Resettlement External Monitoring Report

Project Number: 44022-023 February 2018

PRC: Guangxi Baise Integrated Urban Environment Improvement Project – Resettlement External Monitoring & Evaluation Report (No.3)

Prepared by Guangxi Guoye Project Management Consultation Company Ltd for the Baise Municipal Government and Baise Development & Investment Group Co., Ltd

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

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

Asian Development Bank: Guangxi Baise Integrated Urban Environment Improvement Project

Resettlement External Monitoring & Evaluation Report

(No.3)

Guangxi Guoye Project Management Consultation Company Ltd.

Nanning .Guangxi . China February 2018 Guangxi Guoye Project Management Consultation Company Ltd.

Independent Monitoring Staff Name Position Task Chief, responsible for technical guidance and review Liang Professor of the baseline investigation, external resettlement Suping monitoring report etc. Responsible for compiling TOR, finalizing Associate Tan Jianxin investigation table, providing technical guidance, Professor, PhD compiling reports etc. Responsible for baseline investigation, Liao Jing Postgraduate implementation progress follow-up, data collection and report compiling etc. Responsible for baseline investigation, Zhang Postgraduate implementation progress follow-up, data collection Yuqian and report compiling etc. Responsible for baseline investigation, Hu Postgraduate implementation progress follow-up, data collection Xuedan and report compiling etc. Ban Responsible for baseline investigation, Yiqin Postgraduate implementation progress follow-up, data collection and report compiling etc.

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Contents

List of Tables ...... II List of Figures ...... III 1. Introduction ...... 1 1.1 General Description of the Project ...... 1 1.1.1 Guangxi Baise Integrated Urban Environment Improvement Project ...... 1 1.2 Resettlement External Monitoring & Evaluation ...... 5 1.2.1 Range of Monitoring and Evaluation ...... 5 1.2.2 Contents of this Report...... 6 1.2.3 Procedures of Monitoring and Evaluation ...... 6 1.2.4 Methods of Monitoring and Evaluation ...... 6 2 Institutional Structure ...... 7 2.1 Relevant Institutions for Resettlement Activities ...... 7 2.2 Capacities of the implementing agencies ...... 9 2.3 Evaluation ...... 10 3. Monitoring and Evaluation on Resettlement Implementation ...... 11 3.1 Construction progress ...... 11 3.2 Resettlement Progress ...... 11 3.2.1 Acquisition of State-owned Land ...... 11 3.2.2 Acquisition of Collective Land ...... 13 3.2.3 Demolition of Citizens' Residential Houses and Resettlement ...... 14 3.2.4 Demolition of the Houses Built on Collectively Land and resettlement ...... 17 3.2.5 Demolition of Township Non-residential Houses and Resettlement ...... 21 3.2.6 Temporary Land Occupation ...... 24 3.2.7 Impacts on Ground Attachments ...... 24 3.2.8 Impacts on the vulnerable groups ...... 24 3.3 Compensation Policies and Standards for Land Acquisition and House Demolition ...... 25 3.3.1 Occupation of State-owned Land ...... 25 3.3.2 Acquisition of Collective Land ...... 25 3.3.3 House Demolition ...... 28 3.3.4 Temporary Land Occupation ...... 34 3.3.5 Vulnerable Groups ...... 34 3.4 Resettlement Funds and Payment ...... 34 3.5 Resettlement and Development Plan for Ethnic Minorities ...... 35 3.6 Evaluation ...... 39 4. Public Participation and Grievance Redress ...... 40 4.1 Public Participation...... 40 4.2 Complaints and grievances...... 40 5. Findings and Suggestions ...... 42 5.1 Findings ...... 42 5.2 Suggestions ...... 43

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List of Tables

Table 1-1 Construction Scope of River Rehabilitation Subproject ...... 2 Table 1-2 Construction Scope of Road Network and Infrastructure Subproject ...... 3 Table 2-1 Staffing Arrangement of Resettlement Institutions at All Levels ...... 9 Table 3-1 Progress of Demolition of Township Non-Residential Houses and Resettlement under T-C01 Subproject ...... 22 Table 3-2 Standard Land Price for State-owned Land ...... 25 Table 3-3 Standard Compensation Prices for Demolition of Rural Residential Houses ...... 29 Table 3-4 Compensation and Resettlement Scheme for Baise Integrated Urban Environment Improvement Project ...... 31 Table 3-5 Compensation Standards for Temporary Land Occupation ...... 34 Table 3-6 Resettlement and Development Plan for Ethnic Minorities ...... 37 Table 4-1 Resettlement Complaints and Grievances Channels ...... 41

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List of Figures

Figure 1-1 Sketch Map of River Rehabilitation Subproject ...... 2 Figure 1-2 Road Network in Dongsun Area ...... 3 Figure1-3 Sketch Map for Community Development and Upgrading ...... 5 Figure 2-1 Resettlement Institutional Arrangement ...... 10 Figure 3-1 Consultation on Status of Land Acquisition and House Demolition in Baise Land Reserves Bureau ...... 12 Figure 3-2 House Demolition of Guangxi Jiayi Paper Mill ...... 12 Figure 3-3 & 4 Baise Mineral Group ...... 13 Figure 3-5 Consultation with Baise Urban Construction Office ...... 14 Figure 3-6 100 Households of Residential Building of Guangxi Jiayi Paper Mill . 15 Figure 3-7 30 Households of Residential Building of Baise Mineral Group ...... 15 Figure 3-8 21 Households of Residential Houses of Electrical Machinery Factory ...... 16 Figure 3-9 7 Households of Residential Building of Dongsun Police Office ...... 16 Figure 3-10 & 11 6 Households of Residential Building of Dongsun Post Office . 17 Figure 3-12 Comments on Selection of Relocating Sites for Dongsun Road Improvement Project ...... 18 Figure 3-13 The Red Line Map of Relocating Sites for Dongsun Road Improvement Project ...... 19 Figure 3-14 Visit on the Relocating Sites ...... 19 Figure 3 - 15 & 16 &17 Self-built Buildings on Collective Land of 35 Households Affected by Demolition ...... 20 Figure 3-18 Staff Self-built Buildings of 21 Households of Baise Mineral Group .. 21 From Figure 3-19 to Figure 3-25, February 27, 2018. Land Acquisition Agreement of No.4 Residents’ Group in Dongsun Community ...... 28 Figure 3-26 Evidences of Payment of Land Compensation through Consultation by External Monitoring Team ...... 35 Figure 3-27 Procedures for Payment of Resettlement Funds ...... 35 Figure 4-1 Petition Offices of Discipline Inspection Commission and the LA Office of Youjiang District ...... 41

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1 Introduction

1.1 General Description of the Project 1.1.1 Guangxi Baise Integrated Urban Environment Improvement Project Guangxi Baise Integrated Urban Environment Improvement Project is located in Dongsun Area in the downtown of Baise City. The planned area is approximately 3 km2. The Project targets to control the environmental pollution, improve the environmental condition, upgrade the flood control capacity and improve the traffic and transportation system of Dongsun Area. It will substantially improve the living environment of the local people and facilitate the local social and economic development in a healthy way. The Project consists of three subprojects, respectively river rehabilitation subproject, road network and urban infrastructure construction subproject and community development and rehabilitation subproject. (1) River Rehabilitation Subproject The River Rehabilitation Subproject consists of the integrated rehabilitation respectively for left-bank of Youjiang River and Dongsun River. The total investment of the rehabilitation of left-bank of Youjiang River is RMB 85.77 million, mainly along 4200m of river bank of the left-bank of Youjiang river, covering construction of 3200m of bank protection, 17 river-steps, 8 drainage culverts, 9 service rooms of total 3514.65 ㎡, as well as pavement works, planting pools, retaining wall, landscape wall, basketball court, rainbow bridge, swimming pool, bicycle sheds, landscaping, wooden platforms, wooden footway etc. The construction contents of rehabilitation of Dongsun River mainly include 3967m of river dredging and widening, river bank landscaping and flood-control channel. Through implementation of the River Rehabilitation Subproject (river dredging, dyke construction and bank protection etc.), which covers river bank landscaping and ecological construction, integrated water environment improvement, preservation of aquatic life and construction water-side landscaping belt etc., the project will improve the flood control and the self-purifying capacities of the river, and thus secure the quality of source of drinking water and the downstream area, ultimately build a resource-efficient and environmentally friendly society and promote the economic development of Baise City.

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Figure 1-1 Sketch Map of River Rehabilitation Subproject

Table 1-1 Construction Scope of River Rehabilitation Subproject Total Contract Components investment S/L Construction Scope No. Name (RMB 10,000 Mainly including: along 4200m of river bank of the left-bank of Youjiang river, covering construction of 3200m of bank protection, 17 river-steps, 8 drainage Dyke culverts, 9 service rooms of total 3514.65 ㎡, as well 1 R-C01 rehabilitation of 8577 as pavement works, planting pools, retaining wall, Youjiang River landscape wall, basketball court, rainbow bridge, swimming pool, bicycle sheds, landscaping, wooden platforms, wooden footway etc. Mainly including 3967m of river dredging and Dongsun ditch 2 R-C02 - widening, river bank landscaping and flood-control rehabilitation channel.

(2) Road Network and Urban Infrastructure Construction Subproject This subproject consists of road construction and landscaping, water supply, drainage pipelines, wastewater treatment plant and the general bus terminal station. It is divided into 4 contract packages, respectively T-C01 (Dongsun Rd. Dongsun bridge); T-C02 (No.2 planned Rd., No.2 planned bridge, No.7, 18, 19 planned roads); T-C03 (No.3, No.4, No.20 planned roads, planned bridge for No.3 road, planned bridge for No.20 road and Linyin bridge); T-C04 (bus terminal station). The road network of Dongsun area has the outstanding function of traffic and social economic development, which symbolizes the development level of road network of Baise City. Construction of road network and infrastructure in this area will greatly improve and beautify the ecological and traffic environment and meet with the development requirement of the neighboring areas, thus achieve the target of

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Guangxi Guoye Project Management Consultation Company Ltd. building a high-quality and good-image city. Such will also play an irreplaceable role in facilitating the all-round social economic sustainable development, accelerating the construction of well-off society and modernization and building a harmonious socialist society.

Figure 1-2 Road Network in Dongsun Area Table 1-2 Construction Scope of Road Network and Infrastructure Subproject Total Contract Components investment S/L Construction Scope No. Name (RMB 10,000 This subproject is located in Dongsun area, running west-east, the road design starts at G323 from west Dongsun area, AK 0+000, crossing No.7, 18, 19, 2, Dongsun 3, 4 planned roads, ends at AK 2+560, totally 2.56 road, km. This road is designed as urban trunk road, with Dongsun road 40m of road boundary line, designed speed 50km/h. 1 T-C01 bridge, 30225 There is a bridge at AK 1+603 of 108m in length, demolition of 4×25m prefabricated pre-stressed concrete, first with existing simple support then small continuous box girder. bridge The construction contents are: road, bridge and culvert, water supply and sewage, traffic, landscaping, lighting, power supply, integrated weak-current pipeline etc. No.2 planned Mainly covers No.2 planned road, No.7 planned Rd., No.2 road, No.18 planned road, No.19 planned road, the 2 T-C02 planned 23513 construction contents are: road, bridge and culvert, bridge, No.7, water supply and sewage, traffic, landscaping, 18, 19 lighting. The total length of the 4 roads is 3111m,

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planned roads. respectively 1810m for No.2 planned road, 980m for No.7 planned road, 140m for No.18 planned road and 181m for No.19 planned road. Of which, there are two bridges in No.2 planned road, respectively at BK 0+870 middle bridge and GK 0+030 culvert. The designed width of No.2 planned road is 28/25.5/22.5m, while that for No.18 and No.19 planned roads is 18m. Mainly covers No.3, No.4, No.20 planned roads, planned bridge for No.3 road, planned bridge for No.3, No.4, No.20 road, Linyin bridge, the construction No.20 contents are: road, bridge and culvert, water supply, planned roads, drainage (storm and sewage), traffic, landscaping, planned lighting. The total length of the three roads is bridge for 2266m, respectively 1325m for Section A of No.3 3 T-C03 17549 No.3 road, planned road, with one 83m in length middle bridge; planned 786m for No.4 planned road, with a 98m in length bridge for middle bridge; 155m for No.20 planned road, with a No.20 road, 37m in length middle bridge. The design red-line Linyin bridge width of No.3 planned road is 18m, that for No.4 planned road is 25.5/18m; that for No.20 planned road is 18m. Bus terminal Construction of a bus terminal station of 1500 ㎡ 4 T-C04 station land area and 167.27 ㎡ of building.

(3) Community development and upgrading This subproject consists of 3 contract packages, respectively C-C01 (community center, agricultural market), C-C02 (solid waste transfer station), C-E01 (procurement of equipment and goods for solid waste transfer station). For C-C01, the it occupies 500 ㎡ of land, with construction of 850 ㎡ of community center and 1500 ㎡ agricultural market. For C-C02, it occupies 1500 ㎡ of land, with the construction of 582 ㎡ of solid waste transfer station. For C-E01, the procurement covers the equipment for transfer and treatment of solid wastes of the transfer station. It occupies 1500 m2 of land, ㎡ the the construction area is 3000m2 of bus terminal. Community plays an increasingly important role in the construction and administration in urban development. It is the inevitable requirement in meeting the demand of community economic development and people's life as well building a harmonious society to speed up the street community building, perfect the community infrastructure and service functions.

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Figure1-3 Sketch Map for Community Development and Upgrading

1.2 Resettlement External Monitoring & Evaluation The resettlement external monitoring and evaluation of the Project is conducted by Guangxi Guoye Project Management Consultation Co. Ltd, and the activities are arranged according to the progress of the Project. According to the Project Agreement and MOUs, from February 2017, Guangxi Guoye Project Management Consultation Co. Ltd. is required to compile the external monitoring and evaluation report on semi-annual basis, and submit to the Baise PMO, the IA and ADB. This report is the No.3 resettlement external monitoring report, which covers the resettlement activities of the reporting period from September 1 , 2017 to February 28, 2018, including the resettlement implementation, information disclosure, grievance redressing, existing problems and curative measures etc. 1.2.1 Range of Monitoring and Evaluation (1) In the road network and infrastructure subproject, Contract T-C01 has retrieved the preparatory construction works for bridge and road subgrade from August 2017, and some construction sites have been handed over for construction activities due to the progress of land acquisition and house demolition; No actual construction activities for Contract T-C02, T-C03 and T-C04 have been made, while the activities of land acquisition and house demolition are undergoing, of which, the demolition and resettlement of state-owned institutions have no progress. (2) In the river rehabilitation subproject, Contract R-C01 and Contract R-C02 are under the

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Guangxi Guoye Project Management Consultation Company Ltd. bidding process, and by now the acquisition of the collective land within ROW has been completed. (3) In the community development subproject, the land acquisition and house demolition are undergoing, and so no construction activities for the three contracts have begun. Of which, the acquisition of the resettlement sites under Contract C-C01 is undergoing but not completed. Therefore, the monitoring and evaluation of this report only covers two subprojects, i.e. Contract T-C01 of Dongsun road, Dongsun road bridge and demolition of old bridge, as well Contract R-C01 and Contract R-C02 under river rehabilitation. 1.2.2 Contents of this Report This report is the No.3 external monitoring report of the Project, which summarizes the resettlement activities of T-C01 (Dongsun road, Dongsun bridge, demolition of existing bridge) and R-C01 and R-C02 (river rehabilitation) as of February 28, 2018 (reporting period September 1, 2017 - February 28, 2018), including finding out the existing problems and propose necessary curative measures. Such resettlement activities include institutional arrangements, resettlement procedures, resettlement policies compensation standards, resettlement implementation progress, compensation payment, resettlement status, public participation, grievances redressing etc. 1.2.3 Procedures of Monitoring and Evaluation ➢ Prepare TOR external monitoring and evaluation ➢ Design the sampling method. ➢ Baseline investigation ➢ Establish monitoring evaluation information system. ➢ Information sorting ➢ Compile monitoring evaluation report 1.2.4 Methods of Monitoring and Evaluation Documents. Consult and verify, with respect to land acquisition and house demolition, the relevant formalities, agreements, statistics, reports, announcements, resettlement internal monitoring reports, project progress reports etc.

Consultation with key persons. Interview the resettlement responsible persons of the IA, the local government officials responsible for resettlement, members of villagers' committees of affected villages, affected households etc.

Consultation meetings. In each village affected, organize consultation meetings with participants from land acquisition and house demolition implementing agencies, responsible persons of substreets or townships, villagers' committees, APs etc. so as to further to know about the situation of land acquisition, house demolition and resettlement. 6

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2 Institutional Structure

2.1 Relevant Institutions for Resettlement Activities In order to ensure the smooth implementation of Guangxi Baise Integrated Urban Environment Improvement Project, Baise Municipal Government has established a series of top-down resettlement implementation institutions, from the Municipal Government to the local government of project area, the land resources and construction departments, the IA and even the local communities etc., to be responsible for the planning, management, implementation and monitoring of all resettlement activities of the Project. The resettlement institutions of the Project are: ➢ The Steering Group for ADB-Financed Project of Baise Municipal Government：To be responsible for the decision making and leadership relevant to the Project.。 ➢ The Project Management Office of Integrated Environment Improvement in Dongsun Area of Baise City (in GBDIGC) (1) Engage the resettlement consulting agency to prepare necessary activities for resettlement. (2) To be responsible for coordination between the resettlement consulting agency and other relevant institutions. (3) Coordinate the project construction and the progress of resettlement implementation. (4) Report the resettlement funds utilization plan to the higher authorities and supervise the payment. (5) Coordinate the daily activities of the relevant resettlement institutions. (6) To be responsible for mobilizing funds for resettlement of the subproject. (7) To be responsible for payment of resettlement funds. (8) To be responsible for the implementation of resettlement of the subproject. (9) To be responsible for monitor and supervise the payment of resettlement funds. (10) To be responsible for handling with the grievance redress related to resettlement. (11) To be responsible for cooperating with the resettlement external monitoring agency. (12) To be responsible for collecting and sorting all documents and information necessary for the internal monitoring report. 7

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(13) To be responsible for the management of resettlement archives. (14) Provide with necessary trainings for the responsible resettlement persons. ➢ Project Resettlement Office (Members from GBDIGC, Land Resources Bureau of Youjiang District, LA Office of Youjiang District): (1) Work with the resettlement consulting agency to prepare necessary resettlement activities. (2) To be responsible for working out all necessary implementation policies for resettlement plan. (3) Report the resettlement progress to the Steering Group of the Municipal Government . (4) Report the resettlement progress to the Steering Group of the Municipal Government . (5) Report the resettlement funds utilization plan to the Steering Group of the Municipal Government and monitor the payment. (6) To be responsible for the management of resettlement archives. (7) To be responsible for resettlement internal monitoring. (8) Working with the ADB resettlement specialists during the preparation and implementation periods. (9) Handle with the grievance redress related to resettlement. (10) Coordinate with the external resettlement monitoring agency during implementation. (11) To be responsible for the construction of resettlement sites. (12) To be responsible for putting in place of the employment measures for the APs. Guangxi Baise Development Investment Group: The Project Implementing Agency (IA). The Company is responsible for implementing land acquisition, house demolition and resettlement according to the resettlement plan approved by ADB, mobilizing funds and all kinds of resources to make timely payment of the compensation for the APs, and assisting the concerned villages and groups in land acquisition. In addition, it is also responsible for undertaking the internal monitoring for resettlement activities, reporting the latest situation of land acquisition and resettlement to Baise PMO, and coordinating in resolving all problems arising from implementation. Guangxi Guoye Project Management Consultation Co. Ltd.: The external

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Guangxi Guoye Project Management Consultation Company Ltd. monitoring agency. The Company is responsible for providing consultation and technical guidance for resettlement implementation, conducting external monitoring and evaluation of the land acquisition and resettlement, and submitting monitoring reports regularly to Baise PMO, the IA and ADB. 2.2 Capacities of the implementing agencies

According to the requirement of all resettlement activities, the resettlement implementing agencies at all levels have engaged necessary staff as shown in Table 2-1. Table 2-1 Staffing Arrangement of Resettlement Institutions at All Levels

Name of institutions Persons (nos) Staff Structure

The Steering Group for ADB-Financed Project of 5 Government officials Baise Municipal Government The Office of Steering Group for ADB-Financed Government officials, 7 Project of Baise Municipal Government technical staff Guangxi Baise Development Investment Group 5 Technical staff Co.

Land Resources Bureau of Youjiang District, Baise 6 Government officials

Baise Land Acquisition and House Demolition 8 Government officials Office

Baicheng subdistrict office 4～6 Cadre

Dongsun community 4～6 Cadre

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The Steering Group for ADB-Financed Project of Baise

Baise PMO (in Baise DRC)

Internal Resettlement office Guangxi Guoye Project monitoring (Members from Guangxi Baise Management Development Investment Group, Land Consultation Company Resources Bureau of Youjiang District, Ltd. LA Office of Youjiang District)

Baicheng Dongsun Substreet / Dongsun Community

Affected Affected Affected Owners of Land Village persons Institution Attachments

Figure 2-1 Resettlement Institutional Arrangement

2.3 Evaluation

The resettlement implementation agency of the Project is relatively busy. The IAs, land acquisition and demolition office, PMO and other units are affected by the tasks of various projects. The workload is heavy, the pressure is high, and the number of staffing is limited. The personnel of the PMO and the land acquisition office are transferred and adjusted. Although the resettlement organization is relatively complete and has defined the tasks of the agencies at various levels, due to inadequate work matching, the new personnel would need some time to be familiar with their duties and responsibilities. However, this period is critical for the resettlement activities, which somehow affects the resettlement implementation progress of the Project.

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3. Monitoring and Evaluation on Resettlement Implementation

3.1 Construction progress Road network and infrastructure subproject: Contract T-C01 of Dongsun road has completed the bidding process for construction contractor and construction supervisor, i.e. The construction contractor is Jiangxi Geological Engineering (Group) Co., and the construction supervisor is Guangxi Bagui Engineering Consultants Co. Ltd. This Contract was started in June 2016, and by now in Dongsun bridge, the Contract has completed the foundation works of 14 piles, reinforcement preparation works of No.2 pile foundation. In terms of disbursement, the Contract has received the first payment (advance) of RMB18.54 million, including RMB14.83 million of ADB loan. Due to the problem of land acquisition, the construction of the Contract was suspended during the period from September 2016 to July 2017, and was retrieved in August 2017 for the construction preparation of road subgrade and bridge construction. Due to the slow progress of land acquisition and house demolition, which could not provide with continuous construction sites for construction, as of February 28, 2018, the Contract was still suspended. The River rehabilitation subproject: The preliminary work, namely “treatment of black and odorous water” has already begun. By now, the sludge of the river bed have been dredged, and thus construction of waste water treatment station and greening will be conducted in the next stage. 3.2 Resettlement Progress 3.2.1 Acquisition of State-owned Land According to the RP, Dongsun road. Dongsun bridge and old bridge demolition contract (T-C01) will occupy 112.06 mu of state-owned land, of which, 26.95 mu of state-owned industrial land and 40.92 mu of residential land. The river rehabilitation subproject will not occupy state-owned land. The state-owned land to be acquired is used as the resettlement site. The acquisition of state-owned land within the range of land use of the Project involves about 20 state-owned units and enterprises. As of February 28, 2018, totally 64.1 mu of state-owned land had been acquired for Dongsun Road, Dongsun Road Bridge and the old bridge demolition contract (T-C01) (Guangxi Jiayi Paper Mill). And 62.63 mu of state-owned land is required to be requisitioned for resettlement. Land acquisition has not yet been completed. The main reasons are: the issue of compensation for the land attachments of the 34.75 mu of resettlement sites approved in 2016 has not be resolved, and so the land acquisition has not been completed yet. In the next stage, the government of Youjiang District intends to take legal measures to solve this problem and expedite the progress of land acquisition. Within the construction redline, about 121 mu of state-owned land of Baise Mineral Group has not been acquired, which requires a leading institution to coordinate the LA

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Guangxi Guoye Project Management Consultation Company Ltd. institutions or working group to launch the land acquisition process with the Company.

Figure 3-1 Consultation on Status of Land Acquisition and House Demolition in Baise Land Reserves Bureau

Figure 3-2 House Demolition of Guangxi Jiayi Paper Mill

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Figure 3-3 & 4 Baise Mineral Group 3.2.2 Acquisition of Collective Land The LA Office of Land Resources Administration Bureau of Youjiang District is responsible for acquisition of collective land. According to the RP, T-C01 subproject (Dongsun road, Dongsun bridge& demolition of existing bridge) needs to require 173.02 mu of collective land, respectively 116.20 mu of forest land and 56.83 mu of construction land. The collective land required by the subproject belong to those collective land of village groups, without direct impacts on APs. The river rehabilitation subproject needs to acquire totally 312.61 mu of collective land, including 17.56 mu of forest land, 23.27 mu of public construction land, 84.96 mu of non-irrigated land, 86.42 mu of vegetable land and 100.4 mu of idle land, directly affecting 187 households with 650 persons. As of February 28, 2018, totally 157.6792 mu of collectively had been acquired, respectively: (i) T-C01 subproject acquired 17.3204 mu and 35.405 mu of collective land respectively from Dongsun No.4 Group and No.5 Group, and the compensations had been paid to the village groups and will be further distributed after the villagers’ representatives meetings; (ii) R-C01 subproject acquired 16.2458 mu and 88.7080 mu respectively from Dongsun No.2 Group and No.4 Group, and the compensations had been paid to the village groups and will be further distributed after the villagers’ representatives meetings. Currently, there are still some disputes on land boundaries between Dongsun No.2 Group, No.3 Group and the Thermal Power Plant, which are under coordination by the relevant land acquisition department. Some villagers demanded the government further acquire their remaining land. However, due to the lack of clear source of funds for this purpose, the acquisition could not be completed. Currently, Youjiang District Resettlement Working Group is actively coordinating this issue. In addition, due to the change of the head of some village groups, the progress of signing the land acquisition agreement was affected.

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Figure 3-5 Consultation with Baise Urban Construction Office 3.2.3 Demolition of Citizens' Residential Houses and Resettlement According to the original RP, the displaced township citizens by the Project will be relocated in the resettlement houses northern to Huaxin Power Plan. The housing resettlement of this Project involves the provision and deployment of housing reform houses, self-fund raising houses and commercial houses. As of February 28, 2018, the Resettlement Office had preliminarily selected five residential areas, totally over 1700 apartments, as the sources of resettlement houses for this Project, respectively in Chengshi Garden (282 apartments), Xiangmihu Lake (144 apartments), Block A (471 apartments) and Block B (788 apartments) of Guang’an Park. These apartments are adequate to relocate the displaced households of the Project. At the current stage, the drawings for the area to be expropriated have been completed, and the on-site survey and evaluation of ground attachments have been also completed. According to the data provided by the IA, the citizens’ residential houses to be demolished by T-C01 subproject and the river rehabilitation subproject are: 100 households, dormitory building of Guangxi Jiayi Paper Mill; 1 dormitory building of Baise Nitrogenous Fertilizer Factory (red-brick buildings built in 60’s and 70’s of the last century); 30 households, residential building of Baise Mineral Group; 21 households, residential houses of Electrical Machinery Factory of Baise Mining Bureau; 1 residential building of mix-structure of Baise BaiseCheyuan Repair Factory; 7 households, residential building of Dongsun Police Office of Youjiang Sub-bureau of Baise Public Security Bureau (including: 5 of housing reform, 2 without land and house certificates); 3 households, housing reform 231.44 m2), Baise Sugar, Tobacco & Wine Co. Ltd.,; 6 households, residential

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Guangxi Guoye Project Management Consultation Company Ltd. building, Dongsun Post Office of (without land and house certificates). According to an on-site visit by an external monitoring team, most residents are very supportive of this Project. As long as the resettlement housing is implemented, they will actively cooperate with the Project in land acquisition and house demolition.

Figure 3-6 100 Households of Residential Building of Guangxi Jiayi Paper Mill

Figure 3-7 30 Households of Residential Building of Baise Mineral Group

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Figure 3-8 21 Households of Residential Houses of Electrical Machinery Factory

Figure 3-9 7 Households of Residential Building of Dongsun Police Office

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Figure 3-10 & 11 6 Households of Residential Building of Dongsun Post Office

3.2.4 Demolition of the Houses Built on Collectively Land and Resettlement According to the RP, the T-C01 subproject of Dongsun road, Dongsun bridge and old bridge demolition needs to demolish 8117.73 ㎡ of houses on collective land, respectively 5490.04 ㎡ of brick concrete structure，1244.22 ㎡ of brick-wood structure，1383.47 ㎡ of simple structure, directly affecting 33 households with 119 persons, of which 94 persons belong to Zhuang. According to the site verification by the external monitoring team in the No.1

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Guangxi Guoye Project Management Consultation Company Ltd. reporting period, the Urban Planning Commission agreed via No.1 Meeting of 2016 that the land C-29-01 in Dongsun area will be used as the relocating site for the displaced people affected by land acquisition and house demolition in Dongsun area. The relocating site needed for Dongsun road improvement project shall be arranged in a unified way within this land block (as shown in Figure 3-12, Figure 3-13). By now, the redline map has been completed, with a proposed land use area of about 34.75 mu. It was found that, the IA has formulated two compensation options for resettlement based on the relevant policies and the urban planning of Baise City, respectively house-site reconstruction and monetary compensation. For such, the Municipal Government has issued Approval of Resettlement Schemes on House Demolition for Dongsun Road Improvement Project of Baise City (Ref. BZH[2015]229) to guide the process of relocating resettlement. The relocating resettlement site is located in the northwest of Dongsun area, adopting the method of "one household one building", unified planning and self-construction. Within the specified time, those APs who signed the demolition agreement first would have the priority in choosing house site. The demolition of the houses are compensated as per the evaluated replacement cost. The amount of compensation for the APs are determined based on the market evaluation (excluding house site compensation), which shall be used by the APs to build the new houses on the relocating site assigned by the government according to the unified planning. The IA is responsible for providing infrastructure for the relocating sites such as power supply, water supply, road, land leveling, drainage and sewage etc. The APs are required to build the houses by themselves within the specified period according to the unified planning and requirements.

Figure 3-12 Comments on Selection of Relocating Sites for Dongsun Road Improvement Project

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Figure 3-13 The Red Line Map of Relocating Sites for Dongsun Road Improvement Project

Figure 3-14 Visit on the Relocating Sites

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According to the site investigation and measurement, as of 28 February 2018, the selected 34.75 mu of relocating site was found to be unable to resettle the displaced households, and thus additional relocating site is needed. By now the boundary line map has been determined, approximately 30mu, and the scheme for land reservation has not been submitted to the government for approval, for which, Baise Land Reserves Center is currently expediting the approving process. The acquisition of resettlement sites has not been completed due to the problem of compensation for ground attachments. Although the land ownership certificate for the 34.75 mu of resettlement sites was registered in the name of Baise Nitrogenous Fertilizer Factory, however, the land actually belongs to Baise Electric Power Company who has leased out the land to Baise Renhe Scientific Cement Products Factory for many years. In 2017, Baise Electric Power Company cooperated with the Project and noticed the company to demolish the ground attachments. The company agreed to cooperate with the Project, however required the government to make a total compensation of about RMB 6 million for the ground attachments. Now, the government intends to resolve the problem via legal approach. Houses on the collective land needed to be demolished by T-C01 and river rehabilitation subprojects are: villager’s self-built buildings of 35 households, staff self-built buildings of 21 households of Baise Mineral Group. According to the survey by the external monitoring team, the 35 village households will actively cooperate in house demolition if the relocating sites are resolved and the compensation rates are reasonable. However, the 21 households of Baise Mineral Group are not satisfied with the proposed relocating site and hope to re-plan the relocating site. The LA working group intends to further consult the resettlement willingness of the APs and negotiate the new resettlement scheme.

Figure 3 - 15 & 16 &17 Self-built Buildings on Collective Land of 35 Households Affected by Demolition

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Figure 3-18 Staff Self-built Buildings of 21 Households of Baise Mineral Group 3.2.5 Demolition of Township Non-residential Houses and Resettlement According to the RP, T-C01 subproject will involve 17 enterprises and units, demolish 18534.62 ㎡ of houses, respectively 6114.72 ㎡ of brick concrete structure, 2994.55 ㎡ of brick-wood structure, 7727.2 ㎡ of steel structure and 1698.15 ㎡ of simple structure. The river rehabilitation subproject has no demolition of non-residential houses in towns. According to the external monitoring, as of February 28, 2018, the T-C01 subproject needs to resettle about 20 enterprises and institutions, respectively Qinzhou Prison, Sinopec Baise Branch, Baise Nitrogenous Fertilizer Factory, GuangYijia Paper Mill, Baise Mineral Group, Electrical Machinery Factory (already acquired by Baise Mineral Group), Baise Hengjian Foods Industrial Company Group,, Dongsun Police Station, Baise Sugar, Tobacco & Wine Co. Ltd., Dongsun Post Office, Baise Xinhua Bookstore, Baise Zhongxing Agricultural and Sideline Products Co. Ltd., , Dongsun Tax Office of Youjiang Tax Bureau, Education Bureau of Youjiang District. etc. At the current stage, the acquisition and demolition of the factory buildings of Yijia Paper Mill has been completed, and the demolition of the other township non-residential houses are not completed. The reasons are shown in Table 3-1.

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Table 3-1 Progress of Demolition of Township Non-Residential Houses and Resettlement under T-C01 Subproject Units Impacts Existing Problems The leasing period for the tenants of Qinzhou Qinzhou Prison (former Car-washing station etc. structures Prison is still valid, and Baise Prison) within the 6.33 mu of land needed the demolition of ground attachments face some difficulties. Sinopec Baise Branch Remove of 1 advertising board Not yet removed (Dongsun Gas station) The enterprise was bankrupted. Hope the Baise Nitrogenous Fertilizer 1 row of brick-wood one-storied government acquire all Factory house, 1 four-storied office building their land and houses Under negotiation with the government Guangxi Jiayi Paper Mill Activities of land acquisition and house demolition Baise Mineral Group: workers hospital, former estate building, guard Due to the house room, CCP office building, as well as building of the workers transformer, water and electricity have not been relocated, supply facilities, cement road, green the buildings involved belt, ecological parking site, stainless could not be demolished. steel (brick) fence, retaining wall, trees etc. Baise Mineral Group, Involve staff dormitory Electrical Machinery Electrical Machinery Factory: of 21 households, Factory buildings in production living areas, including 13 households power distribution room, gate, parking of living difficulty who shelter, as well as transformer, water hope that the government and electricity supply facilities, cement could provide transition road, green belt, ecological parking housing. Currently under site, stainless steel (brick) fence, negotiation. These retaining wall, trees etc. buildings could not be demolished. Baise Hengjian Foods Industrial Company Group 2 brick-wood building, 1 1 household needs to (Dongsun Foods Station of brick-concrete building solve the hosing problem Baise Foods Company) There is 1 five-storied office building Needs temporary office Dongsun Police Station, on the land of the Factory but not for transition before Youjiang Branch of Basie covered by the land ownership acquisition Under Public Security Bureau certificate coordination by the

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government. Baise Sugar, Tobacco & 1 row of brick-tile house, totally 11 Needs to provide sources Wine Co. Ltd. rooms of resettlement houses by Dongsun Post Office 1 row of one-storied store building the municipal housing Baise Xinhua Bookstore 1 brick-wood building bureau to the affected Baise Zhongxing institutions, enterprises 2 brick-tile rooms, 2 two-storied Agricultural and Sideline and the higher brick-concrete buildings Products Co. Ltd. authorities, and the LA Office organize baseline investigation and acquire the comments and willingness of the Dongsun Tax Office 1 two-storied brick concrete building displaced people. Then, demolition can be started. Currently under coordination by the PMO and the IA. Education Bureau of Youjiang District (former Primary School of the 3 Brick-tile buildings Electrical Machinery Factory Mapping survey for the Guangxi Youjiang Water houses and ground Conservancy Development 1 two-storied building, 1200m2 of attachments not done, Co. Ltd. (Baise Xinsheng steel-frame tin factory building, 1 and so the evaluating Stainless Steel Pipe two-storied building of 80m2. company has not started Factory) the evaluating activities Hanfu Cement Products thereof. 1 Simple shelter Store of Youjiang District Baise Tianhe Machinery and Hardwares Processing 1 simple shelter, 1 steel-frame shelter Factory 3 steel-frame house and 1 fence wall Baise Hengli Doors Factory Acquired by another project The impacts caused to the above entities will be mainly of the negative impacts on their production and operation. The losses incurred to the factory buildings and equipments by the project shall be evaluated by qualified evaluation company and shall be compensated at one time with money. These enterprises may reconstruct nearby or in other places according to their needs, and the government shall provide with necessary support. The IA shall also make compensation for the production or business interruption losses according to the market evaluation. For the workers affected by house demolition, the affected enterprises have worked out the corresponding resettlement schemes. For example, the affected workers of the Nitrogenous Fertilizer Factory will be relocated in the planned shanty 23

Guangxi Guoye Project Management Consultation Company Ltd. town reconstruction project of Baise City, and the Factory itself has promised to re-employ all of its previous workers at the salaries no less than before when the normal operation of the Factory is retrieved. As for those workers who are unwilling to work in the previous enterprises, the Human Resources and Social Security Bureau of Youjiang District will provide with free employment information and recommendation for those willing to work until their full employment. It is understood that, because Dongsun area is adjacent to the downtown of Baise City where the business is prosperous and will offer a lot of job opportunities, the affected workers do not worry about losing their jobs or income sources if their enterprises are demolished. They can quickly find similar jobs nearby. 3.2.6 Temporary Land Occupation As of February 28, 2018, land acquisition had no involvement of temporary land occupation. 3.2.7 Impacts on Ground Attachments As of February 28, 2018, T-C01 subproject and river rehabilitation project had totally acquired 64.1mu of state-owned land and 157.68mu of collective land. However, the quantity of affected ground attachments have not been counted, which will be detailed in the next external monitoring report. 3.2.8 Impacts on the vulnerable groups According to the RP, the disabled, the households enjoying the five guarantees, the female-headed households and the households of minimum living safeguard system (MLSS) are classified as the vulnerable groups. No vulnerable groups were found in Dongsun community at that time. The site survey conducted by the external monitoring team in the No.1 reporting period found two households of vulnerable groups in Dongsun community, respectively He Jiefei and Wei Caiying who have lost the labor capacity due to physical disability and live in Dongsun No.5 group. The PMO, the IA and the local governments pay special attention to the resettlement of the vulnerable groups. In addition to the livelihood and production restoration as planned in the project implementation, these vulnerable groups shall be given more assistance. The resettlement budget of the project reserves RMB 987,000 of funds as the assistance to the vulnerable groups. The following measures shall be taken. (1) The government and the IA will provide RMB 3000 to each vulnerable household as the financial difficulties subsidies to help them restore their livelihood and production. (2) Two family members of each vulnerable household, at least one female member, will get the opportunities of technical training. These households will have the priority in getting jobs in project construction and be provided with relevant information of job opportunities. (3) Those people who have lost their labor capacity will be guaranteed by the social security system and receive pension given by the government. According to the external monitoring, as of February 28, 2018, in addition to the 2 vulnerable households in Dongsun Community, in the building of 21 households for 24

Guangxi Guoye Project Management Consultation Company Ltd. the workers of Baise Electrical Machinery Factory, there were 13 special poverty households who were mostly of the elderly people depending on odd jobs for their living, and the water and electricity charges were borne by the Factory. Baise Hengjian Foods Industrial Company Group (Dongsun Foods Station of Baise Foods Company) had 1 special poverty household having the housing problem. The PMO, the IA and the local governments pay special attention to the resettlement of the vulnerable groups. According to the policies, the relevant institutions will mobilize necessary funds to solve the living problems of the vulnerable groups. 3.3 Compensation Policies and Standards for Land Acquisition and House Demolition 3.3.1 Occupation of State-owned Land According to the RP, the occupation of state-owned land in this project belong to state-owned industrial land, residential land in industrial zone and the existing roads and rivers. According to Land Grading and Standard Land Price in the Urban Area of Baise City as attached to the document of Notice of the Municipal Government of Baise City on Implementing the New Results of Land Grading and Standard Land Price in Urban Area of Baise City (Ref. BZF[2011]34), the standard prices for state-owned industrial land and residential land are respectively RMB 123,300/mu and RMB 466,700/mu. The relevant departments of the Land Resources Administration Bureau of Youjiang District will make compensation to the land users. Details are shown in Table 3-2. The resettlement budget was compiled based on these prices, while the final prices of compensation shall be decided upon market assessment. Table 3-2 Standard Land Price for State-owned Land Land Standard Price (RMB Remarks Purpose Grade 10,000/mu) State-owned industrial Remain unchanged as Class III 12.33 land the standard prices, State-owned residential subject to final market Class IV 46.67 land evaluated prices According to the investigation, as of February 28, 2018, it was found that, the LA Office of Youjiang District had decided that, before retrieving the land-use rights of the state-owned land, the existing land users shall be compensated at the prices of no less than the standards stipulated in the RP. 3.3.2 Acquisition of Collective Land As of August 31, 2017, according to Notice of Land Resources Administration Department of Guangxi Zhuang Autonomous Region on Implementing A New-Round Unified Standards of Annual Average Output Values for Land Acquisition (Ref. GGTZF[2015]89), starting from January 1, 2016, the compensation standards for land acquisition in Dongsun community of Baise City shall be based on the unified regional AAOV multiplied by compensation multiples. The new-round unified AAOV standards are applicable to all the acquisition of collective land (except basic farmland

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Guangxi Guoye Project Management Consultation Company Ltd. and natural reserves) within the jurisdiction of Guangxi Zhuang Autonomous Region. For acquisition of basic farmland, the compensation standards shall be no less than 1.1 times of those for common agricultural land. For acquisition of collective construction land, the compensation standards shall be no less than 0.4 times of those for common agricultural land. For acquisition of un-used collective land, the compensations standards shall be made at 0.1 - 0.4 times of those for common agricultural land. In Dongsun community area, the AAOV standard for the collective agricultural land is RMB 4516 /mu, and the compensation multiple is 18. The compensation for young crops shall be made according to Notice on Acquisition of Collective Land in Urban Area of Baise City (Ref. BZF[2005]64. The compensations for ground attachments shall be evaluated by the qualified evaluating company which is engaged by the IA from the bank of qualified companies of the government procurement agency. As of February 28, 2018, based on the Notice of Land Resources Administration Department of Guangxi Zhuang Autonomous Region on Implementing A New-Round Unified Standards of Annual Average Output Values for Land Acquisition (Ref. GGTZF[2015]89), and Approval of Baise Municipality on Compensation Standards on Crops and Land Attachments for Acquisition of Collective Land in Youjiang District (Ref. BZH[2017]26, Baise Municipality has worked out detail schemes for various compensation standards relevant to the acquisition of collective land in Youjiang District. The compensation standards in Dongsun Community have been increased substantially. Details are shown from Figure 3-19 to Figure 25.

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From Figure 3-19 to Figure 3-25, February 27, 2018. Land Acquisition Agreement of No.4 Residents’ Group in Dongsun Community 3.3.3 House Demolition 1Compensation standards for demolition of residential houses According to the RP, the house demolition of this Project includes the demolitions of rural residential houses and the residential houses on state-owned land. The compensation standards for both were evaluated by the independent evaluating agency according to the market. (1) The compensations for demolition of the residential houses on state-owned land were determined according to the prices evaluated by the qualified independent evaluating company, but no less than the standard compensation price of RMB 2200 / ㎡. (2) According to Notice on Issuance of Cost Indices on First-half of 2016 for Building Construction in Baise City, the compensation standards are made based on the replacement cost of the house category and those of similar projects. The compensation standards for demolition of rural residential houses of this project are shown in Table 3-3. The house-sites of rural residential houses were compensated separately according to the prices of collective construction land, i.e. RMB 31996.8/mu (RMB48/㎡).

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Table 3-3 Standard Compensation Prices for Demolition of Rural Residential Houses Reference Price (RMB)(excl. Types of Impacts Type of Structure Unit Remarks compensation for house site) Brick concrete m2 630—820 The final compensation prices shall be evaluated by the independent Compensation evaluator. Compensation for house site adopt the price for rural for houses Brick-wood m2 780 construction land, i.e. RMB 31996.8/mu (RMB48/㎡). Simple m2 140 Fixed line telephone Household 60 / Cable television Household 50 / Demolition Electric meter Household 85 / subsidies Water meter nos 100 / Rural residential Internet Household 60 / house Air conditioner nos 250 / demolition The displaced households choosing monetary compensation or property rights resettlement are given 12 months transition subsidies Temporary transition each household. Those choosing self reconstruction, the transition RMB/month/household 700 subsidies period are counted from the date of signing demolition agreement, plus the time period till the relocating site is available for construction by Other the government, then plus one year for house construction. compensations Moving subsidies RMB/household 1000 Incl. moving out and in, two times The displaced units or individuals are given a bonus of RMB 10000 if RMB/household, or they can sign the demolition agreements with the LA Office within the Quick moving bonus 20000 RMB/unit specified period, and are given another bonus of RMB 10000 if they can move and vacant the houses. Notes: The Notice on Issuance of Cost Indices on First-half of 2016 for Building Construction in Baise City has not specified the prices for brick-wood structure and simple structure, and the prices in the table are from the interview with the independent evaluating company. Other compensation standards are based on Approval of Resettlement Schemes on House Demolition for Dongsun Road Improvement Project of Baise City (Ref. BZH[2015]229).

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2Compensation standards for demolition of non-Residential houses According to the RP, this project will involve demolition of non-residential houses, i.e. enterprises, institutions and stores. The IA and the affected persons will jointly decide one qualified evaluating company to conduct the market assessment. The compensations will be directly paid to the affected persons. The losses of production, marketing and salaries shall be also covered by the evaluation. According to the Notice on Issuance of Cost Indices on First-half of 2016 for Building Construction in Baise City and the interview with the independent evaluating company, the compensation price for demolition of houses of enterprises, institutions by the project will be at RMB 2200/㎡. The standard compensation price for demolition of stores was RMB 3200/㎡, and that for commercial-residential building was at RMB 2200/㎡. The final compensation prices are subject to those evaluated by the independent company. According to the investigation, it is known that the independent evaluating company shall be selected from the government procurement bank of qualified evaluating companies by the IA. As of February 28, 2018, Baise Municipality issued the Approval of Compensation and Resettlement Scheme for House Demolition for Baise Integrated Urban Environment Improvement Project (Ref. BZH[2017]130), accordingly a new compensation and resettlement plan was worked out as shown in Table 3-4. The compensation standards are higher than those in the RP, but in consistent with those in the last monitoring period.

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Table 3-4 Compensation and Resettlement Scheme for Baise Integrated Urban Environment Improvement Project Type Compensation and resettlement methods Office Cash compensation Evaluated as per market price buildings of The differences in area between the acquired land and the resettlement land are paid or compensated Relocating site institutions according to the evaluated market prices. Full ownership house Exchange as per 1:1:1 in area The differences in area are compensated by the IA to the displaced people according to the Handle the full ownership formalities Exchange of property buying rate of the respective source Partial ownership (charges to be self-borne), then as per Housing rights of resettlement houses. The house 1:1:1 in area for exchange of property Non-residential reform, decoration are compensated in cash rights. house self-fund according to the evaluated market raising price. housing, Computed as per 1:1:1 in area, and the buying prices of source of resettlement houses for exchange of Cash compensation commercial property rights. housing The displaced people who can sign the compensation agreement for house demolition with the relevant department on time , based on the 1:1:1 resettlement ratio, are eligible to get additional cash bonus equivalent to 20% of the area of the original house with title or the bonus of exchange of property rights. Those without houses in the working unit who meet the requirement on enjoying affordable housing policies, have the priority to be resettled in the source of policy-safeguard houses provided by the government.

Detached After cash compensation for If the area of the original house site ≤60 ㎡， The differences in Residential houses on Resettled with house the acquired houses as per reconstruction as per 60 ㎡ area are paid or house state-owned site evaluated market price, be 60 ㎡＜original house site ≤80 ㎡, reconstruction compensated land further resettled in the house sites are provided as per 60 ㎡ or 80 ㎡ according to the

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resettlement sites designated Original house site ＞ 80 ㎡ , reconstruction evaluated market by the government. house sites are provided as per 80 ㎡ or 100 ㎡ prices. No need for Cash compensation as per evaluated real estate market price, and the right of land use for state-owned land reconstruction house is retrieved. site The house users are not compensated or resettled, and the leasing or lending issued are handled by the Leased or lent houses house owner Giving up the construction Compensated as per evaluated results resettlement site Land exchange Same area between original house site and the reconstruction house site Houses on Original house site ≤60 ㎡， reconstruction house site as per Differences are collective land Require providing 60 ㎡ compensated Combing cash the construction 60 ㎡＜ original house site ≤80 ㎡， provided as per 80 ㎡ according to the compensation and resettlement site standards for land exchange Original house site ＞80 ㎡， provided as per 100 ㎡ acquisition of collective land Moving Moving of institution To be decided upon discussion according to the articles to be moved. subsidies Resettlement Individual moving As per lump sum RMB 5000 (RMB 2500 /household. Time, respectively moving-out and moving-in) subsidies Temporary Cash compensation RMB 1000/month for each household, totally 12 months, i.e. A lump sum amount RMB 12000 transition Choose exchange of RMB 1000/month each household, counting from the date of signing agreement to the date of availability

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subsidies property rights of resettlement site (land leveling & “three supplies”); the period of reconstruction is compensated with subsidies as per transition period, totally 12 months. The charges for moving telephone, TV net, Internet, air conditioner, water meter, electricity meter etc. are compensated as per the standard fees of relevant departments, which are determined through investigation by the evaluating agency. Signing agreements within the RMB 10000 of bonus Quick moving specified period bonus Moving and vacating houses within RMB 10000 of bonus on time

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3.3.4 Temporary Land Occupation According to the RP, the temporary land occupations of this project include collective agricultural land, collective idle land and state-owned idle land. Based on Notice on Acquisition of Collective Land in Urban Area of Baise City (Ref. BZF[2005]64, the compensation standards for temporary occupation of collective agricultural land are shown in Table 3-5. Table 3-5 Compensation Standards for Temporary Land Occupation Compensation Standards (RMB/mu) Community Crop compensation Dry land 1175 Dongsun community Vegetable land 1175 As for the collective and state-owned idle land, the IA will not make any compensation because the temporary occupation will not lead to any production or business losses. However, the IA will restore the occupied land to the original status after completion. During the implementation period, the IA and the owners will negotiate, if necessary, to resolve some compensation for such temporary land occupation. As of February 28, 2018, the temporary land occupation in Dongsun community are in consistent with those in the original plan. 3.3.5 Vulnerable Groups According to the RP, in addition to the compensation policies for land acquisition, the vulnerable groups affected by the project are eligible to enjoy additional assistance, i.e. RMB 3000/household, including other necessary assistances such as technical training, employment support and social security etc. Based on the investigation, as of February 28, 2018, the affected vulnerable groups of the project, in addition to scheduled compensation polices for land acquisition and the necessary assistances of technical training, employment support and social security etc., the actual standards for other additional subsidies for the vulnerable groups were: RMB 80/person * N (N: nos of family members). There are no big differences in the compensation standards if compared with the original plan. 3.4 Resettlement Funds and Payment As of February 28, 2018, it was found by the external monitoring team that, T-C01 subproject and the river rehabilitation subproject had acquired 17.3204 mu of land from No.4 Group of Dongsun Community, making compensation amount of RMB 2129476.85; 35.405 mu of land No.5 Group, making compensation amount of RMB 4248041.27. The R-C01 subproject (Youjiang dike construction) had acquired 16.2458 mu of collective land from No.2 Group of Dongsun Community, making compensation payment of RMB1951189.0; acquired 88.7080 mu of land from No.4 Group, making compensation payment of RMB 10642459.06. A total amount of RMB 18971166.2 had been paid, as shown in Figure 3-26.

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Figure 3-26 Evidences of Payment of Land Compensation through Consultation by External Monitoring Team

Based on the procedures (Figure 3-27) of compensation for land acquisition and house demolition of Youjiang Land Resources Bureau, it was found by the external monitoring team that the resettlement funds were paid on time and in an open and transparent manner.

LAR announcement issued Land acquisition by Youjiang Land Resources activities of LAR Signing agreements Bureau working group

Notie of Lad The IA makes Youjiang Land Bureau Compensation compensation pays to the village Payet issued y payment to Youjiang Land Youjiang Land group or individual as Resources Bureau Bureau per agreements

Figure 3-27 Procedures for Payment of Resettlement Funds 3.5 Resettlement and Development Plan for Ethnic Minorities According to the RP, the affected rural people are ethnic minorities (Zhuang), and so the RP was compiled on full consultation with the ethnic minorities, so to meet with their needs in reconstruction. According to the external monitoring team, as of February 28, 2018, the latest situation of ethnic minorities were consistent with the RP. In the next stage, the IA will further discuss with the ethnic minorities to optimize the resettlement plan. In order to better safeguard the rights and interests of the ethnic minorities and improve their capacities in reconstruction and self development, the IA will implement the resettlement plan for ethnic minorities as shown in Table 3-6. The people of ethnic minorities will also participate in the community works, and the number participants in public participation will be no less than 70%, while female no less than 50%. The 35

Guangxi Guoye Project Management Consultation Company Ltd. implementation status for public participation with ethnic minorities shall be detailed in the next monitoring report, and submitted to ADB for review on time.

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Table 3-6 Resettlement and Development Plan for Ethnic Minorities

Main monitoring Project Responsible Executing Fund Budget (RMB Scope of activities and remarks Budget & evaluating activities persons time sources 10,000) index (i) Compile community participation booklet (i) Proportion of (ii) Formulating policies for Zhuang's participation of community (1) Establish the participation; Dongsun development. community Project (ii) Community Community Before project (iii) Participation in publicity of Operational 9 (computed as development budget participation Committee implementation resettlement policies. costs per 3 years ) participation Community booklet; PMO (iv) Participation in implementation group and management of resettlement.

(v) Participation rate of Zhuang no

less than 70%, while female representative no less than 30%. (2) Provide aggregated Costs for Status of relocating site "three PMO resettlement of according to the Give adequate consideration to the supplies and Resettlement During project Resettlement ethnic minorities requirement of need of concentrated residence of one 170 implementation implementation funds Neighborhood house ethnic minorities leveling" of agencies relationship of reconstruction relocating ethnic minorities by ethnic site minorities.

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Main monitoring Project Responsible Executing Fund Budget (RMB Scope of activities and remarks Budget & evaluating activities persons time sources 10,000) index (3) Meet with Types of public the cultural PMO Plan a certain place in the relocating Charges for amenities demand of the Resettlement During project site for public activities, thus to meet construction Resettlement Area of public 100 ethnic minorities implementation implementation with the cultural and recreational of public funds amenities and provide agencies demand of the ethnic minorities amenities Use conditions of public amenities public amenities Monitoring and evaluation charges Charges for (4) Monitoring Throughout the for implementation of the participatory 20 (covered by the Project and evaluation project development plan for the ethnic monitoring monitoring budget charges implementation minorities (respective one time and charges) during and after implementation) evaluation 299 (incl. RMB 1.09 million for Total community development of ethnic minorities) Notes: Updated according to the construction contents of this subproject and based on the original development plan for ethnic minorities.

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As of February 28, 2018, the resettlement and development plan for the ethnic minorities had not been started. 3.6 Evaluation From the above analysis, the external monitoring agency has the following findings: 1Because the land acquisition and house demolition have not been completed, which cannot provide continuous construction site for the contractors, currently, the construction in Contract T-C01 is suspended. In the river rehabilitation subproject, the preliminary work of “treatment of black and odorous water” has already begun, and most of the rest works have completed the design bidding. No construction has been started. 2The T-C01 subproject has respectively acquired 17.3204 mu and 35.405 mu of collective land from Dongsun No.4 Group and No.5 Group, for which the land compensations have been paid. The R-C01 subproject has respectively acquired 16.2458 mu and 88.7080 mu of land from Dongsun No.2 Group and No.4 Group, for which the land compensations have been paid. The progresses of land acquisition and house demolition are relatively slow, which requires a leading institution to organize and coordinate the LA working group, affected enterprises and units to launch the activities of land acquisition, house demolition and compensation. 3The Project Working Group needs to further investigate the resettlement willingness of the affected units and individual, expedite the acquisition of the resettlement sites and the enlarged land acquisition, thus further provide construction sites for the contractors. 4The procedures of payment of resettlement funds are open and transparent, but need to strengthen the follow-up and monitoring of the resettlement funds.

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4. Public Participation and Grievance Redress

4.1 Public Participation. According to the site survey by the monitoring group, the resettlement agencies of Dongsun road and Dongsun bridge subproject were found to basically observe the relevant regulations and procedures of ADB and the government during land acquisition, house demolition and resettlement. 1Pre-examination of land use and approval were disclosed to the public on bulletin. 2The APs participate in the investigation, measurement and registration before land acquisition. 3The APs participate in the public hearings and in negotiating the compensation and resettlement schemes. The agreed compensation schemes for land acquisition and house demolition are submitted to the higher authorities for approval. 4After approval of the land use application, the Announcement of Land Acquisition is disclosed to the public. The medias of Internet and newspaper are used to introduce the construction contents of the project, publicize the laws and regulations relevant to land acquisition. 5Organize citizens' meeting in the community affected by land acquisition and house demolition, and introduce the relevant laws, regulations and policies for land acquisition and house demolition to the APs. 6Disclose the compensation schemes for land acquisition and house demolition, and further solicit the public opinions. 7After approval of the compensation schemes for land acquisition and house demolition, all kinds of compensations and resettlement are in place according to the schemes. 8The construction land is handed over for use, and the activities of land acquisition, house demolition and relocation are completed. 4.2 Complaints and grievances. It is found that the means for accepting complaints and grievance have been established in this Project. The relevant institutions shall accept the complaints and grievance lodged by APs free of charges. The reasonable charges as incurred shall be covered by the contingency of the project. During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues. The above means of grievance redress shall be announced in the public meetings and in the resettlement information booklet. The APs shall be informed of their rights for grievance and appeal. At the same time, the procedure for appeal and grievance shall be published through media among the affected people. As shown in Table 4-1.

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Table 4-1 Resettlement Complaints and Grievances Channels Unit Name Address Tel.

DRC Building, No.2 Donghe Rd., Baise PMO Jiang Gong 15278695799 Baise City, Guangxi

Guangxi Baise Development No. 1-1, Dawang Rd., Youjiang Yang Junrong 18907769000 Investment Group District, Baise City, Guangxi Guangxi Baise Development No. 1-1, Dawang Rd., Youjiang Lang Gong 18907769040 Investment Group District, Baise City, Guangxi The LA Office of Youjiang The LA Office of Youjiang LuoPinhui 13737698028 District District Government Land Resources Bureau of Huang No.58, Taiping Xinlong Lane, 13517763833 Youjiang District, Baise City Wanxiang Youjiang District, Baise City Dongsun community Secretary Li Youjiang District, Baise 13977685130

Figure 4-1 Petition Offices of Discipline Inspection Commission and the LA Office of Youjiang District

As of February 28, 2018, no petitions and grievances were received.

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5. Findings and Suggestions

5.1 Findings

1Resettlement institutions. There were no changes in major responsible persons of the IA. However, the resettlement institutions have encountered such things as the government leadership changes, personnel adjustment of PMO and re-election of village group leaders etc., the coordination was not effectively performed, so the new leaders were not fully aware of the Project, and thus the resettlement activities were affected. 2Resettlement impacts and implementation: The land acquisition and house demolition of the Project are relatively complicated and involve different types of institutions, units and individuals. As of February 2018, only the land acquisition and demolition of buildings of Guangxi Jiayi Paper Mill within the construction alignments have been completed, providing partial construction site for the Project. Partial collective lands required by the Project of Dongsun community had been acquired, and the activities for acquisition of the rest land and house demolition activities are undergoing. In addition, the existing area of resettlement sites are not enough to meet with the need of resettlement of the whole Project for state-owned and collective lands in form of detached buildings, which requires additional land acquisition. The detailed measured area of land acquisition is under processing for submission to the government for approval. The sources of resettlement houses for reform housing, self-fund raising housing and commercial housing are still under coordination, and the LAR Office has not yet started the household willingness investigation. Compared with the last monitoring reporting period, the progress of land acquisition has been improved, but the progress is still slow which needs to be further improved. Construction progress: As of February 28, 2018, due to the lack of continuous construction sites arising of the problem of land acquisition and house demolition, the Dongsun road construction under T-C01 is suspended. In the river rehabilitation subproject, the preliminary work, namely “treatment of black and odorous water” has already begun. By now, the sludge of the rierbed have been dredged, and thus construction of waste water treatment station and greening will be conducted in the next stage. Most of the other works of the subproject have completed the design bidding, no construction works had been started. 3Compensation Standards: In this reporting period, the compensation standards for acquisition of collective land are obviously higher than those specified in the RP. The major reason is that Guangxi has increased the AAOV for land acquisition, and thus the compensation standards for land acquisition are increased accordingly. In addition, Baise Municipality also increased the land compensation standards via Ref. BZH[2017]130. The municipal government has worked out detail compensation schemes. Such initiatives have given good consideration to the actual

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Guangxi Guoye Project Management Consultation Company Ltd. economic development and would benefit the APs and comply with the ADB's policies substantially. 4Other resettlement measures. The resettlement implementation agencies and the local governments have provided with many preferential measures for the APs in the areas of employment, social safeguard, training etc. to ensure that the affected persons can recover their livelihood. 5Public participation and grievance redress. During the process of resettlement, the APs have adequate right to know about and participate in the resettlement activities. According to the policies of the ADB and the local government, the resettlement implementation agency published the announcement, conducted adequate consultation with the APs, measured land with APs and publicized policies through public medias such as bulletin and newspapers etc. The Project has established an effective grievance readdressing channel. No grievances are received. 5.2 Suggestions 1Institutional capacities. The resettlement implementing agencies at all levels are still required to enhance the understanding of the resettlement policies of the ADB, be more familiar the legal documents of the Project such as RP, the Project Agreement, the Loan Agreement etc. At the same time, they still need to be more familiar with working procedures in well coordinating the relationship among the resettlement implementing agencies. We, the external monitoring agency, have designed a mechanism for resettlement internal monitoring, and would suggest these institutions following and enhancing the feedback of information and data, as well as the sharing and archiving of the documents and information of the Project. The staff of the resettlement implementing agencies should be stable, and if any person is moved, handing over project documents should be especially attended to. 2Staffing of institutions. The land acquisition and house demolition offices should enhance the management and improve the working efficiencies of land acquisition and house demolition. At the same time, all relevant departments should enhance the mobilization of manpower and materials to investigate the resettlement willingness of the APs and to accelerate the progress of land acquisition and house demolition for the Project, so as to ensure the smooth implementation. 3Coordination between resettlement implementing agencies. Because the LA Office of Youjiang District is only responsible for acquisition of collective land, while the acquisition of state-owned and other types of lands and house demolition are charged by the Construction Bureau, so, the PMO should take over the works of coordinating sources of resettlement houses, supervise the LAR offices in organizing household baseline survey, and further enhance the coordination between the relevant institutions to avoid any possible wrangling or delay that may negatively affect the resettlement implementation of the whole project.

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