Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project

Resettlement Plan (Draft Final)

August 2020

People's Republic of China: Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project

Prepared by Pingjiang County Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 13 July 2020)

Currency unit – yuan (CNY) CNY1.00 = $ 0.1430 CNY1.00 = € 0.1264 $1.00 = € 0.8834 €1.00 = $ 1.1430

ABBREVIATIONS

ADB Asian Development Bank AAOV average annual output value AP affected persons AHHs affected households DDR Due Diligence Report DI Design Institute DRC Development and Reform Commission DMS Detailed Measurement Survey FSRs Feasibility Study Reports GRM Grievance Redress Mechanism HHPDI Hunan Hydro and Power Design Institute HHs households HD house demolition LA Land Acquisition LAHDC Land Acquisition and Housing Demolition Center of Pingjiang County LLF land-loss farmer M&E Monitoring and Evaluation BNR Natural Resource Bureau of Pingjiang County PLG Project Leading Group PMO Project Management Office PRC People’s Republic of China PCG Pingjiang County Government RP Resettlement Plan RIB Resettlement Information Booklet SPS Safegurad Policy Statement TrTA Transaction Technical Assistance TOR Terms of Reference

WEIGHTS AND MEASURES km - kilometer km2 - square kilometer mu - 1/15 hectare m - meter m2 - square meter m3 - cubic meter

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.

Table of Contents

Letter of Commitment i Executive Summary 3 ES1. Introduction 3 ES2. The Proposed Project 3 ES3. Resettlement Plan Preparation 3 ES4. Resettlement Impacts 3 ES5. Policies, Principles and Entitlements 4 ES6. Institutional Arrangements 4 ES7. Consultation and Disclosure 4 ES8. Estimation of Resettlement Cost 4 ES9. Grievance Redress Mechanism 5 ES10. Schedule and Monitoring 5 1. Project Profile 6 1.1. Introduction 6 1.2. Project Contents 6 1.3. Overview of the resettlement impact 6 1.4. Measures to reduce resettlement impacts 9 2. Project Impacts 11 2.1. Impact Survey Process 11 2.2. Results of impact survey 11 2.3. Analysis on Resettlement Impacts 22 3. Social-economic Survey 23 3.1. Overview of social-economic development in affected areas 23 3.2. Socio-economic situation of APs 29 3.3. Willingness of LA, HD and resettlement 33 4. Legal Framework and Policies 35 4.1. Main laws, regulations and policies of PRC 35 4.2. Resettlement Policy of the ADB 36 4.3. Summary of laws, regulations and policies Error! Bookmark not defined. 4.4. Cut-off date of eligibility 48 4.5. Compensation and subsidy standard 48 4.6. Entitlement matrix 58 5. Resettlement and Rehabilitation Plan 63 5.1. House demolition 63 5.2. AP livelihood recovery plan 63 5.3. Relocation and reconstruction planning of special facilities 72 5.4. Help and support measures for vulnerable groups 72 5.5. Measures for women development 73 5.6. Skill training 74 6. Instituations and Responsibilities 77 6.1. RP Implementation and Management Agencies and responsibilities 77 6.2. Resettlement planning and design agency and responsibilities 78 6.3. Resettlement M&E agency and responsibilities 78 6.4. Personnel and facilities of resettlement agencies 79 6.5. Measures to strengthen the capacity of agencies 81 7. Public Participation and Consultation 83 7.1 Public participation and consultation during RP preparation 83 7.2 Public participation and consultation plan during RP implementation 87

7.3 Women participation 88 7.4 Information disclosure 89 8. Grievance Redress Mechanism 90 9. Resettlement M&E 92 9.1. Internal monitoring 92 9.2. External monitoring 93 10. Resettlement Budget, Financing and Disbursement 96 10.1. Resettlement budget 96 10.2. Financing and use of resettlement funds 97 11. Resettlement Schedule 99 Appendix 1: Resettlement Information Booklet 102 Appendix 2: Due Diligence Report on LURT 107 A. Project profile 107 B. Social Economic Situation of the LURT area 110 C. Applicable Policy 110 D. LURT Survey 115 E. GRM 124 F. Conclusions and Corrective Action Plan 124 Appendix 3: LURT Framework 129 Appendix 4: Land Acquisition Due Diligence 144 1. Purpose of due diligence 144 2. Method 145 3. Land acquisition procedures 147 4. Resettlement Policies and Measures for APs 148 5. Information disclosure, participation and grievance redress mechanism 150 6. Follow-up investigation and interview 152 7. Conlusions and Corrective Action Plan 154 Appendix 5: Resettlement Due Diligence on the Existing Facilities 159 1. Purpose 159 2. Methods 159 3. DDR for Sewage Treatment Plants and Landfill Plants 159 4. Yueyang Municipal Hazardous Waste Disposal LTD 184 5. Resettlement Due Diligence for Huangjindong Reservoir 185 6. Due Diligence of Land for Dajiangdong Reservoir 186

Executive Summary

ES1. Introduction

1. Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project (hereinafter referred to as the “Project”) is located in Pingjiang County, Hunan Province, with a total investment of CNY 2.3616 billion (equivalent to € 298.42 million). The Government has requested a loan of €132.51 million (equivalent to $150 million) from ADB’s ordinary capital resources and a loan of €60 million from KfW to help finance the project.

ES2. The Proposed Project

2. The Project includes five major outputs, including: (i) Output 1: Water-related disaster risk management strengthened; (ii) Output 2: Accessibility to safe drinking water and sanitation services enhanced; (iii) Output 3: Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated; and (iv) Output 4: Green procurement practices piloted and environmental education mainstreamed.

3. Under Output 1, it includes (i) Subproject 1: Flood prevention and risk management in Miluo River; (ii) Subproject 2: Huangjin River National Wetland Park restoration and protection; and (iii) Subproject 3: Integrated smart disaster risk management system. Under Output 2, it includes (i) Subproject 4: Integrated water supply in urban and rural Pingjiang; (ii) Subproject 5: Separating rainwater from sewers in urban and rural Pingjiang; and (iii) Subproject 6: Rural domestic wastewater treatment and sanitary conditions improvement. Under Output 3, it includes (i) Subproject 7: Sustainable livestock waste management; and (ii) Subproject 8: Promotion of eco-farming technology and practices. Under Output 4, it includes (i) serves as Subproject 9: Green procurement and environmental education; and (ii) Subproject 10: Institutional and project management capacity building.

ES3. Resettlement Plan Preparation

4. The resettlement plan (RP) is prepared based on the latest Feasibility Study Reports (FSRs), and will be updated after the detailed design is completed. The RP addresses impacts of permanent land acquisition and temporary land occupation. In addition, appendices include (i) due diligence reports (DDR) for completed land acquisition and existing facilities; and (ii) DDR reports for existing land leases and a framework for future land leases. The updated RP will be submitted to ADB for review and approval before the project implementation.

ES4. Land Use and Impacts

5. Land acquisition and resettlement impacts. The Project will permanently occupy 698.09 mu land, including use of 527.85 mu state-owned construction and unused land, with no affected persons (APs); and 170.24 mu collective land which will be acquired permanently. The land acquisition will affect 64 households with 269 persons, including 129 females, in 14 townships with 33 villages. Among them, 20 households with 83 persons will be significantly affected. There are no ethnic minorities among APs.

6. A total of 1,254.59 mu land will be used temporarily during the project implementation, including 1,219.4 mu collective land which will temporarily affect 204 households with 855 persons (411 female) in 39 villages of 8 townships; and 35.19 mu of state-owned roads will be temporarily occupied.

7. 628.53 m2 of rural abandoned houses will be demolished, involving 1 village in 1 township, affecting 3 households with 16 persons, including 6 females. The APs have their second house and only cash compensation is needed.

8. Land use-right transfer: Under the project, subproject 8 involves 8,641 mu land of which use-right has been transferred already; and 15,497 mu land of which the land use-right will be transferred. Due diligence review has been conducted for the transferred part of land use; and a land use-right transfer framework (LURT) has been prepared for the land use right to be transferred.

9. Acquired land in the past: 141.45 mu rural collective land has been acquired before the project preparation. A resettlement due diligence report (DDR) has been prepared for it.

10. Land use by existing Facilities: 24 sewage stations, Dajiangdong Reservoir and Huangjindong Reservoir have been identified as the existing facilities of the project; and related resettlement DDRs have been prepared.

ES5. LAR Policies, Principles and Entitlements

11. The RP is prepared in accordance with the laws, policies and regulations of the PRC and ADB’s Safeguards Policy Statement (SPS, 2009). All compensation price for LAR follows the principle of replacement principle. Besides the cash compensation, additional supporting and assistance measures have been developed and will be provided to APs.

ES6. Institutional Arrangements

12. The project management office (PMO) (hereinafter referred to as the “Pingjiang PMO”) is the implementing agency of the Project, representing the Pingjiang County Government (PCG). They will facilitate and work closely with the concerned bureaus (e.g. Natural Resource Bureau, Labor and Social Security Office) and affected villages. Land Acquistion and Housing Demolition Management Office of Pingjiang County (LAHDC) is the overall LA and HD implementing agency in Pingjiang County. Training to relevant staff of the implementing agency have been provided by the TRTA team; and further training will be provided during the project implementation by the project implementation consultants (PICs).

ES7. Consultation and Disclosure

13. Consultations have been carried out since September 2019; and the comments and suggestions on compensation payment, issues on minimizing resettlement impacts, provision of proper compensation, support to increase income, and assistance to vulnerable households that were raised or discussed have been incorporated. Consultation is an iterative process and will continue during RP updating and implementation. Participation is also of equal importance and the strategy to encourage participation is included in the RP. Copies of resettlement information booklets, which contain key information, will be provided to the APs.

ES8. Estimation of Resettlement Cost

14. The resettlement cost is estimated at CNY 57.1246 million, which will be financed by the PCG.

15. The Pingjiang PMO will disburse directly to the functional departments concerned through a special account according to the compensation rates, and then the compensation will be distributed to the affected villages and households.

ES9. Grievance Redress Mechanism

16. The grievance redreass mechanism (GRM) has been set-up, with clear roles and responsibilities, and time frame to address any complaints. The complaints or requests can be raised first with the township government and can be elevated to Pingjiang PMO, Pingjiang County Arbitration Commission, and up to the civil court.

ES10. Schedule and Monitoring

17. The updating and implementation of the RP will start in 2021 and is expected to be completed by 2026. PMO will conduct internal monitoring and submit progress reports to ADB semi-annually. Besides, PMO will also recruit an external monitoring firm who will carry out its own verification and monitoring on a semi-annual basis for the implementation of RP, LURT and DDR corrective actions. The external monitoring agency (EMA) will submit the semi-annual monitoring reports to ADB and Pingjiang PMO.

1. Project Profile

1.1. Introduction

1. The Project, co-financed by ADB and KfW, is located in Pingjiang County, Hunan Province. The Project aims to protect the ecological environment, natural resources and biodiversity of the Miluo River drainage basin, for beautiful natural landscape, good ecological environment and coordinated development of ecology, economy and society. The project construction duration is 6 years from 2021 to 2026.

2. The project total investment is estimated at CNY 2.3616 billion (equivalent to € 298.42 million), The Government has requested a loan of €132.51 million (equivalent to $150 million) from ADB’s ordinary capital resources and a loan of €60 million from KfW to help finance the project.

1.2. Project Contents

3. The Project includes five major outputs, including: (I) Water-related disaster risk management strengthened, (ii) accessibility to safe drinking water and sanitation services enhanced, (iii) circular agriculture linked sustainable livestock waste management and eco- farming demonstrated, and (iv) green procurement practices and environmental protection public awareness raising piloted.

4. The Project includes 10 subprojects. Under Output 1, it includes (i) Subproject 1: Flood prevention and risk management in Miluo River; (ii) Subproject 2: Huangjin River National Wetland Park restoration and protection; (iii) Subproject 3: Integrated smart disaster risk management system. Under Output 2, it includes (i) Subproject 4: Integrated water supply in urban and rural Pingjiang; (ii) Subproject 5: Separating rainwater from sewers in urban and rural Pingjiang; and (iii) Subproject 6: Rural domestic wastewater treatment and sanitary conditions improvement. Under Output 3, it includes (i) Subproject 7: Sustainable livestock waste management; and (ii) Subproject 8: Promotion of eco-farming technology and practices. Under Output 4, it includes (i) serves as Subproject 9: Green procurement and environmental education; and (ii) Subproject 10: Institutional and project management capacity building.

1.3. Overview of the land use and resettlement impact

5. The Project’s land use involves permanent rural collective land acquisition (LA), permanent state-owned land occupation, temporary land occupation, rural abandoned residential house demolition (HD), and land use-right transfer (LURT).

6. Permanent LA: in the Project, 170.24 mu of collective land will be permanently acquired, involving 33 villages in 14 townships, affecting 64 households with 269 persons, including 129 females.

7. Permanent state-owned land occupation: 527.85 mu of state-owned land will be permanently occupied freely, which is flood land and construction land. No AP and no compensation involved for it.

8. A a total of 1,254.59 mu land will be occupied temporarily during the project implementation, including 1,219.4 mu collective land which will temporarily affect 204 households with 855 persons in 39 villages of 8 townships; and 35.19 mu of state-owned roads will be temporarily occupied for

6 free.

9. 628.53 m2 rural abandoned houses will be demolished, involving 1 village in 1 township, affecting 3 households with 16 persons, including 6 females. The APs have their second house and only cash compensation is needed.

10. Land use-right transfer: Subproject 8 involves 8,641 mu land of which use-right has been transferred; and 15,497 mu land of which the land use-right is yet to be transferred. Due diligence review has been conducted for the transferred part; and a LURT has been prepared for the land use right to be transferred.

11. Acquired land in the past: 141.45 mu rural collective land has been acquired before the project preparation, a resettlement due diligence report (DDR) has been prepared for it.

12. Existing facilities: the comprehensive water environment improvement component for trunk stream and tributaries of Miluo River involves some acquired land. The Huangjin River National Wetland Park restoration and protection involves the Huangjindong Reservoir. The integrated water supply in urban and rural Pingjiang involves the Dajiangdong Reservoir. The rural domestic sewage treatment component involves hazardous waste disposal facilities. The separating rainwater from sewers in urban and rural Pingjiang involves 24 sewage treatment stations. The green procurement practices and environmental protection public awareness raising piloting involves waste treatment plant. The due diligence has been conducted for the land used by these existing facilities. The corrective actions agreed in DDR will be subject to the external resettlement monitoring and reporting. The EMA will submit monitoring reports to ADB and Pingjiang PMO semi-annually, covering the implementation of RP, LURT and the correcitive actions agreed in DDRs.

13. Table 1.3-1 presents identified land use scope and the relevant document prepared.

Table 1.3-1 Land Use Scope by Subprojects Temporary Temporary Land use- Rural State- State-owned state- rural Land use- right Rural Self- Rural No. of No. of No. of No. of house owned construction owned collective right transfer transfer No. of No. of Resettlement Item collective owned facility affected affected affected affected demolition flood plain land road land (transferred, (to be AHHs APs document LA (mu) farm land townships villages females minorities (m2) occupation occupation occupation occupation mu) transferred, (mu) (mu) mu) Output 1: Water-related disaster risk management strengthened Subproject RP and 69.98 386.4 141.45 0 2 8 30 123 60 0 1 Appendix 4 Subproject RP and

2 18.81 628.53 0 1 1 4 21 9 0 appendix 5 Subproject

3 Output 2 accessibility to safe drinking water and sanitation services enhanced Subproject

4 54.6 1219.44 0 8 39 214 901 434 0 RP Subproject

5 35.19 0 RP Subproject

6 26.85 0 11 20 20 79 37 0 RP Output 3: Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated Within Subproject farmers’

7 own housing site Subproject Appendix 2

8 8641 15497 0 0 and Appendix 3 (LURT) Output 4: Green procurement practices and environmental protection public awareness raising piloted Subproject

Subproject

Total 170.24 628.53 0 386.4 141.45 35.19 1219.44 8641 15497 0 14 65 268 1124 540 0

1.4. Measures to reduce land acquisition and resettlement impacts

14. The Project originally had significant LAR impacts. Many measures have been adopted in the project preparation stage. As a result, accumulated more than 600 mu cultivated land acquisition and 9,000 m2 houses to be demolished are reduced after a series of optimizing activities. The specific optimization and adjustment measures are listed in Table 1.4-1.

Table 1.4-1: Measures to Reduce LAR Impacts

No. Subproject Content Preliminary project content Current project content Optimization results

Build 2 meteorological stations (40 m2) in Mao Gong Shi and Zhoushang Village; Subproject 2: build 2 hydrologic and water quality 1. Wetland biodiversity monitoring, purchasing Reduces 28.29 mu of collective Huangjin River Wetland monitoring stations; build 1,830 m2 compass positioning tracker for animals, land acquisition, including 17.9 1 National Wetland Park monitoring work biodiversity monitoring and protection camera, PC, etc. mu cultivated land and 10.39 restoration and center and supporting facility in 2. Wetland monitoring and management system. mu forest land. protection Shazhouzui; and build 200 m2 monitoring and control station in the dam area. Subproject 4: It avoids the basic farmland and Water supply Integrated water Located in Chongyi Village, Nanjiang It is relocated in Changjiang Village and Caibo only requires forest land. 30 mu 2 and purification supply in urban and Town. Village, Nanjiang Town. cultivated land acquisition is work in the north rural Pingjiang reduced. It reduces over 600 mu of collective land acquisition, Water surface and Embankment Combines engineering measures with ecological 3 Mainly refers to engineering measures. including over 200 mu flood land works restoration. cultivated land and 2,000 m2 houses. In order to minimize the impact of LA, the PMO organized design institute, resettlement agency, surveying and mapping company, BNR, Planning Bureau, Water Resource Bureau, It reduces 600 mu of collective Civil works involving a large area of 4. All subprojects Civil works Agriculture Bureau, Forestry Bureau, land acquisition, and 2,000 m2 collective land acquisition Environmental Protection Bureau, Housing of houses. Construction Bureau and Water Company, to survey all project sites again, carefully optimize the engineering site It involved 1,500 mu permanent It involves 170.24 mu permanently land It reduces more than 1,000 mu acquisition of collective land, including acquisition, including 68.32 mu cultivated land collective land acquisition, and 670 mu cultivated land and 10,000 m2 and 628.53 m2 houses demolition, affecting 64 9,000 m2 house demolition; Total houses, affecting 470 households with households with 269 persons, including 129 reduces more than 200 1,460 persons, including 700 females. females. households with 600 persons The resettlement investment was CNY The resettlement investment is about CNY 57 affected, reduces resettlement 220 million. million. cost about CNY 160 million.

2. Project LAR Impacts

2.1. Impact Survey Process

15. The information in this RP were derived from the FSRs, statistical yearbooks, consultations and fieldwork.

16. In August 2019, Hunan Hydro&Power Design Institute (hereinafter referred to as “RP-DI”) compiled the Detailed Rules on Impact Survey of Land Acquisition. In September 2019, RP-DI carried out technical training for the responsible agencies and their staff. In October 2019, PMO took the lead and organized all relevant agencies to carry out preliminary impact survey on LA and HD, jointly with DI, RP-DI, local government and LHAMO. From March to April 2020, according to the scope adjustment, PMO took the lead and reorganized the impact survey. From May to June 2020, after further optimizing the design, adjust the scope of project area and reduce the impacts.

17. During detailed design, a census and detailed measurement survey and further consultations with various stakeholders (households, organizations, government and other stakeholders) will be carried out. It will also continue to adopt the principles of avoiding, if not minimizing, resettlement impacts. It is only then that the final No. of APs and extent of resettlement impacts on their land, properties, and livelihood will be updated. The RP will be updated and will be submitted to ADB for review and approval prior to resettlement implementation.

2.2. Results of impact survey

2.2.1. Scope of project impacts

18. As shown in Table 1.3-1, the project involves rural collective land acquisition in subproject 1 and subproject 2, subproject 4, subproject 6; involves rural house demolition in subproject 2; involves state-owned land permanent occupation at free in subproject 1 and subproject 5.

Figure 2.2-1: Diagram of the Positions Affected by Subproject 1 (red part)

Figure 2.2-2: Diagram of the Positions Affected by Subproject 2, Subproject 4 and Subproject 6

2.2.2. Permanent rural collective land acquisition

19. 170.24 mu of collective land will be permanently expropriated, including 65.17 mu of paddy field, 3.16 mu of dry land, 18.88 mu of garden land, 69.92 mu of forest land, 0.42 mu of transportation land, 8.72 mu of land for water surface and water conservancy facilities, 3.34 mu of unutilized residential land, 0.04 mu of farming connection roads and 0.29 mu of grassland, involving 14 townships and 33 villages, affecting 64 households with 269 persons, including 129 females.

20. See Table 2.2-1 for survey results of permanent rural collective land acquisition; and see Table 2.2-2 for the income loss ratio analysis.

Table 2.2- 1: Permanent Rural Collective Land Acqistion (mu) Rural Rural Agricultural land Construction rural unutilized land land Sub- Total Land for Land for Township Village project/Component area water surface water surface Cultivated Garden Forest Land for Other and water housing site Grassland and water land land land transport land conservancy conservancy facilities facilities Sanyang Getengping Village 5.93 4.34 1.45 0.13 Township Sanyang Shiyan Village 9.42 7.86 1.26 0.11 0.2 0 Township Huaqiao Community 0.77 0.33 0.1 0.04 0.31 River and flood risk Chengguan Town Beiyuan Village 14.24 3.16 10.16 0.63 0.29 management Fengshu Village 4.15 0.72 2.95 0.48 Sanyang Nanyuan Village 35.14 28.71 6.43 Township Sanyang Village 0.06 0.01 0.05 Chengguan Town Tianyue Village 0.28 0.28 Huangjin River National Wetland Changshou Town Jintang Village 18.81 16.52 2.29 Park restoration and protection Caibo Village 17.55 1.02 16.53 Integrated water Nanjiang Town Changjiang Village 25.57 25.39 0.18 supply in urban and Yaozhou Village 4.08 4.08 rural Pingjiang Dazhou Town Banqiao Village 7.39 7.39 Zhengdong Village 1.26 1.26 Hongqiao Town Tianyue Village 0.87 0.87 Sandun Township Hupei Village 1.35 1.35 Longmen Village 1.2 1.2 Longmen Town Tulong Village 1.5 1.5 Huayuan Village 1.26 1.26 Changshou Town Tingyou Area, Yongning Village 1.2 1.2 Yangsi Area, Yongning Village 1.38 1.38 Changjiang Village 0.85 0.28 0.57 Rural domestic Nanjiang Town Jiangtian Village 1.47 1.47 wastewater Shijiang Village 1.5 1.5 treatment Shiniuzhai Town Jiangshi Village 1.6 1.6 Daqiao Village 1.25 1.22 0.03 Anding Town Changtian Village 1.26 1.26 Wengjiang Town Hedong Village 1.67 1.04 0.54 0.09 Dongshan Village 0.85 0.85 Wushi Town Lishan Village 1.02 1.02 Sanlian Village 1.26 1.26 Wukou Town Xijiang Village 2.38 2.38 Tuanshan Village 0.86 0.86 Meixian Town Tuozhuang Village 0.87 0.87 Total 170.24 68.32 18.88 69.92 0.42 8.72 0.04 3.34 0.29 0.31

2.2.3. Income Loss analysis caused by collective land acquisition

1) Analysis on agricultural income loss of households

21. By calculating the annual income loss of APs affected by the LA in the Project, the annual agricultural income loss per household of the APs in the Project is CNY 1,960.3. The highest annual agricultural income loss per household is in Shiyan Village of Sanyang Township, which is CNY 4,278.1, followed by Beiyuan Village of Chengguan Town, which is CNY 3,994.7; and the lowest annual agricultural income loss per household is in Sanyang Village of Chengguan Town, which is CNY 20.1.

22. Among the farmers affected by LA, there are 7 households whose annual agricultural income loss is lower than CNY 1,000, accounting for 13.2% of the total affected households (AHHs); there are 14 households whose annual agricultural income loss is between CNY 1,000 and CNY 2,000, accounting for 26.42% of the total AHHs. There are 29 households whose annual agricultural income loss is between CNY 2,000 to CNY 4,000, accounting for 54.72% of the total AHHs; and there are 3 households whose annual agricultural income loss is between CNY 4,000 and CNY 6,000, accounting for 5.66% of the total AHHs.

2) Analysis on per capita income loss of APs

23. Due to the different economic development level of the affected villages, the income structure of the AHHs is different, the proportion of income loss in the total income of AHHs is also different, and the degree of impact is different.

24. According to the investigation and calculation, due to the impact of the acquisition of cultivated farmland land, there are 20 households with 83 persons whose income loss exceeds 10%, which are distributed in Shiyan Village of Sanyang Township, Nanyuan Village, Getengping Village, Beiyuan Village of Chengguan Town, Fengshu Village and Zhengdong Village of Hongqiao Town.

25. Table 2.2-2 shows the calculation of income loss of people affected by acquisition of farmland cultivated land.

Table 2.2-2: Income Loss ratio of People affected by LA AHH/APs Income loss affected by LA Per capita No. of Income loss per Loss of per No. of people Town/ship Village Households Land loss per disposable Loss rate of perhouseholds with APs (person) household capita income with loss affected by LA household (mu) income in 2019 capita income loss exceeding (CNY) (CNY) exceeding 10% (CNY) 10% Shiyan Village 3 17 3.04 4278.11 754.96 9800 7.70% 1 5 Sanyang Township Nanyuan Village 14 53 2.05 3044.70 804.26 9500 8.47% 10 42 Getengping Village 3 15 1.93 2897.25 586.64 9800 5.99% 1 5 Tianyue Village 1 2 0.28 414.00 207.00 11500 1.80% Sanyang Village 1 3 0.01 20.25 6.75 12000 0.06% Beiyuan Village 5 20 2.66 3994.65 998.66 9800 10.19% 5 20 Chengguan Town Fengshu Village 2 9 1.83 2748.38 610.75 9700 6.30% 1 5 Huaqiao 1 4 0.33 488.25 122.06 11500 1.06% Community Caibo Village 3 17 0.34 510.00 90.00 7200 1.25% Changjiang Village 1 3 0.28 420.00 140.00 7600 1.84% Nanjiang Town Jiangtian Village 1 5 1.47 2205.00 441.00 6900 6.39% Shijiang Village 2 9 0.75 1125.00 250.00 7200 3.47% Zhengdong Village 1 2 1.26 1890.00 945.00 6200 15.24% 1 2 Hongqiao Town Tianyue Village 1 3 0.87 1305.00 435.00 6400 6.80% Sandun Township Hupei Village 1 4 1.35 2025.00 506.25 6500 7.79% Longmen Village 0 0 0 0 0 8800 0.00% Longmen Town Tulong Village 1 5 1.50 2250.00 450.00 9000 5.00% Yongning Village 1 4 1.38 2070.00 517.50 10000 5.18% Changshou Town Huayuan Village 1 4 1.26 1890.00 472.50 8000 5.91% Shiniuzhai Town Jiangshi Village 2 8 0.80 1200.00 300.00 6100 4.92% Changtian Village 0 0 0 0 0 8800 0.00% Anding Town Fujia Village 0 0 0 0 0 8800 0.00% Wengjiang Town Hedong Village 1 5 1.58 2370.00 474.00 9500 4.99% Dongshan Village 1 3 0.85 1275.00 425.00 10500 4.05% Wushi Town Sushan Village 1 4 1.02 1530.00 382.50 9700 3.94% Sanlian Village 1 3 1.26 1890.00 630.00 8000 7.88% Wukou Town Donggang Village 2 8 1.19 1785.00 446.25 8300 5.38% 1 4 Tuanshan Village 1 4 0.86 1290.00 322.50 7800 4.13% Meixian Town Zhezhuang Village 1 5 0.87 1305.00 261.00 7600 3.43% 12 29 53 219 1.65 1,960.3 474.81 10,400 4.53% 20 83 Note: The data of per capita disposable income come from statistical annual report and village report.

2.2.4. Permanent state-owned land occupation

26. 527.85 mu of state-owned land will be permanently occupied, which is flood land and state- owned road, all caused by subproject 1. No AP is involved.

2.2.5. Temporary land occupation

27. The temporarily land occupation are by Subproject 4 and Subproject 5. A total of 1,254.44 mu land will be temporarily occupied. Sub-project 4 will totally occupy 1,219.4 mu land, including 489.23 mu paddy field, 203.26 mu dry land, 472.98 mu forest land and 53.96 mu unutilized land, affecting 204 households with 855 persons, including 411 females, in 39 villages of 8 town/ships. The temporary land occupation duration will be within 6 months. Table 2.2-3 shows the summary of temporary impacts of the Project.

Table 2.2- 3: Summary of Temporary Impact of the Project Temporary land Cultivated land (mu) Sub- Forest land Wasteland No. of APs No. of affected Town Village use AHHs project (mu) (mu) (person) females (person) area (mu) Subtotal Paddy field Dry land Yuejin Village 28.50 19.00 14.25 4.75 9.50 6 23 11 Zoujia Village 31.50 21.00 15.75 5.25 10.50 6 26 12 Lishan Village 16.50 11.00 8.25 2.75 5.50 3 14 7 Limen Village 33.00 22.00 16.50 5.50 11.00 6 27 13 Sizhi Village 34.50 23.00 17.25 5.75 11.50 7 28 14 Wushi Town Tangsha Village 31.50 21.00 15.75 5.25 10.50 6 26 12 Wushi Village 48.00 32.00 24.00 8.00 16.00 9 40 19 Gonghe Village 31.50 21.00 15.75 5.25 10.50 6 26 12 Xiushui Village 34.50 23.00 17.25 5.75 11.50 7 28 14 Qingchong Village 52.50 35.00 26.25 8.75 17.50 10 43 21 Datan Village 42.00 28.00 21.00 7.00 14.00 8 35 17 Wukou Village 54.00 36.00 27.00 9.00 18.00 11 44 21 Sifeng Village 46.50 31.00 23.25 7.75 15.50 9 38 18 Wukou Town Wuli Village 16.50 8.25 5.50 2.75 8.25 2 10 5 Yingjiang Village 48.00 24.00 16.00 8.00 24.00 7 30 14 Panshi Village 31.50 15.75 10.50 5.25 15.75 5 19 9 Yangmei Village 28.50 14.25 9.50 4.75 14.25 4 18 8 Wengjiang Town Taxing Village 43.50 21.75 14.50 7.25 21.75 6 27 13 Jiulong Village 13.50 6.75 4.50 2.25 6.75 2 8 4 Sub- Zhangshi Village 43.50 21.75 14.50 7.25 21.75 6 27 13 project 4 Yuping Township Shili Village 28.50 14.25 9.50 4.75 14.25 4 18 8 Chengtan Village 43.50 21.50 14.50 7.00 22.00 6 27 13 Hanchang Town Sima Village 12.00 8.00 6.00 2.00 4.00 2 10 5 Shangtashi Town Dongyuan Village 31.50 15.75 10.50 5.25 15.75 5 19 9 Fengxiang Village 16.50 8.25 5.50 2.75 8.25 2 10 5 Qingfeng Village 33.00 16.50 11.00 5.50 16.50 5 20 10 Ma’an Village 46.50 23.25 15.50 7.75 23.25 7 29 14 Hongmen Village 18.00 9.00 6.00 3.00 9.00 3 11 5 Nanjiang Town Nanjiang Village 13.50 6.75 4.50 2.25 6.75 2 8 4 Qiaodong Village 16.50 8.25 5.50 2.75 8.25 2 10 5 Jiangtian Village 33.00 16.50 11.00 5.50 16.50 5 20 10 Dawan Village 22.50 11.25 7.50 3.75 11.25 3 14 7 Tian’e Shan Village 22.50 11.25 7.50 3.75 11.25 3 14 7 Jianshan Village 13.50 6.75 4.50 2.25 6.75 2 8 4 Xiabai Village 18.00 9.00 6.00 3.00 9.00 3 11 5 Meixian Town Tuozhuang Village 33.00 16.75 11.00 5.75 16.25 5 21 10 Zheliao Village 35.62 19.50 13.00 6.50 16.13 6 24 12 Jiangyuan Village 38.07 18.75 12.50 6.25 19.32 6 23 11 Zhongjia Village 34.26 15.75 10.50 5.25 18.51 5 19 9 Total 8 39 1,219.40 692.47 489.23 203.24 472.98 53.96 204 855 411

2.2.6. Rural Abandoned Residential Houses Demolition

28. The Sub-project 2 involves rural abandoned residential house demolition. A total of 628.53 m2 houses need to be demolished, which are rural abandoned residential houses with brick-wood structure. The houses demolished totally affect 3 households with 16 persons, including 6 females. Table 2.2-4 presents the details.

Table 2.2-4: Houses demolition Affected Persons (person) area of house demolition (m2) Sub- Urba Fema Town/ship Village HHs Rural Brick- Brick- project Subtotal n le APs Subtotal APs APs concrete wood Sub- Changshou Jintang 3 16 16 0 6 628.53 628.53 0 628.53 project 2 Town Village Total 1 1 3 16 16 0 6 628.53 628.53 0 628.53

29. All three houses are abandoned old houses, as shown in the figure below.

Figure 2.2-3: Current situation of the abandoned residential house

2.2.7. Special facilities affected

30. The facilities affected include simple-built highway of 4.65 km; 2 bridges, 0.35 m channel, 0.08 km culvert pipe, 32kW pumping station; 3.85 km 10 kV HV line, 7.1km 220 V LV line, 2 transformers; 3.31km communication optical cable, 5 solar poles.

2.2.8. Affected Persons

31. The project will permanently affect 64 households with 269 persons, including 129 females, among which, 20 HHs with 83 persons will be significantly affected. All of them will be affected by LA. The Project will temporarily affect 204 households with 855 persons, including 411 females. Table 2.2-5 shows the total population affected.

Table 2.2-5: Affected Persons (Unit: HHs/person) Permanent impact Temporary impact Total Caused by LA Caused by HD Both by LA and HD Total APs Sub-project Popula Popul Populat Femal Populat Femal Popula Femal Popula HHs Female HHs Female HHs HHs HHs HHs Female tion ation ion e ion e tion e tion Subproject 1 30 123 60 30 123 60 30 123 60 Output 1 Subproject 2 4 21 9 3 16 6 3 16 6 4 21 9 4 21 9 Subproject 4 10 46 23 10 46 23 204 855 411 214 901 434 Output 2 Subproject 6 20 79 37 20 79 37 20 79 37 Total 64 269 129 3 16 6 64 269 129 204 855 411 268 1124 540

2.2.9. Affected Vulnerable Groups

32. According to the survey, 1 household with 5 persons belongs to vulnerable group within the project area. They are living in Lishuping Group of Jintang Village and became poor due to illness. Their house will be demolished, but the new house of them has already been built up.

2.2.10. Affected ethnic minority people

33. Upon survey, no ethnic minority people will be affected by the LA and HD of the Project.

2.2.11. Affected Female population

34. The Project will permanently affect 129 females and temporarily affect 411 females, viz. 540 females in total, taking up 48% of the total affected population.

2.3. Analysis on LAR Impacts

35. The project will permanently affect 64 households with 269 persons, including 129 females, among which, the significantly affected person is 20 HHs with 83 persons;

36. The state-owned land permanently occupied is river water surface and flood land, and no compensation is needed. The collective land acquisition is 170.24 mu, which is distributed in 33 villages of 14 town/ships in Pingjiang County.

37. A total of 3 houses will be demolished in the Project, affecting 3 households with 16 persons. Because the owners of these 3 houses have their second houses in the village, they choose money compensation.

38. There is no industrial and mining enterprise or major special facilities within the scope of LA and HD impacts.

3. Social-economic Survey

3.1. Overview of social-economic development in affected areas

3.1.1. Overview of social-economic development in Pingjiang County, Yueyang City

Yueyang City

39. The Project will be mainly implemented in the drainage basin of trunk stream of Miluo River in Pingjiang County, Yueyang City, Hunan Province. Located on the shore of Dongting Lake, beside the Yangtze River and serving as the confluence of rivers and lakes, Yueyang City is not only the vital communication line connecting the east, west, south and north of China and the first batch of important open areas along the rivers approved by the State Council, but also refers to an important regional hub city in the middle reaches of Yangtze River and the primary gateway city of Hunan Province. It is both the unique international trading port city in Hunan Province and a famous port city of China.

40. Yueyang City had permanent population of 5.7713 million in 2019, of which permanent urban population was 3.4166 million, taking up 59.2% of the total population; permanent rural population was 2.3547 million, taking up 40.8% of the total. The per-capita GDP was CNY 65,357, increased by 7.7% compared with last year. The annual per-capita disposable income of urban residents was CNY 35,116 in 2019, increased by 8.3% compared with the last year. The per- capita disposable income of rural residents was CNY 16,878, increased by 8.8% compared with the last year.

Pingjiang County

41. Pingjiang County is located in the northeast of Hunan Province, at the junction of Hunan Province, Hubei Province and Jiangxi Province, and at the upper and middle reaches of Miluo River. It borders on Tongcheng County of Hubei Province and Yueyang County of Hunan Province in the north, Xiushui County and Tonggu County of Jiangxi Province in the east, Miluo City in the west, and Changsha City and Liuyang City in the south. It covers a total area of 4,125 km2 and administers 24 town/ships and 542 villages (residents’ committees), referring to a mountainous area.

42. In 2019, the regional GDP of Pingjiang County reached CNY 32.249 billion, showing a year- on-year growth of 8.1%. The added value of the primary industry, the secondary industry and tertiary industry was CNY 4,962 million, CNY 12,679 million and CNY 14,608 million with the year- on-year growth of 3.2%, 8.8% and 9.1% respectively. In terms of permanent population, the per- capita GDP was CNY 33,797, showing an increase of 17.4%. The three-industry structure of the whole county was adjusted from 14.6:42.2:43.2 in the same period of last year to 15.4:39.3:45.3.

43. In 2019, the total permanent population of Pingjiang County was 954,200 with 268,800 households in total, including 499,100 males and 455,100 females; the urban population was 432,770 and rural population was 516,500 with urbanization rate of 45.87%. Total registered population of the county was 1.1213 million. The people's living standard witnessed continuous improvement. The per capita disposable income of urban residents and rural residents was CNY 25,516 and CNY 10,480 with the year-on-year growth of 8.1% and 9.4% respectively.

3.1.2. Overview of social-economic development in affected town/ships

44. Project Permanent LA and HD will totally involve 14 town/ships, including Chengguan Town, Sanyang Township, Changshou Town, Anding Town, Hongqiao Town, Meixian Town, Nanjiang Town, Dazhou Township, Wushi Town, Wukou Town, Sandun Township, Wengjiang Town, Longmen Town and Shiniuzhai Town. Their social-economic status is summarized below:

Chengguan Town:

45. Located in the middle of Pingjiang County and middle reaches of Baishui River, Chengguan Town serves as the political, economic and cultural center of Pingjiang County, covers a total area of 750,000 km2 with a total population of 165,000, administers 17 communities and 14 villages, and refers to a national key construction town and top 100 towns of Hunan Province. Chengguan Town has a total cultivated land area of 14,217 mu, including 1,753 mu paddy field and 12,464 mu dry land. In 2019, the per-capita disposable income of rural residents in Chengguan Town was CNY 13,000.

Sanyang Township:

46. Sanyang Township is located in the middle of Pingjiang County, Hunan Province, with a total area of 214 km2 and a cultivated land area of 43,415 mu. It governs 22 administrative villages and 633 village groups, with a total population of 64,713, including 53,817 agricultural population, and a total cultivated land area of 46,191 mu, including 34,504 mu paddy field and 11,687 mu dry land. Its planting industry is mainly rice, vegetables, tea, flowers and trees, and fruits. Animal husbandry mainly involves pig, cow, black goat and high-quality fish. It has 12,745 ha forest land, including 300 ha immature forest, 485 ha sparse forest, 225 ha shrubbery, 100 ha barren mountain, and its forest coverage rate is 57.3%. In 2019, the per-capita disposable income of rural residents in Sanyang Township was CNY 11,000.

Changshou Town:

47. Changshou Town is located in the east of Pingjiang County and on the east bank of Miluo River, with a total area of 494.45 km2. It governs 79 organic villages and 3 community villagers' committees, with a total population of 79,400. It is a new industrial town/ship mainly for firecrackers processing, bamboo processing, vegetable processing, soya bean products processing and hygienic materials processing. It has a total cultivated land area of 47,190 mu, including 41,105 mu paddy field. Its planting industry is mainly rice, vegetables, fruits, medicinal materials, flowers and seedlings. In 2019, the per-capita disposable income of rural residents in Changshou Town was CNY 10,562.

Anding Town:

48. Anding Town is located in the south of Pingjiang County in the northeast of Hunan Province, with a total area of 173 km2 and a cultivated land area of 52,009 mu. It governs 33 villages and 3 communities, with a total population of 73,800. It is dominated by low mountains and hills, with fertile soil, which is suitable for the growth of rice, organic tea and oil-tea camellia. The total annual production area of rice is more than 100,000 mu, and the annual output of grain is more than 50,000 t. In 2019, the per-capita disposable income of rural residents in Anding Town was CNY 11,000.

Hongqiao Town:

49. Hongqiao Town has a total population of 35,000, with 34 administrative villages, 1

neighborhood committee and 429 village groups. It has a total of about 180,000 mu mountain forest. The natural vegetation is mainly mixed forest of trees and shrubs, with some artificial forest land and fruit forests. In 2019, the per-capita disposable income of rural residents in Hongqiao Town was CNY 4,949.

Meixian Town:

50. Meixian Town is located in the northeast of Pingjiang County. It governs 36 villages, 2 villagers' committees and 603 village groups. Its total population is 60,489, with a total area of 205.3 km2, cultivated land area of 38,664 mu, and total mountain forest area of 199,866 mu. Its industrial products are mainly feldspar powder, aluminum silver powder, quartz powder, lime and firecrackers, and the agricultural and sideline products are mainly black goat, pig, native chicken, tea, orange and chestnut. In 2019, the per-capita disposable income of rural residents in Meixian Town was CNY 5,900.

Nanjiang Town:

51. Nanjiang Town is located in the north of Pingjiang County, with a total area of 196 km2 and a total population of 71,800. It governs 5 villagers' committees, 44 administrative villages and 714 village groups. In 2019, the per-capita disposable income of rural residents in Nanjiang Town was CNY 5,980.

Dazhou Township:

52. Dazhou Township is located in the northwest of Pingjiang County, with a total area of 90.5 km2 and a total population of 15,968. It governs 16 administrative villages and 156 village groups, with a total cultivated land area of 7,734 mu, including 5,264 mu paddy field. Its planting industry is mainly rice, vegetables and fruits. The animal husbandry is mainly pig, black goat and native chicken. The industrial economy is dominated by the production of lime, cement and gold. In 2019, the per-capita disposable income of rural residents in Dazhou Township was CNY 4,800.

Wushi Town:

53. Wushi Town is located in the downstream of Miluo River, with a total area of 225 km2. It governs 46 villages and 1 villagers' committee, with a total population of 81,000, and a total cultivated land area of 62,000 mu. It has formed an agricultural industry dominated by grain, pig, cotton, green food, bamboo, high-quality fruits, flowers and seedlings, improved tea, watermelon, sweet potato, etc. In 2019, the per-capita disposable income of rural residents in Wushi Town was CNY 10,539.

Wukou Town:

54. Wukou Town has a total area of 216 km2, and governs 34 villages and 1 villagers' committee, with a total population of 41,800, and a total cultivated land area of 40,000 mu. It is known as "Provincial Famous Dragon Dance Township", "Provincial Mass Culture and Art Township" and the famous "Ginger Land". In 2019, the per-capita disposable income of rural residents in Wukou Town was CNY 8,000.

Sandun Township:

55. Sandun Township is located in the central mountainous area of Pingjiang County, with a

total area of 117 km2. It governs 27 administrative villages and 371 village groups, with a total population of 31,800. It has a total cultivated land area of 17,500 mu, including 15,200 mu paddy field and 2,300 mu dry land, and a mountain forest area of 138,000 mu, including 89,000 mu oil- tea camellia forest, 30,000 mu ecological public-welfare forest, 9,000 mu artificial forest of Yueyang Forest&Paper, 5,700 mu conversion of farmland to forestry and 1600 mu artificial Alnus trabeculosa forest. In 2019, the per-capita disposable income of rural residents in Sandun Township was CNY 5,700.

Longmen Town:

56. Longmen Town is located at the source of Miluo River, with a total area of 205 km2. It governs 36 administrative villages, 1 villagers' committee and 437 village groups, with a total population of 39,013. It has a total cultivated land area of 28,628 mu, mountain forest area of 128,030 mu, and living timber reserves of 96,965 m3. It is an important timber output town/ship. Its minerals are mainly gold, and it is also the main production area of Atractylodes macrocephala Koidz. and Lilium brownii. In 2019, the per-capita disposable income of rural residents in Longmen Town was CNY 9,033.

Shiniuzhai Town:

57. Shiniuzhai Town is located in the northeast corner of Pingjiang County, with a total area of 108 km2. It governs 21 villages and 272 village groups, with a total population of 21,000. In 2019, the per-capita disposable income of rural residents in Shiniuzhai Town was CNY 4,900.

Wengjiang Town:

58. Wengjiang Town is located in the southwest of Pingjiang County, with a total area of 248.8 km2. It governs 47 villages, 1 villagers' committee, and 557 village groups. It has a total No. of households of 13,827, with a total population of 51,252. Wengjiang Town has a total cultivated land area of 30,767 mu, including 24,834 mu paddy field and 5,933 mu dry land. Its cash crops are mainly kumquat, pepper, ginger and tea. It is a forestry town, with a total mountain forest area of 264,000 mu, accounting for 69.1% of its total area. It has very rich forest resources and beautiful natural environment. In 2019, the per-capita disposable income of rural residents in Wengjiang Town was CNY 9,500. The socio-economic situation of the affected town/ships is referred to Table 3.1-1.

59. It can be seen from the table that, in the affected town/ships, the per capita income level of farmers in Chengguan Town, Sanyang Township, Anding Town, Changshou Town and Wushi Town is relatively high, which exceeds the per capita disposable income level of farmers in Pingjiang County in 2019 (CNY 10,480), among which Chengguan Town and Sanyang Township are the two town/ships most affected by LA and HD of the Project.

3.1.3. Basic information of affected villages and groups

60. There are 33 villages affected by permanent LA. The population, land area, LA area, LA impact rate and other basic information of each village are referred to Table 3.1-2.

Table 3.1-1: Socio-Economic Situation of Affected Town/ships Migrant labor Including income Population (person) Rural Per capita Income from agriculture, forestry, animal husbandry, Female economic No. of disposable sideline production and fishery (CNY 10,000) Town/ship (person income Constr Transp Caterin labor Total income of Househ Service ) (CNY Plantin Aquacu Industr uction ortation g service income farmers in Fruit Animal old industr Others Popula 10,000) g lture y industr industr industr export (CNY 2019 (CNY) HHs Labor Subtotal industr husban sideline y tion industr industr y y y (person 10,000) y dry producti y y ) on Chengguan 37,059 90,755 41,519 38,117 131,786.5 24,486.5 10,200 538 12,880 660 208.5 22,000 8,600 4,500 28,200 35,500 8,500 16,607 66,500 13,000 Town Sanyang 21,740 69,206 39,045 29,067 115,980.3 23,980.3 12,000 680 10,100 950 250.3 18,000 13,000 3,500 21,000 29,000 7,500 12,356 51,300 11,000 Township Changshou 18,921 80,700 39,746 33,894 74,825 41,916 19,700 1,320 20,120 350 426 4,650 9,860 4,280 5,800 3,698 4,621 16,580 63,000 10,562 Town Anding 18,817 76,900 45,932 32,298 90,308.1 38,917.3 18,600 1,035 18,826 200 256.3 2,540.3 6,600.5 35,000 2,500 1,250 3,500 17,124 42,000 11,000 Town Hongqiao 9,033 40,924 20,462 17,188 14,142.6 11,007.7 9,192.3 85 1,257.3 341.1 132 214.9 812.6 795.3 952.1 189 171 12,325 7,034.4 4,949 Town Meixian 1,760 70,321 30,743 29,535 27,313.7 18,569.8 12,840 771.5 4,565.8 215.8 176.7 866.5 2,862 1,828 1,034.7 456.1 1,696.6 12,300 1,323.1 5,900 Town Nanjiang 20,870 85,568 55,330 35,939 211,915 107,381 45,320 12,685 23,586 8,950 16,840 14,000 25,870 6,890 28,460 13,584 15,730 26,857 55,680 5,980 Town Dazhou 4,776 21,970 12,656 9,227 10,213 5,872 3,887 375 1,235 210 165 236 2,100 685 480 152 688 4,652 14,560 4,800 Township Wushi 18,012 77,188 35,463 32,419 186,000 46,000 8,000 3,000 24,000 8,000 3,000 90,000 30,000 5,000 6,000 4,000 5,000 13,000 52,000 10,539 Town Wukou 10,959 40,443 25,885 16,986 24,701 14,301 7,000 801 5,000 1,000 500 400 3,000 1,500 1,000 2,000 2,500 11,500 48,500 8,000 Town Wengjiang 14,951 56,021 35,500 23,529 8,500 4,000 1,500 500 1,000 500 500 100 500 600 1,500 1,000 800 20,000 35,000 9,500 Town Sandun 8,093 32,760 22,614 13,759 23,868 19,211 3,635 2,368 12,274 873 61 758 1,953 943 668 242 93 14,856 74,285 5,700 Township Longmen 10,326 41,548 21,699 17,450 23,987 15,924 10,650 662 4,263 207 142 756 2,938 1,427 1,129 387 1,426 12,772 13,544 9,033 Town Shiniuzhai 5,739 24,754 14,587 10,397 13,200 7,650 5,260 420 1,320 350 300 350 2,600 800 620 320 860 5,700 19,950 4,900 Town Data source: reports of all town/ships.

Table 3.1.-2: Basic Information of Affected Villages and Groups Population (person) Labor (person) Cultivated land (mu) Garden land (mu) Impact rate Including: No. of Other Forest land Pond Total land Expropriated Town/ship Village Group HHs Agricultural Non-agricultural Paddy Dry Tea due to LA Subtotal Subtotalpersons engaged in 2ndSubtotal SubtotalOrchard garden (mu) (mu) area (mu) area (mu) population population field land garden (%) & 3rd industries land Shiyan Village 18 588 2,466 2,466 800 650 1650 1,350 300 300 230 70 2120 220 4,290 9.42 0.22% Sanyang Township Nanyuan Village 19 564 2,990 2,760 230 1,962 1740 2236 1,778 458 463 298 165 326 246 3,271 35.14 1.07% Getengping Village 13 800 2,298 2,100 198 1,365 635 1007 830 177 265 225 40 1064 30 2,366 5.93 0.25% Tianyue Village 20 856 2,819 2,614 205 1,410 1207 1267.87 911.87 356 234 26 182 26 3,561.55 152.27 5,215.69 0.28 0.01% Sanyang Village 15 648 2,564 2,564 1,070 688 16 16 0 80 96 0.06 0.06% Chengguan Town Beiyuan Village 14 456 2,116 1,856 260 620 620 10457 857 9600 200 50 120 30 2,800 180 13,637 14.24 0.10% Fengshu Village 1 532 2,196 2,190 6 1,116 502 1051 81 970 656 106 500 50 13,000 52 14,759 4.15 0.03% Huaqiao Community 7 232 837 762 75 152 152 123 100 23 30 15 15 60 60 273 0.77 0.28% Changshou Town Jintang Village 21 235 1,066 1,030 36 566 450 468 395 73 68 16 52 46,000 46,536 18.81 0.04% Caibo Village 4 111 440 408 32 303 271 260.4 193.8 91.6 24 7 17 425 18.6 728 17.55 2.41% Changjiang Village 20 504 2,230 2,210 20 1,200 800 980 780 200 0 11,700 10 12,690 26.42 0.21% Nanjiang Town Jiangtian Village 27 778 3,061 3,011 50 1,908 1400 2880 1,550 1330 0 0 15 20 2,915 1.47 0.05% Shijiang Village 35 890 4,113 4,000 113 1,500 1300 2026 1,905 121 620 550 70 2,646 1.50 0.06% Yaozhou Village 8 321 1,290 1,290 0 640 156 840 580 260 346 60 286 1,186 4.08 0.34% Dazhou Township Banqiao Village 20 504 2,230 2,210 20 1,200 800 980 780 200 0 0 0 980 7.39 0.75% Zhengdong Village 13 312 1,210 1,199 11 416 280 960 896 64 60 30 30 2,403 36 3,459 1.26 0.04% Hongqiao Town Tianyue Village 12 213 960 920 40 526 238 661 609 52 25 25 4,568 45 5,299 0.87 0.02% Sandun Township Hupei Village 18 535 2,305 2,295 10 1,200 1200 1610 1,230 380 159 120 39 6,700 95 8,564 1.35 0.02% Longmen Village 8 30 150 150 62 20 105 60 45 0 205 6 316 1.20 0.38% Longmen Town Tulong Village 5 110 636 636 312 100 270 242 28 0 687 12 969 1.50 0.15% Yongning Village 1 413 2,606 2,560 46 1,260 1260 819 700 119 75 25 50 1,300 2,194 2.58 0.12% Changshou Town Huayuan Village 20 486 2,410 2,320 90 1,280 770 2080 1,570 510 380 190 30 160 1,300 85 3,845 1.26 0.03% Shiniuzhai Town Jiangshi Village 27 604 2,482 2,457 25 820 820 1990 1,700 290 0 17,300 40 19,330 1.60 0.01% Changtian Village 32 780 3,685 3,685 1,540 827 2578 2,170 408 495 115 380 3,650 107 6,830 1.26 0.02% Anding Town Fujia Village 15 298 1,506 1,496 10 800 300 838 462 0 420 300 120 160 20 1,438 1.25 0.09% Wengjiang Town Hedong Village 17 530 2,076 2,076 1,196 1196 940 480 460 120 120 8,418 20 9,498 1.67 0.02% Dongshan Village 16 232 2,520 2,520 0 1,320 350 1547 1,317 230 12,300 17 13,864 0.85 0.01% Wushi Town Sushan Village 10 301 1,370 1,340 30 510 100 1275 775 500 0 1,829 20 3,124 1.02 0.03% Sanlian Village 19 430 1,430 1,426 4 620 620 1542 920 622 250 80 100 70 10,800 40 12,632 1.26 0.01% Wukou Town Donggang Village 17 548 2,686 2,464 222 1180 566 1600 940 660 450 50 400 9,650 11,700 2.38 0.02% Tuanshan Village 22 735 3,043 2,900 143 2,010 2010 1069 900 169 262 62 200 3,961 52 5,344 0.86 0.02% Meixian Town Zhezhuang Village 22 556 2,549 2,500 49 1,098 1098 1070 788 282 0 6,540 32 7,642 0.87 0.01% 14 33 274 7,113 33,624 32,944 680 16,150 11,755 20954 15759 4819 2696 697 1499 500 91771 627 116048 170.24 0.15% Data source: reports of all town/ships and villages.

3.2. Socio-economic situation of APs

61. To further understand the basic situation of the residents in project villages and project impact to local residents, the resettlement survey team conducted a questionnaire survey on the living standards of the affected villages and farmers

3.2.1. Basic information of AHHs

62. 269 persons from 64 households in 33 villages of 14 town/ships of Pingjiang County will be directly affected by the permanent acquisition of the Project. All of them will be affected by LA, among them, 16 persons from 3 households will also be affected by HD. The sampling method is adopted for questionnaire on family living standard. It selects 39 AHHs with 165 persons in 7 town/ships and 12 villages, including 4 town/ships and 7 villages which are relatively affected by LA, and 3 town/ships and 5 villages with different levels of per capita income as the survey objects, accounting for 60.94% of the total permanently AHHs, including 20 households with 83 persons whose income loss affected by LA exceeds 10% and 3 households with 16 persons who are affected by HD.

63. The gender, age, education level and occupation of sampling households are listed in Table 3.2-1. Among the sampling households, there are 88 males and 77 females. 83.12% of the population is between 17 and 60 years old. 68.79% of the labor force have received junior high school and higher education, of which 26.03% are farmers, 29.33% are workers and 8.30% are businessmen.

Table 3.2-1: Sampling ratio Impact classification Affected HHs Sampling HHs Sample rate LA (household) 64 39 60.94% HD (household) 3 3 100.00% Population (person) 269 165 61.34% Female (person) 129 77 59.69%

Table 3.2-2: Gender, Age, Education Level and Occupation of Sampled Households Content Information of sampling APs Male % Female % Total % Educational level Junior college degree or above 20 22.50% 17 22.08% 37 22.30% Junior middle school 41 46.25% 36 46.75% 77 46.48% Primary school 24 27.50% 21 26.62% 45 27.09% Illiterate and semiliterate person 3 3.75% 4 4.55% 7 4.12% Total 88 100.00% 77 100.00% 165 100.00% Occupation Farmer 21 24.38% 22 27.92% 43 26.03% Worker 26 30.00% 22 28.57% 48 29.33% Organizations and institutions 4 5.00% 3 3.90% 7 4.48% Businessman 8 8.75% 6 7.79% 14 8.30% Student 13 15.00% 12 14.94% 25 14.97% Others 15 16.88% 13 16.88% 28 16.88% Total 88 100.00% 77 100.00% 165 100.00% HHs 39 Population 165 Average population per household 4.23

3.2.2. Property situation and living conditions of AHHs

64. In the family living standard survey, special attention has been paid to the property situation and living conditions of the AHHs, which provided the basis for assessing the income loss of the affected households and making a reasonable resettlement and rehabilitation measures. The land resources, living conditions and family property situation of sampling households are listed in Table 3.2-2, and the house and living conditions are listed in Table 3.2-3.

Table 3.2-3: Land Resources, Living Conditions and Family Property Situation of Sampling Households Type Agency Total Average amount per household I. Household basic data Household 39 II. Land resources (1) Paddy field mu 40 1.03 (2) Vegetable plot mu 8.2 0.21 (3) Dry land mu 13 0.33 (4) Pond mu 0.00 (5) Garden land mu 0.00 (6) Forest land mu 43 1.10 III. Residential status Housing area m2 10784 276.51 IV. Family property situation 1. Electrical equipment (1) TV Set 49 1.26 (2) Fridge Set 44 1.13 (3) Air conditioner Set 73 1.87 (4) Washing machine Set 41 1.05 (5) Water heater Set 45 1.15 (6) Mobile phone Set 120 3.08 (7) Computer Set 19 0.49 2. Transportation tools (1) Car Set 34 0.87 (2) Motorbike Set 45 1.15

Table 3.2-3: House and Living Conditions of Sampling Households Type Total Percent I. Household basic data (Nos.) 39 II. House area (1) Below 80 m2 0 0.00% ˄2˅80m2—140m2 7 17.95% ˄3˅141m2—200m2 19 48.72% (4) Over 200 m2 13 33.33% III. House structure 1. Main house (1) Frame 0 0.00% (2) Brick-concrete 37 94.87% (3) Brick-wood 2 5.13% (4) Civil 0 0.00% (5) Makeshift houses 0 0.00% 2. Accessory house (1) Frame 0 0.00% (2) Brick-concrete 6 15.38% (3) Brick-wood 15 38.46% (4) Civil 0 0.00% (5) Steel shed 0 0.00%

3.2.3 Income and expenditure of AHHs

65. Through sampling survey, the income and expenditure of AHHs are clearly shown. The annual income and expenditure of the sampling households are referred to Table 3.2-4.

Table 3.2-4: Annual Income and Expenditure of the Sampling Households Average Average amount per amount per Percent to per Type Total household capita capita income (%) (CNY/HH) (CNY/person) Planting income 127,800 3,276.92 774.55 7.73% Animal husbandry 34,000 871.79 206.06 2.06% income Operational Household 245,000 6,282.05 1,484.85 14.82% income income Work income 1,107,000 28,384.62 6,709.09 66.98% Transfer income 8,820 226.15 53.45 0.53% Other income 130,000 3,333.33 787.88 7.87% Subtotal 1,652,620 42,374.87 10,015.88 100.00% Planting 62,600 1,605.13 379.39 4.62% expenditure Animal husbandry 20,700 530.77 125.45 1.53% expenditure Household Other operational 137,000 3,512.82 830.30 10.12% expenditure expenditures Daily living 563,500 14,448.72 3,415.15 41.61% expenditure Educational 233,000 5,974.36 1412.12 17.20% expenditure

Average Average amount per amount per Percent to per Type Total household capita capita income (%) (CNY/HH) (CNY/person) Medical 68,600 1,758.97 415.76 5.06% expenditure Favor pattern 169,000 4,333.33 1024.24 12.48% expenditure Other 100,000 2,564.10 606.06 7.38% expenditures Subtotal 1,354,400 34,728.21 8,208.48 100.00% Per capita disposable income 10,015.88

人均可支配收入结构图Structural Chart of Per Capita 8000 Disposable Income

7000

6000

5000

4000 Unit: CNY 单3000 位：元

2000 Operational income Planting income Other income 1000 Animal husbandry income Work income Transfer income 0 种植业收入养殖业收入营性收入务工收入转移性收入其他收入 Series1 774.55 206.06 1484.85 6709.09 53.45 787.88

Figure 3.2-1: Structural Comparison Chart of Per Capita Disposable Income of Sampling Households

Percent to per capita % income人均收入占比 (%)

7.73% 7.87% 0.53% 2.06% 14.82%

66.98%

Planting种植业Animal收入 husbandry养殖业收入 Operational营性收入 Work income务工收入 Transfer转移性收入 Other其他收入 income income income income income Figure 3.2-2: Proportion of Per Capita Disposable Income of Sampling Households

66. It can be seen that the work income as one of the important sources of farmers' income plays an important role in improving the family living conditions of AHHs in the project area.

3.3. Willingness of LA, HD and resettlement

67. The family living standard survey also included public consultation for APs, which involved related issues concerning the willingness of LA, HD and resettlement. The answers to these questions better reflect the willingness of AHHs to LA, HD and resettlement, and provided a reference for the preparation of RP and the implementation of resettlement activities (Table 3.3- 1). The willingness of sampling households to LA, HD and resettlement is referred to Table 3.3-1.

68. On the willingness survey of 36 HHs affected by LA , (i) 100% HHs are satisfied or basically satisfied with the current LA and compensation policy, and they support the project construction; (ii) 88.89% HHs think the impact of LA is moderate or limited, and 11.11 HHs% think the impact is large; and (iii) 63.89% HHs prefer cash compensation option, 27.78% HHs prefer land adjustment, and 8.33% HHs prefer other option. In addition, all three HHs affected by HD also support the project and the compensation policy. As for grievance redress procedures, HHs responded that they usually express their needs/demands through their village committees.

Table 3.3-1: Willingness of Sampling Households to LA, HD and Resettlement Type AHHs % I. Households affected by LA 36 1. Sample size of answers to question "do you support the project construction?” (1) Support 33 91.67% (2) Basically support 3 8.33% (3) Not support 0 0.00% 2. Sample size of answers to question "are you satisfied with the current policy?” (1) Satisfied 27 75.00% (2) Basically satisfied 9 25.00% (3) Dissatisfied 0 0.00% 3. Sample size of answers to question "the impact of LA and HD on families?” (1) Large 4 11.11% (2) Moderate 22 61.11% (3) Not very 10 27.78% 4. Sample size of answers to question "after LA, what kind of resettlement scheme can you accept (you can choose repeatedly)?” (1) Land adjustment 10 27.78% (2) Cash compensation 23 63.89% (3) Others 3 8.33% II. Household affected by HD 3 1. Sample size of answers to question "do you support the project construction?” (1) Support 2 66.67% (2) Basically support 1 33.33% (3) Not support 2. Sample size of answers to question "are you satisfied with the current policy?” (1) Satisfied 3 100% (2) Basically satisfied (3) Dissatisfied 3. Sample size of answers to question "what channels do you usually use to respond to demands?” (1) Village committee 3 100% (2) Town/ship people's government (3) County (4) Others

4. Legal Framework and Policies

69. The preparation and implementation of the RP comply with relevant PRC laws and regulations of Hunan Province and ADB SPS. Compensation standards and restoration measures adopted in the RP will be implemented in the process of LA and HD.

70. Since the LAR activities will not be conducted in just one point of the implementation stage, more recent regulations if of higher standard, will apply at the time that Detail Engineering Design (DED) are prepared and updated RP prepared for particular subprojects.

4.1. Main laws, regulations and policies of PRC

4.1.1. National laws and regulations

1) Land Administration Law of the PRC (effective from January 1, 1999, amended on August 26, 2019 and implemented on January 1, 2020); 2) Regulation on the Protection of Basic Farmlands (effective from January 1, 1999); 3) Rural Land Contract Law of the PRC (implemented on March 1, 2003, amended on December 29, 2018 and implemented on January 1, 2019); 4) Measures for the Administration of Management-Right Transfer of Rural Land (amended draft for comments), officially implemented on January 1, 2020; 5) Decision on Deepening Reform and Strengthening Land Management (issued by the State Council on October 21, 2004); 6) Notice of the General Office of the State Council about Forwarding the Guideline of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-Loss Farmers (LLFs) (GBF [2006] No. 29); 7) Property Law of the People's Republic of China (effective from October 01, 2007); 8) Cultivated Land Occupation Tax of the PRC (effective from September 1, 2019); 9) Regulations on the Disclosure of Government Information of the PRC (effective from May 1, 2008, amended on and implemented on May 15, 2019); 10) Urgent Notice of the General Office of the State Council on Further Strengthening the Management of Land Acquisition and House Demolition and Safeguarding the Legitimate Interest of the Masses (GBF [2010] No. 15); 11) Notice of the Ministry of Land and Resources on Doing a Better Job in Land Acquisition Management (June 26, 2010); 12) Emergency Notice of the General Office of the Ministry of Land and Resources on Strengthening the Management of Illegal Land Acquisition (GTZDF [2013] No. 28); and 13) Other applicable laws and regulations.

4.1.2. Laws and regulations of Hunan Province

1) Methods of Hunan Province for Implementing the Land Administration Law of the PRC (promulgated on September 2, 2000, amended and implemented on March 31, 2012); 2) Notice of the People's Government of Hunan Province on Adjusting

Compensation Standards for Land Acquisition in Hunan Province (effective from January 1, 2018); 3) Measures of Hunan Province for Implementing Regulations on House Acquisition and Compensation on State-owned Land (effective from April 1, 2014); 4) Notice of the General Office of the People's Government of Hunan Province on Issuing the Administrative Measures of Hunan Province for the Collection of Land Reclamation Fees (effective from July 17, 2019); 5) Measures of Hunan Province for Implementing the Provisional Regulations on Cultivated Land Occupancy Tax of the PRC (effective from November 12, 2008); 6) Notice by General Office of the People’s Government of Hunan Province about Forwarding the Opinions of the Provincial Department of Human Resources and Social Security on Doing a Good Job in Social Security for Land-Loss Farmers (LLFs) (effective from April 11, 2014).

4.1.3. Relevant regulations of Pingjiang County and Yueyang City

1) Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (effective from January 1, 2018); 2) Notice of Yueyang Municipal People's Government on Issuing the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Yueyang City (effective from May 6, 2019); 3) Measures for Implementing House Acquisition and Compensation on State-owned Land in Yueyang City (effective from October 29, 2012); 4) Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Compensation and Resettlement of Collective Land Acquisition and House Demolition and Relocation in Pingjiang County (effective from January 7, 2020); 5) Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Social Security for Land-Loss Farmers (LLF) in Pingjiang County (PZBF [2018] No. 26) A summary of relevant laws and regulations is provided in Annex.

4.2. Resettlement Policy of the ADB

71. ADB SPS’s policies and principles on involuntary resettlement are adopted for the project.

72. The objectives of the SPS IR safeguards 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. The principles are presented in the table below:

Table 4.2-1: Resettlement Principles Principles Screen the project early on to identify past, present, and future involuntary resettlement (i) 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. (ii) 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. 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 (iii) 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. 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 (iv) 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. Improve the standards of living of the displaced poor and other vulnerable groups, (v) 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. Develop procedures in a transparent, consistent, and equitable manner if land (vi) 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. Ensure that displaced persons without titles to land or any recognizable legal rights to (vii) land are eligible for resettlement assistance and compensation for loss of nonland assets. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income (viii) and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process (ix) 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. 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 (x) benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. Pay compensation and provide other resettlement entitlements before physical or (xi) economic relocation. Implement the resettlement plan under close supervision throughout project implementation. 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 (xii) achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.3.1. Differences between ADB's involuntary resettlement policy and Domestic LAR policies and Gap filling Measures

The differences between ADB SPS and PRC’s policies and local practices as well as gap filling measures are identified as presented in Table below.

Diffeences between PRC Policies and ADB Requirements and Gap Filling Measures Taken in the RP

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS Policy Principle 1: Screen the project early on to identify past, Management Regulations for Construction Project Land Use Pre- The resettlement plan and due diligence has been present, and future involuntary resettlement impacts and risks. examination (Decree No.42 of MLR) requires to screen the area undertaken to identify all involuntary resettlement Determine the scope of resettlement planning through a survey and type of the land to be provided for the project before impacts and risks, including identification of issues and/or census of displaced persons, including a gender approving the FSR or checking the project proposal. of gender and vulnerable group. analysis, specifically related to resettlement impacts and risks. Before land acquisition, local LRB conducts detailed measurement survey (DMS). Before house demolition, the house demolition agency conducts detailed measurement survey. PRC regulations do not assess past impacts. There is no specific legal provision to include analysis of gender and vulnerability in resettlement planning. However, in line with local government policies and program, special needs and measures for women and vulnerable group can be identified and assessed. In particular, identification of vulnerable group and support measures can be developed based on the (i) Five- Guarantee Households and (ii) Minimum Living Guarantee System. Please see Policy Principle 5 for more details. Policy Principle 2: Carry out meaningful consultations with At national level, Land Administration Law of the People’s The RP includes (a) adequate provisions of affected persons, host communities, and concerned Republic of China, State Council's Decision on Deepening consultations, including with the poor and nongovernment organizations. Inform all displaced persons of Reform and Managing Strictly Land (the State Council made vulnerable groups; (b) documentation of the their entitlements and resettlement options. Ensure their [2004]28), Guidelines on Improving the System of Land consultation and information disclosure; (c) participation in planning, implementation, and monitoring and Acquisition Compensation and Resettlement (the Ministry of Land grievance redress mechanism. evaluation of resettlement programs. and Resources made [2004] number 238), and Regulations on Pay particular attention to the needs of vulnerable the Compensation of Houses on State-owned Land and groups, especially those below the poverty line, the landless, Compensation (2011) have similar requirements on consultation the elderly, women and children, and Indigenous Peoples, and and participation. In the province, relevant regulations and those without legal title to land, and ensure their participation policies also require consultation, participation and information in consultations. disclosure throughout the land acquisition and resettlement Establish a grievance redress mechanism to receive and procedures. facilitate resolution of the affected persons’ concerns. Support Although there are consultation and participation activities the social and cultural institutions of displaced persons and conducted by local government, only some government’s their host population. procedural documents are documented. To improve the Where involuntary resettlement impacts and risks are documentation, all activities need to be properly documented. highly complex and sensitive, compensation and resettlement As per law, a grievance redress mechanism is established at the decisions should be preceded by a social preparation phase. local government where farmers can first raise their concerns with the village collective or bring their grievances through the legal system directly. However, the documentation system is not adequate. In line with local government programs, the needs of vulnerable groups affected by any project can be identified and assessed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System. In practice, local village committee, civil affairs bureau, social security bureau and other government agencies pay attention to the needs of the poor and vulnerable

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS groups. Policy Principle 3: Improve, or at least restore, the livelihoods Land Administration Law [2019] requires that for collective land The RP includes adequate measures of: (i) of all displaced persons through (i) land-based resettlement compensation, the provincial government needs to formulate and compensation based on replacement costs; (ii) strategies when affected livelihoods are land based where publish district comprehensive land prices for Land Acquisition, relocation of affected structures; and (iii) livelihood possible or cash compensation at replacement value for land and social security budget should be considered. restoration. when the loss of land does not undermine livelihoods, (ii) State Council [2004] number 28 states that (1) where the project prompt replacement of assets with access to assets of equal concerned generates profits the people displaced can use the or higher value, (iii) prompt compensation at full replacement land as investment to have a right to share in those profits; (2) cost for assets that cannot be restored, and (iv) additional within a planned urban area, improvement of employment system revenues and services through benefit sharing schemes where and social security to safeguard AP’s lives. (3) out of a planned possible. urban area, land resettlement, employment resettlement, or displacement resettlement shall be implemented (4) carry out Policy Principle 4: Provide physically and economically employment trainings. displaced persons with needed assistance, including the Ministry of Land and Resources [2004] 238 and relevant following: (i) if there is relocation, secured tenure to relocation provincial policies require that (1) Agricultural production land, better housing at resettlement sites with comparable resettlement; (2) re-employment resettlement; (3) using the land access to employment and production opportunities, as share of the project; and (4) provision of replacement land. integration of resettled persons economically and socially into Compensation rates for affected assets are administratively their host communities, and extension of project benefits to determined through application of prescribed valuation host communities; (ii) transitional support and development processes. assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Policy Principle 5: Improve the standards of living of the As per legal provisions, poor and vulnerable groups are defined Identification of vulnerable groups has been made; displaced poor and other vulnerable groups, including women, as those (i) who fall within the five-guarantee households; and (ii) and the RP includes the measures for vulnerable to at least national minimum standards. In rural areas provide eligible for the Minimum Living Guarantee System. group. them with legal and affordable access to land and resources, The local village/community committee, civil affairs bureau, social and in urban areas provide them with appropriate income security bureau and other agencies pay attention to the needs of sources and legal and affordable access to adequate housing. the poor and vulnerable groups: a) Five-Guarantee program provide production and living assistance (e.g. food, clothing, fuel, education and burial expenses to targeted vulnerable people (the 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); b) Those eligible for the Minimum Living Guarantee System are provided with living subsidy each month; c) Other assistance - urgent cash assistance if the HHs have serious illness in addition to the subsidy paid under rural cooperative medical care system; cash or in-kind assistance for the women headed HHs provided by the women’s federation; priority given by the village committee to be included in the endowment insurance system for the farmers affected by LA. Regulations on the House Demolition and Compensation on State-owned Land (2011) states that: If the residential houses of any individuals are to be demolished and they meet the conditions for affordable housing, the concerned city and county people's

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS governments shall give priority to providing affordable housing to such persons. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing. Principle 6: Develop procedures in a transparent, consistent, Not relevant as the project does not involve land acquisition N/A and equitable manner if land acquisition is through negotiated through this means. settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. Policy Principle 7: Ensure that displaced persons without Based on the Regulations on the Demolition and The RP provides resettlement assistance and titles to land or any recognizable legal rights to land are eligible Compensation of Houses on State-owned Land (2011), the illegal compensation for loss of non-land assets. for resettlement assistance and compensation for loss of non- houses and temporary structures which were constructed after land assets. the approval period will not be compensated. As good practice, (for households who are not eligible for compensation for houses at replacement value) the history or reason why the structure has no certification/license and their socio-economic conditions and vulnerability will be assessed by the local government and concerned bureaus to determine the necessary assistance that can be provided to them to ensure that they will be able to restore or will not be worse-off. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low- rent housing. Policy Principle 8: Prepare a resettlement plan (RP) Except for large-scale water sector projects, there are no RP has been prepared for the project elaborating on elaborating on displaced persons’ entitlements, the income specific requirements to prepare a resettlement plan which is affected persons’ entitlements, income and and livelihood restoration strategy, institutional arrangements, similar to the RP required by ADB. livelihood restoration measures, institutional monitoring and reporting framework, budget, and time-bound arrangements, monitoring and reporting framework, implementation schedule. budget, and time-bound implementation schedule. Policy Principle 9: Disclose a draft resettlement plan, The RP will be disclosed to affected including documentation of the consultation process in a timely villages/communities and affected people. 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. Policy Principle 10: Conceive and execute involuntary Refer to Article 12 of No. 28 Decree, the total resettlement The RP includes full costs of LAR, which are resettlement as part of a development project or program. cost should be included in the total project cost. All compensation included in the overall project cost. Include the full costs of resettlement in the presentation of and administrative costs are included. project’s costs and benefits. For a project with significant Decree 29 issued in 2006 states land compensation and involuntary resettlement impacts, consider implementing the resettlement should ensure that the living standards and involuntary resettlement component of the project as a stand- sustainability of the livelihood of the land-loss farmers are

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS alone operation. ensured; and that vocational training and social security programs should be properly implemented for land-loss farmers. Any shortfall in the resettlement budget should be provided by the local government. Policy Principle 11: Pay compensation and provide other Regulations generally require compensation and other The includes measures ensuring that APs receive resettlement entitlements before physical or economic financial forms of resettlement assistance to be paid before their compensation and entitlement before displacement. Implement the resettlement plan under close physical or economic displacement. displacement. supervision throughout project implementation. Local government is responsible for supervising throughout the project implementation period, but only focused on if the AHs have received the full compensation Policy Principle 12: Monitor and assess resettlement Except for large-scale water projects, there are no Coordination mechanism between the PMO and outcomes, their impacts on the standards of living of displaced requirements to monitor and evaluate outcomes, including concerned LAR implementing agencies have been persons, and whether the objectives of the resettlement plan impacts on standards of living of displaced persons. established in the RP to properly monitor and have been achieved by taking into account the baseline Local government is responsible for supervising throughout supervise LAR activities. The enhanced information conditions and the results of resettlement monitoring. Disclose the project implementation period however, monitoring reports sharing will include the disclosure of monitoring monitoring reports. are not disclosed reports. Monitoring reports will be disclosed in project areas.

4.3. Cut-off date of eligibility

73. The cut-off date for eligibility for compensation is as officially announced by the PMO. Announcement can be made through distribution of resettlement information booklet or posting notices in the village community boards. Any newly claimed land, newly built house or settlement in the project area by APs after this date will not be entitled to the compensation or subsidization. After discussion, the cut-off date of this project is 31 August 2020.

4.4. Compensation and subsidy standard

4.5.1. Land compensation standard

(1) Compensation for land acquisition

Land compensation standard

74. The annual output value per mu is determined based on the analysis and calculation of the land output per mu from 2017 to 2019 and the price of agricultural products in 2019 in Pingjiang County. After analysis and calculation, the annual output value of cultivated land was 2,121 CNY/mu for paddy field, 1,658 CNY/mu for dry land, 1,060.5 CNY/mu for arbor forest and 1,326 CNY/mu for garden plot. Table 4.5-1 presents the calculation of output value for cultivated land per mu.

75. According to the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (effective from January 1, 2018) and the Notice of the Yueyang Municipal People's Government on Adjusting the Compensation Standard for Land Acquisition in Yueyang City (effective from January 1, 2018), the compensation standard for land acquisition in Pingjiang County was 53,200 CNY/mu in Area I and 47,400 CNY/mu in Area II. For acquisition of paddy fields, implement 1.2 times of the above standard; for acquisition of cultivated land (except paddy fields), grassland (except other grasslands), rural roads, reservoir surface, pond surface, ditches, facility agricultural land, raised path through fields and construction land, implement the above standard; for acquisition of garden plots and forest land, implement 0.8 times of the above standard; for acquisition of unused land, implement 0.6 times of the above standard; for acquisition of basic farmland, implement the standards for paddy fields of the area. Tthis compensation standard for land acquisition includes the sum of land compensation fee and resettlement subsidy, of which 40% is land compensation fee, 60% is resettlement subsidy. The compensation standard for attachments and young crops on the ground is also shown in the following relevant sections. The permanent LA scope of the Project is involved in both Area I and Area II. Table 4.5-2 shows the analysis of calculation compliance between various compensation standards and resettlement cost in Pingjiang County issued by Yueyang City.

Table 4.5-1: Calculation of Output Value of Cultivated Land per mu Paddy field Dry land Chinese Content Early season Middle-season Fruits and Fruits and Late rice Rape Rape Cotton Peanut herbal rice rice vegetables vegetables medicine Output (kg) 358 491 449 95 1,088 95 74 297 401 1,838 Main Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5 products Output value (CNY) 859.2 1,237.32 1,131.48 323 2,720 323 325.6 487.08 1,283.2 4,595 Output value of byproduct 85.92 123.73 113.15 32.3 272 32.3 32.56 48.71 128.32 459.5 (CNY) 2017 Subtotal of output value (CNY) 945.12 1,361.05 1,244.63 355.3 2,992 355.3 358.16 535.79 1411.52 5,054.5 Sowing proportion of various 0.38 0.24 0.38 0.39 0.24 0.39 0.03 0.1 0.01 0.28 crops Output value of various crops 359.15 326.65 472.96 138.57 718.08 138.57 10.74 53.58 14.12 1,415.26 per mu (CNY) Output value per mu (CNY) 2,015.41 1,632.27 Output (kg) 378 506 426 95 1,571 95 74 301 405 1,838 Main Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5 products Output value (CNY) 907.2 1,275.12 1,073.52 323 3,927.5 323 325.6 493.64 1,296 4,595 Output value of byproduct 90.72 127.51 107.35 32.3 392.75 32.3 32.56 49.36 129.6 459.5 (CNY) 2018 Subtotal of output value (CNY) 997.92 1,402.63 1,180.87 355.3 4,320.25 355.3 358.16 543 1,425.6 5,054.5 Sowing proportion of various 0.37 0.25 0.39 0.39 0.22 0.38 0.03 0.1 0.01 0.26 crops Output value of various crops 369.23 350.66 460.54 138.57 950.46 135.01 10.74 54.3 14.26 1,314.17 per mu (CNY) Output value per mu (CNY) 2,269.46 1528.48 Output (kg) 369 544 406 101 1,095 101 76 333 416 2,056 Main Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5 products Output value (CNY) 885.6 1,370.88 1,023.12 343.4 2,737.5 343.4 334.4 546.12 1331.2 5,140 Output value of byproduct 88.56 137.09 102.31 34.34 273.75 34.34 33.44 54.61 133.12 514 (CNY) 2019 Subtotal of output value (CNY) 974.16 1,507.97 1,125.43 377.74 3,011.25 377.74 367.84 600.73 1,464.32 5,654 Sowing proportion of various 0.39 0.25 0.4 0.39 0.24 0.38 0.03 0.1 0.01 0.28 crops Output value of various crops 379.92 376.99 450.17 147.32 722.7 143.54 11.04 60.07 14.64 1,583.12 per mu (CNY) Output value per mu (CNY) 2,077.1 1,812.41 Three-year average annual output value 2,121 1,658 (CNY)

Table 4.5-2: Compensation Standard for Permanent Acquisition of Collective Land for Project Compensation Output value Compensation Correction Remarks Land type standard (CNY/mu) in 2017 - 2019 multiple (times) coefficient for Zone I Zone II (CNY/mu) Zone I Zone II land types Area I: Chengguan Town includes Yuechitang Community, Qiming Compensation Community, Jingfuping Community, Minjianlu Community, Jinhua Standard for LA in 53,200 47,400 Community, Huaqiao Community, Tongjialing Community, Shuyuan Pingjiang County Community, Siqian Community, Sizhulu Community, Bitan Paddy field 63,840 56,880 2,121 30.1 26.8 1.2 Community, Shoujiaping Community, Jingkan Community, Fuqiaojie Dry land 53,200 47,400 1,658 32.1 28.6 1 Community, Pingshang Community, Baihuatai Community, Rural roads 53,200 53,200 1,658 32.1 32.1 1 Hongjiaduan Community, Chengdong Village, Chengxi Village, Reservoir waters 53,200 47,400 1,658 32.1 28.6 1 Chengxin Village, Chengping Village, Beicheng Village, Beiyuan Pit and pond waters 53,200 47,400 1,658 32.1 28.6 1 Village, Sanyang Village, TianyueVillage and Fengshu Village; Ditches 53,200 47,400 1,658 32.1 28.6 1 Sanyang Township includes Changchong Village, Getengping Construction land 53,200 47,400 1,658 32.1 28.6 1 Village, Nanyuan Village, Shiyan Village, Xinlian Village, Daipingyuan Garden land 42,560 37,920 1,326 32.1 28.6 0.8 Village, Daxi Village, Jinwo Village, Panhong Village, and Xinhe Village; Nanjiang Town includes Gaoping Village, Jiangtian Village, Forest land 42,560 37,920 1,060.5 40.1 35.8 0.8 Qiaodong Village, Longfeng Village, Qiaoxi Village, Chongyi Village; Changjiang Village, Zaoxi Village, and Hongmen Village; Changshou Town includes Taipingduan Village, Dongyi Village, Zhifu Village, Xinyuan Village, Donghu Village, Xingang Village, Baofeng Village, and Fuping Village; Anding Town includes Shanghuang Village, Unused land 31,920 28,440 0 0.6 Shanbei Village, Guantang Village, Hengchong Village, Anding Village, Xiaotian Village, Anyong Village, and Wushi Village; Wushi Town includes Wugongshi Community and Yeshiping Village. Other town/ships and villages (communities) not listed in Area I belong to Area II.

76. According to the calculation, the materialized input cost per mu of paddy field and dry land in Pingjiang County is 685 CNY/mu and 465 CNY/mu respectively (Table 4.5-3), so the net output value of paddy field and dry land is 1,436 CNY/mu and 1,193 CNY/mu respectively.

Table 4.5-3: Calculation of Materialized Cost per mu of Cultivated Land No. Content Unit Paddy field Dry land Remarks Total 685 465 1 Seed fee CNY 30 20 2 Chemical fertilizer fee CNY 165 165 3 Pesticide fee CNY 80 70 4 Agricultural film fee CNY 20 20 5 Leveling machinery fee CNY 160 60 6 Irrigation and drainage fee CNY 40 40 7 Harvesting machinery fee CNY 180 80 8 Other costs CNY 10 10

77. According to the comparative analysis of price between the risk free return on compensation unit price and net output value (Table 4.5-4), it can be found that the compensation standards of paddy field and dry land adopted by Pingjiang County can meet the requirements of replacement cost.

Table 4.5-4: Analysis of Replacement Price Net output value Bank interest rate Risk-free income Surplus Land compensation fee (CNY/mu) of land Land type (over three years) (CNY/mu) (CNY/mu) (CNY/mu) Zone I Zone II Zone I Zone II Zone I Zone II Paddy field 63,840 56,880 2.75% 1,755.6 1,564.2 1,436 319.6 128.2 Dry land 53,200 47,400 2.75% 1,463 1,303.5 1,193 270 110.5

(2) Compensation unit price for young crops and trees

78. The compensation for young crops and trees is determined according to the relevant provisions of the Compensation and Resettlement Measures for Collective LA and HD in Pingjiang County: the compensation for young crops in paddy field, dry land and pond is 2,975 CNY/mu, 2,125 CNY/mu and 800 CNY/mu respectively. The compensation unit price for tea garden, orchard, arbor forest and shrub forest is 7,225 CNY/mu, 12,000 CNY/mu, 2,040 CNY/mu and 850 CNY/mu respectively. Table 4.5-5 shows the compensation unit price of young crops and trees.

Table 4.5-5: Compensation Unit Price of Young Crops (Trees) (Unit: CNY/mu) Content Compensation for young crops (trees) Remarks Paddy field 2,975 Dry land 2,125 Pond surface 800 Orchard 12,000 Arbor forest 2,040 Shrub land 850

(3) Compensation for temporary land

79. Temporary land for the Project will only involve paddy field, dry land and forest land. Temporary land compensation includes four parts: land compensation for construction period, compensation for young crops (trees), land reclamation fees and subsidy for reaching the production period.

1) Land compensation for construction period

80. Land compensation for construction period is calculated based on the occupation period and the annual output value of land per mu. According to the construction schedule and time limit for the Project, temporarily occupied land will be compensated based on 1 year. Table 4.5-1 shows the calculation of output value of cultivated land per mu.

2) Compensation unit price for young crops and trees

81. The APs will be informed before commencement of TLO and civil works. If the standing crops could not be harvested before TLO, therefore, such crops will be compensated at the replacement price. Table 4.5-3 shows the compensation for trees and forest land.

3) Unit price of reclaiming temporarily occupied land

82. Based on the analysis and calculation of planned reclamation measures, the average unit price of reclaiming cultivated land is shown below: 11,952 CNY/mu for paddy field, 7,762 CNY/mu for dry land and 3,881 CNY/mu for arbor forest respectively. Table 4.5-6 shows the analysis of unit price of reclaiming temporarily occupied land.

4) Subsidy for reaching production period

83. The subsidy for reaching production period means the compensation for the period from the reclamation to the recovery of normal cultivation level of the land. The subsidy for paddy field and dry land for reaching production period is calculated based on the average output value of three years. The subsidy for paddy field and dry land for reaching production period is 2,121 CNY/mu and 1,966 CNY/mu respectively.

Table 4.5-6: Analysis of Average Unit Price of Reclaiming Land (Unit: CNY/mu) Reclaiming paddy field into paddy field Reclaiming dry land into dry land No. Content Unit Unit price Investment Unit price Investment Quantity Quantity (CNY) (CNY) (CNY) (CNY) I Engineering measures cost 9,026 5,600 1 Stripping and backfilling of tillage soil m3 200 9.5 1,900 200 9.5 1,900 2 Site clearing 500 500 3 Land development 5,626 3,000 3.1 Filling bottom soil m3 334 15 5,010 200 15 3,000 3.2 Laying field ridge Work-day 7 88 616 4 Water conservancy facility 1,000 200 II Biochemical measures cost 1,016 740 1 Organic compound fertilizer T 0.2 2,000 400 0.15 2000 300 2 Soil ripened for production Work-day 7 88 616 5 88 440 III Other costs 1,675.5 1,269 1 Preliminary work cost 406.17 252 2 Supervision cost 180.52 112 3 Completion acceptance cost 270.78 168 4 Owner's management fee 217.99 137.4 5 Compensation fee for borrow area 600 600 IV Contingencies 234.35 152.2 V Total CNY/mu 11,952 7,762 VI Design value CNY/mu 11,952 7,762

(4) Endowment insurance fees for LLFs

84. According to the Notice by General Office of the People’s Government of Hunan Province about Forwarding the Opinions of the Provincial Department of Human Resources and Endowment insurance on Doing a Good Job in Endowment insurance for Land-loss Farmers (LLFs) (XZBF [2014] No. 31) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26), "When the land requisition agency acquires land, the endowment insurance fee of LLFs shall be paid in one time according to the standard of no less than 30 CNY/m2.”

4.5.2. Compensation standard for house demolition and relocation

(1) House compensation standard

1) Calculate the compensation price of house resettlement

85. The rural house structure affected by LA required for project construction is divided into brick-concrete structure and brick-wood structure. Houses will be reconstructed by the method of unified planning and self-construction by AHHs. According to the typical design of newly-built houses with the same type of structure and the calculation of engineering quantities, the areas of typical brick-concrete and brick-wood house are 258.52 m2 and 105.56 m2 respectively. See Figures 4.5-1 ~ 2 for the house elevation.

60x180 white brick Figure 4.5-1: Elevation of Brick-concrete Structure House

Figure 4.5-2: Elevation of Brick-wood Structure House

86. Based on the typical designed quantities of each structural house, the compensation price for the house is calculated as follows: a. Compensation price of the house includes house construction cost and other construction cost, including house construction, electricity, water supply and drainage engineering cost; other construction costs include survey and design fees and supervision fees. The total cost of the house includes partial and itemized price, price of measure projects, fees, taxes, survey and design fees, and supervision fees. When calculating the house construction cost, old materials of the original house are not considered to be used. b. Calculation of house construction costs does not consider the use of old materials of the original house. c. Excluding decoration cost. d. Preparation of documents: according to the Code for Measurement of Bill of Quantities of Project (2013, Hunan), Pricing Method of Construction Project in Hunan Province (2014), Consumption Standard for Construction Project in Hunan Province (2014) and Consumption Standard for Construction Decoration Project in Hunan Province (2014). e. Labor wages: according to relevant regulations of A Notice of House and Urban-Rural Development of Hunan Province on Issuing the Unit Price of Labor Wages for Construction Projects in Hunan Province in 2019 (XJJ [2019] No. 130). f. Price level is based on the price in the 4th quarter of 2019.

87. According to calculation, the construction cost (excluding decoration cost) of each typical house structure is shown below: 1,048 CNY/m2 for brick-concrete structure and 897 CNY/m2 for brick-wood structure (Table 4.5-7).

Table 4.5-7: Calculation for Unit Cost for Main Works of Various Typical House Structures Part II Other costs for Part II Other costs for main works of project construction (CNY Unit cost (CNY/m2) house structure (CNY 10,000) 10,000) Building Amount Building Water Structure area (CNY Survey area Survey supply (m2) 10,000) Building Electrical and Supervision (m2) Project and Supervision Subtotal and Subtotal Subtotal works engineering design cost cost design cost drainage cost cost system

Brick- 258.5 27.08 24.96 24.15 0.61 0.2 2.12 1.32 0.8 258.5 966 51 31 1048 concrete Brick- 105.6 9.46 8.72 8.36 0.25 0.11 0.74 0.46 0.28 105.6 826 44 27 897 wood

2) Newly release compensation standard for house acquisition in Pingjiang County

88. According to the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County issued by the PCG on January 7, 2020, the compensation standards of main structure of residential houses in Pingjiang County are shown below: CNY 1,184/m2 for brick-concrete structure and CNY 904/m2 for brick-wood structure. For brick-concrete structure, the newly issued compensation price is higher than the house cost calculated above by CNY 136/m2, and for brick-wood structure, the newly issued compensation price is higher than the house cost calculated above by CNY 7/m2.

89. It can be seen that the latest compensation standard for house acquisition issued by the PCG can meet the requirements of replacement cost for house reconstruction. AHHs have choses cash compensation during the FSR; it will be reconfirmed during the RP update.

3) House compensation standards to be adopted

(1) Rural house compensation standard

90. According to the principle of resettlement cost of house compensation and in combination with the fairness and rationality of the local acquisition and compensation policy, the latest Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County issued by the PCG on January 7, 2020 will be implemented. The compensation standard is shown below: 1,184 CNY/m2 for brick-concrete structure and 904 CNY/m2 for brick-wood structure of the main house; 560 CNY/m2 for brick-concrete structure and 432 CNY/m2 for brick-wood structure of the decoration works; 880 CNY/m2 for brick-concrete structure of simple structure and 160 CNY/m2 for steel shed.

(2) Urban house compensation standard

91. Urban house demolition is not involved under the project LA, so not relevant in this project.

(2) Other compensation standards

92. According to the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County, other compensations mainly include: 160 CNY/m2 (lump sum) for ancillary facility; rewarding 200 CNY/m2 for those who sign contracts as scheduled, and rewarding 200 CNY/m2 for those who remove as scheduled; house building subsidy: 30,000 CNY/HH; removing cost: 1,500 CNY/HH; transfer fees: 800 CNY/household per month; tomb relocation cost: 2,300 CNY/tomb, and subsidy for purchasing land for new tomb: 2,000 CNY/tomb (Table 4.5-8).

Table 4.5-8: Compensation Standard for House and Others Compensation standard Compensation category Grade (CNY/m2) Brick- Main structure 1,184 Formal House Rural house concrete Decoration 560 structures Brick-wood Main structure 904

Decoration 432 Simple Brick-concrete 880 structure Steel shed 160 Auxiliary facilities 160 CNY/m2 Reward for signing contracts 200 CNY/m2 on schedule Reward for relocating on Others 200 CNY/m2 schedule House building subsidy 30,000 CNY/HH Moving costs 1,500 CNY/household per times Grave 2,300 CNY/tomb

4.5.3. Compensation standard for demolition and reconstruction of special facilities

93. Table 4.5-9 shows the compensation of unit price for special facilities of recent similar projects in the region.

Table 4.5-9: Unit Price for Planning and Processing of Special Items No. Content Agency Unit price (CNY) (I) Transportation Simple-built highway km 800,000 Bridge and culvert of simple-built highway Set 500,000 Pedestrian bridge Set 10,000 (II) Power transmission and transformation facilities 10kV high voltage line km 150,000 220 V LV line km 100,000 Transformer Set 30,000 (III) Communication facilities Communication optical cables km 120,000 (IV) Municipal facilities Sewage pipe km 350,000 (V) Water conservancy facilities Channels km 80,000 Culvert pipes km 200,000 Pumping plants kW 2,000 (VI) Other facilities Solar street lamps Piece 6,000

4.5.4. Other costs

94. Other costs shall be compiled according to the Planning and Design Code for Resettlement and Land Acquisitions in Irrigation and Hydropower Projects. 1) Preliminary work cost: various expenses incurred from the preliminary work of resettlement and land acquisition for construction, which is calculated at 2.5% of the sum of the rural LAR compensation, urban LAR compensation, and special facility reconstruction compensation. 2) Comprehensive survey and design research cost: cost of required survey, layout, design and scientific research for land acquisition and resettlement design, which is calculated at 4% of the sum of the rural LAR compensation and urban LAR compensation plus 1% of special facility reconstruction compensation. 3) Implementation management cost: including local government implementation management cost and construction agency implementation management cost. The former is calculated at 4% of the sum of the rural LAR compensation and urban LAR compensation plus 2% of special facility reconstruction compensation; the latter is

calculated at 1.2% of the sum of the rural LAR compensation, urban LAR compensation, and special facility reconstruction compensation. 4) PMO initiation cost: cost for official rooms, vehicles and equipment procurement and other required costs for the start-up and operation of the PMO, which is calculated at CNY 3 million. 5) Technical training cost: cost for enhancing the production skills and cultural accomplishment of the rural APs and the management level of LAR cadres, which is calculated at 0.5% of rural resettlement compensation. 6) Monitoring and evaluation (M&E) cost: cost for LAR comprehensive supervision, monitoring and evaluation, which is calculated at 2% of the sum of the rural LAR compensation and urban LAR compensation plus 1% of special facility reconstruction compensation.

4.5.5. Physical contingency

95. The physical contingency is prepared with reference to the Planning and Design Code for Resettlement and Land Acquisitions in Irrigation and Hydropower Projects, and is calculated according to the sum of the above expenses multiplied by the rate, which is 12% in the FSR stage.

4.5.6. Relevant tax

(1) Cultivated land occupation tax

96. According to the relevant provisions from Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax, (Decree No. 511 of the State Council of the PRC), Rules for the Implementation of Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax (Decree No. 49 of the Ministry of Finance of the PRC and State Administration of Taxation) and Methods of Hunan Province for Implementing Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax (No. 231 of People's Government of Hunan Province), the Project is a water conservancy project, and the cultivated land occupation tax is levied according to the tax rate of 2 CNY/m2 (i.e. 1,333 CNY/mu).

(2) Land reclamation fee

97. According to the Notice of the General Office of the People's Government of Hunan Province on Issuing the Administrative Measures of Hunan Province for the Collection of Land Reclamation Fees (XZBF [2019] No. 38), the project area in Pingjiang County is a medium-sized area in Hunan Province, with the charging standard of 66,000 CNY/mu for paddy field and 38,000 CNY/mu for dry land.

(3) Forest vegetation recovery cost

98. According to the provisions from Notice on Adjusting the Collection Standard of Forest Vegetation Restoration Fees and Guide Economical and Intensive Use of Forest Land (CS [2015] No. 122), the collection standard is: 10 CNY/m2 (i.e. 6,667 CNY/mu) for arbor forest, and 6 CNY/m2 (i.e. 4,000 CNY/mu) for shrub forest.

99. Rural residents shall be exempted from forest vegetation restoration fees for house construction according to the prescribed standards.

4.5. Entitlement matrix

100. According to the results of the impact survey at this stage and the applicable policies of the Project, the table of entitlement matrix (Table 4.6-1) has been prepared, which will be reconfirmed or updated during the RP update.

Table 4.6-1 Entitlement Matrix Type of Scope of Policies of compensation & Towns/Villages AHH/APs Compensation standards impacts impact resettlement/rehabilitation Land compensation standard Paddy field: 63,840 CNY/mu for Class I and 56,880 (1) Money compensation: the CNY/mu for Class II compensation standard for LA Dry land: 53,200 CNY/mu for Class I and 47,400 CNY/mu announced by Hunan Province; for Class II (2) Agricultural resettlement Garden land: 42,560 CNY/mu for Class I and 37,920 There are 14 measures: Measures to adjust CNY/mu for Class II town/ships and 33 cultivated land within the group Forest land: 42,560 CNY/mu for Class I and 37,920 villages, including are adopted in 11 town/ships and CNY/mu for Class II Chengguan Town, 11 villages such as Nanyuan Rural roads, ditches, water surface, construction land and Sanyang Township, There are 64 Village in Sanyang Township. curtilage will be compensated according to dry land Changshou Town, Collective households with (3) Non-agricultural job standard. Collective land Anding Town, Hongqiao land 269 persons, placements: There are more than Compensation standard for young crops 170.24 mu Town, Meixian Town, acquisition including 129 5,000 public service jobs, public Paddy field; 2,975 CNY/mu, dry land: 2,125 CNY/mu, Nanjiang Town, Dazhou females. welfare jobs or project jobs for Orchard: 12,000 CNY/mu, pond: 800 CNY/mu, Township, Wushi Town, APs, including more than 2,000 Arbor forest: 2,040 CNY/mu, shrub forest: 850 CNY/mu. Wukou Town, Sandun jobs suitable for women; Payment of compensation for LA will be carried out in Township, Wengjiang (4) Skills training: Provide free accordance with the village regulations and conventions Town, Longmen Town agricultural and non-agricultural jointly formulated by the villagers. Shiyan Village of and Shiniuzhai Town skills training to APs. Sanyang Township retains 2% of the land compensation (5) Endowment insurance: fee, Nanyuan Village of Sanyang Township and Beiyuan Provide old-age insurance to the Village of Chengguan Town retain 5% of the land affected farmers. compensation fee, which are all used for collective construction, and all land compensation fees of other villages are distributed to households. The houses on the collective There are 3 Money compensation: All the HD on the land are households with demolished houses are Replacement price of HD and subsidy and compensation: Jintang Village of collective 628.53m2, all of 16 persons, abandoned houses, and they only Main house: 1,184 CNY/m2 for brick-concrete structure, Changshou Town land which are including 6 need money compensation and 904 CNY/m2 for brick-wood structure residential females. do not need resettlement. houses Temporary land compensation includes four parts: land compensation for construction period, compensation for There are 204 young crops (trees), land reclamation fees and subsidy for A total of Temporary households with reaching the production period. 1,219.4 mu of 8 town/ships and 39 Money compensation: occupation of 855 persons, Land compensation during the construction period (1 year collective land villages compensation to APs. land including 411 output value per mu): 2,121 CNY/mu for paddy field, 1,658 is occupied. females. CNY/mu for dry land, 1,060.5 CNY/mu for arbor forest and 1,326 CNY/mu for garden land;

Type of Scope of Policies of compensation & Towns/Villages AHH/APs Compensation standards impacts impact resettlement/rehabilitation Land reclamation fee: 11,952 CNY/mu for paddy field, 7,762 CNY/mu for dry land and 3,881 CNY/mu for arbor forest; Subsidy for reaching the production period: 2,121 CNY/mu for paddy field and 1,966 CNY/mu for dry land. Young crops, Villagers, village trees, other communities and Young crops agricultural All towns/villages of LA agencies The corresponding money The compensation standard for young crops is the same and ground production impacts. determined compensation will be paid to APs. as above. attachments facilities and according to ancillary ownership buildings Special subsidies will be provided For the vulnerable group of 1 HH identified in this RP has to families of vulnerable groups house and does not need to be resettled. affected according to their degree of difficulty. In the process of updating RP, all the vulnerable groups Types of support: identified in the future who meet the conditions will be a) For those vulnerable groups entitled to the subsidies and support policies. who need relocation and resettlement and are unable to purchase (build) houses, after verification and confirmation by the PCG and public announcement without objection, the house purchasing (building) subsidy of CNY 1 household with 5 50,000/household will be given; Vulnerable persons (will be LA and HD 1 town b) The vulnerable groups who groups updated during the meet the conditions of the RP update) minimum living allowance, after being verified and confirmed by the civil affairs agency and having no objection after being publicized, will be given the monthly minimum living allowance according to the corresponding standards; c) Special care and help will be given to vulnerable groups in the process of LAR, such as organizing labor to assist in moving and building houses; d) Priority will be given to the

Type of Scope of Policies of compensation & Towns/Villages AHH/APs Compensation standards impacts impact resettlement/rehabilitation families of vulnerable groups in the employment and job service under the same opportunities; e) The labor force of vulnerable groups will be trained in suitable skills to help solve the long-term livelihood

5. Resettlement and Rehabilitation Measures

101. The following income and livelihood strategy are presented below. The Pingjiang PMO will facilitate and assist in tapping various agencies to provide the necessary awareness and training, and also providing APs to access job opportunities, including jobs created during construction.

5.1. House demolition

102. After continuous design adjustment and scheme optimization, the only sub-project involving HD in the Project is Sub-project 2, which requires a total of 628.53 m2 houses to be demolished, involving 1 town/ship and 1 village, i.e., Jintang Village of Changshou Town. It affects 3 households with 16 persons, including 6 females. They are all rural houses and rural population.

103. According to the investigation and consultations, these 3 houses are all abandoned houses, and the householders have other houses. Only cash compensation is needed without house rebuilding and resettlement.

5.2. Livelihood Restoration

5.2.1. Analysis of impact on LA

104. In the Project, 170.24 mu of collective land will be permanently expropriated, affecting 64 households with 269 persons in 14 town/ships and 33 villages, including 129 females; 87.21 mu of farmland cultivated land will be permanently expropriated, involving 12 towns and 29 villages, affecting 53 households with 219 persons, including 106 females. Table 2.3-3 shows the distribution of farmland cultivated land resources and APs of villages affected by LA.

105. According to the analysis of the impact on LA in Section 2.3.2, the loss rate of farmland cultivated land of each village is between 0.01% and 1.14%, and even exceeds 10% for 189 people from 46 households.

106. According to the calculation of the annual income loss of the APs of the Project, there are 83 people from 20 households whose per capita income loss rate is more than 10%, which are distributed in Shiyan Village of Sanyang Township, Nanyuan Village, Getengping Village, Beiyuan Village of Chengguan Town, Fengshu Village and Zhengdong Village of Hongqiao Town. Among them, 90% are distributed in Sanyang Township and Chengguan Town.

107. Sanyang Township and Chengguan Town are located in the planning area of the county. The secondary and tertiary industries are developed. The labor force engaged in the secondary and tertiary industries accounts for 78.5% of the total labor force. Therefore, the farmers' dependence on land is not high.

Table 5.2-1: Distribution of APs with Income Loss Rate of More Than 10% AP with income loss rate of more than 10% No. Town/ship Village AHHs No. of APs

1. Shiyan Village 1 5 2. Sanyang Township Nanyuan Village 10 42 3. Getengping Village 1 5 4. Beiyuan Village 5 20 Chengguan Town 5. Fengshu Village 1 5

6. Hongqiao Town Zhengdong Village 1 2 7. Wukou Town Donggang Village 1 4 Total 4 7 20 83

5.2.2. Income restoration plan

108. In April 2020, with the participation of BWR, BNR, BARA, BEE, Planning Bureau and LAHDC, the RDA, the PMO investigated the natural resource conditions such as land within the scope of the project impacts, learned about the development and employment situation of the local secondary and tertiary industries, and convened cadres of county, town/ship, village and group as well as some AP representatives involved in the Project to discuss the income restoration program for APs.

109. After joint consultation by all parties, money compensation, agricultural development, employment in secondary and tertiary industries, participation in endowment insurance and production skill training are to be adopted for income restoration of APs.

110. A summary of income restoration measures is shown in Table 5.2-2.

Table 5.2-2: Summary of Income Restoration Measures for APs in the Project APs due to LA Restoration mode Employment in Agricultural Participation in Township Village Population Money secondary and AP training Remarks HHs Labor (person) measures (labor endowment (person) compensation tertiary industries (labor force) force) insurance (labor force) Total 33 64 269 126 269 51 75 228 126 Shiyan 3 17 8 √ √ √ √ Sanyang Nanyuan 14 53 25 √ √ √ √ Getengping 3 15 7 √ √ √ √ Fengshu 2 9 4 √ √ √ √ Beiyuan 5 20 9 √ √ √ √ Sanyang 1 3 1 √ √ √ √ Chengguan Huaqiao 1 4 2 √ √ √ √ Community Tianyue 1 2 1 √ √ √ √ Changshou Jintang 4 21 10 √ √ √ √ Caibo 3 17 8 √ √ √ √ Changjiang 4 18 8 √ √ √ √ Nanjiang Jiangtian 1 5 2 √ √ √ √ Shijiang 2 9 4 √ √ √ √ Yaozhou 2 7 3 √ √ √ √ Dazhou Banqiao 2 7 3 √ √ √ √ Zhengdong 1 2 1 √ √ √ √ Hongqiao Tianyue 1 3 1 √ √ √ √ Sandun Hupei 1 4 2 √ √ √ √ Collectively-owned Longmen √ √ √ Longmen land subject to LA Tulong 1 5 2 √ √ √ √ Huayuan 1 4 2 √ √ √ √ Changshou Yongning 1 4 2 √ √ √ √ Shiniuzhai Jiangshi 2 8 4 √ √ √ √ Daqiao √ √ √ Collectively-owned Anding Fujia √ √ √ land subject to LA Wengjiang Taxing 1 5 2 √ √ √ √ Dongshan 1 3 1 √ √ √ √ Wushi Sushan 1 4 2 √ √ √ √ Sanlian 1 3 1 √ √ √ √ Wukou Donggang 2 8 4 √ √ √ √ Tuanshan 1 4 2 √ √ √ √ Meixian Tuozhuang 1 5 2 √ √ √ √

Table 5.2-3: Recovery Measures for Income of APs with Income Loss Rate of More Than 10% APs due to LA Recovery mode Town/ship Village Population Labor Money Agricultural measures Employment in secondary and tertiary Participation in AP training HHs (person) (person) compensation (labor force) industries (labor force) endowment insurance (labor force) Total 7 20 83 35 83 17 18 71 35 Shiyan 1 5 2 √ √ √ √ Sanyang Nanyuan 10 42 17 √ √ √ √ Getengping 1 5 2 √ √ √ √ Fengshu 5 20 9 √ √ √ √ Chengguan Beiyuan 1 5 2 √ √ √ √ Hongqiao Zhengdong 1 2 1 √ √ √ √ Wukou Donggang 1 4 2 √ √ √ √

1) Money compensation and distribution

111. The Project will provide money compensation to all villages and groups and farmer households affected by LA. The compensation standard adopted is as follows: • Zone I: CNY 63,840/mu for paddy field, CNY 53,200/mu for dry land, CNY 42,560/mu for garden land and forest land, and CNY 31,920/mu for unused land; • Zone II: CNY 56,880/mu for paddy field, CNY 47,400/mu for dry land, CNY 37,920/mu for garden land and forest land, and CNY 28,440/mu for unused land; • Compensation for young crops and trees: CNY 2,975/mu for paddy field, CNY 2,125/mu for dry land, CNY 800/mu for pond, CNY 7,225/mu for tea garden, CNY 12,000/mu for orchard, CNY 2,040/mu for arbor forest and CNY 850/mu for shrub forest.

112. The distribution plan of land compensation is determined by the meeting held within village and group on the basis of full discussion and consultation, and implemented after being approved by the town/ship people's government and publicized. Project villages and groups in the project area have drawn up village regulations and conventions, forming the traditional method of distribution of LA compensation. The distribution method of project LA compensation will follow the village regulations and conventions. After survey, according to the village regulations and agreements, Shiyan Village of Sanyang Township will withdraw and retain 2% of the land compensation fee, and Nanyuan Village of Sanyang Township and Beiyuan Village of Chengguan Town will withdraw and retain 5%, which will be used for the construction of collective public utilities. And the land compensation fee of all other villages will be distributed to households. See Table 5.2-4 for the allocation scheme of land compensation fee of each affected village.

113. After receiving money compensation according to the above distribution plan, farmer households affected by LA can take the following livelihood restoration measures such as agricultural development and non-agricultural economic activities with the assistance of the government.

2) Agricultural development measures

(1) In-group land adjustment

114. The land reallocation scheme adopted per village is based on village-level consultations for the project. Laijia Group in Nanyuan Village of Sanyang Township, Lishuping Group in Jintang Village of Changshou Town, Shanghua Group in Huayuan Village, Group 10 in Yongning Village, Guantou Group in Jiangtian Village of Nanjing Town, Group 3 in Yaozhou Village of Dazhou Township, Group 9 in Banqiao Village, Jianghuan Group in Tulong Village of Longmen Town, Tanli Group in Taxing Village of Wengjiang Town, Bajie Group in Sanlian Village of Wukou Town and Chengjia Group in Tuanshan Village of Meixian Town are relatively rich in surplus land resources, with per capita cultivated land of 0.95 - 1.5 mu. Through the joint consultation between the village groups and the APs, it is proposed to adopt the method of cultivated land adjustment within the groups, and reallocate and adjust the land according to per capita land area after LA, so as to carry out reallocation of village land for the APs.

115. The land reallocation involves 111 people from 29 households, including 42 people from 10 households whose income loss rate exceeds 10%.

Table 5.2-4: Land Readjustment Scheme and Allocation Scheme of Land Compensation Fee Allocation scheme of land compensation fee and land readjustment Town/ship Village Group resettlement scheme Getengping Groups 8, 9 Directly distribute the land compensation and young crops fees to the Village and 10 affected household, without land readjustment. Zhuzhu, Hejin, Directly distribute the land compensation and young crops fees to the Shiyan Xinwu, affected household in which 2% are withdrawn and retained by village Village Chuanwu, collective for public affairs in the village, without land readjustment. Baiwei The land compensation fee is evenly distributed according to the household registered population in the group, and the village collective Nanyuan Groups in reserves 5% for the public affairs in the village. In addition, the land Village Laijia Village readjustment within the group is carried out. The young crops fee belongs to the landless households. Huaqiao Suburban Directly distribute the land compensation and young crops fees to the Community service station affected household, without land readjustment. Directly distribute the land compensation and young crops fees to the Beiyuan Shuishan and affected household in which 5% are withdrawn and retained by village Village Shoujia Groups collective for public affairs in the village, without land readjustment. Chengguan Fengshu Directly distribute the land compensation and young crops fees to the Town Maxi Group Village affected household, without land readjustment. Sanyang Sanyang Directly distribute the land compensation and young crops fees to the Village Group affected household, without land readjustment. Tianyue Directly distribute the land compensation and young crops fees to the Group 9 Village affected household, without land readjustment. Changshou Jintang Lishuping Directly distribute the land compensation and young crops fees to the Town Village Group affected household, without land readjustment. Caibo Daxingping Directly distribute the land compensation and young crops fees to the Nanjiang Village Group affected household, without land readjustment. Town Changjiang Zhangjiatang Directly distribute the land compensation and young crops fees to the Village Group affected household, without land readjustment. The land compensation fee is evenly distributed according to the Yaozhou household registered population in the group, and the land adjustment Group 3 Village within the group is carried out. The young crops fee belongs to the Dazhou affected households. Town The land compensation fee is evenly distributed according to the Banqiao household registered population in the group, and the land adjustment Group 9 Village within the group is carried out. The young crops fee belongs to the affected households. Zhengdong Directly distribute the land compensation and young crops fees to the Group 8 Hongqiao Village affected household, without land readjustment. Town Tianyue Directly distribute the land compensation and young crops fees to the Group 5 Village affected household, without land readjustment. Sandun Hupei Directly distribute the land compensation and young crops fees to the Group 8 Township Village affected household, without land readjustment. Longmen The land compensation fee is owned by the group collective and used for Group 8 Village public affairs. Longmen The land compensation fee is evenly distributed according to the Town Tulong Jianghuan household registered population in the group, and the land adjustment Village Group within the group is carried out. The young crops fee belongs to the affected households. The land compensation fee is evenly distributed according to the Huayuan Shanghua household registered population in the group, and the land adjustment Changshou Village Group within the group is carried out. The young crops fee belongs to the Town affected households. Tingyou The land compensation fee is owned by the village collective and used for Group 7 Area, public affairs.

Allocation scheme of land compensation fee and land readjustment Town/ship Village Group resettlement scheme Yongning Village The land compensation fee is evenly distributed according to the Yangsi Area, household registered population in the group, and the land adjustment Yongning Group 10 within the group is carried out. The young crops fee belongs to the Village affected households. Changjiang Directly distribute the land compensation and young crops fees to the Zuitou Group Village affected household, without land readjustment. The land compensation fee is evenly distributed according to the Nanjiang Jiangtian household registered population in the group, and the land adjustment Guantou Group Town Village within the group is carried out. The young crops fee belongs to the affected households. Shijiang Shangxu Directly distribute the land compensation and young crops fees to the Village Group affected household, without land readjustment. Shiniuzhai Jiangshi Directly distribute the land compensation and young crops fees to the Youpu Group Town Village affected household, without land readjustment. Daqiao The land compensation fee is owned by the group collective and used for Daqiao Group Anding Village public affairs (collective owned land). Town The land compensation fee is owned by the group collective and used for Fujia Village Haijia Group public affairs (collective owned land). The land compensation fee is evenly distributed according to the Wengjiang Taxing household registered population in the group, and the land readjustment Tanli Group Town Village within the group is carried out. The young crops fee belongs to the affected households. Dongshan Groups 3 and Directly distribute the land compensation and young crops fees to the Village 13 affected household, without land readjustment. Wushi Town Lishan Directly distribute the land compensation and young crops fees to the Group 4 Village affected household, without land readjustment. The land compensation fee is evenly distributed according to the Sanlian household registered population in the group, and the land readjustment Bajie Group Wukou Village within the group is carried out. The young crops fee belongs to the Town affected households. Donggang Directly distribute the land compensation and young crops fees to the Shuikou Group Village affected household, without land readjustment. The land compensation fee is evenly distributed according to the Tuanshan Chengjia household registered population in the group, and the land readjustment Meixian Village Group within the group is carried out. The young crops fee belongs to the Town affected households. Tuozhuang Directly distribute the land compensation and young crops fees to the Group 9 Village affected household, without land readjustment.

(2) Improvement of land productivity

116. The Project will improve land productivity, promote agricultural economic development and increase farmers' income through the following construction contents.

• Subproject 1 will effectively protect farmland on both sides of the river from flood scourge, significantly reduce losses caused by flood scourge, improve land productivity and promote agricultural economic development by building flood and waterlogging control projects along the trunk stream of Miluo River and improving flood and waterlogging control standards along the river; • Through the pollution treatment of livestock farm and centralized collection and treatment of rural domestic sewage, the impact and damage of pollutants on the soil environment can be effectively reduced, the land quality can be improved, and the land productivity can be improved;

• Through the promotion of eco-farming demonstration, the implementation of soil testing and formulated fertilization and green pest control projects will help improve the land and crop yield, promote the sustainable development of relevant agriculture in Pingjiang County, improve the quality and market competitiveness of crops, promote the development of regional economy and increase farmers' income; • The implementation of eco-farming demonstration subproject will promote the development of rural LURT in Pingjiang County, encourage the development of scale management and characteristic development, improve land productivity, improve the quality and market competitiveness of crops, and increase farmers' income.

3) Non-agricultural job opportunity

117. Through the interview and investigation of resettlement agency and relevant villagers’ committees in the affected town/ships, it is known that Chengguan Town and Sanyang Township are rich in secondary and tertiary industrial resources, such as Siqian Industrial Park, Tianyue New Area Industrial Park and Commercial Street in Chengguan Town, as well as Pingjiang E- commerce Industrial Park, Tianyue Logistics Park and Yihuacheng in Sanyang Township, which can provide many employment opportunities for APs due to LA.

118. In addition, the Project can provide a certain No. of temporary employment opportunities during the construction and a certain No. of operation and management posts during the operation phase of the Project for LLF. See Table 5.2-5 for the non-agricultural employment scheme for LLFs. A total of 158 people from 35 households in 22 villages of 11 towns are employed, including 41 people from 20 households with income loss rate of more than 10%.

Table 5.2-5: List of Non-agricultural Employment for LLF

Types Description Total employment opportunities Income Potential APs

Siqian Industrial Park in Chengguan Town, Tianyue New Area Industrial Park, Pingjiang E-commerce Industrial Enterprise Park, Tianyue Logistics Park and Yihuacheng in More than 2,000 jobs per year More than CNY 3,000 per month workers Sanyang Township can provide a large No. of job opportunities for local people.

A large No. of construction personnel are required during According to the calculation, the the period of the comprehensive water environment project construction can provide 4,500 improvement along the main stream section of the Miluo job opportunities for 14 town/ships River, the Phase I component of urban and rural affected by land acquisition, including rainwater and sewage diversion and reconstruction, the Chengguan Town, Sanyang Township, More than CNY 150 per day rural domestic sewage treatment component, the Hongqiao Town, Sandun Township, integrated component of safe water supply, the Longmen Town, Changshou Town, 35 households construction of eco-farming demonstration sites, the Nanjiang Town, Shiniuzhai Town, with 158 persons, construction of wetland protection and restoration Anding Town, Wengjiang Town, Wushi including 75 Employment in component of Huangjin River National Wetland Park Town, Wukou Town and Meixian Town laborers, in 11 projects Some management and technical personnel are townships and 22

required during the comprehensive water environment villages improvement along the main stream section of the Miluo According to the calculation of the DI, River, the Phase I component of urban and rural 419 persons of management, rainwater and sewage diversion and reconstruction, the More than CNY 4,000 per month engineering and others are needed in rural domestic sewage treatment component, the the operation period. integrated component of safe water supply, the construction of wetland protection and restoration component of Huangjin River National Wetland Park Entrepreneurship The commercial street, new buildings and other places Supermarkets, clothing stores and in business in Pingjiang County can provide some entrepreneurial CNY 60,000-100,000 per year catering stores can be set up industry opportunities. Pingjiang County is a large tourist destination. After the The demand for tour guides, drivers, completion, the project will further improve the living Tourism catering and other tourism service Over CNY 50,000 per year environment of Pingjiang County and promote the industries is increasing. development of tourism industry there. Total

4) Endowment insurance for land loss farmers (LLF)

119. In order to further improve the endowment insurance policy of the LLF and safeguard their legitimate rights and interests, PCG will include the LLF into the current endowment insurance system, arrange the endowment insurance fees in full amount, and implement the common burden of the government, collectives and individuals, so as to ensure that the living standard of the LLF will not be reduced due to the land acquisition and guarantee their long-term livelihood. Adhere to the working principles that the endowment insurance fees of LLF are paid before LA, like “LA after land protection”, “those who use the land are responsible for it” and “the land will be guaranteed to the full extent”. If the endowment insurance fees of LLF are not paid in accordance with the provisions, the application for land use approval and land license shall not be accepted.

120. There are 228 persons eligible for endowment insurance in the Project, among which 71 people have lost more than 10% of their income due to LA.

5) AP training

121. The PMO and local government will carry out production skills training for the LLF to adapt to the new production and living environment. See Section 5.6 for details.

(3) Post-LAR living standard of APs

122. It can be seen from the socio-economic survey of the APs in the project area (see Table 3.2-5 for income and expenditure statistics) that the main income sources of the villagers in the project area are working income and operational income, accounting for 66.98% and 14.82% respectively, while the income from planting and breeding industry accounts for only 7.73% and 2.06% respectively.

123. It can be seen that LA mainly affects the agricultural income. It can be seen that LA has insignificant impact on the total household income of the majority of LLF.

124. It can be predicted through compensation for LA and relevant measures, APs can directly obtain cash income, which can be used to improve productivity, expand operation and increase operational income: • through land readjustment, part of the cultivated land can be recovered by APs to minimize agricultural losses; • through project and secondary and tertiary industries in the project area, more employment and job opportunities can be provided, and wage income and working income can be increased; • through the participation in endowment insurance, APs can get long-term life security.

5.3. Relocation and reconstruction planning of special facilities

125. The special facilities affected mainly include: transportation facilities, power transmission and transformation facilities, communication facilities, water conservancy and hydropower facilities and other facilities. The compensation fee will be paid to their responsible agencies at replacement price and restored them.

5.4. Help and support measures for vulnerable groups

(1) Vulnerable groups affected

126. According to the survey, the identified 1 household with 5 persons is poverty-stricken within the scope of the project impacts. They live in Lishuping Group of Jintang Village and become poor due to illness. Affected by the Project, the houses will be demolished, which is abandoned house. As there is other house, only compensation is needed without resettlement.

127. In the process of updating the RP, more detailed identification of affected vulnerable households will be carried out. The updated RP will further investigate and identify the vulnerable groups such as the people with serious disease, disabled people and the poor. Any person that is identified and to be identified as vulnerable groups will be given special help and support as follows. During the implementation period, supports for vulnerable groups will be monitored and reported to ADB and Pingjiang PMO to ensure that their quality of life is steadily improved.

(2) Help and support measures for vulnerable groups

f) For those vulnerable groups who need relocation and resettlement and are unable to purchase (build) houses, after verification and confirmation by the PCG and public announcement without objection, the house purchasing (building) subsidy of CNY 50,000/household will be given; g) The vulnerable groups who meet the conditions of the minimum living allowance, after being verified and confirmed by the civil affairs agency and having no objection after being publicized, will be given the monthly minimum living allowance according to the corresponding standards; h) Special care and help will be given to vulnerable groups in the process of LAR, such as organizing labor to assist in moving and building houses; i) Priority will be given to the families of vulnerable groups in the employment and job service under the same opportunities; j) The labor force of vulnerable groups will be trained in suitable skills to help solve the long-term livelihood.

5.5. Measures for women development

(1) Female affected

128. The Project will permanently affect 129 women, all of them are rural women, including 59 labor force.

(2) Measures for women development

1) Provide employment opportunities for women during the construction and operation of the Project.

129. According to the calculation, the project construction can provide more than 5,000 job opportunities for 14 town/ships affected by land acquisition, including Chengguan Town, Sanyang Township, Hongqiao Town, Sandun Township, Longmen Town, Changshou Town, Nanjiang Town, Shiniuzhai Town, Anding Town, Wengjiang Town, Wushi Town, Wukou Town and Meixian Town, including 35% jobs for women.

2) Provide employment opportunities in secondary and tertiary industries

130. Siqian Industrial Park in Chengguan Town, Tianyue New Area Industrial Park, Pingjiang E- commerce Industrial Park, Tianyue Logistics Park and Yihuacheng in Sanyang Township can provide more than 2,000 jobs for the project area every year, and about 500 jobs are suitable for women.

131. The commercial street, new buildings and other places in Pingjiang County can provide some business opportunities for the project area, and can be used as markets, clothing stores, catering stores, etc., which are particularly suitable for women.

132. After the completion, the Project will further improve the living environment of Pingjiang County and promote the development of tourism industry there. The demand for tour guides, drivers, catering, tea art and other tourism service industries is increasing. Especially in tour guides, catering, tea art and other industries, women have great opportunities to participate.

3) Provide training in vocational skills

133. The civil affairs agency and other agencies of Pingjiang County will regularly hold training for villagers, and the Project will also provide the training in vocational skills for landless farmers. Some special training for women can be held, such as tea artists, domestic service, electric sewing workers, etc., and training opportunities are planned to be offered to 59 women. In addition, women and men can participate in the training in rural travel attendants, fruit (Citrus) cultivation and management technology, vegetable production technology, poultry breeding and so on. The priority of skills training opportunities will be given to women.

4) Help to apply for guaranteed micro-loans

134. Women have the same rights as men to apply for guaranteed micro-loans, which will promote women's employment and entrepreneurship, and increase women's entrepreneurial employment opportunities. If women need to build a new agricultural processing plant or restaurant, this measure will be able to provide financial support for them. Guaranteed micro-loan is an important measure for the government to support special groups, such as landless farmers, unemployed population, college graduates and so on. If women have the will and ability to start agricultural or non-agricultural projects, this measure will help them get a better life and create more income opportunities for other rural residents.

135. The Postal Savings Bank at Pingjiang County has formulated a special preferential loan policy for women, providing an interest free loan of CNY 80,000 for women who are ready to start a business. The process of women's application for guaranteed micro-loan: the loan will be carried out in accordance with the procedures of individual voluntary application. The women applying for loan shall provide the business license, recommendation of village (group) and community, review of grass-root credit unions, review of township and sub-district, preliminary review and recommendation of municipal women's federation, review of labor and endowment insurance agencies, guarantee commitment of guarantee agencies, and review and lending of administering banks.

5.6. Skill training

136. The APs need to master more agricultural production technology and livelihood skills of secondary and tertiary industries to adapt to the new production and living environment. This requires training in production skills and specialized employment.

137. According to the analysis of the construction component and employment environment in the project area, and in combination with the livelihood restoration plan for the APs in the Project, the training programs for APs include tea processing, oil-tea camellia processing, promotion training in new industry and new technology skills (electrician, welding, mechanical operation, automobile driving, metal smelting, etc.) and other skills training (housekeeping service, hotel management, tourism service, handicraft processing, appliance repair, computer maintenance, etc.). Table 5.6-1 shows the training scheme for the LLF.

5.7. Temporary land occupation

138. The temporary land occupation will be within 6 months. The APs will be informed before commencement of TLO and civil works. If the standing crops could not be harvested based on construction schedule, one years’ replacement value (although the duration will be no more than 6 months) for the crops will be compensated to the APs, following the standards in table 4.5-3.

Table 5.6-1: Training Program of Vocational Skills Training Training implementing Training funds Fund No. Trainee Type of training agency period (CNY source 10,000) New skills improvement in new industries such as electrician, welding, mechanical Implementation by Civil Affairs operation, automobile driving, metal Bureau of Pingjiang County or There are 40 labor force affected by LA in smelting and other skills such as Sanyang Township Resettlement 1 Shiyan, Nanyuan and Getengping of Sanyang 2021-2022 3 housekeeping service, hotel management, Government and other funds Township tourism service, handicraft processing, agencies that are entrusted by appliance repair, computer maintenance, the owner etc. New skills improvement in new industries such as electrician, welding, mechanical Implementation by Civil Affairs There are 18 labor force affected by LA in operation, automobile driving, metal Bureau of Pingjiang County or Beiyuan Village, Fengshu Village, Huaqiao smelting and other skills such as Resettlement 2 Chengguan Town Government 2021-2022 1.1 Community, Sanyang Village, Tianyue Village of housekeeping service, hotel management, funds and other agencies that are Chengguan Town tourism service, handicraft processing, entrusted by the owner appliance repair, computer maintenance, etc. 68 labors in Huayuan Village, Yongning Village and Jintang Village of Changshou Town, Caibai Village, Changjiang Village, Shijiang Village and Jiangtian Village of Nanjiang Town, Yaozhou Village and Banqiao Village of Dazhou Town, Zhengdong Village and Tianyue Village of Implementation by BARA or Hongqiao Town, Hupei Village of Sandun Tea processing, oil-tea camellia processing Civil Affairs Bureau of Pingjiang Resettlement 3 Township, the Longmen Village and Tulong 2021-2022 4.5 and organic farming techniques County and other agencies that funds Village of Longmen Town, Jiangshi Village of are entrusted by the owner Shiniuzhai Town, Taxing Village of Wengjiang Town, Dongshan Village and Lishan Village of Wushi Town, Sanlian Village and Xijiang Village of Wukou Town, Tuanshan Village and Tuozhuang Village of Meixian Town and others that are affected by LA. Implementation by Civil Affairs Bureau of Pingjiang County or Tourism service, tea artist, handicraft Resettlement 4 There are 59 female labor force affected by LA women's federation and other 2021-2022 4 processing, housekeeping service funds agencies that are entrusted by the owner Total 12.6

6. Instituations and Responsibilities

6.1. RP Implementation and Management Agencies and responsibilities

(1) Project Leading Group

139. In April 2019, PCG established a project leading group (PLG), chaired by main leaders of PCG and members are like BEE, Development and Reform Bureau, Construction Bureau, Planning Bureau, Finance Bureau, BNR, BEE, BWR, BOF, Animal Husbandry and Aquatic Product Bureau and other relevant agencies of Pingjiang County. Its main responsibilities are to organize the work of of the project and LAR, including taking charge of the policy compilation of LAR activities of the project, and organizing and coordinating the relation of LAR implementing institutions at all levels. Meetings are held to solve major problems in the LAR work and ensure the smooth progress of the project construction and LAR.

(2) Project Management Office

140. Under the PLG, a Project Management Office (PMO) has been set up. Under the PMO, a resettlement safeguard department was set up, which is responsible for the daily work of resettlement implementation management, communication with ADB, PCG, PLG and other superior agencies and implementation of their requirements, decision-making and opinions of resettlement work, bidding, negotiation and liaison of the project, and full management, planning, implementation, coordination, supervision and monitoring of resettlement work: 1) Coordinate with PCG and the higher authorities to formulate the policies on LAR; 2) Entrust the DI to define the scope affected by the Project, organize the investigation on the physical data affected by LAR, and preserve the data; 3) Apply for planning permit and construction permit of land use; 4) Be responsible for the professional training of leaders in LAR; 5) Organize and coordinate the preparation and implementation of RP; 6) Manage, allocate and supervise the use of resettlement funds; 7) Guide, coordinate and supervise the implementation activities and progress of LAR; 8) Preside over and inspect the internal monitoring activities, and prepare the progress report of LAR; 9) Cooperate with and assist the external M&E agency for external M&E work.

(3) Land Acquisition and Housing Demolition Management Office of Pingjiang County

141. Land Acquisition and Housing Demolition Management Office of Pingjiang County (LAHDC) is the overall LA and HD compensation and resettlement implementing unit of Pingjiang County, specifically responsible for coordinating and organizing the LA and HD of the Project. Its main responsibilities are: 1) Determine the affected area of the Project together with the designer and conduct social- economic analysis; 2) Participate in the preparation and implementation of RP; 3) Hold public seminars and publicize resettlement policies; 4) Organize the measurement of land acquisition by the Project; 5) Handle all procedures related to LA and HD; 6) Evaluate the demolition of the houses and auxiliary buildings affected by the Project; 7) Be responsible for the compensation and resettlement related to LA; 8) Be responsible for the compensation and resettlement related to HD;

9) Be responsible for the management of the files of LA and compensation and resettlement related to the HD and resettlement; 10) Assist the external M&E agency in the survey and collection of materials and other on- site activities.

(4) Township PMO

142. Township PMO led by the leaders in charge of each township (office) is mainly responsible for: 1) Participate in project survey and assist in the preparation of RP; 2) Organize public participation and publicize resettlement policies; 3) Implement, inspect, monitor and record all resettlement activities within the township; 4) Handle the procedures for the relocation and construction of AP's houses; 5) Be responsible for the payment and management of land compensation funds; 6) Supervise LA, house demolitions and accessories, reconstruction and relocation of houses; 7) Report LA, HD and resettlement to the BNR and PMO; 8) Coordinate and deal with contradictions and problems in the work.

(5) Village (neighborhood) committees and village groups

143. The resettlement working group of the village (neighborhood) committees and the village groups are composed of the main leaders of the villagers’ committees and the village groups. Its responsibilities are: 1) Participate in the socio-economy survey and the project impact survey; 2) Organize public consultation and publicize LA and HD policies; 3) Select the resettlement site and allocate the curtilage for the relocated households; 4) Implement land reclamation, adjustment and distribution, and organize production and development and other resettlement activities; 5) Be responsible for fund management and allocation; 6) Report the opinions and suggestions of APs to the relevant higher authorities; 7) Report the implementation progress of resettlement; 8) Provide help to the households with difficulty in HD.

6.2. Resettlement planning and design agency and responsibilities

144. In November 2019, the project implementing agency entrusted RP-DI to carry out the resettlement planning and design of the Project. Its main responsibilities include: 1) Provide technical guidance for the impact survey of LA and HD, prepare detailed survey rules and conduct technical training; 2) Assist the governments in the project area to formulate RP; 3) Prepare and update RP; 4) In the implementation stage, provide the design documents to the PMO in time, carry out the design disclosure, assist resettlement implementing agencies to implement the resettlement and production of APs and improve and perfect the RP according to the actual situation.

6.3. Resettlement M&E and responsibilities

1) Internal Monitoring

145. As the project management agency, the PMO presides over and checks the internal monitoring activities, prepares the progress report on LA, HD and resettlement of the Project, and regularly reports the progress, existing problems and solution suggestions on resettlement to ADB semi-annually, so as to maintain the good functions of resettlement agencies at all levels in the process of Project implementation, coordinate the work of all parties and ensure satisfactory implementation of RP.

2) External M&E agency

146. PMO will employ a qualified third-party agency as the external M&E agency, whose main responsibilities include: 1) Consult with PMO on internal supervision & management and status of implementation of the RP; 2) Comprehensively monitor whether the LAR, LURT and corrective actions agreed in DDRs are implemented in accordance with RP, conduct sampling survey on the affected households to understand the implementation of compensation standards, resettlement progress and resettlement effect, monitor and evaluate the resettlement work and implementation effect as well as the social adaptability of the APs, especially the vulnerable groups; put forward the existing or potential problems and solution suggestions, and regularly submit M&E report to the PMO and ADB semi-annually. See Figure 6.3-1 for the network of resettlement implementing agencies.

Project Leading Group

External Design agency Pingjiang PMO resettlement M&E agency

LAHDC

Township PMO

Village resettlement working group

AHHs

Figure 6.3-1: Block Diagram of Resettlement Agencies

6.4. Personnel and facilities of resettlement implementing agencies

147. The project resettlement implementing agencies of the Project are composed of personnel with high quality and rich working experience. Table 6.4-1 presents details of personnel conditions of resettlement implementing agencies at all levels.

Table 6.4-1: Staff Arrangement of Resettlement Implementing Agencies at All Levels Main resettlement Total No. of No. of persons at Staff and qualifications Working period implementing agencies resettlement staff peak hours The person in charge has more than 5 years of project management experience, July 2019 to the PMO 4 6 (1 female) is familiar with resettlement work, and has college degree or above project completion The person in charge has more than 5 years of project management experience, July 2019 to the LAHDC 4 6 is familiar with resettlement work, and has college degree or above project completion July 2019 to the PMO of Chengguan Town 3 (1 female) 5 (2 female) Long-term similar work experience, junior college education project completion July 2019 to the PMO of Sanyang Township 3 (1 female) 5 (2 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Changshou Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Nanjiang Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Shiniuzhai Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Anding Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Wengjiang Town 3 (1 female) 4 (4 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Wushi Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Wukou Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the PMO of Meixian Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above project completion July 2019 to the RP-DI Resettlement Planning Rich experience in resettlement work of World Bank financed and ADB financed 7 (3 females) 10 (3 females) project completion and Design Working Group projects, bachelor degree or above planning and design Internal M&E Working Group Will have experience in internal M&E of World Bank financed and ADB financed January 2021 to the (including PMO focal staff and 3 (at least 1 female) 3 (at least 2 female) projects, junior college degree or above project completion loan implementation consultants) Will have experience in external M&E of World Bank financed and ADB financed January 2021 to the External M&E Working Group 5 (at least 2 female) 5 (at least 2 female) projects, junior college degree or above project completion 53 (at least 16 72 (at least 23 Total females) females)

6.5. Measures to strengthen the capacity of agencies

148. In order to ensure the smooth implementation of the Project, with the assistance and cooperation of the ADB TrTA team and RP-DI, the PMO has formulated training plan for resettlement management, organized management staff and technical staff related to the LA and HD of the Project to participate in the training to make them understand and be familiar with relevant resettlement policies, including domestic resettlement policies and the ADB involuntary resettlement policies, and understand and master the relevant contents of LA and HD, so as to ensure the full implementation of the RP.

149. The training contents include the general situation and background of the Project, the domestic LA and HD policies and relevant laws and regulations, ADB involuntary resettlement policies, and details, management, reporting procedures, expense management, M&E, reporting, complaint handling of RP of the Project, etc. See Table 6.5-1 for details of training plan and implementation.

Training on ADB resettlement policy in PMO Training of resettlement staff from Chengguan and Sanyang Townships Figure 6-1: Trainings carried out on ADB resettlement policy in PMO

Table 6.5-1: List of Training for Resettlement Implementing Agencies Training Training Training funds No. Type of training Trainee Implementation Fund source agencies program (0,000) Resettlement staff of PMO, staff of natural resources, water conservancy, forestry, Two training sessions were ADB involuntary agriculture, housing construction, held on September 3 and HHPDI (RP resettlement policies environmental protection and other October 8, 2019, with Resettlement 1 preparation and details on impact 2019 departments related to LA of the Project, resource persons Zhao design cost agency) survey of LA of the resettlement supervisors of Sanyang, Gengqiang and Tan Lu (RP- Project Chengguang and other town/ships related to LA DI) of the Project ADB technical A training was held on assistance ADB involuntary Project staff of the Pingjiang PMO, BNR, BWR, December 19, 2019, with the 2 2019 ADB TA resettlement resettlement policies BOF, BARA, HRUDB, and BEE resource person Dong Ming experts (technical assistance expert) Study and inspect the 2 resettlement Resettlement 3 PMO Land acquisition and demolition management staff 2020 experience of ADB funds project nearby ADB resettlement 0.5 Resettlement 4 PMO Resettlement staff 2020-2021 policies funds Latest changes in the 0.5 Resettlement 5 PMO national policy of LA Resettlement staff 2020-2021 funds and HD Learning experience of 0.5 resettlement fund Resettlement 6 PMO Land acquisition and demolition management staff 2020-2021 management and funds other projects External Procedures and policies resettlement 7 for resettlement of ADB- Resettlement staff 2020-2021 M&E expenses monitoring financed project agency External resettlement Resettlement policies 8 Resettlement staff 2020-2021 M&E expenses monitoring and practices agency Total

7. Public Participation, Consultation and Information Disclosure

7.1 Public participation and consultation undertaken during RP preparation

7.1.1. Approaches and measures

150. Before social-economic survey and impact survey, RP-DI prepared survey details on the Project, and listened to the opinions of the construction agency, local government and relevant departments on the survey content, methods and requirements. The PMO, local government and relevant departments organized joint survey teams to work together.

151. During the survey, APs of township, village and group participated in survey to learn about the project necessity, project effect, project influence, impact survey and compensation principles and RP, etc.

152. The RP-DI and PMO staff consulted with resettlement agencies and APs representatives of counties, townships (towns) and villages at all levels to listen to opinions, requirements and existing problems, discuss resettlement programs, and select resettlement areas.

7.1.2. Public participation and consultation during RP preparation

153. In the stages of preparation and compilation of RP, all levels of local government, relevant agencies and APs took part in the following items of work:

1) From September to October 2019, during the impact survey for LA and HD of the Project, Pingjiang PMO participated in the survey and carried out extensive publicity on the project construction and ADB policies; 2) From March to June 2020, Pingjiang PMO, BNR, BWR, BOF, RP-DI, related township people's governments, villages (residents’ committee), village group and AP representatives all participated in the survey and review of physical indicators, and carried out resettlement planning work according to the survey results. The investigators went deep into the town/ships, villages and village groups, and solicited the opinions and suggestions of APs on project construction and resettlement through forums participated by cadres of village group and AP representatives or interviews, including their choice of resettlement location, production rehabilitation measures, HD and compensation policies for LA; 3) From April to June 2020, according to the preliminary survey results of the impact of LA and HD, the PMO, together with the project design agency and the RP-DI, organized and held special LA consultation meetings for many times. LAHDC, BNR, BWR, BOF, Housing Construction Bureau, BEE and surveying and mapping company attended the meetings for joint discussions and consultation. The design and LA and HD scheme have been optimized for many times, with remarkable results to minimize LAR impacts.

Table 7.1-1: Conducted Key Information Disclosure and Public Consultation Activities No. of Participation results and Feedback from Time Place Organizer Participants Contents Actions and measures participants APs PMO, RP-DI, BNR, BWR, PMO, all BOF, HRUDB, BEE, and Summarize the initial survey township More than The preliminary survey results of LA and HD September - BARA, and related Preliminary impact survey indicators, make a preliminary people's 200 (more were obtained, and county, town/ships and October PMO township people's and policy publicity of the analysis of the impact of LA, and governments than 80 villages had a preliminary knowledge and 2019 government, villagers’ Project estimate the resettlement and project female). understanding of ADB policies. committees, villager investment. site groups and APs prepare the preliminary All township PMO, RP-DI, BNR, BWR, Detailed impact survey of resettlement measures for the people's BOF, HRUDB, BEE, and the Project, policy More than Results of preliminary measurement survey APs according to APs’ socio- governments, BARA, and related publicity, RP discussion, March - May 350 (more (PMS) and social-economic survey results, economic status and their villagers’ PMO township people's social-economic survey, 2019 than 120 and survey opinions of APs' participation willingness to make sure they committees government, villagers’ public participation survey, female). were obtained. can get reasonable and project committees, villager and resettlement compensation and restore their site groups and APs willingness survey livelihoods. 100% of the APs, including those temporarily affected, expressed support for the project Solicit the opinions and construction; most of them expressed their PMO, technical suggestions on the project understanding of the LA policy; most of them Shiyan Village assistance resettlement construction and LA thought that the LA had little or modest 19 (6 2020.6.19 of Sanyang PMO experts, RP-DI, villagers’ compensation and impact on their life; most of them thought that female). Township committee of Shiyan resettlement on site, and both land adjustment and cash Village, APs issue the public compensation are accepted, and if they had participation questionnaire any demands, they would go to the villagers’ committee for supporting or resolution .AHs asked that they be informed in advance. 100% of the APs, including those temporarily Improve the resettlement affected expressed support for the project measures, including land Solicit the opinions and construction; most of them expressed their readjustment etc, fully respect suggestions on the project understanding of the LA policy; most of them the wishes of APs, and make Beiyuan PMO, villagers’ construction and LA thought that the LA had a modest impact on further rational planning. Village of 15 (4 2020.6.22 PMO committee of Beiyuan compensation and their life; most of them thought that both land AHs to be informed in advance Chengguan female). Village, APs resettlement on site, and adjustment and cash compensation are on project schedule Town issue the public accepted, and if they had any demands, they participation questionnaire would go to the villagers’ committee for supporting or resolution. AHs asked that they be informed in advance. Conduct project 100% of the APs expressed support for the introduction and policy project construction; most of them expressed Water Supply Village cadres and AP publicity, issue their understanding of the LA policy; most of Company of representatives from 24 34 (14 questionnaire, and solicit them thought that the LA had some impact 2020.6.23 PMO Pingjiang town/ships in Pingjiang female). the opinions and on their life; most of them were willing to land County County suggestions on the project adjustment, and if they had any demands, construction and LA they would go to the villagers’ committee and compensation and township people's government for supporting 84

No. of Participation results and Feedback from Time Place Organizer Participants Contents Actions and measures participants APs resettlement measures or resolution.

Table 7.1-2: Key Activities on Avoiding and Mitigating the Impact of Resettlement Participated by and Discussed with the Public No. of Time Place Organizer Participants Contents Participation results Actions and measures participants Organize site Carry out the impact survey and survey and social- October PMO, project planning and design PMO, discuss design economic survey for the 2019- agency, RP-DI, BNR, BWR, BOF, BEE More than 100 Form the preliminary design project PMO scheme for many APs according to the LA March and township people's governments people and LA scheme sites times, and scheme, and conduct 2020 from the area affected by the Project minimize the indicator summary and scope of LA investment estimation Conduct detailed site survey, refine PMO, project planning and design the design PMO, Determine the design scheme Summarize the indicators April 2020 agency, RP-DI, BNR, BWR, BOF, BEE More than 50 scheme, and project PMO and delimit the boundary line after survey and prepare and township people's governments people avoid or reduce sites of LA the RP from the area affected by the Project the impact of LA and HD as much as possible Project Verify the indicators sites at Finalize the indicators and PMO, RP-DI, Territory Offices and of LA and HD on Chengguan Design investment after 2020.4.20 Resettlement Agencies of Chengguan 14 people site and avoid HD Reduce HD and agency examination according to and Sanyang Townships as much as Sanyang the reduction results possible Townships

Discuss the Finalize the indicators and optimization Reduce the scope of four investment after PMO, RP-DI, three design agencies in 2020.4.23 PMO PMO 12 people scheme and embankment sections in urban examination according to charge of urban area reduce the area the scope of reduced boundary line of LA boundary line

Go into in-depth PMO, project design agency, RP-DI, Finalize the indicators and discussion on surveying and mapping agency, Cut the scope of all affected investment after 2020.4.29 PMO PMO 23 people measures to further LAHDC, BWR, BNR, Township Territory areas after examination examination according to reduce the impact Office the reduction results of resettlement

PMO, BNR, technical assistance Further reduce the resettlement experts, project DI, RP-DI, Cut the scope of LA in urban Finalize the indicators and scope of boundary surveying and mapping agency, area along the main stream of investment after 2020.6.21 BNR PMO 28 people line in combination LAHDC, BWR, BOF, BEE, Water Supply the Miluo River after examination according to with land pre- Company, BARA, Housing Construction examination the reduction results examination Bureau

Resettlement consultation site of Shiyan Village of Resettlement consultation site of Beiyuan Village of Sanyang Township Chengguan Town

Public participation site from 24 town/ships Discussion site of optimization of urban area scheme

Public participation site from Nanjiang Town Discussion site of LA scope reduction scheme

7.2 Public participation and consultation plan during RP implementation

154. With the continuous progress of project preparation and implementation, the PCG, PMO, BNR, LAHDC, and M&E teams will also organize further information disclosure and public participation consultation. Table 7.2-1 shows the schedule of the next consultation between resettlement implementing agencies at all levels and APs.

Table 7.2-1: Schedule for Consultation with APs during Project Implementation Consultation contents Schedule agency and staff to participate PMO, BNR, Township PMOs, affected Issue resettlement information booklet August 2020 villages and groups and APs PMO, LAHDC, BNR, Township PMO, July - December Verify detailed survey results Township Territory Office, affected 2020 villages and groups and APs Issue LA announcement, and make a public announcement of the scope and purpose of acquisition, land status, resettlement methods and endowment PMO, LAHDC, BNR, Township PMO, insurance in local townships, villages November - Township Territory Office, affected and village group for at least 30 days, so December 2020 villages and groups and APs as to listen to the opinions of the rural collective economic organizations and their members, villagers’ committees and other interested parties. PMO, LAHDC, BNR, design agencies, Public participation for RP and income 2020.6-2020.12 Township PMO, and affected villages recovery measures and groups Project PMO, LAHDC, Township PMO, Problems in process of project implementation Township Territory Office, and affected implementation process villages and groups Project PMO, LAHDC, Township PMOs and Collect suggestions and complaints implementation monitoring departments process

7.3 Women participation

155. From the start of the project, a great effort has been made on the protection of rights and interests of women by the EA/IA of the Project and local governments. Affected women and families where women are the householder have played important role in the process of preparation of RP.

156. In the affected area, women’s rights, interests and status are the same as that of men. Women play an important role in economic development activities and housework. Especially in the rural areas, most women stay at home, more men go into the city to find jobs. So besides family responsibility women play an important role in tilling and non-farm work. So in the area affected by the project, women will pay more attention to the project than women, they not only take part in every stage of work of resettlement but also give fineness to the direction and method of resettlement.

157. During social-economic survey and impact survey, all women leaders of villages are invited to participate in surveying work group to publicize and communicate with affected women. In the small group of APs, more than 50% is female, besides they support the project actively, they showed that they pay closer attention to the correctness of physical indices, rationality of compensation standard and whether the compensation fee can reach in time etc.

158. In RP preparation stage, the PMO/RP-DI actively invited women APs representatives to jointly consult and fully listened to their opinions, requirements and existing problems regarding

88 the resettlement and housing demolition. The consultation was of a positive significance for relieving women's worries about the influence on their livelihood sources and traditional production modes and ensuring that women can obtain the same benefits in the Project.

159. At the same time, the IAs of the Project at all levels is provided with at least 1 female cadre respectively. Female is also encouraged to participate in the resettlement implementation. The IAs and local government attach great importance to female participation during the project implementation, especially livelihood recovery. The Project gives priority to female regarding construction employment in order to provide more employment opportunities for female.

7.4 Information disclosure

160. In order to make all APs fully understand resettlement policies and implementation details of the Project in a timely manner and make the resettlement really open, fair and transparent, the PMO will take the following measures to ensure the openness of resettlement policies (Table 7.4- 1): • During implementation of the Project, the PCG publicly release the information on the construction of the Project through TV, announcement and other forms; • before resettlement implementation, PMO distribute the Resettlement Information Booklet to each AHHs; • After the RP is finalized, PMO will distribute RP of the Project in public libraries or other public places in affected areas. All APs can search the information at any time; • After RP is approved by ADB and the PCG, PMO will distribute the Resettlement Information Booklet to APs. RP will also be published on the website of ADB in accordance with ADB SPS after the approval by the PCG and ADB.

Table 7.4-1: Information Disclosure Plan Agency Time Place Disclosure Way Disclosed contents responsible 2020- TV, newspapers Pingjiang County Construction information of Project PCG 2021 and other media RP disclosure on local July-Aug government/ADB Public Resettlement Plan PMO/ADB 2020 websites Town/ships, villages July-Aug and groups affected by Site distribution Resettlement Information Booklet PMO 2020 LA and relocated households Purpose, location, compensation Town/ships, villages standard and resettlement mode Proposed LA October and groups affected by (including endowment insurance objects announcement (at BNR 2020 LA and relocated of LLFs, items, standards and financing least 30 days) households methods) of LA, the way to applying for hearing and contact information. January Official website of Website Approval of LA plan BNR 2021 government LA approval authority, approval document No., approved purpose, Town/ships, villages approval time, owner, location, land type, February and groups affected by area and compensation standard of LA announcement BNR 2021 LA and relocated acquired land, resettlement mode of households agricultural personnel, time limit and place of registration for compensation for LA.

8. Grievance Redress Mechanism

161. Since public participation is encouraged during the preparation and implementation of this 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 LA, a transparent and effective grievance redress mechanism has been established. The basic grievance redress mechanism is as follows: 1) If any right of any AP is infringed on in any aspect of LA and resettlement, he/she may report this to the township government, which shall record such appeal and solve it together with the village committee or the AP within two weeks. 2) If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Pingjiang PMO within one month after receiving such disposition, which shall make a disposition within two weeks. 3) If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Pingjiang Municipal Arbitration Commission within one month after receiving such disposition, which shall make a disposition within two weeks. 4) If the appellant is still dissatisfied with the arbitration award, he/she may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC.

162. At any stage, an AP may bring a suit in a civil court directly if he/she is dissatisfied with the grievance redress procedure or disposition.

163. Any AP may also file an appeal to ADB in accordance with ADB’s Accountability Mechanism (AM). Before submitting a complaint to the AM, affected people should make a good faith effort to solve their problems by working with the concerned township government, PMO, and ADB Project Team. Only after doing that, and if they are still dissatisfied, should they approach the AM.

164. All grievances, oral or written, will be reported to ADB in internal and external resettlement monitoring reports.

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

166. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to the Pingjiang PMO in writing on a monthly basis.

167. The Pingjiang PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose.

Table 8-1: Registration Form of Grievances and Appeals

Accepting agency: Time: Location:

Appellant Appeal Expected solution Proposed solution Actual handling

Appellant (signature) Recorder (signature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal

90 process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time.

Table 8-2: Agencies and Staff Accepting Grievances and Appeals from APs Agency Contact Address Tel. Pingjiang PMO Li Qiang Pingjiang PMO 13974000933 LAHDC Fang Jincheng LAHDC 13786004559 PMO of Chengguan People's Government of Chengguan Yu Niya 13974009616 Town Town PMO of Sanyang People's Government of Sanyang Li Dachun 15873069888 Township Township PMO of Anding Town Ren Liangyu People's Government of Anding Town 15274009277 PMO of Changshou People's Government of Changshou Fang Renliang 13469276866 Town Town PMO of Longmen Town Chen Cheng People's Government of Longmen Town 15200203688 PMO of Shiniuzhai Town Liao Chaoqun Shiniuzhai Town People's Government 18478318432 PMO of Hongqiao Town Yu Fuhai People's Government of Hongqiao Town 13787983104 PMO of Nanjiang Town Zhang Biaojian Government of Nanjiang Town 13874007076 PMO of Sandun People's Government of Sandun Li Xianjue 13787845638 Township Township PMO of Dazhou Town Lin Zeyun People's Government of Dazhou Town 17773073565 PMO of Meixian Town Zhou Zhenyou People's Government of Meixian Town 18273024505 PMO of Wengjiang Shan Suimi Government of Wengjiang Town 15973044832 Town PMO of Wukou Town Jiang Jianqing People's Government of Wukou Town 18274051919 PMO of Wushi Town Xiang Lingzhi People's Government of Wushi Town 18390189555

9. Resettlement M&E

168. According to RP, resettlement M&E is to organize investigations, inspections, supervisions and evaluations continuously for the resettlement implementation. Resettlement monitoring is composed of internal monitoring and external monitoring.

9.1. Internal monitoring

9.1.1. Purpose of internal monitoring

169. The purpose of internal monitoring is to ensure the implementation of responsibilities in the process of resettlement and achieve the goal of restoring the living standards of APs.

9.1.2. Internal monitoring procedures

170. During the implementation of RP, the resettlement implementation agencies (LAHDC and township PMOs) report to the Pingjiang PMO on a monthly basis, and the Pingjiang PMO submits the internal monitoring report together with the progress reports to ADB every six months.

9.1.3. Internal monitoring contents

171. Internal monitoring will cover the following: 1) Organization structuring, division of work and capacity building; 2) Actual implementation of LA and HD policies and compensation standards; 3) Implementation schedule and progress of LA and HD and resettlement activities; 4) Livelihood restoration and APs living standards (including vulnerable groups and gender measures) 5) Resettlement budget and its implementation;; 6) Complaints, grievances, public participation, consultation, information disclosure and external monitoring; 7) Handling of relevant issues in the memorandum of ADB’s review missions; and 8) Existing problems and resolutions 9) The implementation situation of LURT 10) Corrective actions agreed in DDRs

9.1.4. Internal monitoring agencies and their responsibilities

172. The internal monitoring agency of the Project is the Pingjiang PMO, under which is the Resettlement and Endowment Insurance Department (hereinafter referred to as the Safeguard Department). The Safeguard Department has 4 staff in the regular period and 6 staff in the peak period.

173. The internal monitoring responsibilities include: 1) Cooperate with the resettlement implementing agencies, competent departments and external monitoring agencies; 2) Formulate corresponding forms according to the monitoring contents, and require the implementing agencies (LAHDC and township PMOs) to fill in and submit to the Pingjiang PMO every month; 3) Supervise the personnel to go to the site for inspection every month, conduct random inspection, and participate in the completion acceptance of resettlement project;

4) Supervise the implementation of the annual work plan and the use of funds, and organize the annual fund audit together with the superior department in charge; 5) Submit progress report to ADB every six months.

9.2. External monitoring

174. The objectives of external monitoring are: • Verifying resettlement implementation • Evaluating the effectiveness, impacts and sustainability of LA, compensation and resettlement activities; • Determining if such activities meet the safeguard policies and requirements in the RP; and • Draw on experience and lessons for future safeguard policy making and project planning. • Identify issues or potential issues and recommend time-bound recommendations to allow the Pingjiang PMO and relevant agencies to take action or improve resettlement implementation • The implementation situation of LURT • Corrective actions agreed in DDRs •

175. Pingjiang PMO will engage a qualified external monitor experienced in ADB-financed projects. Monitoring will be carried out on a semi-annual basis. The external monitor will submit semi-annual monitoring reports to ADB and Pingjiang PMO.

176. The external monitor will review the baseline information from the survey carried out during the TrTA, and conduct, if necessary supplementary baseline survey of the affected villages and village groups affected by LA to obtain a reliable baseline data for monitoring and evaluation. In addition, random interviews, field observations, small group meetings will be conducted. The following will be covered in the monitoring and evaluation.

Table 9.2-1: Indicators for External Monitoring Items/elements Contents Key indicators Construction land approval documents; Progress of Land acquisition amount, type and Impact; construction land Civil works progress and linkage with land acquisition approvals and delivery activities Amount and type of temporary land use; Temporary land use Temporary land use compensation and disbursement Permanent Land Permanent Amount and type of permanent land acquisition; compensation land Permanent land acquisition compensation standard and standards and acquisition, HD disbursement implementation and temporary Compensation Compensation standard (structures) and any change; impacts standards and Compensation payment; implementation Transition fees delivered Comparison of infrastructure; Per capita housing area; Living conditions of Community facilities; before and after HD Distance from the center the county and township; Satisfactory of sampling survey Provision of Cash compensation Disbursement of cash assistance to APs or vulnerable HHs Assistance and funds

Items/elements Contents Key indicators Support Variation of per capita lands before and after LA; Land adjustment Land for land program, if any; Quality and distance of adjusted land; Impact to the production mode of farmers; Production Employees No. of non-farm payrolls; resettlement mode Variation of crop species; Impact to the livestock; Per capita net income of rural residents; Variation of income Disposable income of urban residents; Proportion of three main industries employee; Employment Proportion of women in small business; No. of migrant workers; Times, type and time of training; Training Benefits, number and effective of training; Satisfaction of Satisfactory of sampling survey; resettlement Compensation standard (structures) and variation; Compensation Compensation payment method; Compensation for the shutdown period Enterprise reconstruction way; Household No. of Housing reconstruction resettlement; and demolition No. of enterprise expansion; Number and income of employees; Restoration income of enterprises; Satisfaction of sampling employees and operators Funds Availability of funds Funds sources and payment availability and Allocation Allocation flows application Vulnerable households Type of the vulnerable and Impacts Vulnerable special assistance households Measures implementation (timely, subsidy etc.) measures No. of women participating in meetings, DMS, accepting Gender payments, participation matters Women hired during construction and other employment opportunities Public consultation Public consultation and Times, population, time, site, topic and efficiency; and information disclosure Way, content and response of information disclosures information activities disclosure Clear roles and No. of qualified staff Organizational responsibilities, Coordination meetings and follow-ups Set-up coordination and Training to improve capacity of staff reporting Monitoring, preparation of reports and submission

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

177. The submission plan of external M&E report is shown in Table 9.2-2.

Table 9.2-2: Resettlement M&E Schedule

No. Resettlement report Time of survey Submission date Semiannual monitoring (including baseline 1 June 2021 July 2021 survey report) 2 Semiannual monitoring December 2021 January 2022 3 Semiannual monitoring June 2022 July 2022 4 Semiannual monitoring December 2022 January 2023 5 Semiannual monitoring June 2023 July 2023 6 Semiannual monitoring December 2023 January 2024 7 Annual monitoring December 2024 January 2025 8 Annual monitoring December 2025 January 2026 9 Completion report December 2026

10. Resettlement Budget, Financing and Disbursement

10.1. Resettlement budget

178. The RP cost for the Project mainly includes five parts, namely, resettlement compensation, compensation for special facilities, other fee, contingency fee and relevant tax.

179. The resettlement compensation includes LA fee, temporary land occupation fee, compensation for houses and ancillary facilities, resettlement compensation subsidies and awards, transition fee, tomb relocation fee, special funds for vulnerable groups, etc.

180. Compensation for special facilities includes compensation for transportation facilities, power transmission and transformation facilities, communication facilities, water conservancy and hydropower facilities, municipal facilities, etc.

181. Other expenses include expenses for preliminary work, comprehensive survey and design and scientific research, implementation management, PMO organization, technical training, M&E.

182. Relevant taxes include farmland occupation tax, farmland reclamation fee, forest vegetation restoration fee, etc.

183. According to the budget of the above-mentioned expenses, the total LAR cost of the Project is CNY 57.12 million. See details in Table 10.1-1.

Table 10.1-1: RP Budget Estimate (Unit: CNY 10,000, %) Subproject Subproject Subproject Subproject Percentage No. Cost categories Total 1 2 4 6 (%) Part Rural resettlement 581.48 237.93 1910.20 202.80 2932.41 51.33% I compensation I LA fee 552.67 122.15 319.64 202.80 1197.26 20.96% Land compensation (I) and resettlement 399.15 81.16 200.31 147.36 827.99 14.49% subsidy 1 Cultivated land 286.44 130.43 416.87 7.30% 2 Garden land 67.34 3.87 7.99 79.19 1.39% 3 Forest land 70.31 195.49 265.80 4.65% 4 Housing estate 2.56 10.85 2.69 16.10 0.28% 5 Land for transport 1.28 0.96 2.23 0.04% Land for water 6 surface and water 39.38 6.26 45.64 0.80% conservancy facilities 7 Unused land 1.91 1.91 0.03% Other land (raised 8 0.25 0.25 path through fields) Compensation for (II) young crops and 13.56 3.37 10.12 1.73 28.79 0.50% trees Endowment (III) insurance fees for 139.95 37.62 109.20 53.71 340.49 5.96% LLFs II LA fee 1590.56 1590.56 27.84% Compensation during 1 187.62 187.62 3.28% construction period Compensation for 2 339.43 339.43 5.94% young crops or trees 3 Land reclamation fee 926.05 926.05 16.21%

Subproject Subproject Subproject Subproject Percentage No. Cost categories Total 1 2 4 6 (%) Subsidy for reaching 4 137.46 137.46 2.41% production period Compensation for III housing and auxiliary 83.97 83.97 1.47% structures Housing (I) 56.82 56.82 0.99% compensation Compensation for (III) 27.15 27.15 0.48% house decoration Resettlement IV compensation, 25.14 25.14 0.44% subsidies and awards V Transition fee 6.66 6.66 0.12% VI Tomb relocation fee 28.81 28.81 0.50% Compensation for Part restoration and 931.25 931.25 16.30% III reconstruction of special projects Part Other costs 354.27 63.80 311.24 58.79 788.10 13.80% IV I Preliminary work cost 37.82 5.95 47.75 5.07 96.59 1.69% Comprehensive II survey and design 32.57 9.52 76.41 8.11 126.61 2.22% research cost Implementation III 60.03 12.38 99.33 10.54 182.28 3.19% management cost Organization fee of IV 200 30 40 30 300 5.25% IAs Technical training V 2.91 1.19 9.55 1.01 14.66 0.26% cost VI M&E fee 20.94 4.76 38.20 4.06 67.96 1.19% Part Contingency 224.04 36.21 266.57 31.39 558.21 9.77% V Part Relevant tax 296.88 13.22 37.81 154.58 502.49 8.80% VI Cultivated land I 6.12 2.20 7.12 3.24 18.68 0.33% occupation cost II Land reclamation fee 290.76 151.34 442.10 7.74% Forest vegetation III 11.02 30.69 41.71 0.73% restoration fee Part Total investment 2387.92 351.15 2525.82 447.56 5712.46 100.00% VII

10.2. Financing and use of resettlement funds

184. Resettlement funds for the Project are all domestic supporting funds, which will be raised by PCG. The resettlement funds will be disbursed by the PMO directly to the functional departments concerned through a special account according to the compensation rates, and then distributed to the affected villages/groups.

185. According to the implementation progress of the Project, the annual investment plan of the Project is shown in Table 10.2-1.

Table 10.2- 1: Annual Investment Plan Year 2020 2021 2022 2023 2024 2025 2026 Total Percentage (%) 5% 15% 25% 25% 20% 5% 5% 100

Amount (CNY 285.62 856.87 1,428.11 1,428.11 1,142.49 285.625 285.625 5,712.46 10,000)

11. Resettlement Schedule

186. According to the implementation schedule of the project, the project will be constructed from late 2021 to December 2026. In order that the resettlement schedule is coordinated with the construction schedule, the RP will be updated and implementation will start in 2021, and the post- resettlement evaluation will be conducted in 2026.

187. The basic principles for resettlement implementation are as follows: • LA should be completed at least 3 months prior to the commencement of construction • All compensation fees will be paid to the affected persons/entities directly and fully within 3 months of approval of the compensation and resettlement program for LA. • The contractor will commence construction in certain areas where land has been acquired, the AHs have received full compensation, cleared the land, and restoration measures are in place. • The temporary land occupation will be informed in advance to ensure the standing crops can be harvested before construction. If impossible, compensation fees on basis of full replacement value will be paid to affected households directly.

Table 11-1: Resettlement Schedule 2026 2020 2021 2022 2023 2024 2025 Content 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10

Impact survey on LA impact

Consultation with the APs

Prepare a draft RP

Issue resettlement information booklet

Disclose the draft RP on ADB website

Carry out DMS and social stability risk assessment for the land to be acquired

Preparing the updated RP

Disclose updated RP to APs

Submitting the updated RP to ADB for approval and uploading to ADB website

Compensation agreement and disbursing the compensation

AP training

Livelihood support

Internal Resettlement M&E

External Resettlement M&E

Report on completion of resettlement

100 Appendix 1

101 Appendix 1

Annex 1 Summary of PRC laws, regulations and policies

Provisions on the ownership and use rights of land

188. The People's Republic of China resorts to a socialist public ownership, namely, ownership by the whole people and collective ownership by the working masses. Land in urban districts shall be owned by the state. Land in the rural areas and suburban areas, except otherwise provided for by the state, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants (Article 2 and 9 in Land Administration Law of the PRC).

189. The state fosters the system of protecting the basic farmland. After the permanent basic farmland is demarcated according to law, any unit or individual may not occupy or change its use without authorization. If key construction projects for national energy, transportation, water conservancy and military facility and others have to be located in the permanent basic farmland and the transfer of agricultural land or land acquisition are required, the approval shall be obtained from the State Council. (Articles 33 and 35 of the Land Administration Law of the PRC)

190. In order to meet the demands of public interests, it is allowed to acquire lands owned collectively, premises owned by entities and individuals or other realties according to the statutory power limit and procedures. When acquiring land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement subsidies, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security fees for the farmers with land acquired, guarantee their livelihood and protect their lawful rights and interests. When acquiring the premises owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the acquired realties; when acquiring the individuals' residential houses, it is required to guarantee the housing conditions of the owners of the acquired houses (Article 42 in Property Law of the PRC).

Provisions on land acquisition compensation

191. When the land acquisition is required, LLFs shall be compensated fairly and reasonably to ensure that the living standard of them will not be reduced and guarantee their long-term livelihood. When acquiring land, it is required to, in accordance with law and in full amount, timely pay land compensation fees, placement subsidy, compensations for the above-ground fixtures of the rural villagers' houses and lands, and seedlings and other fees, provide social security fees for the farmers with land acquired. The standard of land compensation fees and resettlement subsidy for farmland acquisition shall be determined by the provinces, autonomous regions and municipalities directly under the central government through formulating the location-based composite land price. The location-based composite land price shall be prepared while taking into account factors such as the original use, conditions, output value, and location of the land, the relationship between supply and demand of the land, the population and level of economic and social development, and shall be adjusted or republished at least once every three years. Compensation standards for acquisition of land other than farmland, ground attachments and young crops shall be formulated by provinces, autonomous regions and municipalities directly under the central government. Adhering to the principle of making compensation before relocation and improving the living conditions, rural villagers' wishes should be respected, and they should be given fair and reasonable compensation in the form of providing replacement house, temporary dwelling or money compensation for relocation, and other expenses caused from land acquisition, so as to

102 Appendix 1 protect their rights in living and legal housing property. Local people's governments at or above the county level shall include LLFs into the corresponding social security systems such as endowment insurance. The social security fees of LLFs are mainly used as the payment subsidy of endowment insurance and other social insurance of eligible LLFs. Measures for the collection, management and use of social security fees for LLFs shall be formulated by the provinces, autonomous regions and municipalities directly under the central government. (Article 48 in Land Administration Law of the PRC).

192. A paid leasing should be going through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: (1) Land for use by government organs and for military use; (2) Land for building urban infrastructure and for public welfare undertakings; (3) Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; (4) Other land as provided for by the law and administrative decrees. (Article 54 in Land Administration Law of the PRC).

Provisions on resettlement

193. Local people's governments at or above the county level shall include LLFs into the corresponding social security systems such as endowment insurance. The social security fees of LLFs are mainly used as the payment subsidy of endowment insurance and other social insurance of eligible LLFs. Measures for the collection, management and use of social security fees for LLFs shall be formulated by the provinces, autonomous regions and municipalities directly under the central government. (Article 48 in Land Administration Law of the PRC).

194. The local people’s government above county level shall work out specific methods to ensure the further living of LLFs. The farmers affected by LA can use legally approved construction land to buy a share of the land use-right projects with steady profit. For the inside of urban planning area, the local people’s government shall list the farmers who will lose cultivated land because of land acquisition, into urban employment system and set up system of social security; for the outside of urban planning area, during the process of land acquisition, the local people’s government shall, in its administration area, leave some cultivated land or arrange job for LLFs; for the farmers, who will lose their cultivated land and basic conditions of production and living, the local people’s government shall resettle them in other area (Article 13 of the Selected Provisions of the Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration).

195. LLFs can choose the following resettlement ways: (1) resettlement of agricultural production. For the acquisition of rural collective land outside the urban planning area, these kinds of land, such as rural collective non-planed land, contracted land handed back by contracting farmers, land for contracting transfer and land newly-added during land development and arrangement shall be used firstly as the necessary cultivated land for LLFs by land acquisition in order to ensure their continuous agricultural productions. (2) Resettlement by new employment. The land user or the local people’s government shall try its best to provide LLFs with free labor skill training and arrange them with proper jobs. Under the same conditions, the land user shall employ LLFs first. During the acquisition of rural collective land in the urban planning area, the local people’s government shall list the farmers who will lose cultivated land because of land acquisition, into urban employment system, and set up system of social security. (3) Placement by benefit-sharing compensation. For the project land with long-term stable income, under the premise of farmers’ voluntary, the rural collective economic organizations whose land has been acquired may, after consultation with the land user, become a shareholder with compensation and resettlement fees

103 Appendix 1 for land acquisition, or at the price of the approved use right for construction land. Rural collective economic organizations and farmers can obtain benefits in the form of preferred shares as agreed in the contract. (4) Resettlement in other area. If the local area is really unable to provide basic production and living conditions for those who lost land due to land acquisition, the government can, under the premise of fully soliciting the opinions of the rural collective economic organizations and farmers whose land has been acquired, resettle them in other area (Article 2 of the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition).

196. Guarantee the production and living of LLFs by multiple ways of resettlement. Mainly includes: giving priority to agricultural resettlement. In some rural areas where cultivated land has been increased through land renovation and rural collective economic organizations have reserved more free disposed land, priority should be given to agricultural resettlement for land acquisition, and the newly increased cultivated land or free disposed land should be allocated to LLFs so that they can maintain basic production conditions and sources of income depending on this certain area of cultivated land. Standardize the resettlement in the reserved land. For land acquisition within the scope of urban construction land determined by the overall land use planning, the resettlement in the reserved land can be adopted based on the actual conditions, but guidance and management shall be strengthened. The reserved land shall be arranged within the scope of urban construction land and acquired to being owned by the state; the land that is acquired and transferred to the agricultural land shall be included in the annual land use plan, so as to prevent expansion of urban construction land due to resettlement in the reserved land; the development of reserved land shall conform to the requirements of urban construction planning and relevant regulations. In areas where resettlement in the reserved land is implemented, the local government should formulate strict management measures to ensure that the arrangement of reserved land is standardized and orderly, and the development and utilization of reserved land are scientific and reasonable. Promote the implementation of social security funds for LLFs. Land and resources departments at all levels shall actively promote the construction of the social security system for LLFs under the unified leadership of the local government, and in cooperation with relevant departments. (Notice of the Ministry of Land and Resources on Doing a Better Job in Land Acquisition Management).

197. The owner of acquired land can choose money compensation or exchange of house property rights. If the exchange of house property rights is chosen, the people's government at municipal and county level shall provide the owner of acquired land with house for the property rights exchange, and calculate and settle the difference between the value of the acquired house and that of the house for the property rights exchange with the owner of acquired land (Article 21 of the Regulations on House Acquisition on State-owned Land and Compensation).

Provisions on information disclosure and public participation

198. The people's governments at the municipal and county levels divided into districts and their departments shall also take initiative to disclose government information about municipal construction, public services, public welfare undertakings, land acquisition, house expropriation, public security management, social assistance, etc. According to the local specific conditions, the town/ship people's government should also publicize the government information about agricultural and rural policies, construction and operation of irrigation and water conservancy projects, transfer of contracted management rights of rural land, review of the curtilage using, land and house acquisition, fund raising and labor raising, social assistance, etc. (Article 21 of the Regulations on the Disclosure of Government Information of the PRC).

199. The administrative organ shall establish and perfect the government information release

104 Appendix 1 mechanism, and release the government information which is voluntarily disclosed through government bulletins, government websites or other Internet government media, press conferences, newspapers, radio, television and other channels. The people's governments at all levels shall strengthen the work of publicizing government information by relying on government portal websites, and centrally and actively publicize government information through a unified government information disclosure platform. The government information disclosure platform shall have the functions of information retrieval, access, download, etc.; the people's governments at all levels shall set up a place for consulting government information in the national archive, public library and government service place, which is equipped with corresponding facility and equipment to facilitate citizens, legal persons and other organizations to obtain government information; the administrative organ may set up public consultation rooms, data collection points, information bulletin boards, electronic information screens and other places and facility required to disclose government information; the administrative organ shall timely provide the government information which is voluntarily disclosed to the national archives and public libraries (Articles 23, 24 and 25 of the Regulations on the Disclosure of Government Information of the PRC).

200. For land acquired by the State, local People’s Government at or above the county level shall, upon approval pursuant to legal procedures, make an announcement and organize its implementation. If a local people's government at or above the county level intends to apply for land acquisition, it shall carry out an investigation of the current status of the land to be acquired and a risk assessment of social stability, and shall make a public announcement of the scope and purpose of acquisition, land status, resettlement methods and social security in local town/ships, villages and group of villagers for at least 30 days, so as to listen to the opinions of the rural collective economic organizations and their members, village committees and other interested parties. If most of the members of the rural collective economic organizations whose land has been acquired don not think the compensation and RP for land acquisition conform to the provisions of laws and regulations, the local people's government at or above the county level shall organize a hearing and revise the RP based on the hearing results and in accordance with the provisions of laws and regulations. Owners and persons of the right to use of the acquired land should, within the specified time period of the announcement, bring the ownership certificates of real estate to enter into registration for compensation for land acquisition. The local people's government at or above the county level shall organize relevant departments to estimate and implement relevant costs in full amount, and sign agreements on compensation and resettlement with the owners and users of the land to be acquired; if it is really difficult for some individuals to reach an agreement, it should be truthfully stated when applying for land acquisition. The local people's government at or above the county level may apply for land acquisition only after relevant preliminary work is completed. (Article 47 in Land Administration Law of the PRC).

201. The rural collective economic organization of the acquired land should publish the revenue and expenditure of the compensation fee of the acquired land for the members of the respective collective economic organization and accept supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. (Article 49 of the Land Administration Law of the PRC).

202. The house acquisition department shall draw up a compensation plan and submit it to the people's government at municipal and county level. The people's government at the municipal and county level shall organize relevant departments to demonstrate and publish the compensation plan for land acquisition and solicit public opinions. The time limit for soliciting opinions shall not be less than 30 days; the people's government at the municipal and county level shall promptly publish the information on the solicitation and the revision made based on public opinions; for the reconstruction of the old urban areas requiring land acquisition, if most of

105 Appendix 1 the persons with their land acquired don not think the compensation plan for land acquisition conform to the provisions of these regulations, the people's government at the municipal and county level shall organize hearings for the persons with their land acquired and public representatives, and modify the plan based on the hearing results. (Articles 10 and 11 of the Regulations on House Acquisition on State-owned Land and Compensation).

Provisions on vulnerable groups

203. Women and men have equal rights in contracting rural land. The women’s legal interests in the land contracting should be protected. No organization or individual may deprive or infringe upon the women’s right to contract and use lands. During the contract period, the Employer shall not recover the contracted land. During the contract period, the employer shall not adjust the contracted land (Articles 6, 26 and 27 of the Rural Land Contract Law of the PRC).

204. Orphans, exceptional poverty personnel that require support, military families, and losing- single-child families, after the examination and approval by the county people's government and after publicity without objection, shall be granted with another CNY 50,000/household of purchasing (building) subsidy (Article 49 of the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County).

Appendix 1: Resettlement Information Booklet

The RIB will be compiled upon ADB approval of the Resettlement Plan for the Project.

106 Appendix 2

Appendix 2: Due Diligence Report on LURT

Subproject 8 (Eco-farming subproject) involves land use right transfer (LURT). According to ADB's requirements on good practices of voluntary land uses, a due diligence has been conducted on the LURT and a due diligence report (DDR) on the LURT has been prepared.

The purpose of due diligence is to analyze and evaluate whether the requirements of ADB and PRC laws and regulations on land leases are met through the survey on the LURT process.

The survey methods included field visits, interviews, discussions, sampling survey, etc.

In March 2020, PMO, DI, RP-DI and personnel from relevant departments of Pingjiang County jointly formed a survey team, and went to 6 town/ships and 9 project villages for field survey. In April 2020, the joint survey team convened meetings of all enterprises involved in LURT to have a discussion.

A. Project Scope of Land Use

According to the survey, 8,641 mu of land use right has been transferred in the total area of eco- farming projects. Including 6,667 mu of newly built and slightly renovated tea gardens, 1,800 mu of comprehensive eco-farming demonstration area and 174 mu of newly-built camellia oleifera forest. It involves 13 town/ships, 24 villages and 24 project activities. There are 19 enterprises participating in the LURT cooperation. There are 4,000 households with 18,056 people (including 8,446 females) participating in the LURT. Table 1 shows the basic conditions of LURT of Subproject 8.

107 Appendix 2 Table 1: Basic Conditions of LURT under Subproject 8 Component Basic condition of project villages Conditions of LURT Farmer households Population Land (mu) LURT land (mu) involved in LURT Project Construction Component Project village Enterprise Total Total Town/ship scale (mu) Total Female Total Cultivated Total Cultivated Total Female population population HHs (person) area land area land HHs (person) (person) (person) Baiping Village Hunan Xiangyue Tea Culture 1257 732 3,456 1,512 6,756 2,730 1,257 466 56 223 105 Guantan Village Communication Co., Ltd. Anding Town Fujia Village 143 Hunan Jiushizhai Gaoshan Tea Co., Ltd. 298 1,496 846 2,249 883 143 38 75 34 Zhenghuang Village 200 Pingjiang Fumanchun Tea Co., Ltd. 886 3,632 1,766 19,713 2,973 200 87 348 171 Hunan Qiuhu Huangjin Tea Industry Co., Qiuhu Village 260 809 3,102 1,860 23,082 2,100 260 29 39 1,080 602 Ltd. Hunan Ancient Tea Culture Development Sanshi Town Danjiang Village 200 534 2,084 862 28,335 1,580 200 120 42 317 130 Co., Ltd. Mingwang Tea Farmer Cooperation of Dutou Village 124 679 3,309 2,613 9,256 2,216 124 0 135 820 327 Pingjiang County Xiaoyuan Agriculture, Forestry and Animal Qinfang Village 78 Husbandry Cooperation of Pingjiang 476 1,987 1,108 15,786 786 78 13 32 128 72 County

Ecologicaltea Meixian Town Xiaoyuan Agriculture, Forestry and Animal Aoshang Group 23 Husbandry Cooperation of Pingjiang 586 2,846 1,380 7,560 1,450 23 59 295 138 County Tongshi Town Zheliao Village 61 Renshengshan Cooperation 828 3,728 1,816 2,053 1,828 61 131 537 260 Shangtashi Changfadi Aid-the-Poor Cooperation of Dongyuan Village 263 506 1,842 842 251,464 1,308.4 263 50 230 102

garden Town Dongyuan Village Nanjiang Hunan Ancient Tea Culture Development Longtou Village 268 386 1,467 691 20,500 960 268 12 206 887 284 Town Co., Ltd. Wengjiang Hunan Ancient Tea Culture Development Baihe Village 626 660 2,268 1,034 24,600 1,350 626 161 84 263 51 Town Co., Ltd. Niusheng Planting and Breeding Farmer Yanglinjie Village 353 736 3,358 1,342 11,100 2,838 353 105 147 673 351 Cooperation of Pingjiang County Jiayi Town Pingjiang Huaxing Agricultural and Forestry Yanglinjie Village 155 736 3,358 1,342 11,100 2,838 155 0 89 431 161 Development Co., Ltd. Lutou Village 350 Xinglin Cooperation of Pingjiang County 52 228 107 11,340 170 350 170 52 228 107 Hongqiao Gaoduan Village 1000 Hunan Jiushizhai Gaoshan Tea Co., Ltd. 420 1,800 870 7,900 900 1,000 420 1,800 870 Town Jinling Village, Fushoushan Hexin Agricultural Planting Farmer Jinlong Village, 1005 814 3,507 1,485 11,457 1,950 1,005 394 1,578 792 Town Cooperation of Pingjiang County Huangjin Village Sanyang Shangshan Village 300 Shangshan Yougu Cooperation 81 318 142 800 203 300 203 81 318 142 Township Subtotal 11 19 6667 14 10,219 43,786 21,618 465,051 29,063 6,667 1,279 2,142 10,231 4,699

fruits andfruits vegetables

demonstration sites

ecologicalpaddy, Tianrun Ecological Farmer Cooperation of Constructionof Jiayi Town Yanglinjie Village 400 732 3436 1,126 2,900 2,900 400 400 700 3,089 1,726 Pingjiang County

orchard Changshou Pingjiang Ouyaxin Eco-agricultural Tourism Tangkou Village 400 420 1895 980 2,000 1,600 400 400 300 1,500 630 Town Development Co., Ltd. Guanduan Planting and Breeding Farmer Yuping Town Shili Village 400 489 1820 968 960 460 400 120 86 321 172 Cooperation of Shili Village Lantian Ecological Planting and Breeding

Anding Town Gaoping Village 600 523 2168 1,002 9,300 1500 600 600 300 1260 426 Cooperation

108 Appendix 2 Subtotal 4 4 1800 4 2,164 9319 4,076 15,160 6,460 1,800 1,520 1,386 6,170 2,954

came

ecolo

oleife

Cons

on of

fores

onstr proje

ation

tructi

gical

dem

cts

llia llia

ra t Jiayi Town Sizhou Village 60.0 Xianzhong Nursery of Pingjiang County 452 2182 1,050 7,300 1,840 60 7 35 13 Tongshi Town Bangshang Village 114.0 Xianzhong Nursery of Pingjiang County 465 1620 780 5,220 1,067 114 465 1620 780 Subtotal 2 2 174 1 917 3802 1,830 12,520 2,907 174 0 472 1655 793 Total 13 24 8641 19 13,300 56907 27,524 492,731 38,430.4 8,641 2,799.3 4,000 18,056 8,446

109 Appendix 2

B. Social Economic Situation of the LURT area

Table 1-1 shows that the transferred land in the project area involves in 13 towns and 24 villages, which are respectively the Baiping Village, Guantan Village, Fujia Village, Zhenghuang Village, and Gaoping Village of Anding Town, the Qiuhu Village, Danjiang Village and Dutou Village of Sanshi Town, the Qinfang Village and Aoshang Group of Meixian Town, the Zheliao Village of Tongshi Town, the Dongyuan Village of Shangtashi Town, the Longtou Village of Nanjiang Town, the Baihe Village of Wongjiang Town, the Yanglinjie Village, Lutou Village and Sizhou Village of Jiayi Town, the Gaoduan Village of Hongqiao Town, the Jinling Village, Jinlong Village and Huangjin Village of Fushoushan Town, the Shangshan Village of Sanyang Township, the Tangkou Village of Changshou Town, the Shili Village of Yuping Town, and the Bangshang Village of Tongshi Town. The total rural land area in these villages is 492,731 mu, including 38,430.4 mu of cultivated land. The rural population is 13,300 rural households with 56,907 people, of which the female population is 27,524 people. The arable land per capita is 0.5 - 1 mu/person.

Through the collected socio-economic statistics of the Pingjiang County and the above 13 town/ships, it has been observed that the townships within the project area vary in economic development level to some extent, but on the whole, they are in the middle level of the Pingjiang County. Among them, the Sanyang Township, Changshou Town and others are relatively fast in economic development, while the Hongqiao Town, Meixian Town and others are relatively backward.

In 2019, the per capita disposable income of farmers in the project area was CNY 5,000 - 11,000, with the main source of income being the outside labor income, followed by the agricultural, forestry, graziery, side-line production and fishery income.

C. Applicable Policy

Domestic legal basis

1. Law of the People's Republic of China on the Contracting of Rural Land (secondly amended on December 29, 2018) 2. Measures for the Administration of Management-Right Transfer of Rural Land (amended draft for comments), officially implemented on January 1, 2020 3. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (June 29, 2016) 4. Hunan Province Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (November 18, 2016) 5. Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land) (starting since January 1, 2010)

The applicable domestic laws, regulations and important articles of LURT relevant for the Project are shown in Table 2.

Relevant ADB requirements on good practices of voluntary land use

In the process of signing and implementing the voluntary land use agreements or LURT, the following requirements will be met: 1) The principles of fairness, openness, impartiality, voluntariness and adequate rental or compensation; 2) The principle of gender equality;

110 Appendix 2

3) The principle of consultation; 4) Establishment and operation of grievance redress mechanism (GRM); 5) External monitoring during implementation.

111 Appendix 2

Table 2: Domestic Laws, Regulations and Important Articles related to LURT for the Project

Issuing Effective Name Important articles relating to LURT for the Project agency date Article 3 The State applies the rural land contracting and management system. The rural land such as barren mountains, ditches, hills and beaches that are not suitable for household contracting may be contracted by means of bidding, auction and public consultation. Article 6 Women and men have equal rights in contracting rural land. The legitimate rights and interests of women will be protected in the contracting. No organizations or individuals shall exploit or infringe upon the rights for land contracting and management that women shall enjoy. Article 38 The following principles will be followed in the transfer of rights of land management: (I) Transfer the land-use right lawfully, voluntarily, and for compensation. No Law of the Order of the organizations or individuals shall compel or obstruct the land-use right transfer; (II) The People's President of nature of the ownership of the contracted land and its use for agriculture shall not be altered; Republic of January 1, the People's (III) The time limit of transfer shall not exceed the residual maturity of the contract period; China on the 2019 Republic of (IV) The transferee shall have the ability or qualification for agricultural operation; (V) Under Contracting of China the same conditions, the members of the collective economic organization shall enjoy the Rural Land priority. Article 46 With the contractor's written consent and after report to the collective economic organization for the record, the transferee may transfer the rights for land management again. Article 52 When the contract-issuing party contracts out rural land to an organization or individual other than the collective economic organization, it shall obtain the consent of more than two-thirds of the members of the villagers' meeting or more than two-thirds of the villagers' representatives of the members of the collective economic organization in advance, and submit to the township people's government for approval. Article 2 The transfer of rural land contracting and management rights shall conform to the principles of equal consultation, lawfulness, voluntariness and compensation. Measures for Article 4 The transfer of rural land contracting and management rights shall not change the the nature of ownership or agricultural use of the contracted land, or damage the overall Ministry of Administration agricultural productivity or the agricultural ecological environment. The time limit of transfer Agriculture January of shall not exceed the residual maturity of the contract period; the transfer shall not damage and Rural 01, 2020 Management- the lawful rights and interests of the interested parties and rural collective economic Affairs Right Transfer organizations. of Rural Land Article 9 If the contractor voluntarily entrusts the contract-issuing party or an intermediary organization to transfer its land management rights, the contractor shall issue a letter of authorization for the transfer. The letter of authorization shall state the matters, authority and

112 Appendix 2

Issuing Effective Name Important articles relating to LURT for the Project agency date time limit of the entrustment, and will be signed or sealed by the principal and the trustee. Without the contractor's written authorization, no organization or individual has the right to determine the transfer of farmers' land management rights in any way. Article 22 The contractor shall sign a transfer contract with the transferee on the basis of consensus through consultation. The transfer contract is made in quadruplicate, with both transfer parties holding one copy each, and the contract-issuing party and the rural land contract management authority of the township people's government keeping one copy each for record. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written transfer contract. Article 24 The contract for the transfer of land management rights generally includes the following contents: (I) The names and domiciles of both parties; (II) The name, the four boundaries, location, area and quality level of the transferred land; (III) The time limit of the transfer and the beginning and terminating dates; (IV) Mode of transfer; (V) Use of transferred land; (VI) The rights and obligations of both parties; (VII) The price and payment method of transfer; (VIII) Disposal of ground attachments and related facilities after the expiration of the contract; (IX) The attribution of the relevant compensation when land is expropriated, acquired or occupied according to law; (X) Liability for breach of contract. The text format of the transfer contract of rural land management rights will be determined by the competent agriculture and rural authorities of provincial people's governments. Article 27 The rural land contract management authority of township people's governments shall timely provide the contractor who has reached the intention of circulation with a transfer contract in uniform text format and guide the signing of the contract. Article 47 Where a dissension or dispute arises over the transfer of rural land management rights, the parties may settle the dispute through consultation or apply to the villagers’ committee or the township people's government for mediation. If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to rural land contract arbitration organization for arbitration, and they may bring a suit before a people's court. Rules for the Article 9 The trading market of transfer of rural land management rights publicly release the Operation of the supply and demand information. The information mainly includes the following contents: Circulation and Ministry of (I) Basic information of transferred land (including land location, the four boundaries, area, Trading Markets Agriculture June 29, quality level, land use actuality, expected price, mode of transfer, purpose of transfer and of the Right to and Rural 2016 other contents); Manage Rural Affairs (II) Basic information and related conditions of transferors or transferees; Land (for Trial (III) Other matters as required to be publicized. Implementation) Article 24 The trading market of transfer of rural land management rights shall formulate the

113 Appendix 2

Issuing Effective Name Important articles relating to LURT for the Project agency date service regulations and take necessary measures to ensure the trading of transfer of rural land management rights is open, fair and standardized, and shall consciously accept the supervision from the public and the administration from relevant authorities according to law. Article 6 The trading of transfer of rural land management rights may take the forms of transfer by agreement, competitive pricing, auction, bidding and other modes as stipulated by the laws and regulations of the State. The transferor shall make it clear at the time of submission that, upon the expiration of the project information release period, if a qualified inclined transferee is collected, the mode of transfer by agreement will be adopted; when Hunan Province two or more qualified inclined transferees are collected, what kind of public trading mode Rules for the they will use? If the mode of bidding is selected, the bid evaluation methods and criteria will Operation of the Agriculture be disclosed at the same time. Circulation and Commission November Article 7 Rural collective economic organizations, contracted farmers, family farms, large Trading Markets of Hunan 18, 2016 professional households, professional farmers’ cooperative federation, agricultural of the Right to Province enterprises and other new agricultural business entities, as well as other organizations or Manage Rural individuals with the agricultural production and management capacity, can all conduct the Land (for Trial trading in the trading market of transfer of rural land management rights according to law. Implementation) Article 15 The time limit for publicity of rural land management rights transfer information will be no less than 10 working days. A time interval will be set for the recirculate transaction of the management rights of the same land, which shall not be less than 20 working days in general. After the end of the publicity period, the rural land management rights transfer market shall organize the transaction. Law of the People's Republic of Article 3 In the case of a dispute over land contract and management, the parties may Order of the China on reconcile themselves or request the villagers’ committee or the township people's President of Mediation and January government for mediation. the People's Arbitration of 01, 2010 Article 4 If the parties are unwilling to resort to negotiation or mediation, or the negotiation Republic of Disputes over or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration China Contracting and commission for arbitration, and they may file a lawsuit in People's Court. Management of Rural Land)

114 Appendix 2

D. LURT Survey

In March 2020, the PMO, BARA, BOF, project design agency, RP-DI and other personnel of Pingjiang County jointly formed a joint survey team, which selected 6 town/ships and 9 project villages for field survey, including the Zhenghuang Village, Gaoping Village and Fujia Village of Anding Town, the Yangshulinjie Village of Jiayi Town, the Tangkou Village of Changshou Town, the Danjiang Village of Sanshi Town, the Pingjiang County Dorticulture Demonstration Center, the Shili Village of Yuping Town, and the Gaoduan Village of Hongqiao Town. The survey team carried out the field survey in the project site involved LURT, had an interview with the project implementation enterprises, project villages and some farmer households, investigated and understood the types of land involved in the transfer, the comparison of output before and after the transfer, the operation situation of the implementation enterprises, the willingness of the farmers participated, and the signing and performance of the transfer contract, and others.

In April 2020, the joint survey team convened all enterprises participated in LURT for a discussion, focusing on the investigation and understanding of the signing of transfer contracts, the handling of transfer procedures and the performance of transfer contracts, and collected copies of transfer contracts and payment vouchers.

Land involved in LURT

According to the survey, in the Promotion of eco-farming technology and practices area, the transferred land is 8641 mu, including 2799.3 mu of cultivated land. There are three types of land in transfer: cultivated land (including irrigated land and dry land), garden land and forest land. Most of them are contracted land and a few are village collective land that has not been contracted to households.

For the land involved in transfer, except for that most paddy fields are in normal cultivation before the transfer, the dry land, garden land and forest land are mostly mountainous land, and have a low cultivation rate in general due to the remote location and high altitude (Table 3).

115 Appendix 2

Table 3: Basic Information of Land Involved in LURT Component Information of land involved in transfer Project Cultivated land State of cultivation before Component Project village LURT area (mu) Types of land Town/ship area included (mu) transfer Most are wasteland, and a small Baiping Village Guantan 1257 466 Cultivated land amount of land is planted with Village Anding Town peanuts and sweet potatoes Fujia Village 143 Tea garden Waste land / tea garden Zhenghuang Village 200 Garden land Wasteland Qiuhu Village 260 29 Garden land, dry land Wasteland Hillside farmland and Sanshi Town Danjiang Village 200 120 Vegetables garden land Ecological tea gardenEcological Dutou Village 124 0 Garden land Wasteland Qinfang Village 78 13 Garden land, dry land Wasteland Meixian Town Aoshang Group 23 Garden land Wasteland Tongshi Town Zheliao Village 61 Suitable land for forest Wasteland Shangtashi Dongyuan Village 263 Dry land Wasteland Town Nanjiang Town Longtou Village 268 12 Garden land, dry land Wasteland

Wengjiang Town Baihe Village 626 161 Garden land, dry land Wasteland Yanglinjie Village 353 105 Garden land, dry land Rape Jiayi Town Yanglinjie Village 155 0 Forest land Barren mountain Lutou Village 350 170 Forest land Barren mountain Hongqiao Town Gaoduan Village 1000 Forest land Barren mountain Fushoushan Jinling Village, Jinlong Village, 1005 Forest land Barren mountain Town Huangjin Village Sanyang Shangshan Village 300 203 Wasteland Wasteland Township

paddy, and fruits Jiayi Town Yanglinjie Village 400 400 Paddy field Paddy

vegetables

Ecological

orchard Changshou Tangkou Village 400 400 Paddy field Paddy Town Cultivated land, garden Rice and soybean

Yuping Town Shili Village 400 120 land sweet potato Anding Town Gaoping Village 600 600 Paddy field Paddy

Ecological

camellia camellia garden Jiayi Town Sizhou Village 60.0 Forest land Barren mountain

Tongshi Town Bangshang Village 114.0 Forest land Barren mountain

13 24 8,641 2,799.3

116 Appendix 2

It can be seen from Table 3 that most of the land involved in LURT is unused land before transfer.

Enterprises involved in LURT

There are 19 enterprises participating in the LURT, including Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Gaoshan Tea Co., Ltd., Pingjiang Fumanchun Tea Co., Ltd., Hunan Qiuhu Huangjin Tea Industry Co., Ltd., Hunan Ancient Tea Culture Development Co., Ltd., Mingwang Tea Farmer Cooperation of Pingjiang County, Xiaoyuan Agriculture, Forestry and Animal Husbandry Cooperation of Pingjiang County, Renshengshan Cooperation, Changfadi Aid-the-Poor Cooperation of Dongyuan Village, Niusheng Planting and Breeding Farmer Cooperation of Pingjiang County, Pingjiang County, Pingjiang Huaxing Agricultural and Forestry Development Co., Ltd., Xinglin Cooperation of Pingjiang County, Hexin Agricultural Planting Farmer Cooperation of Pingjiang County, Shangshan Yougu Cooperation, Tianrun Ecological Farmer Cooperation of Pingjiang County, Pingjiang Ouyaxin Eco-agricultural Tourism Development Co., Ltd., Guanduan Planting and Breeding Farmer Cooperation of Shili Village, Lantian Ecological Planting and Breeding Cooperation, and Xianzhong Nursery of Pingjiang County. These enterprises are most agricultural cooperative federations founded by local people or village collective; and they have better agricultural operation ability, being familiar with local conditions and willing to accept.

LURT procedures

According to the survey, most of the project LURT procedures are indicated in the figure below.

117 Appendix 2

Registration form of employer Registration form of contractor

Land use-right transfer database

Information disclosure

Negotiation

Fill in the standard contract of land use-right transfer

Sign the standard contract

Endorsement contract, if required

The employer of land to perform the The contractor performs the contract contract

Contract execution

Diagram 1: Land Use-right Transfer Procedures

Signing and execution of LURT contracts

Through a large No. of field survey, interview, informal discussion and data collection, it is found that: (1) All the LURT contracts are performed under fully respecting the willingness of farmers, and both parties of the transfer entered into contract completely voluntary; (2) All transfer enterprises have signed LURT contracts with village collectives or farmers, totally 24 contracts; (3) Most of the contracts are standard in form and complete in content; (4) The contract period is within 8 - 50 years, and some contracts with cultivated LURT exceed the period stipulated in the Measures for the Administration on the Contracting and the Transfer of the Right to Use Rural Lands; (5) Most of the contracts are signed with women involved, but the overall rate of women involved is low; (6) Most of the contracts have been publicized at the signing stage, while a few have not; (7) During the transfer period, the nature of the land ownership and the agricultural use of the land have not been changed, and the comprehensive agricultural production capacity and agricultural ecological environment have not been damaged; and (8) All contracts were performed normally and the rent was paid in time.

Analysis of Transfer Effect

118 Appendix 2

After field exploration and interview, the survey team found that the land transferred for ecological tea garden and ecological camellia oleifera forest projects are generally garden land, forest land and dry land, most of which are wasteland before the transfer, and the farmers contracting the land had no land income or little income; the land transferred for the Promotion of eco-farming technology and practices is mainly paddy field and dry land, the traditional farming methods were used before the transfer, and the household income was CNY 300 - 400 /mu.

After the transfer, the land rent plus dividend for ecological tea garden and ecological camellia oleifera forest projects is CNY 30 - 400 /mu; the land rent plus dividend for eco-farming demonstration site projects is CNY 320 - 520 /mu.

Through the comparison of land income before and after the transfer, it can be found that the farmers got more direct income after the LURT than before.

In addition, after the LURT, a large No. of workers are demanded in the enterprises, which are basically recruited from local areas. According to the interview and survey, the workers, have a wage of no less than CNY 3,000 /month if long-term workers, and CNY 150 /day if temporary workers.

Taking Hunan Jiushizhai Gaoshan Tea Co., Ltd. as an example, a large No. of workers are demanded for tea planting, tea picking, tea making and sales, and the labor demand in peak season is about 800 people, of which more than 80% are local people.

For the ecological agriculture project, taking Lantian Ecological Planting and Breeding Professional Farmer's Cooperative Federation of Pingjiang County as an example, workers are demanded for paddy field cultivation and planting. On the premise of meeting the technical requirements, local people are preferred to be recruited. At present, there are 6 long-term workers with a wage of CNY 4,000 /month, but in peak season about 60 workers are required, and the daily wage is CNY 150 /day.

It can be seen that after the farmers transferred the land, they can obtain more income, including direct income and indirect income. According to the survey, farmers are very supportive to the LURT. Table 4 shows the income comparison of farmers before and after LURT.

119 Appendix 2 Table 4: LURT Questionnaire LURT LURT LURT involved LURT items LURT contracts Information Contract population disclosure execution No. of Whether Total Times of Project Total Female Types of Contract women the rent is Component Project village Involved enterprise population information Town/ship HHs (person) land duration signing the paid (person) disclosure contract regularly Baiping Village Hunan Xiangyue Tea Culture Cultivated 56 223 105 20 1 Yes Guantan Village Communication Co., Ltd. land Anding Town Fujia Village Hunan Jiushizhai Gaoshan Tea Co., Ltd. 38 75 34 Tea garden 30 Yes Zhenghuang Village Pingjiang Fumanchun Tea Co., Ltd. 87 348 171 Garden land 20 19 Yes Garden Hunan Qiuhu Huangjin Tea Industry Co., Qiuhu Village 39 1,080 602 land, dry 30 30 Yes Ltd. land Hillside Sanshi Town Hunan Ancient Tea Culture Development farmland Danjiang Village 42 317 130 20 5 3 Yes Co., Ltd. and garden land Mingwang Tea Farmer Cooperation of Dutou Village 135 820 327 Garden land 20 32 Yes Pingjiang County Xiaoyuan Agriculture, Forestry and Animal Garden

Ecological tea gardenEcological Qinfang Village Husbandry Cooperation of Pingjiang 32 128 72 land, dry 20 15 Yes Meixian County land Town Xiaoyuan Agriculture, Forestry and Animal Aoshang Group Husbandry Cooperation of Pingjiang 59 295 138 Garden land 20 16 Yes County Suitable Tongshi Zheliao Village Renshengshan Cooperation 131 537 260 land for 30 8 3 Yes Town forest

Shangtashi Changfadi Aid-the-Poor Cooperation of Dongyuan Village 50 230 102 Dry land 20 60 3 Yes Town Dongyuan Village Garden Nanjiang Hunan Ancient Tea Culture Development Longtou Village 206 887 284 land, dry 30 67 2 Yes Town Co., Ltd. land Garden Wengjiang Hunan Ancient Tea Culture Development Baihe Village 84 263 51 land, dry 30 39 2 Yes Town Co., Ltd. land Garden Niusheng Planting and Breeding Farmer Yanglinjie Village 147 673 351 land, dry 8 26 2 Yes Cooperation of Pingjiang County land Jiayi Town Pingjiang Huaxing Agricultural and Yanglinjie Village 89 431 161 Forest land 50 1 Yes Forestry Development Co., Ltd. Lutou Village Xinglin Cooperation of Pingjiang County 52 228 107 Forest land 50 2 Yes Hongqiao Gaoduan Village Hunan Jiushizhai Gaoshan Tea Co., Ltd. 420 1,800 870 Forest land 20 2 Yes Town 120 Appendix 2 LURT LURT LURT involved LURT items LURT contracts Information Contract population disclosure execution No. of Whether Total Times of Project Total Female Types of Contract women the rent is Component Project village Involved enterprise population information Town/ship HHs (person) land duration signing the paid (person) disclosure contract regularly Jinling Village, Fushoushan Hexin Agricultural Planting Farmer Jinlong Village, 394 1,578 792 Forest land 40 68 3 Yes Town Cooperation of Pingjiang County Huangjin Village Sanyang Shangshan Village Shangshan Yougu Cooperation 81 318 142 Wasteland 30 12 2 Yes Township

fruits and vegetables and vegetables fruits

Ecological Ecological paddy, Tianrun Ecological Farmer Cooperation of Jiayi Town Yanglinjie Village 700 3,089 1,726 Paddy field 15 329 6 Yes Pingjiang County

orchard Changshou Pingjiang Ouyaxin Eco-agricultural Tangkou Village 300 1,500 630 Paddy field 50 35 5 Yes Town Tourism Development Co., Ltd. Guanduan Planting and Breeding Farmer Cultivated

Yuping Town Shili Village 86 321 172 10 39 4 Yes Cooperation of Shili Village land Lantian Ecological Planting and Breeding Anding Town Gaoping Village 300 1,260 426 Paddy field 20 2 Yes Cooperation

Ecological

camellia camellia garden Jiayi Town Sizhou Village Xianzhong Nursery of Pingjiang County 7 35 13 Forest land 30 60 1 Yes Tongshi Bangshang Village Xianzhong Nursery of Pingjiang County 465 1,620 780 Forest land 17 114 1 Yes Town 13 24 19 4,000 18,056 8,446 974 45

121

Table 5: Income Comparison of Farmers Before and After LURT Component Information of land involved in LURT Income before LURT Income after LURT Increase in Cultivated Rent and income after Project LURT land Income Component Project village land area Types of land Crops Crops dividend LURT Town/ship area (mu) (CNY/mu) included (mu) (CNY/mu) (CNY/mu) Baiping Village Commercial 1257 466 Cultivated land 180 Tea 400 220 Guantan Village crops Waste land / Anding Town Fujia Village 143 Tea garden 0 Tea 350 350 tea garden Zhenghuang 200 Garden land Wasteland 0 Tea 150 150 Village Garden land Garden land, Qiuhu Village 260 29 Wasteland 0 Tea 100 dry land Above 100 dry land 300 Sanshi Town Hillside Danjiang 200 120 farmland and Vegetables 100 Tea 300 200 Village garden land Dutou Village 124 0 Garden land Wasteland 0 Tea 100 100 Garden land Garden land, Qinfang Village 78 13 Wasteland 0 Tea 100 dry land Above 100 dry land

Ecological tea gardenEcological Meixian Town 200 Aoshang Group 23 Garden land Wasteland 0 Tea 100 100 Suitable land Tongshi Town Zheliao Village 61 Wasteland 0 Tea 100 100 for forest Shangtashi Dongyuan 263 Dry land Wasteland 200 Tea 400 200 Town Village Garden land, Nanjiang Town Longtou Village 268 12 None 0 Tea 50 50 dry land Wengjiang Garden land, Baihe Village 626 161 None 0 Tea 50 50 Town dry land Yanglinjie Garden land, 353 105 Rape 0 Tea 50 50 Village dry land Yanglinjie Barren Jiayi Town 155 0 Forest land 0 Tea 50 50 Village mountain Barren Lutou Village 350 170 Forest land 0 Tea 100 100 mountain Gaoduan Barren Hongqiao Town 1000 Forest land 15 Tea 200 185 Village mountain Jinling Village, Fushoushan Jinlong Village, Barren 1005 Forest land 0 Tea 100 100 Town Huangjin mountain Village Sanyang Shangshan 300 203 Wasteland Wasteland 15 Tea 60 45 Township Village

padd

fruits fruits

vege table

orch

Ecol

ogic

and

ard

y, s Yanglinjie Comprehensive Jiayi Town 400 400 Paddy field Paddy 300 320 20 Village planting and 122

Component Information of land involved in LURT Income before LURT Income after LURT Increase in Cultivated Rent and income after Project LURT land Income Component Project village land area Types of land Crops Crops dividend LURT Town/ship area (mu) (CNY/mu) included (mu) (CNY/mu) (CNY/mu) breeding of paddy field Comprehensive Changshou Paddy field, dry Paddy field, planting and Paddy 520 dry Tangkou Village 400 400 Paddy field 300 Above 60 Town land wasteland breeding of land 360 paddy field Rice, Breeding in Yuping Town Shili Village 400 120 Cultivated land soybean and 400 430 30 paddy field sweet potato Breeding in Anding Town Gaoping Village 600 600 Paddy field Paddy 300 520 220 paddy field

Ecological

camellia camellia garden Barren Jiayi Town Sizhou Village 60.0 Forest land 0 Oil-tea camellia 30 30 mountain Bangshang Barren Tongshi Town 114.0 Forest land 0 Oil-tea camellia 88 88 Village mountain

123

E. GRM

The project area has established the LURT GRM, and the appeal procedures are as follows: 1) In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers’ committee or the township people's government for mediation. If an agreement is reached through mediation, the Villagers’ committee or the township people's government shall prepare a mediation agreement. 2) If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court. 3) The tribunal shall mediate the disputes over the contracting and management of rural land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall make an arbitration award in a timely manner. 4) If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award will be legally effective immediately. 5) According to the survey, the above appeal channels are unblocked, and no appeal has been received.

F. Conclusions and Corrective Action Plan

Conclusions

(1) All enterprises, villagers’ committees and most households participating in signing the contract have been informed of the information on the ADB-financed project, and all of them support the Project and the intended use of the land; (2) All transfer contracts were signed according to the willingness of farmers, and generated in words that are easily understood by both parties. They are informed of the content, and after consultation, both parties of the transfer are completely voluntary and equal; (3) All parties have obtained the contract, and the contract has been verified by a third party who has kept the copy; (4) The contracts were carried out in accordance with the legal procedures stipulated in the legal agreement, with complete LURT procedures handled, including effective consultation and information disclosure (5) The land-demand party provided reasonable compensation to the land-supply party. The rent varies from 30 CNY/mu to 720 CNY/mu. As a result of consultation, all villagers voluntarily accepted the price; (6) The transferred land includes cultivated land, garden land and forest land, of which the dry land, garden land and forest land are mostly wasteland or low-yield land. All the farmers involved have gained more income after the transfer, including direct land income and indirect migrant work income, benefited from the Project. (7) During the transfer period, the agricultural use of the land have not been changed, and the comprehensive agricultural production capacity and agricultural ecological environment have not been damaged; (8) All contracts were performed normally, and the rent was paid in time. Most of the rent was paid through the bank, and a small part was paid in cash; and (9) In case of disputes, counterparties may turn to the GRM.

Pending Issues and Correct Action Plans

124

(1) Strengthen the publicity of ADB-financed project to ensure that every household participating in the contract can get project information. (2) The 5 contracts signed by Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Gaoshan Tea Co., Ltd., Pingjiang Huaxing Agricultural and Forestry Development Co., Ltd., Lantian Ecological Planting and Breeding Cooperation and Xinglin Cooperation of Pingjiang County have no female signatures. Therefore, it is suggested that the contracts should be signed by both husbands and wives to ensure women's rights and interests. (3) The contract period for the LURT contract signed between Pingjiang Ouyaxin Eco- agricultural Tourism Development Co., Ltd. and the Tangkou Village of Changshou Town is 50 years, which exceeds the period stipulated for cultivated LURT, so it is suggested to revise and perfect it. (4) In order to ensure the signing and implementation of all LURT contracts can meet the requirements of ADB and PRC laws and regulations, it is suggested to carry out external tracking and monitoring for the projects with LURT implemented and LURT to be implemented.

Issues and correction plan are described in Table 6. All corrective actions will be completed by the RP updating stage and the LURT DDR will be updated and included as an appendix of the updated RP.

Table 6: Issues and Correction Action Plan Corrective Responsibility Problems Deadline measures subject Strengthen the publicity to ensure Before the Transfer 1. Some households participating in signing the that each household implementation enterprises and contract are not aware of the ADB-financed project. has been informed of the project in their town/ships of the project 2021 and villages information 2. The 7 contracts signed by Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Before the Transfer Gaoshan Tea Co., Ltd., Pingjiang Huaxing Both husband and implementation enterprises and Agricultural and Forestry Development Co., Ltd., wife sign together of the project in their town/ships Lantian Ecological Planting and Breeding 2021 and villages Cooperation and Xinglin Cooperation of Pingjiang County have no female signatures. 3. The contract period for the LURT contract signed Before the Transfer between Pingjiang Ouyaxin Eco-agricultural Tourism Revise and perfect implementation enterprises and Development Co., Ltd. and the Tangkou Village of the contract of the project in their town/ships Changshou Town is 50 years, which exceeds the 2021 and villages period stipulated for cultivated LURT.

125

Project Site Interview LURT Forums

126

、

127

Rent and Cash Payment Form of Lantian Ecological Planting and Breeding Farmer Cooperation of Pingjiang County

128 Appendix 3 Appendix 3: LURT Framework

The Project includes five major outputs, including: (i) water-related disaster risk management strengthened; (ii) accessibility to safe drinking water and sanitation services enhanced; (iii) Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated; (iv) Green procurement practices and environmental protection public awareness raising piloted; and (IV) Institutional, technical and management capacity improved. Among them, under Output 4, Subproject 8 (promotion of eco-farming) will involve land use right transfer. According to ADB good practice requirements for voluntary land leases, a land under right transfer (LURT) Framework has been prepared.

1. Project profile

205. In the Subproject 8, there are new camellia garden of 11,842.3 mu and new and slightly renovated tea gardens of 15,497 mu, including 63 agricultural ecological demonstration sites, involving 12 town/ships, including 61 villages. These lands involve LURT. Of these, 8,641 mu has been leased already through LURT; and 15,497 mu will be leased. Due diligence review has been conducted for the leased land (see separate DDR on LURT); and this LURT Framework for the future land leases.

Table 1 shows the basic conditions of the sub-project and the villages under Subproject 8. The LURT Framework aims to assist Pingjiang PMO in managing the transfer of the land use-right during implementation of the Project, and meet the requirements of ADB good practices and PRC laws and regulations.

129 Appendix 3 Table 1-1: Basic Conditions of Eco-farming Demonstration Sub-project Location Basic condition of project villages Land use manner Construction Village Population Total Village Land (mu) Project Construction for subproject land Project village scale/LURT Total Female Cultivated Town/ship Year Total HHs Total area use land (mu) population (person) land Ecological Tea Garden Wushi Town Yanjia Village 438.2 2021-2023 608 2546 1256 9319 2589 Lease Hengcha Village 303.3 2021-2023 498 2180 965 5899 1180 Lease Huantian Village 179.1 2021-2023 723 3266 1304 12106 1980 Lease Sanxing Village 55.8 2021-2023 456 1997 870 8232 1280 Lease Sanshi Town Baofeng Village 34.1 2021-2023 487 2086 1066 6115 1659 Lease Lianhua Village 776.6 2021-2023 338 1638 823 6031 958 Lease New Dong'an Village 158.1 2021-2023 923 3957 1957 9465 3280 Lease Sanjiao Village 73.5 2021-2023 760 3060 1480 13858 1673 Lease Lushi Village 443.2 2021-2023 681 2700 1215 14640 1473.5 Lease Xinxing Village 36.4 2021-2023 675 2741 1234 13215 1848.8 Lease Huilong Village 682.2 2021-2023 874 3540 1683 28050 2390.7 Lease Sandun Zoujia Village 1887.4 2021-2023 564 2259 1017 13140 1276.1 Lease Township Daishi Village 37.2 2021-2023 1011 4134 1860 13830 1803.2 Lease Zhonglong Village 114.5 2021-2023 780 3189 1436 9530 1980.2 Lease Chetian Village 51.7 2021-2023 830 3357 1511 18900 1525.3 Lease Anding Village 35.0 2021-2023 320 1506 662 3337.5 2179.5 Lease Daqiao Village 138.9 2021-2023 793 3765 1656 8625 5839.5 Lease Zhima Village 78.7 2021-2023 675 3210 1412 7773 5901 Lease Jiangdong Village 68.9 2021-2023 428 1651 726 3805.5 2467.5 Lease Zhenghuang Residents' Committee 170.8 2021-2023 825 3506 1542 7473 5229 Lease Anding Town Guantang Village 209.0 2021-2023 591 2560 1126 4411.5 3793.5 Lease Tianmo Village 214.4 2021-2023 510 2202 968 7026 3561 Lease Xiaotian Village 31.6 2021-2023 770 3240 1425 11677.5 6198 Lease Yuetian Village 287.3 2021-2023 350 1583 696 3954 3247.5 Lease Gaoping Village 86.2 2021-2023 532 2136 939 11364 4836 Lease Changtian Village 289.2 2021-2023 518 2066 909 7605 3433.5 Lease Tiane Village 125.9 2021-2023 531 2049 988 3329 746.9 Lease Xiabai Village 81.6 2021-2023 614 2379 1124 7106.5 1141.69 Lease Zheliao Village 108.3 2021-2023 947 3680 1722 12060.5 1866.28 Lease Jiangyuan Village 304.2 2021-2023 816 3133 1431 12121.5 1696.53 Lease Meixian Town Donggao Village 58.9 2021-2023 892 3840 1880 8270.5 1394.86 Lease Gaoyi Village 38.4 2021-2023 611 2251 1050 5598 800.25 Lease Shiling Village 84.5 2021-2023 629 2404 1117 6150.5 1345.39 Lease Sanli Village 33.3 2021-2023 665 2485 1180 9648.5 1318.23 Lease Xiaoyuan Village 233.1 2021-2023 661 2815 1317 8369 1440.45 Lease 130 Appendix 3 Location Basic condition of project villages Land use manner Construction Village Population Total Village Land (mu) Project Construction for subproject land Project village scale/LURT Total Female Cultivated Town/ship Year Total HHs Total area use land (mu) population (person) land Hengjiang Village 81.8 2021-2023 408 1608 716 30450 1719 Lease Lianhe Village 275.2 2021-2023 356 1760 791 11250 1716 Lease Yangliu Village 193.4 2021-2023 380 1640 802 16350 1196 Lease Tanwan Village 466.7 2021-2023 436 2013 890 12750 1603 Lease Jiayi Town Jiayi Village 108.7 2021-2023 426 2975 14586 6000 1301 Lease Zaolun Village 283.1 2021-2023 404 2024 964 6135 1707 Lease Lijiang Village 126.0 2021-2023 524 2080 992 20190 1969 Lease Xianzhong Residents' Committee 47.5 2021-2023 1069 5200 2260 10500 2259 Lease Bangshang Village 110.6 2021-2023 460 1656 815 1157 1067 Lease Yongxiang Village 33.3 2021-2023 271 1239 600 1050 471 Lease Dezi Village 112.5 2021-2023 318 1210 490 505 480 Lease Tongshi Town Yanzhou Village 451.7 2021-2023 613 2236 1230 1629 1500 Lease Yangdun Village 139.8 2021-2023 287 1150 540 670 550 Lease Hewang Village 991.0 2021-2023 873 3260 1860 1640 1240 Lease Shidong Village 129.5 2021-2023 300 1206 460 1000 700 Lease Mujin Town Daxing Village 342.0 2021-2023 649 2760 948 30000 1648 Lease Subtotal 51 villages 11842.3 2021-2023 30660 129128 72491 483312 106459 Lease Ecological Camellia Garden Zhongxian Village 248 2021-2023 510 2430 1250 2150 1800 Lease Anding Town Fujia Village 300 2021-2023 298 1496 846 2248.88 883 Lease Baiyu Village 413 2021-2023 1182 4286 2078 4052 3314 Lease Gaohe Village 56 2021-2023 150 2064 986 1886 1346 Lease Sanshi Town Luoping Village 60 2021-2023 376 1636 832 1250 426 Lease Sanjiao Village 510 2021-2023 760 3180 1460 11778 1673 Lease Sandun Lease Gongping Village 93 2021-2023 426 1652 680 21680 680 Township Meixian Town Jiangyuan Village 118 2021-2023 685 3148 1501 12801 1693 Lease Nanjiang Town Fenghuangshan Village 832 2021-2023 1448 5109 2299 54054 1400 Lease Wengjiang Town Zhangyi Village 302 2021-2023 375 1386 683 2692 1082 Lease Hongqiao Town Mufu New Village 242 2021-2023 366 1560 702 14470 1270 Lease Fushoushan Lease Luxi Village 480 2021-2023 941 4143 1960 29004 2906 Town Subtotal 12 villages 3654 2021-2023 7517 32090 15277 158066 18473 Lease Total 12 61 villages 15497 2021-2023 38177 161218 87768 641378 124932 Lease

131 Appendix 3 2. Objectives and Principles

2.1 Objectives

The LURT Framework aims to assist Pingjiang PMO in managing the transfer of the land use- right during implementation of the Project, and meet the requirements of ADB and PRC laws and regulations.

2.2 Principles

(1) Equality, voluntariness, legal procedures and fair compensation. Equality means that both parties have equal legal status. Voluntariness means that the transfer of the right to contract and use lands must be completely voluntary for both parties, and one party shall not force the other party to make or accept the transfer. Legal procedures mean that the land use-right must be transferred in accordance with the laws stipulated in the legal agreement. Fair compensation means that the land use-right transferred shall be compensated according to the agreed market price. (2) The ownership and the nature of the agricultural land transferred remain unchanged. The transfer of the land use-right excludes the ownership, so the ownership of the land transferred remains unchanged. However, the future users of the land transferred shall not change the nature of agricultural land, that is, they shall not change the land transferred to non-agricultural use. (3) Government guidance. Pingjiang PMO and relevant government departments guide the legal transfer of rural land. (4) Grievance will be addressed through grievance redress mechanism (GRM). GRM of the Project shall be used for any grievance.

3. Legal Framework

The preparation and implementation of the LURT of the Project shall be in accordance with relevant laws of PRC and relevant provisions of Hunan Province.

3.1 Main laws, regulations and policies of PRC

3.1.1 Main laws, regulations and policies of PRC:

1. Law of the People's Republic of China on the Contracting of Rural Land (secondly amended on December 29, 2018) 2. Measures for the Administration of Management-Right Transfer of Rural Land (amended draft for comments), officially implemented on January 1, 2020; 3. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (June 29, 2016) 4. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land in Hunan Province (for Trial Implementation) (November 18, 2016) 5. Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land) (starting since January 1, 2010)

3.1.2 Summary of important legal provisions

1) Law of the People's Republic of China on the Contracting of Rural Land

132 Appendix 3 Article 3 The State applies the rural land contracting and management system. The rural land such as barren mountains, ditches, hills and beaches that are not suitable for household contracting may be contracted by means of bidding, auction and public consultation.

Article 6 Women and men have equal rights in contracting rural land. The legitimate rights and interests of women shall be protected in the contracting. No organizations or individuals shall exploit or infringe upon the rights for land contracting and management that women shall enjoy.

Article 7 During contracting of rural land, the principle of openness, fairness and justice shall be followed, and the interest relationships of the state, the collective and the individual shall be correctly dealt with.

Article 36 The contractor may, on its own, decide to transfer the rights for land management to others by means of lease (subcontracting), buying shares or other means in accordance with the laws, and shall put it on record with the employer.

Article 38 The transfer of the rights for land management shall be in line with the following principles:

(i) Be on the basis of the laws, voluntariness and compensation, and no organization or individual may force or hinder the transfer of the rights for land management; (ii) The nature of the land ownership and the agricultural use of the land shall not be changed, and the comprehensive agricultural production capacity and agricultural ecological environment shall not be damaged; (iii) The transfer time limit shall not exceed the remaining time limit of the contract period; (iv) The transferee must have agricultural operation ability or qualification; (v) Under the same conditions, the members of this collective economic organization enjoy priority.

Article 40 Both parties shall sign a written transfer contract for the transfer of the rights for land management. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written contract.

Article 41 Where the time limit for the transfer of the rights for land management is more than five years, the parties concerned may apply to the registration agency for the registration of the rights for land management. Without registration, it shall not act against the third party.

Article 42 The contractor shall not unilaterally terminate the contract for the transfer of the rights for land management, unless the transferee:

(i) Changes the agricultural use of the land without authorization; (ii) Abandons or discontinues farming for more than two consecutive years; (iii) Seriously damages the land or destroy the ecological environment of the land; (iv) Has other serious breaches of contract.

Article 46 With the contractor's written consent and after report to the collective economic organization for the record, the transferee may transfer the rights for land management again.

Article 50 Barren hills, ditches, hills, beaches, etc. may be contracted directly through bidding, auction, disclosure, consultation, etc., or the rights for land management may be converted into shares and distributed to the members of the collective economic organization before contracting

133 Appendix 3 or joint-stock operations.

Article 52 When the contract-issuing party contracts out rural land to an organization or individual other than the collective economic organization, it shall obtain the consent of more than two-thirds of the members of the villagers' meeting or more than two-thirds of the villagers' representatives of the members of the collective economic organization in advance, and submit to the township people's government for approval.

Article 53 Where rural land is contracted through bidding, auction, disclosure, consultation, etc., and a certificate of ownership is obtained through registration according to the laws, the rights for land management may be transferred by lease, buying shares, mortgage or other means according to the laws.

2) Measures for the Administration of Management-Right Transfer of Rural Land;

Article 2 The transfer of rural land contracting and management rights shall conform to the principles of equal consultation, lawfulness, voluntariness and compensation.

Article 4 The transfer of rural land contracting and management rights shall not change the nature of ownership or agricultural use of the contracted land, or damage the overall agricultural productivity or the agricultural ecological environment. The time limit of transfer shall not exceed the residual maturity of the contract period; the transfer shall not damage the lawful rights and interests of the interested parties and rural collective economic organizations.

Article 9 If the contractor voluntarily entrusts the contract-issuing party or an intermediary organization to transfer its land management rights, the contractor shall issue a letter of authorization for the transfer. The letter of authorization shall state the matters, authority and time limit of the entrustment, and shall be signed or sealed by the principal and the trustee. Without the contractor's written authorization, no organization or individual has the right to determine the transfer of farmers' land management rights in any way.

Article 22 The contractor shall sign a transfer contract with the transferee on the basis of consensus through consultation. The transfer contract is made in quadruplicate, with both transfer parties holding one copy each, and the contract-issuing party and the rural land contract management authority of the township people's government keeping one copy each for record. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written transfer contract.

Article 24 The contract for the transfer of the rights for land management generally includes the following contents: (i) The name and address of both parties; (ii) The name, four boundaries, location, area, quality grade of the land transferred; (iii) The time limit and the starting and ending date of transfer; (iv) Transfer mode; (v) The use of the land transferred; (vi) The rights and obligations of both parties; (vii) Transfer price and payment method; (viii) Disposal of ground ancillaries and related facilities after expiration of contract; (ix) The ownership of relevant compensations when the land is expropriated, acquired or occupied according to the laws; (x) Liability for breach of contract.

134 Appendix 3 The text format of the transfer contract of rural land management rights shall be determined by the competent agriculture and rural authorities of provincial people's governments.

Article 27 The rural land contract management authority of township people's governments shall timely provide the contractor who has reached the intention of circulation with a transfer contract in uniform text format and guide the signing of the contract.

Article 28 The rural land contract management organization of the township people's government shall set up the ledger for the transfer of the rights for the management of rural land and record the transfer timely and accurately.

Article 29 The rural land contract management organization of the township people's government shall file and properly store the transfer contract of the rights for the management of rural land and relevant documents, datum, etc.

Article 32 In the process of guiding the signing of the transfer contract, the rural land contract management organization of the township people's government finds that both parties of the transfer have violated the provisions of laws and regulations, and shall promptly make correction.

Article 35 The industrial and commercial enterprises and other social capital shall meet the following qualifications when they obtain the rights for land management through transfer: (i) Have the qualification to be engaged in agricultural management; (ii) Have suitable agricultural management ability; (iii) Have other necessary conditions.

Article 37 The industrial and commercial enterprises and other social capital shall not do the following acts when they obtain the rights for land management through transfer: (i) Dig ponds and plant trees on basic farmland; (ii) Build houses, excavate sand, stones and ore, and borrow soil on cultivated land without authorization; (iii) Change the use of the land without authorization; (iv) Damage the land or destroy the ecological environment of the land; (v) Have other acts damaging the land.

Article 38 The county people's government shall establish a review committee composed of administrative departments in charge of agriculture and rural affairs, finance, development and reform, natural resources, environmental protection and ecological environment, and market supervision and management, as well as representatives of the rural collective economic organization, farmers' representatives, agricultural experts, etc., for examination and review of obtaining of the rights for the management of rural land by industrial and commercial enterprises and other social capital by transfer. The routine work of the review committee shall be in the charge of the administrative department in charge of agriculture and rural affairs.

Article 47 Where a dissension or dispute arises over the transfer of rural land management rights, the parties may settle the dispute through consultation or apply to the villagers' committee or the township people's government for mediation.

If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to rural land contract arbitration organization for arbitration, and they may bring a suit before a people's court.

135 Appendix 3 3) Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (June 29, 2016)

Article 9 The trading market of transfer of rural land management rights publicly release the supply and demand information. The information mainly includes the following contents: (i) Basic information of transferred land (including land location, the four boundaries, area, quality level, land use actuality, expected price, mode of transfer, purpose of transfer and other contents); (ii) Basic information and related conditions of transferors or transferees; (iii) Other matters as required to be publicized.

Article 12 The floor price of the transfer of the rights for the management of the land not contracted by the collective economic organization shall be determined by the collective of the farmers upon democratic consultation.

Article 15 In accordance with the relevant requirements of the market for the transfer of the rights for the management of rural land, both parties to the transfer can obtain the verification of the transfer provided by the market for the transfer of the rights for the management of rural land after signing the contract.

Article 24 The trading market of transfer of rural land management rights shall formulate the service regulations and take necessary measures to ensure the trading of transfer of rural land management rights is open, fair and standardized, and shall consciously accept the supervision from the public and the administration from relevant authorities according to law.

4) Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land in Hunan Province (for Trial Implementation) (November 18, 2016)

Article 6 The trading of transfer of rural land management rights may take the forms of transfer by agreement, competitive pricing, auction, bidding and other modes as stipulated by the laws and regulations of the State. The transferor shall make it clear at the time of submission that, upon the expiration of the project information release period, if a qualified inclined transferee is collected, the mode of transfer by agreement will be adopted; when two or more qualified inclined transferees are collected, what kind of public trading mode they will use? If the mode of bidding is selected, the bid evaluation methods and criteria shall be disclosed at the same time.

Article 7 Rural collective economic organizations, contracted farmers, family farms, large professional households, professional farmers’ cooperative federation, agricultural enterprises and other new agricultural business entities, as well as other organizations or individuals with the agricultural production and management capacity, can all conduct the trading in the trading market of transfer of rural land management rights according to law.

Article 15 The time limit for publicity of rural land management rights transfer information shall be no less than 10 working days. A time interval shall be set for the recirculate transaction of the management rights of the same land, which shall not be less than 20 working days in general. After the end of the publicity period, the rural land management rights transfer market shall organize the transaction.

5) Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land)

136 Appendix 3 Article 3 In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers' committee or the township people's government for mediation. Article 4 If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court.

Article 7 The Villagers' Committee and the township people's government shall strengthen the mediation of disputes over the contracting and management of rural land and assist the parties to reach an agreement to resolve the disputes.

Article 10 If an agreement is reached through mediation, the Villagers’ Committee or the township people's government shall prepare a mediation agreement.

Article 11 The tribunal shall mediate the disputes over the contracting and management of rural land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall make an arbitration award in a timely manner.

Article 18 The application for arbitration of disputes over the contracting and management of rural land shall be valid for two years from the date when the parties know or should know that their rights have been infringed.

Article 23 Where the Rural Land Contracting Arbitration Commission decides to accept the application, it shall, within five working days from the date of receiving the application for arbitration, deliver the notice of acceptance, arbitration rules and the list of arbitrators to the applicant; if it decides not to accept or terminate the arbitration procedure, it shall notify the applicant in writing within five working days from the date of receiving the application for arbitration or discovering the circumstances of terminating the arbitration procedure, and state reasons.

Article 24 The Rural Land Contracting Arbitration Commission shall, within five working days from the date of accepting the application for arbitration, deliver the notice of acceptance, copy of the application for arbitration, the arbitration rules and the list of arbitrators to the respondent.

Article 25 The respondent shall, within ten days from the date of receiving the copy of the application for arbitration, submit the statement of defence to the Rural Land Contracting Arbitration Commission. If it is really difficult to complete written defence, the respondent may make oral defence, but such shall be included in the written records by the Rural Land Contracting Arbitration Commission, and signed, sealed or fingerprinted by the respondent after verification. The Rural Land Contracting Arbitration Commission shall, within five working days from the date of receiving the statement of defence, deliver the copy of the statement of defence to the applicant. The failure of the respondent to submit a defence shall not affect the proceeding of the arbitration procedures.

Article 30 The arbitration concerning disputes over contracting and management of rural land shall be held in court.

Article 32 After the submission of an arbitration application, the parties may settle the dispute among themselves through conciliation. If a conciliation agreement has been reached, the parties may apply to the arbitration tribunal for an award based on the conciliation agreement. Then may also withdraw the arbitration application.

Article 44 The tribunal shall make a decision and make an award in accordance with the facts,

137 Appendix 3 laws and state policies it has determined. An award shall be based on the opinion of the majority arbitrators. The opinion of the minority arbitrators shall be recorded in writing. If an opinion of the minority arbitrators shall be recorded in writing. If an opinion of the majority arbitrators cannot be constituted at the tribunal, the award shall be given according to the opinion of the presiding arbitrator.

Article 45 The Rural Land Contracting Arbitration Commission shall, within three working days from the date of making the award, deliver the award to the parties and inform them of their right to sue and the time limit for refusing to accept the award.

Article 46 The tribunal shall perform its duties independently according to the laws without interference of administrative organs, social organizations or individuals.

Article 47 The arbitration of disputes over contracting and management of rural land shall be completed within sixty days from the date of accepting the application for arbitration; where the case is complicated and needs to be extended, the extension may be made with the approval of the chairman of the Rural Land Contracting Arbitration Commission, and the parties shall be notified in writing, but time limit of the extension shall not exceed thirty days.

Article 48 If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award shall be legally effective immediately.

Article 49 The parties shall, in accordance with the prescribed time limit, perform the legally effective conciliation statement and award. If one party fails to comply with the arbitral award, the other party may apply for its enforcement to the basic people's court of the place where the party against whom the application for enforcement is made has his domicile or where his property is located. The people's court accepting the application shall execute it according to the laws.

3.2 Relevant requirements of ADB on good practices for voluntary land use agreement

In the process of signing and implementing voluntary land use agreements, the following requirements shall be met; 1) The principles of fairness, openness, impartiality and voluntariness; 2) The principle of gender equality; 3) The principle of consultation; 4) Establishment and operation of grievance redress mechanism (GRM); 5) External monitoring during implementation.

4 Transfer Procedures of LURT

According to the above laws, regulations and policies on the transfer of the land use, procedures for the LURT for the Project are as follows (see the figure below at the same time):

Information collection.

ᬅFarmers intending to transfer the land use-right shall submit detailed data on the land (such as location, area, use and reference price) to the villagers' committee and then report to the township people's government.

Information disclosure.

ᬆ 138 Appendix 3

After collecting the information, the township people's government will sort out the transfer information of land use-right of each village and establish a database. The information sorted out will be disclosed in time by means of network, broadcast, newspaper, blackboard newspaper, electronic display screen, etc. The township people's government will also update the database of the transfer of the land use-right.

Consultation between both parties.

ᬇAccording to the arrangement of the township people's government, both parties shall consult the conditions and prices for the transfer of the land use-right on the basis of equality, voluntariness and mutual benefit.

Signing of the transfer contract of land use-right.

ᬈWhen both parties reach an agreement on conditions and prices, the township people's government shall provide 4-5 copies of the standard contract (the fifth copy for approval if necessary) for both parties to sign.

Approval of the transfer contract of land use-right.

Theᬉ township people's government verifies and approves the contract as needed.

Registration of transfer of the land use-right.

ᬊThe township people's government timely and accurately registers the transfer information of land use-right, and submits relevant materials to the PMO for documentation.

Documents preparation.

Theᬋ land owner/user of land use-right shall lease the land use-right under the guidance of the PMO, and document relevant materials of the land use-right transferred.

Supervision of the implementation of the contract.

ᬌBoth parties shall actively perform the contract, and the township people's government shall supervise the performance of the contract. In case of any conflict or dispute, the township people's government shall timely report to the PMO.

139 Appendix 3

Registration form of employer Registration form of contractor

Land use-right transfer database

Information disclosure

Negotiation

Fill in the standard contract of land use-right transfer

Sign the standard contract

Endorsement contract, if required

The employer performs the The contractor performs the contract contract

Contract execution

Diagram of Transfer Procedures of Land Use-right

5 Contents of LURT Contract

The LURT contract of land use-right shall contain the following clauses:

(1) The name and address of both parties; (2) The location, four boundaries, area and quality of the land transferred; (3) The time limit of the transfer and the starting and ending date; (4) Method of transfer; (5) Land purpose; (6) Rights and obligations of both parties; (7) Transfer expenses and disbursement methods of land use-right; (8) Disposal of ancillaries and related facilities after expiration of contract; (9) Liability for breach of contract; (10) Conflict resolution methods; (11) Other measures that both parties deem necessary; (12) The seal of the approval agency; and (13) Date of contract.

140 Appendix 3 6 Measures for Protecting the Rights and Interests of the Parties to the LURT Contract

During the signing and execution of the contract, the following measures will be taken to protect the rights and interests of the parties to the contract:

1) During the validity period of the contract, if the land transferred is seriously damaged due to natural disasters or force majeure, both parties can terminate or change the contract through consultation and return the land to the original user. Where there are specific contractual provisions on serious damage to land, such provisions shall prevail. 2) The land lease contract involving each family shall be signed by the couple. 3) The contract shall be approved by the township people's government free of charge. 4) In accordance with the Rural Land Contract Law of the People's Republic of China, the Measures for the Administration on the Contracting and the Transfer of the Right to Use Rural Lands and the relevant laws and policies of provinces, cities and counties on the transfer of the land use-right, the time limit of the transfer of the land use-right shall be consulted by both parties on the basis of equality. 5) The transfer price of the land use-right is determined according to the market price, namely, referring to the local similar cases of the transfer of the land use-right and combining the land type, grade, crop growth or the transfer price of the land use-right in the nearby villages. For the transfer of the land use-right with a time limit of more than 5 years, both parties shall set the time for reconsultation of the land price in consideration of the interests of the farmers. 6) As part of the external social monitoring conducted by the EMA, sample LURT contracts (no less than 5% of total contracts in each town) will be reviewed by the external monitor prior to commencement of work on relevant land plots.

7 GRM

As the transfer contract of the land use-right is based on mutual consultation and agreement, it is unlikely to cause huge disputes. However, disputes may occur during the LURT. In accordance with the Law of the People's Republic of China on the Mediation and Arbitration of Rural Land Contract Disputes, a transparent and effective GRM is established in the Project to resolve disputes after the transfer of the land use-right.

The process is as follows:

In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers' committee or the township people's government for mediation. If an agreement is reached through mediation, the Villagers’ Committee or the township people's government shall prepare a mediation agreement.

If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court. a. The tribunal shall mediate the disputes over the contracting and management of rural land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall made an arbitration award in a timely manner. b. If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award shall be legally effective immediately.

141 Appendix 3

8 Implementation Management and Responsibilities

In accordance with relevant laws and regulations, Pingjiang PMO, BARA of Pingjiang County and township people's government will manage and guide the transfer of the LURT in their respective administrative areas.

1) Responsibilities of PMO

1) Employ an external monitor to review and verify the contract, and make a review report as part of monitoring report for to be submitted to ADB; 2) Supervise the signing and performance of the contract; 3) Participate in the resolution of disputes/conflicts; 4) Prepare the standard contract for the whole project; 5) Guide LURT throughout the process.

2) Responsibilities of township people's government

1) Collect, analyze and disclose information; the transfer contract of the land use-right can be signed at the location of the township people's government; 2) Provide the standard contract for farmers/the villagers' committee to assist them in reaching agreement on the contract clauses and conditions and sign the contract; 3) Verify and approve the contract signed as a third party; 4) Register the transfer information of the land use-right timely and accurately; 5) Document the transfer materials of land use-right; 6) Investigate and correct the illegal transfer of the land use-right; 7) Resolve the disputes related to the transfer of the rural land use-right 8) Guide and manage the transfer of the land use-right according to the laws; 9) Provide consultation services.

3) Responsibilities of villagers' committee

1) Report the collection and classification of transfer information of the land use-right to the township people's government; 2) Assist the township people's government to resolve disputes.

9 External Social Monitoring

To carry out external social monitoring on the Project, the PMO will employ an external monitor, same for RP, LURT and corrective actions agreed in DDRs. The external monitor will also monitor LURT, including due diligence review of LURT contract before starting work on the relevant land and will include findings of the due diligence in monitoring reports to be submitted to ADB. See Table 9-1 for the outline of the due diligence.

Table 9-1: Outline of LURT Due Diligence No. Key requirements Verification of indexes of various requirements Has the counterparty (family or village collective) obtained information about the Project? 1 Transparency Has the counterparty obtained information about the specific use of the land? Does the counterparty support the Project and the intended land use?

142 Appendix 3 Is the counterparty involved in the consultation process (for example, meeting)? 2 Consultation Has the content of the agreement been explained to the counterparty? Have consultations also been held with spouses and/or other family members of the counterparty? Does the counterparty sign the agreement without pressure? 3 Voluntary Do spouses and/or other family members agree on leasing the counterparty's land? Is the rent equivalent to the average annual output value or market price of the land? Is there any provision for regular rent adjustment? 4 Equity/equality In case of disputes, can the counterparty turn to GRM? Does the counterparty receive the rent according to the contract? Is it paid in cash or through the bank? Is the counterparty likely to be adversely affected (livelihoods, etc.)? 5 No adverse effects Does the contract address any potential impact? Has the counterparty been provided a written contract? 6 Written documents Is the contract written in words that are easy for the counterparty to understand? Is the contract verified/certified by a third party? Third-party 7 Is a copy of the contract provided to a third party? Such as agriculture affairs verification office and/or land management office under town government. Legal and policy 8 Does the contract comply with relevant laws and policies? compliance

143 Appendix 4

Appendix 4: Land Acquisition Due Diligence

1. The Project involves four facilities that have already conducted land acquisition, namely, (1) Mishui Commercial Center, (2) Shoujiaping Logistic Project, (3) Yihuacheng Project and (4) the Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area. The land acquisition for Mishui Commercial Center was completed in September 2017, the Shoujiaping Logistic Project was completed in May 2019, the Yihuacheng was completed in January 2020, and the Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area was completed in April 2020. Table 1 summarizes the basic information of conducted land acquisition.

Table 1: Basic Information of conducted land acquisition Land Current Land Acquisition No. Component Town/ship Village Project nature area (mu) nature time (year) Mishui State-owned Getengping 1 Commercial Sanyang Construction 70.15 construction Sep 2017 Village Center Project land State-owned Shoujiaping Government 2 Chengguan Gucheng 9.3 construction May 2019 Logistic Project logistic land State-owned Yihuacheng 3 Sanyang Daxi Construction 29.03 construction Jan 2020 Project land Logistic Project at the Plot on South State-owned Side of Xianjiang Government 4 Sanyang Daxi 32.96 construction Apr 2020 River in Dazhong logistic land Resettlement Area 5 Total 141.45

Picture of current land Status

1. Purpose of due diligence

2. The purposes of land acquisition due diligence are to: • check the land acquisition and resettlement of APs to confirm they conform to the laws, regulations and policies of the State and Hunan Province; • ensure the resettlement process, resettlement expense management, income recovery

144 Appendix 4

and satisfaction of APs was conducted or achieved, and that participation of the female APs and their rights are protected during land acquisition; • ensure they protect the vulnerable groups and ensure compliance of supporting policies, public participation, information disclosure and grievance redress mechanism; and • identify if there are any problems in resettlement and put forward feasible suggestions.

2. Method

3. The land acquisition area for Mishui Commercial Center Project is 70.15 mu, including 28.35 mu cultivated land in the scope of Group 6, Group 10 and Group 8 in Getenping Village, Sanyang Township, Pingjiang County. All 70.15 mu acquired land affected 142 persons from 28 households, including 92 rural labors and 60 females.

4. The land acquisition area for Shoujiaping Logistic Project is 9.3 mu, with 5.76 mu cultivated land; the scope of land acquisition involves Huachuan Group in Gucheng Village, Chengguan Town, Pingjiang County. All 9.3 mu acquired land affected 19 persons from 4 households, including 8 rural labors and 7 females.

5. The land acquisition area for Yihuacheng Project is 29.03 mu, with 13.74 mu cultivated land; the scope of land acquisition involves Kongming Group, Changtang Group and Xiaojia Group in Daxi Village, Sanyang Township, Pingjiang County. All 29.03 mu acquired land affected 61 persons from 12 households, including 27 rural labors and 23 females.

6. The land acquisition area for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, with 26.26 mu cultivated land; the scope of land acquisition involves Xinwu Group and Chenjia Group in Daxi Village, Sanyang Township, Pingjiang County. All 32.96 mu acquired land affected 68 persons from 15 households, including 30 rural labors and 29 females. Table 2 summarizes the basic information of land acquisition of the four projects.

145 Appendix 4

Table 2: Basic Information of Land Acquisition of the four Projects (Unit: mu) Type of land acquisition Other No. Component Town/ship Village Group Paddy Dry Forest Pond Rural Subtotal construction field land land surface roads land Total 141.45 40.45 33.66 22.13 9.70 4.71 30.79 Mishui Commercial Center 1 70.15 28.35 22.13 8.07 2.92 8.68 Project Sanyang 70.15 28.35 22.13 8.07 2.92 8.68 Getengping 70.15 28.35 22.13 8.07 2.92 8.68 Village Group 6 29.71 10.50 8.24 6.30 1.02 3.65 Group 10 16.80 6.18 5.27 0.60 1.90 2.85 Group 8 23.64 11.67 8.62 1.17 2.18 2 Shoujiaping Logistic Project 9.30 4.99 0.77 3.54 Chengguan 9.30 4.99 0.77 3.54 Gucheng 9.30 4.99 0.77 3.54 Huachuan 9.30 4.99 0.77 3.54 3 Yihuacheng Project 29.03 11.24 2.50 15.29 Sanyang 29.03 11.24 2.50 15.29 Daxi 29.03 11.24 2.50 15.29 Kongming 6.63 2.25 4.38 Changtang 8.15 3.46 4.69 Xiaojia 14.25 5.53 2.50 6.22 Logistic Project at the Plot on South Side of Xianjiang River 4 32.96 24.22 2.04 1.63 1.79 3.28 in Dazhong Resettlement Area Sanyang 32.96 24.22 2.04 1.63 1.79 3.28 Daxi 32.96 24.22 2.04 1.63 1.79 3.28 Xinwu 17.30 15.8 1.5 Chenjia 15.66 8.42 2.04 1.63 1.79 1.78

146 Appendix 4

3. Land acquisition procedures

7. Mishui Commercial Center Project: the land acquisition procedures involved: • On April 10, 2017, the PGPC issued proposed LA announcement in Getengping Village of Sanyang Township for the land use of Mishui Commercial Center Project; • On May 12, 2017, LAHDC organized a land acquisition and mobilization meeting in Getengping Village; • On June 24, 2017, PCG issued LA announcement in Getengping Village of Sanyang Township for the land use of Mishui Commercial Center Project; • On September 5, 2017, the Land Acquisition and Housing Demolition Center of Pingjiang County (Party A) and the Villagers’ committee of Getengping Village in Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2017] No. 56”; • In June 2020, confirmed the land use for the Project - the construction project of the 6th batches of towns in Pingjiang County in 2019 and the construction project of the 17th batches of towns in Pingjiang County in 2019 have been approved by People's Government of Hunan Province. The land use for Mishui Commercial Center Project is 70.15 mu, with 28.35 mu cultivated land.

8. Shoujiaping Logistic Project: the land acquisition procedures involved: • On March 2, 2019, PCG issued proposed LA announcement in Gucheng Village of Chengguan Town for the land use of Shoujiaping Logistic Project; • On March 20, 2019, LAHDC organized a land acquisition and mobilization meeting in Gucheng Village; • On April 3, 2019, PCG issued LA announcement in Gucheng Village; • On May 24, 2019, the Land Acquisition and Housing Demolition Center of Pingjiang County (Party A) and the Villagers’ committee of Gucheng Village in Chengguan Town (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2019] No. 25”; • In June 2019, confirmed the land use for the Project - the construction project of the 21st batches of towns (shantytowns transformation) in Pingjiang County in 2017 has been approved by People's Government of Hunan Province. The land use for Shoujiaping Logistic Project is 9.3 mu, with 5.76 mu cultivated land.

9. Yihuacheng Project: the land acquisition procedures involved: • On June 27, 2018, Yihua Dajiang Investment Co., Ltd. and PCG signed the “Investment and Development Contract of Yihuacheng in Pingjiang Country”; • On August 20, 2019, PCG issued proposed LA announcement in Daxi Village of Sanyang Township for the land use of Phase II of Yihuacheng Project; • On September 5, 2019, LAHDC organized a land acquisition and mobilization meeting in Daxi Village of Sanyang Township; • On October 30, 2019, PCG issued LA announcement in Daxi Village of Sanyang Township for the land use of Phase II of Yihuacheng Project; • On January 8, 2020, LAHDC (Party A) and the Villagers’ committee of Daxi Village of Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2020] No. 11”; • In June 2020, confirmed the land use for the Project - the construction project of the 17th batches of towns in Pingjiang County in 2020 has been approved by BNR in terms of preliminary review and site selection of construction land. At present, the provincial land approval procedures of the Project are being handled. The land use for Yihuacheng

147 Appendix 4

Project is 29.03 mu, with 13.74 mu cultivated land.

10. Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area: the land acquisition procedures involved: • On April 5, 2019, PCG issued proposed LA announcement in Daxi Village of Sanyang Township for the land use of Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area; • On April 25, 2019, LAHDC organized a land acquisition and mobilization meeting in Daxi Village of Sanyang Township; • On June 10, 2019, PCG issued LA announcement in Daxi Village of Sanyang Township for the land use of Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area; • On April 13, 2020, AHDC (Party A) and the Villagers’ committee of Daxi Village in Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2019] No. 25”; In June 2020, confirmed the land use for the Project - Dazhong bungalow renovation construction project in Pingjiang County, Dazhong commercial service center construction project in Pingjiang Count and Dazhong agricultural trade market construction project in Pingjiang County have been approved by People's Government of Hunan Province. The land use for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, with 26.26 mu cultivated land.

4. Resettlement Policies and Measures for APs

11. The land use for Mishui Commercial Center Project is 70.15 mu, and the land acquisition for the Project started in April 2017. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2012] No. 46), the Notice of Yueyang

148 Appendix 4

Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2013] No. 2), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of People's Government of Pingjiang County on Issuing the Implementation Measures for Employment Training and Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZF [2012] No.16). The compensation standard is: CNY 41,900 / mu for paddy field and CNY 33,520 / mu for dry land; and CNY 13,333 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 3,010,600, including CNY 2,075,300 for land compensation and CNY 935,300 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation.

12. The land use for Shoujiaping Logistic Project is 9.3 mu, and the land acquisition for the Project started in March 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 742,200, including CNY 556,200 for land compensation and CNY 186,000 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation.

13. The land use for Yihuacheng Project is 29.03 mu. The land acquisition for the Project started in August 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 2286,300, including CNY 1705,700 for land compensation and CNY 580,600 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation.

14. The land use for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, and the land acquisition for the Project started in April 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government

149 Appendix 4

of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2020] No. 2) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 2690,100, including CNY 2030,900 for land compensation and CNY 659,200 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation.

15. The compensation for APs in land acquisition of each project was made in the form of monetary compensation. The land compensation fee and resettlement subsidies have been paid to the collective economic organizations whose land has been acquired. In addition, in order to effectively protect the fundamental interests of LLFs, the local government also handled social security for 201 eligible people among the APs.

Table 3: Input and Output Analysis of Land Use in Recent Three Years (2017-2019) Output per mu Input per mu Net Chemical income Type Rice Seed Pesticide Vegetables Others Subtotal fertilizer Others Subtotal per mu income fee fee fee (CNY/mu) Paddy field 1,182 797 142 2,121 30 165 80 410 685 1,436 Dry land 1,437 221 658 20 165 70 210 465 1,193 Note: the output per mu comes from the Analysis Table of Annual Output of Cultivated Land in the Project; the input per mu comes from Calculation of Materialized Cost per mu of Cultivated Land

Table 4: Comparative Analysis of Compensation Unit Price and Replacement Price Compensation fee per mu (CNY / mu) Bank Net output interest Risk-free Surplus Land Endowment value of No. Component Land type rate (more income (CNY / compensation insurance Subtotal land than 3 (CNY/mu) mu) fee fees for LLFs (CNY/mu) years) Mishui Commercial Paddy field 41,900 13,333 55,233 2.75% 1,519 1,436 83 1 Center Project Dry land 33,520 13,333 46,853 2.75% 1,288 1,193 95 Shoujiaping Logistic Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870 2 Project Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820 Land use for Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870 3 Yihuacheng Project Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820 Logistic Project at Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870 the Plot on South 4 Side of Xianjiang Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820 River in Dazhong Resettlement Area

5. Information disclosure, participation and grievance redress mechanism

(1) Information disclosure and public participation

16. After the project initiation, the local government department posted a project announcement on the project site to commence publicity of the project; the NRB issued Proposed LA Announcement, organized and convened land acquisition mobilization meeting to enable the mass to understand project name, land acquisition scope, land acquisition time, compensation

150 Appendix 4 standard and settlement, getting support from migrant for the project.

17. During land acquisition, LAHDC publicized in batches the physical indexes of LA in different villages and groups, accepted villagers' opinions, organized review in time for any error information and published again after modification as well as accepted villagers' supervision. LAHDC, Pingjiang County urban Construction, Development and Investment Co., Ltd., the people's government of townships at all levels and person in charge of relevant units had a full communication and negotiation with the person in charge of villagers' committee of three villages as Gucheng Village, Daxi Village and Getengping Village on land acquisition area, land category, compensation standard and other matters and concluded "Agreement on Land Acquisition Compensation" respectively with the collective economic organization of villages after reaching an agreement. The villagers' committee of three villages as Gucheng Village, Daxi Village and Getengping Village discussed and negotiated with their villagers on the distribution and handling of expenses of the land acquisition compensation and production resettlement scheme of all villages, and the village groups convened representatives to have a discussion and negotiation and reached an agreement.

18. During land acquisition, women shared the same rights with men and participated in the whole land acquisition process. Most of men handled affairs or work outside at day time, and the No. of women was even more than that of men in AHHs during land acquisition, including participating in physical survey on land acquisition, discussion on resettlement scheme and coordination meeting of villages.

Land Acquisition Mobilization Meeting Resettlement Compensation Consultation Meeting

(2) Grievance redress mechanism

19. A grievance redress mechanism was established for land acquisition of the Project. In case of any complaints for land acquisition and resettlement, APs due to LA could report to the villagers' committee, and the villagers' committee (or APs) could negotiate directly with the local land acquisition and house demolition implementation agency to solve, or complain orally or in written to the superior land acquisition and resettlement implementing and management agency. Upon receipt of the complaint, the superior land acquisition and resettlement implementing agency would record and address issue jointly with the relevant villagers' committee and local land acquisition and resettlement implementing agency within a rational work cycle. In the event of conflicts and disputes that cannot be solved through negotiation, the villagers' committee could complain to the administrative organ with jurisdiction by levels following the complaint channels in accordance with the Administrative Procedure Law of the People's Republic of China; If still not satisfied with the results, the villagers' committee could initiate legal proceedings to the people's

151 Appendix 4 court or initiate legal proceedings directly to the people's court.

20. After survey, it was found APs due to LA agreed with the land acquisition procedure and compensation of the Project, and confirmation of no complaint about land acquisition was received from APs due to LA.

6. Follow-up investigation and interview

21. The land acquisition of 141.45 mu affected 3 villages as Gucheng Village, Daxi Village and Getengping Village in 2 townships as Chengguan Township and Sanyang Township of Pingjiang County, and no house demolition was involved in land acquisition of the Project. To know the recent situation of affected person, in June 2020, follow-up investigation was carried out for 290 persons from 59 households in three villages as Gucheng Village, Daxi Village and Getengping Village.

22. According to the investigation, in 3 villages as Gucheng Village, Daxi Village and Getengping Village affected by land acquisition, the total area of cultivated lands was 3,519 mu and the total population was 5,537 prior to land acquisition, including 2,466 women and 2,864 labor force (1,562 of them were engaged in secondary and tertiary industries; the per capita disposable income in the 3 villages as Gucheng Village, Daxi Village and Getengping Village was CNY 13,525, CNY 11,943 and CNY 11,435 respectively. The basic information of villages affected by land acquisition is shown in Table 5.

23. The land acquisition would affect a population of 290 from 59 households (all of them are Han ethnicity), including 119 women accounting for 41.03% of the total APs, and no vulnerable group was affected; the total area of cultivated lands in the 3 villages was 3,519mu, and the area of land acquisition for the Project was 74.11 mu with a cultivated land acquisition rate of 2.11%. The basic information of population affected by LA is shown in Table 6, and the cultivated land acquisition rate is shown in Table 7.

24. According to the investigation, the per capita annual net income of 3 villages as Gucheng Village, Daxi Village and Getengping Village was about CNY 4,955, CNY 4,867 and CNY 3,768 prior to land acquisition. While after the land acquisition, the per capita annual net income of Gucheng Village and Getengping Village was about CNY 5,158 and CNY 4,226 respectively in 2019, increased respectively for about CNY 203 and CNY 458 in comparison with that prior to the land acquisition. The change in annual net income of Daxi Village after the land acquisition will be further monitored subsequently to pay attention to their livelihood and income recovery condition. The annual net income of APs prior to land acquisition is shown in Table 8; the annual net income of APs after land acquisition is shown in Table 9.

152 Appendix 4

Interview with AHHs

Table 5: Basic Information of Villages Affected prior to LA Gucheng Daxi Getengping Content Agency Village Village Village Cultivated land area mu 276 2,236 1,007 Total population Person 574 2,863 2,100 Female Person 382 1,202 882 Labor Person 229 1,270 1,365 Including: No. of persons engaged in secondary and Person 50 877 635 tertiary industries Annual production value of cultivated lands CNY/year 2,120 2,120 2,120 Per capita disposable income of farmers CNY/year 13,525 11,943 11,435

Table 6: Basic Information of APs due to LA Vulnerable No. of AHHs No. of APs No. of female APs No. of APs in Han Village groups (household) (person) (person) ethnicity (person) (person) Gucheng 4 19 7 19 0 Daxi 27 129 52 129 0 Getengping 28 142 60 142 0 Total 59 290 119 290 0

153 Appendix 4

Table 7: Compensation Rate Cultivated Land Acquisition Village Cultivated land area (mu) Area of cultivated land acquisition (mu) Land loss rate (%) Gucheng 276 5.76 2.09% Daxi 2,236 40 1.79% Getengping 1,007 28.35 2.82%

Table 8: Annual Net Income of APs prior to LA (Unit: CNY /person) Total Planting Operating Work Other Total Production Living Other Net Village Year income income income income income expenditure expenditure expenditure expenditures income Gucheng 2018 12,589 92 3,125 8,426 946 7,634 1,733 4,325 1,576 4,955 Daxi 2019 11,943 84 2,876 8,118 865 7,076 1,718 3,927 1,431 4,867 Getengping 2016 10,473 79 2,456 7,124 814 6,705 1,581 3,725 1,399 3,768

Table 9: Annual Net Income of APs after LA (Unit: CNY /person) Total Planting Operating Work Other Total Production Living Other Net Village Year income income income income income expenditure expenditure expenditure expenditures income Gucheng 2019 13,525 99 3,357 9,052 1,017 8,367 1,974 4,647 1,746 5,158 Getengping 2019 11,435 86 2,682 7,778 889 7,209 1,726 3,955 1,528 4,226

7. Conclusions and Corrective Action Plan

Conclusions

1) All lands used for the Mishui Commercial Center Project, Shoujiaping Logistic Project, Yihuacheng Project and the Logistic project at the plot on south side of Xianjiang River in Dazhong Resettlement Area have undergone the land acquisition process within the land scope for ADB-financed Hunan Miluo River Disaster Risk Management and Comprehensive Environmental Improvement Project. 2) In light of the land acquisition for the Project, an agreement for land acquisition compensation has been concluded with the rural collective economic organizations, with relevant land acquisition procedures fulfilled. The related information was publicized and the public engaged in land acquisition were participated. The APs agreed with the land acquisition procedure and compensation, and did not have any complaint about land acquisition. 3) The Project is located around cities and townships where the farmers' major income is from off-farm work. The acquisition rate of cultivated lands was small, and the land acquisition exerted minor impact on household income. 4) The local government is implementing the endowment insurance measures for eligable LLFs.

Corrective Action Plan (to be completed before the RP update) Problem Corrective Action Plan PIUs Budget Deadline The state-owned Speed up the disposal of the PMO and related N/A By end of land use certificate state-owned land use township 2020 lagged behind certificate government Endowment Speed up the disposal of PMO and related N/A By end of insurance for land endowment insurance township 2020 loss farmers process government lagged behind AP’s livelihood and Organize appropriate PMO and related CNY 50,000, will By end of income restoration trainings on employability township be included in 2020 issue has not been skills and take certain government

154 Appendix 4 paid attention supporting measures for APs the project adequately to help them in employment, contingencies income generation, livelihood and income recovery The APs affected by LA PMO Included into the Whole conducted will be included resettlement project into the monitoring scope of monitoring cost process the project

155 Appendix 4

Land acquisition approval

156 Appendix 4

Land acquisition notice

157 Appendix 4

Land acquisition agreement

158 Appendix 5

Appendix 5: Due Diligence on the Existing Facilities

1. According to the recommendation of ADB's mid-term review mission in June 2020, resettlement due diligence was conducted for existing/associated facilities. Based on the assessment by the TrTA environmental team, the identified existing facilities include (i) 24 sewage treatment facilities in towns of Pingjiang County, (ii) Pingjiang County Domestic Waste Sanitary Landfill, (iii) Yueyang Municipal Hazardous Waste Disposal LTD, (iv) Huangjindong Reservoir and (v) Dajiangdong Reservoir. This project does not involve any associated facilities.

1. Purpose

2. The purpose of the due diligence is to: • check and ensure the land acquisition and resettlement for the construction of existing facilities conform to the laws and regulations of Pingjiang County, Yueyang City, Hunan Province and PRC; • review the resettlement process, resettlement cost management, income recovery and satisfaction of APs; • ensure participation of the APs including females and their rights are protected during land acquisition; • check the situation of vulnerable groups and supporting policies; public participation and information disclosure; and • investigate if any problem is remained during LA and HD and put forward feasible suggestions.

2. Methods

3. The information adopted in this due diligence mainly comes from:

(i) Literature-based survey

4. The preparation personnel of the report collected and sorted out relevant information and survey data of the construction agency of existing facilities and local governments at all levels. Including approval documents of associated facility, land use-right certificate, land acquisition policies, agreements, compensation records, resettlement supporting measures, public participation information such as resettlement and land acquisition announcements.

(ii) Field visit

5. The staff conducted visits to relevant townships and villages, affected residents and constructors, and collected further information through direct communication with stakeholders.

(iii) Sampling survey

6. The staff conducted a questionnaire survey on the APs.

3. DDR for Sewage Treatment Plants and Landfill Plants

3.1. Overview of Project Construction

159 Appendix 5

7. The 24 sewage treatment plants are distributed in 22 towns of Pingjiang County, and with a total area of 190.99 mu, and total treatment capacity of 20,950 tons/day to serve a population of 262,600. Among them, Changshou Township Sewage Treatment Plant, Anding Township Sewage Treatment Plant, Nanjiang Township Sewage Treatment Plant, Fushoushan Sewage Treatment Plant and Meixian Township Sewage Treatment Plant have been completed, and the remaining 19 projects are still under construction.

8. The Pingjiang County Domestic Waste Sanitary Landfill, located in Taxing Village, Wengjiang Township, covers a floor area of 132.8 mu and has a treatment capacity of 230 tons/day. It was completed in 2011 and is used for the treatment of domestic waste in Pingjiang County.

9. Table 1 summarizes the basic information of the above 25 existing facilities. Below are pictures of some project sites.

Changshou Township Sewage Treatment Plant Fushoushan Township Sewage Treatment Plant (constructed) (constructed)

Meixian Township Sewage Treatment Plant Anding Township Sewage Treatment Plant (constructed) (constructed)

160 Appendix 5

Longmen Township Sewage Treatment Plant Xiasha Market Town Sewage Treatment Plant in (under construction) Sanshi Township (under construction)

Mujin Township Sewage Treatment Plant (under Jiayi Market Town Sewage Treatment Plant construction) (under construction)

Xianzhong Market Town Sewage Treatment Plant in Sanshi Township Sewage Treatment Plant Jiayi Township (under construction) (under construction)

161 Appendix 5

Pingjiang County Domestic Waste Sanitary Landfill (constructed)

162 Appendix 5 Table 1: Basic Information of Existing Facilities Treatment Service Construction Completion No. Name Township Starting time capacity Service area population status time (ton/day) (person) Changshou Township Sewage Changshou 1 September 2013 April 2014 3000 Changshou Market Town 50,000 Treatment Plant Township

Constructed Anding Township Sewage Anding September 2 January 2015 2500 Anding Township 23,000 Treatment Plant Township 2016 Nanjiang Township Sewage Nanjiang December 3 January 2015 3000 Nanjiang Market Town 40,000 Treatment Plant Township 2016 Fushoushan Sewage 4 Fushoushan January 2018 January 2019 300 Fushoushan Township 2,000 Treatment Plant Meixian Township Sewage Meixian 5 July 2019 June 2020 1000 Meixian Market Town 12,000 Treatment Plant Township Wushi Township Sewage Wushi December 6 January 2019 2000 Market Town of Wushi Township 20,000 Treatment Plant Township 2020 Sandun Township Sewage Sandun November Daishi Market Town, Zhongwu Village 7 November 2019 300 4,600 Treatment Plant Township 2020 and Zhonglong Village Centralized Sewage Hongqiao December 8 Treatment Project in Hongqiao March 2020 600 Market Town of Hongqiao Township 12,000 Township 2020 Township Sewage Treatment Station in Shiniuzhai December Daping Village and Guilin Village in 9 Daping Market Town of June 2020 300 2,840 Township 2020 Shiniuzhai Township Shiniuzhai Township Construction of Sewage Tongshi Township (Residents’ Tongshi December

Under construction Under 10 Treatment Plant Project in June 2020 500 Committee, Bangshang Village, 8,600 Township 2020 Tongshi Township Paixing Village, Yizi Village) Wukou Township Sewage Wukou December Wukou Market Town (Residents’ 11 June 2020 800 6,930 Treatment Plant Township 2020 Committee, Wukou Village) Wengjiang Township Sewage Wengjiang September 12 June 2020 500 Shuikouzui Central Market Town 6,000 Treatment Plant Township 2020 Mujin Township Sewage Mujin December 13 June 2020 300 Mugua Market Town 3,216 Treatment Plant Township 2020

Banjiang Township Sewage Banjiang December 14 June 2020 300 Banjiang Village, Qianshi Village 6,000 Treatment Plant Township 2020 Jiayi Market Town Sewage Jiayi December 15 Treatment Plant in Jiayi June 2020 1000 Jiayi Market Town 8,200 Township 2020 Township Xianzhong Market Town Jiayi September 16 Sewage Treatment Plant in June 2020 800 Jiayi Market Town 7,000 Township 2020 Jiayi Township Dazhou Township Sewage Dazhou December 17 June 2020 200 Dazhou Market Town 2,200 Treatment Plant Township 2020 Shangtashi Township Sewage Shangtashi September 18 June 2020 400 Market Town of Shangtashi Township 6,000 Treatment Plant Township 2020

163 Appendix 5 Treatment Service Construction Completion No. Name Township Starting time capacity Service area population status time (ton/day) (person) Yuping Township Sewage Yuping September 19 June 2020 300 Yuping Market Town 10,000 Treatment Plant Township 2020 Sanshi Township Sewage Sanshi September 20 June 2020 500 Sanshi Market Town 8,000 Treatment Plant Township 2020 Xiasha Market Town Sewage Sanshi September 21 Treatment Plant in Sanshi June 2020 350 Xiasha Market Town 5,000 Township 2020 Township Xiangjia Township Sewage Xiangjia December 22 June 2020 600 Market Town of Xiangjia Township 7,000 Treatment Plant Township 2020 Cenchuan Township Sewage Cenchuan December 23 June 2020 400 Market town range 4,000 Treatment Plant Township 2020 Longmen Township Sewage Longmen September Sanshidu Market Town, Longmen 24 June 2020 1000 8,000 Treatment Plant Township 2020 Township Pingjiang County Domestic Wengjiang Constructed 25 2010 2011 230 Pingjiang County 1.1 million Waste Sanitary Landfill Township

164 Appendix 5

3.2. Land Acquisition and Resettlement Impact

Land impact

10. A total of 190.99 mu collective land was acquired to build the 24 sewage treatment facilities, including 155.7 mu of cultivated land, 11.2 mu of garden land and 24.09 mu of forest land, affecting 103 households with 394 persons (including 155 females) in 25 villages of 22 townships (residents' committees).

11. A total of 132.83 mu land was acquired to build the Pingjiang County Domestic Waste Sanitary Landfill, including 41.88 mu of cultivated land and the rest are state-owned land. It affected 20 households with 118 persons, including 57 females, in 1 village of 1 township.

Table 2: Land Acquisition of Existing Facilities Paddy Dry Garden Forest Unused Township Village Total field land land land land Total 323.82 99.79 97.79 11.2 24.09 90.95 Changshou Township Zhifu Village 20.03 6 10.03 4 Anding Township Anyong Village 10.5 4.1 6.4 Nanjiang Township Gaonan Village 16.8 16.8 Fushoushan Dahe Village 2 2 Meixian Township Maoniling 9 9 Wugongshi Residents’ Wushi Township 14.1 14.1 Committee Sandun Township Daishi Village 7.2 7.2 Hongqiao Township 4.97 Jinji Village 2 Xiangyang Village 2.97 Shiniuzhai Township Daping Village 4.9 4.9 Tongshi Township Yizi Village 14.7 14.7 Wukou Township Wukou Village 5.44 5.44 Wengjiang Township Xinjian Village 7.2 7.2 Mujin Township Mugua Village 3.84 3.84 Banjiang Township Qianshi Village 3.95 3.95 Jiayi Township Jiayi Community 4.67 4.67 Jiayi Township Xianzhong Community 4.68 4.68 Dazhou Township Anquan Village 3.35 3.35 Hongxia Residents’ Shangtashi Township 8.5 8.5 Committee Yuping Township Yuping Community 6.99 6.99 Sanshi Township Feitian Village 4.63 4.63 Sanshi Township Xiasha Village 5.03 5.03 South Street Residents’ Xiangjia Township 6.91 3 3.91 Committee Cenchuan Township Xinsha Village 5.6 5.6 Longmen Township Sanshidu Village 16 3 13 Wengjiang Township Taxing Village 132.83 41.88 90.95

Table 3: Information of APs due to LA for Existing Facilities No. of No. of Applied for people households No. Name AHHs APs Female endowment applied for signed the insurance? endowment Agreement insurance Changshou Township Sewage 1 8 28 10 8 No 0 Treatment Plant

165 Appendix 5

No. of No. of Applied for people households No. Name AHHs APs Female endowment applied for signed the insurance? endowment Agreement insurance Anding Township Sewage 2 5 19 9 5 Yes 19 Treatment Plant Nanjiang Township Sewage 3 10 36 16 10 In progress 10 Treatment Plant Fushoushan Sewage Treatment 4 2 7 3 2 Yes 7 Plant Meixian Township Sewage 5 4 18 7 4 Yes 18 Treatment Plant Wushi Township Sewage 6 7 28 10 7 No 0 Treatment Plant Sandun Township Sewage 7 4 15 4 4 No 0 Treatment Plant Centralized Sewage Treatment 8 4 12 5 4 No 0 Project in Hongqiao Township Sewage Treatment Station in 9 Daping Market Town of 3 11 5 3 In progress 0 Shiniuzhai Township Construction of Sewage 10 Treatment Plant Project in 8 30 10 8 Yes 30 Tongshi Township Wukou Township Sewage 11 3 12 3 3 In progress 0 Treatment Plant Wengjiang Township Sewage 12 4 16 6 4 No 0 Treatment Plant Mujin Township Sewage 13 2 7 3 2 In progress 0 Treatment Plant Banjiang Township Sewage 14 1 6 2 1 Yes 6 Treatment Plant Jiayi Market Town Sewage 15 3 11 4 3 In progress 0 Treatment Plant in Jiayi Township Xianzhong Market Town Sewage 16 3 10 5 3 In progress 0 Treatment Plant in Jiayi Township Dazhou Township Sewage 17 2 7 3 2 In progress 0 Treatment Plant Shangtashi Township Sewage 18 4 18 8 4 Yes 18 Treatment Plant Yuping Township Sewage 19 4 15 7 4 No 0 Treatment Plant Sanshi Township Sewage 20 3 11 4 3 No 0 Treatment Plant Xiasha Market Town Sewage 21 Treatment Plant in Sanshi 3 12 4 3 Yes 10 Township Xiangjia Township Sewage 22 3 16 6 3 No 0 Treatment Plant Cenchuan Township Sewage 23 8 35 13 8 No 0 Treatment Plant Longmen Township Sewage 24 5 14 8 5 No 0 Treatment Plant Pingjiang County Domestic 25 20 118 57 20 Yes 118 Waste Sanitary Landfill Total 123 512 212 123 236 AHHs = affected households, APs = affected persons.

166 Appendix 5

Impact of house demolition

12. No house was demolished on the land acquired by 24 sewage treatment plants. Pingjiang County Domestic Waste Sanitary Landfill was completed in 2011, and no house was demolished within that project area. However, considering the adverse impact of the landfill on residents' lives, 20 households within 500 m from the landfill were demolished in 2014, with a total demolition area of 3,608.346 m2, involving 20 households with 118 people in Taxing Village, Wengjiang Town, Pingjiang County, including 57 women.

3.3. Land Acquisition Process

13. Since the construction period of these 24 sewage treatment plants and the landfill of Pingjiang County is different (2010 ~ 2020), the land acquisition time is different accordingly. The following activities were conducted: • Mobilization meetings were held for land acquisition of all projects; • Information was publicized; • Communication and consultation were conducted on the project construction, compensation standards with affected people; • Announcements on land acquisition and compensation were issued; and • Compensation agreements were signed, and compensation funds were paid on time.

Table 4: Land Acquisition Process of the Project Time of the project Time of issuing No. Name Implementation time construction the LA mobilization meeting announcement Changshou Town Sewage 1 May 2013 June 2013 July 2013 Treatment Plant Anding Town Sewage Treatment 2 November 2014 November 2014 January 2015 Plant Nanjiang Town Sewage 3 November 2014 January 2015 February 2015 Treatment Plant Fushoushan Sewage Treatment 4 November 2016 December 2016 January 2017 Plant Meixian Town Sewage 5 April 2019 May 2019 May 2019 Treatment Plant Wushi Town Sewage Treatment 6 March 2018 May 2018 June 2018 Plant Sandun Town Sewage 7 September 2019 October 2019 December 2019 Treatment Plant Centralized Sewage Treatment 8 December 2019 January 2020 December 2018 Project in Hongqiao Town Sewage Treatment Station in 9 Daping Market Town of November 2019 November 2020 December 2019 Shiniuzhai Town Construction of Sewage 10 Treatment Plant Project in November 2019 November 2019 December 2019 Tongshi Town Wukou Town Sewage Treatment 11 October 2019 November 2019 December 2019 Plant Wengjiang Town Sewage 12 June 2019 July 2019 August 2019 Treatment Plant Mujinshan Town Sewage 13 July 2019 August 2019 September 2019 Treatment Plant Banjiang Town Sewage 14 November 2019 November 2019 December 2019 Treatment Plant

167 Appendix 5

Time of the project Time of issuing No. Name Implementation time construction the LA mobilization meeting announcement Jiayi Market Town Sewage 15 November 2019 November 2019 December 2019 Treatment Plant in Jiayi Town Xianzhong Market Town Sewage 16 November 2019 November 2019 December 2019 Treatment Plant in Jiayi Town Dazhou Town Sewage 17 December 2019 January 2020 March 2020 Treatment Plant Shangtashi Town Sewage 18 November 2019 November 2019 December 2019 Treatment Plant Yuping Town Sewage Treatment 19 September 2019 October 2019 November 2019 Plant Sanshi Town Sewage Treatment 20 December 2019 January 2020 March 2020 Plant Xiasha Market Town Sewage 21 March 2011 March 2011 April 2011 Treatment Plant in Sanshi Town Xiangjia Town Sewage 22 September 2019 October 2019 November 2019 Treatment Plant Cenchuan Town Sewage 23 July 2019 August 2019 September 2019 Treatment Plant Longmen Town Sewage 24 January 2019 January 2019 March 2019 Treatment Plant Pingjiang County Domestic 25 2010 2010 2011 Waste Sanitary Landfill

14. However, the land use procedures of some project components lagged behind. The Table 4 summarizes land certificates status of these 25 facilities.

Table 4: Land Use Certificates Status Handling of Construction Land area No. Name of facilities Township land status (mu) certificates

Constructed Changshou Not 1 Changshou Town Sewage Treatment Plant 18.9 Town acquired 2 Anding Town Sewage Treatment Plant Anding Town 10.5 Acquired 3 Nanjiang Town Sewage Treatment Plant Nanjiang Town 16.86 Acquired 4 Fushoushan Sewage Treatment Plant Fushoushan 2 In progress 5 Meixian Town Sewage Treatment Plant Meixian Town 9 Acquired 6 Wushi Town Sewage Treatment Plant Wushi Town 10.55 In progress 7 Sandun Town Sewage Treatment Plant Sandun Town 2.63 In progress Certificate for project Centralized Sewage Treatment Project in Hongqiao construction 8 Hongqiao Town 5 Town land has been acquired Under construction Under Sewage Treatment Station in Daping Market Town of Shiniuzhai Not 9 1.87 Shiniuzhai Town Town acquired Construction of Sewage Treatment Plant Project in 10 Tongshi Town 4.87 In progress Tongshi Town 11 Wukou Town Sewage Treatment Plant Wukou Town 4.9 In progress Wengjiang Not 12 Wengjiang Town Sewage Treatment Plant 7.2 Town acquired

13 Mujinshan Town Sewage Treatment Plant Mujin Town 3.84 In progress 14 Banjiang Town Sewage Treatment Plant Banjiang Town 3.95 In progress Jiayi Market Town Sewage Treatment Plant in Jiayi 15 Jiayi Town 4.67 In progress Town Xianzhong Market Town Sewage Treatment Plant in 16 Jiayi Town 4.68 In progress Jiayi Town 17 Dazhou Town Sewage Treatment Plant Dazhou Town 3.35 In progress Shangtashi 18 Sewage Treatment Station of Shangtashi Town 8.5 Acquired Town

168 Appendix 5

Handling of Construction Land area No. Name of facilities Township land status (mu) certificates Not 19 Yuping Town Sewage Treatment Plant Yuping Town 6.99 acquired Not 20 Sanshi Town Sewage Treatment Plant Sanshi Town 3.68 acquired Xiasha Market Town Sewage Treatment Plant in Not 21 Sanshi Town 2.6 Sanshi Town acquired 22 Xiangjia Town Sewage Treatment Plant Xiangjia Town 6.91 In progress Cenchuan 23 Cenchuan Town Sewage Treatment Plant 3.37 In progress Town 24 Longmen Town Sewage Treatment Plant Longmen Town 3.39 In progress Wengjiang Constructed 25 Pingjiang County Domestic Waste Sanitary Landfill 132.83 Acquired Town

169 Appendix 5

3.4. Compensation and Resettlement for LA

Land compensation standard

15. Due to the different construction time, the land compensation standards and basis adopted for the above-mentioned 25 facilities are different, as shown in Table 6.

Table 6: Compensation Standard for LA Applicable standard (CNY/mu) Acquisition Content Policy basis time Paddy Forest Dry land field land XZF [2009] 2011 Pingjiang County Domestic Waste Sanitary Landfill 23,843 16,690 No. 43 Changshou Town Sewage Treatment Plant, Anding Town XZF [2012] 2013-2017 Sewage Treatment Plant, Nanjiang Town Sewage Treatment 41,900 33,520 No. 46 Plant and Fushoushan Town Sewage Treatment Plant

XZF [2018] 2018-2020 Other 20 sewage treatment plants 53,200 47,400 37,920 No. 5

16. It is observed that land compensation standards of relevant facilities in Item “2018-2020” are consistent with those of ADB-financed project facilities. According to the analysis of compensation unit price and replacement price in Section 4.5 of RP, the compensation standards can meet the requirements of replacement price.

Progress of compensation and resettlement for LA

(1) Compensation mode

17. The monetary compensation and endowment insurance are combined for land acquisition of all these facilities.

(2) Progress of compensation payment

18. Based on the investigation, it was confirmed that land compensation agreements have been signed for all 25 facilities. The land acquisition has been completed, and all compensation expenses have been paid in place for sewage treatment plants of 21 towns and Pingjiang landfill. Most of land acquisition has been completed for sewage treatment plants of three towns, namely Wengjiang Town, Yuping Town and Sanshi Town. Table 7 summarizes the progress of land acquisition compensation under each facility.

170 Appendix 5 Table 7: Progress of Land Acquisition and Compensation for 25 existing facilities No. of Total Paid Land Area of land Villages households Construction Type of land to be compensation expenses Completion No. Name of facilities acquisition acquisition affected by Affected groups AHHs signed the status acquired for LA (CNY (CNY progress time (mu) LA Agreement 10,000) 10,000) (household) Changshou Town Dayuan Group 1 Sewage 2013.3 20.03 Dryland and paddy field Zhifu Village and Qiaobei 8 8 67.7 67.7 100% Treatment Plant Group Anding Town Anyong 2 Sewage 2014.1 10.5 Dryland and paddy field Zhongwu Group 5 5 45 45 100% Constructed Village Treatment Plant Nanjiang Town Gaonan 3 Sewage 2015 16.8 Dryland and paddy field Group 3 10 10 80 80 100% Village Treatment Plant

Fushoushan Villagers' 4 Sewage 2017.1 2 Paddy field Dahe Village Committee of 2 2 7.46 7.46 100% Treatment Plant Dahe Village Meixian Town 5 Sewage 2019.5 9 Paddy field Maoniling Group 1 4 4 47 47 100% Treatment Plant Wushi Town Wugongshi 6 Sewage 2018.6 14.1 Dryland Residents’ Group 12 7 7 60 60 100% Treatment Plant Committee Sandun Town 7 Sewage 2019.12 7.2 Paddy field Daishi Village Huamen Group 4 4 45 45 100% Treatment Plant Centralized Jinji Village sewage and 8 treatment project 2019 4.97 Paddy field and dryland Group 3 4 4 20 20 100% Xiangyang in Hongqiao Village

Underconstruction Town Sewage Treatment Daping 9 Station in Daping 2019.12 4.9 Paddy field Changle Group 3 3 34.072 34.072 100% Village Market Town of Shiniuzhai Town Zadou Group, Sewage Sizhou Group 10 treatment plant in 2019.12.6 14.7 Forest land Yizi Village 8 8 56.0078 56.0078 100% and Duandshang Tongshi Town Group Wukou Town Wukou 11 Sewage 2019.12.3 5.44 Forest land Group 8, 9, 10 3 3 31.99 31.99 100% Village Treatment Plant Wengjiang Town Xinjian 12 Sewage 2019.8 7.2 Garden land Jiupu Group 4 4 81 50 61.73% Village Treatment Plant Mujin Town Mugua 13 Sewage 2019.9.25 3.84 Dryland Xinwu Group 2 2 22.272 22.272 100% Village Treatment Plant

171 Appendix 5 No. of Total Paid Land Area of land Villages households Construction Type of land to be compensation expenses Completion No. Name of facilities acquisition acquisition affected by Affected groups AHHs signed the status acquired for LA (CNY (CNY progress time (mu) LA Agreement 10,000) 10,000) (household) Banjiang Town Qianshi 14 Sewage 2019.12.17 3.95 Forest land Lihua Group 1 1 17.185 17.185 100% Village Treatment Plant Jiayi Market Town Sewage Jiayi Shanshang 15 2019.12.6 4.67 Paddy field and dryland 3 3 26.152 26.152 100% Treatment Plant Community Group in Jiayi Town Xianzhong Market Town Xianzhong 16 Sewage 2019.12.6 4.68 Paddy field and dryland Tiannan Group 3 3 26.263 26.263 100% Community Treatment Plant in Jiayi Town Dazhou Town Anquan 17 Sewage 2020.03.26 3.35 Dryland Wangyi Group 2 2 14.522 14.522 100% Village Treatment Plant Shangtashi Town Hongxia Shuikou, Duanli, 18 Sewage 2019.12 8.5 Paddy field and dryland Residents’ Hanshang and 4 4 49 49 100% Treatment Plant Committee Zuishang Yuping Town Yuping 19 Sewage 2019.11 6.99 Paddy field Tang’ao Group 4 4 52 43 82.69% Community Treatment Plant Sanshi Town Feitian Qiujia Group and 20 Sewage 2020.3.10 4.63 Dry land 3 3 22.7542 18.1542 79.78% Village Zhuduan Group Treatment Plant Xiasha Market Town Sewage Xiasha 21 2011.4.28 5.03 Paddy field Qiaodong Group 3 3 14.9894 14.9894 100% Treatment Plant Village in Sanshi Town Group 5 of Xiangjia Town South Street Original South 22 Sewage 2019 6.91 Paddy field, dry land Residents’ 3 3 30.3739 30.3739 100% Street Residents’ Treatment Plant Committee Committee Cenchuan Town Xinsha 23 Sewage 2019.9.9 5.6 Paddy field Zhongwu Group 8 8 31.808 31.808 100% Village Treatment Plant Longmen Town Sanshidu Tianyuanwan 24 Sewage 2019.3 16 Paddy field and dryland 5 5 67 67 100% Village Group Treatment Plant Pingjiang County Constructed 25 Domestic Waste 2011 132.83 Dryland and forest land Taxing Village Shuidui Group 19 19 305.509 305.509 100% Sanitary Landfill

172 Appendix 5

(3) Handling of endowment insurance

19. There are 435 eligible endowment insurance persons in the Project. At present, endowment insurances have been provided for 194 people in 7 facilities, while another 7 facilities are being handled and 11 facilities have not yet started. Table 8 summarizes the status of endowment insurance under each facility.

Table 8: Status of Endowment Insurance Processing No. of people Endowment Whether applied applied for No. Name of facilities AHHs APs (person) insurance for endowment endowment object (person) insurance insurance (person) 1 Changshou Town Sewage Treatment Plant 8 28 24 No 2 Anding Town Sewage Treatment Plant 5 19 16 applied 16 3 Nanjiang Town Sewage Treatment Plant 10 36 31 applied 31 4 Fushoushan Sewage Treatment Plant 2 7 6 applied 6 5 Meixian Town Sewage Treatment Plant 4 18 15 applied 15 6 Wushi Town Sewage Treatment Plant 7 28 24 No 7 Sandun Town Sewage Treatment Plant 4 15 13 No Centralized Sewage Treatment Project in 8 4 12 10 No Hongqiao Town, Pingjiang County Sewage Treatment Station in Daping Market 9 3 11 9 In progress Town of Shiniuzhai Town Construction of Sewage Treatment Plant 10 8 30 26 In progress Project in Tongshi Town 11 Wukou Town Sewage Treatment Plant 3 12 10 In progress 12 Wengjiang Town Sewage Treatment Plant 4 16 14 No 13 Mujinshan Town Sewage Treatment Plant 2 7 6 In progress 14 Banjiang Town Sewage Treatment Plant 1 6 5 In progress Jiayi Market Town Sewage Treatment Plant in 15 3 11 9 In progress Jiayi Town Xianzhong Market Town Sewage Treatment 16 3 10 9 In progress Plant in Jiayi Market Town 17 Dazhou Town Sewage Treatment Plant 2 7 6 18 Shangtashi Town Sewage Treatment Plant 4 18 15 applied 15 19 Wuping Town Sewage Treatment Plant 4 15 13 No 20 Sanshi Town Sewage Treatment Plant 3 11 9 No Xiasha Market Town Sewage Treatment Plant 21 3 12 10 applied 10 in Sanshi Town 22 Xiangjia Town Sewage Treatment Plant 3 16 14 No 23 Cenchuan Town Sewage Treatment Plant 8 35 30 No 24 Longmen Town Sewage Treatment Plant 5 14 12 No Pingjiang County Domestic Waste Sanitary 25 19 118 100 applied 100 Landfill Total 122 512 435 194

3.5. AP training

20. Pingjiang County attaches great importance to the training of affected farmers. All projects would provide targeted employment support training for the APs. At present, 8 times skills trainings had been conducted in the affected villages and towns. Among the APs, 112 people participated in the training, including 45 female farmers. Table 9 shows the employment training of some land loss farmers.

173 Appendix 5

Table 9: Production Skills Training of APs No. of participants Female No. Time Place Subject Organizer affected by the Project (person) (person) Zhifu Village, 1 2013.1 Skill training Project Headquarters 14 4 Changshou Town 2 2014.5 Anding Town Skill training Project Headquarters 11 2 Workshop skill Government of 3 2016.10 Nanjiang Town 13 13 training for female Nanjiang Town 4 2018.8 Wushi Town Skill training Project Headquarters 14 5 2019.5 Water Company Skill training Project Headquarters 32 7 Housekeeping People's Government 6 2019.11 Meixian Town 12 12 training of Meixian Town 7 2020.5 Dazhou Town Skill training Project Headquarters 6 2 8 2020.5 Xiangjia Town Skill training Project Headquarters 10 5 Total 112 45

Skills training for Villagers of Dazhou Town Skills training for landless villagers of Xiangjia Sewage Treatment Plant Town

Workshop practice training for affected women Meixian Town conducts housekeeping training for organized by Nanjiang Town affected women

174 Appendix 5 3.6. Compensation and resettlement for house demolition and relocation

Compensation standard

21. Only 1 of the 25 facilities involved house demolition. The construction of Pingjiang County Waste Sanitary Landfill started in 2010 and was completed in 2011. In 2014, the houses within 500 m around the landfill were demolished. The compensation was made according to the Compensation Measures for House Demolition on Collective Land in Yueyang City (YZF [2009] No.16).

Table 10: Compensation Standard for House Demolition and Relocation Compensation standard Compensation category Grade Remarks (CNY/m2) Main structure 580 - Brick-concrete Decoration 300 - Rural Main Main structure 490 - House Brick-wood house house Decoration 180 - Civil Main structure 320 - engineering Decoration 130 -

Resettlement mode

22. The resettlement mode of 19 relocated households was centralized resettlement, self- demolition and self-construction. The compensation for house demolition and relocation was CNY 2,970,800, which had been fully paid by the end of 2014, and all the APs have built new houses and moved in.

Current residences of 19 relocated households that moved from domestic waste sanitary landfill (photos taken in July 2020)

3.7. Information Disclosure and Participation Mechanism

(1) Mobilization meeting

23. Before the implementation of land acquisition and house demolition of all facilities, a mobilization meeting was organized by the relevant village and group leaders and all APs to discuss the arrangement of land acquisition and house demolition. During the meeting, the project situation, scope of impact, possible economic losses suffered by APs and corresponding compensation standards were explained.

175 Appendix 5

Mobilization Meeting for Land Acquisition of Mobilization Meeting for Land Acquisition of Jiayi Longmen Town Sewage Treatment Plant Project Market Town Sewage Treatment Plant Project

Mobilization Meeting for Land Acquisition of Mobilization Meeting for Land Acquisition of Xianzhong Market Town Sewage Treatment Plant Tongshi Town Sewage Treatment Plant Project Project

(2) Announcement of land acquisition and house demolition

24. All projects have issued the land acquisition announcement (Box) before land acquisition.

Box:

Announcement of the People's Government of Pingjiang County on Land Acquisition for Construction Project of Sewage Treatment Plant (Station) and Supporting Pipe Network in Sanshi Town of Pingjiang County

PZNTZ [2020] No. 36

According to the Land Administration Law of the PRC and relevant laws and regulations, the matters concerning the proposed land acquisition are hereby notified as follows:

I. Scope of Land Acquisition: part of the collective land in Feitian Village, Sanshi Town, Pingjiang County; please refer to the boundary survey map for the specific location.

II. Purpose of Land Acquisition: the land to be acquired conforms to the overall land utilization planning and will be used for public facilities; the land is to be used for the construction of sewage treatment plant in Sanshi Town.

176 Appendix 5 III. Compensation Standards and Endowment insurance:

1. Standards of land compensation fee and resettlement subsidy: follow the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5) and the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8);

2. Compensation standards for young crops, agricultural auxiliary facilities and ground attachments: follow the Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Compensation and Resettlement of Collective Land Acquisition and House Demolition and Relocation in Pingjiang County (PZBF [2020] No. 2);

3. The endowment insurance for LLFs will be provided according to the Notice of PGPC on Issuing the Measures for Implementing the Endowment insurance for LLFs in Pingjiang County (PZBF [2018] No. 26).

IV. Work Schedule:

1. From June 20, 2020 to June 30, 2020, the people's government of the county organized relevant departments to investigate the current situation of land acquisition and assess the risk of social stability, and asked the rural collective economic organizations and relevant farmers to cooperate with the investigation and confirmation;

2. The people's government of the county shall organize relevant departments to prepare the compensation and land acquisition plan according to the results of land survey, and make a public announcement on land acquisition and compensation plan within the scope of the township, village and group where the land is to be acquired.

V. Other Matters:

1. From the date of announcement, it is not allowed to plant young crops and ground attachments within the scope of proposed land acquisition; otherwise, no compensation will be given for land acquisition;

2. If the relevant right holders have any objection to compensation standards, they can submit a written application for hearing to the people's government of the county within 5 working days from the date of informing the proposed land acquisition; if the application is not submitted within the time limit, it will be deemed as giving up the hearing.

(3) Consultation on compensation and resettlement

All projects have carried out policy publicity and consultation on compensation and resettlement with the affected households.

177 Appendix 5

South Street Land Acquisition Consultation Meeting

Land Acquisition Consultation Meeting on Xiangjia Land Acquisition Consultation Meeting on Wukou Town Sewage Treatment Plant Town Sewage Treatment Plant

Land Acquisition Consultation Meeting on Longmen Land Acquisition Consultation Meeting on Wengjiang Town Sewage Treatment Plant Town Sewage Treatment Plant

3.8. Investigation and Interview

25. In order to objectively evaluate the implementation of land acquisition and house demolition in 25 facilities and the living conditions of the APs, the staff conducted an investigation and interview on the affected villages/groups and residents from June to July 2020.

Selection of sample households

26. Among the 25 facilities, 7 facilities were implemented from 2011 to 2018 and 18 facilities were implemented after 2019. In order to make a comparative analysis on the income of the APs before and after land acquisition, the staff visited four villages and groups affected before 2019, namely Dayuan Group of Zhifu Village in Changshou Town, Shuidui Group of Taxing Village in Wengjiang Town, Group 12 of Wugongshi Neighborhood Committee in Wushi Town, Zhongwu Group of Anyong Village in Anding Town, totaling 19 affected households, including 5 households affected by house demolition. The villages visited accounted for 15.38% of all affected villages,

178 Appendix 5 the groups visited accounted for 10.81% of all affected groups, and the No. of households visited accounted for 15.45% of all affected households.

Table 11: Selection of Sample Households No. No. of Affected by Construction Vulnerable No. Component Town Village Group AHHs of women the project status groups APs affected construction Changshou Town Acquisition Changshou Zhifu Dayuan 1 Sewage Constructed 5 17 11 0 of paddy Town Village Group Treatment field Plant Pingjiang County Land Domestic Wengjiang Taxing Shuidui acquisition 2 Constructed 5 26 13 0 Waste Town Village Group and house Sanitary demolition Landfill Wushi Town Wugongshi Sewage Under Wushi Group Acquisition 3 Residents’ 5 20 13 0 Treatment construction Town 12 of dry land Committee Plant Anding Paddy field Town Anding Anyong Zhongwu and dry 4 sewage Constructed 4 15 7 0 Town Village Group land treatment acquisition plant Total 4 towns 4 villages 4 groups 19 78 44 0

Income analysis of sample households

27. As the compensation for cultivated land occupation is one-time financial compensation, no land transfer and resettlement is carried out in the village. Therefore, the staff investigated the cultivated land loss of 14 sample households affected by land acquisition. According to the survey results, the 14 sample households lost a total of 16.51% of cultivated land. The survey results are shown in Table 12.

Table 12: Survey on Cultivated Land Loss of Sample Households Original Existing cultivated cultivated Occupied Affected land of land of No. Town Village Group AHHs cultivated Proportion by sample sample land (mu) households households (mu) (mu) Acquisition Changshou Zhifu Dayuan 1 5 of paddy 23.8 20.3 3.5 14.71% Town Village Group field Wugongshi Wushi Group Acquisition 2 Residents’ 5 34 28 6 17.65% Town 12 of dry land Committee Paddy Anding Anyong Zhongwu field and 3 4 28.5 23.5 5 17.54% Town Village Group dry land acquisition Wengjiang Taxing Shuidui Acquisition 4 5 20.28 17.18 3.1 15.28 Town Village Group of dry land Total 14 106.58 88.98 17.6 16.51%

179 Appendix 5 28. According to the survey and statistics of income and expenditure of sample households before and after cultivated land acquisition, the results show that:

• Agricultural income: The agricultural income generally decreased after land acquisition; • Total income: The total income kept increasing after land acquisition, among which the sample households whose land was acquired in 2011, 2013 and 2015 increased by 40.93%, 38.06% and 21.4% respectively; • Net income: The per capita net income of the sample households whose land was acquired in 2011, 2013 and 2015 increased by 89.74%, 67.97 and 45.93% respectively.

29. It can be seen that the land acquisition has a certain impact on income. The shorter the land acquisition time is, the more obvious the impact will be. With the increase of land acquisition time, the income will slowly resume growth. Table 13, Table 14 and Table 15 are for the comparative analysis of income.

Table13: Annual Net Income of APs prior to LA (Unit: CNY/person) Villages Total Agricultural Operating Work Other Total Production Living Other Net and Year income income income income income expenditure expenditure expenditure expenditures income groups Shuidui Group, 2011 6,784 1,705 1,422 3,600 57 4,553 1,564 2,578 412 2,231 Taxing Village Zhongwu Group, 2013 7,620 1,388 1,533 4,400 299 4,773 1,461 2,896 417 2,847 Anyong Village Dayuan Group, 2015 8,130 1,862 1,676 4,432 160 4,864 1,769 3,089 6 3,266 Zhifu Village Group 12, Wugongshi 2018 9,268 1,610 2,138 5,430 90 5,504 1,874 3,522 108 3,764 Town

Table14: Annual Net Income of APs after LA (Unit: CNY/person) Villages Total Agricultural Operating Work Other Total Production Living Other Net and Year income income income income income expenditure expenditure expenditure expenditures income groups Shuidui Group, 2019 9,561 878 1,909 6,621 153 5,328 975 3824 528 4,233 Taxing Village Zhongwu Group, 2019 10,520 829 2,124 7,420 147 5,738 1,034 4,208 496 4,782 Anyong Village Dayuan Group, 2019 9,876 1,091 1,988 6,520 277 5,110 1,078 3,950 82 4,766 Zhifu Village Group 12, Wugongshi 2019 9,522 1,074 2,232 6021 195 5,761 1,058 4,315 388 3,761 Town

Table15: Income Comparison Before and After Land Acquisition (Unit: CNY/person)

180 Appendix 5 Total Living Other Net Net income Villages Total Agricultura Operating Work Other Production expenditu expenditur expenditur incom Growth rate and groups income l income income income income expenditure re e es e (%) Shuidui Group, 2,777 -827 487 3,021 96 775 -588 1,246 117 2,002 89.74% Taxing Village Zhongwu Group, 2,900 -559 591 3,020 -152 965 -427 1,312 80 1,935 67.97% Anyong Village Dayuan Group, 1,746 -771 312 2,088 117 246 -691 861 76 1,500 45.93% Zhifu Village Group 12, Wugongshi 254 -536 94 591 105 257 -816 793 280 -3 -0.08% Town

Guarantee of rights and interests of sample households

30. In June 2020, the staff conducted a survey to the project site and held meeting with sample households.

Project Investigation and Interview with Sample Households

31. The investigation results show that:

• 100% of the affected households indicated that they knew or basically understood the land acquisition policy; • 100% of the affected households indicated that the land acquisition had been announced and negotiated;

181 Appendix 5 • 100% of the affected households indicated that women participated in the consultation and that women had the right to control the compensation; • 100% of the affected households indicated that the compensation had been fully paid and there were no remaining problems; • 63.2% of the APs said they knew about this ADB-financed project; and 36.8% of the APs said they were unclear.

32. It can be seen that the rights and interests of the affected households was well protected during the construction of the Project, and the opinions of women and the elderly were fully considered in the negotiation process. The APs are relatively satisfied with the land acquisition. However, it is indicated that publicity of the ADB-financed project needs to be further strengthened.

3.9. Conclusion and Corrective Action Plan

Conclusion

1) Among the 25 existing facilities, the land acquisition has been completed, and all compensation expenses have been paid in place for sewage treatment plants of 21 towns and Pingjiang landfill, partial land acquisition has been completed for sewage treatment plants of three towns, namely Wengjiang Town, Yuping Town and Sanshi Town. 2) For project land, the agreement for land acquisition compensation has been concluded with the rural collective economic organizations, and relevant land acquisition procedures have been fulfilled; the public participation in land acquisition and information disclosure were conducted properly; the APs agreed with the land acquisition procedures and compensation, and no complaint about land acquisition was received. 3) The land acquisition of the project involves a small proportion of cultivated land. Although it has limited impact to the whole project area, certain impact on the income of the APs is identified. However, with the passage of time, the production and operation will gradually get recovered, and their income will also resume growth. 4) The local government is is implementing the endowment insurance measures for eligible LLFs, and has held related training for LLFs. 5) Women enjoy completely equal status with men, and the government attaches importance to women's rights and interests, and specially organizes skills training for land-loss women.

Corrective Action Plan (to be completed before RP update) Problem Corrective Action Plan PIUs Budget Deadline The state- Speed up the issuance of the state- PMO and N/A By end of owned land use owned land use certificate related township 2020 certificate government lagged behind Endowment Speed up the implementation of PMO and N/A By end of insurance for endowment insurance process related township 2020 landless farmers government lagged behind Payment of land Speed up the pending payment of LA PMO and N/A By end of compensation in Piangjiang 2020 a timely and full Natural manner Resource Bureau AP’s livelihood organize appropriate trainings on PMO and CNY 50,000, will By end of and income employability skills and take certain related township be included in 2020 restoration issue supporting measures for APs to help government the project has not been contingencies

182 Appendix 5 Problem Corrective Action Plan PIUs Budget Deadline paid attention them in employment, income generation, adequately livelihood and income recovery The APs affected by LA conducted in PMO Included into the Whole 2017-2019 will be included into the resettlement project monitoring scope of the project monitoring cost process

183 Appendix 5 4. Due Diligence of Yueyang Municipal Hazardous Waste Disposal LTD

33. As this project involves treatment of medical waste discharge from hospitals, a due diligence in relation to resettlement was conducted to identify the resettlement issue of the treatment plants which would handle the medical waste. According to the investigation, the medical sewage of this project will be collected and transported to the Yueyang Municipal Hazardous Waste Disposal LTD for appropriate treatment.

34. Based on the record, the Yueyang Municipal Hazardous Waste Disposal LTD was established in September 2003. It is located in Jingmai Industrial Park, Luxun Community, Lucheng Town, Yunxi District of Yueyang City. The site belongs to state-owned land which has been acquired for more than 20 years. As the handling of additional medical waste from the project could be accommodated and will not result to expansion of disposal site or trigger any LAR, and the land is state-owned land for more than 20 years, it will not cause any resettlement issues for the project.

184 Appendix 5

5. Due Diligence for Huangjindong Reservoir

35. The wetland for Subproject 2: Huangjin River National Wetland Park restoration and protection is located within the Huangjindong Reservoir catchment.

36. In June 2020, the Resettlement Department of PMO, together with TrTA Resettlement Specialist, RP-DI, and representatives from the Water Resource Bureau and other relevant government agencies conducted resettlement due diligence on Huangjindong Reservoir.

I. General Situation of Huangjindong Reservoir

37. Huangjindong Reservoir is located in Shiyan Village, Changshou Town, Pingjiang County. It was built in 1990 and put into operation in 1995. It is a comprehensive water conservancy project with irrigation as main and power generation and flood control. The storage capacity of the reservoir is 96 million m3, which is the largest medium-scale reservoir in Pingjiang County. In 2012, this reservoir became the water source under Pingjiang eastern water supply complex project, and it undertook the drinking water safety for 406,000 people in Pingjiang County.

38. The operation and management of the reservoir has been undertaken by the Huangjindong Reservoir Management Institute of Pingjiang County, which is a public welfare institution, with 7 authorized positions, including 1 Director, 1 Deputy Director, and 5 staff in total.

II. General Situation of Huangjindong Reservoir APs

39. From 1990 to 1992, the land acquisition and house demolition for construction of Huangjindong Reservoir were carried out. The inundation impact of reservoir construction involved 8 villages in 1 town, with a total of 1,844 mu farmland and 2,564 mu mountain forest inundated, 90,925 m2 non-residential houses and 26,463 m2 residential houses demolished, 4,935 people from 1,175 households were affected, and 14 units affected.

40. The mode of production recovery is resettlement with land, which is resettled through cultivated land adjustment; the relocation resettlement is divided into three categories: rearward resettlement, centralized resettlement and monetary resettlement.

41. Since 2006, the APs of Huangjindong Reservoir have enjoyed the national post support policy. Each AP receives an annual subsidy of CNY 600, which is directly distributed to the AP's passbook. At the same time, according to the annual financial plan, Hunan Province Government allocates a certain amount of infrastructure construction expenses to improve the transpotation, electricity, water supply, communication and other infrastructures to improve living conditions of the APs in the area of Huangjindong Reservoir.

42. According to the data provided by Pingjiang Water Resource Bureau, capacity of the reservoir will not increase as such no LAR impacts will be caused on surrounding villages. There is no remaining issue for the resettlement of Huangjindong Reservoir.

185 Appendix 5 6. Due Diligence of Land for Dajiangdong Reservoir

43. The Subproject 4: Integrated water supply in urban and rural Pingjiang involves the construction of a water supply in northern Pingjiang County. Dajiangdong Reservoir will be the water sources.

44. In April 2020, the RP-DI, together with the Resettlement Department of PMO, conducted resettlement due diligence with representatives from Water Resource Bureau of Pingjiang County, Resettlement Bureau of Pingjiang County, Dajiangdong Reservoir Management Institute and other departments.

I. General Situation of Dajiangdong Reservoir

45. Dajiangdong Reservoir is located in Zhongping Village, Nanjiang Town, Pingjiang County, Yueyang City, Hunan Province. The dam site is located in the upper reach of Zhongdong tributary of the Miluo River in Dongting Lake water system in the Yangtze River drainage basin. The rainwater collecting area of the reservoir is 32.39 km2, including 12.6 km2 from outside, with annual average water yield of 38 million m3, total reservoir of 34.4 million m3, normal storage level of 377.20 m, check flood level of 379.42 m, maximum dam height of 61.7 m, as a reservoir subject to mean annual regulation. The reservoir is composed of the dam, flood spillway, water tunnel, power plant, etc., with design irrigation area of 13,000 mu and the installed capacity of 4,000 kW (Level II), which is a multi-purpose medium-sized water conservancy and hydropower project considering flood control, power generation, fish farming, etc. around irrigation.

46. The reservoir was officially commenced in September 1977, and completed and put into water accumulation and operation in November 1979.

47. The operation and management of the Dajiangdong Reservoir has been undertaken by the Dajiangdong Reservoir Management Institute of Pingjiang County, which is a public welfare institution, with 6 authorized positions, including 1 Director, 1 Deputy Director, and 5 staff in total.

II. General Situation of Dajiangdong Reservoir APs

48. The submergence impact of Dajiangdong Reservoir mainly involved 2 townships (Nanjiang and Hongqiao), including 38 villages, totaling 2,217 APs designed and investment of CNY 3.6 million. The mode of APs relocation and resettlement was subject to move-back and scattered resettlement, and the mode of production resettlement was resettlement with land and grain subsidy.

49. The total current APs related to this reservoir is 4,312, from 47 villages in 7 townships (Nanjiang Town, Hongqiao Town, Jiayi Town, Longmen Town, Sandun Town, Banjiang Village and Shangta Town).

50. Since 2006, the APs of Huangjindong Reservoir have enjoyed the national post support policy. Each AP receives an annual subsidy of CNY 600, which is directly distributed to the AP's passbook. At the same time, according to the annual financial plan, Hunan Province Government allocates a certain amount of infrastructure construction expenses to improve the transporation, electricity, water supply, communication and other infrastructures to improve living conditions of the APs in the area of Huangjindong Reservoir.

186 Appendix 5 51. According to the data provided by Pingjiang Water Resource Bureau, capacity of the reservoir will not increase as such no LAR impacts will be caused on surrounding villages. There is no remaining issue for the resettlement of Dajiangdong Reservoir.

187