Social Monitoring Report

Project Number: 39228 January 2013

PRC: Xinjiang Municipal Infrastructure and Environmental Improvement Project The Monitoring and Evaluation Report on Ethnic Minority Development Plan – for Kanas Component

Prepared by Xinjiang Agricultural University Urumqi, Xinjiang Uygur Autonomous Region PRC

For Xinjiang Project Management Office

This report has been submitted to ADB by Xinjiang Project Management Office and is made publicly available in accordance with ADB’s Public Communications Policy (2011). It does not necessarily reflect the views of ADB. Your attention is directed to the “Terms of Use” section of this website.

ADB-financed Project of Xinjiang Local Infrastructure & Environmental Improvement

External Monitoring & Assessment Report On Ethnic Minority Development Plan of Kanas Ecological Improvement & Infrastructure Restoration Project (Year of 2012)

Xinjiang Agricultural University Jan. 2013

External Monitoring & Assessment Report On Ethnic Minority Development Plan of Kanas Ecological Improvement & Infrastructure Restoration Project (Year of 2012)

Project leader: ZHU Meiling

Prepared by: ZHU Meiling, MA Yongren

Data collected & analyzed by: MA Yongren, ZHU Meiling

Aertai, Maideer

Translated by: CHENG Luming, ZHOU Nan

Address: Faculty of Economics and Business, Xinjiang

Agricultural University, No.311 East Nongda Road, Urumqi,

Xinjiang Uygur Autonomous Region, China

Zip: 830052

TABLE OF CONTENTS

1 Brief Summary of the Project ...... 1

1.1 Brief Summary of the Project ...... 1

1.2 Changed Impact of the Project on Ethnic Minorities ...... 3

1.3 External Monitoring and Assessment ...... 4

2 Socioeconomic Situation of Project Area ...... 8

2.1 Socioeconomic Status of Buerjin County and Habahe County ...... 8

2.2 Socioeconomic Status of Townships and Villages in Project Counties ...... 15

3 Capacity Evaluation of EMDP Agencies ...... 19

3.1 Structural Establishment of Agencies ...... 19

3.2 Capacity Evaluation of EMDP Agencies ...... 21

3.3 Working Efficiency Evaluation ...... 22

3.4 Internal Monitoring ...... 23

4 Measures and Implementation Progress of EMDP ...... 24

4.1 Overview of EMDP ...... 24

4.2 Fulfillment of EMDP Mitigation Measures (A) ...... 24

4.3 Fulfillment of EMDP Enhancing Measures (B) ...... 36

4.4 Fulfillment of EMDP Beneficial Measures (C) ...... 45

4.5 Progress of EMDP Fund Utilization ...... 48

4.6 Summary of Effect and Monitoring Indicators of EMDP ...... 49

5 Production and Livelihood of EM Sample HHs in Project Area...... 51

5.1 Basic Information on Sample HHs in Project Area ...... 51

5.2 Production of Sample HHs in Project Area ...... 54

5.3 Economic Condition of Sample HHs in Project Area ...... 55

5.4 Perception and Attitude of Sample HHs towards the Project and Typical Case Study in

Project Area ...... 57

6 Public Participation, Complaint and Grievance ...... 59

6.1 Public Consultation and Participation ...... 59

6.2 Listening to and Settlement of Complaints from APs ...... 59

I 6.3 Questionnaire of Public Satisfaction and its Result ...... 59

7 Conclusion of Monitoring & Assessment, Problems and Suggestions ...... 61

7.1 Assessment Conclusion ...... 61

7.2 Suggestions ...... 62

II TABLE DIRECTORY

Table 1-1 The main contents of the project construction and land acquisition ...... 2

Table 2-1 Administrative divisions, area and population density of project counties in 2011 .. 8

Table 2-2 Demographic Situation of the Project Counties in 2011 ...... 9

Table 2-3 Birth, Death and Natural Growth in the Project Counties, in 2011 ...... 9

Table 2-4 Population and Composition in Project Counties in 2011 ...... 10

Table 2-5 Agricultural Planting Area in Project Counties in 2011 ...... 11

Table 2-6 Livestock Breeding in Project Counties in 2011 ...... 12

Table 2-7 Total and Added Value of Output in Farming, Forestry, Animal Husbandry and

Fishery in Project Counties in 2011 ...... 13

Table 2-8 Total income of the rural economy and net income per capita of Project Counties in

2011 ...... 13

Table 2-9 Middle Schools and Elementary Schools in Project Counties in 2011 ...... 14

Table 2-10 Basic Information of Project Counties in 2011 ...... 14

Table 3-1 Leading Group of Kanas Component in 2012 ...... 19

Table 3-2 Staffing and Working Conditions for EMDP Agency in 2011 ...... 21

Table 3-3 Kanas EMDP Administrative Office’s Function and Evaluation in 2012 ...... 21

Table 4-1 Fulfillment of EMDP Mitigation Measures in 2012 ...... 25

Table 4-2 Details of Women’s Project Activities ...... 33

Table 4-3 Low-income Households in Project Area in 2012 ...... 35

Table 4-4 Fulfillment of EMDP Enhancing Measures in 2012 ...... 36

Table 4-5 EMDP-funded Skill Trainings in 2012 ...... 40

Table 4-6 Fulfillment of EMDP Beneficial Measures in 2012 ...... 46

Table 4-7 Use of Local Building Materials and Transportation Resources in Landfill

Construction in 2012 ...... 47

Table 4-8 Contractors absorb local labor force to participate in project construction in 2012 ...... 47

Table 4-9 Progress of EMDP Fund Utilization in 2012 ...... 48

Table 4-10 Implementation Effect and Monitoring Indicators of EMDP Mitigation Measures

and Benefit-enhancing Measures in 2012 ...... 49

III Table 5-1 Demographic Situation of Sample HHs in Project Villages in 2012 ...... 51

Table 5-2 Land Ownership of Sample HHs in Project Villages in 2012 ...... 51

Table 5-3 Housing Conditions of Sample HHs in Project Villages in 2012 ...... 52

Table 5-4 Residence Conditions of Sample HHs in Project Villages in 2012 ...... 53

Table 5-5 Living Convenience of Sample HHs in Project Area ...... 53

Table 5-7 Production Means Sample HHs Possess in Project Area in 2012 ...... 54

Table 5-8 Possesions and Durables Sample HHs Possess in Project Area ...... 55

Table 5-9 Income Level of Sample HHs in Project Area ...... 56

Table 5-10 Expenditure Level of Sample HHs in Project Area ...... 57

Table 6-1 Summary of Feedback on Implementation Effect of Mitigation Measures in 201260

IV External Monitoring & Assessment Report on Kanas EMDP in 2012

1 Brief Summary of the Project

1.1 Brief Summary of the Project

1.1.1 Content of the Project The content of ADB-financed Kanas Ecological Improvement & Infrastructure Restoration Project includes: (1) Road works, (2) Water supply works, (3) Drainage works, (4) Environmental sanitation and waste disposal works, and (5) Vegetation rehabilitation works. Within the project, there are 8 Construction and Installation sub-projects and 7 Equipment and tools procurement sub-projects. With the implementation of the project from year 2009 to year 2012, three Construction works and two Equipment Procurements have been completed. However, during the process of the project, the Management Committee of Kanas made adjustments based on the circumstances in Kanas, namely,  Canceled Works: (1) Road and parking lot works in Hemu Village (A25) 9,810m road and parking lot works in Hemu Village have been canceled. Since, the road has been constructed by a superior Transportation Department through a Rural Road Project and the parking lot has been completed by other funds. (2) Road and parking lot works in Tiereketi Village (A27) 6,354m road and parking lot works in Tiereketi Village have been canceled. Since, the road has been constructed by a superior Transportation Department through a Rural Road Project and the parking lot has been completed by a superior Transportation Department and the Tourist Service Center of Tiereketi Village. (3) Parking lot work in Haliutan (A28) Parking lot work in Haliutan has been canceled. Functional orientation of Haliutan area has been adjusted according to the General Plan of Kanas Tourism Area. No accessory facilities will be built near Haliutan parking lot in short or long term. The original integrated service area is relocated 60km away and the parking lot is not suitable to be built on the original site. (4) Vegetation rehabilitation works on the road from Haliutan to Jiadengyu (A31)

1 External Monitoring & Assessment Report on Kanas EMDP in 2012

Due to the change of the road reconstruction project, the vegetation rehabilitation works on the road from Haliutan to Jiadengyu has been canceled. It will be revived during the implementation of the Buerjin to Kanas road reconstruction project, by Xinjiang Transportation 12th Five-Year Plan from year 2011 to year 2012.  Change the New Works (1) Construction works Changing the content of the new construction works is aimed at reconstructing the two roads in Kanas Scenic Spot. The detailed work and the occupied area of the parking lot construction in Tiereketi Village and Kanas Village can be seen in Table 1-1. Table 1-1 The main contents of the project construction and land acquisition Usage Name of the Scale of Belongs to Belongs to SN Location before Work Construction (Village) (Township) Acquisition Road Kanas Original Kanas Hemu 1 7.6 km Reconstruction Village road land Village Hanas Mongolian Road New Kanas Original Kanas 2 1.5km Autonomous Reconstruction Village road land Village Township 500m to the left side of New Parking Natural Tiereketi Tiereketi 4 5000m2 local police Lot grassland Village Township station, Tiereketi East-West Hemu New Parking Forked Natural Kanas 6 3000m2 Hanas Lot Road of grassland Village Mongolian Liekenaren Autonomous New Parking Natural Kanas 7 5000m2 Jiadengyu Township Lot grassland Village

(2) Equipment Procurement ① Procurement of environmental sanitation equipment. 5 road sweepers, 5 equipment rooms and 5 road sanitation service vehicles are included. ② Procurement of waste collection and disposal equipment. 2 garbage trucks (Compression Type), 6 small-size garbage collection trucks, 2 fecal suction trucks, 4

2 External Monitoring & Assessment Report on Kanas EMDP in 2012 suction machines, 3 garbage transfer stations and 500 garbage bins are included. ③ Procurement of road maintenance equipments. 2 multi-functional snow mobiles, 5 road maintenance vehicles and 3 road sprinklers are included. ④ Procurement of environmental monitoring equipments. 57 sets of equipment are included, namely, air automatic monitoring system, hydrologic monitoring system, gas detection system, environmental monitoring and detection equipments, etc. 1.1.2 Project Investment and Financing The overall investment of the project is 39.35 million yuan after the project change, 4.98 million US dollars are ADB-financed (32.37 million CNY, yuan, exchange rate = 1:6.5), accounts for 82.26% of the total investment. The Management Committee of Kanas Scenic Spot invests 6.98 million yuan which accounts for 17.74%. 1.1.3 Project Construction Period The project construction period is 4 years in total (year 2009 to year 2012), the construction period of the changed project is 1 year (year 2012 to year 2013). In 2013, the whole project will be completed. 1.1.4 The Progress of the Project In the ADB-financed Kanas Ecological Improvement & Infrastructure Restoration Project area, some works have been completed, namely, water supply and drainage works in Tiereketi Village, vegetation rehabilitation works on the road from Jiadengyu to Kanas and sanitary landfill with garbage collection and transfer system in Heiliutan. Other sub-projects are in progress. 61% of the project has been completed. Hopefully, the whole project will be finished by the year 2013.

1.2 Changed Impact of the Project on Ethnic Minorities

In the original plan of the project, since the natural grassland of 121.3 mu which is requested permanently is collectively-owned, there is little impact on the local herders. In the updated plan of the project, the natural grassland of 19.5 mu which is requested permanently is owned by 5 HH Kazak persons.

3 External Monitoring & Assessment Report on Kanas EMDP in 2012

In the Ethnic Minority Development Plan (original version), the main contents are mitigation measures and beneficial measures. While, in the updated plan, 3 categories of measures are included, namely, mitigation measures, enhancing measures and beneficial measures. It covers poverty reduction, encouragement of women’s participation and decision making, maintenance of public sanitation and public security, development of animal husbandry and tourism, environmental protection and education, etc. After the changing of the project, proposed measures of EMDP are not reduced, and 4 enhancing measures are added. Mitigation measures (A) are expanded from 5 measures to 10 measures, and the original benefit-enhancing measures are divided into enhancing measures (B) and beneficial measures (C). In enhancing measures (B), 4 items are added which are development and enhancing the bilingual education, construction units equipped with bilingual translators, improvement of the power supply facilities and enhancing the culture, education and health service in the project village. Beneficial measures (C) are the same beneficial measures in original plan.

1.3 External Monitoring and Assessment

1.3.1 Monitoring and Assessment Agencies External monitoring & assessment of EMDP is taken by Xinjiang Agricultural University independently. In accordance with the requirement of the project, a working group for monitoring and assessment of EMDP implementation of Xinjiang Kanas project has been established. Based on the ADB related policies and the outline of external monitoring & assessment on EMDP, a comprehensive monitoring and assessment of the implementation of EMDP will be completed. 1.3.2 Assignments of Monitoring and Assessment The independent monitoring and assessment of the implementation of the EMDP is implemented by the external independent monitoring and assessment agency in accordance with the requirements of the ADB. The main assignments cover:  Visiting and assessment of the project implementation agencies;  Investigation on socioeconomic conditions of typical sample villages;

4 External Monitoring & Assessment Report on Kanas EMDP in 2012

 Follow-up visiting and investigation on typical samples HHs;  Visiting and investigation on vulnerable groups;  Investigation and assessment on construction sites;  Investigation on skill training;  Investigation on measures for accelerating development of tourism;  Investigation on Measures for accelerating development of animal husbandry;  Investigation on fulfillment of funds for various measures;  Providing feedback of the monitoring to implementation agencies and proposing suggestions;  Preparing External Monitoring & Assessment Report on EMDP. 1.3.3 Methods of Monitoring and Assessment (1) Literature review of the project implementation To collect various documents related to EMDP systematically, for instance, summary reports of the HHs and EMDP by IAs, investigations and data on the related subjects, etc. (2) Investigation on internal monitoring files Be familiar with the progress of the project, statistic files of the EMDP implementation and problems occur during the progress with the help of internal monitoring files. (3) IAs interviews Interview HHs and IAs of the EMDP, for instance, Tourist Bureau, Education Bureau, Women’s Federation, Labor Bureau and Bureau of Ethnic and Religious Affairs. Be familiar with current measures taken by IAs, achievements obtained during the process and existent problems. In addition, monitoring and assessment agencies have monitored and assessed the capabilities of EMDP IAs by visiting. (4) Affected households interviews Deep interviews with affected EM households are conducted. Be familiar with affected persons, socioeconomic conditions of the HHs, livelihood recovery, fulfillment of EMDP measures, impacts and benefits HHs get from the project and

5 External Monitoring & Assessment Report on Kanas EMDP in 2012 opinions and suggestions towards EMDP from EM HHs. (5) Forums The staff of external monitoring and assessment agency organizes county governments, township governments, village officials and representatives of minority residents to participate in the forum in the areas where affected EM is more concentrated. The key information collected is general information of the socioeconomic conditions in the project area, status of the development of women and groups in poverty, the progress of the EMDP implementation, the impacts and benefit that the project brings to local residents, the opinions and suggestions towards the project from EM representatives and the communications during the implementation of the project, etc. (6) Field observation Be familiar with EMDP implementation progress, the arrangement and the effects of the measures taken by the construction units. Aiming at solving the problems found from the field observation, external monitoring and assessment agency of the EMDP will provide corresponding suggestions and countermeasures. (7) Investigation on the typical cases Follow-up visiting and investigation on EM typical HHs includes: economic recovery of the typical cases and family income and expenses, etc. Filed investigation on typical EM HHs, for instance, single-parent family, family in poverty, is conducted to collect first hand information. Based on the analysis of the information, existent or potential problems are found and suggestions are put forward. 1.3.4 Work Flow of Monitoring and Assessment We prepared detailed work flow in order to secure objectiveness, precision and timeliness of the report: Stage I: preparation. Complete the investigation plan. Stage II: field investigation and data processing. Observe the fulfillment and progress of EMDP in the project area, and listen to the opinions of EM residents on land requisition and resettlement.

6 External Monitoring & Assessment Report on Kanas EMDP in 2012

Stage III: preparation and submission of the report. Prepare monitoring report on the progress of EMDP implementation in accordance with ADB’s requirements on monitoring. The monitoring period is from January 1st, 2012 to December 31st, 2012. 1.3.5 Content of Monitoring and Assessment The external monitoring agency is to monitor the items implemented in accordance with the requirement of EMDP in 2012. The main content of monitoring covers 10 aspects:  Structural establishment and work efficiency of the agency in charge of ethnic minority development;  Socioeconomic conditions in the project area;  Actuality of EM skill training;  Recruitment and use of local EM work force by the contractors during the construction period;  Sufficiency and justification of public consultation and participation;  Measures for accelerating development of tourism;  Measures for accelerating development of animal husbandry;  Actuality of listening to and settlement of the complaint of affected persons of ethnic minorities;  Assistance received by the vulnerable groups; and  Fulfillment of funds for various measures. 1.3.6 Objects Scope of Monitoring and Assessment According to the requirements of EMDP, there are 1,147 households in 5 villages where the project is implemented. The above 5 villages are Hemu Village, Kanas Village, Tiereketi Village, No.1 Akehaba Village and No.2 Akehaba Village. 5 villages are included in the objects of the external monitoring in 2012. The sample villages account for 100% of the affected villages. In 2012, 240 HHs are investigated, which is 20.92% of the total HHs. There are 224 EM HHs which account for 93.33% of the total sample HHs. The sample size is 848 persons, accounting for 21.06% of the total population in the project area. There are 795 EM persons which account for 93.75% of the sample population.

7 External Monitoring & Assessment Report on Kanas EMDP in 2012

2 Socioeconomic Situation of Project Area

The implementation area of Kanas ADB-financed Project is Hemu Village and Kanas Village in Hemu Hanas Mongolian Autonomous Township, Buerjin County, No.1 Akehaba Village, No.2 Akehaba Village and Tiereketi Village in Tiereketi Township, Habahe County.

2.1 Socioeconomic Status of Buerjin County and Habahe County

2.1.1 Administrative divisions of the project counties The total area of Buerjin County is 10,440.3 square kilometers, which covers 5 townships and 2 towns. The county's population density is 6.44 persons/square kilometers. The total area of Habahe is 8,528 square kilometers, which covers 6 townships and 1 town. The county's population density is 9.84 persons/square kilometers. Details are shown in Table 2-1. Table 2-1 Administrative divisions, area and population density of project counties in 2011 Community Population Town Villagers' Name of Township Residents Area density (quan Committee Name of Townships and Towns Counties (quantity) Committee (sq.km) (persons/sq. tity) (quantity) (quantity) km) Woyimoke Township, Dulaiti Township, Kuositeke Township, Buerjin Yekezituobie Township, Hemu Hanas 5 2 6 63 10440.3 6.44 County Mongolian Autonomous Township, Buerjin Town and Chonghuer Town.

Saertamu Township, Jiayilema Township, Kulebai Township, Habahe 6 1 6 113 8528 9.84 Saerbulake Township, Tiereketi County Township, Qibaer Township and Akeqi Town. Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.2 Demographic Situation of the Project Counties The total number of resident households in Buerjin County is 23,882, total population 72,157 persons, and 3 persons/household. The ratio of male to female is 102:100. The agricultural population is 44,750 and the non-agricultural population is 27,407. The total number of households in Habahe County is 27,897, total population 87,470, and 3 persons/household. The ratio of male to female is 103:100. The

8 External Monitoring & Assessment Report on Kanas EMDP in 2012 agricultural population is 56,742 and the non-agricultural population is 30,728. See details in the Table 2-2. Table 2-2 Demographic Situation of the Project Counties in 2011 Unit: Person Name of Total By gender By agricultural / non-agricultural Population Counties HHs Male Female Agricultural Non-agricultural Buerjin County 23,882 72,157 36,349 35,808 44,750 27,407 Habahe County 27,897 87,470 44,330 43,140 56,742 30,728 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang In 2011, the birth rate of Buerjin County is 17.2‰, of which, the EM birth rate is 20.7‰. The mortality rate is 6.58‰, of which, the EM mortality rate is 7.44‰. The natural population growth rate is 10.62‰, of which, the EM natural population growth rate is 13.27‰. See details in the Table 2-3. In 2011, the birth rate of Habahe County is 17‰, of which, the EM birth rate is 20.23 ‰ . The mortality rate is 4.07 ‰ , of which, the EM mortality rate is comparatively lower, 3.88‰. The natural population growth rate is 12.93‰, of which, the EM natural population growth rate is 16.36‰. See details in the Table 2-3. Table 2-3 Birth, Death and Natural Growth in the Project Counties, in 2011 Unit: Person Item Buerjin County Habahe County 1. Number of Births 1,237 1,479 Of which: EM 1,041 1,227 Birth Rate（‰） 17.2 17 Of which: EM 20.7 20.23 2. Number of Deaths 473 354 Of which: EM 374 235 Mortality Rate（‰） 6.58 4.07 Of which: EM 7.44 3.88 3. Natural Growth Population 764 1,125 Of which: EM 667 992 Natural Growth Rate（‰） 10.62 12.93 Of which: EM 13.27 16.36 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.3 Ethnic Minority Composition in Project Counties In Buerjin County and Habahe County, the population consists mainly of Han, Uygur, Kazak and Hui, accounting for 95% and 98% of the total population, respectively. Details are shown in Table 2-4.

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Table 2-4 Population and Composition in Project Counties in 2011 Unit: Person Nationality Buerjin County Habahe County Han 21,662 26,377 Uygur 1,032 370 Kazak 41,498 53,228 Hui 4,526 6,029 Kyrgyz 6 4 Mongolia 1,736 439 Xibe 13 6 Russian 143 Uzbek 3 9 Chinese Tatars 325 47 Manchu 45 8 Daur 3 Others 1,165 953 Total 72,157 87,470 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.4 Agricultural Planting in Project Counties In 2011, the total crop area is 340,724 mu in Buerjin County, of which, the food crop area is 96,667 mu, the potato area is 1,501 mu, the oil plants area is 138,607 mu, the vegetable area is 5,905 mu and the alfalfa area is 21,329 mu. The total crop area is 550,000 mu in Habahe County, of which, the food crop area is 222,196 mu, the potato area is 24,000 mu, the oil plants area is 96,126 mu, the vegetable area is 9,710 mu, the alfalfa area is 56,693 mu and the silage corn area is 43,695 mu. Details are shown in Table 2-5.

10 External Monitoring & Assessment Report on Kanas EMDP in 2012

Table 2-5 Agricultural Planting Area in Project Counties in 2011 Unit: mu Item Buerjin County Habahe County Total Crop Area 340,724 550,000 1. Food Crop 96,667 222,196 A. Grain 49,911 170,479 (1) Wheat 29,060 58,205 (2) Maize 18,868 105,436 (3) Barley 695 3,202 (4) Others 1,288 3,635 B. Beans and peas 46,756 51,717 Of which: Soybeans 42,048 49,500 2. Potato 1,501 24,000 3. Oil Plants 138,607 96,126 4. Vegetable 5,905 9,710 5. Alfalfa 21,329 56,693 6. Silage Corn 43,695 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.5 Livestock Breeding in Project Counties By the end of 2011, the figure of livestock is 310,900 in Buerjin County. In the year 2011, the figure for livestock breeding survival is 193,500; the figure for sold livestock is 160,100 and the figure for livestock slaughtered and eaten by peasants themselves is 27,000. While, by the end of 2011, the figure for livestock is 402,900 in Habahe. In the year 2011, the figure for breeding survival livestock is 245,600; the figure for sold livestock is 204,400 and the figure for livestock slaughtered and eaten by peasants themselves is 34,400. See details in the Table 2-6.

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Table 2-6 Livestock Breeding in Project Counties in 2011 Unit: 104 capita Indicator Buerjin County Habahe County 1. End-of-year number of livestock 31.09 40.29 Of which: Cattle 11.06 11.39 Horse 1.79 1.52 Camel 0.46 0.36 Pig 0.22 0.09 Goat 17.56 26.93 Sheep 14.07 21.1 2. Breeding survival livestock 19.35 24.56 (within the year) 3. Sold livestock 16.01 20.44 (within the year) 4. Livestock slaughtered and eaten by peasants themselves 2.7 3.44 (within the year) Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.6 Income in the Project Counties In 2011, the total value of output in farming, forestry, animal husbandry and fishery is 496,227,300 yuan in Buerjin County, of which, the value of agricultural output is 214,235,200 yuan, the added value of output in farming, forestry, animal husbandry and fishery is 270,953,900 yuan. In Habahe County, the total value of output in farming, forestry, animal husbandry and fishery is 909,232,500 yuan, of which, the value of agricultural output is 491.947 million yuan, the added value of output in farming, forestry, animal husbandry and fishery is 508,707,600 yuan. See details in Table 2-7.

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Table 2-7 Total and Added Value of Output in Farming, Forestry, Animal Husbandry and Fishery in Project Counties in 2011 Unit: 104yuan Indicator Buerjin County Habahe County 1.Total value of output in farming, forestry, 49622.73 90923.25 animal husbandry and fishery Of which: Farming 21423.52 49194.7 Forestry 1792.04 3731.82 Animal husbandry 24697.64 36693.75 Fishery 239.89 364.98 Service industry for arming, forestry, animal 1469.64 938 husbandry and fishery 2. Added value 27095.39 50870.76 Of which: Farming 11825.75 27056.02 Forestry 896.01 2239 Animal husbandry 12842.78 20560.74 Fishery 203.91 208 Service industry for arming, forestry, animal 1326.94 807 husbandry and fishery Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang In 2011, the total income of the rural economy in Buerjin County and Habahe County is 493.135 million yuan and 354.72 million yuan respectively. The net income per capita of farmers is 6005 yuan in Buerjin County, 6260 yuan in Habahe County.

See details in Table 2-8. Table 2-8 Total income of the rural economy and net income per capita of Project Counties in 2011 Indicator Buerjin County Habahe County 1. Total income of the rural economy (104yuan) 49313.5 35472 Of which: Farming income 15805.53 17805 Forestry income 379.7 20 Animal husbandry income 17069.19 11658 Fishery income 22 6 2. Net income per capita of farmers(yuan) 6005 6260 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang 2.1.7 Education in Project Counties In 2011, there are 18 schools in Buerjin County and 26 schools in Habahe County. The figure for students in the two counties is 9,521 and 12,008 respectively, and for faculties 1,101 and 1,345 respectively. Details can be seen in Table 2-9.

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Table 2-9 Middle Schools and Elementary Schools in Project Counties in 2011 Indicator Buerjin County Habahe County 1. Number of school 18 26 Of which: Elementary school 9 12 Middle school 9 14 2. Number of students 9,521 12,008 Of which: Elementary school 5,790 7,579 Middle school 3,731 4,429 3. Number of faculty 1,101 1,345 Of which: Elementary school 593 739 Middle school 508 606 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang In 2011, the infrastructure has been greatly improved. Along with convenient transportation, all the villages opened to traffic in Buerjin County and Habahe County. In Buerjin County, 1 village has no access to telephone, 2 villages are not supplied with power supply. In Habahe County, 4 villages are not supplied with power supply and a few villages have access to tap water. Demographic situation and employees distributed in various fields can be seen in Table 2-10. Table 2-10 Basic Information of Project Counties in 2011 Buerjin Habahe Indicator Unit County County 1. Structural Establishment Townships and towns Quantity 7 7 Villagers' committees 63 113 2. Infrastructures Villages access to tap water Quantity 18 64 Villages opened to traffic Quantity 63 113 Villages access to telephone Quantity 62 113 Villages supplied with power supply Quantity 60 109 3. Rural population and employees (1) Rural households HH 14,510 16,782 Of which: HHs of animal husbandry HH 5,527 5,422 (2) Rural population Person 48,697 56,267 Of which: population of animal husbandry Person 18,578 19,737 (3) Total rural labor force Person 26,627 23,358 Of which: within the labor force age Person (4) Rural employees Person 22,712 21,996 Of which: Male Person 12,461 11,430 Female Person 10,251 10,566

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Cont.Table 2-10 Basic Information of Project Counties in 2011 Buerjin Habahe Indicator Unit County County (5) Agricultural employees Person 16,610 16,968 (6) Industrial employees Person 489 1,059 (7) Employees in construction industry Person 930 1,023 (8) Employees in transportation, warehousing and telecommunication Person 447 467 (9) Employees in information transmission, information service and software industry Person 107 37 (10) Employees in wholesale and retail Person 1,093 1,116 (11) Employees in accommodation and catering industry Person 1,149 921 (12) Employees in other industries Person 1,887 405 Data resource: 2012 Statistical Yearbook of Altay Prefecture, Xinjiang

2.2 Socioeconomic Status of Townships and Villages in Project Counties

The townships which are affected by the project are Hemu Hanas Mongolian Autonomous Township and Tiereketi Township; the villages which are affected by the project are Kanas Village and Hemu Village in Hemu Hanas Mongolian Autonomous Township, Tiereketi Village, No.1 Akehaba Village and No.2 Akehaba Village in Tiereketi Township. 2.2.1 Socioeconomic Status of Hemu Hanas Mongolian Autonomous Township and its Villages Hemu Hanas Mongolian Autonomous Township is located at the foot of the Altai Mountains, the northern margin of the Dzungaria Basin. The location is south of Russia, east to Mongolia and west to Habahe County. The total area is 3,040 square kilometers, 82 kilometers long from east to west and 68 kilometers from south to north, and an altitude of 1,300-4,100 meters. There is no obvious summer throughout the year. The weather is warm and cool in spring and autumn, with abundant precipitation and the average temperature is 18℃. The frost-free period is less than 70 days. The winter lasts up to 7 months with an average snow depth of 1.5 meters. Hemu Hanas Mongolian Autonomous Township is a township with a favorable natural and ecological environment with various plant and animal species. There are 39 types of livestock, 4 types of amphibians and reptiles and 117 kinds of birds; there

15 External Monitoring & Assessment Report on Kanas EMDP in 2012 are plants of 83 families, 298 genera and 798 kinds. Kanas Lake is known as foreign alpine lake in the Antarctic Ocean water system. The main types of fish in the Kanas Lake are huchotaimen, brachymystax lenok, burbot, Altay sturgeon, Arctic Xenocypris and Siberian roach. Hemu Village and Kanas Village which are under the jurisdiction of Hemu Hanas Mongolian Autonomous Township are located in Kanas Scenic Spot. The residents’ main sources of income come from tourism revenue. The total area of the township is 3,040 square kilometers, including arable land 1,500 mu, grassland 173,000 mu and forestry area of 160,000 mu. The township consists mainly of Mongolian Tuwa people, and other ethnic minorities are Kazak, Hui, Han and Russian. There are 636 households in Hemu Hanas Mongolian Autonomous Township, and it has a total population 2,331 persons, of which, 408 households in Hemu Village, with a total population of 1,408 persons and 228 households in Kanas Village, with a total population of 923 persons. The Mongolian Tuwa people are 1,320 persons, accounting for 56.6% of the total population of the township. Total output value of Hemu Hanas Minority Township is 33 million yuan in 2011; the income of township-level collective economy totals up 2.3 million yuan and the net income per capita of farmers and herders is 10,900 yuan, an increase of 5,056 yuan per capita. 596 workers have been transferred and the non-agricultural income totals up to 15 million yuan. 2.2.2 Socioeconomic Status of Tiereketi Township and its Villages Tiereketi Township is located 88 km to the north of Habahe County, south of the Altai Mountain and the mountainous areas east of the Habahe upstream. The total area is 1,323 square kilometers, 14 kilometers long from east to west and 92 kilometers from south to north, and has an average altitude of 1,072 meters. There are 2 villages under the jurisdiction of the township. In 2012, there are 598 households in Tiereketi Township, and a total population of 2,520 persons. The township consists mainly of Kazak people, Mongolian people, and other 2 ethnic groups, of which, Kazak reaches 2,140 persons, accounting for 84.9％ of the total population; Mongolian people are

16 External Monitoring & Assessment Report on Kanas EMDP in 2012

365 persons and 14.5％ of the total population; Han people are 7 persons and 0.28％ of the total population; Hui people are 8 persons, accounting for 0.32％ of the total population. In Tiereketi Township, animal husbandry is the pillar of economic growth, with the help of agriculture. The total area of arable land is 15,000 mu, including irrigated land 7,000 mu, dry farm 8,000 mu and grassland 12,000 mu. In 2011, the total crop area is 6,620 mu, of which, the wheat area is 5,032 mu, the barley area is 1,200 mu and the potato area is 588 mu. More than 3 million yuan petty agricultural loan is distributed. In 2011, the figure for livestock inventory is 17,403. 63 households engage in characterized breeding and 40 households engage in tourism. Total output value of Tiereketi Township is 8.39 million yuan in 2011, of which, the tourism revenue is 2.77 million yuan, the income of the township-level collective economy totals up to 550,000 yuan and the net income per capita of farmers and herders is 5,038yuan. There are 2 schools in Tiereketi Township, Tiereketi Township boarding school (including elementary schools, junior high schools and 3 elementary school teaching points, Akebulake teaching point, Qibaxilike teaching point and No.1 Baihaba Village teaching point) and Baihaba Mongolian elementary school. There are 201 pupils, and 32 of them are in Mongolian elementary school. 41 teachers are in elementary schools, and 9 of them are in the Mongolian elementary school. In middle school, there are 37 students and the faculty has a staff of 8 persons. There is 1 township health center and 3 village clinics. The health center is about 280 square meters with doctors' offices, pharmacy, accounting office, injection room, obstetrics and gynecology ward, etc. There are 16 medical personnel (4 of them work in village clinics), including 1 worker and 1 accountant. There are 3 local doctors working in the villages. (1) Basic information of Tiereketi Village There are 248 households in Tiereketi Village, a total population of 821 persons. The total number of labor force is 205, of which, Kazak people account for 98%. The total area of arable land is 3, 900 mu and the area of grassland is 1,200 mu. The peak

17 External Monitoring & Assessment Report on Kanas EMDP in 2012 of livestock volume at this village is 5,037. Planting wheat, animal husbandry and livestock breeding are the main modes of production there. Infrastructure is completed and the village has access to water supply, power supply, telecommunication and traffic. （2）Basic information of No.1 Akehaba Village There are 166 households in No.1 Akehaba Village, a total population 593 persons. The total number of the labor force is 277, of which, Kazak people account for 75%. The total area of arable land is 2,900 mu and the grassland is 3,850 mu. The peak of livestock volume at this village is 4,792 capita. Animal husbandry is the major industry there. There is an excellent communication infrastructure, however, no overall water supply and power supply is achieved. The roads are under construction. (3) Basic information of No.2 Akehaba Village There are 97 households in No.2 Baihaba Village, total population 282 persons. The total number of the labor force is 99, of which, Mongolian people account for 100%. The total area of arable land is 1,800 mu and the grassland is 2,600 mu. The peak of livestock volume at this village is 1,334. Animal husbandry is the major industry there. There is an excellent communication infrastructure, however, no overall water supply and power supply is achieved. The roads are under construction.

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3 Capacity Evaluation of EMDP Agencies

3.1 Structural Establishment of Agencies

Kanas Scenic Spot Management Committee is the execution agency (EA) of EMDP, consisting of the Leading Group, PMO and the relevant implementation agencies (IAs); of which, PMO and the relevant implementation agencies carry the responsibility for the concrete implementation of the project. (1) Leading Group EMDP Leading Group and RP Leading Group are the same group. See details for the Leading Group and members in 2012 in Table 3-1. Table 3-1Leading Group of Kanas Component in 2012 Person in Duty Current Position Charge Group Assistant secretary of the Party Committee of Kanas Scenic Spot, KANG Jian leader director of Management Committee Member of the Party Committee of Kanas Scenic Spot, TANG Hua vice director of Management Committee Member of the Party Committee of Kanas Scenic Spot, GUO Wenhui Deputy vice director of Management Committee leader ZHANG Member of the Party Committee of Kanas Scenic Spot, Yongzhu vice director of Management Committee GENG Director general of Land Resource Subbureau of Kanas Scenic Wenshun Spot Director general of Development & Reform Committee LIU Yurong of Kanas Scenic Spot CHEN Liming Director general of Finance Bureau of Kanas Scenic Spot Chief of Environmental Protection, Construction & Transportation WANG Xinhui Bureau of Kanas Scenic Spot Members Deputy director general of Land Resource Sub bureau of Kanas CHEN Yun Scenic Spot Secretary of the Party Committee of Hemu Hanas Mongolian WANG Haifeng Township CHENG Secretary of the Party Committee of Tiereketi Township Yuanjiang Data source: Environmental Protection, Construction & Transportation Bureau of Kanas Scenic Spot Management Committee (2) PMO PMO is an office under the Leading Group, which is located at Environmental

19 External Monitoring & Assessment Report on Kanas EMDP in 2012

Protection, Construction & Transportation Bureau of Kanas Scenic Spot. ZHANG Yongzhu holds a concurrent post as the director of PMO, and LUO Zhiming as the deputy director. The staff also includes GU Changming, ZHONG Ming, YANG Li, CHEN Yun, TAO Fei, XU Zhi and MU Hongmei. (3) Relevant implementation agencies of the Project According to the specific content of the project, different work of EMDP is allocated to different departments. Those departments are: Public Utility Administration under Management Committee of Kanas Scenic Spot, Politics Section under Management Committee of Kanas Scenic Spot, Finance Bureau under Management Committee of Kanas Scenic Spot, Land Resource Bureau under Management Committee of Kanas Scenic Spot, Bureau of Agriculture, Animal Husbandry and Water Conservancy under Management Committee of Kanas Scenic Spot, Tourist Bureau under Management Committee of Kanas Scenic Spot, project contractors, township governments of Hemu Hanas Minority Township and Tiereketi Township in the project area ,and villagers' committee of 4 villages in the project area, i.e. Hemu Village, Tiereketi Village, No.1 Akehaba Village and No.2 Akehaba Village. (4) Manning There is one group leader and one deputy group leader for the Leading Group of EMDP, and the leading group consists of 11 members who are the main leaders of relevant IAs. PMO consists of a staff of 9: one director, one deputy director and 7 clerks. The relevant IAs consist of a staff of 18, including 11 principals and 7 clerks. (5) Working conditions The PMO is an independent office located in the Environmental Protection, Construction & Transportation Bureau of Kanas Scenic Spot. PMO is equipped with 2 laptops which satisfy the requirements for efficient work. See Table 3-2.

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Table 3-2 Staffing and Working Conditions for EMDP Agency in 2011 Name of Number of Number of Office Office equipment SN Agency principals members (yes or no) (yes or no)） 1 Leading Group 2 11 Yes, separate office Yes 2 PMO 2 7 Yes, collective office Yes 3 Relevant IAs 9 18 Yes, respective offices Yes Data resource: survey data

3.2 Capacity Evaluation of EMDP Agencies To ensure the implementation of EMDP, the Management Committee of Kanas Scenic Spot takes its responsibility for project implementation under the supervision of the Construction Bureau of Xinjiang Uygur Autonomous Region. Management Committee of Kanas Scenic Spot is mainly responsible for the implementation of the project with the support of local bureaus and relevant implementation agencies. What is found by monitoring is that the EMDP implementation is in progress by all departments concerned and the local governments have a deep understanding and rich experience regarding the EMDP. A working group is established by the mayors of Hemu Hanas Mongolian Autonomous Township and Tiereketi Township as group leaders and secretaries of affected villages as group members. Also, townships, towns and villages play an essential role in supporting the vulnerable groups. Detailed functions of EMDP agencies can be seen in Table 3-3. Table 3-3Kanas EMDP Administrative Office’s Function and Evaluation in 2012 Name of agency Functions Evaluation Fulfillment Responsible for leading, organizing, coordinating and policy making of the project, review EMDP, EMDP Leading Group implementing inner supervision and inspection, and Excellent Fulfilled making major decisions during the resettlement process. 1. Responsible for daily routine management during the construction process; 2. Responsible for internal monitoring and assessment, report EMDP progress, fund utilization and implementation quality etc. to ADB regularly; PMO Excellent Fulfilled 3. To coordinate implementation of external monitoring; 4. To coordinate and handle any conflict or problem during the implementation, coordinating and handling any complaint or grievance.

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Cont.Table 3-3Kanas EMDP Administrative Office’s Function and Evaluation in 2012 Name of agency Functions Evaluation Fulfillment Public Utility Administration under Responsible for civil administration, fulfillment of Management special measures for vulnerable groups, and Excellent Fulfilled Committee of Kanas distribution of subsidy funds. Scenic Spot Politics Section under Management With responsibility for the Women’s Federation work, women training, and arranging women to Excellent Fulfilled Committee of Kanas participate in the works. Scenic Spot Finance Bureau under Management 1. Preparing funds; Excellent Fulfilled Committee of Kanas 2. Appropriating funds. Scenic Spot 1． With responsibility for payment and Land Resource Bureau management of compensation for land requisition; under Management 2． To supervise land requisition and utilization; Excellent Fulfilled Committee of Kanas 3． To report land requisition to PMO; to Scenic Spot coordinate and handle any conflict or problem during the implementation. 1. Development of animal husbandry; Animal Husbandry 2. To establish measures for developing animal husbandry; Bureau of project Excellent Fulfilled 3. To make statistics of data related to animal counties husbandry development during the project implementation period. Bureau of Agriculture, Animal Husbandry & 1. Development of animal husbandry; Water Conservancy 2. To coordinate the relation between Kanas Scenic Excellent Fulfilled under Management Spot Management Committee, PMO and the project townships. Committee of Kanas Scenic Spot

Tourist Bureau under 1. Development of tourism; Kanas Scenic Spot 2. To provide PMO with the monitoring indicators of Good Fulfilled Management tourism development of the Scenic Spot, project townships and project villages. Committee Government of project 1. To organize public participation; 2. To coordinate and handle any conflict or problem Excellent Fulfilled townships during the project implementation. Villagers' committee of 1. To organize public participation; Excellent Fulfilled project villages 2. To participate in survey of impact of the Project. Data resource: survey data

3.3 Working Efficiency Evaluation

(1) Kanas EMDP is implemented smoothly with efforts of all departments in

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2012; and the fulfillment of each measure meets the requirements of EMDP. (2) The project management agencies complete statistics about project progress in accordance with the requirements of EMDP and the work efficiency is high.

3.4 Internal Monitoring

The internal monitoring mechanism is found to have room for improvement, and the imperfect data and documents collection and processing of each EMDP stage will bring difficulties to external monitoring. The internal monitoring report cannot be prepared in time and the working efficiency is comparatively low.

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4 Measures and Implementation Progress of EMDP

4.1 Overview of EMDP

EMDP is aiming at eliminating and mitigating the negative impact on the EM in affected areas related to the project construction and ensuring that the EM can obtain benefit from the project. The updated Ethnic Minority Development Plan of Kanas consists of mitigation measures (A), enhancing measures (B) and beneficial measures (C), all together 22 items covering poverty reduction, encouragement of women’s participation and decision making, maintenance of public sanitation and public security, development of animal husbandry and tourism, environmental protection and education, etc.

After the changing of the project, proposed measures of EMDP are not reduced, and 4 enhancing measures are added. Mitigation measures (A) are expanded from 5 measures to 10 measures, which will reflect the implementation progress of the mitigation measures thoroughly. And the original benefit-enhancing measures are divided into enhancing measures (B) and beneficial measures (C). In enhancing measures (B), 4 items are added which are related to development and enhancing the bilingual education, construction units equipped with bilingual translators, improvement of the power supply facilities and enhancing the Culture, Education and Health Service in the project village. Beneficial measures (C) are kept the same as the original beneficial measures. The updated enhancing measures could reflect the fulfillment of measures taken to improve the production and life of the affected EM which could highly improve the development of the ethnic minorities.

4.2 Fulfillment of EMDP Mitigation Measures (A)

Based on the local actuality, the measures below are taken to eliminate and mitigate the negative impact on the local EM. Mitigation measures (A) are expanded from 5 measures to 10 measures, which will reflect the implementation progress of the mitigation measures more thoroughly. See fulfillment of EMDP mitigation measures (A) in 2012 in Table 4-1.

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Table 4-1 Fulfillment of EMDP Mitigation Measures in 2012 Newly S.N. Proposed Measures added IA Actuality or not Optimized design to Management Committee of Kanas A1 minimize resettlement and No Scenic Spot, project engineering Implemented land requisition consultation and design unit Resettlement Consultation Unit, Establishment of feasible A2 No Management Committee of Kanas Implemented RP Scenic Spot Management Committee of Kanas Determination of reasonable A3 No Scenic Spot, project engineering Implemented project design plan consultation and design unit Reduction or elimination Contractors, Management A4 negative impact due to the No Implemented Committee of Kanas Scenic Spot project construction Project engineering design unit, Reduction or elimination Management Committee of Kanas A5 threats to traffic safety of No Scenic Spot (including township Implemented human and animals governments under its jurisdiction), Contractors Setting up bilingual road Contractors, Management A6 No Implemented signs Committee of Kanas Scenic Spot Contractors, Management Protection of the ecological Committee of Kanas Scenic Spot, A7 No Implemented environment Environmental Protection Bureau of Altay Prefecture Protection of public Contractors, Health Sections of A8 sanitation and population No Implemented Altay Prefecture health Management Committee of Kanas Encouragement of women's Scenic Spot (including township A9 participation and No Implemented governments under its decision-making jurisdiction), Contractors Related department of Altay Supporting the vulnerable A10 No Prefecture, Management Implemented groups Committee of Kanas Scenic Spot Data resource: survey data

4.2.1 Optimized Design to Minimize Resettlement and Land Requisition (A1) After the changing of the project, the project still has impact on land through land requisition and temporary natural grassland occupation. In the updated project plan, the permanent land requisition is 19.5 mu which is natural grassland of 5 Kazak households. The temporary natural grassland occupation is 4.5 mu with an occupancy period of 2 years. In the original project plan, the collectively-owned natural grassland of 121.3 mu is requested permanently and the temporary natural grassland occupation is 53.1 mu. It can be seen that the size of land requisition is smaller than the original plan and the impact of the local residents’ is mitigated. During the progress of the

25 External Monitoring & Assessment Report on Kanas EMDP in 2012 project design, the project has been optimized by the project engineering design unit which eliminates the negative impact on EM society, economy, production and life of local residents dramatically. (1) Road Construction No land requisition and resettlement occurred due to the road construction. The rural roads are rebuilt on the basis of the original subgrade and pavement of the village-level roads. In general, there is no impact on the production and life of local residents. (2) Landfill Construction The construction of this project is in 2012. In the process of materials transportation, the routes and the parking lot are specified. The parking order of vehicles is normalized and the damage to grassland by uncontrolled parking is reduced, the means of production of local residents is protected as well. The construction of the landfill plays a positive role in developing the animal husbandry. The living conditions of farmers and herdsmen are improved. 4.2.2 Establishment of Feasible RP (A2) During the implementation of the project, there is no housing demolition for the project. In the original project plan the land requested was all rural collectively-owned, while in the updated project plan, the permanent land requisition is natural grassland contracted by 5 Kazak households. The standard of resettlement compensation for permanent land requisition is based on Xinjiang Uygur Autonomous Region Implementation Measures for the Land Management Law of the People's Republic of China, related regulation of New Housing Valuation (2001) No. 500 by Xinjiang Uygur Autonomous Region Development and Planning Commission and Bureau of Finance. According to the regulations, compensation for grassland acquisition and compensation for resettlement is 6 times and 3 times, respectively. Local residents are satisfied with the compensation standards. 4.2.3 Determination of Reasonable Project Design Plan (A3) With the changing of the project plan, the plan of road construction in Kanas Village has been adjusted. In order to reduce the destruction of the old-growth forest,

26 External Monitoring & Assessment Report on Kanas EMDP in 2012 the planned 8 km road has been changed to 5.5 km. Other rural roads are rebuilt on dirt roads. The dirt roads are hardened and paved, and the subgrade is kept at the same height as the subgrade of the dirt road. All of them provide excellent transport convenience to local residents. The path for livestock is specified which provides great convenience to herders. There is no impact on the layout of the EM villages due to the road construction, and no housing demolition and resettlement has occurred. The location of the newly built parking lot does not have an effect on the style of the EM villages. The fence is set up on the original planned location which does not influence the overall appearance of the ethnic Village or destroy the primitive and natural style of the EM villages. 4.2.4 Reduction or Elimination Negative Impact due to the Project Construction (A4) Due to the project construction, 2 villages in Kanas Scenic Spot will be affected, namely, Kanas Village in Hemu Hanas Mongolian Autonomous Township and Tiereketi Village in Tiereketi Township. During the implementation of the project in 2012, in order to reduce or eliminate the negative impact on local EM, such as noise, dust, solid waste, drainage, damage to vegetation, etc., the following measures are taken. (1) Publicity of project and safety training to local residents before the construction. The training provided to local residents covers content of project, safety precautions and preventions, and safety measures in case of emergency. (2) Construction machines are used properly so that the residents are protected from construction noise and rolling extent on grassland is reduced. The warning signs in ethnic minority language are set up to ensure the safety of local people. (3) Publicity and training regarding the policies, the habits and customs of ethnic minorities are provided to the construction workers by the construction units. From the training, the construction workers can gain a better understanding on EM policies before construction; as a result, it will reduce the negative impact on local residents. The construction unit (Beitun First Construction and Installation Engineering Co., Ltd.) is a local unit. Since some construction workers are ethnic minorities, they have

27 External Monitoring & Assessment Report on Kanas EMDP in 2012 a good understanding of the habits and customs of ethnic minorities. During the implementation process, they get along well with local residents and no negative impact on the local residents regarding religions and other aspects has been caused. 4.2.5 Reduction or Elimination Threats to Traffic Safety of Human and Animals (A5) (1) Warning signs are set up at the entrances and exits of the construction site, intersections, turning points, high population density points and roads near the schools, which have reduced and eliminated threats to traffic safety of human and animal. See Figure 4-1. (2) Examination of animal epidemic disease is done periodically by the Administration of Animal Epidemic Prevention. Animal epidemics are under strict control, and the plans on handling animal epidemic emergencies are made.

Fig.4-1 Road Warning Signs 4.2.6 Setting up Bilingual Road Signs (A6)

Bilingual road signs were set up, such as informatory signs, cautionary signs and warning signs. According to the investigation, bilingual road signs are required by local residents, especially by drivers. The road signs are written in Chinese and Uyghur language in accordance with related rules of Xinjiang Uygur Autonomous Region. However, due to the majority of residents living along the roads being Kazak people and Mongolian people (Tuwa People), it is suggested that in accordance with

28 External Monitoring & Assessment Report on Kanas EMDP in 2012 the local situation, the road signs can be written in Chinese, Kazakh language and Mongolian language. See Figure 4-2.

Fig.4-2 Bilingual Road Sign 4.2.7 Protection of the Ecological Environment (A7)

In 2012, the Management Committee of Kanas makes an effort to protect the ecological environment and reduce destruction of old-growth forests. In the original plan, the road in Kanas Village was designed through an old-growth forest. To reduce the destruction of the old-growth forest and the vegetation, the Management Committee of Kanas makes the decision to redesign the road in order to protect the ecological environment. The planned 8 km road has been changed to 5.5 km. During the construction in 2012, tests are conducted by the Environmental Protection Bureau on the construction site. The construction cannot be started without all indicators meeting environmental protection requirements; it is required to collect the construction waste and domestic garbage, place it at a fixed place during the construction period, and clear it away in time for disposal so that the construction site is clean and neat. 4.2.8 Protection of Public Sanitation and Population Health (A8)

In order to protect the safety of the construction site and the health of construction workers and construction unit subordinate staff, inspection of the

29 External Monitoring & Assessment Report on Kanas EMDP in 2012 construction site is conducted by the Environmental Protection Bureau sporadically. The following protective measures are taken. (1) Disposal of domestic garbage. There are fixed waste containers on the construction site. Domestic garbage is collected and placed at a fixed place, and is cleared away in time for disposal so that the environmental sanitation on the construction site is clean. Moreover, in the construction area, temporary public toilets need to be built based on the need; water spray vehicles are used for dust prevention in order to prevent dust pollution. (2) The physical examination of the construction workers. Before the construction, physical examination of construction workers is organized by Bureau of Health to prevent the spreading of infectious diseases. During the construction, in order to keep the construction site sanitary and prevent the spreading of diseases, disinfection and sterilization is conducted in the construction area monthly. In every construction site, a doctor works for the health of construction workers. Commonly used medicine is prepared for emergency treatments. Health training is provided for construction workers which will arouse their attention to their personal hygiene. (3) Health of residents and tourism public sanitation in the project area. Requirements for protecting public sanitation and behavioral norms of tourists are written on the scenic spot admission ticket to ensure that the public sanitation is in good condition. Also, a reminder is printed on the ticket to remind the tourist to respect and protect the local herders and the livestock. There are waste containers on both sides of the roads for waste disposal of tourists in the scenic spot. Waste collectors transfer the garbage to the garbage station, after collection, the garbage will be transferred to the landfill for disposal by the garbage collection trucks periodically. (See Figure 4-3 and Figure 4-4)

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Fig.4-3 Waste container in the scenic spot

Fig.4-4 Garbage collection truck 4.2.9 Encouragement of Women's Participation and Decision-making (A9)

In order to ensure the women’s participation and decision-making in the project, and to improve social and economic status of women, Buerjin County, the Management Committee of Kanas and township governments concerned decide to take relevant measures to solve a series of women’s problems in the project area. (1) 2.95 million loan is distributed for women’s entrepreneurship. For the sake of improving the management level of local women, 2.95 million subsidized loan is distributed by Buerjin County Credit Union and Labor and Social Security Bureau to

61 households (all EM) which needs to be paid off within 2 years. The training regarding use of the loan is provided to the women in Buerjin County.

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(2) Local women are used as waste collectors in the scenic spot. The Scenic spot environmental sanitation team recruits unemployed women and young people to maintain the environment in the scenic spot. In 2012, more than 300 employment opportunities are provided, mainly to women; the salary of these workers is 2,300 yuan monthly. (3) Sales stands are provided to local women to sell their handicrafts. A shopping street is provided free of charge to local women to sell the handicrafts of their families; meanwhile, women are encouraged to provide farmhouse catering services, which improves women’s social and economic status and income level.

Fig. 4-5 Shopping street provided to local women free of charge (4) Grant fund of ADB. In order to keep women’s rights and development in Kanas Scenic Spot, ADB grants $150,000 dollars of special funds. 4 projects are provided to local women, namely, women's health check and training, establishment of Women Home, women's empowerment training and ADB’s petty loans for women. The effect of the activities is good with 1,407 women participating. These project activities provide convenience for the development and improvement of physical conditions of the local women. See details in Table 4-2.

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Table 4-2 Details of Women’s Project Activities Women's Time Location Organizer Participation Content and effect of the activity (Unit: Person) Hemu, Kanas Investigation and publicity before the 1998.8 CUI Yanhu 47 and Baihaba implementation of the project Hemu, Kanas, CUI Yanhu, 1998.9 Baihaba and PMO and 300 Health check and training Tiereketi Medical team Hemu, Kanas, 1998.11 Baihaba and PMO 45 Selection of trainees among women Tiereketi Hemu, Baihaba 1999. PMO Purchase of medical equipment and Tiereketi Hemu, Kanas, Photography training and experience 1999.9 Baihaba and PMO 37 sharing Tiereketi Collecting folk music, making CD, and Hemu and PMO and 1999.9 35 playing it to students by schools in the Kanas LIU Xu scenic spot Women 2010.9 Baihaba 42 Characteristic products marketing Home Urumqi 2010.3 Vocational PMO 20 Women's empowerment training University CUI Yanhu Content of project implementation 2011.2 Buerjin County 15 and PMO training in management training class Hemu, Kanas, 2011.2 Baihaba and PMO 140 Chinese training Tiereketi Hemu, Kanas, 2010- Women Baihaba and 137 Photography activities 2011 Home Tiereketi Publicity of project implementation of Hemu, Kanas, ADB grant fund, mobilizing women to Women 2011.3 Baihaba and 360 increase the sense of participation, Home Tiereketi collecting feedbacks and discussion on the content of the future project Embroidery training and exchange of 2011. Buerjin County PMO 32 successful methods Joining in 3 Unions, namely, Hemu, Kanas, Halaqiaohe agricultural by-products, 2011.5 Baihaba and PMO 97 Yizan hand embroidery and Hemu Tiereketi black bee breeding. The per capita income is 10,000 yuan. Hemu, Kanas, 2011.11 Baihaba and PMO 30 Training course about petty loans Tiereketi Hemu, Kanas, Distribution of 120,000 yuan petty 2011.11 Baihaba and PMO 24 Tiereketi loans Hemu, Kanas, Visiting women in the scenic spot and CUI Yanhu 2012.1 Baihaba and 46 summary of the effect of the project and PMO Tiereketi implementation Data resource: PMO

33 External Monitoring & Assessment Report on Kanas EMDP in 2012

4.2.10 Supporting the Vulnerable Groups (A10) Based on the investigation in 2012, thanks to the development of tourism in Kanas and the Management Committee of Kanas’s active role in social welfare work, there are virtually no poor households in Kanas area according to national standards. In 2012, the main source of local residents’ income is the subsidy from admission ticket income provided by the Management Committee of Kanas Scenic Spot; in 2012, the standard is 5,000 yuan/person-year in Hemu Village, 4,000yuan/person-year in North Akehaba Village and South Akehaba Village, and 10,000yuan/person-year in Kanas Village. The income data shows that the residents in Kanas scenic spot have adequate food and clothing. However, the Management Committee of Kanas takes into account that due to the project construction the basic living expenses might be increased, and therefore supports the households with lower income. According to the data, there are 833 households with low income in 2012 (See details in Table 4-3). Based on the investigation, the main reasons for these low-income households in the five villages of the Project Area are high expenses on family members’ education and medical services, in addition to lack of labor force, no means of production, weak economic accumulation, lower educational level leading to fewer channels to become more prosperous; all those reasons lead to the low income. In order to improve the income of low-income families, the following measures are taken by the Management Committee of Kanas: (1) Training for raising the knowledge level of local residents. The Management Committee of Kanas and township governments provide training to poor households covering education on thanksgiving, tourism etiquette, grassland law, forest law, animal and plant protection law and training on health and epidemic prevention aspects. The training will help the poor residents change their way of thinking, improve their knowledge level and diversify their source of income. (2) Enhancing skill training. For the purpose of raising the income level of low-income residents, the Management Committee of Kanas and township governments organized a cooking course, horse training, technical training on mushroom and fungus cultivation and handicraft training. 5 rural entrepreneurial

34 External Monitoring & Assessment Report on Kanas EMDP in 2012 leaders are selected to participate in the training for professional knowledge and skills of beekeeping in Urumqi. (3) Providing material guarantee. The Management Committee of Kanas and the Poverty Alleviation Office offer photovoltaic solar energy, good-quality livestock and houses for living to low-income households. Table 4-3Low-income Households in Project Area in 2012 Unit: person, yuan/person-year Hemu Township Tiereketi Township South North Item Hemu Kanas Tiereketi Akehaba Akehaba Village Village Village Village Village Number of HHs (HH) 166 30 14 25 109 Number of Total 664 121 63 109 493 Poverty persons Of which: EM 664 121 63 109 493 Per capita net income of EM 5,800 12,500 4,800 4,700 5,300 Number of HHs (HH) 34 35 3 4 15 Number of Total 102 122 3 5 17 Handicap persons Of which: EM 102 122 3 5 17 Per capita net income of EM 5,100 10,000 4,600 4,400 5,200 Number of HHs (HH) 28 21 0 0 0 Mainly Number of Total 86 74 0 0 0 women persons Of which: EM 86 74 0 0 0 Per capita net income of EM 5,600 11,000 Number of HHs (HH) 4 7 1 1 6 The old Number of Total 4 7 1 1 6 alone persons Of which: EM 4 7 1 1 6 Per capita net income of EM 4,800 9,000 4,200 4,200 4,300 Data source: Environmental Protection & Construction Bureau of Kanas Scenic Spot Management

Committee

35 External Monitoring & Assessment Report on Kanas EMDP in 2012

4.3 Fulfillment of EMDP Enhancing Measures (B)

During the implementation of the project, to bring a variety of benefits to most ethnic minorities, enhancing measures are taken, namely, the improvement of rural roads to promote stable development of local tourism and animal husbandry, improvement of rural environmental sanitation, development of culture, education and health service, strengthening the skill training, improvement of infrastructure in the project area and improvement of social services. Compared with the original benefit-enhancing measures, there are 4 measures added: enhancing bilingual education, construction units equipped with bilingual translators, improvement of the power supply facilities and enhancing the culture, education and health service in the project village. Details of fulfillment can be seen in Table 4-4. Table 4-4Fulfillment of EMDP Enhancing Measures in 2012 Newly S.N. Proposed Measures added IA Actuality or not Management Committee of Kanas B1 Development of tourism No Scenic Spot, Tourist Bureau of Implemented Altay Prefecture Management Committee of Kanas Development of animal B2 No Scenic Spot, Animal Husbandry Implemented husbandry (Agriculture) Bureau of Altay Prefecture Management Committee of Kanas Strengthening the skill B3 No Scenic Spot, and the township Implemented training governments under its jurisdiction Enhancing and Management Committee of Kanas B4 development of bilingual Yes Scenic Spot, Education Bureau of Implemented education Altay Prefecture Construction units B5 equipped with bilingual Yes Contractors Implemented translators Improvement of the Management Committee of Kanas B6 Yes Implemented power supply facilities Scenic Spot Improvement of Management Committee of Kanas B7 No Implemented environmental protection Scenic Spot Enhancing the culture, Management Committee of Kanas B8 education and health Yes Scenic Spot, and the township Implemented service governments under its jurisdiction Strengthening public Management Committee of Kanas B9 participation No Scenic Spot, and the township Implemented governments under its jurisdiction Data resource: survey data

4.3.1 Development of Tourism (B) The project affected area is Xinjiang Kanas Scenic Spot (5A National Tourist Attraction). From the point of view of regional socio-economic development and rural

36 External Monitoring & Assessment Report on Kanas EMDP in 2012 development, the development of tourism is an important factor to improve the local living standards in the project area. (1) Up to Oct.10th, 2012, a total number of 1,068,300 tourists visited Kanas Scenic Spot, an increase of 17.6% over the previous year; income from tourism is 112 million, an increase of 13.7%. Kanas Scenic Spot is successful in creating a National Civilized Unit with the honor of the National Low-Carbon Tourism Demonstration Area, Most Popular Travel Destinations in 2011 and Xinjiang's first national Card Accessibility Scenic Spot. (2) Kanas National Geopark was named by the Ministry of Land and Resources for the science base of land and resources. Kanas Ice and Snow Festival won the title for the Most Unique Ethnic Festivals. Hemu Hanas Mongolian Autonomous Township is named Ski Town of Xinjiang and Hemu Village is named China's Top 10 Most Attractive Leisure Villages which further enhances the popularity and influence of the scenic spot. (3) The Consultation for Building a Harmonious Scenic Spot is organized by Kanas Scenic Spot with Heaven Lake of Tian Shan, Grape Valley, Narat and Sayram Lake. Kanas Scenic Spot signed a Friendship Agreement with Jinyuetan, Jilin Province and Yabuli, Heilongjiang Province. Their delegation participated in the International Tourism and World Heritage Travel Expo, the 1st Eurasia Expo, the Winter Expo, China East-West Cooperation and Investment Trade Fair and other tourism promotion activities. With more than 20 well-known scenic lakes, it initiated the establishment of the China Lake Tourism Alliance. It has been elected as a council member of the China Tourist Attractions Association, as well as the Professional Ethnic Festivals Committee of China Union of Anthropological and Ethnological Sciences. Also, Kanas Creative Base for Xinjiang Oil Painting Society was formally established. There are many competitions held there, for instance, crossing Kanas Lake longitudinally challenge of ZHANG Jian and his team, 2011 Xinjiang Kanas paragliding club players race as well as an International Paragliding Tournament, the 11th Kanas Golden Autumn International Film Festival, which attract CCVT and other mainstream media attention to make tracking reports.

37 External Monitoring & Assessment Report on Kanas EMDP in 2012

(4) Improving media publicity. With the theme of ‘the pure land of the world – Kanas, Xinjiang’, an advertisement of Kanas is shown on CCTV 1 and News Channel for 1 month. Accumulatively, on CCTV there would be 10 feature films, 464 news reports (times), a total of more than 700 minutes. On the Internet, newspapers and magazines, there are over 1,300 articles and pictures about Kanas published. Poems on Kanas, Xinjiang, by the Kanas Poetry Society are carefully prepared and successfully completed, as well as various study tours, such as a study tour of Guangdong most powerful traveling salesmen and mainstream media, a study tour of Southern Airlines to Kanas. All of them provide a full range of Kanas winter tourism promotions. (5) Holding competitions. The 5th Kanas Ice and Snow Tourism Festival and the 4th Hemu Cup Ancient Style Snowboard Hunting Game were held and Kanas Ancient Style Ski Team is established. In the 2011, herders Maliqin and Tuoheda of Hemu Hanas Township won the top 2 championships in the vertical racing event of the Asian Ski Mountaineering Competition which was held by the Asian Ski Mountaineering Federation and Chinese Mountaineering Association. (6) Explore the essence of tourism culture. A series of books, Soul of Kanas, Ode of Kanas, Beauty of Kanas, have been completed and Love Song of Kanas has been published. 4.3.2 Development of Animal Husbandry (Agriculture) (B2)

Due to the special location of Kanas Scenic Spot, the main industry there is animal husbandry which is also a main source of local residents’ income. In order to improve the development of local animal husbandry, the following measures are taken, (1) Providing means of production for animal husbandry. A fund of 0.8 million yuan is appropriated by the Poverty Alleviation Office, Buerjin County for livestock fund specifically. In accordance with the provision, more than 200 good-quality livestock are purchased and distributed to the herders (See Fig.4-6). 861.4 ton fodder and 139 thousand cubic meters forage are in stock.

38 External Monitoring & Assessment Report on Kanas EMDP in 2012

(2) Epidemic prevention in Kanas Scenic Spot needs to be strengthened. The livestock epidemic prevention system has not been established yet. The epidemic prevention work should be included in the development plan of animal husbandry in Kanas Scenic Spot.

Fig.4-6 To distribute good-quality livestock to local residents 4.3.3 Strengthening the Skill Training (B3)

In order to improve the life standard of local residents and lead the local residents to join the tourism development of Kanas Scenic Spot, skill training is a priority for the Management Committee of Kanas and each village. The enrichment of the local residents is closely related to the development of the Kanas Scenic Spot. In 2012, 330 persons from 330 households participated in skill training (see Table 4-5), and the training effect was excellent. In 2012, the problems of unemployment were solved and family income was increased in Kanas Scenic Spot as a result of skill training. It is suggested that after training a technical assistance station should be built in the scenic spot to help local residents solve the specific problems encountered during technical implementations. (1) Technical training on mushroom and fungus cultivation is provided. Technical staff from the Agricultural Technique Station is invited by township governments to provide training on mushroom and fungus cultivation to local EM residents, especially women, in the project affected area. In this way, the social and

39 External Monitoring & Assessment Report on Kanas EMDP in 2012 economic status of women and their knowledge level, as well as their income, can be improved. (2) Tourism etiquette and horse training. The local residents have a strong desire to participate in the tourism industry, however, they lack experience in tourist services and the showing of ethnic customs. Thus, the Management Committee of Kanas organized professionals to provide training to residents who deal with tourism to ensure that local residents engage in tourism in order and provide excellent travel services; the training covers travel sanitation, horse rental, travel guides, catering, accommodation and the showing of national culture. (3) Labor skills training. The labor skill training needs to be emphasized. A total labor force of more than 800 were trained and transferred, nearly 3.2 million yuan workforce transfer income has been achieved. (4) The folk handicraft making training. Folk artists and relevant institutions are hired to provide training on folk art and folk handicraft making. 50 persons participated in the training and all of them are women EM. Table 4-5 EMDP-funded Skill Trainings in 2012 People received training Training Type of Training (all EM) cost Total Male Female (104yuan) Catering training 100 80 20 6 Horse training 50 50 0 3 Technical training on mushroom and fungus 80 0 80 4 cultivation The folk handicraft making training 50 0 50 5 Tourism etiquette training 40 10 30 2.5 Epidemic prevention training 10 4 6 1 Data resource: survey data

4.3.4 Enhancing and Development of Bilingual Education (B4)

According to the investigation, there is a shortage of bilingual talent in Kanas Scenic Spot, who are particularly welcomed by employers, especially government departments and tertiary industry. Therefore, the schools of Kanas Scenic Spot have started bilingual education (See Fig.4-8). More than 4.5 million yuan is invested to

40 External Monitoring & Assessment Report on Kanas EMDP in 2012 build bilingual kindergartens in Tiereketi Township and Hemu Hanas Township. The kindergarten has been completed and will be put into use in 2013 (See Fig.4-7). The construction of the project attracts a large number of tourists, which requires a high standard of local service personnel and the basic requirement for scenic staff is to be bilingual. Therefore, it is suggested that the Management Committee of Kansa Scenic Spot expand channels to attract more talent and enhance the teaching resources for bilingual education. Meanwhile, bilingual training could be provided to the current teachers.

Fig.4-7 Bilingual Kindergarten in Tiereketi Township

Fig.4-8 Mongolian students are having class in the Activity Center

41 External Monitoring & Assessment Report on Kanas EMDP in 2012

4.3.5 Construction Units Equipped with Bilingual Translators (B5)

In 2012, the landfill construction provides few employment opportunities and has little impact on the local residents. The location of the landfill is far from the local residential area, thus there are no commercial services, catering, accommodation and other services provided. The local governments and construction units pay attention to the understanding of local habits and customs. Before construction, publicity and training regarding the policies, the habits and customs of ethnic minorities are provided to the construction workers to make them understand ethnic policies; therefore, the negative impact on the local residents is reduced. The construction unit (Beitun First Construction and Installation Engineering Co., Ltd.) is a local construction unit. Since some construction workers are ethnic minorities, such as Kazak, Mongolian and Uygur, they have a good understanding of the habits and customs of ethnic minorities. During the implementation process, they get along well with local residents and there is no communication problem. 4.3.6 Improvement of the Power Supply Facilities (B6)

In 2012, Hemu Village of Hemu Hanas Mongolian Township is supplied with a power supply. The Management Committee of Kanas invested more than 25 million yuan to set up 35KV power transmission and transformation from Jiadengyu to Hemu, and a power distribution cable of 10KV and 0.4KV in Hemu Village. All of them are put into operation in 2012 (See Fig.4-9 and Fig.4-10). In 2012, the project of 35KV power transmission and transformation is under construction which will be put into operation in 2013. This indicates that the overall coverage of the power grid is achieved.

42 External Monitoring & Assessment Report on Kanas EMDP in 2012

Fig.4-9 Electrical Substation in Hemu Village

Fig.4-10 Satellite Earth Antenna for Household Use in Hemu Village 4.3.7 Improvement of Environmental Protection (B7)

Environmental protection is a prerequisite of the project implementation. Therefore, protecting the environment of Kanas scenic spot is the first requirement of every project; also it is the construction workers’ bounden duty. Environmental protection is the prerequisite of the project implementation which is in accordance with the national laws and regulations. Environmental protection measures are implemented strictly according to the approved assessment report on

43 External Monitoring & Assessment Report on Kanas EMDP in 2012 environmental impact of the project. The contents of the Assessment Report on Environmental Impact are formulated and implemented. There is no negative impact on the environment caused by the project implementation, and the environment is protected. In 2012, the Management Committee of Kanas makes an effort to protect the ecological environment and reduce destruction of old-growth forests. In the original plan, the road in Kanas Village was designed through an old-growth forest. To reduce the destruction of the old-growth forest and the vegetation, the Management Committee of Kanas has decided to redesign the road in order to protect the ecological environment. The planned 8 km road has been changed to 5.5 km. 4.3.8 Enhancing the Culture, Education and Health Service (B8)

The project construction is in the Kanas Scenic Spot which is located in the remote area of Altay Prefecture with weak infrastructure. Local government intensifies improving the infrastructural construction and attaches importance to culture, education and health service. Only with the development of these, can the personal qualities of residents be improved. Various works are carried out smoothly under the great support of local residents. Main measures taken are as followed, (1) Early childhood Education. The Management Committee invested more than 4.5 million yuan to build bilingual kindergartens in Tiereketi Township and Hemu Hanas Township which will improve the children’s pre-school education and lay a solid foundation for culture and education. (2) Distribution of subsidy to local university students. The Management Committee of Kanas has distributed 312,000 yuan as tuition subsidy to 105 local university students from farmers and herders families. Local teachers and staff of health services are sent for training in other cities and the travel expense of 53,000 yuan has been reimbursed. (3) To sign cooperative schools for educating children of local farmers and herders. A long-term training agreement was signed between the Management Committee of Kanas and Guangdong Experiment Technical School. The first batch of

44 External Monitoring & Assessment Report on Kanas EMDP in 2012

23 students have been there for a three-year study and each student has received a living expense subsidy with the standard of 2,500 yuan/year provided by Kanas Scenic Spot. (4) Improvement of medical service. Management Committee of Kanas invested more than 1.6 million yuan to build a Health Center in Hemu Hanas Township. The rural health service network is improved gradually and the New Cooperative Medical Scheme runs well with a farmers and herders’ participation rate of 100%. The reimbursement of medical expenses for farmers and herders is 776,000 yuan throughout the year. In order to improve the local residents’ physical fitness and educational level, various activities are held, for instance, basketball matches, Red Song Chorus, sports meetings for herders, etc. 4.3.9 Strengthening Public Participation (B9)

During the implementation of the Project, effective and transparent channels for complaints and grievances are established. There is no valid complaint or grievance during the implementation period in 2012. The Leading Group of EMDP publicizes the necessity of the project and the policy of the resettlement plan via various channels. In 2012, the Leading Group of EMDP conducted twice an investigation of households to understand the current local situation, their production and livelihood after project implementation and the needs of residents. Local residents are very satisfied with the project since their living environment has been improved. Meanwhile, their income has been increased.

4.4 Fulfillment of EMDP Beneficial Measures (C)

The benefit of the implementation of the project is mainly reflected in the following three aspects: (1) Use of local building materials and transportation resources; (2) Absorbing the local labor force; (3) Employment opportunities provided in catering and other service industries. There is no extra measure added to the original beneficial measures. The implementation of the beneficial measures can

45 External Monitoring & Assessment Report on Kanas EMDP in 2012 reflect the local socio and economic improvement obtained due to the project. See details in Table 4-6. Table 4-6Fulfillment of EMDP Beneficial Measures in 2012 Newly S.N. Proposed Measures added or IA Actuality not Use of local building Management Committee of C1 materials and No Kanas Scenic Spot, contractor, Implemented transportation resources and villagers in the project area Management Committee of Absorbing the local labor C2 No Kanas Scenic Spot and Implemented force contractor Employment opportunities Management Committee of C3 provided in catering and No Kanas Scenic Spot and villagers Implemented other service industry in the project area Data resource: survey data

4.4.1 Use of Local Building Materials and Transportation Resources (C1) There is no production of cement, construction aggregate and other building materials in the project construction area, Kanas Scenic Spot. Protection of local ecological resources is the most important concern, therefore large-scale excavating of soil and construction aggregate is not allowed. The possibility of helping local residents gain benefit through the use of local building materials is small, and there is almost no income for them. Construction units rent transportation vehicles from local residents to transport building materials. The project work which is implemented in 2012 is a landfill in Haliutan. All the main construction parts have been completed and the landfill will be put into use in 2013. Use of the building material (See Table 4-7) has almost no influence on residents’ income. However, it would raise the local waste disposal capability and improve the local ecological and living environment.

46 External Monitoring & Assessment Report on Kanas EMDP in 2012

Table 4-7 Use of Local Building Materials and Transportation Resources in Landfill Construction in 2012 Item Quantity Amt(104yuan) 1、Local Enterprises which provide building materials 5 2、Local transportation vehicles rented by construction units 8 8 3、Use of locally produced building materials — — （1）construction aggregate(m3) 360 5.4 （2）cement(ton) 320 16.96 （3）manhole cover (set) 10 0.076 （4）common brick (104 pieces) 36 43.2 Data resource: survey data

4.4.2 Absorbing the Local Labor Force (C2) During the implementation of the project construction, the quality of the project is guaranteed and the local labor force is absorbed at the same time, which improves the local employment situation and local income. During the construction of the landfill in 2012, 13 workers are absorbed from the local labor force, including 3 vehicle mechanics and 10 unskilled workers; all of them are EM male workers. The project construction requires a lot of physical strength; therefore, local women are not absorbed in the project construction. The implementation of the project only improves 13 families’ income and has little effect. See details in Table 4-8. Table 4-8 Contractors absorb local labor force to participate in project construction in 2012 Unit: person,yuan/month Number of workers and its proportion Salary EM Average salary Type Male Female EM male Average Total female of female workers workers workers salary workers workers Vehicle 3 3 0 3 0 6,000 0 mechanic Unskilled 10 10 0 10 0 2,200 0 worker Data resource: survey data

4.4.3 Employment Opportunities Provided in Catering and Other Service Industries (C3) In 2012, the implementation of the Haliutan landfill construction has little impact on the local catering and service industry, due to the location of the construction site being far from the scenic spot. Construction units have built temporary houses and

47 External Monitoring & Assessment Report on Kanas EMDP in 2012 canteens on the construction site to provide catering and accommodations to workers. Therefore, there is no influence on local catering and other service industries’ revenue.

4.5 Progress of EMDP Fund Utilization

According to the updated EMDP, the fund is provided mainly by the resettlement investment and investment of the scenic spot development plan. It is planned to invest 3.31 million yuan in the updated EMDP. 2.5 million yuan is invested for the Project in 2012 and 75.53% of the Plan is fulfilled; see details in Table 4-9 for fund utilization of EMDP in 2012. Table 4-9 Progress of EMDP Fund Utilization in 2012 Estimated Actual Actual amt. to S.N. Measure Investment investment proposed amt. (104yuan) (104yuan) (%) A Mitigation Measures 283 217 76.68 Optimized design to minimize A1 1 1 100.00 resettlement and land requisition A2 Establishment of feasible RP 6 6 100.00 Determination of reasonable project A3 10 10 100.00 design plan Reduction or elimination negative A4 30 10 33.33 impact due to the project construction Reduction or elimination threats to A5 10 5 50.00 traffic safety of human and animals A6 Setting up bilingual road signs 6 2 33.33 Protection of the ecological A7 200 100 50.00 environment Protection of public sanitation and A8 5 3 60.00 population health Encouragement of women's A9 participation and decision-making 15 80 533.33 A10 Supporting the vulnerable groups

Cont.Table 4-9 Progress of EMDP Fund Utilization in 2012 S.N. Measure Estimated Actual Actual amt. to

48 External Monitoring & Assessment Report on Kanas EMDP in 2012

Investment investment proposed amt. (104yuan) (104yuan) (%) B Enhancing Measures 15 24 160.00 B1 Development of tourism / Development of animal husbandry B2 / (Agriculture) B3 Strengthening the skill training 5 21.5 430.00 Enhancing and development of B4 / bilingual education Construction units equipped with B5 8 1 12.50 bilingual translators Improvement of the power supply B6 / facilities Improvement of environmental B7 / protection Enhancing the culture, education and B8 / health service B9 Strengthening public participation 2 1.5 75.00 C Beneficial Measures 33 9 Use of local building materials and C1 30 3 10.00 transportation resources C2 Absorbing the local labor force 3 6 200.00 Employment opportunities provided in C3 / catering and other service industries Total 331 250 75.53 Data resource: Management Committee of Kanas Scenic Spot, ADB-financed PMO

4.6 Summary of Effect and Monitoring Indicators of EMDP

The monitoring indicators of EMDP (updated) are reflected from 5 mitigation measures and 6 benefit-reinforcing measures. See Table 4-10 for fulfillment and statistics of major monitoring indicators in 2012.

Table 4-10 Implementation Effect and Monitoring Indicators of EMDP Mitigation Measures and Benefit-enhancing Measures in 2012

49 External Monitoring & Assessment Report on Kanas EMDP in 2012

Description of monitoring indicators S.N. Proposed measures Implementation effect and result A Mitigation Measures - - To optimize design (1) To avoid EM residents’ (1) No land acquisition during the plan, minimize land loss due to the land implementation period and no related impact. resettlement and land acquisition. (2) No grievance or complaint about the A1 requisition, and prepare (2) More suitable for local land acquisition. feasible RP. actuality and negative impact on EM is reduced. To set up bilingual road (1) To guarantee traffic (1) Annual traffic accident rate is 0 within signs and decrease or safety of local residents. the construction area. eliminate threat to (2) To improve the living (2) To provide education on traffic safety A2 traffic safety of human standard of the to teachers and students, the large-scale one and animals. EM residents. twice. Traffic safety tips are provided after school every day. To decrease or No impact on environment in (1) The complaint rate about construction eliminate impact on the construction area; and no disturbance is 0 within the construction area; environment and public threat to local EM residents’ (2) Typical disease rate within the project A3 health during the health. area is 0; construction period (3) 100% of constructors know the habits and customs of EM very well. To determine a To ensure the development of The satisfaction rate of local residents on the reasonable project the local tourism industry. design plan is 100%. A4 design plan and maintain EM style of the villages. (1) The poverty rate is 0. To support vulnerable - (2) The annual income per capita of A5 groups. low-income farmers and herders is above 4000 yuan. Benefit-reinforcing E Measures - - (1) To provide employment (1) The quantity of skilled workers is 3 opportunities to local labor with the average monthly wage of 7,000 To absorb local labor force. yuan; the quantity of unskilled workers is 10 E1 force in project (2) To improve local with the average wage of 2,200 yuan. construction residents’ income. (2) No increase in the quantity of hotels (3) To improve the living and restaurants during the construction standard of local residents. period. (1) The livestock number per household is To expedite 18. E2 development of animal - (2) The average sale price is 2,800 husbandry yuan/capita. (1) To improve health level (1) To provide free health check to women. of women. (2) Women’s income and their status have To encourage (2) To improve the status of been improved dramatically. E3 participation of women women in the family. (3) 230 women are employed during the into the project (3) To increase construction period as waste collectors. employment rate of women. (1) To provide employment (1) Up to Oct.10th 2012, there were opportunities to local EM 1,068,300 tourists that had visited the scenic residents. spot. The revenue from admission tickets To expedite (2) To increase the income was 112 million. E4 development of tourism of local EM residents. (2) To provide employment opportunities (3) Improve the living to local residents and increase their income. standard of local EM residents. To make the local EM to (1) Number of persons receiving training is participate in tourism 330, the male to female ratio is 100:129. Skill training activities and improve their (2) The training includes horse training for E5 income and the quality of practitioners, travel service, cultivation their life. technique, etc. (3) Training fund is 215 thousand yuan. To make local residents (1) Leading Group of EMDP conducted familiar with the project, twice an investigation of households. Public participation participate and supervise the (2) There are no valid problems encountered. E6 project, so that they are satisfied with the implementation of the project. Data resource: survey data

50 External Monitoring & Assessment Report on Kanas EMDP in 2012

5 Production and Livelihood of EM Sample HHs in Project Area

In 2012, in order to understand the impact of the project on the local residents, a survey of 240 HHs is conducted in the Project Area, of which, there are 224 EM sample HHs accounting for 93.33%.

5.1 Basic Information on Sample HHs in Project Area

5.1.1 Population and Labor Force of Sample HHs According to the survey aiming at 240 HHs in the Project Area in 2012, there are 224 EM sample HHs accounting for 93.33%, which verifies the representativeness of EM. The average number of the population per sample HH is 4 persons. See details in Table 5-1. Table 5-1 Demographic Situation of Sample HHs in Project Villages in 2012 Unit: person, person/HH North Akehaba South Akehaba Tiereketi Hemu Kanas Indicator Village Village Village Village Village Total population 115 190 168 278 97 Number of HHs 33 52 44 82 29 Persons per HH 3.48 3.65 3.82 3.39 3.34 Labor force 48 65 58 102 42 Labor force per HH 1.45 1.25 1.32 1.24 1.45 5.1.2 Land owned by Sample HHs The project area is in Kanas Scenic Spot. The majority of local residents are Kazak people and Mongolian people who live mainly on animal husbandry. Animal husbandry is their most important method of production. Thus, most of them own only natural grassland; only few plant crops of short growing period for the purpose of self-consumption. See details in Table 5-2.

Table 5-2 Land Ownership of Sample HHs in Project Villages in 2012 Unit: mu North Akehaba South Akehaba Tiereketi Hemu Kanas Indicator Total Village Village Village Village Village Area of arable land 0 79 307 50 0 436 Area of woodland 0 150 0 370 0 520 Area of grassland 355 1,284 1,539 7,025 285 10,488 Area of wasteland 55 0 0 0 0 55 Total 410 1,513 1,846 7,445 285 11,499

51 External Monitoring & Assessment Report on Kanas EMDP in 2012

5.1.3 Housing Conditions of Sample HHs According to the survey, in terms of housing conditions of the sample households in the Project Area in 2012, the HHs in the project area are of excellent housing condition. The average dwelling area per HH is more than 100 m2 and the average dwelling area per person is around 30 m2. See details in Table 5-3. Table 5-3 Housing Conditions of Sample HHs in Project Villages in 2012 Unit: m2, m2/HH, m2/person Total Dwelling Dwelling area House Project Village Wood-earth Yard dwelling area area per HH per capita sites Hemu Village 13,324 162.49 47.93 13,324 6,500 9,563 Tiereketi 5,702 129.59 33.94 5,702 2,018 7,642 Village South Akehaba 5,369 103.25 28.26 5,369 2,987 10,253 Village North Akehaba 4,129 125.12 35.90 4,129 2,409 5,946 Village Kanas 3,109 107.21 32.05 3,109 562 3,129 Total 31,633 - - 31,633 14,476 36,533

5.1.4 Living Conditions of Sample HHs In 2012, thanks to the efforts of the government at different levels, the residents in the Project Area see great improvement in their living conditions. Hemu Village is supplied with a power supply. All the 300 HHs in Tiereketi Village have access to water supply free of charge in 2012, due to the fulfillment of water supply & drainage work of the ADB project. The road construction work of the ADB project provides transport convenience in the villages and the villages can have access to a bus service. Details can be seen in Table 5-4.

52 External Monitoring & Assessment Report on Kanas EMDP in 2012

Table 5-4Residence Conditions of Sample HHs in Project Villages in 2012 Unit: HH South North Hemu Tiereketi Kanas Item Akehaba Akehaba Village Village Village Village Village Tap water 78 44 22 12 29 Drinking Well water 2 0 10 15 0 water River & ditch water 2 0 20 6 0 Water logging water 0 0 0 0 0 Access to water supply & drainage 82 44 0 0 29 Access to power supply 82 44 0 0 29 Access to fuel gas supply 0 0 0 0 0 Heat supply 0 0 0 0 0 Access to CATV 12 0 0 0 29 Access to Internet 8 3 0 0 8 Independent kitchen 76 38 21 18 27 Independent toilet 80 42 16 8 29 Access to bus service 82 44 52 33 29

5.1.5 Convenience for Sample HHs Living infrastructure in the project area has been improved in 2012. In Hemu Village, Kanas Village, South Akehaba Village and North Akehaba Village, the hospitals, schools, shopping areas and transportation stations are within 1km of the villages. See details in Table 5-5. Table 5-5 Living Convenience of Sample HHs in Project Area Unit: km South North Living Indicator Hemu Tiereketi Akehaba Akehaba Kanas Condition Village Village Village Village Village Average distance to the 0.5 0.3 0.2 0.5 0.2 nearest village clinic Medical Average distance to the service nearest township clinic 0.5 0.3 0.2 0.5 70 Average distance to the nearest county clinic 173 72 110 110 120

Average distance to the 0.8 0.6 － － — nearest kindergarten Average distance to the Education nearest primary school 0.5 0.4 0.5 0.3 0.5 Average distance to the nearest middle school 0.5 0.4 1 0.6 12

Average distance to the 0.3 0.1 0.1 0.2 0.2 nearest shop Shopping Average distance to the nearest vegetable 0.5 0.6 0.2 0.3 0.2 market Average distance to the Traffic nearest bus stop 0.8 0.5 0.4 0.3 0.5

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5.2 Production of Sample HHs in Project Area

5.2.1 Livestock owned by sample HHs According to the survey aiming at 240 sample HHs in 2012, animal husbandry is the leading industry for the residents in the project area, consisting mainly of cattle, sheep and horses. Few residents raise poultry. See details in Table 5-6. Table 5-6 Livestock of Sample HHs in Project Area Unit: capita, capita/HH North Akehaba South Akehaba Tiereketi Hemu Kanas Indicator Village Village Village Village Village Total Livestock owned 862 1,465 1,267 1,396 382 5,372 Livestock 10 42 33 38 10 133 purchased Livestock per HH 26.12 28.17 28.80 17.02 13.17 22.38 Of which: cattle 293 382 298 469 189 1,631 Sheep 269 465 587 305 103 1,729 Horses 185 325 224 376 45 1,155 Donkeys 56 69 98 45 3 271 Poultry 59 224 60 201 42 586

5.2.2 Vehicles of agricultural use owned by sample HHs The survey data shows that the vehicles of agricultural use owned by sample HHs in the Project Area in 2012 are the same as those in 2011 and 2010 which means that the vehicles for agricultural use owned by local residents have met the local production requirement. See details in Table 5-7. Table 5-7 Production Means Sample HHs Possess in Project Area in 2012 Unit: vehicle, pcs. North Akehaba South Akehaba Tiereketi Hemu Village Kanas Village Village Village Village Indicator Per Per Per Per Per 100 Total 100 Total Total 100 Total 100 Total 100 HH HH HH HH HH Truck of agricultural use 0 0 5 10 3 7 5 6 6 21 Tractor 12 36 16 31 24 55 21 26 5 17 Harvester 2 6 5 10 7 16 1 1 4 14 Animal-drawn vehicle 0 0 0 0 0 0 5 6 0 0 5.2.3 Possessions owned by sample HHs The possessions owned by sample HHs in the Project Area in 2012 are sufficient. See details in Table 5-8.

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Table 5-8 Possesions and Durables Sample HHs Possess in Project Area Unit: vehicle, pcs. Hemu Tiereketi North Akehaba South Akehaba Kanas Indicator Total Village Village Village Village Village Family car 3 6 1 4 2 16 Computer 3 1 1 1 1 7 Hi-fi equipment 6 2 0 2 0 10 Color TV 52 39 18 33 26 168 Black-and-white TV 30 5 15 19 3 72 Fume hood 2 0 0 0 2 4 Refrigerator 32 26 0 11 5 74 Washing machine 33 19 1 8 4 65 Video recorder 6 4 2 6 2 20 Radio-tape recorder 13 19 2 10 5 49 Motorcycle 54 34 21 28 20 157 Cell phone 93 41 18 31 10 193 Wired phone 46 33 0 12 11 102 Carpet and tapestry 98 56 22 35 31 242

5.3 Economic Condition of Sample HHs in Project Area

5.3.1 Income Level of Sample HHs in Project Area The per capita income of sample HHs in the Project Area in 2012 roughly stays the same level as the previous year. Kanas Village sees the highest net income per capita at 14,000 yuan, while Tiereketi Village sees the lowest at 8912.5 yuan. The reason for the substantial difference in tourism revenue and admission ticket subsidy is that Kanas Village is a spot which attracts most of the tourists, but tourists rarely visit Tiereketi Village; which indicates that tourism not only is a key factor affecting the income level of local residents, but also plays a role of internal adjustment by enriching the poor area quickly. See details in Table 5-9.

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Table 5-9 Income Level of Sample HHs in Project Area Unit: yuan Hemu Tiereketi North Akehaba South Akehaba Kanas Indicator Total Village Village Village Village Village Income from 1,279,000 769,500 606,500 792,400 678,723 4,126,123 animal husbandry Wage income 101,500 98,300 13,100 56,000 19,500 288,400 Income from 126,900 132,500 40,600 104,200 63,000 467,200 labor services Income from 1,525,000 292,000 316,000 664,600 394,000 3,191,600 tourism Operating income 140,900 23,600 44,130 66,532 96,357 371,519 with stores Other incomes 88,680 181,400 62,369 96,440 106,423 535,312 Total 3,261,980 1,497,300 1,082,699 1,780,172 1,358,003 8,980,154 Income of per 11,733.74 8,912.5 9,414.774 9,369.326 14,000.03 10,589.8 capita

5.3.2 Expenditure of sample HHs In 2012, the average expenditure per sample HH is 7,203.56 yuan in the Project Area; the highest expenditure levels up to 8,587.56 yuan per capita is in Kanas Village and the lowest 6,781.76 yuan per capita in North Akehaba Village. Compared with the expenditure in 2011, the expenditure of sample HHs in 2012 is decreased. Various measures are taken by the Management Committee of Scenic Spot to reduce the living cost of the scenic spot and bring convenience to local residents’ life. Because of the project construction, it is more convenient for the residents to visit the outside world. Freight transportation cost and price of daily necessities have been reduced. See details in Table 5-10.

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Table 5-10 Expenditure Level of Sample HHs in Project Area Unit: yuan, yuan/person Hemu Tiereketi North Akehaba South Akehaba Kanas Indicator Total Village Village Village Village Village Staple food 96,438 68,452 43,202 74,506 35,962 318,560 Cooking oil 101,640 68,935 38,530 60,645 49,682 319,432 Meat 369,436 229,558 182,130 306,420 220,520 1,308,064 Egg 31,690 27,480 24,580 28,160 71,300 183,210 Milk 177,042 95,290 35,580 87,690 14,720 410,322 Cigarette and wine 42,730 29,030 22,230 31,530 11,680 137,200 Clothes 98,720 58,920 48,900 67,100 119,000 392,640 Housing 27,700 2,400 0 0 23,689 53,789 Water and electric 21,820 15,230 380 1,515 15,540 54,485 charge Fuel cost 19,720 19,250 11,000 15,000 11,300 76,270 Household equipment, 102,150 61,590 59,820 80,800 53,000 357,360 article and service Medical service 582,500 248,830 183,480 286,340 82,700 1,383,850 Education 224,200 136,100 92,320 165,200 46,200 664,020 Traffic 93,760 56,320 27,330 67,710 9,600 254,720 Communication 48,830 31,165 9,100 25,810 19,000 133,905 Cultural & entertainment 4,350 3,200 1,320 2,900 49,100 60,870 activities Expenditure per capita 7,347.94 6,855.65 6,781.76 6,849.08 8,587.56 7,203.65

5.4 Perception and Attitude of Sample HHs towards the Project and Typical Case Study in Project Area

5.4.1 Perception and Attitude of Sample HHs towards the Project According to the field investigation, all sample HHs are quite familiar with the Project. The residents, however, fail to have a sufficient understanding on the specific implementation of the Project. The PMO should organize forums to make residents have a better understanding on the content of the project. 5.4.2 Typical Case Study (1) Through a model survey, it is reflected by the villagers in Hemu Village that in 2012 the Management Committee of Kanas have provided them equipments for solar energy and high-quality cattle which has improved their life conditions considerably, especially the subsidy from the admission ticket which to a large extent increases their income. They are very satisfied with the project.

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(2) Through a model survey, it is reflected by some villagers that the Management Committee of Kanas could help them build fences on their property which could make the tourists feel as if the environment is more in order. As a result, the tourism income could be increased due to an increase in tourists. In brief, the local residents hold the project implementation in high regard and they gain great benefit from it. They are all very satisfied with it. In order to better improve local residents’ living and production conditions, the Management Committee of Kanas should enhance the construction and make more efforts on building a better scenic spot in the best interest of local residents.

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6 Public Participation, Complaint and Grievance

6.1 Public Consultation and Participation The project work which is implemented in 2012 is a landfill in Haliutan. Since it is far from the residents’ living area, public consultation and participation has not been carried out this year. However, some meetings on public consultation and participation shall be held, which favors smooth implementation of the whole Project. 6.2 Listening to and Settlement of Complaints from APs During the implementation of the Project in 2012, there are no complaints from the residents about the relevant activities of the Project. According to the field investigation done by the external monitoring team, the local residents are highly satisfied with their current life. The governments provide great support to the EM which largely improves production and livelihood of local EM. 6.3 Questionnaire of Public Satisfaction and its Result During the field survey in the project area in 2012, residents in the project area are very satisfied with the project implementation. They all hold positive attitudes towards the project implementation. See Table 6-1 for summary of feedback, relevant questions and findings. It is known according to the Table 6-1 that: (1) Net income of the residents. According to the filed survey, 100% of the residents are satisfied with their income. The subsidies from admission tickets help to increase their net income. After the implementation of the Project, 92% of the residents have an increased income level; the rest 8% residents have their income level kept as previous year, of which, 5% households have sick family members and 3% of the households have children who need to go to school. Due to a lack of labor force, their family income is kept almost at the same level compared to previous years. (2) Water supply and drainage works. In 2012, water supply and drainage facilities have been improved in Tiereketi Village which enables all the households there to have access to the water supply free of charge. Local residents are all satisfied with it.

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(3) Skill training. The survey data shows that 95% of people there receive skill training and only 5% do not. The training courses are mainly on tourist reception service, catering service, planting training and training related to horses. The effect received from the training is excellent. 100% of people who participate in the training could apply what they have learned to practice and improve their family income. Table 6-1 Summary of Feedback on Implementation Effect of Mitigation Measures in 2012 Findings S.N. Question Options ① ② ③ % % % 1 Does construction noise disturb your life? ①Yes ②No 100 Are you satisfied with garbage collection and ① Very satisfied 2 ② Satisfied 24 the sanitation in construction area? ③ Not satisfied 76 Does the contractor construct in the ① Yes 3 construction area around (500m from) ② Sometimes 100 mosques on Fridays? ③ No ① Satisfied 4 Are you satisfied with current income level? ② Satisfied basically 62 38 ③ Not satisfied ① Are you satisfied with current solid waste Satisfied 5 ② Satisfied basically 98 2 disposal? ③ Not satisfied ① Is there some change to the income level of Increased 6 ② No change 92 your family? ③ Decreased 8 Is your opinion solicited during the 7 construction of water supply and drainage ① Yes ② No 100 works? Did you participate in some technical or skill 8 ① Yes ② No 95 5 training? Are you satisfied with the supply of drinking ① Satisfied 9 ② Satisfied basically 85 15 water? (Tiereketi Village) ③ Not satisfied ①Satisfied Are you satisfied with subsidies your family 10 ② Satisfied basically 39 58 3 received? ③ Not satisfied

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7 Conclusion of Monitoring & Assessment, Problems and Suggestions

7.1 Assessment Conclusion (1) According to the project progress schedule, the implementation of Kanas EMDP is in compliance with the Plan. To ensure the EM gain benefits from the project, relevant measures are taken to minimize the negative impact on EM by project units, the government at different levels and all management departments concerned in accordance with the EMDP (updated version). (2) EM in the project area holds a welcoming attitude towards the project. Through the field investigation and visits, the monitoring and assessment agency found: EM in the project area hold the idea that they should support the project, considering that there is a little negative impact the project brings, such as land requisition, the project bring a lot of positive impact, such as the convenience of the transportation, the improvement of the living environment, the development of animal husbandry, the development of tourism, the employment of the labor force and the improvement of women’s status. (3) Employment opportunities are provided by the project construction. Also, due to the large number of construction workers, the catering and other service industries have been improved. Through the field investigation and visits, the monitoring and assessment agency found: employment opportunities have been provided to local residents and their income has been increased. (4) All the measures are taken to maximize the effectiveness of the project by the government at different levels and management departments, such as labor force transfer, poverty alleviation and improvement of employment. By now, EM skill training, bilingual education and tourism development are being implemented to increase the employment of local EM. The fundamental purpose of the project is the development of the EM, and its implementation expands the benefit of the project to its maximum. (5) The Management Committee of Kanas attaches high importance to the implementation of the EMDP. It plays an essential role in the EM development

61 External Monitoring & Assessment Report on Kanas EMDP in 2012 through communication and cooperation with proprietors and construction units and implementation of the EMDP measures.

7.2 Suggestions

(1) Establishment of EMDP implementation coordination mechanism. The measures of EMDP have been implemented, but some agencies lack a detailed understanding of the minority policy. It is suggested by the monitoring and assessment agency that the construction unit should establish an EMDP communication and coordination mechanism between construction units and all management departments to ensure the project is implemented effectively and in a timely manner. In doing so, the EM can gain more benefit from the project. (2) A system of statistical report for the progress of project implementation and internal monitoring should be established and developed by the construction unit in accordance with ADB’s policies and regulations of the EMDP. The internal monitoring consists of: the progress and the content of the project implementation, fulfillment of funds and the completion of the project objectives. Taking employment of the local labor force as an example, a dossier management system should be set up. Establishment of the dossier management system could guarantee the local residents’ rights, since the system could be used to manage the relevant files of the long-term employment and temporary employment. The system covers the number of employed workers in the construction site, the use of local building material in the construction site and the number of local temporary construction workers who just get training. (3) Establishment of complete system for complaint and grievance. In order to ensure the EM’s rights and improve their benefit from the project, PMO should urge the construction units and management departments to establish a system for complaints and grievances regarding construction activities, sanitation protection and labor force. (4) The relevant measures need to be further improved in the construction site after winter, such as the warning signs written in three languages should be set up, etc.

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