Due Diligence Report of Resettlement

Project Number: 48443-002 April 2021

People’s Republic of : Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project

For Contract Package No.: C-LS02

Prepared by Lanshan County Government of Hunan Province for the People’s Republic of China and the Asian Development Bank

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

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

Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project

Resettlement Due Diligence Report (Updated Version)

Of

Subproject of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill (Contract Package No.: C-LS02)

Lanshan County Government of Hunan Province April 2021

Currency Conversion Ratio (Exchange Rate in April 2021)

Monetary Unit = CNY (RMB) RMB 1.00 = $0.153

Abbreviations

ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FSR - Feasibility Study Report HD - House Demolition IA - Implementing Agency LA - Land Acquisition M&E - Monitoring and Evaluation PRC - People’s Republic of China LCG - Lanshan County Government RIB - Resettlement Information Booklet RP - Resettlement Plan

Unit of Measure 1 hectare = 10000m2 1mu = 666.67m2 1 hectare = 15 mu

Table of Contents A Background ...... 1 B Investigation Method and Process ...... 1 C Introduction to Sub-project ...... 2 D. Final Design ...... 3 E. Land Acquisition Scope and Resettlement Impacts ...... 4 F. DDR Conclusions ...... 5 Annex 1 Review and Approval of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill ...... 6 Annex 2 Land Lease Agreement of Lanshan Jiufenshan Existing Solid Waste Landfill in 1999 ...... 11 Annex 3 Land Acquisition Agreement of Lanshan Jiufenshan Existing Solid Waste Landfill in 2015 ...... 13 Annex 4 Construction Land Planning Permit for Lanshan Jiufenshan Existing Solid Waste Landfill ...... 15

A Background 1. This Due Diligence Report (DDR) should be read together with the attached report-Due Diligence Report (DDR) of Lanshan County, Hunan Province of Resettlement Plan (RP) of Lanshan County, Hunan Province jointly approved by Lanshan County Government and Asian Development Bank in May 2018 (https://www.adb.org/projects/documents/prc-48443-002-rp-4). Table 1 Approval Status and Update Plan of Preliminary Design of Lanshan County Sub- project Has the preliminary Update time of design review been Resettlement S/N Name of Sub-project completed by the Plan or due preparation date of diligence report the report Closure of Existing Lanshan 1 Yes 2021.4 Jiufenshan Solid Waste Landfill Upgrading and Reconstruction of 2 Qijia Village Existing Sanitary Yes 2021.6 Landfill in Lanshan County Existing Lanshan Xiaowujia Solid 3 Waste Landfill Off-site Transfer Yes 2021.4 Project Urban and Rural Waste Collection 4 and Transportation in Lanshan Yes 2021.6 County 2. The purpose of the Due Diligence Report (DDR) is to compare the project scope changes between feasibility study stage and preliminary design stage, to check if the design changes will cause any changes on resettlement plan and land acquisition. 3. Besides, it also aims to ensure the land acquisition will fully observe relevant laws and regulations in China and be consistent with ADB's Safeguard Policy Statement. The land acquisition process is transparent and open, the affected villages and groups are properly compensated and resettled, and there will be no leftover problems after the land acquisition is completed. B Investigation Method and Process 4. In December 2017, the preparation and research team visited the relevant units in Niucheng Village, Tafeng Town, Lanshan County, where the Project is located, collected relevant materials such as land acquisition compensation and resettlement agreement and land use approval, and interviewed some affected villages and groups. The main investigation contents of the Due Diligence Report include: Understanding the actual situation of land acquisition and house demolition, reviewing the compensation process of land acquisition and house demolition, understanding the public participation and complaints of the Project, evaluating the compensation process and payment of land acquisition and house demolition, finally drawing relevant conclusions, and formulating the Resettlement Plan (RP) of Lanshan County, Hunan Province. The content of the Project, Resettlement Due Diligence Report (DDR) of Lanshan County, Hunan Province, is an attached-report to the Resettlement Plan (RP) of Lanshan County, Hunan Province. 5. In March 2021, according to the preliminary design review results of the Project, the preparation and research team made a re-visit to the affected villagers, village collective officials, relevant natural resources departments of Lanshan County and other stakeholders in Group 4, Niucheng Village, Tafeng Town, Lanshan County, reviewed and investigated the data of the project land use scope and the production and living conditions of affected villages and groups, and completed the Due Diligence Report.

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C Introduction to Sub-project 6. The subproject of the updated Resettlement Due Diligence Report includes: Subproject of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill (Contract Package No.: C-LS02). The Closure of Existing Lanshan Jiufenshan Solid Waste Landfill is located in Niucheng Village, Tafeng Town, with a land area of 67.01 mu. From 1999 to 2014, it was a wasteland leased from Niucheng Village, Tafeng Town. In June 2014, the lease was stopped and the land was transferred to Niucheng Village Collective; In January 2015, Lanshan County Land Acquisition and Demolition Office acquired the total land area of 103.928 mu in Niucheng Village (Group 4), Tafeng Town for the Lanshan County Stone Industrial Park Project, including the 67.01 mu of land occupied by Jiufenshan Existing Solid Waste Landfill, without houses and structures.

Figure 1 Schematic Diagram of Location of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill

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Figure 2 2 Land Use Status of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill D. Final Design 7. The preliminary design of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill was started in June 2019, and passed the preliminary design review in December 2019. See Annex 1 for the review opinions (reviewed together with Existing Xiaowujia Solid Waste Landfill Off-site Transfer Project). 8. After check, the land use scope of closure component of the Project is all within the original land acquisition scope, including construction roads, leachate reservoirs and other structures within the original land acquisition red line, and no additional land acquisition, and without the impact of resettlement. Table 2 Comparison of Land Acquisition and Resettlement in the Preliminary Design of the Project Is there Feasibility Preliminary S/N Project name Unit any study stage design stage change Location of land Niucheng Niucheng 1 None acquisition Village Village Area of construction 2 Mu 60 41.82 Reduction land Is the land use area 3 Yes Yes None state-owned Is there any new land 4 acquisition or house None None None demolition

Figure 3 Design Red Line Map of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill E. Land Acquisition Scope and Resettlement Impacts 9. In the preliminary design stage, the total land area of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill was 41.82 mu. According to the results of on-site due diligence investigation, the construction of Jiufenshan Existing Solid Waste Landfill was started in 1999, and the construction land was leased. In 1999, Lanshan County Construction Committee signed a Lease Agreement with Niucheng Village Committee and villagers of Group 4 in Tafeng Town, which stipulated that the 67.01 mu of construction land of Jiufenshan Existing Solid Waste Landfill is leased from June 9, 1999 to June 9, 2014, with a lease term of 15 years and an annual rent of RMB 5,800, and the payment is made every 3 years. In June 2014, the landfill was decommissioned, and the covered and afforested land was returned to Niucheng Village Collective. According to the investigation and survey of the affected villagers in the project site, the relevant land acquisition procedures have been implemented in place. After the signing of the Land Lease Agreement in 1999, the local government has fully and timely paid the relevant compensation fees according to the compensation agreed in the agreement. 10. In January 2015, Lanshan County Land Acquisition and Demolition Office acquired 103.928 mu of land in Niucheng Village (Group 4) of Tafeng Town for Lanshan County Stone Industrial Park Project, including 67.01 mu of land occupied by Jiufenshan Existing Solid Waste Landfill. According to the Notice of Municipal Government on Publishing Compensation Standards for Land Acquisition in Yongzhou City (YZF [2012] No.26), Notice on Adjusting Compensation Standards for Land Acquisition in Lanshan County (LZF [2013] No.8) and Notice on Publishing Compensation Zone Division of Land Acquisition in Lanshan County (LZF [2013] No.8), it is determined that the compensation standards for land acquisition are: paddy field (RMB 40,000/mu), dry land (RMB 32,000/mu) and forest land (RMB 20,000/mu) respectively. After signing the Land Acquisition Agreement, Lanshan County Land Acquisition and Demolition Office fully and timely paid the relevant expenses according to the compensation agreed in the Agreement. Our project area was located within the collective forest land area, without AP.

11. In 2018, the original planned land area of the Project was 60 mu, and the design scheme was adjusted in the preliminary design stage. According to the result review of the preliminary design red line, the adjusted land area was 41.82 mu, and the land area was the original existing solid waste landfill site area, without additional land acquisition and house demolition. 12. In August 2020, the Lanshan Jiufenshan Existing Solid Waste Landfill Treatment Project obtained the project construction planning permit. (Annex 4) (Note: Jiufenshan Existing Solid Waste Landfill Site belongs to Lanshan County Stone Industrial Park, which is a state-owned land. Only the landfill area and surrounding road area need to be used in the closure project, and other areas do not need to be used. The permitted land area in the project construction planning permit is 41.82 mu, which is required for the closure treatment of this sub-project, and belongs to the original land area of the project, which is 67.01 mu) 13. According to the survey and investigation, the specific expenditure mode of the relevant land acquisition compensation is discussed and decided by all the villagers' group members. The main purposes of the compensation for land acquisition received by the collective include: The repair and maintenance of collective facilities, such as the maintenance of roads, cultural, recreation and clinic rooms, and the construction of public drinking water facilities; as well as the improvement of production facilities, such as the construction of water storage ponds, wells and sublateral canals for irrigation. These compensation distribution measures have effectively improved the living standards of local villagers. F. DDR Conclusions 14. 1. The land for the Project is state-owned land, without affected persons for house demolition. The land was used in the form of leased land since 1999. In June 2014, the land was decommissioned, and the covered and afforested land was returned to Niucheng Village Collective, and the relevant lease expenses were fully and timely paid. In January 2015, Lanshan County Land Acquisition and Demolition Office acquired a total land area of 103.928 mu in Niucheng Village (Group 4) of Tafeng Town, including 67.01 mu occupied by Jiufenshan Existing Solid Waste Landfill, and the relevant land acquisition fees were fully and timely paid. In August 2020, the Lanshan Jiufenshan Existing Solid Waste Landfill Treatment Project obtained the project construction planning permit. According to the results of due diligence, the land acquisition (lease) procedures in the area have been implemented in place, and the compensation fees have been fully and timely paid, without any leftover resettlement problems. 15. 2. According to the review opinions of the preliminary design results, due to scheme changes, the construction land use scope has been reduced by 18.18 mu compared to that in feasibility study stage of the component. And the 41.82 mu of design planned land use area in the preliminary design stage is within the original land acquisition scope. This component will not cause any additional land acquisition or land occupation or house demolition. There will be no affected persons due to this component.

Annex 1 Review and Approval of Closure of Existing Lanshan Jiufenshan Solid Waste Landfill

Annex 2 Land Lease Agreement of Lanshan Jiufenshan Existing Solid Waste Landfill in 1999

Annex 3 Land Acquisition Agreement of Lanshan Jiufenshan Existing Solid Waste Landfill in 2015

Annex 4 Construction Land Planning Permit for Lanshan Jiufenshan Existing Solid Waste Landfill