the others are still lagging below 40%. Three packages show alarming rates of progress, NJ-sub4, NJ-sub6 and NJ-sub8, with respective figures being 25%, 22% and 25%.

2. Pavement Work

Menglian-MM Road: The bidding document of the MM-Pav1 was approved by the ADB on 12th September 2018. The contract was signed on 28th December 2018. The performance security was provided to the Employer on 17th January 2019. Construction of the MM-Pavement works was commenced on 6th May 2019. Rate of progress at end of the reporting period is 9%.

The bidding documents of the pavements works for NJ Road received no feedback from the ADB by 19 August 2019.

3. Rural Roads

As of the end of the reporting period, all of the contracts have been tendered and the accepted tender values are incorporated into the cost estimate. 14 on 15 construction works have been awarded and are substantially completed by the end of the period. One civil works package (LCRR-sub1) contract have not been approved by ADB due to the violation of the ADB’s procurement guidance, and is decided not to finance by ADB. 194

The average value of works completion is 97.5%.

5.7.2 Works Cost Estimate

The final cost estimate comprises the cost estimate of each contract. The current cost estimate includes the original estimates for the civil works packages that have yet to be procured and the present final cost estimate for the packages awarded and commenced. Details can be found in the latest table of estimated value of project contract packages (taking USD as the contracted currency exchanged on the day of report deadline). The estimates for non-civil works as reflected in the Procurement Plan and the PAM are included in the current estimate as shown in Table 5.7-1 below.

Table 5.7-1 Estimated Project Cost (Unit: million dollars)

The adjusted Planned amount of project Estimated Present cost investment plan cost in the estimated Change in Item last period cost (by estimated (by June (benchmark (by June September cost 2017) identified by 2018) 2019) ADB)

A Fundamental Regional Road 443.47 314.67 394.87 388.33 -6.54 Improvement in Rural Road 76.89 212.58 224.40 210.36 -14.04 Accessibility Organization enhancement 3.34 2.24 2.34 2.19 -0.15 and capability building Subtotal 523.7 529.50 621.61 600.88 -3.29 Unforeseeable B 56.02 49.52 51.62 48.33 -0.63 cost

Financial C charges in 9.81 9.56 9.97 9.34 -24.65 implementatio n

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Total 589.53 588.59 683.20 658.55 -6.54 The estimate for each works contract includes the original Bill of Quantities (BOQ) value plus variations (-or+) and variables. Variation Orders are issued for quantity and design changes, particularly in cases where the design refinement is greatly different from the designs used for tendering. Variations will be made to account for changes in design to accommodate technical improvements and refinement of quantity estimates as the work proceeds. Generally, the changes are a modification and refinement of the BOQ quantities to reflect the quantities as have varied from the original estimates. The great decrease in project cost resulted from the lowering of the amount of bidden contract and the fluctuation in exchange rate between US dollars and Chinese yuan. The final estimated project cost varied along with the grant of construction contracts, start of construction work, and the change in construction completion.

Cost in organization enhancement and capability building was composed of two parts: the actual amount granted in the contract and the change in the service range, which have cause the decrease in estimated cost. The unforeseen cost and financial charges in implementation remained unchanged.

5.7.3 Construction Supervision Services

Construction Supervision contains supervision on progress, quality, the execution of contract etc. The project supervisors are responsible for routine check and supervision and the supervision service includes supervision on laboratories, testing center and environment. The supervising consulting company assign different professionals to the project to meet the construction need. A large number of supervisors in the field guarantee the proper supervision on all the construction activities. The construction supervisors will continue the supervision on the environment and sanitation of the construction site, and require the contractor to improve the implementation of environmental measures. The construction supervisors will prepare monthly and quarterly environmental reports.

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Details can be found in the following table 5.7-2.

Table 5.7-2 Consulting Organizations of Construction Supervision

and Laboratory (Service Contract)

Consultancy Contractors Performance

Satisfactory. The consultant services are adequate Menglian-MM Yunnan Shengmeng with most of the proposed personnel commencing Road General Engineering work on time. The supervision action is carried out Supervision Office Consulting Co., Ltd. effectively. The service is effective and sufficient.

Acceptable. The consultant services are adequate NJ Road General Shangdong Ping’an with most of the proposed personnel commencing Supervision Office Luqiao Engineering work on time. All documents are well recorded and (NJ-Sub1 to Sub 5) Consulting Co., Ltd. kept.

NJ Road General Yunnan Yuantu Acceptable. The consultant services are adequate Supervision Office Engineering with most of the proposed personnel commencing (NJ-Sub 6 to Sub Supervision Co., work on time. All documents are well recorded and 10) Ltd. kept.

Independent Materials Testing Yunnan Jiaotong Satisfactory. This contractor provides sufficient Laboratory Tumu Testing services. The site laboratory, testing equipment, (Menglian-MM Research Center testing apparatus and personnel are sufficient. Road)

Guizhou Independent Communication Acceptable. This contractor provides sufficient Materials Testing Construction services. The site laboratory, testing equipment, Laboratory (NJ) Engineering Testing testing apparatus and personnel are sufficient. Center.,Ltd

5.7.4 Safety and Public Health

From the outset of construction, the General Monitoring Office and all the tractors have been asked to attach great importance to the issue of safety of construction and AIDS prevention. The publicity and education and work plan in this field has become one part of management organization and the influence of these work has been spread

197

to all the communities of the project areas under the formal and informal participation of communities. Health agencies along the project road would work together to promote the work in this field.

Contractor’s workforce was the group of highest risk. Contractors were asked to establish Health and Safety Action Plans with local health facilities to ensure adequacy of capacity and emergency response preparedness. Through inclusion in the conditions of contracts, the construction contractors are obliged to carry out the works in a manner that provides for safe and healthy conditions as a general condition. Further, the conditions of contract demand that the contractor shall:

(a) disseminate information on sexually transmitted diseases, including HIV/AIDS to its workforce and to communities surrounding the work site and

(b) implement HIV/AIDS awareness and training for employees, including subcontractors.

By far, no serious public health problem and accidents were reported by contractors and supervisors. Those light injuries can be managed in the field where has equipped with first-aid kit or by clinics around. Some of the sick leaves are because of mild illness or seasonal disease. The low-frequency record of problems has shown that safety and public health have been stressed. The more stressed the construction work becomes and the more people involved, the greater importance would be attached to health and safety.

5.8 Organization Construction and Trainings in the Project

5.8.1 Organization Construction

The Pu’er Municipal Government (PMG) is the Executing Agency and Pu’er Municipal Transport Bureau (PMTB) is the Implementing Agency for the project. Project Management Office (PMO) was established in March 2014 ， which is subordinated to PMTB, for project coordination and liaison with ADB. The 198

construction headquarters and the county transportation bureau both affiliated to the PMO, are directly responsible for the supervision and management of the project work.

Table 5.8-1 The Structure of ADB PMO

Nation No. Name Title/DEPT. Gender Contact Notes ality

Zhao 1 Director Male Han 13508799551 PMTB Shifa

Zhang 2 Vice Director Male Han 13987920669 PMTB Kun

Tang 3 Vice Director Male Yi 13987970784 PMTB Yonghua

Pu’er Transportation 4 Chen Qin Vice Director Female Yi 18087919310 Investment Co., Ltd.

He DEPT. of Pu’er Transportation 5 Male Han 13466191573 Yonglu Contracts Investment Co., Ltd.

Yang DEPT. of Pu’er Transportation 6 Female Han 15125559191 Chunyue Contracts Investment Co., Ltd.

Tang DEPT. of Pu’er Transportation 7 Female Han 13577971359 Lijun Finance Investment Co., Ltd.

Mu DEPT. of Pu’er Transportation 8 Female Hani 13324995468 Junting Finance Investment Co., Ltd.

DEPT. of Pu’er Transportation 9 He Junze Social Male Hani 13648877227 Investment Co., Ltd. Security

Xu DEPT. of Pu’er Transportation 10 Male Yi 13887974487 Xinghe Engineering Investment Co., Ltd.

DEPT. of Pu’er Transportation 11 Yang luyi Female Lahu 13769087373 Translation Investment Co., Ltd.

Note: The data are from ADB PMO in Pu’er City.

In order to ensure the implementation of this project, the ADB project management office is composed of 6 professional highway construction and management personnel 199

selected by PMTB and the construction company, as well as 5 professionals recruited from the society. A minimum of five qualified full-time professionals in ADB’s project management office meet the ADB’s requirements. The project management office was created to meet the ADB’s requirements by the third quarter of 2014. There are 5 female employees in ADB’s project management office, accounting for 45.5% of the total staff, and 20% of the staff in ADB’s project management office are female.

The PMO is directly in charge of procurement and supervision of project components under PMTB’s oversight. The PMO coordinates the implementation of the rural access and institutional strengthening components, for which daily management responsibility has been assigned to the county transport bureaus (CTBs).

The PMO is supported by various consultants including Construction Project Supervisors, Project Management Consultant (PMC), procurement agents, agencies for external environment monitoring and consultants for external social safeguards monitoring.

5.8.2 Trainings

Executing Agency and Implementing Agency consider highly the influence of training of project employees to the success of the project. From the beginning of the project, many internal and external trainings have been organized, centering on the present problems and need in the future.

5 trainings were provided by PMC and ADB to PMO, external consulting companies, contractors, staff of related local authorities, covering financial management and project management, including project contract management, environmental protection on road network etc. 88 person-time participated in the trainings, with 42 female person-time included, accounting for 47.72%.

Details are offered in the following Table 5.8-2.

Table 5.8-2 Trainings of Yunnan Pu’er Regional Integrated Road

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Network Development Project

Number of Female Topic Trainer(s) Attendees Date Trainees Trainees

PMC International Specialist of Egis Training(Sustainable International in June 20-24, Infrastructure Asset France and officials PMO staff 6 2 2018 Management, Evaluation and in Highway Bureau Maintenance) in Switzerland

FIDIC General Conditions of PMO staff, PMC – Egis Contract – Civil Works External July 19-20, Contract specialist 38 18 contract administrative Consultant, 2018 (DTL) management Contractors

Chinese General Condition PMC – Egis PMO Central Oct. 25, of Contract for Civil Works – Contract specialist 25 13 and Local Units 2018 Administrative management (DTL)

PMC International Training(Advanced Specialist of Egis environmental protection and International in Dec. 3-12, management concept for France and officials PMO staff 15 9 2018 road network during in Highway Bureau construction and operation in Switzerland period)

Training Workshop on ADB Dec. 10-16, Project Contract ADB PMO Staff 4 2019 Management Practice

5.9 Other Activities

Based on the requirements of government organizations and project construction, a Grievance Redress Mechanism was established and propagated among stakeholders so they were familiar with how the mechanism worked. Every entity, constructor, every supervision company and the PMO representing EA and IA appointed focal persons to deal with complaints. Every complaint was recorded along with its details and solutions and could not be accessed without approval. Due to privacy issue, the complaints were

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not described in this report.

Transparent and effective channels were established for complaining and appealing throughout the implementation of Resettlement Plan and Ethnic Minority Development Plan. ADB and Project Construction Headquarter took the mechanism seriously and put on posters at all village committees to further showcasing the organization in charge and procedures of complaining and appealing. The external monitoring group still suggested that apart from clarifying responsible bodies and procedures, the implementing agencies of resettlement should make more efforts to handle the complaints, especially to effectively manage the risks and problems, especially to solve the risks and problems in resettlement work with patience and carefulness.Meanwhile, it is also important to record and make both paper and electronic portfolios of complaints and appeals.

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6. Monitoring Result

6.1 Monitoring on Project Impact, Result and Output

Table 6.1-1 Monitoring on Project Impact, Result and Output

Aspect of Level-III Target Fulfillme Fulfillment Evaluati 2013 2014 2015 2016 2017 2018 Target indicator Year nt in 2018 Evaluation on

Cross-border transaction volume at 3.4 5.6656 5.0164 9.02 11.6 10.26 6.8 2023 150.88% Meng’a Port (10 billion dollars)

Affect Cross-border vehicles at 21.97 24.86 27.46 30.30 32.6 37.52 43.94 2023 85.39% Meng’a Port (10 thousand)

Cross-border 101.22 119.99 134.10 146.38 159.61 129.79 202.43 2023 64.12% population at

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Meng’a Port (100 thousand person)

Cross-border transaction volume at Longfu 904 970 1,080 2,180.2 2,968.3 8,550 1,808 2023 472.9% Channel (thousand yuan)

Cross-border vehicles at 16 21 12 33 558.17 32 2023 0.00% Longfu Channel

Cross-border population at 10.2 12.3 15.6 16 10.8 188.04 20.4 2023 0.00% Longfu Channel (10 thousand)

In normal progress with Poverty rate of 27.90% 22.05% 18.26% 16.45% 14.09% 8.12% 25% 2023 682.07% an increase rate Pu’er City higher than expectation

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Trip Time from For the village to town 42 94.97 87 47 50.25 30 2020 -19.64% negative (mins) influence of construction, this indicator Times of round- became higher trip of rural households to 5.2 6.52 4.53 9.1 3.63 7 2023 -30.19% (negative villages/towns increase) than per month that before construction.

Round-trip time of minibus from Result 8 8 10 14 / 5 -75.00% Ning’er to Not included in Longfu Port this monitoring Transportation period cost of vehicles 0.9 0.9 / / -20% on project roads (yuan/mile)

Collision accident rate in 11.6 13.05 11.21 376.89 409.93 10 project counties (/100,000 people)

Death rate of 3.9 11.82 9.99 9.00 9.2 3 traffic accident in 205

project counties (/100,000 people)

accident rate per one hundred 1.73 1.43 1.02 1.02

vehicle

death rate per one 0.05 0.04 0.07 0.0004 hundred vehicles

Road condition Behind 47% 47% of NJ Road schedule

Road condition Behind 98% 98% of MM Road schedule

Transportation of Haven’t started Meng’a Material yet, behind

Transit Center schedule

Rate of female employees in 23% 14% 9% 20% 46.50% unacceptable non-technical field

Output the percentage of nontechnical jobs ≥50% ≥50% ≥50% ≥50% 100% acceptable given to ethnic 206

minorities, females, the poor and affected population

Safety rating of 3-star rate acceptable regional roads

Number of safety In normal 152 471 1,093 1,307 signs on roads progress

Number of effective In normal 75 71 127 217 measures for progress speed limit

Person-time of In normal road safety 289 432 progress trainings

Resettlement In progress, progress of the unfinished project

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Affected In normal population who 944 197 progress get skill trainings

Rate of females who get trainings on livelihood In normal restoration to the 30% 38% 50% progress affected population who get trainings

Whether the house owner of In normal the new house is 43.75% 52.94% progress the two of the couple

Completion of In progress, no no no land acquisition unfinished

Completed subcontracts of In progress,

rural road unfinished improvement 89%

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Length of the completed subcontracts of rural road improvement

Rate of the jobs offered to minorities, females, the poor, and the affected ≥30% Not included in population to this monitoring those available period non-technical work

Work days of females to the number of days of employment ≥75% created by project maintenance along the 600- mile rural roads

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Rate of female employment in the construction

of 1200-mile village-level road1200

Rate of village- level road

maintenance (quantity or mile) five new village In normal bus service routes 2 5 60% progress on a pilot basis

Rate of female employment for maintenance Not included in work of rural 86% ≥70% this monitoring roads of period communities (at least 75%)）

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Project Influence: There are 7 level-3 monitoring indicators in the part of project impact, of which 6 indicators’ statistics related to trade of Meng’a Port and Longfu Port are not available for monitoring. The indicator of poverty rate of Pu’er City has decreased year by year at an decrease rate higher than expectation.

Project Result: There are 8 level-3 monitoring indicators in the part of project result. Comparing with the condition before construction, some indicators showed negative growth for the cause of the construction in the contemporary period, mainly the 2 indicators of the time spent on trip from village to town, time spent on round-trip between village and towns. Along with the progress of construction, the above indicators were expected to be improved in the following monitoring period. Among the 4 indicators related to road safety, collision accident rate of project counties, death rate in traffic accidents, accident rate per 100 cars and death rate per 100 cars, accident rate of project counties and death rate in traffic accidents were not available for monitoring. The indicators of commute time of passenger cars between Ning’er and Longfu Port and the transportation cost per vehicle per 1,000 meters (yuan/meter) were not included in this monitoring period because of the absence of related statistics.

Project Output: There are 22 monitoring indicators in the part of project output, of which 7 indicators were excluded in this monitoring period, 2 have met the requirement, 7 were in progress as expected, and 3 were behind schedule (1 indicator, not started). Resettlement progress and land acquisition were behind schedule because of the updated Resettlement Plan. The rural road construction (calculated in construction progress for the inefficiency of collected statistics) has finished 89% and was still in progress. 7 trainings on road safety for 432 person-time were organized. The village-level questionnaire showed that 43.75% of the house heads of house registration were both parties of the couple.

There are 37 level-3 indicators in project influence, project result and output, in which 8 were not included in this monitoring period, 10 were of no statistics. 19 level- 3 indicator were virtually monitored. 10 indicators were finished before schedule or 211

have surpass the expectation, accounting for 53% of the total actual monitored indicators.

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6.2 Development of Organization

There are 8 indicators in institutional development, of which 5 indicators have completed and would not be included in the following monitoring period. In March 2014, PMO was founded and by now there is no change in personnel and female employees. There were 12 employees in PMO, including 5 females, accounting for 42%. In 2018, there are 16 full-time employees, including 8 females accounting for 50% of the total. PMG functions as EA, in charge of overall implementation and supervision; PMTB, IA. ADBPMO, subordinated to PMTB, has clear allocation of duties and responsibilities. ChinaRAP has provided local designers with road safety assessment for road improvement. Grievance redress mechanism was established.

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6.3 Project Activities

Table 6.3-1 Monitoring on the Implementation of Main Activities

2014 2015 2016 2017 2018 2019 Chronicle of Events Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Regional road design

1.1 NJ Road design, safety audit

Civil engineering construction, preliminary

safety audit

1.2 MM Road design, safety audit

Civil engineering construction, preliminary

safety audit

The environment management, resettlement, supervision on and the 1.3 implementation of Ethnic Minority Development Plan

1.4 Land acquisition

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The environment management, 1.5 resettlement and implementation of Ethnic Minority Development Plan

Completion of Meng’a Material Transit 1.6 Center

Rural Road Design

2.1 Rural road design, safety audit

Civil engineering construction, preliminary 2.2 safety audit

The implementation and supervision on 2.3 Ethnic Minority Development Plan

The implementation of transport service 2.4 pilot project, rural road maintenance and local improvement

2.5 checking the achievement of 2.4

PMO

Set up PMO, at least 5 professional 3.1 qualifies personnel

3.2 Setting up the appealing mechanism

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Contracts on consulting service of social 3.3 security, gender and drug prevention

3.4 Offering training on special skills

The implementation and supervision on 3.5 Resettlement Plan, Ethnic Minority Development Plan, and Gender Action Plan

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018 2019

Planned schedule Virtual schedule Schedule lagged behind

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According to the monitoring result, the project activities of road design and safe audit of NJ Road, MM Road and rural roads have been finished as expected. In the aspect of project management, consulting contracts of grievance redress mechanism, safety protection, gender and drug trafficking have been established and trainings on special technical skills have also finished. Regional road construction, environment management in the constructing period, resettlement and Ethnic Minority Development Plan were all carried on according to the schedule. The 18 indicators of project activities were in progress as scheduled, 9 of which have been completed, accounting for 50% of the total.

9 indicators were behind schedule, accounting for 50% of the total. Regional road construction work have been seriously behind schedule. For the updated Resettlement Plan and the increase in land acquisition and house demolition, the resettlement was slightly behind schedule. The planned land acquisition which was expected to be finished in Q1 of 2016 was in progress with some finishing touches by this monitoring period.

Work of Meng’a Material Transit Center, rural road construction and rural road maintenance, on-spot improvement and pilot village bus service etc. have no progress by Q3 of 2019. According to the latest progress report and information from field investigation, the rural road construction has been started in Q4 of 2017. By Sept. 2019, 89% of the construction has been finished.

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7. Problems and Suggestions

7.1 Project Activities Lagging Behind

According to monitoring results, 9 out of 18 indicators, namely 50% of the indicators for project activities have progressed according to the schedule. Compared with the previous monitoring period, there were two new delayed activities, which shows the project activities are lagging behind the schedule.

7.1.1 Present Problems

1. Land acquisition and House Demolition:

Menglian-MM Road：There are still some land acquisition and resettlement issues to be deal with, mainly including: 1) land ownership issues between Mengma Tea company and Paliang village; 2) compensation for Mengma Rubber company; 3) housing demolition and resettlement in Menglian (Meng’a) Cross-Border Economic Cooperation Area; 4) a few immigrants have not moved to the resettlement sites; 5) dealing with and issuing the Certificate of Land Use Right for immigration.

NJ Road: the construction program for the resettlement site for Shuicheng village, Baozang Xiang had been completed, but construction had not begun. Due to the geological conditions of the project area, some affected households cannot find suitable housing land. In addition, due to the complicated examination and approval process, although the villagers’ homestead application has been submitted, most of the affected households have not obtained the Certificate of Land Use Right.

2. Regional roads construction:

The construction progress of the regional road is lagging behind, and PMTB has signed the construction extension contract with the contractor. Rural road construction: since the last period of monitoring, the overall progress has been advanced quickly, but the time has over schedule. PMTB has extended the project by signing the construction

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extension contract with the contractor.

3. Other problems: the construction of 6.67 ha Meng’a Material Transit Center

has not been started. It is learned that the Office of Meng’a Border Economic Cooperation Zone will not start the construction until the roads are finished. Meanwhile, no progress had been made till Q2 of 2019 on rural roads maintenance and improvement or pilots of transport services.

7.1.2 Suggestions for Project Activities

1. Attention should be paid to project deadlines and funds. Although PMTB has extended the construction of regional roads and Rural Roads by signing project extension contracts with the contractors, the extension will be confronted with many uncertainties, such as the increase of materials and labor costs, and the increase of fund gap that has already existed in many sections. As a result, it is suggested PMO and ADB should pay attention to those problems and make plans to address the fund shortage of the contractors. Attention should also be paid to the construction of Meng’a Material Transit Center to further coordination with the Office of and to accelerate the project implementation.

7.2 Increase of Adverse Impact, and Unsatisfactory Outputs and Outcomes

There are a total of 37 three-level indicators of project impact, outputs and outcomes, 8 of which are not included in the current monitoring indicators, 10 of which are not provided the date for the time being, and 19 of which are actually monitored in the current period. There are 10 indicators mentioned that are normally advanced, ahead of schedule or exceeded criteria, accounting for 53% of the total number of actual monitoring indicators.

7.2.1 Present Problems

1. Some road sections are open to traffic at limited time due to poor road conditions

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during the construction period. Constructors have too much workload to guarantee road accessibility during the rainy season, when landslides and other natural disasters are likely to affect traffic condition. As a result, such indicators related to road transport capacity, such as “travel time from village to town” and “number of monthly trips by rural households”, showed negative growth.

2. Although there is no data in this monitoring for the indicator of “Running cost of vehicles per km on project roads”, the villagers have reported the poor road condition has caused the increase of direct travel cost, including oil and time, and indirect cost, like vehicle maintenance and accommodation (the one-day trip has been prolonged to two days and accordingly accommodation expense has been incurred).

3. The villages have been obliged to maintain the village roads. A position of road maintenance has been set every two to three km with the wage of 500 yuan/month.

7.2.2 Suggestions to Mitigating the Adverse Impacts

1. Enhance coordination and communication with all stakeholders. The progress of projects and implementation of EMDP are not relied on PMO only but on the joint efforts of all the organizations involved such as local government, contractors, Labor Bureau, Transportation Bureau, Minority and Religion Bureau, Labor and Social Security Bureau, Tourist Bureau, Women Association, Human Resources etc.. Considering the complexity and difficulties during implementation, coordination and communication with all the parties will ensure better delivery of the project outcomes.

2. Promote the entries of complaints and appeals. In order to make sure farmers’ complaints are handled, PMO has established a sound grievance redress mechanism, where farmers can complain in more than one entry. But they do not know other entries expect the ones through project constructors and village committees. The entry via constructors does not work properly. Although PMO has dealt with the complaints received promptly, the monitoring group suggests it should further promote other complaint entries and establish a check-up system for the problems that are likely to 220

arise, so as to ensure appeals reach corresponding departments.

3. Continuously monitor the project and collect data. Monitoring on the project entails broad data collection, and it is difficult to track dynamic data during project construction. PMO should pay special attention to the date collection of highway construction progress, local labor force, local materials, training, and solutions to negative influence on villagers etc.

4. Strict Enforcement of ADB performance indicators. The content of human trafficking, wild life protection, border trade and drug prevention etc. were included in the planned performance indicators. However, in the actual implementation, these work were carried out slowly for lacking of a special department accountable for them. It is suggested that EA should allocate these work specifically to departments and guarantee the smooth implementation of the project.

5. It is hoped that through road construction and institutional development, a professional and paid road maintenance mechanism will be formed to provide local residents with reliable income channels and to improve road safety. However, in actual implementation it is difficult for PMO to change the road maintenance mode within a short period of time. In addition, the rural road construction is still in progress, and the road maintenance system is slow to establish. Therefore, attention should be paid to these problems.

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Appendices

Table 1 Number of Employees

Local People Non- Technic Local Subcontract Total Minorities technical al Staff Staff Male Female Staff

1st Subcontract of NJ Road 172 138 25 31 26 146 163

2nd Subcontract of NJ Road 68 55 9 19 38 30 64

3rd Subcontract of NJ Road 29 25 4 7 24 5 29

4th Subcontract of NJ Road 44 35 4 1 20 24 39

5th Subcontract of NJ Road 35 32 3 8 26 9 35

6th Subcontract of NJ Road 45 35 4 8 22 23 39

7th Subcontract of NJ Road 33 26 0 18 11 22 26

8th Subcontract of NJ Road 40 34 4 6 12 28 38

9th Subcontract of NJ Road 56 47 3 17 16 40 50

10th Subcontract of NJ Road 87 56 8 19 15 72 64

Sub-total 609 483 64 134 210 399 547

1st Subcontract of MM Road 76 1 1 0 63 13 2

2nd Subcontract of MM Road 86 65 14 15 38 48 79

Sub-total 162 66 15 15 101 61 81

Total 771 549 79 149 311 460 628

Note: the data were provided by contractors.

Table 2 Number of Non-technical Workers

Local People Subcontract Total Female Minorities Male Female

1st Subcontract of NJ Road 146 20 122 19 22

2nd Subcontract of NJ Road 30 5 25 3 15

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3rd Subcontract of NJ Road 5 1 4 1 3

4th Subcontract of NJ Road 24 4 20 4 1

5th Subcontract of NJ Road 9 1 8 1 3

6th Subcontract of NJ Road 23 2 20 2 1

7th Subcontract of NJ Road 22 0 21 0 16

8th Subcontract of NJ Road 28 4 24 4 6

9th Subcontract of NJ Road 40 4 35 2 17

10th Subcontract of NJ Road 72 7 48 6 17

Sub-total 399 48 327 42 101

1st Subcontract of MM Road 13 7 0 1 0

2nd Subcontract of MM Road 48 10 33 9 9

Sub-total 61 17 33 10 9

Total 460 65 360 52 110

Note: the data were provided by contractors.

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Table 3 Salary Standard of Workers of NJ Road

Salary Standard for Technical Workers (yuan/month) Salary Standard for Non-technical Workers (yuan/month)

Subcontract Local Grand Grand Average Minorities Female Local Population Minorities Female Population Average

1st Subcontract of NJ Road 7,215 7,322 5,677 5,700 3,000 3,000 3,000 3,000

2nd Subcontract of NJ Road 4,587 4,591 4,000 4,367 2,713 2,707 2,693 2,720

3rd Subcontract of NJ Road 4,167 4,167 5,000 3,333 4,300 4,300 3,500 3,000

4th Subcontract of NJ Road 4,550 4,066 - 5,000 4,416 4,416 2,500 4,000

5th Subcontract of NJ Road 5,173 5,173 5,300 5,000 3,500 3,500 3,500 3,000

6th Subcontract of NJ Road 2,545 2,470 1,857 2,500 1,957 1,954 2,000 1,500

7th Subcontract of NJ Road 3,454 3,700 4,250 3,000 2,373 2,371 2,362 -

8th Subcontract of NJ Road ------

9th Subcontract of NJ Road 4,563 4,533 4,714 3,000 4,600 4,621 5,000 3,250

10th Subcontract of NJ Road 6,333 5,450 3,750 4,250 4,129 4,172 3,988 3,714

Average 4,731.89 4,608.00 4,318.50 4,016.67 3,443.11 3,449.00 3,171.44 3,023.00

Note: the data were provided by contractors.

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Table 4 Salary Standard of Workers of MM Road

Salary Standard for Technical Workers (yuan/month) Salary Standard for Non-technical Workers (yuan/month)

Subcontract Grand Local Grand Local Minorities Female Minorities Female Average Population Average Population

1st Subcontract of MM Road 3,000 3,000 3,000 3,000 2,784 3,000 - 2,671

2nd Subcontract of MM Road 4,660 4,621 4,620 4,000 4,921 4,792 4,230 4,800

Average 3,830 3,810.5 3,810 3,500 3,852.5 3,896 4,230 3,735.5

Note: the data were provided by contractors.

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Table 5 Locally Purchased Production Material and Rent Cost

Production Material Procurement Subcontract Office Rental Cement Sand Stone Others (with notes)

Cost Cost Cost Cost Cost Item M3 M3 M3 Project (yuan) (yuan) (yuan) (yuan) (yuan)

1st Subcontract of NJ Road 524,400 359,040 830,725 74,000

2nd Subcontract of NJ Road 1,600,000 402,000 1,300,000 Rebar 17,000,000

3rd Subcontract of NJ Road

4th Subcontract of NJ Road 24,000 30,000 Rebar 400,000

5th Subcontract of NJ Road 110,000

6th Subcontract of NJ Road 72,000 40,000 50,000 4,000

7th Subcontract of NJ Road 48,000 44,000 40,000 4,000

8th Subcontract of NJ Road

9th Subcontract of NJ Road 209,090 72,000 135,321 127,000

10th Subcontract of NJ Road 190,000 Rebar 70,000 25,000

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Sub-total 2,667,490 947,040 2,356,046 17,470,000 344,000

1st Subcontract of MM Road 512,677 123,269 128,403 Steel 761,168

2nd Subcontract of MM Road 377,657 1,737,470 3,180,000 Rebar 35,6719,468

Diesel 830,379,676

Sub-total 890,334 1,860,739 3,308,403 1,187,860,312

Total 3,557,824 2,807,779 5,664,449 1,205,330,312 344,000

Note: the data were provided by contractors.

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Table 6 Training Records Provided by the Contractors

Participants No. Training Topics Time Number of Trainees Male Female Minorities

1 Anti-drug and AIDS Prevention 10 371 348 23 2

2 Human Trafficking Prevention and Healthcare 7 310 285 25 24

3 Environmental Protection 11 323 303 20 32

4 Safety Education 10 289 273 16 20

5 Occupation Safety 18 327 310 17 23

6 Technology Safety 13 211 189 22 39

Total 69 1,831 1,708 123 140

Note: the data were provided by contractors.

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Table 7 Other Data Provided by the Contractors

Number of Number of Number Times of Number of Number Number of Workers Effective Number of of Spraying in Workers Isolated of Subcontract Propaganda Receiving Speed Condoms Mosquito Construction for Tuberculosis Safety Handouts Tuberculosis Limiting Nets Sites and Treatment Signs Check Measures

1st Subcontract of MM Road 230 90 76 230 17 78 190

2nd Subcontract of MM Road 80 20

1st Subcontract of NJ Road 200

2nd Subcontract of NJ Road 68 22 300 68 13 553

3rd Subcontract of NJ Road 10 80 5 25

4th Subcontract of NJ Road 30 10

5th Subcontract of NJ Road 30 3 15

6th Subcontract of NJ Road 30 30 2 30

7th Subcontract of NJ Road 100 4 30

8th Subcontract of NJ Road 20 40

9th Subcontract of NJ Road 150 30 6 100

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10th Subcontract of NJ Road

Total 748 90 158 622 85 0 99 1,213

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Briefing on 2019 Regional Road Survey

Dates: September 29 to October 3, 2019

Interviewees: Construction Headquarter of NJ Road

Survey Objects: Villagers, village carders and town carders along MM Road

1. Overall Situation of MM Road Construction

Compared with 2018, the construction of MM Road speeded up significantly in 2019. But the construction period is long, and many sections have not been paved yet, which has not met local people’s expectation of convenient, safe and smooth traffic. Many villager groups in the region organized trainings on environmental protection and road safety, but the villagers were not willing to participate.

Rural roads are the bridge and link for rural economic and social development. The villagers believe the overall benefits outweigh the disadvantages. Progress in road construction has boosted native produce and agricultural products. But problems still exist:

1) According to the villagers, the construction of supporting facilities has lagged behind the construction of rural roads, and there are insufficient warning signs along the sections under construction, causing safety hazards;

2) The slow paving pace has caused trouble for local people. Traffic jams happen whenever the road is filled with puddles from the rain.

3) A large number of villagers in the samples have not participated in any training. Most villagers say they are unwilling to do so partly because the trainings will not help increase income and partly because they think they cannot understand the training content.

4) Few villagers participated in road maintenance, and even fewer know there are training on the topic;

5) There is unclear ownership of requisitioned tea land in Mengma (Yintai Group at Paliang Village).

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2. Yintai Group at Paliang Village

The surface of the road in Yintai Group at Paliang Village is still under construction, with poor road surface and little hardening. But the road is quite wide. One of the major problems reported by the villagers is that pavement construction has caused too much dust, affecting local environment and people’s health. Compensation for land acquisition caused by house relocation has been completed.

However, many people are dissatisfied with the compensation for land acquisition or house demolition because they believe the amount of compensation is low. Some farmer has reported there has been no negotiation over the land area affected by road construction, which has impeded his business. Affected villager: MU Yongfu, Mob: 18087914680

In addition, there is dispute over the ownership of the land compensation between the farmers and the tea factory. The former are not clear about the ownership, but the later has not given reasonable explanation. The farmers involved are: YAN Shuo, Mob: 13508799403; ZENG Meiya, Mob: 15125625492. Both live in Group 1 of Yintai.

The government is coordinating relevant parties to solve the issues over land ownership.

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3. Hegexin Village

According to the survey, rural roads have greater traffic capacity, providing travel convenience for the locals. But the roads to the villages are not hardened enough, which has caused troubles in rainy days. There are insufficient warning signs along the sections under construction, causing safety hazards. Slopes have not been well protected during road construction. It is suggested to protect the slopes and the environment during construction.

4. Menglian State-run Farm

An old person at Menglian State-run Farm broke his/her leg while traveling as a result of the poor traffic condition caused by road construction. The workers there said the construction has left both sides of the road too high and the dumped soil blocking the pathway. The contractor did not clear a new pathway until early October, when they added a makeshift ladder there. The workers also report: traffic cost has risen as a result of road construction; vehicles go too fast; there are too many holes on the road, which easily become puddles on rainy days; traffic signs should be added; construction pace

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is too slow; and the construction team is not responsible.

As shown in the picture below, the original flat road was dug deeper, with both sides too high, and waste soil has blocked the pathway. Villagers have to take detours, which is inconvenient and affect their daily life (a makeshift ladder was made several days before October). Staff at the farm report the project has lagged behind the schedule, road conditions are poor, traffic signs are few, the construction team is irresponsible, and there are safety hazards.

5. Huijiang Village of MM Administrative Village

Survey results show every sample household has vehicles. The villagers say the road has brought them convenience, and local agricultural products and native produce can be transported in time, which has boosted rural economy and driven rural industry development and adjustment. However, the long construction period has caused adverse impact. Some farmers whose land was requisitioned believe land requisition has led to land reduction, which has reduced their income source and arable land for future generations. They are also dissatisfied with the standard and mode of land requisition. Affected villagers: YAN Nongxiang and YAN Yi. 234

6. Mengma Town

The major problem in Mengma Town is about environment. Too much dust has severely affected the people living along the road. But it is found in investigation that the contractor sprinkles water twice a day to alleviate the problem. A deep pit is left on one side of the road in Mengma Town, presenting serious safety hazards and affecting daily transportation.

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7. Survey at NJ Road construction headquarter

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Normal traffic can be ensured in NJ Road, but some sections are in poor condition, where the vehicles at one side of the road have to wait till those at the other side pass by and traffic jams happen during large traffic flow. The problems worsen in muddy sections in rainy days. Some villagers in the area report the large number of heavy construction trucks have caused damage to original roads (see below).

The first and tenth sections of NJ Road are basically complete, and greening is underway in the first section. For the second one, the upper and lower retaining walls of the auxiliary structures and a bridge have not been completed. Part of the earthwork in the head of the third section has not been completed, and the structure is under construction. The bridge involved in the fourth section has been completed, and most of the structures are basically complete. Earthwork in the fifth section is underway, and the structure construction did not begin until August 2019, which was relatively late. Earthwork in the sixth section is basically complete, and the lower retaining walls are not finished. Earthwork in the seventh section is basically complete. The section involves seven bridges, with substructures basically complete except for bridge No.1. For the contractor of the eighth section failed to perform the contract, the unfinished construction work was planned to be contracted and carried on by Pu’er Communications Investment & Road and Bridge Construction Co., Ltd. However, the new contractor hasn’t signed the contract because the previous contractor hasn’t finish the clearing work yet. Part of earthwork in the ninth bid section has not been finished, and the beam and slab of the bridge have been partly finished.

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(Damage to the Original Road)

(Construction

Section and

238

Completed Section )

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