Resettlement Plan

July 2015

PRC: Anhui Chao Lake Environmental Rehabilitation Project

Resettlement Plan for the Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project

Prepared by the Project Working Group of the Feidong County Government for the Asian Development Bank. This is an updated version of the draft originally posted in June 2012 available on http://www.adb.org/projects/documents/anhui-chao-lake-environmental- rehabilitation-project-feidong-county-chao-lake-bas.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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

ADB-financed Anhui Chao Lake Environmental Rehabilitation

Updated Resettlement Plan for the Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project

ADB-financed Project Working Group of the Feidong County

Government November 2014

Letter of Commitment

Through the Ministry of Finance, Anhui Provincial Government has applied for a loan from ADB to finance Anhui Chao Lake Environmental Rehabilitation Project. And the Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project is one of its subprojects. Therefore, it must be implemented in compliance with the guidelines and policies of ADB on social security. This Resettlement Plan is in line with a key requirement of ADB and will constitute the basis for land acquisition, house demolition and resettlement of this subproject. The Plan also complies with the laws of the People’s Republic of China and local regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results.

At the preparation stage, the Feidong County Government prepared the first draft RP based on the feasibility study report, which was approved by ADB. As agreed with ADB, the Feidong County Government has updated the RP based on the DMS.

It has been confirmed that the Resettlement Plan (RP) for the ADB-financed Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project (hereinafter, the “Subproject”) has been formulated based on ADB’s social safeguard policies, and the applicable laws and regulations of the Chinese government. The resettlement work during the implementation of the Subproject will be conducted in strict accordance with the updated RP.

Executive Deputy Head of the Feidong County Government November 2014

Note on this Update As required by ADB, the RP should be updated based on the detailed design, and the updated RP will be the basis for resettlement implementation. According to the detailed design, HCCI, and the relevant township government and village committees conducted a DMS on Xianfeng Community and Xuguang Village, Cuozhen Town during March-October 2014. On this basis, the RP was updated. A summary of this update is as follows:

Summary of RP Update Item Former RP Updated RP Remarks Acquiring 106.05 mu of land, Acquiring 116.758 mu of land, Acquiring 10.708 mu more of including 105.33 mu of cultivated including 116.518 mu of land, including 11.188 mu more Permanent land and 0.72 mu of housing cultivated land and 0.24 mu of of cultivated land and 0.48 mu LA land, affecting 84 households housing land, affecting 151 less of housing land, affecting with 335 persons households with 568 persons 67 more households with 233 persons Temporary Occupying 90 mu of land, Occupying 55.66 mu, all being Occupying 34.34 mu less of land including 80 mu of wasteland and collective non-cultivated land land occupation 10 mu of collective pond Affecting two entities, with a total Affecting no entity One entity is no longer affected, demolition area of 340.4 m2, and the other’s lease contract including 60 m2 in masonry expired in April 2013 Affected concrete structure, 160 m2 in entities masonry timber structure, a landscaping pavilion (steel timber) of 50 m2, and a fitness space of 70.4 m2 Demolishing rural residential Demolishing rural residential Reducing HD area by 390 m2 houses of 550 m2, affecting 3 houses of 160 m2, affecting two and affected population by one Rural HD households with 16 persons, in households with 8 persons, in household with 8 persons which two households with 12 which one household with 4 persons are also affected by LA persons is also affected by LA Vulnerable 8 vulnerable households with 23 5 vulnerable households with 9 Affecting 3 less vulnerable groups persons persons households with 14 persons LA compensation includes land LA compensation includes land The compensation rate for compensation, resettlement compensation, resettlement farmland is increased by 3,520 LA subsidy and young crop subsidy and young crop yuan/mu, and that fro compensati compensation. In Cuozhen Town, compensation. In Cuozhen construction and unused land on policies the compensation rate for Town, the compensation rate for increased by 1,760 yuan/mu and rates farmland is 32,120 yuan/mu, and farmland is 35,640 yuan/mu, that for construction and unused and that for construction and land 16,060 yuan/mu. unused land 17,820 yuan/mu. Compensation rates are based Compensation rates are based The compensation rates for on replacement cost, being 807 on replacement cost, being 810 frame, masonry concrete, yuan/m2 for frame structure, 520 yuan/m2 for frame structure, 570 masonry timber, masonry tile yuan/m2 for masonry concrete yuan/m2 for masonry concrete and simple structures have HD structure, 340 yuan/m2 for structure, 370 yuan/m2 for been increased, moving subsidy compensati masonry timber structure, and masonry tile or timber structure is increased by 30 yuan per on policies 180 yuan/m2 for simple structure, (Grade 1), 340 yuan/m2 for time, and monthly transition and rates moving subsidy 300 yuan per Grade 2 and 310 yuan/m2 for subsidy increased by 1 yuan/m2 time, and monthly transition Grade 3, and 200 yuan/m2 for subsidy 3 yuan/m2 simple structure, moving subsidy 330 yuan per time, and monthly

Item Former RP Updated RP Remarks transition subsidy 4 yuan/m2 Choosing cash compensation or Choosing property swap or cash Changing from housing site allocation of housing site for compensation; through allocation to housing purchase Resettleme house reconstruction cash consultation, the resettlement at the resettlement community nt compensation community for property swap is Harmonious Garden in Cuozhen Town Combination of cash Combination of cash No change Livelihood compensation, industry compensation, industry restoration restructuring and skills training restructuring and skills training due to minor LA impacts due to minor LA impacts 9.498 million yuan 11.0828 million yuan Increased by 1.5848 million Budget yuan LA beginning in mid 2013 and LA beginning at the end of 2014 Schedule ending in 2014 and ending in 2015

Abbreviations

AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion CLMA Chao Lake Management Authority Hefei Cuocheng Construction & Investment HCCI - Co., Ltd. Hefei Engineering Consulting Service Co., HECS - Ltd. LEF - Land-expropriated Farmer M&E - Monitoring and Evaluation MLS - Minimum Living Security NRCR - National Research Center for Resettlement PMO - Project Management Office PRC - People’s Republic of China RIB - Resettlement Information Booklet RP - Resettlement Plan

Units

Currency unit = Yuan (CNY) 1.00 yuan = $0.15 1 hectare = 15 mu

Executive Summary 1. Resettlement planning The Subproject is one of the subprojects of the ADB-financed Anhui Chao Lake Environmental Rehabilitation Project. The Subproject will play a significant role in benefiting residents living and working beside Chao Lake in health, welfare and economy, and promoting the improvement of the water quality of the Chao Lake basin through sustainable engineering and non-engineering measures, and be an integral part of the process of realizing the Five-year Environmental Protection Plan of the People’s Republic of China (PRC). Land acquisition and resettlement under the Subproject will involve Xianfeng Community and Xuguang Village, Cuozhen Town, Feidong County. 116.758 mu of land will be acquired for the Subproject, including 35.788 mu in Xianfeng Community (35.538 mu of irrigated land and 0.24 mu of housing land) and 80.97 mu in Xuguang Village. Total demolition area is 160 m2. The range of house demolition is on both sides of the Zhennan River, which is located in the old urban area of Cuozhen Town. The Subproject will break ground in 2014 and be completed in 2015, and land acquisition, house demolition, compensation and resettlement will be started at the end of 2014 and end in 2015. The estimated resettlement costs of the Subproject are 11.0828 million yuan (based on prices in 2011), including basic land acquisition (occupation) costs, taxes and contingencies, accounting for 9.80% of the Subproject’s budget. 2. Land occupation and house demolition The main resettlement impacts of the Subproject are permanent and temporary land occupation, and the demolition of rural residential houses involving one village and one community in Cuozhen Town, Feidong County. 116.758 mu of collective land will be acquired for the Subproject, including 116.518 mu of cultivated land (99.79%) and 0.24 mu of housing land (0.21%); another 55.66 mu of land will be occupied temporarily; total demolition area is 160 m2, including 2 residential houses of 160 m2. 7 types of infrastructure and ground attachments and 151 households with 568 persons will be affected by the Subproject. The main resettlement impacts are summarized in the table below. Item Unit Quantity

Permanent Collective Collective land Mu 116.758 including: cultivated land acquisition Mu 116.518 land Temporary land occupation Mu 55.66 Demolition of residential house ㎡ 160 Household 149 affected by LA only Directly affected Person 560 persons Household 1 affected by HD only Person 4

Item Unit Quantity Household 1 affected by LA & HD Person 4 Household 151 Total Person 568

3. Policy framework and entitlements In order to avoid or reduce negative impacts of land acquisition, adequate consultation was conducted on the potential site of the Subproject, the affected village groups and persons at the feasibility study stage. An optimum option was selected through comparison. This Resettlement Plan (RP) is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Anhui Province, and ADB’s SPS (2009) SR-2. According to the above policy, and in consultation with local governments and affected persons (APs), the resettlement principles of the Subproject are: 1) Involuntary resettlement should be avoided where feasible, 2) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project, 3) The APs are given compensation and assistance in resettlement whether legal title is available or not, 4)If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land, 5) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan, 6) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations, 7) Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project, At least two members of each AH receive skills training, including at least one woman, 8) The RP is consistent with the master plans of the affected city (district/county) and township, 9)The resettlement expenses are sufficient to cover all affected aspects. 4. Resettlement strategy Compensation for permanent land acquisition includes land compensation fees, resettlement subsidies and young crop compensation fees. In Feidong County, the uniform average annual output value (AAOV) of irrigated land, non-irrigated land and vegetable land is 1,620 yuan/mu, the compensation multiple for farmland is 22 times, including land compensation fees of 7 times and resettlement subsidies of 15 times, and that for construction land and unused land is 11 times, including land compensation fees of 5 times and resettlement subsidies of 6 times. Temporary land occupation is caused by the silt dump in the river dredging and slope protection component mainly. All temporarily occupied land is low-lying wasteland. The owner has agreed with the village to compensate for the above land at 1,000 yuan/mu per annum. The period of occupation will be two years.

The compensation rates for demolished residential houses are 810 yuan/m2 for frame structure, 570 yuan/m2 for masonry concrete structure, 370 yuan/m2 for masonry timber or tile structure (Grade 1), 340 yuan/m2 for masonry timber or tile structure (Grade 2), 310 yuan/m2 for masonry timber or tile structure (Grade 3), and 200 yuan/m2 for simple structure. Moving subsidy is 330 yuan per household, transition subsidy is 4 yuan/m2 of building area specified in the certificate of house ownership per month within 18 months. Income restoration measures for the APs include cash compensation, skills training and priority employment for the Subproject. Since permanent land acquisition is caused by river dredging, slope protection and wastewater collection mainly, the subproject area is linear in shape. Based on statistical analysis, the land acquired for the Subproject, though significant in amount, is scattered, and land acquisition affects the routine agricultural production and incomes of rural households much less because they have other non-farm income sources. 5. Vulnerable groups and women According to the survey, all the APs are Han people. The APs include 5 vulnerable households, which are households receiving minimum living security (MLS) support, five-guarantee households and households affected by disability. Not only the vulnerable APs will be resettled according to the implementation plan, but also certain assistance will be provided to improve their production and living conditions. The Subproject will affect 270 women. During subproject implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 800 APs will be trained, in which not less than 400 (50%) will be provided to female labor. A compensation agreement must be signed by the couple. During resettlement implementation, a focus group discussion (FGD) for women will be held to introduce the resettlement policies. 6. Public participation and information disclosure All APs (30% being women) have been informed of key points of this RP by various means, including meeting, interview, FGD, public participation and community consultation. The above activities are designed to involve the APs in the Subproject, and their opinions have been fully embodied in this RP. The first draft RP was published on ADB’s website in May 2013, and the Resettlement Information Booklet (RIB) and the updated RP will be distributed to the APs or groups by end of December 2014. A grievance redress system has been established. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. 7. Grievances and appeals An appeal procedure has been established to settle disputes over compensation and resettlement. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Subproject may be from collective land acquisition and land occupation. Correspondingly, the Feidong PMO, Hefei Cuocheng Construction & Investment Co., Ltd. (HCCI), Feidong County Development and

Reform Commission, and the affected township government and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. 8. Agencies In March 2012, the PMO was transferred from Anhui Provincial Government and PDRC to the Chao Lake Management Authority (CLMA).The CLMA will be the executive body of the whole project; The Feidong PMO is the executing agency of the Subproject, HCCI is the implementing agency of the Subproject, and HCCI and the affected township government will be responsible for the implementation of this RP. 9. M&E and reporting In order to ensure the successful implementation of this RP, resettlement implementation will be subject to internal and external monitoring. The internal monitoring agencies are the CLMA, Feidong PMO, HCCI and other departments concerned (e.g., the land and resources bureau), and an internal monitoring report will be submitted to ADB semiannually. The CLMA has appointed NRCR to conduct external monitoring and evaluation (M&E) semiannually, and M&E costs will be included in the resettlement budget. 10. Resettlement budget All costs incurred during land acquisition and resettlement will be included in the general budget of the Subproject. Based on prices in the second half of 2014, the total resettlement costs of the Subproject are 11.0828 million yuan, including rural land acquisition costs of 4.2777 million yuan or 38.60% of total costs, compensation fees for temporary land occupation of 111,320 yuan or 1.00% of total costs, compensation fees for house demolition of 105,040 yuan or 0.95% of total costs, compensation fees for infrastructure and ground attachments of 599,320 yuan or 5.41% of total costs, land taxes of 4,292,060 yuan or 38.73% of total costs, and survey and design costs, M&E costs, training costs, implementation management costs, vulnerable group support costs and contingencies of 1.6974 million yuan or 15.32% of total costs.

Glossary

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

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

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

Income Reestablishing income sources and livelihoods of people affected restoration

Rebuilding housing, assets, including productive land, and public Resettlement infrastructure in another location

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

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

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

Contents

1. Overview of the Subproject ...... 1 1.1 Background and Description of the Subproject ...... 1 1.1.1 Background of the Subproject ...... 1 1.1.2 Components of the Subproject and Identification of Resettlement Impacts ...... 1 1.1.3 Summary of Resettlement Impacts of the Subproject ...... 3 1.2 Socioeconomic Benefits ...... 3 1.3 Estimated Resettlement Investment and Implementation Plan ...... 3 2. Impacts of the Subproject ...... 4 2.1 Measures to Minimize Land Acquisition and House Demolition ...... 4 2.1.1 Principles for Project Design and Site Selection ...... 4 2.1.2 Comparison and Selection of Options ...... 4 2.2 Scope of Impact Survey of Land Acquisition and House Demolition ...... 4 2.3 Survey Methods and Process ...... 5 2.4 Permanent Acquisition of Collective Land and Impact Analysis ...... 6 2.4.1 Collective Land Acquired Permanently for the Subproject ...... 6 2.4.2 Impact Analysis of Permanent Acquisition of Collective Land ...... 6 2.5 Temporary Land Occupation ...... 10 2.6 Demolition of Residential Houses and Impact Analysis ...... 11 2.7 Infrastructure and Ground Attachments Affected by the Subproject ...... 11 2.8 Affected Population ...... 12 2.8.1 Summary ...... 12 2.8.2 Affected Vulnerable Groups ...... 12 3. Socioeconomic Profile ...... 14 3.1 Socioeconomic Profile of the Subproject Area ...... 14 3.1.1 Socioeconomic Profile of Feidong County ...... 14 3.1.2 Socioeconomic Profile of Affected Town ...... 14 3.1.3 Socioeconomic Profile of Affected Villages (Communities) ...... 15 3.2 Socioeconomic Profile of the Affected Population ...... 16 3.3 Summary ...... 19 4. Legal Framework and Policies ...... 21 4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 20 4.2 Abstract of ADB Policies ...... 21 4.3 Provisions of Laws, Regulations and Policies of the PRC ...... 23 4.4 Main Differences between ADB Policies and PRC Laws ...... 26 4.5 Compensation Principles of the Subproject ...... 27 4.6 Cut-off Date of Compensation ...... 27 4.7 Fixation of Compensation Rates for Resettlement Impacts of the Subproject ...... 28 4.7.1 Acquisition of Collective Land...... 28 4.7.2 Compensation for Temporary Land Occupation ...... 29 4.7.3 Compensation Rates for House Demolition ...... 29 4.7.4 Compensation for Attachments and Infrastructure ...... 30 4.7.5 Rates of Other Costs ...... 30

VI

4.7.6 Vulnerable Groups ...... 30 4.7.7 Supporting Measures for Women ...... 31 4.8 Entitlement Matrix ...... 31 5. Resettlement and Income Restoration ...... 36 5.1 Resettlement Objectives ...... 36 5.2 Principles for Resettlement Restoration ...... 36 5.3 Resettlement Restoration Programs ...... 37 5.3.1 Summary of Resettlement Restoration Programs for Affected Villages ...... 37 5.3.2 Restoration Programs for Slightly Affected Groups ...... 37 5.3.3 Restoration Programs for Seriously Affected Groups ...... 38 5.3.4 Other Safeguard Measures ...... 39 5.3.5 Employment Promotion Program ...... 40 5.3.6 Resettlement Program for Demolished Residential Houses ...... 40 5.4 Training of APs ...... 41 5.5 Protection of Women’s Rights and Interests ...... 42 5.6 Assistance Measures for Vulnerable Groups ...... 43 5.7 Restoration Program for Temporarily Occupied Land ...... 43 5.8 Restoration Program for Infrastructure ...... 43 6. Resettlement Organizational Structure ...... 45 6.1 Resettlement Implementation and Management Agencies ...... 45 6.1.1 Organizational Setup ...... 45 6.1.2 Organizational Responsibilities ...... 46 6.2 Staffing and Equipment ...... 48 6.2.1 Staffing ...... 48 6.2.2 Equipment ...... 49 6.2.3 Institutional Training Program...... 49 7. Public Participation and Grievance Redress ...... 50 7.1 Public Participation ...... 51 7.1.1 Participation at the Preparation Stage ...... 51 7.1.2 Participation Plan at the Implementation Stage ...... 52 7.2 Grievances and Appeals ...... 53 8. Resettlement Budget...... 53 8.1 Resettlement Budget ...... 55 8.2 Resettlement Investment Schedule and Funding Sources ...... 56 8.3 Disbursement and Management of Resettlement Funds ...... 56 8.3.1 Disbursement of Resettlement Funds ...... 56 8.3.2 Management of Resettlement Funds ...... 56 9. Resettlement Implementation Plan ...... 56 9.1 Principles for Resettlement Implementation ...... 58 9.2 Resettlement Implementation Schedule ...... 58 10. Monitoring and Evaluation ...... 59 10.1 Internal Monitoring ...... 62 10.2 External Monitoring ...... 63 10.2.1 Scope and Methodology of External Monitoring ...... 63

VII

10.2.2 External Monitoring Reporting ...... 64 10.3 Resettlement Post-evaluation ...... 65 Appendix 1: Schematic Map of the Subproject ...... 66 Appendix 2: Summary of Intercepting Sewers ...... 67 Appendix 3: Minutes of Public Participation Meetings ...... 68 Appendix 4: Gender Analysis Form ...... 70 Appendix 5: Distribution and Structure of Survey Samples ...... 72 Appendix 6: Provisions of Land Laws, Regulations and Policies of the PRC and Anhui . 73 Appendix 7: Policy on the Endowment Insurance for Land-expropriated Farmers ...... 79 Appendix 8: Detailed Resettlement Budget ...... 79 Appendix 9: Resettlement Information Booklet ...... 81

List of Tables

Table 1-1 Components of the Subproject and Identification of Resettlement Impacts ...... 2 Table 2-1 Options for Comparison ...... 4 Table 2-2 Administrative Divisions Affected by Resettlement ...... 4 Table 2-3 Summary of Collective Land Acquired Permanently for the Subproject ...... 6 Table 2-4 Impact Analysis of Collective Land Acquisition by Group ...... 8 Table 2-5 Land Loss Rate of AHs ...... 8 Table 2-6 Loss Rate of Cultivated Land of AHs ...... 9 Table 2-7 Expected Resettlement Modes of Households Affected by Land Acquisition .. 10 Table 2-8 Temporarily Occupied Land ...... 10 Table 2-9 Residential Houses to Be Demolished ...... 11 Table 2-10 Ground Attachments Affected by the Subproject ...... 11 Table 2-11 Summary of the Affected Population ...... 12 Table 2-12 Summary of Affected Vulnerable Groups ...... 12 Table 3-1 GDP of Feidong County in 2013 (Unit: 00 million yuan) ...... 14 Table 3-2 Per Capita Net Income of Farmers of Affected Townships (2013) ...... 15 Table 3-3 Socioeconomic Profile of Affected Villages (Communities) (2013) ...... 15 Table 3-4 Socioeconomic Profile of Affected Villages and Groups ...... 16 Table 3-5 Composition of Survey Samples ...... Error! Bookmark not defined. Table 3-6 Income of Sample Households ...... 18 Table 4-1 Abstract of Measures for the Acquisition of Collectively Owned Land of Hefei Municipality and Feidong County ...... 23 Table 4-2 Principles for Resettlement ...... 27 Table 4-3 Compensation Multiples and Rates for Acquired Collective Land ...... 28 Table 4-4 Compensation Rates for Temporarily Occupied Land ...... 29 Table 4-5 Compensation Rates for Demolished Rural Residential Houses and Attachments ...... 29 Table 4-6 Compensation Rates for Demolished Business Premises and Attachments ...... Error! Bookmark not defined. Table 4-7 Compensation Rates for Attachments and Infrastructure ...... 30

VIII

Table 4-8 Summary of Rates of Taxes and Fees Paid for Land Acquisition ...... 30 Table 4-9 Entitlement Matrix ...... 32 Table 5-1 Use and Allocation of Compensation Fees for Land Acquisition ...... 38 Table 5-2 Basic Information of Seriously Affected Village Groups ...... 38 Table 5-3 Crop Restructuring and Income Variation of Affected Village Groups ...... 39 Table 5-4 Agricultural Technical Training Program in the Subproject Area ...... 41 Table 5-5 Employment Training Program in the Subproject Area ...... 42 Table 6-1 List of Members of Resettlement Agencies ...... 48 Table 6-2 Resettlement Operational Training Program ...... 49 Table 7-1 Disclosure of Resettlement Information and Key Consultation Activities ...... 51 Table 7-2 Public Participation Plan ...... 52 Table 7-3 Responsible Person's Name and Its Telephone Number ...... 52 Table 8-1 Resettlement Budget Sheet ...... 55 Table 9-1 Schedule of Resettlement Activities ...... 59 Table 10-1 Resettlement M&E Agenda ...... 65

IX

1. Overview of the Subproject

1.1 Background and Description of the Subproject

1.1.1 Background of the Subproject

For a long time, Chao Lake has played a crucial role in flood regulation, urban and rural water supply, ecological balancing and regional development. However, with the rapid economic and social development of the basin, the environmental stress on Chao Lake is increasing year by year, and the conflicts between the rapid growth of pollutant discharge and the backward urban infrastructure and between integrated pollution control and the existing management structure are sharpening. Therefore, water environment integrated improvement must be implemented to inhibit the trend of water quality deterioration, improve the quality of the basin’s water environment, and restore the natural landscape of the Chao Lake basin gradually. The Asian Development Bank (ADB) plans to provide a loan of US$250 million to the PRC for the Anhui Chao Lake Environmental Rehabilitation Project, and the Feidong County Subproject is one of its 14 subprojects.

1.1.2 Components of the Subproject and Identification of Resettlement Impacts

The Subproject has two components – (i) river dredging and slope protection along two rivers, and (ii) wastewater collection. The Subproject is located in Feidong County, Hefei Municipality, Anhui Province. Based on identification, the resettlement impacts of the Subproject are land acquisition, house demolition and temporary land occupation. See Table 1-1 and Appendix 3.

1

Table 1-1 Components of the Subproject and Identification of Resettlement Impacts No. River Component Length (m) Location (or direction) Key resettlement impact River Dredging a river course of 1,280m, with Dianzhong Highway to Dianbu Acquiring 35.788 mu of land, affecting 66 dredging 10,580m³ of silt dredged in total River households with 249 persons in two village Zhennan 1 Slope protection length 1,280m, bottom Dianzhong Highway to Dianbu groups; demolishing houses of 160 m2, River Slope design width 6-15m, bottom level 8.5-8, River affecting two households with 8 persons protection longitudinal gradient I=0.0004 River Dredging a river course of 4,745m, with Near the Xuguang Village Acquiring 80.97 mu of land, affecting 85 dredging 225,207m³ of silt dredged in total Committee households with 319 persons in 11 village Shibajian 2 Slope protection length 4,745m, bottom Near the Xuguang Village groups, and occupying 55.66 mu of land River Slope design width 50m, bottom level 10-13.5, Committee temporarily, affecting 3 village groups protection longitudinal gradient I=0.0007 25km Area along Hefei-Ma’anshan The pipe jacking method is used except the Wastewater Highway west of the Dianbu grooving method for a small part, involving 3 collection River, and near-term planning the temporary occupation of state-owned area east of the Dianbu River land

2

1.1.3 Summary of Resettlement Impacts of the Subproject

The main resettlement impacts of the Subproject are permanent and temporary land occupation, and the demolition of rural residential houses, involving one village and one community in Cuozhen Town, Feidong County. 116.758 mu of land will be acquired for the Subproject, all being rural collective land, including 116.518 mu of cultivated land (99.79%) and 0.24 mu of housing land (0.21%), affecting 150 households with564 persons. Residential houses of 160 m2 will be demolished, affecting two households with 8 persons, of which one household with 4 persons will also be affected by land acquisition. House demolition will affect two entities with a total demolished building area of 340.4 m2, but will not affect their operations. 7 types of infrastructure and ground attachments and 151 households with 568 persons will be affected by the Subproject.

1.2 Socioeconomic Benefits

The Subproject will improve the water quality of the Dianbu River and Chao Lake, ensure regular industrial and agricultural production, avoid wastewater pollution to Chao Lake and resulting economic losses, alleviate groundwater pollution, improve the urban living environment and ecological environment greatly, and make the urban infrastructure more sophisticated. These will attract more investors, increase the appreciation potential of land and generate more income. In addition, the Subproject will promote the rapid development of industry, and the real estate, catering, hotel and tourism industries in surrounding areas, and labor employment, increase tax revenue, and drive local economic and cultural development effectively. Moreover, the Subproject will build a better image for Feidong County and Cuozhen Town, which will in turn improve people’s quality of life, and promote social stability and unity greatly.

1.3 Estimated Resettlement Investment and Implementation Plan

The gross investment in the Subproject is 113,033,900 yuan, in which construction investment is 112,018,900 yuan. Construction funds will be raised by ADB and the subproject owner, in which the ADB loan will be US$11 million (equivalent to CNY69.3 million, at an exchange rate of 6.30) and 43,733,900 yuan will be raised by the owner. The estimated resettlement costs of the Subproject are 11.0828 million yuan (based on prices in the second half of 2014), including basic land acquisition (occupation) costs, taxes and contingencies, accounting for 9.80% of the Subproject’s budget, all from domestic counterpart funds. The construction period of the Subproject is from the end of 2014 to 2015.

3

2. Impacts of the Subproject

2.1 Measures to Minimize Land Acquisition and House Demolition

2.1.1 Principles for Project Design and Site Selection

Resettlement impacts have been minimized at the design stage on the following principles:  Avoiding or minimizing occupation of existing and planned residential areas;  Avoiding or minimizing occupation of high-quality farmland;  Gaining access to the proposed construction sites through existing state and local roads;  Avoiding or minimizing occupation of environmentally sensitive areas;  Selecting a resettlement community in line with the local development plan

2.1.2 Comparison and Selection of Options

At the design stage, through the field survey of the subproject area and the optimization of the project design, negative impacts of the Subproject have been minimized without affecting the design outputs, as shown in Table 2-1. In addition, at the detailed design stage, the project design will be further optimized to avoid or minimize land acquisition and house demolition impacts. Table 2-1 Options for Comparison Comp Option 1 Option 2 Conclusion onent A 1,280m river course of the A 2,398m river course of the Compared to Option 2, Zhennan River (Dianzhong Zhennan River (Dianzhong the dredging and slope Highway to Dianbu River) will be Highway to Dianbu River) will be protection length of the dredged, which is an existing dredged, which is an existing Zhennan River is storm collection and flood storm collection and flood reduced from 2,398m to discharge system running through discharge system running through 1,280m, the amount of River the urban area of Cuozhen Town, the urban area of Cuozhen Town, dredging reduced by dredgi with a ditch width of 5-15m, an with a ditch width of 8-26m, an 11,817m³, the land area ng and average detected silt depth of average detected silt depth of occupied by the slope 0.4-2.2m and a dredging amount 0.4-2.2m and a dredging amount temporarily silt dump protect 3 3 of 10,580m . The dikes will of 22,397m . The dikes will reduced, the amount of ion extend to a certain ecological extend to a certain ecological land acquisition reduced protection range of 35.788 mu, protection range of 54.75 mu, by 14.792 mu and the involving a demolition area of 160 involving a demolition area of amount of house m2. 80.97 mu of land will be 24,360 m2. 76.8 mu of land will be demolition reduced by acquired for the slope protection acquired for the slope protection 24,200 m2. of the Shibajian River. of the Shibajian River.

2.2 Scope of Impact Survey of Land Acquisition and House Demolition

According to the recommended option (Option 1), the Subproject will affect 151 households with 568 persons in 13 village groups of one village and one community in Feidong County. See Table 2-2. Table 2-2 Administrative Divisions Affected by Resettlement Village / Affected Component Village group Affected population community households

4

Village / Affected Component Village group Affected population community households Xiaojia 11 44 Luxi 10 35 Ludong 2 7 Qiansheng 13 40 Daliu 4 15 Xuguang Village Xiaoliu 13 50 Slope Xiao’ou 6 25 protection Tangqin 6 26 Dingdong 6 24 Dingxi 11 42 Xiaohe 3 11 Xianfeng Xuannan 28 107 Community Xuandong 38 142 Total 151 568

2.3 Survey Methods and Process

In July 2011, the Feidong PMO appointed Hefei Engineering Consulting Service Co., Ltd. (HECS) to prepare the Proposal for the Subproject, which has been approved by the Anhui Provincial Development and Reform Commission. In August 2011, engineering technicians from HECS conducted a detailed measurement survey (DMS) of the subproject area as required by ADB with the assistance of the affected villages and villagers. In September and October 2011, the survey team of the National Research Center for Resettlement at Hohai University (NRCR) conducted an impact survey on all households and entities affected by land acquisition (84 households) and house demolition (3 households and two entities) according to the Feasibility Study Report, and a sampling socioeconomic survey, covering household population, impacts of land acquisition and house demolition, household economic status, and expected resettlement modes. During the survey, the survey team also listened to opinions of the village committees and villagers on land acquisition, house demolition and resettlement, and conducted extensive consultation. In November and December 2011, the RP for the Subproject was completed on the basis of the feasibility study and survey data. This RP analyzes and evaluates the resettlement impacts and risks of the Subproject, and proposes preliminary remedies. This RP will be finalized on the basis of the detailed design in October 2012, and the final RP will serve as the basis of resettlement implementation. From March to October 2014, the Feidong PMO conducted a DMS based on the construction drawings. During the survey, the survey staff also listened extensively to expectations of the village committees and villagers on land acquisition and resettlement, and conducted extensive consultation. The key findings are as follows:  Almost all villagers know that the Subproject is about to break ground, and support it;  The Subproject involves the permanent acquisition of collective land and temporary land occupation;  The Subproject involves house demolition, specifically the demolition of the houses of two households. In addition, the Subproject also affects other infrastructure and ground attachments in small quantities.

5

 Almost all APs think that they are affected slightly by land acquisition, and they can continue to farm on the remaining land after acquisition; they prefer cash compensation;  Compensation fees should be paid timely and transparently with minimum intermediate steps.

2.4 Permanent Acquisition of Collective Land and Impact Analysis

2.4.1 Collective Land Acquired Permanently for the Subproject

116.758 mu of collective land will be acquired for the Subproject, including 116.518 mu of cultivated land (99.79%) and 0.24 mu of housing land (0.21%), affecting 151 households with 568 persons directly. See Table 2-3. Table 2-3 Summary of Collective Land Acquired Permanently for the Subproject Permanent acquisition of collective land (mu) Cultivated land Project Township Village Group Housing Irrigated Subtotal Households Population Subtotal land land Xiaojia 4.59 4.59 0 4.59 11 44 Luxi 8.84 8.84 0 8.84 10 35 Ludong 1.00 1.00 0 1.00 2 7 Qianshen 10.09 10.09 0 10.09 13 40 g Xuguang Daliu 2.28 2.28 0 2.28 4 15 Village Xiaoliu 10.55 10.55 0 10.55 13 50 The Cuozhen Xiao’ou 7.42 7.42 0 7.42 6 25 Subproject Town Tangqin 8.52 8.52 0 8.52 6 26 Dingdong 7.08 7.08 0 7.08 6 24 Dingxi 18.28 18.28 0 18.28 11 42 Xiaohe 2.32 2.32 0 2.32 3 11 Xuannan 12.563 12.563 0.24 12.803 28 107 Xianfeng Xuandon Community 22.985 22.985 0 22.985 38 142 g Total 116.518 116.518 0.24 116.758 151 568

2.4.2 Impact Analysis of Permanent Acquisition of Collective Land

The land acquired for the Subproject is used for slope protection mainly, and is linear in shape. However, since the river course varies greatly in width, land loss rate varies greatly from group to group. According to the survey, Xianfeng Community has 1,920 mu of cultivated land and Xuguang Village has 4,400 mu of cultivated land before acquisition. The two affected village groups of Xianfeng Community have 73.5 mu of cultivated land before acquisition, in which 35.548 mu will be acquired, with a land loss rate of 48.36%, and the 11 affected village groups of Xuguang Village have 2,377 mu of cultivated land before acquisition, in which 80.97 mu will be acquired, with a land loss rate of 3.46%. The affected villages are located in the center of Feidong County, with two harvests a year, where rape is grown in fall and winter, and paddy rice in spring and summer. The annual net income per mu is about 850 yuan. Cuozhen Town was identified as one of the 1,000 key towns of China by the central government in 2006. For the affected households (AHs),

6

agricultural income accounts for a low proportion in gross income, and over 90% of their income is from employment. In the subproject area, cultivated land is divided into small fields of 0.6-2 mu, which is adverse to mechanized farming. In the affected village groups, the land loss rate arising from the Subproject ranges from 0.86% to 39.63%, and the per capita loss arising from the Subproject ranges from 39 yuan to 370 yuan. Since the affected villages are located in the outskirts of Cuozhen Town where nonagricultural income is the main income source, the income loss rate arising from the Subproject is as low as 0.48%-4.89%. See Table 2-4. According to the survey, the 151 households with 568 persons affected by the acquisition of collective land have an average land loss rate of 19.96%, which is significant. However, since most households no longer rely solely on farming, land acquisition has less impact on the APs’ income. See Table 2-5 and Table 2-6.

7

Table 2-4 Impact Analysis of Collective Land Acquisition by Group Current Situation Impacts of acquisition Land loss rate Income loss (yuan) Percentage Percentage Land Percentage Average Average Component Township Village Group House Cultivated House Cultivated of of loss Annual of per Population Population loss per loss per -holds land (mu) -holds land (mu) households population rate loss capita household capita (%) (%) (%) income 23.28 Xuannan 56 186 55 28 107 12.803 50.00% 57.52% 10883 389 102 1.25% Zhennan Xianfeng % River Community Xuandon 39.63 62 192 58 38 142 22.985 61.29% 73.96% 19537 514 138 1.62% g % Xiaojia 42 147 175 11 44 4.59 26.19% 29.93% 2.62% 3902 355 89 1.07% Luxi 58 171 198 10 35 8.84 17.24% 20.48% 4.46% 7514 751 215 2.77% Ludong 59 159 207 2 7 1 3.4% 4.4% 0.48% 850 425 121 1.41% Qianshen 60 182 180 21.67% 21.98% 5.61% 8577 660 214 2.69% Cuozhen g 13 40 10.09 Town Daliu 66 189 229 4 15 2.28 6.06% 7.94% 1.00% 1938 485 129 1.58% Shibajian Xuguang River Village Xiaoliu 56 151 202 13 50 10.55 23.21% 33.11% 5.22% 8968 690 39 0.48% Xiao’ou 79 294 279 6 25 7.42 7.59% 8.50% 2.66% 6307 1051 252 3.33% Tangqin 26 92 110 6 26 8.52 23.08% 28.26% 7.74% 7242 1207 279 3.51% Dingdong 56 171 280 6 24 7.08 10.71% 14.04% 2.53% 6018 1003 251 3.05% Dingxi 48 162 207 11 42 18.28 22.92% 25.93% 8.83% 15538 1413 370 4.89% Xiaohe 77 280 270 3 11 2.32 3.89% 3.93% 0.86% 1972 653 179 2.20% Table 2-5 Land Loss Rate of AHs Land loss rate Total Project Township Village Group 10% or less 11-29% 30-49% 50-69% 70-89% 90-100% House House House House House House House Population Population Population Population Population Population Population -holds -holds -holds -holds -holds -holds -holds Xuannan 6 20 17 65 1 5 4 17 0 0 0 0 28 107 Xianfeng Community Xuandon g 12 44 16 58 6 24 4 16 0 0 0 0 38 142 The Cuozhen Subproject Town Xiaojia 4 10 3 13 3 14 1 3 0 0 0 0 11 44 Xuguang Luxi Village 3 10 3 11 4 14 0 0 0 0 0 0 10 35 Ludong 0 0 1 4 1 3 0 0 0 0 0 0 2 7

8

Land loss rate Total Project Township Village Group 10% or less 11-29% 30-49% 50-69% 70-89% 90-100% House House House House House House House Population Population Population Population Population Population Population -holds -holds -holds -holds -holds -holds -holds Qianshen g 5 15 4 12 3 9 1 4 0 0 0 0 13 40 Daliu 0 0 4 15 0 0 0 0 0 0 0 0 4 15 Xiaoliu 6 23 3 12 4 15 0 0 0 0 0 0 13 50 Xiao’ou 0 0 3 13 0 0 2 8 1 4 0 0 6 25 Tangqin 2 10 4 16 0 0 0 0 0 0 0 0 6 26 Dingdong 0 0 2 6 2 12 2 6 0 0 0 0 6 24 Dingxi 3 11 4 15 3 12 0 0 1 4 0 0 11 42 Xiaohe 0 0 3 11 0 0 0 0 0 0 0 0 3 11 Total 41 147 67 251 27 108 14 54 2 8 0 0 151 568 Table 2-6 Loss rates of cultivated land of AHs Loss rate # of households Existing <10% 11-29% 30-49% 50-69% 70-89% 90-100% Subtotal cultivated area <1 mu 10 2 2 1 0 0 15 1-3 mu 18 26 7 3 0 0 54 3-5 mu 11 11 6 5 1 0 34 >5 mu 2 28 12 5 1 0 48 Total 41 51 27 14 2 0 151

9

According to the survey on 51 sample households, the households affected by land acquisition prefer the following resettlement modes: a) using compensation fees for land acquisition to improve the quality of farmland, chosen by 16 households, accounting for 31.37% of all sample households; b) turning the crop structure focused on less profitable food crops (paddy rice, rape, etc.) to one focused on more profitable vegetables, chosen by 29 households, accounting for 56.86%; c) investing compensation fees for land acquisition in catering services, merchandising and other tertiary operations to increase income, chosen by 6 households, accounting for 11.76%; d) attending skills training courses given by the labor and social security department, and looking for job opportunities outside, chosen by 40 households, accounting for 78.43%. See Table 2-7. Table 2-7 Expected Resettlement Modes of Households Affected by Land Acquisition① Restoration options Land loss # of Cash Skills rate households compensation Farmland Crop Tertiary training, improvement restructuring operations outside employment <10% 18 18 5 9 0 15 11- 29% 17 17 6 12 2 13 30 -49% 13 13 4 7 3 9 50-69% 2 2 1 1 1 2 70-89% 1 1 0 0 0 1 90-100% 0 0 0 0 0 0 Total 51 51 16 29 6 40 Percentage / 100% 31.37% 56.86% 11.76% 78.43%

2.5 Temporary Land Occupation

The Subproject will occupy 55.66 mu of land temporarily, all of which will be low-lying wasteland occupied for the silt dump in the river dredging and slope protection component, and owned by village collectives. There will be no impact on households. See Table 2-8. Table 2-8 Temporarily Occupied Land② Temporarily occupied land (mu) Temporarily affected Count Townshi population Village Group Subtota y p Wasteland Other land l Household Populatio s n Xiaojia 10.46 0 10.46 0 0

Feidon Cuozhen Xuguang Qingyangtan g Town 35.20 0 35.20 0 0 Village g Dingxi 10.00 0 10.00 0 0 Total 55.66 0 55.66 0 0 100.00 Percentage (%) 100.00% 0.00% 0 0 %

① In the subproject area, most villagers are engaged in other operations to increase household income while farming. For example, in most households, elder members farm at home, and their children, including sons and daughters-in-law, are working outside or engaged in nonagricultural operations, so the expected modes in this table may overlap. ②In Xianfeng Community, the sludge yard in the dredging and embankment works will occupy 6.5 mu of land, affecting 29 households with 118 persons. This land will be acquired permanently and built into a landscaping work after the completion of construction.

10

2.6 Demolition of Residential Houses and Impact Analysis

Residential houses with a total building area of 160 m2 will be demolished for the Subproject, affecting two households with 8 persons. See Table 2-9. Table 2-9 Residential Houses to Be Demolished Population also Demolition area (m2) Affected population affected by land Head of County Township Village acquisition household Masonry Masonry Frame Subtotal Households Population Households Population concrete timber

Cuozhen Xianfeng LRZ 0 80 0 80 1 4 1 4 Feidong Town Community XMZ 0 80 0 80 1 4 0 0 Total 0 160 0 160 2 8 1 4 0.00 100.00 100.00 Percentage 0.00% / / / / % % %

The living environment of the persons to be displaced is relatively poor, mainly because they live too close to the Zhennan River, whose water quality has been deteriorating sharply in recent years.

2.7 Infrastructure and Ground Attachments Affected by the Subproject

The Subproject will affect 7 types of infrastructure and ground attachments in total, such as water delivery pipelines, telegraph poles and tombs, as shown in Table 2-10. Table 2-10 Ground Attachments Affected by the Subproject No. Village Type Proprietor Unit Qty. Remarks Power supply 1 Telegraph poles / 14 bureau 2 Telephone poles Telecom office / 2 Xuguang Power supply 3 400V lines m 950 Village bureau 4 Scattered trees Village group / 204 Scattered fruit 5 Individuals / 56 Miscellaneous trees trees are Power supply scattered along 6 Telegraph poles / 14 bureau rivers, and have 7 Telephone poles Telecom office / 11 mostly grown naturally. Power supply 8 400V lines m 600 Xianfeng bureau Community Power supply 9 10kV lines m 350 bureau Miscellaneous 10 Village group / 710 trees 11 Enclosing walls Individuals m2 53

11

2.8 Affected Population

2.8.1 Summary

The Subproject will affect 151 rural households with 568 persons in total, in which 150 households with 564 persons will be affected by collective land acquisition only, one household with 4 persons will be affected by house demolition only, and one household with 4 persons will be affected by both land acquisition and house demolition①. Table 2-11 Summary of the Affected Population Cuozhen Town Subtotal No. Type Xianfeng Community Xuguang Village Households Population Households Population Households Population Permanent 1 66 249 85 319 151 568 impacts Affected 1.1 villagers / 66 249 85 319 151 568 residents -Land acquisition 64 241 85 319 150 564 only -House demolition 1 4 0 0 1 4 only -Both land acquisition 1 4 0 0 1 4 and house demolition Temporary 2 0 0 0 0 0 0 impacts Total 3 66 249 85 319 151 568 population

2.8.2 Affected Vulnerable Groups

For the purpose of the Subproject, vulnerable groups include the disabled, five-guarantee households②, single female-headed households, low-income people③ and ethnic minorities. According to the survey, all APs are Han people. The affected population of the Subproject includes 5 vulnerable households, including 3 households receiving MLS support, one five-guarantee household and one household affected by disability, with 13 persons in total. 5 households with 13 persons will be affected by land acquisition. Table 2-12 Summary of Affected Vulnerable Groups Vulnerab Address Gender Head of Vulnerab le Household Household Type of No. househo Village / Village le group populati Town population labor Men Women impact ld community group on 1 WK MLS 2 Cuozhe Xianfeng Xuannan 3 1 2 1 Land

① Since the land temporarily occupied by the Subproject is used as a silt dump mainly and is all low-lying wasteland, no person will be affected by temporary land occupation. ② For elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor, a rural production cooperative would provide production and living assistance, including daily supplies, education for the young and burial for the elderly. ③ Per capita net income <2,300 yuan/year.

12

Vulnerab Address Gender Head of Vulnerab le Household Household Type of No. househo Village / Village le group populati Town population labor Men Women impact ld community group on n acquisition Cuozhe Land 2 XJY MLS 3 Xianfeng Xuandong 3 1 1 2 n acquisition five- Cuozhe Land 3 XZF guarante 1 Xianfeng Xuandong 1 0 1 0 n acquisition e Cuozhe Land 4 SZC Disability 1 Xuguang Xiaocai 4 2 2 2 n acquisition Cuozhe Land 5 DSJ MLS 2 Xuguang Dingxi 2 1 1 1 n acquisition

13

3. Socioeconomic Profile

3.1 Socioeconomic Profile of the Subproject Area

3.1.1 Socioeconomic Profile of Feidong County

The Subproject will affect Xianfeng Community and Xuguang Village, Cuozhen Town, Feidong County. Refer to Appendix 1. Feidong County—It is located in central Anhui, bordering Chao Lake on the south, Juchao District of Chaohu City, and Nanqiao District and Quanjiao County of Chuzhou City on the east, Yaohai District, Baohe District, Changfeng County and Feixi County of Hefei Municipality on the west, and Dingyuan County on the north, with a land area of 2,206 km2 and a population of 1.077 million. The county governs 18 townships, one province-level development zone, one municipal level circular economy demonstration park, one province-level trade and logistics development zone, and 331 village/community committees. Since 2002, it has been one of the province’s top 10 counties in terms of overall economic strength for 7 consecutive years. See Table 3-1 for the GDP of Feidong County in 2013.

Table 3-1 GDP of Feidong County in 2013⑥ (Unit: 00 million yuan) Indicator 2013 Year-on-year growth, % GDP 405.63 13.58 Primary industries 58.75 8.65 Secondary industries 261.98 14.07 Tertiary industries 84.90 15.66

3.1.2 Socioeconomic Profile of Affected Town

Cuozhen Town—It is located at the south gate of the seat of Feidong County, Hefei Municipality, and is the political, economic, cultural, trading and traffic center in southern Feidong County, and a key satellite town of Hefei Municipality, enjoying an advantaged geographic location. The town has a land area of 116.7 km2 and a population of about 95,000, and governs 10 villages, 11 community committees and 3 industrial zones. In 2006, the town was identified as one of the 1,000 key towns of China by the central government. See Table 3-2.

⑥ Source: Statistical Yearbook 2013 of Feidong County

14

Table 3-2 Per Capita Net Income of Farmers of Affected Townships (2013)⑦ Per Per capita Average # of Cultivate capita net County/ Where, population househo Population d area cultivated income township women per lds (mu) area of household (mu) farmers (yuan) Feidong 34456 17782 1070900 505450 3.11 1.66 11233 County 0 50 Cuozhen 10701 40096 92088 44044 2.30 1.16 12057 Town 8

3.1.3 Socioeconomic Profile of Affected Villages (Communities) Xuguang Village—It is located in the east suburb of Hefei and the southernmost tip of Cuozhen Town, bordering Changlinhe Town on the south and Qiaotouji Town on the west, run through by Dianzhong Highway and Taichang Highway, convenient in traffic. The village has a cultivated area of 4,400 mu and a population of 3,800, and governs 22 village groups. This village is an administrative village focusing on agriculture, where characteristic agriculture is key to poverty reduction. In recent years, vegetable cultivation, stockbreeding and eco-tourism have been developed energetically in this village. In 1998, this village became a national demonstration base of agricultural development, and was named as a second-line vegetable base of Hefei by the Hefei Municipal Government. Xianfeng Community—This community is located in central Cuozhen Town, bordering Zhenxing Village on the east, Xianlin Village on the south, the Dianbu River on the west, Cuoxi Community and the living zone of the Hefei Circular Economy Demonstration Park on the north, being the seat of the Cuozhen Town Government. This community is run through by the Huainan Railway, Hefei-Ma’anshan Highway and Dianzhong Highway, and the Dianbu River that leads to Chao Lake, and enjoys convenient traffic. The main crops of this community are paddy rice, rape and lotus root, and its main income sources are outside employment and commerce. See Table 3-3. Table 3-3 Socioeconomic Profile of Affected Villages (Communities) (2013)⑧ # of # of Average Per capita Per capita net Per capita net Village / Populatio Where, Cultivated village househol population per cultivated income of income of urban community n women area (mu) groups ds household area (mu) farmers (yuan) residents (yuan) Xianfeng 17 783 3515 1823 1920 4.50 0.55 5720 10260 Community Xuguang 22 955 3901 1858 4400 4.09 1.13 10280 / Village

⑦ Source: Statistical Yearbook 2013 of Feidong County ⑧ Source: Statistical Yearbook 2013 of Feidong County

15

The Subproject will affect 13 village groups, whose socioeconomic profile is shown in Table 3-4. Among the 12 affected village groups, the average population per household is 2.69-3.72 persons, and the average per capita cultivated area is 0.3-1.64 mu. Average per capita income varies greatly, ranging from 6890 Yuan to 8210 Yuan. Table 3-4 Socioeconomic Profile of Affected Villages and Groups

Average Per capita Village / # of Cultivate Per capita Village Populatio Where, Labor population net income communi househol d area cultivated group n men force per of farmers ty ds (mu) area (mu) household (yuan)

Xianfen Xuanna 56 188 86 117 55 3.32 0.3 8320 g n Commu Xuando 62 193 89 121 58 3.1 0.3 8500 nity ng Xiaojia 42 147 69 99 175 3.5 1.19 8328 Luxi 58 171 81 104 198 2.95 1.16 7755 Ludong 59 159 79 101 207 2.69 1.3 8560 Qianshe 60 183 88 110 180 3.03 0.99 7945 ng Daliu 66 189 92 107 229 2.86 1.21 8172 Xuguang Xiaoliu 63 175 87 103 218 2.77 1.24 8075 Village Xiao’ou 79 295 146 172 279 3.72 0.95 7580 Tangqin 26 92 44 54 110 3.54 1.2 7960 Dingdon 56 173 83 99 280 3.05 1.64 8235 g Dingxi 48 162 79 114 207 3.38 1.28 7570 Xiaohe 77 282 138 162 270 3.64 0.96 8130

3.2 Socioeconomic Profile of the Affected Population

In order to learn the basic information of the APs, the survey team conducted a sampling survey on the AHs. Among the 151 households with 568 persons affected by the Subproject in 13 village groups of Xianfeng Community and Xuguang Village, 51 households with 209 persons were sampled, with a sampling rate of 33.78%. The sampling is shown in Table 3-5. Samples Household No. Township Village Group # of AHs # of sampling rate Population households (%) 1 Xianfeng Xuannan 28 11 48 40.74% 2 Cuozhen Community Xuandong 38 13 52 34.21% 3 Town Xuguang Xiaojia 11 3 15 27.27% 4 Village Luxi 10 2 7 20.00%

16

Samples Household No. Township Village Group # of AHs # of sampling rate Population households (%) 5 Ludong 2 2 7 100.00% 6 Qiansheng 13 2 8 15.38% 9 Daliu 4 2 7 50.00% 10 Xiaoliu 13 3 16 23.08% 11 Xiao’ou 6 3 13 50.00% 12 Tangqin 6 2 7 33.33% 13 Dingdong 6 3 10 50.00% 14 Dingxi 11 2 8 18.18% 15 Xiaohe 3 3 11 50.00% Subtotal 151 51 209 33.78%

The sample households will be analyzed in terms of ethnic and gender, age structure, educational level, housing size, cultivated land, household properties, and household income and expenditure below. 1) Ethnic and gender analysis All persons affected by land acquisition are Han people. Among the 209 APs of the sample households, there are 98 females, 153 laborers, including 37 agricultural laborers, accounting for 24.18%, and 134 persons working outside, accounting for 64.11%. Among the females, those aged 0-17 years account for 24.53%, those aged 18-35 years account for 20.75%, those aged 35-60 years account for 39.62%, and those aged above 60 years account for 15.09%. 9.43% of them are illiterate, 39.62% have received primary school education, 47.17% have received high school education and 3.77% have received undergraduate education. These women mostly deal with agricultural production, and their agricultural production accounts for 60%-71% of agricultural income and 24%-29% of gross income. 2) Age Structure Among the samples, those aged 0-17 years account for 20.51%, those aged 18-35 years account for 23.08%, those aged 36-60 years account for 39.32% and those aged 60 years account for 17.09%. 3) Educational Level Among 209 samples,,16 are illiterate, accounting for 7.65%; 80 have received primary school education, accounting for 38.28%, 100 have received high school education, accounting for 47.85%, and 10 have received undergraduate education, accounting for 4.78%. 4) Housing Size The houses of the 51 sample households are in masonry concrete and masonry timber structures mainly, with a housing size of 6,730 m2 in total, 131.96 m2 per household on average and 32.2 m2 per capita on average. 5) Cultivated Land

17

Among the 51 sample households, cultivated area is 3.60 mu per household and 0.86 mu per capita on average. The cultivated land is irrigated and non-irrigated land mainly, used mainly to grow paddy rice, rape and cotton, with annual net income of 900 yuan per mu. 6) Household properties Among the 51 sample households, an average household has 2.57 TV sets, 0.61 refrigerator, 2.79 electric fans, 1.21 washing machines, 0.79 air-conditioner, 2.14 fixed telephones/mobile phones, 1.21 bicycles, 1.36 motorcycles and 0.36 tractor. 7) Household Income and Expenditure Among the sample households, per capita annual income ranges from 7,560 yuan to 8,560 yuan, per capita net annual agricultural income from 216 yuan to 572 yuan, accounting for 2.85%-7.57% of gross income, and per capita annual employment income from 6,988 yuan to 8,156 yuan, accounting for 92.43%-97.15% of gross income. See Table 3-3. The average annual gross expenditure of the sample households is about 22,900 yuan, in which staple food expenses account for 32.92%, clothing expenses 8.72%, living equipment expenses 11.14%, household appliance expenses 7.85%, healthcare and medical expenses 2.10%, traffic and communication expenses 7.86%, education, culture and amusement expenses 11.19%, entertaining expenses 15.44%, and expenses on other commodities and services 2.78%. Table 3-5 Income of Sample Households Net Agricultural income Employment income Per Village / Per Per Subtotal Group Total Percentage Total Percentage capita community capita capita (yuan) (yuan) (%) (yuan) (%) (yuan) (yuan) (yuan) Xuannan 25680 535 6.35% 378480 7885 93.65% 404160 8420 Xianfeng Xuandon Community 26140 502 5.86% 419016 8058 94.14% 445120 8560 g Xiaojia 7740 516 6.19% 117210 7814 93.81% 124950 8330 Luxi 2618 374 4.82% 51702 7386 95.18% 54320 7760 Ludong 2828 404 4.72% 57092 8156 95.28% 59920 8560 Qianshen 2464 308 3.87% 61136 7642 96.13% 63600 7950 g Xuguang Daliu 3948 564 6.89% 53312 7616 93.11% 57260 8180 Village Xiaoliu 6800 425 5.27% 122320 7645 94.73% 129120 8070 Xiao’ou 2808 216 2.85% 98332 7564 97.15% 98670 7590 Tangqin 2163 309 3.87% 53767 7681 96.13% 55930 7990 Dingdong 4910 491 5.97% 77390 7739 94.03% 82300 8230 Dingxi 4576 572 7.57% 55904 6988 92.43% 60480 7560 Xiaohe 5698 518 6.38% 83677 7607 93.62% 89375 8125

18

3.3 Summary

The survey team has found that: 1) Since the land acquired for the river dredging and slope protection component is linear in shape, few households are seriously affected, and 51 households with 215 persons in Xianfeng Community will have a per capita land area of less than 0.3 mu after acquisition and should be included in the endowment insurance for Land Expropriated Farmers (LEFs); 2) The agricultural income of the affected villages and groups accounts for a low percentage in per capita income, while employment income accounts for a high percentage, so the agricultural income loss arising from land acquisition is relatively small and will not significantly affect the normal income level; 3) The affected town is one of the 1,000 key towns of China, where secondary and tertiary industries are developed, and is able to provide a large number of nonagricultural job opportunities to LEFs; and 4) Most of the APs think the Subproject is beneficial to the country and people, and are willing to accept land acquisition and support the Subproject as long as compensation is reasonable and timely.

19

4. Legal Framework and Policies

4.1 Laws, Regulations and Policies Applicable to Resettlement

The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of ADB and the PRC, including:

1) ADB policies  Safeguard Policy Statement (SPS), June 2009

2) Laws, regulations and policies of the PRC  Land Administration Law of the PRC (January 1, 1999, amended on August 28, 2004)  Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources, effective from January 1, 2002)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (November 3, 2004)  Measures for the Administration of the Preliminary Examination of the Land Used for Construction Projects (Decree No.27 of the Ministry of Land Resources, effective from December 1, 2004)  Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) (April 10, 2006)  Notice of the State Council on Issues Concerning the Strengthening of Land Control and Adjustment (SC [2006] No.31) (August 31, 2006)

3) Provincial and local policies  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (December 1, 2002)  Guidelines of the Anhui Provincial Government on Doing Well in Employment and Social Security for Land-expropriated Farmers (APG [2005] No.63)  Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (Amended) (July 1, 2004)  Measures of Anhui Province for the Arbitration of Disputes over Compensation for Land Acquisition (APGO [2004] No.101) (January 1, 2005)  Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province (APG [2012] No.67) (May 15,

20

2012)  Notice of the Anhui Provincial Government on Publishing the Compensation Rates for Land Acquisition of Anhui Province (APG [2009] No.132) (December 31, 2009)  Notice of the General Office of the Anhui Provincial Government on Forwarding the Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)  Notice of the General Office of the Anhui Provincial Government on Issuing the Measures for the Administration of Compensation Reserves for Land Acquisition of Anhui Province (APGO [2010] No.22) (May 4, 2010)  Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136) (June 30, 2008)  Notice of the General Office of the Hefei Municipal Government on Issuing the Measures of Hefei Municipality for the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1) (March 28, 2008)  Some Provisions of Hefei Municipality on the Acquisition of Collectively-owned Land and the Endowment Insurance for Land-expropriated Farmers (HMLR [2008] No.85) (May 1, 2008)  Administrative Measures for House Demolition of Feidong County (December 8, 2009)  Implementation Plan for the Disbursement of Subsidies for Low-rent Housing of Feidong County in 2011 (March 3, 2011)  Implementation Plan for the Provision of Low-rent Housing of Feidong County in 2009 (FCGO [2010] No.56) (September 21, 2009)  Notice on Doing Well in the Implementation of Compensation Rates for Newly Acquired Land (FCGO [2010] No.29) (June 2, 2010)  Measures for the Implementation of the Endowment Insurance for Land-expropriated Farmers of Feidong County (FCG [2008] No.23) (April 30, 2008)  Implementation Plan for Farmers’ Skills Training of Feidong County (May 30, 2010)  Notice of the Hefei Municipal Government on Adjusting the Compensation Rates for Houses, Other Attachments and Young Crops on Acquired Land of Feidong County (HMG [2012] No.208) (December 31, 2012)

4.2 Abstract of ADB Policies

The objectives of ADB on involuntary resettlement are: to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. ADB’s basic

21

policy principles are: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets.

22

8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.3 Provisions of Laws, Regulations and Policies of the PRC

The Land Administration Law of the PRC is the main legal basis of the Subproject, and the Ministry of Land and Resources, and the Anhui Provincial Government have promulgated applicable regulations and policies on this basis. The Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Subproject. The key provisions of the above policies are outlined in Appendix 6. In order to regulate the acquisition of collectively-owned land, protect the lawful rights and interests of owners and users of such land, and ensure successful urban construction, the Hefei Municipal Government and the Feidong County Government have formulated measures and regulations in accordance with the Real Property Right Law of the PRC, the Land Administration Law of the PRC and the regulations on its implementation, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, etc. See Table 4-1. Table 4-1 Abstract of the Measures for the Acquisition of Collectively Owned Land of Hefei Municipality and Feidong County Item Key points Index

23

Item Key points Index The municipal land and resources department shall be Article 3 of the responsible for the unified administration of land acquisition Measures of Hefei tasks of the municipality, and the municipal land acquisition Municipality for the Administrative office thereunder shall handle routine affairs of land Acquisition of agency acquisition as entrusted by the municipal land and Collectively-owned resources department. Land (Decree [2008] No.136) The approval procedures for land acquisition shall be as Article 4 of the follows: (1) The organization applying for land acquisition Measures of Hefei shall prepare submittals as required, and file an application Municipality for the with the municipal land and resources department. (2) The Acquisition of municipal land acquisition office shall survey the ownership, Collectively-owned type and area of the land to be acquired, agricultural Land (Decree population involved, and ownership, types and quantities of [2008] No.136) ground attachments together with the district labor and social security department and the local police station; the survey results shall be confirmed jointly by the rural collective economic organization concerned (or village or community committee, known collectively as the rural collective economic organization), affected households and Approval proprietors of ground attachments. (3) The municipal land procedures of and resources department shall notify the purpose and land location of the land to be acquired, compensation rate, acquisition resettlement mode and opinion on the endowment insurance for LEFs together with the municipal labor and social security department to the affected rural collective economic organization and households in writing. (4) The municipal land and resources department shall prepare a farmland conversion program, a cultivated land supplementation program and a land acquisition program, which shall be submitted for approval after review by the municipal government. (5) According to the payment notice for construction land, the municipal finance department shall make transfer payment of fees for using new construction land, and the organization applying for land acquisition shall make transfer payment of other approved taxes and fees. Compensation fees for land acquisition shall include land Articles 6 and 7 of compensation fees, resettlement subsidies, and the Measures of compensation fees for ground attachments and young Hefei Municipality crops. Land compensation fees and resettlement subsidies for the Acquisition shall be based on the compensation rates for land of Compensation acquisition approved by the provincial government; the Collectively-owned fees for land compensation rates for houses, ground attachments and Land (Decree acquisition young crops shall be as stipulated by the municipal [2008] No.136) and government. management For APs with a cultivated land less than 0.3 mu per capita, thereof they could choose endowment insurance voluntarily. And if they chose endowment insurance, land compensation fees shall be paid as follows: (1) 70% shall be used for the endowment insurance for LEFs, and transferred directly to the special financial account of the endowment insurance

24

Item Key points Index fund for LEFs; (2) 30% shall be paid to the rural collective economic organization owning such land, and the use thereof shall be supervised by the district government under measures otherwise stipulated.

Land-expropriated agricultural population to be resettled Articles 11 and 12 shall mean registered resident agricultural population of the Measures of having the right of contracted management of land and Hefei Municipality assuming agricultural obligations within the range of land for the Acquisition acquisition before the land acquisition announcement is of published, including registered children, immigrants by Collectively-owned lawful marriage and emigrants whose registered residence Land (Decree has not been moved out and still having the right of [2008] No.136) Resettlement contracted management of land within the rural collective of land- economic organization. Such population shall be identified expropriated as follows: (1) If all contracted land of a household is agricultural acquired, the whole household shall be resettled; (2) If the population contracted land of a household is partly acquired, the population to be resettled of such household = cultivated area acquired ÷ per capita cultivated area; (3) If the contracted land of a household is partly acquired but the per capita cultivated area is less than 0.3 mu after acquisition or over 70% of the contracted land is acquired, the whole household may be resettled as long as it waives the remaining contracted land voluntarily and hands it over to the collective economic organization for reallocation. Subjects of the endowment insurance for LEFs are those Article 2 of the having attained the age of 16 years or more in the Measures of Hefei agricultural population to be resettled for land acquisition, Municipality for the Subjects of but those already entitled to the endowment insurance of Endowment endowment workers of urban enterprises or the benefit for retirement Insurance for insurance (separation) of public organs or institutions, or entitled to Land-expropriated the basic endowment insurance for retirees of urban Farmers (HMG collective enterprises not insured are excluded. [2008] No.1) Endowment insurance funds for LEFs are brought into the Article 5 of the special account of the municipal finance, and subject to Measures of Hefei management of the receipt and disbursement lines. The Municipality for the sources of funds include: (1) 70% of land compensation Endowment Sources of fees; (2) The resettlement subsidy from which the alimony Insurance for endowment and the subsidy for self job finding are deducted; (3) The Land-expropriated insurance interest on the funds and other value-added income; (4) Farmers (HMG fund Other funds available for use for the endowment insurance [2008] No.1) for LEFs; and (5) When the funds from the above 4 sources are insufficient for payment, funds transferred by the government from the income from transfer of rights to use state land.

25

Item Key points Index Pensions for LEFs shall include basic pension and personal Articles 8, 9 and account pension. The basic pension shall be paid from the 10 of the unified funds, and the personal pension from the personal Measures for the account. After the personal account funds have been used Implementation of out, the benefit shall be paid from the unified funds. Those the Endowment Pension effecting endowment insurance shall receive a pension on Insurance for the following month of attaining the age of 55 years for Land-expropriated women or 60 years for men. The standard of pensions for Farmers of LEFs shall be 180 yuan per capita-month, including a basic Feidong County pension of 150 yuan and a personal account pension of 30 (FCG [2008] yuan. No.23) There are two modes of compensation for land acquisition Notice of the Hefei and house demolition: One is cash compensation as Municipal referred to herein (see the Appendix), and the other is Government on Mode of compensation in kind with resettlement housing offered. Adjusting the compensation Specific compensation rates shall be drafted by township Compensation for land governments or park management committees, and Rates for Houses, acquisition submitted to the county government for approval. Other Attachments and house and Young Crops demolition on Acquired Land of Feidong County (HMG [2012] No.208)

4.4 Main Differences between ADB Policies and PRC Laws

Compensation for land Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential (i.e., replacement cost). Chinese standards are based on Average Annual Output Value (AAOV). Solution: An early-stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments should provide assistance to those in need. Compensation and resettlement of vulnerable groups Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss. Solution: Special funds are available to assist the vulnerable groups, who have been identified during the DMS. All measures have been specified in the RP.

26

Consultation and disclosure Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short. Solution: Consultation has begun at the early stage (before and during the technical assistance). The Feidong PMO agrees to disclose the RP to APs as required by ADB. Lack of legal title Difference: ADB policies require all demolished house/property, whether lawful or not, should be compensated for at replacement cost. According to Chinese laws, people without local registered residence are not entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned/occupied land and illegal constructed/possessed houses. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance to replace or restore lost assets/property. Based on investigations, no such cases were found for this subproject. Resettlement monitoring, evaluation and reporting Difference: ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects. Solution: Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.5 Compensation Principles of the Subproject

The principles for compensation and entitlement of the Subproject have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that all APs obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-project levels. See Table 4-2. Table 4-2 Principles for Resettlement Principles 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve their 2 livelihoods in the absence of the project. The APs are given compensation and assistance in resettlement whether legal title is 3 available or not. 4 If the land available to everyone is insufficient to maintain his/her livelihood, replacement in

27

cash or in kind and other income-generating activities are provided for the lost land. The APs fully understand their entitlements, the method and standard of compensation, the 5 livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. The executing agency and an independent agency / third party should monitor the 6 compensation, relocation and resettlement operations. Vulnerable groups are provided special assistance or treatment so that they lead a better life, 7 and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The RP is consistent with the master plans of the affected city (district/county) and township. 9 The resettlement expenses are sufficient to cover all affected aspects.

4.6 Cut-off Date of Compensation

The cut-off date for the eligibility for compensation was October 31, 2014. Any newly claimed land, newly built house or settlement in the subproject area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

4.7 Fixation of Compensation Rates for Resettlement Impacts of the Subproject

4.7.1 Acquisition of Collective Land According to the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, and the Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province (APG [2012] No.67), the compensation rates for land acquisition of Cuozhen Town, Feidong County are shown in Table 4-3. The compensation rate for housing land is the same as that for farmland. Specific rates will be subject to adjustment with provincial policies, and such adjustments will be incorporated into the final RP, if applicable. The compensation rate for young crops on acquired cultivated land is 1,000 yuan/mu. Table 4-3 Compensation Multiples and Rates for Acquired Collective Land Construction land and Farmland unused land AAOV Compen Compen Re rate No. Region Area Compen sation Compen sation ma (yuan Subsidy Subsidy sation rate sation rate rks /mu) multiple multiple multiple (yuan/ multiple (yuan mu) /mu) Feidong 1 Cuozhen 1620 7 15 35640 5 6 17820 County

28

4.7.2 Compensation for Temporary Land Occupation According to the state and provincial provisions on temporary land occupation, land occupied temporarily for any borrow area shall be compensated for the period of use, and that for other purposes compensated for based on the actual period of occupation and the AAOV of such land. Compensation fees for temporary land occupation include compensation fees for young crops/ground attachments and land reclamation costs. The land occupied temporarily for the Subproject is low-lying wasteland on which no crop is grown, and will be used for silt dumping. It has been proven by testing that silt meets the relevant criteria, and the land could be reclaimed for farming within two years. According to the agreement between the Feidong PMO, and Xianfeng Community and Xuguang Village, this land will be compensated for at 1,000 yuan/mu per annum (2,000 yuan for two years). See Table 4-4. Table 4-4 Compensation Rates for Temporarily Occupied Land Compensation rate for land occupied County Land type temporarily for silt dump (yuan/mu/year) Feidong Non-cultivated land 1,000

4.7.3 Compensation Rates for House Demolition

The compensation rates have been fixed based on replacement cost without depreciation for age (see Table 4-5). The resettlement site will be determined in consultation with the APs before house demolition. Table 4-5 Compensation Rates for Demolished Rural Residential Houses and Attachments Unit price Item Structural type Unit Remarks (yuan) Frame m2 810 Masonry concrete m2 570 House 2 Masonr Grade 1 m 370 compensation y tile or Grade 2 m2 340 fees Demolition timber Grade 3 m2 310 of rural Simple m2 200 residential Moving subsidy yuan/time 330 At most twice houses Based on the Other actual period of compensation yuan/m2· Transition subsidy 4 yuan transition, fees month usually not more than 18 months

According to the Compensation and Resettlement Program for House Demolition of Cuozhen Town, the price differences for property swap are as follows: 30 yuan/m2 for masonry concrete structure, 40 yuan/m2 for masonry tile or timber structure, 50 yuan/m2 for simple and other structures.

29

4.7.4 Compensation for Attachments and Infrastructure

The compensation rates for attachments and infrastructure have been fixed at replacement cost. See Table 4-6. Table 4-6 Compensation Rates for Attachments and Infrastructure Compensation rate Item Proprietor Unit (yuan) Power facilities (telegraph Power supply bureau / poles) To be reconstructed Telecom facilities (telegraph Telecom office / before demolition9, with a poles) total budget of 567,000 400V lines Power supply bureau m 10kV lines Individuals / Scattered trees Individuals/village / 30 Scattered fruit trees Individuals / 50 Enclosing walls Individuals m2 40

4.7.5 Rates of Other Costs See Table 4-7. Table 4-7 Summary of Rates of Taxes and Fees Paid for Land Acquisition No. Tax / fee Rate 1 Fees for using new construction land 10,000 yuan/mu 2 Land reclamation costs 15,000 yuan/mu 3 Water resources construction fund 500 yuan/mu 4 Farmland occupation tax 15,000 yuan/mu 5 Land acquisition management costs 2.8-10% of land acquisition costs

4.7.6 Vulnerable groups In addition to the above compensation policies for land acquisition, vulnerable groups affected by the Subproject are also entitled to the following preferential policies: (1) Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities; (2) During project construction, laborers in vulnerable households will have priority in being employed for unskilled jobs;

9 In telegraph pole relocation in Xuguang Village, 400V lines of 950m, two 12m telegraph poles and 14 10m telegraph poles will be demolished, 15 12m ordinary poles and three 12m reinforced poles, and 400V lines of 1050m will be erected, with a budget of 259,300 yuan. In telegraph pole relocation in Xianfeng Community, 10KV lines of 350m, 400V lines of 600m, 11 12m telegraph poles and 14 10m telegraph poles will be demolished; one substation and one JP cabinet will be relocated; one 12m reinforcement and two 15m reinforcements, 19 12m telegraph poles, 10KV lines of 350m, 400V lines of 600m, and a lightning arrester will be erected, with a budget of 307,700 yuan. Total budget is 567,000 yuan.

30

(3) A special support fund of 1% of resettlement costs will be established in cooperation with the labor and social security department of Cuozhen Town to provide assistance; (4) The Cuozhen Town Government will provide institutional preferences to vulnerable APs, such as exempting or reducing taxes for those dealing with commerce. (5) IA and Cuozhen Government will provide assistance to get housing plots and construct new houses.

4.7.7 Supporting Measures for Women In addition to the above compensation policies for land acquisition, women are also entitled to the following special supporting policies: (1) Women will have priority in employment, and at least 30% of women will receive unskilled jobs; (2) Women will have priority in receiving agricultural and nonagricultural skills training; 800 person-times of training will be provided under the Subproject, in which not less than 400 person-times (50%) will be available to women; (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) A special FGD for women will be held to introduce resettlement policies and improve their awareness; (5) The compensation agreement must be signed by the couple.

See Appendix 3 for a detailed gender analysis.

4.8 Entitlement Matrix

The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-8.

31

Table 4-6 Entitlement Matrix

Type of impact Degree of impact APs Compensation and resettlement policy Measures

116.758 mu, 151 households with 568 1) 70% of land compensation fees (i.e., 7,938 yuan) Measures for land compensation including 116.518 mu persons in Xianfeng shall be used for the endowment insurance for LEFs allocation, land reallocation and and transferred directly to the special financial account of cultivated land and Community and Xuguang production investment (cultivation of the endowment insurance fund for LEFs; the 0.24 mu of housing Village, Cuozhen Town, remaining 30% (i.e., 3,402 yuan) shall be paid to the and irrigation skills, tertiary land Feidong County rural collective economic organization owning such industries, etc.) will be determined land, and a village congress shall be held to determine by the village meeting. Training will the allocation and use program; the use of this sum will be approved and supervised by the be supervised by the township government, and this government at the next higher level. sum is usually paid to the AHs in practice. 2) A sum of 3,600 yuan per capita from resettlement Permanent subsidy shall be transferred to the personal account of land acquisition each insured and paid to the special financial account of the endowment insurance fund for LEFs, and the remaining sum shall be paid to those to be resettled. 3) Compensation fees for ground attachments and young crops will be paid to their proprietors.. Seriously affected 43 households with 181 They will have priority in getting employed (during at the To be arranged by the labor and households with a persons in Xianfeng construction and operating stages), and attending social security office of Cuozhen land loss rate of over Community and Xuguang agricultural and nonagricultural skills training and Town 30% Village, Cuozhen Town, employment arranged by town government and labor Feidong County bureau. Temporary land A 55.66 mu silt dump 3 village groups of Since the land occupied temporarily is wasteland, it will Temporary land occupation will be

32

Type of impact Degree of impact APs Compensation and resettlement policy Measures occupation Xuguang Village be compensated for at 2,000 yuan/mu within the notified in advance supervised by occupation period of two years. the local land and resources bureaus. Houses of 160 m2 will Two residential houses in The two modes of property swap and cash The two AHs prefer property swap. be demolished, all in Xianfeng Community compensation are available: The resettlement site will be masonry concrete 1. Property swap determined in consultation with structure 1) 30 m2 per capita will be granted in principle, where them. any excess size will be compensated for at replacement cost. 2) If the per capita housing size of an AH is less than 30 m2, the AH will be entitled to 30 m2 per capita through application, and any housing size applied for beyond Demolition of this will be paid for at 400 yuan/m2. residential 3) The price differences for property swap are as houses follows: 30 yuan/m2 for masonry concrete structure, 40 yuan/m2 for masonry tile or timber structure, 50 yuan/m2 for simple and other structures. 2. Cash compensation 1) The compensation rates for demolished residential houses are 810 yuan/m2 for frame structure, 570 yuan/m2 for masonry concrete structure, 370 yuan/m2 for masonry timber or tile structure (Grade 1), 340 yuan/m2 for masonry timber or tile structure (Grade 2), 310 yuan/m2 for masonry timber or tile structure (Grade

33

Type of impact Degree of impact APs Compensation and resettlement policy Measures

3), and 220 yuan/m2 for simple structure. 2) Each AH will receive a moving subsidy and a transition subsidy. / 270 females (1) Women will have priority in employment, and at least The women’s federation will provide 50（30%） of them will receive unskilled jobs; (2) acceptable education to women. Women will have priority in receiving agricultural and nonagricultural skills training; 800 men-times of training will be provided under the Subproject, in which not less than 400 men-times (50%) will be available to women; Women (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) A special FGD for women will be held to introduce resettlement policies and improve their awareness; (5) The compensation agreement must be signed by the couple. Low-income people 5 households with 9 (1) Laborers in vulnerable households will be provided Vulnerable households will be (below the national persons with occupational training, and employment information re-identified at the beginning of poverty line), and guidance in order to increase their job resettlement implementation, and Vulnerable five-guarantee opportunities; (2) During project construction, laborers monitored closely until the groups households, in vulnerable households will have priority in being completion of assistance measures. households affected employed for unskilled jobs; (3) A special support fund by disability of 1% of resettlement costs will be established in cooperation with the labor and social security

34

Type of impact Degree of impact APs Compensation and resettlement policy Measures

department of Cuozhen Town to provide assistance; (4) The Cuozhen Town Government will provide institutional preferences to vulnerable APs, such as increasing compensation rates for land acquisition and house demolition, and exempting or reducing taxes for those dealing with commerce. . 7 types, including Proprietors 1) Affected special facilities will be restored by telegraph poles and proprietors after receiving compensation from the owner Infrastructure trees of the Subproject, or reconstructed by the owner and ground according to the original size, standard and function; 2) attachments Compensation fees will be calculated and disbursed for ground attachments as stipulated. Grievances and / All APs Free; all costs so reasonably incurred will be disbursed appeals from the contingencies

35

5. Resettlement and Income Restoration

5.1 Resettlement Objectives

The objective of resettlement is to develop an action plan for restoration of affected by the Subproject so that they benefit from the Subproject, and their living standard is improved or at least restored to the pre-project level.

5.2 Principles for Resettlement Restoration

Some principles for resettlement and restoration have been developed according to the above objective: 1. Production and income restoration (1) The willingness of APs should be respected, and their existing production and living traditions maintained; (2) Resettlement restoration measures/programs should be tailored to impacts of land acquisition and house demolition, and based on compensation rates for land acquisition and house demolition; (3) Resettlement restoration programs should be combined with team construction, resources development, economic development and environmental protection programs so as to ensure the sustainable development of the affected village groups and persons; and (4) The living standard of vulnerable groups adversely affected by the Subproject should be improved. 2. Resettlement for house demolition (1) The households affected by house demolition may choose either property swap or cash compensation. (2) Moving and transition subsidies will be granted. (3) Compensation fees for house demolition must be paid to displaced households before relocation; (4) Displaced households must pay extra costs for additional living space or higher housing quality at their own discretion; and (5) During house reconstruction and relocation, the village committees, township government and Feidong PMO will provide assistance to households in difficulty.

36

5.3 Resettlement Restoration Programs/Measures

5.3.1 Summary of Resettlement Restoration Programs for Affected Villages

The main impacts of Subproject are permanent and temporary land occupation, and the demolition of rural residential houses and business premises. The permanent acquisition of collective land for the Subproject involves Xianfeng Community and Xuguang Village, Cuozhen Town, with 116.758 mu of collective land acquired in total, including 116.518 mu of cultivated land (99.79%) and 0.24 mu of housing land (0.21%). Since only the river dredging and slope protection component involves land acquisition, the APs will lose only part of their land, with per capita cultivated area reducing from 1.03 mu to 0.98 mu, and per capita income loss ranging from 39 yuan to 370 yuan. Since the affected villages are located in the outskirts of Cuozhen Town where nonagricultural income is the main income source, the income loss rate arising from the Subproject is as low as 0.48%-4.89%. Therefore, land acquisition will have little impact on the AHs’ agricultural production and income. Among the affected village groups, the two more seriously affected ones are Tangkan and Dingxi Groups of Xuguang Village, with income loss rates of 3.51% and 4.89% respectively, all above 3.5%, and per capita income losses of 279 yuan and 370 yuan respectively. The agricultural production of the other 11 village groups will be affected relatively slightly by land acquisition, with income loss rates below 3.5%. See Table 2-4. According to the survey, almost all AHs support the Subproject, and all of them prefer cash compensation for land acquisition, because they can use compensation fees for production and livelihood restoration freely. Specifically, they will invest compensation fees in commerce, crop cultivation, stockbreeding and skills training. Since land acquisition will affect different villages to varying degrees, restoration programs have been developed based on the degree of impact, the availability of remaining land resources and the willingness of the APs in consultation with the village committees and the AHs. In sum, in addition to cash compensation, Tangkan and Dingxi Groups of Xuguang Village will also be subject to restoration measures, such as improving agricultural production conditions, crop restructuring, outside employment or tertiary services after skills training and the endowment insurance for LEFs; the other 11 slightly affected groups will be subject to direct cash compensation.

5.3.2 Restoration Programs for Slightly Affected Groups

The 11 slightly affected groups will be subject to direct and timely cash compensation. The compensation rates for land acquisition and the amount of lost cultivated land will be determined in strict accordance with the applicable state and local policies. All compensation of land acquisition will be paid to AHs in cash directly.

37

For APs with a cultivated land less than 0.3 mu per capita, they could choose endowment insurance voluntarily. And if they chose endowment insurance, The compensation method is as follows: 1) 70% of land compensation fees shall be used for the endowment insurance for LEFs and transferred to the special financial account of the endowment insurance fund for LEFs; the remaining 30% shall be paid to the rural collective economic organization owning such land, and this sum is usually paid to the AHs in practice; 2) A sum of 3,600 yuan per capita from resettlement subsidy shall be transferred to the personal account of each insured and paid to the special financial account of the endowment insurance fund for LEFs, and the remaining sum shall be paid to those to be resettled; 3) Compensation fees for ground attachments and young crops shall be paid to their proprietors. See Table 5-1. Table 5-1 Use and Allocation of Compensation Fees for Land Acquisition Item Use and allocation of fees 70% of land compensation fees (i.e., 7,938 yuan) shall be used for the endowment insurance for LEFs and transferred directly to the special financial account of the endowment insurance fund for LEFs; the Land compensation remaining 30% (i.e., 3,402 yuan) shall be paid to the rural collective fees 11,340 yuan/mu economic organization owning such land, and a village congress shall be held to determine the allocation and use program; the use of this sum will be supervised by the township government, and this sum is usually paid to the AHs in practice. A sum of 3,600 yuan per capita from resettlement subsidy shall be Resettlement subsidies transferred to the personal account of each insured and paid to the 24,300 yuan/mu special financial account of the endowment insurance fund for LEFs, and the remaining sum shall be paid to those to be resettled.

5.3.3 Restoration Programs for Seriously Affected Groups

According to the impact analysis of land acquisition and house demolition, Tangkan and Dingxi Groups of Xuguang Village will be more seriously affected. In order to ensure that the APs of these groups have opportunities to improve or at least restore their production level and living standard, production restoration programs suited to their practical conditions have been developed on the basis of adequate consultation in addition to compensation for their acquired land, and demolished houses and attachments. See Table 5-2 for the basic information and impacts of these two groups. Table 5-2 Basic Information of Seriously Affected Village Groups Per capita cultivated Current situation of the Groups Land acquisition impact area (mu) Village Per group # of Cultivated capita Affected Affected Cultivated Before After Population households area (mu) net households population area (mu) acquisition acquisition income Tangkan 26 92 110 7960 6 26 8.52 1.20 1.10 Dingxi 48 162 207 7570 11 42 18.28 1.28 1.16

38

Through analysis and consultation, the possible income restoration measures of these groups are as follows: (1) Crop restructuring: According to analysis, these village groups will have a certain amount of cultivated land after acquisition, as shown in Table 5-2. The AHs may take necessary engineering and biological measures to improve the productivity of cultivated land. Xuguang Village is only 2km away from Cuozhen Town and is also close to the Feidong county seat. In recent years, the favorable economic situation and the substantial growth of the floating population of Cuozhen Town and Feidong County provide a good market for greenhouse vegetables in Xuguang Village. The AHs wish to turning the crop structure focused on less profitable food crops (paddy rice, rape, etc.) to one focused on more profitable vegetables. It is planned that vegetable greenhouses with a total area of 8 mu (0.73 mu per household on average) will be constructed, 4 mu per group, to grow eggplant and pepper, etc., with an average investment of about 2,500 yuan per mu and a total investment of about 20,000 yuan. The net incremental income per mu will 2,430 yuan and the total incremental income will be 19,440 yuan per annum, benefiting 68 persons and increasing per capita income by 285.88 yuan. Table 5-3 Crop Restructuring and Income Variation of Affected Village Groups Investment Return Income Net Net Income No. restoration unit Qty. Unit price Investment return Beneficiary return increase measure (yuan/mu) (yuan) per unit population (yuan) (yuan) (yuan) Crop Tangkan mu 4 2500 10000 2430 9720 26 373.85 restructuring Crop Dingxi mu 4 2500 10000 2430 9720 42 231.43 restructuring Subtotal / 20000 / 19440 68 285.88

(2) Improvement of agricultural infrastructure to increase the APs’ income indirectly: Two tractor roads and one pedestrian passage have been planned for the two village groups. Infrastructure construction will benefit the production and livelihoods of the APs and the residents of the resettlement community, promote the development of secondary and tertiary industries, and improve the income-generating ability of the APs gradually.

5.3.4 Old age support measures for LEFs

For all affected village groups, households with a per capita cultivated area of less than 0.3 mu will also be included in the endowment insurance system for LEFs. It is estimated that 51 households with 215 persons in Xianfeng Community will have a per capita cultivated area of less than 0.3 mu and will be included in the endowment insurance system for LEFs.

39

According to the Measures for the Implementation of the Endowment Insurance for Land-expropriated Farmers of Feidong County (FCG [2009] No.23), farmers with registered agricultural residence in Feidong County with an arable area of less than 0.3 mu or 70% of whose household contracted land has been acquired with the approval of the county or above government, attaining the age of 16 full years at the time of land acquisition, and having the right to right to a second round of contracted management of land may participate in the endowment insurance for LEFs on a voluntary basis. Those effecting the endowment insurance for LEFs shall receive a pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. LEFs who have attained or exceeded the stipulated age upon land acquisition shall receive pensions for LEFs from the month following the actual time of land acquisition. The standard of pensions for LEFs shall be 180 yuan per capita-month, including a basic pension of 150 yuan and a personal account pension of 30 yuan. The basic pension shall be paid from the unified funds, and the personal pension from the personal account. After the personal account funds have been paid in, the benefit shall be paid from the unified funds.

5.3.5 Employment Promotion Program

As predicted by the design agency, the Subproject will generate 1,318 temporary jobs at the construction and operating stages (1,160 at the construction stages and 158 at the operating stage, and over 75% are unskilled jobs). The Feidong PMO will ensure the APs have priority in obtaining unskilled jobs and their remuneration is not less than the average level of similar local jobs.

5.3.6 Resettlement Program for Demolished Residential Houses

Two households with 8 persons in Xianfeng Community will be affected by house demolition, with a total demolition area of 160 m2, and may choose either cash compensation or property swap. 1. Property swap 1) 30 m2 per capita will be granted in principle, where any excess size will be compensated for at replacement cost. 2) If the per capita housing size of an AH is less than 30 m2, the AH will be entitled to 30 m2 per capita through application, and any housing size applied for beyond this will be paid for at 400 yuan/m2. 3) The price differences for property swap are as follows: 30 yuan/m2 for masonry concrete structure, 40 yuan/m2 for masonry tile or timber structure, 50 yuan/m2 for simple and other structures. 2. Resettlement site Harmonious Garden in Cuodong Village, Cuozhen Town has been chosen as the resettlement community in consultation with the AHs. The community has 19 multi-storied buildings, with a total building area of 49,000 m2, with housing sizes of 120 m2, 100 m2 and 80 m2. The community broke ground in 2012 and will be

40

completed by this year end. The water and power supply facilities, and roads have been completed, and a full range of infrastructure is available.

Figure 5-1 Resettlement community – Harmonious Garden

3. Cash compensation The compensation rates for demolished residential houses are 810 yuan/m2 for frame structure, 570 yuan/m2 for masonry concrete structure, 370 yuan/m2 for masonry timber or tile structure (Grade 1), 340 yuan/m2 for masonry timber or tile structure (Grade 2), 310 yuan/m2 for masonry timber or tile structure (Grade 3), and 200 yuan/m2 for simple structure.

5.4 Training of APs

Training needs depend on the resettlement and restoration mode preferred by the APs (see Section 5.3). In order to ensure that the APs change the traditional employment concept, build up a proper sense of occupation and master necessary labor skills, the PMO will give agricultural skills training, pre-job training and professional skills training to them together with the labor and social security department. In the subproject area, agriculture is no longer the main income source of the affected villages, so nonagricultural skills training will also be provided to the LEFs to improve their employment skills. The town labor and social security office will be responsible for the skills training and reemployment of the 84 households LEFs, develop a training program and set up training courses scientifically. Training will be subject to semiannual reporting, and the training program will be adjusted timely based on employment needs. All APs may attend such training for free. See Tables 5-4 and 5-5. Table 5-4 Agricultural Technical Training Program in the Subproject Area Person-times Funding Agency Funding County Town Time Trainees trained per Scope (0,000 responsible source annum yuan) Cuozhen 2014.1 Greenhouse Town Labor Government Feidong Cuozhen 2, AHs 200 1.5 vegetables & Social budget 2015.3, Security

41

Person-times Funding Agency Funding County Town Time Trainees trained per Scope (0,000 responsible source annum yuan) Office

Cuozhen 2014.1 Town Labor Government 2, AHs 200 Stockbreeding & Social 1.5 budget 2015.3, Security Office Table 5-5 Employment Training Program in the Subproject Area Person-times Funding Agency Funding County Town Time Trainees trained per Scope (0,000 responsible source annum yuan) Cuozhen Town Labor 2015.3, Food, Government AHs 90 & Social 0.9 2015.9 catering budget Security Office Cuozhen Town Labor 2015.3, Apparel Government AHs 210 & Social 2.1 2015.9 making budget Security Feidong Cuozhen Office Operation Cuozhen 2015.3, of building Town Labor Government 2015.9, AHs 100 / & Social 1 budget 2016.3 decorative Security materials Office Cuozhen Government Other irregular training Town 1 budget Government

The training program will be disclosed to the affected villages, and implemented by the county and town labor and social security bureaus, and the Feidong PMO; training costs will be disbursed from the training budget.

5.5 Protection of Women’s Rights and Interests

At the RP preparation stage, women in the subproject area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Subproject, and think the Subproject will promote the utilization of water resources, avoid water pollution, reduce the incidence of infectious diseases and protect people’s health. In addition, they expect job opportunities from the Subproject, and training crop cultivation, stockbreeding and apparel making skills. During project implementation, at least 30% of affected women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 800

42

person-times of APs will be trained, in which not less than 400 person-times (50%) will be provided to female labor. Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. A compensation agreement must be signed by the couple. During resettlement implementation, a FGD for women will be held to introduce the resettlement policies. See Appendix 3 for a detailed gender analysis.

5.6 Assistance Measures for Vulnerable Groups

According to the survey, the main vulnerable groups of the Subproject are low-income people and female-headed households. Among the APs, 5 households with 9 persons fall into vulnerable groups. During the whole relocation process, the PMO, implementing agency and local government will pay particular attention to the resettlement of vulnerable groups. In addition to the living and production resettlement measures under the RP, vulnerable groups will be provided certain assistance to improve their living and production conditions. The main assistance measures for low-income households are as follows: 1) At least two members of each AH receive skills training, including at least one woman; women will have priority in employment, and receive relevant information; 2) The local government will pay pensions to women; 3) A special support fund of 1% of resettlement costs will be established in cooperation with the labor and social security department of Cuozhen Town to provide assistance; 4) Seriously affected households with a land loss rate of over 30% will have priority in obtaining job opportunities at the construction and operating stages of the Subproject, and attend agricultural and nonagricultural skills training for LEFs.

5.7 Restoration Program for Temporarily Occupied Land

55.66 mu of land will be occupied temporarily for the silt dump in the river dredging and slope protection component. Since this land is low-lying wasteland. For this reason, temporary land occupation will not affect local residents’ production and income. In fact, silt dumping will facilitate the reclamation of this land. Compensation will be paid the village collective, which can be used for public infrastructure improvements.

5.8 Restoration Program for Infrastructure

Affected special facilities and ground attachments will be restored by proprietors after receiving compensation from the owner of the Subproject. Restoration measures for demolished facilities must be planned in advance, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents. Affected public facilities will be demolished according to the construction drawings without affecting project construction and with

43

minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting regular lives of residents along such pipelines (including those not to be relocated).

44

6. Resettlement Organizational Structure

6.1 Resettlement Implementation and Management Agencies

6.1.1 Organizational Setup

In order to ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, government agencies at different levels of Feidong County will ensure successful project preparation and resettlement implementation by establishing an effective organizational structure and building its capacity. Since April 2011, the resettlement agencies of the Subproject have been established successively, and their responsibilities defined clearly. See Figure 6-1.  Chao Lake Management Authority(CLMA)  ADB-financed Project Working Group of the Feidong County Government  Office of the ADB-financed Project Working Group of the Feidong County Government (Feidong PMO)  HCCI (the implementing agency)  Office of the ADB-financed Project Working Group of the Cuozhen Town Government (Cuozhen PMO)  Cuozhen Town Land and Resources Branch  Xianfeng Community Committee and Xuguang Village Committee  AHs  Design agency  External M&E agency: Hohai University  Other agencies: house demolition office, women’s federation, labor and social security bureau

45

Figure 6-1 Organizational Chart

6.1.2 Organizational Responsibilities

 Chao Lake Management Authority(CLMA) Leading the decision-making and construction of the 14 subprojects

 ADB-financed Project Working Group of the Feidong County Government Leading the decision-making and construction of the Subproject

 Feidong PMO (1) Contact with the ADB-financed Project Working Group of the Feidong County Government, ADB and the functional departments concerned of Hefei Municipality

46

(2) Ensuring that all plans related to resettlement of the Subproject are approved by the competent departments of the state, Anhui Province, Hefei Municipality and Feidong County; (3) Inspecting and directing the implementing agency

 HCCI (1) Appointing a resettlement consulting agency to prepare for resettlement; (2) Coordinating the consulting agency with other agencies at the preparation stage; (3) Coordinating the implementation progress of the Subproject and the RP; (4) Reporting the resettlement fund disbursement plan and supervising the disbursement of funds; (5) Coordinating the work of the resettlement agencies; (6) Raising resettlement funds; (7) Disbursing resettlement funds; (8) Responsible specifically for resettlement implementation; (9) Tracking and supervising the disbursement of resettlement funds; (10) Handling grievances and appeals of APs arising from resettlement; (11) Supporting the work of the external M&E agency; (12) Collecting and compiling information required for internal monitoring reporting; (13) Managing resettlement archives; (14) Training persons responsible for resettlement

 Cuozhen Town Land and Resources Branch (1) Applying for a land use permit and a construction planning permit with the competent departments; (2) Formulating resettlement policies in coordination with the departments concerned; (3) Responsible for all-around affairs of land acquisition (including social insurance for LEFs)

 Cuozhen PMO (1) Participating in the DMS; (2) Participating in the calculation of compensation fees for AHs; (3) Disbursing compensation fees to APs; (4) Handling grievances and appeals of APs arising from resettlement; (5) Giving employment skills training to APs; (6) Implementing employment measures for APs

 Resettlement implementing agency (Resettlement offices in County Land Bureau and Town Land and Rescources Branch) (1) Preparing for resettlement together with the resettlement consulting agency; (2) Formulating detailed resettlement policies; (3) Reporting resettlement progress to the Cuozhen PMO; (4) Communicating with other departments during resettlement implementation;

47

(5) Reporting the resettlement fund disbursement plan to the Cuozhen PMO and supervising the disbursement of funds; (6) Managing resettlement archives; (7) Responsible for internal resettlement monitoring; (8) Receiving ADB resettlement experts at the preparation and implementation stages; (9) Handling grievances and appeals of APs arising from resettlement; (10) Communicating with the external M&E agency during resettlement implementation; (11) Constructing resettlement sites and 2 plots; (12) Implementing employment measures for APs

 Design agency At the planning and design stage, it will survey the physical indicators of land acquisition and house demolition, the environmental capacity, the usable resources, etc. accurately, and assist the governments in the subproject area in formulating resettlement programs, preparing budgetary investment estimates for compensation for land acquisition and house demolition, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner timely, make design disclosure to the PMOs of all levels, assist in the implementation of the relocation and resettlement for production of the APs, and improve the resettlement programs based on the practical situation.

 External M&E agency: Hohai University Hohai University will be responsible for external resettlement M&E, and submit relevant reports to the PMO and ADB. Its main responsibilities are: (1) Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs as set out in this RP, (2) submitting resettlement M&E reports to the CLMA and ADB; and (3) Providing technical advice to the CLMA in data collection and processing.

6.2 Staffing and Equipment

6.2.1 Staffing

In order to ensure the successful implementation of the resettlement work, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established. The resettlement staff has strong organizing and coordinating capabilities, and rich experience in resettlement, and is competent for the resettlement work. See Table 6-1. Table 6-1 List of Members of Resettlement Agencies Person Resettlement agency Work force responsible

48

Person Resettlement agency Work force responsible Feidong PMO Li Zhikui 15 Cuozhen PMO Gu Yiyong 2 HCCI Ang Yonchun 4 Cuozhen Town Land and Resources Branch Chen Shaofei 4 Cuozhen Town Government Gu Yiyong 3 Xianfeng Community Committee and Xuguang Yuan Xueqin, Xuan 5 Village Committee Hengfa

6.2.2 Equipment

The resettlement agencies at all levels of the Subproject have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

6.2.3 Institutional Training Program

In order to better implement the RP, ensure that the APs benefit from the Subproject and meet the general construction schedule, the Feidong PMO will take the following measures to strengthen institutional capacity and efficiency: 1) Leadership responsibility system: A powerful leadership composed of leaders in charge of district governments and leaders of department concerned will be established. 2) Competent staff: The staff of the resettlement agencies at all levels should have a strong holistic concept, professional proficiency and working experience. 3) Defined responsibilities: The responsibilities of the resettlement agencies at all levels should be defined in accordance with ADB requirements, and the applicable laws and regulations of the state. 4) Training of resettlement staff: The resettlement staff will be trained on resettlement policies (PRC and ADB) and information management irregularly as necessary; the training budget is 129,800 yuan. 5) Public supervision: All resettlement information will be disclosed to the public for public supervision. 6) Resettlement briefings will be held irregularly and bulletins will be distributed. 7) The PMO will provide necessary vehicles and office facilities to the resettlement agencies at all levels to facilitate their work. See Table 6-2 for details. Table 6-2 Resettlement Operational Training Program Agency Scope of training Trainees Time Costs No. responsible A B C D (CNY104) Drawing on experience in Resettlement office 1 Feidong PMO resettlement for ADB-financed 2013-2014 1.98 staff projects from other provinces

49

Agency Scope of training Trainees Time Costs No. responsible A B C D (CNY104) External M&E Resettlement office 2 ADB’s resettlement policies Feb. 2015 2 agency staff Updates of state policies on External M&E Resettlement office 3 land acquisition and house Feb. 2015 1 agency staff demolition Experience and lessons in Resettlement office 4 Feidong PMO Mar. 2015 2 resettlement of other places staff Computer operation and data Resettlement office Feb. - Mar. 5 Feidong PMO 1 processing staff 2015 Resettlement Resettlement procedures and Township resettlement 6 implementing policies for ADB-financed office, village Mar. 2015 1 agency projects resettlement teams Resettlement Township resettlement Resettlement policies and 7 implementing office, village Mar. 2015 1 practice agency resettlement teams Internal experience in Resettlement staff of 8 Feidong PMO 2014-2015 2 resettlement township PMO

50

7. Public Participation and Grievance Redress

7.1 Public Participation

In order to lay a solid foundation for the resettlement work of the Subproject, protect the lawful rights and interests of the APs and entities, and reduce grievances and disputes, great importance is attached to the participation of and consultation with the APs at the preparation and implementation stages.

7.1.1 Participation at the Preparation Stage

Since July 2011, HECS, HCCI and the survey team of NRCR have conducted a series of socioeconomic survey and public consultation activities (with 30% of participants being women) under the direction of technical assistance experts. At the preparation stage, the PMO, implementing agency and design agency conducted extensive consultation on land acquisition and resettlement. See Table 7-1 for the participation activities at the preparation stage, and Appendix 3 for the minutes of public participation meetings. The updated RIB will be distributed in December 2014. Table 7-1 Disclosure of Resettlement Information and Key Consultation Activities # of No. Time Activity Participants Organizer persons Optimization of HECS, HCCI, Cuozhen Town Government, 1 2011.8 13 HCCI project design villages, groups and representatives of APs Identification of land HECS, HCCI, Cuozhen Town Government, 3 2011.9 acquisition and house 14 HCCI villages, groups and representatives of APs demolition impacts Determination of HCCI, county land and resources bureau, 4 2011.9 compensation rates Cuozhen Town Government, villages, 10 HCCI for land acquisition groups and representatives of APs HCCI, NRCR, county land and resources bureau, county labor and social security Determination of bureau, county women’s federation, county 5 2011.9 compensation rates 16 HCCI agriculture bureau, county poverty reduction for house demolition office, county civil affairs bureau, villages, groups and representatives of APs HCCI, NRCR, county land and resources bureau, county labor and social security 2011.9- Identification of social bureau, county women’s federation, county 6 30 HCCI 10 impacts agriculture bureau, county poverty reduction office, county civil affairs bureau, villages, groups and representatives of APs Determination of HCCI, villages, groups and representatives 7 2011.10 25 HCCI resettlement modes of APs Determination of HECS, HCCI, Cuozhen Town Government, 8 2011.10 20 HCCI resettlement policies villages, groups and representatives of APs 9 2014.3-9 DMS HCCI, Cuozhen Town Government, affected / HCCI

51

# of No. Time Activity Participants Organizer persons villages and persons Disclosure of 10 2014.3-9 resettlement policies Affected villages and persons / HCCI and rates Confirmation of compensation 2014.4-1 HCCI, Cuozhen Town Government, affected 11 programs and 100 HCCI 2 villages and persons livelihood restoration measures Confirmation 2014.4-2 resettlement HCCI, Cuozhen Town Government, affected 12 100 HCCI 015.3 measures for house villages and persons demolition Disclosure of the final 13 2014.12 HCCI, Cuozhen Town Government / HCCI RP or RIB Website publication 14 2014.12 ADB / HCCI of the final RP

7.1.2 Participation Plan at the Implementation Stage

With the progress of project preparation and implementation, the implementing agency will conduct further public participation. See Table 7-2. Table 7-2 Public Participation Plan Purpose Mode Time Agencies Participants Topics Feidong PMO, HCCI, Discussing the final Determination Village land and Before income restoration of income meeting resources implement All APs program and the restoration (many bureau, -tation program for use of programs times) township and compensation fees village officials Labor and social security All Training Dec. 2014 Village bureau, APs(include75 Discussing training program for ~ Sep. meeting township and working age needs APs 2015 village women ) officials 1) Resettlement progress and impacts 2) Payment of Jun 2013. Township and compensation Villager Monitoring ~ Jun. village All APs 3) Information participation 2016 officials disclosure 4) Livelihood restoration and house reconstruction

52

7.2 Grievances and Appeals

Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows: Stage 1: An AP files an oral or written grievance with the community or local branch resettlement office. In case of an oral grievance, the resettlement office shall take written records and give a clear reply within two weeks. If a major issue is involved and needs instructions from the resettlement office of the next higher level, the reply from such higher resettlement office shall be obtained within two weeks. Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with the township resettlement office within one week of receipt of the above reply, and the component resettlement office shall make a disposition within 3 weeks. Stage 3: If the grievant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Feidong PMO within one month of receipt of the above disposition, and the Feidong PMO shall give a reply within 4 weeks. Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may bring a suit in a civil court within 15 days of receipt of the above reply. Each office's responsible person's name, telephone number can see Table 7-3. Table 7-3 responsible person's name and its telephone number Responsible The name of office Telephone number person's name Hefei Cuocheng Construction & Investment Ang yongchun 13605605093 Co., Ltd. Cuozhen Town Government Fan Yanhua 18755192030 Offices of lettes and calls of Feidong CountyCivil servant 0551-7711431

APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism⑩. AP also could appeal the complaints to civil courts at any stage of the LAR process directly if he or she does not want to proceed through the project GRM. All grievances and complaints (oral or written) will be reported to the ADB in internal and external monitoring report. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use

11 Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in “Description”.

53

it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media.

54

8. Resettlement Budget

8.1 Resettlement Budget

All costs incurred during land acquisition and resettlement will be included in the general budget of the Subproject. Based on prices in the second half of 2014, the total resettlement costs of the Subproject are 11.0828 million yuan, including rural land acquisition costs of 4.2777 million yuan or 38.60% of total costs, compensation fees for temporary land occupation of 111,320 yuan or 1.00% of total costs, compensation fees for house demolition of 105,040 yuan or 0.95% of total costs, compensation fees for infrastructure and ground attachments of 599,320 yuan or 5.41% of total costs, land taxes of 4,292,060 yuan or 38.73% of total costs, and survey and design costs, M&E costs, training costs, implementation management costs, vulnerable group support costs and contingencies of 1.6974 million yuan or 15.32% of total costs. See Table 8-1 for the estimated resettlement costs. See Appendix 8 for the detailed resettlement budget. Table 8-1 Resettlement Budget Sheet No. Item Amount (0,000 yuan) Percentage (%) Compensation fees for collective 1 land acquisition 427.77 38.60 1.1 Land compensation fees 132.40 11.95 1.2 Resettlement subsidies 283.72 25.60 1.3 Young crop compensation fees 11.65 1.05 2 Temporary land occupation 11.132 1.00 Compensation fees for house 3 demolition 10.504 0.95 3.1 Residential houses 10.504 0.95 4 Infrastructure and attachments 59.932 5.41 4.1 Telegraph poles 4.2 Telephone poles 56.70 5.12 4.3 400V lines 4.4 10kV lines 4.5 Miscellaneous trees 2.74 0.25 4.6 Fruit trees 0.28 0.03 4.7 Enclosing walls 0.212 0.01 Subtotal of 1-4 509.338 45.96 5 Land taxes 429.206 38.73 5.1 Fees for using new construction land 116.758 10.54 5.2 Land reclamation costs 116.758 10.54 5.3 Farmland occupation tax 175.14 15.80 5.4 Land acquisition management costs 20.37 1.84

55

No. Item Amount (0,000 yuan) Percentage (%) 6 Survey and design costs 15.28 1.38 7 Implementation management costs 25.47 2.30 8 Internal M&E costs 10.19 0.92 9 External M&E costs 9.98 0.90 10 Training costs 12.98 1.17 11 Contingencies 90.93 8.20 12 Support fund for vulnerable groups 5.09 0.46 Subtotal of 5-12 598.946 54.04 Total 1108.28 100.00

8.2 Resettlement Investment Schedule and Funding Sources

All resettlement funds of the Subproject are from local counterpart funds and domestic loans. Before or during project construction, the investment plan will be implemented in stages in order not to affect the production and livelihoods of the AHs, as shown in Table 8-2. Table 8-2 Resettlement investment plan Year 2014 2015 Total Amount of investment (0,000 997.45 110.83 1108.28 yuan) Percentage 90% 10% 100%

8.3 Disbursement and Management of Resettlement Funds

8.3.1 Disbursement of Resettlement Funds

The Subproject’s resettlement funds will be disbursed on the following principles: All costs related to land acquisition will be included in the general budget of the Subproject, disbursed by HCCI directly to the functional departments concerned of the township government through a special account according to the compensation rates, and then distributed to the affected villages/groups; land compensation fees will be paid before acquisition.

8.3.2 Management of Resettlement Funds

Resettlement funds must be disbursed in strict conformity with the compensation rates specified in the applicable state regulations on land acquisition and the policies in the RP. The Cuozhen PMO will submit a construction progress report to HCCI on a monthly basis. HCCI will review disbursement statements and disburse funds.

56

Compensation fees for land acquisition, house demolition and attachments, including moving subsidies, transition subsidies and early moving rewards, will be approved by the resettlement implementing agency. HCCI will appoint a consulting agency to conduct regular internal audits on the use of resettlement funds. The finance and audit departments of the Feidong County Government have the power to monitor and audit the use of resettlement funds. Hohai University will perform follow-up monitoring on the use of compensation fees by the AHs during external monitoring.

57

9. Resettlement Implementation Plan

9.1 Principles for Resettlement Implementation

According to the project implementation schedule, the Subproject will be constructed from 2014 to 2015. In order that the resettlement schedule links up the construction schedule of the Subproject, land acquisition will begin at the end of 2014 and end in 2015. The basic principles for resettlement implementation are as follows:  Land acquisition should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary.  During resettlement, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of land acquisition will be disclosed, the RIB distributed and public participation activities conducted properly.  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason.

9.2 Resettlement Implementation Schedule

The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, land acquisition and house demolition, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1.

58

Table 9-1 Schedule of Resettlement Activities No. Task Target Agencies responsible Time remarks 1 Information disclosure 1.1 First draft RIB 13 groups of 2 villages PMO and HCCI May 2012 completed Disclosure of the first draft RP on ADB’s 1.2 CLMA ,and ADB May 2013 completed website 2 RP and budget Approval of RP and budget (including 2.1 11.0828 million yuan Government and HCCI Dec. 2014 compensation rates) 2.2 Village-level income restoration programs 13 groups of 2 villages Village committees Dec. 2014 - 2015 Finalizing of the RP based on the detailed 2.3 / Implementing agency and PMO Nov. 2014 design 3 DMS 3.1 DMS on the 2 affected villages 2 villages HCCI Mar. – Oct. 2014 4 Compensation agreement Village-level land compensation Dec. 2014 – Mar. 4.1 13 groups of 2 villages Land and resources bureau agreement 2015 Dec. 2014 – Mar. 4.2 Household land compensation agreement 151 households Village committees 2015 Compensation agreement for house Dec. 2014 – Mar. 4.3 2 households Land and resources bureau demolition 2015 5 House reconstruction Selection and consultation of resettlement Township government, village Oct. 2014 – Mar. 5.1 2 AHs site committees and AHs 2015 Dec. 2014 – Mar. 5.2 House demolition 2 households Contractor / AHs 2015 6 Implementation of livelihood restoration measures

59

No. Task Target Agencies responsible Time remarks Distribution of land compensation fees to Township government and village Dec. 2014 – Mar. 6.1 households and land reallocation (if 2 villages collectives 2015 possible) Implementation of village-level income Dec. 2014 – Mar. 6.2 2 villages Village collectives restoration programs 2015 Township government, village Advice on income restoration, commerce Dec. 2014 – Mar. 6.3 151 AHs collectives, and labor and social and work 2015 security bureau Implementation of training program for Dec. 2014 – Sep. 6.4 151 AHs labor and social security bureau APs 2015 Confirming vulnerable households and 5 households with 9 Dec. 2014 – Sep. 6.5 Civil affairs bureau and Hefei PMO implementing assistance measures persons 2015 Hefei PMO, labor and social security Dec. 2014 – Dec. 6.6 Hiring APs at the construction stage 568 APs bureau, and contractor 2015 7 Capacity building Training of staff of HCCI, and the land and Dec. 2014 – Dec. 7.1 15 persons ADB/PPTA consultant resources bureau 2015 Training of county, township and village Hefei PMO, and land and resources 7.2 20 persons Mar. – Dec. 2015 officials bureau 8 M&E 8.1 Baseline survey As per the RP External M&E agency Dec. 2013 CLMA, Hefei PMO and implementing 8.2 Establishment of internal M&E mechanism As per the RP Nov. 2013 agency 8.3 Appointing an external M&E agency Hohai University CLMA Sep. 2013 CLMA, Hefei PMO and 8.4 Internal monitoring reporting Quarterly report From Oct. 31, 2012 implementing agency Dec. 2013 No.1 report 8.5 External monitoring reporting Semiannual report Hohai University Jun. 2014 No.2 report

60

No. Task Target Agencies responsible Time remarks Dec. 2014 No.3 report Jun. 2015 No.4 report 8.6 Post-evaluation report One report Post evaluation agency and CLMA Jun. 2016 9 Public consultation and documentation Implementing agency Ongoing 10 Grievance redress and documentation Implementing agency Ongoing 11 Disbursement of compensation fees 11.1 Disbursement to implementing agency Initial funds Dec. 2014 11.2 Disbursement to villages Most funds Implementing agency Jan. – Mar. 2015 Implementing agency and village 11.3 Disbursement to households Most funds Feb. – Apr. 2015 committees 12 Commencement of civil construction 12.1 The Subproject HCCI Dec. 2014

61

10. Monitoring and Evaluation

In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, house demolition and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policies, including internal and external monitoring.

10.1 Internal Monitoring

The CLMA Feidong PMO, HCIC with resettlement IA will develop a detailed internal monitoring plan for land acquisition and resettlement, including: (1) Relocation of APs, allocation of housing sites and house reconstruction, etc.; (2) Payment, use and availability of compensation fees for land acquisition, and implementation progress and quality of production and development options of APs; (3) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during land acquisition, house demolition and resettlement; (4) Restoration of the household income of APs; (5) Special support for vulnerable groups; (6) Payment, use and availability of compensation fees for resettlement; (7) Level of public participation and consultation during land acquisition, house demolition and resettlement; (8) Resettlement training and its effectiveness; and (9) Working mechanism, training, working hours and efficiency of local resettlement offices The CLMA will submit an internal monitoring report to ADB semiannually. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison. Table 10-1 and Table 10-2 provide some formats. Table 10-1 Progress Report of Land Acquisition, House Demolition and Resettlement ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Actual quantity Accumulative Proportion of Item Unit RP DMS during total completion implementation Permanent land acquisition Mu House demolition ㎡ Temporary land use Mu Payment of land compensation 10,000 yuan Personnel training Person Job arrangement Person Reported by: Signature (person responsible): Official seal:

62

Table 10-2 Implementation Schedule of Fund Use ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Investment Description Unit/ Compensation Adjusted Proportion of Affected unit required 11 Qty. received (yuan) compensation compensation (yuan) Village 1 Village 2 Collectives APs Reported by: Signature (person responsible): Official seal:

10.2 External Monitoring

According to ADB’s policies, CLMA has appointed Hohai University as the independent resettlement M&E agency. Hohai University will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, compliance with the RP as well as rational of ADB policies and give advice. It shall also conduct follow-up monitoring of the APs’ production level and living standard, and submit M&E reports to the CLMA and ADB.

10.2.1 Scope and Methodology of External Monitoring

(1) Baseline survey Hohai University has conducted a baseline survey of the affected villages and village groups affected by land acquisition to obtain baseline data on the monitored displaced households’ production level and living standard. The production level and living standard survey will be conducted semiannually to track variations of the APs’ production level and living standard. This survey will be conducted using such methods as panel survey (sample size: 33% of the households affected by land acquisition, to be sampled randomly, plus 2 affected entities,), random interview and field observation to acquire necessary information. A subsequent analysis and an evaluation of income restoration and living standards will be made on the basis of the Baseline Survey Report. (2) Periodic M&E During the implementation of the RP, Hohai University will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview:  Payment and amount of compensation fees;  Preparation and adequacy of the resettlement; housing plots;  House rebuilding;

11 Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in “Description”.

63

 Relocation of the APs;  Training;  Support for vulnerable groups;  Restoration and rebuilding of infrastructure and special facilities;  Production resettlement and restoration;  Compensation for lost properties;  Compensation for lost working hours;  Transition subsidy;  Timetables of the above activities (applicable at any time);  Resettlement organization/performance-capacity issues;  Use of compensation fees for collective land and income of APs;  Income growth of labor through employment; and  If APs have benefited from the Subproject (3) Public consultation and participation Hohai University will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. (4) Grievance redress Hohai University will visit the affected villages and groups periodically, and inquire the Feidong PMO, district (county) and township resettlement offices and implementing agencies that accept grievances about to assess grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to resolve problems quickly and make the resettlement process more effectively.

10.2.2 External Monitoring Reporting

A routine monitoring report shall at least include the followings: (I) monitoring objects of the report; (II) the progress of the resettlement; (III) main findings; (IV) main existing problems; (V) basic appraisal, comments and suggestions. The external monitoring report should include the indicators detailed in Table 10-3. Table 10-3 key indicators to be monitored Resettlement impacts and implementation Completed Planned Updated Completed Cumulative / item Actual in current (RRP) (RP) in total completion period Area Permanent (mu) 1 Land AH Acquisition AP Area Temporary (mu) 2 Land AH occupation AP Area (㎡) House 3 AH demolition AP resettlement 4 compensation (CNY)

64

Resettlement impacts and implementation Completed Planned Updated Completed Cumulative / item Actual in current (RRP) (RP) in total completion period AP’s incomes and expenditures Year 2012 2013 2014 2015 Average annual income per 1 capita (Yuan/person) Average annual expenditure per 2 capita(Yuan/person)

Hohai University will submit a monitoring or evaluation report to ADB and CLMA semiannually. See Table 10-4 for the schedule for report submission. Table 10-4 Resettlement M&E Agenda Report Date 1 Socioeconomic Baseline Survey Report Jun. 2013 2 Monitoring Report No.1 Dec. 2013 3 Monitoring Report No.2 Jun. 2014 4 Monitoring Report No.3 Dec. 2014 5 Monitoring Report No.4 Jun. 2015 6 Monitoring Report No.5 Jun. 2016

10.3 Resettlement Post-evaluation

After project implementation, the theory and methodology of post-evaluation will be applied to evaluate the Subproject’s resettlement activities on the basis of M&E to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work. The post-evaluation agency will be entrusted to prepare terms of reference for post-evaluation, establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report of the Subproject for submission to the CLMA and ADB.

65

Appendices

Appendix 1: Schematic Map of the Subproject

66

Appendix 2: Summary of Intercepting Sewers①

Temporarily Nature of Nature/ type Pipe diameter Pipe length Construction No. Component Area Starting point Ending point occupied road of land (mm) (m) method area (m³) 1 Trunk sewer Sewer line of Heyu Donghua Yanhe East Pipe jacking line of Zone Highway State- owned State- owned d500-d800 1800 0 Road Road method 3 2 Trunk sewer Sewer line of Xian’an Pipe jacking line of Zone Dianzhong State- owned Muxiu Road State- owned d1400-d1600 0 Road method 4 Highway Sewer line of Heyu Yanhe East Dianzhong State- owned State- owned d500-d600 1687 0 Highway Road Highway Sewer line of Heyu Xian’an 500 Grooving State- owned State- owned d500-d1800 2300 Zhanghua Road Highway Road method Sewer line of Heyu Xian’an Grooving State- owned State- owned d500-d1000 1200 600 Yanhe East Road Highway Road method Sewer line of Yanhe East Dianzhong Pipe jacking State- owned State- owned d1000-d1600 1200 0 Zhenxing Road Road Highway method 3 Trunk sewer Sewer line of Zhannan Pipe jacking line of Zone Dianzhong State- owned Muxiu Road State- owned d500-d1400 400 0 Road method 5 Highway

① Confirmed by PMO and DI, construction shall be completed within 14 days for each segment, and here is no significant disturbance to commercial activities adjacent to road.

67

Appendix 3: Minutes of Public Participation Meetings

Time October 12, 2011 Venue Xianfeng Community, Cuozhen Town, Feidong County Organizer Cuozhen PMO, survey team of NRCR Participants NRCR Topic Pollution of the Zhennan River, policy publicity and satisfaction, resettlement work Presently, the Zhennan River is seriously polluted and silted, and water weeds impede water flow seriously. The river emits a foul smell, affecting residents on both sides seriously. People have an urgent need for water quality improvement, support Key points and outputs the Subproject strongly, and say that they will control river pollution together with the PMO and the administrative staff in order to protect the environment and improve the quality of life. Time October 12, 2011 Venue Xuguang Village, Cuozhen Town, Feidong County Organizer Survey team of NRCR Participants NRCR Pollution of the Shibajian River, people’s perception of and attitude to river management, opinion of the APs about Topic compensation for land acquisition, and their plans for future production and lives The Shibajian River is crucial to people’s production and lives. In the past decade, its storage capacity has decreased due to silting and water weed growth, and its water quality has also degraded. People have an urgent need for water quality improvement, support the Subproject strongly, and say that they will control river pollution together with the PMO and the Key points and outputs administrative staff in order to protect the environment and improve the quality of life. Today, household income is from outside employment and other nonagricultural sources, and land acquisition will have little impact on the APs, whose income can be restored through cash compensation, crop restructuring, etc. Time October 13, 2011 Venue Meeting room of the Feidong County Development and Reform Commission

68

Organizer Feidong County Development and Reform Commission, HCCI, survey team of NRCR NRCR, Feidong County Development and Reform Commission, county land and resources bureau, civil affairs bureau, Participants labor and social security bureau, agriculture bureau and women’s federation, etc. Learning information on land and resources, agriculture, social security, poverty reduction, women’s federation and civil Topic affairs County land and resources, agriculture, social security, civil affairs, and labor and social security bureaus, poverty reduction Key points and outputs office, women’s federation, and disabled persons' federation attach great importance to the work on LEFs, and have developed a series of sound compensation rates and a social endowment insurance system. Time October 11, 2014 Venue Xuguang Village, Cuozhen Town, Feidong County Organizer Survey team of NRCR Participants NRCR Topic Resettlement progress, awareness of resettlement policies, etc. The village is affected slightly by land acquisition, with an average acquired land area of about 0.1 mu per household. Key points and outputs Villagers’ main income source is outside employment, and their reliance on agriculture is low. Cash compensation and skills training are their preferred restoration measures. Time October 11, 2014 Venue Xianfeng Community, Cuozhen Town, Feidong County Organizer Survey team of NRCR Participants NRCR Topic Resettlement progress, awareness of resettlement policies, etc. All villagers know about and support the Subproject, because it will improve the living environment. Resettlement impacts are minor. Villagers work in Hefei City, the Feidong County town, and Nanjing mainly, and their main income source is Key points and outputs outside employment. Two households are affected by house demolition, which will be resttlled in Harmonious Garden by property swap.

69

Appendix 4: Gender Analysis Form

Part A—Gender analysis of rural women in the subproject area 1. Legal rights of women According to laws of the PRC, women have equal legal rights with men, though some women are not fully aware of this. 2. Social status of women Women of the subproject area have relatively good social status. All key matters of a family are determined by the couple through discussion. Men are the backbone of families, and attend the important meetings of the village. However, women can influence men when they make decisions at meetings. 3. Title to land and Women have the same title as men. Like other parts of China, in the subproject area, when a daughter is married, her land will remain properties in her mother’s family and she can only share the land owned by her husband’s family since the household contract responsibility system was put into practice in 1982. However, if a second round of land contracting has been carried out at the affected village (around 1999), this situation has been corrected. If land acquisition, house demolition or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties 5. Living and gender role There is no restriction on gender role. However, women do housework and appropriate farm work mainly in Chinese rural areas, while men mostly do farm work or work outside. Generally, the working hours of women are 1.2 times those of men. In addition, many young women also work outside. 6. Contribution to Women’s income is from farming and household sideline operations mainly, accounting for about 25% of household income. household income 7. Family status Women have an equal voice in decision-making; when men are away for work, women make decisions themselves in many aspects. 8. Educational level Boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. 9. Health Women’s health condition is quite good and there is no significant difference in nutrition level compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village and Women are represented in all village committees. In addition, women have a good informal network in the village and the village government agencies group. Women may participate in the election of the village committee, and have the right to elect and be elected; local governments attach great importance to women’s development, especially in poverty reduction. Overall evaluation and Women enjoy a good status in the subproject area, and there is no restriction on gender role; though women seldom participate in the key risks decision-making of public affairs of the village collective, they can express their views in many ways (e.g., through male members of their families). B—Gender analysis of women during resettlement

70

Gender issue Concern/risk Impact of the Subproject Mitigation measures 1. Land, properties and right to Women are deprived of land Men and women have equal rights to compensation for land Cash compensation or compensation or properties or have no right acquisition, house demolition and resettlement; the improvement of the quality of to compensation. Subproject will not have any significantly adverse impact on remaining land, and crop women. restructuring Women’s house should be included in HH land compensation agreement. 2. House demolition and Women have no right to Women have title to houses, and house reconstruction is Women have a shared title to reconstruction make decisions or use determined jointly by all family members, so women can newly built houses. compensation fees. participate in housing site selection, house construction and transitional housing arrangement, etc. 3. Production and income Women are affected even All AHs will lose part of land only, so the AHs will lose part of (1) Women will receive restoration after land more seriously, and receive income only. Compensation fees will be used at the AHs’ compensation fees for land acquisition less assistance. discretion. Only seriously affected households have to acquisition; (2) At least 50% of change their income sources. In addition to cash trainees of skills training will be compensation, the AHs will be assisted in restoring income women; (3) During construction, through auxiliary measures (priority in employment during women will obtain at least 30% of construction, skills training and subsequent support, etc.) unskilled job opportunities. 4. Increase of gender Women have a heavier The Subproject will not lead to gender inequalities. For most Women are given equal provision inequalities burden or fewer households, resettlement impacts are not serious. Land loss or preferential treatment. Monitor opportunities. and sufficient compensation will help women change the crop results. structure (e.g., cultivating more cash crops), which will increase their income. 5. Social network system The social network is The Subproject will not affect the social network seriously. No impact damaged. 6. Impact on health / increase Serious health or social The Subproject will not affect the villages seriously, but some Providing assistance together with of social problems problems due to the stress of seriously affected households and vulnerable groups will be the civil affairs department resettlement (violence, AIDS faced with difficulties. propagation, etc.)

71

Appendix 5: Distribution and Structure of Survey Samples

Samples Household No. Township Village Group # of AHs sampling rate # of households Population (%) 1 Xianfeng Xuannan 28 11 48 50.00% 2 Community Xuandong 38 13 52 34.21% 3 Xiaojia 11 3 15 27.27% 4 Luxi 10 2 7 20.00% 5 Ludong 2 2 7 100.00% 6 Qiansheng 13 2 8 15.38% 7 Cuozhen Town Daliu 4 2 7 50.00% 8 Xuguang Village Xiaoliu 13 3 16 23.08% 9 Xiao’ou 6 3 13 50.00% 10 Tangqin 6 2 7 33.33% 11 Dingdong 6 3 10 50.00% 12 Dingxi 11 2 8 18.18% 13 Xiaohe 3 3 11 50.00% Subtotal 151 51 209 33.78%

72

Appendix 6: Provisions of Land Laws, Regulations and Policies of the PRC and Anhui

Abstract of the Land Management Law and Relevant Policies Item Key points Index The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land. Article 2 of the Land Land ownership The State introduces the system of compensated use of land owned by the State except the land has been Administration Law of the PRC allocated for use by the State according to law. Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law; …… Articles 43 and 44 of the Land Whereas occupation of land for construction purposes involves the conversion of agricultural land into land Administration Law of the PRC Application for for construction purposes, the examination and approval procedures in this regard shall be required. construction Governments at all levels shall strengthen the administration of plans for land use and exercise control of Article 13 of the Measures of land the aggregate land for construction purposes. If no planning quota for use of farmland for other purposes is Anhui Province for the available or such quota is exceeded, no additional land for construction shall be approved. Saved planning Implementation of the Land quotas for use of farmland for other purposes may be carried over to the next year after approval. Administration Law of the PRC (June 26, 2004) The acquisition of basic farmland or land exceeding 35 hectares outside the basic farmland, and other land exceeding 70 hectares shall be approved by the State Council. Article 45 of the Land Acquisition of land other than prescribed in the preceding paragraph shall be approved by the governments Administration Law of the PRC of provinces, autonomous regions and municipalities and submitted to the State Council for the record. Land acquisition The land administrative authorities of a municipal or county government shall draft a plan for use of Article 33 of the Measures of authority farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land supply plan Anhui Province for the to the municipal or county government for approval, and escalate them to governments with approval Implementation of the Land authority for approval. In case of acquisition of woodland, the consent of the woodland administrative Administration Law of the PRC authorities shall be obtained in advance. (June 26, 2004)

73

Item Key points Index For the acquisition of land by the State the local governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures. Land acquisition After the plan for land compensation and resettlement fees is finalized, related local governments shall Articles 46, 48 and 49 of the Land announcement make an announcement and hear the opinions of the rural collective economic organizations and peasants Administration Law of the PRC system whose land has been acquired. Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision. In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The Compensation resettlement fee shall be calculated according to the number of agricultural population to be resettled. The Article 47 of the Land rates for land number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated Administration Law of the PRC acquisition land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition.

74

Item Key points Index Land compensation rates for acquisition of land other than arable land: for fishponds, etc., 6 times the average output value of the preceding 3 years; for orchards, etc., 7 times the average output value of the preceding 3 years; in case of no harvest, 6 times the average output value of similar land of the preceding 3 years; for reclaimed land which has been cultivated for less than 3 years, 3-4 times the average output value of the arable land of the same village (team) of the preceding 3 years; for reclaimed land which has been cultivated for 3 years or more, the same as arable land; land used for construction collectively owned by farmers, 4-5 times the average output value of the arable land of the same village (team) of the preceding 3 years; for other land, 2-3 times the average output value of the arable land of the same village Articles 34, 35, 36 and 37 of the (team) of the preceding 3 years. The compensation rates for woodland shall be governed by the applicable Measures of Anhui Province for laws and regulations. Resettlement subsidy standard for every farmer to be resettled: for acquisition of the Implementation of the Land farmland, 3-4 times the average output value of the preceding 3 years; for land used for construction Administration Law of the PRC collectively owned by farmers, 2-3 times the average output value of the arable land of the same village (June 26, 2004) (team) of the preceding 3 years; for barren hills and slopes, no resettlement subsidy. If the farmers to be resettled are unable to maintain their former standard of living, with the approval of the provincial Government, the resettlement subsidy may be increased. However, the sum of the land compensation and the resettlement subsidy shall not exceed the following limit: (1) In case of acquisition of arable land, 30 times the average output value of the preceding 3 years of the acquired arable land; …… young crops on the acquired arable land shall be compensated for at the output value of crops of that season; for perennial crops shall be compensated for at their annual output value; no compensation shall be granted if there is no young crop. Users who use the land temporarily should use the land according to the purposes agreed upon in the Article 57 of the Land contract for the temporary use of land and should not build permanent structures. The term for the Administration Law of the PRC temporary use of land shall not usually exceed two years. Temporary land If state land or land collectively owned by farmers is to be used temporarily for project construction or Article 45 of the Measures of use geologic examination, such use shall be approved by the land administrative authorities of the local Anhui Province for the municipal or county Government; temporary land use within the urban planning area shall be approved by Implementation of the Land the urban planning administrative authorities before submission for approval. Administration Law of the PRC (June 26, 2004)

75

Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and Their Application SC [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR [2004] No.238 County-level and above local governments shall take practical measures so that the standard of living of LEFs is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground attachments and crops shall be Article 12 paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the LEFs or to Fixation of uniform AAOV rates Improvement of pay the social security expenses of farmers who lose all land due to land acquisition, governments of Determination of uniform AAOV measures for provinces, autonomous regions and municipalities directly under the central government shall approve multiples compensation an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy Fixation of integrated land prices for attains the statutory upper limit and is still insufficient to maintain the former standard of living of the land acquisition areas for land LEFs, local governments may pay a subsidy from the income from compensated use of state land. Distribution of land compensation acquisition Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. County-level and above local governments shall take specific measures to guarantee long-term livelihoods of LEFs. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Article 13 Resettlement for agricultural Within the urban planning area, local governments shall bring farmers who lose all land due to land production Proper acquisition into the urban employment system, and establish a social security system; out of the urban Resettlement by reemployment planning area, in acquiring land collectively owned by farmers, local governments shall reserve resettlement of Resettlement by dividend distribution necessary arable land or arrange appropriate jobs for LEFs within the same administrative area; farmers LEFs Non-local resettlement without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible. During land acquisition, the ownership of collective land of farmers and the right to contracted Disclosure of information on land Article 14 management of farmers’ land shall be maintained. acquisition Before acquisition is submitted for approval pursuant to law, the use, location, compensation rate and Improvement of Confirmation of land acquisition mode of resettlement of the land to be acquired shall be notified to LEFs; the survey results of the survey results land acquisition present situation of the land to be acquired shall be confirmed by rural collective economic organizations Organization of land acquisition procedures and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall hearing organize a hearing in accordance with the applicable provisions. The materials for notification to and

76

SC [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR [2004] No.238 confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved matters of land acquisition shall be disclosed unless in special cases. Article 15 If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. Disclosure of approval items of land Strengthening Governments of provinces, autonomous regions and municipalities directly under the central government acquisition shall formulate the procedures for the distribution of the land compensation within rural collective Supervision Payment of compensation and economic organizations on the principle that the land compensation is used for rural households affected over the resettlement expenses for land by land acquisition mainly. acquisition implementation Rural collective economic organizations affected by land acquisition shall disclose the receipt, Post-approval supervision and disbursement and allocation of land compensation fees to their members and accept supervision. The of land inspection of land acquisition agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of acquisition land compensation fees within rural collective economic organizations.

Abstract of the Measures of Anhui Province for the Acquisition of Collectively-owned Land Item Key points Index Rates of land reclamation costs: (1) In case of occupation of general farmland, land reclamation Article 4 of the Detailed Rules of costs shall be collected at the rate specified in the table attached hereto. (2) In case of occupation Anhui Province for the of basic farmland, land reclamation costs shall be collected at 40% beyond the above rate. If Management of the Collection Land reclamation costs farmland is occupied by any state or provincial key infrastructure construction project, land and Use of Farmland reclamation costs shall be collected at a rate not less than the lower limit of 6 yuan/m2 stipulated in Reclamation Fees (Cai Zong the Measures of Anhui Province for the Implementation of the Land Administration Law of the [2001] No.1061) PRC, unless otherwise stipulated by the State Council or the provincial government. Subjects of employment and social security for LEFs shall be identified rationally, and shall be Article 2 of the Guidelines of the Principles to be followed agricultural population losing all or most of farmland after land acquisition approved by the State Anhui Provincial Government on in promoting the Council or the provincial government according to law within urban (or town) planning areas in Doing Well in Employment and employment and social principle. Specific criteria and periods for the identification of subjects of employment and social Social Security for security of LEFs security for LEFs shall be determined by municipal and county governments based on local Land-expropriated Farmers (APG conditions. The specific procedure is as follows: An individual LEF files an application; the village [2005] No.63)

77

Item Key points Index collective economic organization members, village committee or village group shall discuss, and the township government or sub-district office shall study and disclose the list of eligible LEFs; the list shall be reviewed by the labor and social security department, and the land and resources department, and then submitted to the municipal or county government for approval. Compensation rates for land acquisition of cities and counties shall be fixed by the provincial Article 4 of the Notice of the government in a unified manner, and adjusted every two years based on state provisions and local Anhui Provincial Government on compensation rates for economic development. Each municipal government shall fix compensation rates for houses, Adjusting the Compensation land acquisition attachments and young crops on acquired land based on local conditions, and put them into Rates for Land Acquisition of practice after submission to the provincial department of land and resources for reference. These Anhui Province (APG [2012] rates shall be adjusted every two years. No.67) (May 15, 2012) Governments at all levels shall give proper employment training to LEFs carefully and strengthen Article 3 of the Notice of the financial support. LEFs that have been trained and qualified by the state for the first time shall be General Office of the Anhui subsidized with reemployment funds, and any deficiency thereof shall be disbursed from fees for Provincial Government on using state-owned land of local governments. Labor and social security, and education Forwarding the Notice of the departments at all levels shall organize social education and training agencies to give introductory General Office of the State Strengthening the and professional skills training to LEFs. Labor and social security departments shall issue Council on Forwarding the employment training of employment service cards to eligible LEFs properly, and grant subsidies for professional skills Guidelines of the Ministry of LEFs training, business start-up training and professional skills identification to LEFs who have received Labor and Social Security on employment service cards. Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)

78

Appendix 7: Policy on the Endowment Insurance for LEFs

 Feidong County Measures for the Implementation of the Endowment Insurance for Land-expropriated Farmers of Feidong County (FCG [2008] No.23)

Chapter 1 General Provisions Article 1 These Measures have been formulated in accordance with the Guidelines of the Anhui Provincial Government on Doing Well in the Employment and Social Security for Land-expropriated Farmers (APG [2005] No.63) and the Interim Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1), and based on our county’s practical situation in order to solve issues related to the endowment insurance for LEFs, and maintain social harmony and stability. Article 2 LEF referred to herein means a person of agricultural status in household registration in our country with an arable area of less than 0.3 mu or 70% of whose household contracted land has been acquired with the approval of the county or above government, attaining the full age of 16 years at the time of land acquisition, and having the right to right to a second round of contracted management of land. Article 3 The county labor and social security department is the department in charge of the endowment insurance for LEFs; the county administration center of the rural social endowment insurance fund is responsible for participation, benefit assessment and pension distribution. The county finance, land and resources, agriculture, public security and other departments shall perform their respective responsibilities and cooperate closely in the endowment insurance for LEFs.

Chapter 2 Raising of security fund Article 4 An endowment insurance fund for LEFs shall be established, consisting of a unified fund and a personal account fund. This fund shall be included in a special financial account of the county, and used specifically for the endowment insurance for LEFs. Article 5 Funding sources of the endowment insurance for LEFs: (1) 70% of land compensation fees; (2) Resettlement subsidies; (3) Interest and other value-added income on the fund; (4) Other funds available for the endowment insurance for LEFs; and (5) Funds allocated the government from transfer fees of the right to use state-owned land by When the sum of the above 4 items is insufficient for payment Article 6 3,600 yuan/person shall be transferred from the raised endowment insurance fund to the personal account, and the balance shall be transferred to the unified fund. Interest shall accrue on the personal account according to the concurrent bank interest rate of lump-sum deposit and withdrawal savings of urban and rural residents.

79

Article 7 The entity applying for land use shall pay insurance funds for LEFs to the special account of endowment insurance funds for LEFs opened by the municipal finance authorities within 90 days after issue of the official reply on land acquisition. If insurance funds for LEFs have not be paid in full, the land and resources authorities shall not go through the land supply formalities.

Chapter 3 Security benefit Article 8 Pensions for LEFs shall include basic pension and personal account pension. The basic pension shall be paid from the unified funds, and the personal pension from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. Article 9 Those effecting the endowment insurance for LEFs shall receive a pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. LEFs who have attained or exceeded the stipulated age upon land acquisition shall receive pensions for LEFs from the month following the actual time of land acquisition. Article 10 The standard of pensions for LEFs shall be 180 yuan per capita-month, including a basic pension of 150 yuan and a personal account pension of 30 yuan. For LEFs who have already received pensions in the Hefei Notice Economy Park, the standard of pensions has increased to 180 yuan per capita-month since May 2008, in which 150 yuan instead of 100 yuan is paid from the unified fund and 30 yuan instead of 20 yuan is paid from the personal account fund. The standard of pensions for LEFs shall be adjusted with the level of the minimum living guarantee for urban residents accordingly. Article 11 Personal account funds can be inherited. If the insured dies before drawing pensions, the inherited amount shall be the principal amount of his/her personal account plus interest; if the insured dies during the period of receiving pensions, the inherited amount shall be balance of the principal of his/her personal account plus interest. Article 12 LEFs approved for land acquisition from October 8, 1988 to the effective date of these Measures, and identified in accordance with the prevailing policy (excluding those having been resettled for employment or effected the urban insurance) shall be examined by township governments and submitted to the county government for approval. Those having attained the age of receiving insurance benefits shall be granted insurance benefits at 180 yuan per capita-month, and the funds needed shall be raised at the ratio of 3:1 by the county and township governments. Subjects identified by township governments shall be registered with the county administration center of the rural social endowment insurance fund by the end of December of the previous year, and turn over endowment insurance funds borne by the township governments in the previous year to the special financial account of the county at a time.

80

Article 13 LEFs are encouraged to effect the basic endowment insurance of urban workers (hereinafter referred to as “the urban insurance”). If the insured is already employed, the employer shall go through the insurance formalities for him/her, and the endowment insurance premium shall be paid by the employer and the insured jointly. For those effecting the urban insurance as freelancers, the government shall grant a social insurance subsidy of 60 yuan per capita-month for not more than 15 years. The subsidy amount shall be first paid from the personal account of endowment insurance funds for LEFs, and any deficiency shall be paid form the unified funds. Article 14 If a farmer affected by land acquisition effecting the urban insurance has made payment for 15 years or more at his/her retiring age, he/she shall be entitled to urban insurance benefits as stipulated other than pensions for LEFs. In this case, if there is any balance in the personal account of endowment insurance funds for LEFs, such balance shall be paid to the insured at a time. If a farmer affected by land acquisition effecting the urban insurance has made payment for less than 15 years at his/her retiring age, he/she shall be entitled to pensions for LEFs after refunding the social insurance subsidy already received.

Chapter 4 Handling Procedures Article 15 The handling procedures for LEFs to participate in endowment insurance are as follows: (1) Within one week of publication of the land acquisition announcement of the county government, the village (community) committee shall confirm the list of participants in the unit of household, and disclose it at village groups for one week. (2) If there is no objection, the village (community) committee shall complete the Summary Registration Table of Basic Information of LEFs, and submit it to the township government for review together with the evidentiary materials of the land acquisition agency, and disclose the list of eligible LEFs for another week. If there is no objection, the list will be submitted to the county labor and social security department. (3) The county labor and social security department shall review and confirm the list together with the county land and resources, finance, agriculture and public security departments, and submit it to the county government for approval. (4) Upon receiving a reply, the township government (park management committee) shall go through the insurance formalities with the list of participants, ID cards and household registers at the county management center of the rural social endowment fund, while the Certificate of LEF Endowment Insurance of Feidong County shall be kept by each individual. Any LEF who attains benefit receiving age shall go through the application formalities for receiving pensions with the Certificate of LEF Endowment Insurance of Feidong County at the township labor and social security office, and may receive pensions on a monthly basis with the approval of the county labor and social security department. Article 16 If any participant is deceased, a direct relative thereof shall report to the township labor and social security office timely, and go through the closing formalities

81

with the certificate of cremation or the certificate of cancellation of household registration. The county labor and social security department shall identify the eligibility of pension receivers on an annual basis.

Chapter 5 Legal liability Article 17 No entity or individual shall report or receive basic pensions for LEFs falsely; if this provision is violated, not only the corresponding amount shall be recovered pursuant to law, but also such entity or individual shall be held legally liable. Article 18 If any civil servant neglects his/her duties, abuses his/her authorities or commits malpractice in the compensation for land acquisition and the endowment insurance for LEFs, he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law.

Chapter 6 Supplementary Provisions Article 19 These Measures shall come into effect on May 1, 2008. The Notice on the Issue of the Interim Regulations on Trials of the Employment and Endowment Insurances for Land-expropriated Farmers of Feidong County issued by the county government on February 9, 2007 shall be abolished thereupon.

82

Appendix 8: Detailed Resettlement Budget

Compensation rate Item Unit Qty. Amount (‘0,000 yuan) Percentage (%) No. (yuan/unit) Compensation fees for collective land 1 acquisition 427.77 38.60 1.1 Land compensation fees mu 11340 116.758 132.40 11.95 1.2 Resettlement subsidies mu 24300 116.758 283.72 25.60 1.3 Young crop compensation fees mu 1000 116.518 11.65 1.05 2 Temporary land occupation mu 2000 55.66 11.132 1.00 Compensation fees for house 3 10.504 0.95 demolition 3.1 Residential houses 10.504 0.95 3.1.1 Masonry concrete m2 570 160 9.12 0.82 3.1.2 Moving subsidy Household 330 4 1.32 0.12 3.1.3 Transition subsidy m2-month 4 160 0.064 0.01 4 Infrastructure and attachments 59.932 5.41 4.1 Telegraph poles / / 28 4.2 Telephone poles / / 13 56.70 5.12 4.3 400V lines m / 1550 4.4 10kV lines m / 350 4.5 Miscellaneous trees / 30 914.00 2.74 0.25 4.6 Fruit trees / 50 56.00 0.28 0.03 4.7 Enclosing walls m2 40 53 0.212 0.01 Subtotal of 1-4 509.338 45.96 5 Land taxes 429.206 38.73 5.1 Fees for using new construction land mu 10000 116.758 116.758 10.54 5.2 Land reclamation costs mu 10000 116.758 116.758 10.54

83

Compensation rate Item Unit Qty. Amount (‘0,000 yuan) Percentage (%) No. (yuan/unit) 5.3 Farmland occupation tax mu 15000 116.758 175.14 15.80 4% of land 5.4 Land acquisition management costs acquisition costs 20.37 1.84 6 Survey and design costs 3% 15.28 1.38 7 Implementation management costs 5% 25.47 2.30 8 Internal M&E costs 2% 10.19 0.92 9 External M&E costs / 9.98 0.90 10 Training costs 3% 12.98 1.17 11 Contingencies 10% 90.93 8.20 12 Support fund for vulnerable groups 1% 5.09 0.46 Subtotal of 5-12 598.946 54.04 Total 1108.28 100.00

84

Appendix 9：Resettlement Information Booklet

ADB-financed Anhui Chao Lake Environmental Rehabilitation

Resettlement information Booklet of Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project

Feidong·China

November 2014

85

A.Brief Introduction of Project In order to prevent the further deterioration of the water quality of Chao Lake, and meet the needs for public health and sustainable economic development, the Asian Development Bank (ADB) plans to grant a loan of US$250 million to the PRC for the Anhui Chao Lake Environmental Rehabilitation Project, and the Subproject is one of its subprojects. The gross investment in the Subproject is 113,033,900 yuan, in which construction investment is 112,018,900 yuan. Construction funds will be raised by ADB and the subproject owner, in which the ADB loan will be US$11 million (equivalent to CNY69.3 million, at an exchange rate of 6.30) and 43,733,900 yuan will be raised by the owner. The estimated resettlement costs of the Subproject are 11.0828 million yuan (based on prices in the second half of 2014), including basic land acquisition (occupation) costs, taxes and contingencies, accounting for 9.80% of the Subproject’s budget, all from domestic counterpart funds. The construction period of the Subproject is two years, from the end of 2014 to 2015. B. Summary of Resettlement Impacts of the Subproject The main resettlement impacts of the Subproject are permanent and temporary land occupation, and the demolition of rural residential houses and business premises, involving one village and one community in Cuozhen Town, Feidong County. 116.758 mu of land will be acquired for the Subproject, all being rural collective land. 116.758 mu of collective land will be acquired for the Subproject, including 116.518 mu of cultivated land (99.79%) and 0.24 mu of housing land (0.21%); 55.66 mu of land will be occupied temporarily; total demolition area is 160 m2, 7 types of infrastructure and ground attachments and 151 households with 568 persons will be affected by the Subproject. C. Legal Framework and Policies C.1Basic Polices The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of ADB and the PRC, including:

1) ADB policies  Safeguard Policy Statement (SPS), June 2009

2) Laws, regulations and policies of the PRC  Land Administration Law of the PRC (January 1, 1999, amended on August 28, 2004)  Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources, effective from January 1, 2002)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (November 3, 2004)  Measures for the Administration of the Preliminary Examination of the Land Used for Construction Projects (Decree No.27 of the Ministry of Land

86

Resources, effective from December 1, 2004)  Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) (April 10, 2006)  Notice of the State Council on Issues Concerning the Strengthening of Land Control and Adjustment (SC [2006] No.31) (August 31, 2006)

3) Provincial and local policies  Notice of the Anhui Provincial Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (December 1, 2002)  Guidelines of the Anhui Provincial Government on Doing Well in Employment and Social Security for Land-expropriated Farmers (APG [2005] No.63)  Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (Amended) (July 1, 2004)  Measures of Anhui Province for the Arbitration of Disputes over Compensation for Land Acquisition (APGO [2004] No.101) (January 1, 2005)  Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province (APG [2012] No.67) (May 15, 2012)  Notice of the General Office of the Anhui Provincial Government on Forwarding the Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)  Notice of the General Office of the Anhui Provincial Government on Issuing the Measures for the Administration of Compensation Reserves for Land Acquisition of Anhui Province (APGO [2010] No.22) (May 4, 2010)  Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136) (June 30, 2008)  Notice of the General Office of the Hefei Municipal Government on Issuing the Measures of Hefei Municipality for the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1) (March 28, 2008)  Some Provisions of Hefei Municipality on the Acquisition of Collectively-owned Land and the Endowment Insurance for Land-expropriated Farmers (HMLR [2008] No.85) (May 1, 2008)  Administrative Measures for House Demolition of Feidong County

87

(December 8, 2009)  Implementation Plan for the Disbursement of Subsidies for Low-rent Housing of Feidong County in 2011 (March 3, 2011)  Implementation Plan for the Provision of Low-rent Housing of Feidong County in 2009 (FCGO [2010] No.56) (September 21, 2009)  Notice on Doing Well in the Implementation of Compensation Rates for Newly Acquired Land (FCGO [2010] No.29) (June 2, 2010)  Measures for the Implementation of the Endowment Insurance for Land-expropriated Farmers of Feidong County (FCG [2008] No.23) (April 30, 2008)  Implementation Plan for Farmers’ Skills Training of Feidong County (May 30, 2010)  Notice of the Hefei Municipal Government on Adjusting the Compensation Rates for Houses, Other Attachments and Young Crops on Acquired Land of Feidong County (HMG [2012] No.208) (December 31, 2012) C.2Fixation of Compensation Rates for Resettlement Impacts of the Subproject  Acquisition of Collective Land According to the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, and the Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province (APG [2012] No.67), the compensation rates for land acquisition of Cuozhen Town, Feidong County are shown in Table 1. The compensation rate for housing land is the same as that for farmland. Specific rates will be subject to adjustment with provincial policies, and such adjustments will be incorporated into the updated RP. Table 1 Compensation Multiples and Rates for Acquired Collective Land Construction land and Farmland unused land AAOV Compen Compen Re rate No. Region Area Compen sation Compen sation ma (yuan Subsidy Subsidy sation rate sation rate rks /mu) multiple multiple multiple (yuan/ multiple (yuan mu) /mu) Feidong 1 Cuozhen 1620 7 15 35640 5 6 17820 County

 Compensation for Temporary Land Occupation The land occupied temporarily for the Subproject is low-lying wasteland on which no crop is grown, and will be used for silt dumping. It has been proven by testing that silt meets the relevant criteria, and farming can be restored two years later. According to the agreement between the Feidong PMO, and Xianfeng Community and Xuguang Village, this land will be compensated for at 1,000 yuan/mu per annum (2,000 yuan for two years). See Table 2. Table 2 Compensation Rates for Temporarily Occupied Land County Land type Compensation rate for land occupied

88

temporarily for silt dump (yuan/mu-year) Feidong Non-cultivated land 1,000  Compensation Rates for House Demolition Rural residential houses The compensation rates have been fixed based on replacement cost (see Table 3). The resettlement site will be determined in consultation with the APs before house demolition. Table 3 Compensation Rates for Demolished Rural Residential Houses and Attachments Unit price Item Structural type Unit Remarks (yuan) Frame m2 810 Masonry concrete m2 570 House 2 Masonr Grade 1 m 370 compensation y tile or Grade 2 m2 340 fees Demolition timber Grade 3 m2 310 of rural Simple m2 200 residential Moving subsidy yuan/time 330 At most twice houses Based on the Other actual period of compensation yuan/m2· Transition subsidy 4 yuan transition, fees month usually not more than 18 months

 Entitlement matrix The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4.

89

Table 4 Entitlement Matrix

Type of impact Degree of impact APs Compensation and resettlement policy Measures

116.758 mu, 151 households with 568 1) 70% of land compensation fees (i.e., 7,938 yuan) Measures for land compensation including 116.518 mu persons in Xianfeng shall be used for the endowment insurance for LEFs allocation, land reallocation and and transferred directly to the special financial account of cultivated land and Community and Xuguang production investment (cultivation of the endowment insurance fund for LEFs; the 0.24 mu of housing Village, Cuozhen Town, remaining 30% (i.e., 3,402 yuan) shall be paid to the and irrigation skills, tertiary land Feidong County rural collective economic organization owning such industries, etc.) will be determined land, and a village congress shall be held to determine by the village meeting. Training will the allocation and use program; the use of this sum will be approved and supervised by the be supervised by the township government, and this government at the next higher level. sum is usually paid to the AHs in practice. 2) A sum of 3,600 yuan per capita from resettlement Permanent subsidy shall be transferred to the personal account of land acquisition each insured and paid to the special financial account of the endowment insurance fund for LEFs, and the remaining sum shall be paid to those to be resettled. 3) Compensation fees for ground attachments and young crops will be paid to their proprietors.. Seriously affected 43 households with 181 They will have priority in getting employed (during at the To be arranged by the labor and households with a persons in Xianfeng construction and operating stages), and attending social security office of Cuozhen land loss rate of over Community and Xuguang agricultural and nonagricultural skills training and Town 30% Village, Cuozhen Town, employment arranged by town government and labor Feidong County bureau. Temporary land A 55.66 mu silt dump 3 village groups of Since the land occupied temporarily is wasteland, it will Temporary land occupation will be occupation Xuguang Village be compensated for at 2,000 yuan/mu within the notified in advance supervised by

90

Type of impact Degree of impact APs Compensation and resettlement policy Measures

occupation period of two years. the local land and resources bureaus. Houses of 160 m2 will Two residential houses in The two modes of property swap and cash The two AHs prefer property swap. be demolished, all in Xianfeng Community compensation are available: The resettlement site will be masonry concrete 1. Property swap determined in consultation with structure 1) 30 m2 per capita will be granted in principle, where them. any excess size will be compensated for at replacement cost. 2) If the per capita housing size of an AH is less than 30 m2, the AH will be entitled to 30 m2 per capita through application, and any housing size applied for beyond this will be paid for at 400 yuan/m2. Demolition of 3) The price differences for property swap are as residential follows: 30 yuan/m2 for masonry concrete structure, 40 houses yuan/m2 for masonry tile or timber structure, 50 yuan/m2 for simple and other structures. 2. Cash compensation 1) The compensation rates for demolished residential houses are 810 yuan/m2 for frame structure, 570 yuan/m2 for masonry concrete structure, 370 yuan/m2 for masonry timber or tile structure (Grade 1), 340 yuan/m2 for masonry timber or tile structure (Grade 2), 310 yuan/m2 for masonry timber or tile structure (Grade 3), and 220 yuan/m2 for simple structure.

91

Type of impact Degree of impact APs Compensation and resettlement policy Measures

2) Each AH will receive a moving subsidy and a transition subsidy. / 270 females (1) Women will have priority in employment, and at least The women’s federation will provide 50（30%） of them will receive unskilled jobs; (2) acceptable education to women. Women will have priority in receiving agricultural and nonagricultural skills training; 800 men-times of training will be provided under the Subproject, in which not less than 400 men-times (50%) will be available to women; Women (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) A special FGD for women will be held to introduce resettlement policies and improve their awareness; (5) The compensation agreement must be signed by the couple. Low-income people 5 households with 9 (1) Laborers in vulnerable households will be provided Vulnerable households will be (below the national persons with occupational training, and employment information re-identified at the beginning of poverty line), and guidance in order to increase their job resettlement implementation, and five-guarantee opportunities; (2) During project construction, laborers monitored closely until the Vulnerable households, in vulnerable households will have priority in being completion of assistance measures. groups households affected employed for unskilled jobs; (3) A special support fund by disability of 1% of resettlement costs will be established in cooperation with the labor and social security department of Cuozhen Town to provide assistance; (4)

92

Type of impact Degree of impact APs Compensation and resettlement policy Measures

The Cuozhen Town Government will provide institutional preferences to vulnerable APs, such as increasing compensation rates for land acquisition and house demolition, and exempting or reducing taxes for those dealing with commerce. . 7 types, including Proprietors 1) Affected special facilities will be restored by telegraph poles and proprietors after receiving compensation from the owner Infrastructure trees of the Subproject, or reconstructed by the owner and ground according to the original size, standard and function; 2) attachments Compensation fees will be calculated and disbursed for ground attachments as stipulated. Grievances and / All APs Free; all costs so reasonably incurred will be disbursed appeals from the contingencies

93

D. Resettlement Organization In order to ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. the resettlement agencies of the Subproject have been established successively, and their responsibilities defined clearly.  Chao Lake Management Authority(CLMA)  ADB-financed Project Working Group of the Feidong County Government  Office of the ADB-financed Project Working Group of the Feidong County Government (Feidong PMO)  HCCI  Office of the ADB-financed Project Working Group of the Cuozhen Town Government (Cuozhen PMO)  Cuozhen Town Land and Resources Branch  Xianfeng Community Committee and Xuguang Village Committee  AHs  Design agency  External M&E agency: Hohai University  Other agencies: land and resources bureau, house demolition office, women’s federation, labor and social security bureau E. Grievances and Appeals Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows: Stage 1: An AP files an oral or written grievance with the community or local branch resettlement office. In case of an oral grievance, the resettlement office shall take written records and give a clear reply within two weeks. If a major issue is involved and needs instructions from the resettlement office of the next higher level, the reply from such higher resettlement office shall be obtained within two weeks. Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with the township resettlement office within one week of receipt of the above reply, and the component resettlement office shall make a disposition within 3 weeks. Stage 3: If the grievant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Feidong PMO within one month of receipt of the above disposition, and the Feidong PMO shall give a reply within 4 weeks. Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may bring a suit in a civil court within 15 days of receipt of the above reply. Each office's responsible person's name, telephone number can see table 5.

94

Table 5 responsible person's name and its telephone number Responsible The name of office Telephone number person's name Hefei Cuocheng Construction & Investment Ang yongchun 13605605093 Co., Ltd. Cuozhen Town Government Fan Yanhua 18755192030 Offices of lettes and calls of Feidong County Civil servant 0551-7711431

F. Schedule of Resettlement Implementation The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, land acquisition and house demolition, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 6.

95

Table 6 Schedule of Resettlement Activities No. Task Target Agencies responsible Time remarks 1 Information disclosure 1.1 First draft RIB 13 groups of 2 villages PMO and HCCI May 2012 completed Disclosure of the first draft RP on ADB’s 1.2 CLMA ,and ADB May 2013 completed website 2 RP and budget Approval of RP and budget (including 2.1 11.0828 million yuan Government and HCCI Dec. 2014 compensation rates) 2.2 Village-level income restoration programs 13 groups of 2 villages Village committees Dec. 2014 - 2015 Finalizing of the RP based on the detailed 2.3 / Implementing agency and PMO Nov. 2014 design 3 DMS 3.1 DMS on the 2 affected villages 2 villages HCCI Mar. – Oct. 2014 4 Compensation agreement Village-level land compensation Dec. 2014 – Mar. 4.1 13 groups of 2 villages Land and resources bureau agreement 2015 Dec. 2014 – Mar. 4.2 Household land compensation agreement 151 households Village committees 2015 Compensation agreement for house Dec. 2014 – Mar. 4.3 2 households Land and resources bureau demolition 2015 5 House reconstruction Selection and consultation of resettlement Township government, village Oct. 2014 – Mar. 5.1 2 AHs site committees and AHs 2015 Dec. 2014 – Mar. 5.2 House demolition 2 households Contractor / AHs 2015 6 Implementation of livelihood restoration measures

96

No. Task Target Agencies responsible Time remarks Distribution of land compensation fees to Township government and village Dec. 2014 – Mar. 6.1 households and land reallocation (if 2 villages collectives 2015 possible) Implementation of village-level income Dec. 2014 – Mar. 6.2 2 villages Village collectives restoration programs 2015 Township government, village Advice on income restoration, commerce Dec. 2014 – Mar. 6.3 151 AHs collectives, and labor and social and work 2015 security bureau Implementation of training program for Dec. 2014 – Sep. 6.4 151 AHs labor and social security bureau APs 2015 Confirming vulnerable households and 5 households with 9 Dec. 2014 – Sep. 6.5 Civil affairs bureau and Hefei PMO implementing assistance measures persons 2015 Hefei PMO, labor and social security Dec. 2014 – Dec. 6.6 Hiring APs at the construction stage 568 APs bureau, and contractor 2015 7 Capacity building Training of staff of HCCI, and the land and Dec. 2014 – Dec. 7.1 15 persons ADB/PPTA consultant resources bureau 2015 Training of county, township and village Hefei PMO, and land and resources 7.2 20 persons Mar. – Dec. 2015 officials bureau 8 M&E 8.1 Baseline survey As per the RP External M&E agency Dec. 2013 CLMA, Hefei PMO and implementing 8.2 Establishment of internal M&E mechanism As per the RP Nov. 2013 agency 8.3 Appointing an external M&E agency Hohai University CLMA Sep. 2013 CLMA, Hefei PMO and 8.4 Internal monitoring reporting Quarterly report From Oct. 31, 2012 implementing agency Dec. 2013 No.1 report 8.5 External monitoring reporting Semiannual report Hohai University Jun. 2014 No.2 report

97

No. Task Target Agencies responsible Time remarks Dec. 2014 No.3 report Jun. 2015 No.4 report 8.6 Post-evaluation report One report Post evaluation agency and CLMA Jun. 2016 9 Public consultation and documentation Implementing agency Ongoing 10 Grievance redress and documentation Implementing agency Ongoing 11 Disbursement of compensation fees 11.1 Disbursement to implementing agency Initial funds Dec. 2014 11.2 Disbursement to villages Most funds Implementing agency Jan. – Mar. 2015 Implementing agency and village 11.3 Disbursement to households Most funds Feb. – Apr. 2015 committees 12 Commencement of civil construction 12.1 The Subproject HCCI Dec. 2014

98