PRC: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project

Resettlement Planning Document

Document Stage: Final Project Number: 40683 August 2010

Final Resettlement Plan for Longwantao Reservoir Subproject in Sishui County (English)

Prepared by the Shandong Provincial Government.

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

Sishui County Longwantao Reservoir Risk Mitigation Project

Under

Risk Mitigation of Endangered Reservoir Project in Shandong Province

The People’s Republic of China

Resettlement Plan

Keyuan Water Resources Design and Research Institute of Shandong Province

December 2009

Letter of Endorsement

Sishui County Water Resources Department (SCWRD) received the approval of constructing the Risk Mitigation of Longwantao Reservoir Project in Sihsui County from the related departments. This Project is proposed to be started in January 2010, and completed by November 2010. Sishui County Government, through Ministry of Finance, has requested a loan from the Asian Development Bank (ADB) to finance part of the Project. Accordingly, the Project will be implemented in compliance with ADB social safeguard policies. This Resettlement Plan (RP) represents a key requirement of ADB and will constitute the basis for land acquisition and resettlement. The RP fully complies with requirements of the relevant laws, regulations and policies of the People’s Republic of China (PRC), Shandong Province and Sishui County Government as well as complies with ADB’s policy on involuntary resettlement.

Sishui County Government and SCWRD hereby affirm the contents of this Resettlement Plan prepared dated in December 2009 and ensures that the resettlement will be made available as stipulated in the budget. SCWRD has discussed the draft resettlement Plan with relevant local officials and has obtained their concurrence. SCWRD under Sishui County Government was authorized as the responsible agency to manage the implementation of the Project and related resettlement activities.

Governor, Sishui County Government

______(signature)

______(date)

Abbreviation ADB Asian Development Bank AHs Affected Households APs Affected Persons EA Executing Agency EIA Environmental Impact Assessment FSR Feasibility Study Report IA Implementing Agency JSO Jihe Subdistrict Office LAB Land Administration Bureau LAR Land Acquisition and Resettlement LRPCMO Longwantao Reservoir Project Construction Management Office M&E Monitoring and Evaluation PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC People’s Republic of China RP Resettlement Plan SCG Sishui County Government SCWRD Sishui County Water Resources Department SPMO Shandong Project Management Office SES Socioeconomic Survey TA Technical assistance TOR Terms of reference

EXECUTIVE SUMMARY ...... 1 1.INTRODUCTION ...... 3 1.1 PROJECT BACKGROUND ...... 3 1.1.1 Resettlement Background during Original Construction Period ...... 3 1.2 PROJECT DESCRIPTION ...... 4 2. IMPACTS OF LAND ACQUISITION AND RESETTLEMENT ...... 7 2.1 MEASURES TAKEN TO AVOID OR MINIMIZE LAR IMPACTS ...... 7 2.2 SCOPE OF LAND ACQUSITION AND RESETTLEMENT ...... 7 2.2.1 House Demolishment ...... 7 2.2.2 Temporary Land Occupation……………………………………………………………………… 8 2.3 SUMMARY OF AFFECTED PERONS AND DEGREE OF IMPACT ...... 9 3. SOCIO-ECONOMIC PROFILE IN AFFECTED AREAS ...... 10 3.1 SOCIO-ECONOMIC PROFILE OF SISHUI COUNTY ...... 10 3.2 SOCIO-ECONOMIC PROFILE OF AFFECTED SUB-DISTRICT ...... 10 3.3 SOCIO-ECONOMIC PROFILE OF AFFECTED VILLAGES ...... 10 3.4 SOCIO-ECONOMIC SITUATION OF AFFECTED HOUSEHOLDS ...... 11 3.4.1 Population Distribution by Age ...... 11 3.4.2 Population Distribution by Education ...... 11 3.4.3 Productive Resources ...... 12 3.4.4 Household annual Income and Expenditure ...... 12 4. POLICY FRAMEWORK, ENTITLEMENT AND COMPENSATION ...... 14 4.1 APPLICABLE LAWS, REGULATIONS & POLICIES FOR RESETTLEMENT ...... 14 4.2 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT ...... 14 4.3 ELIGIBILITY OF COMPENSATION ...... 15 4.4 ENTITLEMENT ...... 15 4.5 COMPENSATION STANDARDS ...... 17 4.5.1 Compensation Standards for Temporary Land Use ...... 17 4.5.2 Compensation Rate for Resendential and Associated Structures ...... 17 4.5.3 Compensation Standards for Attachments...... 17 5. REHABILITATION MEASURES ...... 18 5.1 OBJECTIVES OF RESETTLEMENT ...... 18 5.2 REHABILITATION PLAN FOR HOUSE DEMOLITION ...... 18 5.3 REHABILITATION OF TEMPORARY LAND USE ...... 18 5.4 JOB OPPORTUNITIES FROM THE PROJECT ...... 18 5.5 INCOME RESTORATION PLAN OF WOMEN ...... 18 5.6 TRAINING FOR THE AFFECTED PERSONS ...... 19 6. COST ESTIMATE ...... 20 6.1 RESETTLEMENT COST ...... 20 6.2 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 20 7 POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA ...... 22 7.1 BACKGROUND ...... 22 7.2 POST-RESETTLEMENT SUPPORT APPROACHES ...... 22 7.3 POST-RESETTLEMENT SUPPORT BUDGET IN RESERVOIR AREA ...... 23 8. IMPLEMENTATION SCHEDULE ...... 24 9. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 25 9.1 PUBLIC PARTICIPATION ...... 25 9.2 GRIEVANCE PROCEDURE ...... 25 10. INSTITUTIONAL ARRANGEMENT ...... 27

10.1 RESPONSIBLE INSTITUTIONS FOR RESETTLEMENT IMPLEMENTATION ...... 27 10.2 TRAINING PLAN FOR RESETTLEMENT MANAGEMENT STAFF ...... 28 11. MONITORING AND EVALUATION ...... 29 APPENDIX 1 APPLICABLE LAWS AND REGULATIONS ...... 30 APPENDIX 2 TERMS OF REFERENCE FOR EXTERNAL MONITORING ...... 32

Executive Summary

Longwantao reservoir is a pluriennial regulation medium-sized reservoir that mainly serves the purposes of flood control and irrigation, and also gives consideration to power generation and aquaculture. The Reservoir was started in Dec, 1958, and basically completed in 1960. The reservoir is mainly composed of dam, spillway(gate), diversion tunnel and power station, etc. Longwantao Reservoir has an important geographical position and has prominent social and economic benefits. According to the appraisal conclusion made by the relevant departments at provincial level, Longwantao reservoir is in a condition of high risks, including severe dam leakage, insufficient height of anti-seepage stuffs, destroyed spillway gate, seepage of water release tunnel and imperfect of safety monitoring equipment. Therefore, it is urgent and necessary to implement the project.

Bsed on the filed survey for Construction Map Design, the project has no permanenet land acquisition. All engineering works will be constructed on land within the reservoir management scope. The borrow area, spoil area and construction camps will use 69.3mu land temporarily, including dryland 14.3 mu, orchard of 15 mu and shrubland of 35 mu with 60 households and 220 people to be affected in Longwantao village . The house demolishment of 200m2 will affect 1 household or 5 people from Longwantao Village. Some associated auxiliaries, and basic infrastructure and facilities will be affected. Total investment of the sub-project is CNY 43.4million. The total cost for land acquisition and resettlement is CNY 1.05 million, which makes up 2.74% of total sub-project investment.

The temporary use of land will be compensated based on the actual occupation period. In the project, all land will be used temporarily for less than one year, so the compensation rate will be the annual output value, i.e. CNY 1,200/mu. In addition, the land will be restored to its original use after the completion of the engineering works. The restoration rate of borrow-area is CNY 3,300/mu. For the land used for other purpose, including temporary road, stockyard, construction camp and spoil area, the restoration rate is CNY 1,000/mu. Compensation rate for residential and associated structures is decided based on “Circular of Shandong Provincial Government Concerning the Approval of the Associated Attachment Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)” and the result of field survey. The residential houses in brick-concrete structure will be paid at the rate of CNY630/m2 and stock yard shed will be compensated at the rate of CNY150/m2. In addition, the relocation fee will be paid based on the rate in similar project. The relocation subsidy is CNY 280 per capita. The infrastructure subsidy is CNY 1,500 per household. The affected household has already been allocated housing plot in the same village.

Based on consultation with affected household, all compensation on house and associated structures will be paid in cash directly to affected household who will arrange the reconstruction of the houses and other facilities himself. The compensation for temporary land use will be paid directly to the affected people. All land to be used temporarily will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

The APs have participated in the planning process and their concerns have been integrated into the RP. The draft RP was distributed to the affected village in December 2009. In accordance with ADB’s public communications policy, the draft RP will be posted on the ADB website prior to loan appraisal. An effective and transparent channel for lodging complaints and grievances has been established, and relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered by the contingency of the project.

In order to implement RP successfully and achieve the goals of resettlement, the

implementation of RP will be subject to internal and external monitoring according to ADB resettlement policies. The external monitoring and evaluation will be done by an independent monitoring agency (IMA). The external monitoring and evaluation institution shall undertake regular monitoring and evaluation of the resettlement implementation activities and provide necessary consultative proposals.

1.Introduction 1.1 Project Background 1. Longwantao Reservoir is located on the upstream of Ji River-tributary of Xisi River, Nansi Lake water system, Huai River river basin, south of the Chengguan Town, Sishui County, Jining City. The reservior covers 440km2 of control basin, with a total reservoir storage of 35.30×106m3. The engineering is graded II and the major structures are graded III. The reservoir is a pluriennial regulation medium-sized reservoir that mainly serves the purposes of flood control and irrigation, and also gives consideration to power generation and aquaculture.

2. Longwantao Reservoir was started in Dec, 1958, and basically completed in 1960. The normal pool level of the reservoir is elevation 149.86m; the available storage is 35.3×106m3; the dead water level is elevation 137.360m; the dead storage is 1.9×106m3. Longwantao Reservoir was able to withstand the once-in-a-hundred-year flood and check the once-in-a-three-hundred-year flood, according to the assessment. After the safety appraisal in 2006, the current flood protection capacity of the reservoir can meet the standard of withstanding the once-in-a-hundred-year flood and checking the once-in-a-thousand-year flood.

3. The reservoir is mainly composed of dam, spillway(gate), diversion tunnel and power station, etc. Longwantao Reservoir has an important geographical position and has prominent social and economic benefits. Along its downstream, there is Yanshi Railway extending for 3km, Sishui County extending for 6km and a famous historical and cultural city—Qufu, extending for 36km. On both sides of the bank along the river, there are dozens of villages, tens of thousands of arable land and many factories, mines and other enterprises. So the safe opertion of the dam of the reservoir is of utmost importance to people's lives and properties safety in the downstream along the river. Since it was built, continued construction and safety engineering of the reservoir has been carried out for several times. The reservoir has played an active role in promoting the industrial and agricultural production of the local area, with an prominent project benefits. According to the design, Longwantao Reservoir can withstand the once-in-a-hundred-year flood, producing a flood volume of 48.36×106m3 and reducing 164.0％ of the peak discharge. Since it was built, the reservoir has given full play to reducing flood peak and retaining flood, thus guaranteeing the safety of people's lives and properties and the famous cultural city—Qufu in the downstream. The design total irrigation area in the irrigated area is 87,500 mu and the actual effective irrigated area is 45,000 mu. Under the premise of guaranteeing the engineering safety, the reservoir makes a full use of the currently existing soil and water resources and develops such operation projects as aquiculture, obtaining a relatively good economic benefit, thus realizing the steady and stable development of the water industry. But because of the severe hidden trouble of the reservoir, the full realization of the comprehensive benefits such as flood control, irrigation, industrial water supply and aquiculture has been influenced.

4. The reservoir has been put into operation for more than 40 years since 1960s. The engineering works is aging and various facilities are in condition of overterm service which result in the ineffective management, project dispatching failure and potencial safety problems. According to the appraisal conclusion made by the relevant departments at provincial level, Longwantao reservoir is in a condition of high risks, including severe dam leakage, insufficient height of anti-seepage stuffs, destroyed spillway gate, seepage of water release tunnel and imperfect of safety monitoring equipment. Therefore, it is urgent and necessary to implement the project.

1.1.1 Resettlement Background during Original Construction Period

5. Longwantao reservoir was constructed in November 1958 and completed in May 1960.

The construction of the reservoir inundated 21 villages of 2 townships with total inundated area of 7,559 mu. 5,242 people was relocated and 628 people was affected only by land loss. The details of inundation status is presented in Table 1-1. Based on the “Shandong Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs”, the total resettlers are 8,527 of 58 villages in 6 towmships1, of which 7,146 APs was involved in overall relocation of 8 villages in 2 townships ( Shenshuiyu and Jihe Subdistrict) and 1,381 APs was relocated in disperse resettlement in 50 villages of 6 townships. The details of resettlement information is presented in Table 1-2

Table 1-1 Innundation Status Caused by Construction of Longwantao Reservoir Affected Households (No.) Relocated Persons Innundation Innundated Townships Village (No.) (No.) Land (mu) Houses (No.) Shengshuiyu 14 2,270 3,119 3,751 2,555 Chengguan 7 475 2,123 3,808 2,546 Total 21 2,745 5,242 7,559 5,101

Table 1-2 Resettlement Status Caused By Construction of Longwantao Reservoir Registered Population in Relocation Pattern Township Affected Village (No.) AHs (No.) 2006 (No.) Shengshuiyu 6 1,124 4,160 Overall relocation Jihe Subdistrict 2 800 2,986 Shengshuiyu 29 377 809 Jihe Subdistrict 13 244 408 Sihe Subdistrict 1 3 8 Disperse Relocation Miaoguan 1 1 3 Zhongce 1 3 11 Sizhang 4 27 68 Total 58 2,629 8,527

6. Based on statistical yearbook in 2005, the annual rural per capita income was 3,651 yuan in Sishui county. But in the resettlement villages, the annual rural per capita income was around 1300 yuan. The remaining issues after resettlement include out-dated infrastructure and limited income sources. Most of the infrastructure, including water resources and transportation facilities, were constructed 20 years ago and in a poor condition caused by shortage of investments and backward technology at that time. Some villages still have some troubles in aspect of drinking water, transportation, medical service and education. In addition, the employment difficulties stayed with resettlement villagers. Most of them relied on agricultural activities for living. Income of resettlement villagers only accounts for one third of the average level of the County, which lagged greatly behind other people outside the reservoir area. Based on the “Suggestions of State Council on Perfecting the Post-resettlement Support Policies of Large and Medium-sized Reservoir Resettlement” (2006-2010) and the corresponding Implementation Method issued by Shandong provincial government, Sishui County government led the preparation of the post-resettlement program for Longwantao Reservoir.

1.2 Project Description 7. After the reinforcement of Longwantao reservoir, the normal pool level remains at 149.86m, the available storage remains 35.3×106m3 and its annual water output is 31.23×106 m3 According to Reviews of the Safe Assessment for the Grade Ⅲ dam and the Longwanku Reservoir,the main tasks of danger removal and reinforcement for this time are as follow:the

1 The Ministry of Water Resources maintains a record of all families affected by reservoir inundation. Today, the numbers have grown due to population increase and division of households.

reinforcement of concrete anti-percolation in the dam body and crutain grouting anti-percolation in the dam base ,the reconstruction of the slope protection upstream,the hardening of the roads on the dam crest ,the reinforcement of the anti-wave wall on the upstream dam shoulder, planting to protect the slope and building drainage tunnel ;the reinforcement of the spillwaygate by covering the pier with concret , setting up brake on sub-bottom weir to improve the bottom stress state ,demolishing and reconstructing the connecting segment in the upstream,the fortress on the bridge tower and the mound of the bridge ; rebuilding the downstream energy dissipation and erosion facilities, chute segment lining, demolishing and reconstructing the drainage tunnel, rebuilding the hoist room, update metal structure and the electricity; ;backfilling dam body, change east branch trunk and building aqueducts; removing part of the west branch trunk upstream; repairing the flood control road, perfecting observation facilities and the necessary management facilities. Figure 1-1 is the map of Longwantao Reservoir and the affected village. Figure 1-2 shows the downstream benefit area.

8. Starting and finishing time of construction of the sub-project are from March 2010 and to March 2011, project construction period is 12 months. The Project construction will necessitate permanent temporary land occupation. To mitigate the impacts, the short resettlement plan (RP) has been prepared by Keyuan Surveying and Desig Institute of Water Resources on behalf of Sishui Water Resources Department in line with the Asian Development Bank’s (ADB) Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China (PRC) and Shandong Province.

Figure 1-1 Map of Longwantao Reservoir with Affected Village

Figure 1-2 Map of Longwantao Reservoir and the Downstream Benefit Area

2. IMPACTS OF LAND ACQUISITION AND RESETTLEMENT 2.1 Measures Taken to Avoid or Minimize LAR Impacts 9. In order to avoid or reduce LAR impacts to the minimum, engineering alternatives have been carefully reviewed and the optimal option has been adopted during the Project design phase. The engineering works will be implemented within the reservoir engineering management scope of reservoir and has no impacts by permanenet land qcquisition. The consolidation of the dam must be implemented around the dam, so one household have to be relocated. In addition, other construction facilities, including borrow area, construction road and camps etc., are associated with engineering works and temporay land use can not be avoided. However, at the same time, various compensation measures are prepared for affected persons who are unavoidably affected by temporary use land. During the construction phase, a reasonable construction plan should be formed before the start of construction, and the construction sites should be strictly controlled within the scope of red line and awareness of responsibilities for construction workers should be raised to minimize the land acquisition and resettlement.

2.2 Scope of Land Acqusition and Resettlement 2.2.1 House Demolishment

10. According to the Construction Map Design, the construction of the new aqueduct will lead to the demolishment of residential houses at the foot of the dam. The house site is within the engineering management scope. One household with 5 persons will be affected by house demolishement of 200 m2. This household is a fish farmer from Longwantao Village who built houses on unused land of the reservoir engineering management scope for fish culture and safeguard the breed surface. The household has been allocated a house plot within the village. In addition, the associated structures, including corral will be affected as well. Table 2-1 provides the details of the house demolihment. Figure 2-1 shows the house to be demolished.

Table 2-1 House Demolition and Associated Auxilliaries to be Affected Affected Town Affected Village Structure Demolition Unit Quantity AHs APs Brick-Concrete Houses m2 200 Sihe Subdistrict Longwantao 1 5 Stockyard Sheds m2 150

Figure 2-1 Houses to be demolished

2.2.2 Temporary Land Occupation 11. The temporary land use of the project will affect 1 village, i.e. Longwantao in Sihe Subdistrict, Sishui County. The scope of the Project impacts is mainly determined by the measurement survey in August 2009 on the basis of the technical standards and drawings of the Construction Map Design (CMD). The temporary land use includes 19.3 mu dryland, 15 mu orchard and shrubland 35 mu. Overall 60 households with 220 perople from Longwantao village will be affected by temporary land use. After the completion of the project, the temporarily affected land will be restored to its original condition by contractors of civil works. Table 2-2, Table 2-3 provides the details of impact of permanent land acquisition. No vulnerable people will be affected. Figure 2-2 show the land to be temporarily occupied.

Table 2-2 Temporary Land Occupation by Construction Activities Construction Activies Temporary Land Use (mu) Borrow Area for Cofferdam 5.0 Spill Slope Protection and Canal Reconstruction 7.5 Temporary Road 10.0 Aqueduct 6.8 Grounting 10.0 Comprehensive Prosessing Workshop 14.0 Prefabrication area 11.0 Spoil Area 5.0 Total 69.3

Table 2-3 Impacts of Temporary Land Occupation Affected Affected Ownership of Land Total Dryland Shrubland Orchard AHs APs Town Village to Be Occupied (mu) (mu) (mu) (mu) Jihe Longwantao Contracted Farmland 69.3 19.3 35.0 15.0 60 220 Subdistrict Village

Figure 2-2 Shrubland, Orchard and Poplar Trees to be Affected

12. Some ground attachments, basic infrastructures and special facilities will also be affected. Table 2-4 are the impacts of affected ground attachments, basic infrastructures and special facilities.

Table 2-4 Affacted Ground Attachemnt, Infrastructure and Special Facilities Item Unit Quantity Canal M2 50 380V Electric Pole No. 24 10kv Power Line km 1.2 Young ArborTrees No. 2,200 Mature Timber No. 2,500 Young Fruit Trees No. 200 Fruit Trees in Harvest Phase No. 800

2.3 Summary of Affected Perons and Degree of Impact

13. According to the field investigation, all the affected persons are Han (i.e., no ethnic minority people) and there are no vulnerable persons affected by this project.

14. The temporary land use of the project will affect one village, Longwantao Village in Jihe Subdistrict, Sishui County. The temporary land use of 69.3 mu farmland will affect 60 households with 220 people in Longwantao village. The per capita land loss of affected farmers is 0.31 mu, accounting for 68% of the per capita farmland of the village. Table 2-5 shows the summary of the impacts of temporary land use in the affected village and Table 2-6 shows the impact analysis by affected households.

Table 2-5 Summary of Temporary Land Use Impacts in the Affected Village Per Capita Farmland Land Loss Per Capita Land Average Land Loss Village APs (mu) (mu) Loss(mu) Ratio(%) Longwantao 0.50 69.3 220 0.31 63%

Table 2-6 Impact Analysis of Temporary Land Use Longwantao Village Range of Land Loss Ratio AHs (No.) Percentage (%)

1% - 25% 3 5% 26% - 50% 7 11.67% 51% - 75% 48 80% 76% - 100% 2 3.33% TOTAL 60 100.00%

15. Through analysis of the survey, 83.33% of affected households will lose more than 50% of their farmland temporarily. All land to be used temparorily will be occupied no more than one year and the loss of one year crop will be compensated. Furthermore, the affected people will have more time to be employed in the construction activities due to the reduction of agricultural working time to increase their earnings during land occupation period.

3. SOCIO-ECONOMIC PROFILE IN AFFECTED AREAS 16. In August 2009, LRPCMO and the Design Institute organized an investigating group to investigate the impacts of temporary land use and house demolition caused by the Project. And at the same time, socio-economic information of the APs was also collected. Besides, sampling survey on socio-economic condition of the affected households is carried out by one by one interview.

3.1 Socio-economic Profile of Sishui County 17. Sishui County governs 13 towns( sub-district offices), 588 village committees. The total population is 610,168 including rural population 533,000 and 59,000. Its economy grew rapidly in 2008, and its GDP has reached 8.93 billion. The fiscal revenue is 387.68 million in 2008.

3.2 Socio-economic Profile of Affected Sub-district 18. One Sub-district offices (Jihe sub-district) are affected by temporary land use, details are as follow: 19. Jihe sub-district is situated in the middle-south of Sishui, and it has a population of 62,510 people in 35 village committees and 8 residential committees. There is 38,908 mu of farmland, which is 0.62 mu of farmland of per capita. The annual per capita net income of farmers is 4,493 Yuan.

3.3 Socio-economic Profile of Affected Villages 20. One village (Longwantao Village) is affected by temporary land occupation. The basic socio-economic condition of the the village is shown in Table 3-1. Since the construction of Longwantao Reservoir, their collective land has been acquired for thel project. Nowadays, the per capita farmland is little and their income mostly comes from the migrate work. The temporary use of the land may allow the villager to find more time for migrate work outside.

Table 3-1 Socio-economic Survey of the Affected Village

Township/ Sub-district Office Jihe Village Affected Longwantao Total Households 469 Total Population 1,721 Male 831 Population Female 890 Agriculture Population 1,715 Nonagricultural Population 10 Total Labor Force 860 Male 420 Female 440 Labor Force 1st Industry 640 2ndIndustry 0 3rd Industry 220 Total Area (mu) 849 Farmland Farmland per capita (mu) 0.50

GDP(million Yuan) 9.2 1st Industry(million Yuan) 1.5 Output Value 2nd Industry(million Yuan) 0 3rd Industry(million Yuan) 7.7 Net Income Per Capita(Yuan) 4,000 The 1st Industry (%) 16 Net Income of Farmers The 2nd Industry (%) 0 The 3rd Industry (%) 84

3.4 Socio-economic Situation of Affected Households 21. In August 2009, LRPCMO carried out a questionnaire investigation in Longwantao village on the 20 of the 60 affected households. The characteristics of the surveyed population can be seen in Table 3-2.The survey indicates that most of the young laborers from affected households go out for migrate work in the downtown area of the County. The male labors above 45 years old or female labors above 40 years old stayed home for agricultural activities. So their agricultural income only accounts for 16% of their total income, of which, income from land cultivation only accounts for 6 % of the total income. Therefore, temporary land use has little impact on the APs and they may find more time for non-farming jobs.

Table 3-2 Statistical Characteristic of People Affected by Land Acquisition Man Women Total Item Quantity % Quantity % Quantity % Age ≤6 years old 2 6.4 3 8.1 5 7.4 6-16 years old 7 22.6 5 13.5 12 17.6 16-60 years old 18 58.1 22 59.5 40 58.8 ≥60 years old 4 12.9 7 18.9 11 16.2 Subtotal 31 100 37 100 68 100 Education illiterate and almost illiterate 3 9.7 5 13.5 8 11.8 primary schooling 7 22.6 13 35.2 20 29.4 middle school schooling 13 41.9 12 32.4 25 36.8 high school schooling 6 19.4 6 16.2 12 17.6 college schooling and above 2 6.4 1 2.7 3 4.4 Subtotal 31 100 37 100 68 100 Labor Force 16 51.6% 17 45.9% 33 48.52% 3.4.1 Population Distribution by Age 22. Among 68 surveyed persons in 20 households, 5 persons are under 6 years old, accounting for 7.4% of total population; 12 persons are ranging from 6 to 16 years old, accounting for 17.6% of total population; 40 persons are ranging from 16 to 60 years old, accounting for58.8% of total population; 11 persons are above 60 years old, accounting for 16.2% of total population. 3.4.2 Population Distribution by Education 23. Among 68 surveyed persons in 20 households, 8 persons are illiterate and almost illiterate, accounting for 11.8% of total population; 20 persons are primary schooling, accounting for 36.8%; 25 persons are ranging middle school schooling, accounting for 36.8%

of total population; 12 persons are high school schooling, accounting for 17.6% of total population; 3 persons are college schooling and above, accounting for 4.4% of total population. 3.4.3 Productive Resources 24. Among 68 surveyed persons in 20 households, the total area of farmland is 35.4 mu, with 0.52 mu per capita. Peanut and sweet potato are the main crops due to limited water resources. 3.4.4 Household annual Income and Expenditure According to the statistical analysis of the 20 households, annual income per capita is 5,374 Yuan, among which wage income is 4,039 Yuan, accounting for 75.2%; income from household business is 1,135 Yuan, accounting for 21.1% (among which, the first industry income is 875 Yuan, accounting for 16.3%). As for expenditure, annual expenditure per capita is 1,374 Yuan, among which expenditure for household business is 450 Yuan, accounting for 32.8%; purchase of productive fixed assets is 44 Yuan, accounting for 3.2%; consumption expenditure is 680 Yuan, accounting for 49.5%. Income and Expenditure structure is shown in Table 3-3.2

Table 3-3 Annual Income and Expenditure Structure of 20 Sample Households Affected by Land Acquisition Per Capita Percentage Item (Yuan/Person) (%) Wage Income 4039 75.2 Income From Household Business 1135 21.1 Among Which: 875 16.3 Primary Industry Secondary Industry 0 0 Household annual Income Tertiary Industry 260 4.8 Property Income 120 2.2 Transfer Income 80 1.5 Total 5374 100 Expenditure for Household Business 450 32.8 Expenditure for Productive Fixed Assets 44 3.2 Tax Expenditure 0 0 Household annual Expenditure Consumption Expenditure 680 49.5 Expenditure for Property 120 8.7 Expenditure for Transfer 80 5.8 Total 1374 100 Savings 4,000 Net Income 4,880

Public Opinion Survey 25. A public opinion survey of 20 households was conducted. The results indicates that all of them support the Project, and think the Project can bring benefits to the county, collectives

2 The data comes from household survey and village statistics of Statistical Bureau.

and individuals, increase job opportunities and improve the living standard of local people. 98% of them are satisfied with the compensation standards, 2 % are not very satisfied, 100% of them have some knowledge about the land administration law, and 87% know the policy about land acquisition and resettlement, and 13% of them don’t know the policy. Please see Table 3-4 for the detailed information of public opinion survey. As the survey was carried out before series of public participation and consultation activities, a small proportion of the APs are not very satisfied with the compensation standards, are not familiar with the land administration law, and don’t know the policy about land acquisition and resettlement. Based on the facts, meetings with the APs have been organized to inform them on their rights and options and to increase their awareness of the LAR policy, laws, regulations and standards. As a result, the awareness of the APs has been increased than before and they are in favour of the suggested approaches.

Table 3-4 Public Opinion Survey Results (%) No. Questions Optional answers (1) (2) (3) (4) total Do you support this 1 (1) yes, (2) no, (3) it doesn’t matter 100 100 project? Who do you think can get (1) nation 100 100 2 benefit from the Project (2) collectives 100 100 (multiple choices)? (3) individuals 100 100 What benefits can the (1) improve income, (2) increase job 100 100 3 Project bring to your life? opportunity, (3) no benefit 100 100 Are you satisfied with the (1) yes, (2) not very satisfied, (3) 4 98 2 100 land compensation rate? dissatisfied Do you know Land 5 Administration Law of (1) yes, (2) not too much, (3) no 100 100 PRC? Do you know the policy 6 about land acquisition and (1) yes, (2) not too much, (3) no 87 13 100 resettlement? If your legal rights are offended during land 7 acquisition and (1) yes, (2) no 100 100 resettlement, do you know to appeal? Do you need other help, 9 e.g. training, and job (1) yes, (2) no 70 30 100 opportunities?

4. POLICY FRAMEWORK, ENTITLEMENT AND COMPENSATION 4.1 Applicable Laws, Regulations & Policies for Resettlement 26. The resettlement policy for this project is established mainly in accordance with the relevant laws of China and the relevant policies of ADB, including:

ADB Policies  Safeguard Policy Statement, July 2009 (effective from 20 January 2010)  Handbook on resettlement A Guide to Good Practice (effective from 1998)  Gender and Resettlement Analysis, February 2003.

Laws and Regulations of the PRC  Land Administration Law of the People’s Republic of China (effective from January 1, 1999, latest version on August 28, 2004)  The State Council's Decision on Deepening Reform and Managing Land Strictly (Guo Fa [2004] No.28) (effective from October 21, 2004)  Circular of the State Council on Intensifying the Land Control (No. 31 [2006] of the State Council)  Guidelines on Improving the System of Land Acquisition Compensation and Resettlement (Guo Tu Zi Fa [2004] No.238) (effective from November 3, 2004)  Regulations on Land Requisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conserancy and Hydropower Projects (effective in 2006)  Specifications on land requisition and resettlement design for construction of water resources and hydropower project (SL 290—2003)

Relevant Policies of Shandong Province  The Implementation Regulations of Shandong Province for the PRC Land Administration Law (effective from August 22, 1999)  Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Acquired Land (Lu Zheng Ban Fa [2004] No. 51)  Circular of Shandong Provincial Government Concerning the Approval of the Associated Auxicillaries Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)

4.2 Objectives and Principles of Resettlement

27. The primary objective of the LAR program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The principles of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) Compensation and entitlements provided are based on market value or replacement value and must be adequate; (iii) Land temporarily occupied and the period of disruption are to be kept to a minimum; (iv) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (v) Adequate compensation should be provided to the APs timely; (vi) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vii) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.3 Eligibility of Compensation

28. The Project APs who are entitled to receive compensation from the Project refer to the persons affected by the involuntary taking of land resulting in: (i) temporary loss of land or access to land; (ii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; (iii) loss of ground attachments and standing crops; and (iv) house demolition.

29. All landowners and users in the Project areas affected by land acquisition and resettlement as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the type of loss and quantities as well as the cut-off date determined by the government within the completion date of the construction map and investigation; or due to the temporary impact during the construction phase. The newly cultivated land and newly built houses shall not be compensated after the cut-off date.

4.4 Entitlement

30. For the losses associated with land acquisition of the Project, the entitlement matrix has been prepared as a guide to compensation payment, which is presented in Table 4-1. The compensation fees for land occupation and resettlement will be directly paid to the land owners or users at all levels before implementation of land occupation.

Table 4-1 Entitlement Matrix Affected Affected Responsible Policy of Land Acquisition and Compensation Standard type object Agency Resettlement Item Rate 1. The compensation for all the Residetial Houses houses shall be paid according to Brick-concrete CNY 630/m2 replacement value, and no depreciation is deducted. The Associated Facilities Stockyard materials available from old houses CNY150/m2 belong to the relocatees, and they shed also can use them to build new Infrastructure houses. Land levelling, 2. The resettlement organ will help water and CNY1500/person the resettlers move to their new power houses, and each person shall get supply 1500 yuan as compensation for Relocation Subsidy infrastructure such as drinking and Houses in lighting facilities. Residential brick-concrete LRPCMO, 3. Moving and transfer allowance house and 200m2 and Longwantao will be paid including moving accessorial associated Village charge. facilities corral of 150 4. Compensation fee for houses m2 shall be paid to the resettlers before the construction of new house. Relocation 5. APs have already been allocated CNY280/person house plot in the same village. In Fee addition, the affected household was allowed to build houses for fish farming purpose somewhere else around the water surface. 6. Production skill training for APs. 7. Temporary job opportunities will be offerred during the project construction stage. Young arbor Young Arbor tree trees: CNY 4 each Trees 2200;timber Timber CNY 60 In the project compensation fee or trees: 2500; each Trees LRPCMO replanting cost for the scattered young fruit Young tree trees shall be paid directly to owners trees 200; fruit CNY50 each Fruit Trees trees in Harvest tree harvest: 800 CNY 400 each 1. The temporary land occupation Dryland, Compensation will last for nomore than one year orchard and CNY1,200/mu and compensation will be based on shrubland one year output value Borrow-area: Dryland: 19.3 2. The temporarily used land will be CNY 3,300/mu mu; orchard: restored after occupation by Temporary LRPCMO, 15 mu and contractor and the land restoration land use County LAB shrubland : 35 will be inspected and accepted by Land mu both of affected people and County Resroration Other Land: CNY LAB. The land restoration cost will 1,000/m be paid to contractor who responsible for land restoration activities. Canal: 50 m2; All the special facilities affected by LRPCMO and 10KV line: CNY80,000/km 380v electrical the project shall be rebuilt according relevant Canal: CNY 60/m2 Specialities poles: 29; to the actual conditions affected by special 10kv power the project, original standard, scale 380v Electrial pole: CNY 1500 department line: 1.2 km and function. each

4.5 Compensation Standards 4.5.1 Compensation Standards for Temporary Land Use

31. The temporary use of land will be compensated bsed on the actural occupation period. According to the “Notice on the Adjustment of Land occupying Annual production And Compensation Standard, which is forwarded by General Office of Shandong Provincial People’s Government, and issued by Shandong Province People's government Office” Luzhengbanfa [2004] No.51, project influenced area, Sishui County, belongs to the fourth-class areas. The Annual Average Output Value (AAOV) of the fourth-class area is 1,200 Yuan per mu. In the project, all land will be used temporarily for less than one year, so the compensation rate will be the annual output value, i.e. CNY 1,200/mu.

32. In addition, the land will be restored to its original use after the completion of the engineering works. The restoration of borrow-area include earth refilling for plowland with consideration of surface soil collection and earth transportation of distance. The depth of borrow-pit is no more than 1m. The earth for refilling is 666.7m3/mu. The cofferdam earth can be used for refilling after the demolishment of the cofferdam Earth price is CNY 5/m3 with transportation distance of 150m. The earthestoration rate of borrow-area is CNY 3,300/mu. For the land used for other purpose, including temporary road, stockyard, construction camp and spoil area, the restoration rate is CNY 1,000/mu with consideration of surface soil collection of 0.3 m, earth transportation distance of 100m and earth unit parice of CNY 5/m3.

4.5.2 Compensation Rate for Resendential and Associated Structures

33. Compensation rate for residential and associated structures is decided based on “Circular of Shandong Provincial Government Concerning the Approval of the Associated Auxicillaries Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)” and the result of field survey. In addition, the relocation fee will be paid based on the rate in similar project. The relocation subsidy is CNY 280 per capita. The affected household has already been allocated housing plot in the same village and the infrastructure subsidy is CNY 1,500 per household. Table 4-2 presents the details.

Table 4-2 Compensation Rate and Relocation Subsidy for House Demolition Items Unit Compensation Rate (CNY) Brick-Concrete Houses m2 630 Corral m2 150 Relocation Subsidy person 280 Infrastructure Subsidy household 1,500

4.5.3 Compensation Standards for Attachments 34. Affected ground attachments and infrastructure will be compensated for based on replacement cost. For details see Error! Reference source not found.. Table 4-3 Compensation Standards for Attachments Item Unit Compensation Rate (CNY) Canal m2 60 380V Electric Pole No. 1,500 10kv Power Line km 80,000 Young Trees No. 4 Mature Timber No. 60 Young Fruit Trees No. 50 Fruit Trees in Harvest Phase No. 400

5. Rehabilitation Measures 5.1 Objectives of Resettlement 35. The objective of resettlement is to compile a resettlement and rehabilitation action plan for APs to ensure their living standard can be improved or at least recovered to the former level after project construction.

5.2 Rehabilitation Plan for House Demolition 36. One household of Longwantao village will be relocated due to the construction of aqueduct. The affected houses was built within reservoir engineering management scope and for fish farming purpose. The affected household has been allocated housing plot in the same village. All compensation on house and associated structures will be paid directly to affected household. Meanwhile, the relocation subsidy will be paid at the rate of CNY 480/person. Cost for restoration of water and power supply and land leveling is calculated and will be paid to affected household at the rate of CNY 1,500 per household. Meanwhile, the affected household was allowed to build houses for the fishing farming purpose somewhere else around the water surface. After consultation with the affected household, he will build the houses and water and power facilities themselves.

5.3 Rehabilitation of Temporary Land Use Temporary land use for Borrow Area

37. The borrow area will use 5 mu dryland for strengthening of the dam and spillway. The depth of borrow-pit will not more than 1 m. Before construction activities, the surface fertile soil of 30 cm will be collected. After completion of construction, the cofferdam will be demolished and the earth will be used for refilling of plowland. The land will be leveled and the top soil will be revovered. The reclaimation rate is CNY 3,300/mu. All land will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

Temporary Land Use for Construction Arrangement

38. 64 mu land will be used for construction arrangement, including construction camps , temporary road, stockyard and temporary road. Before construction activities, the surface fertile soil of 30 cm will be collected. During the construction period, the land may be hardened. After the completion, the land will be plowed and loosened and the top soil will be revovered. The reclaimation rate is CNY 1,000/mu. All land will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

5.4 Job Opportunities from the Project

39. About 120~150 temporary unskilled job opportunities will be created during the project construction stage. In the project construction stage, the main unskilled job opportunities include manual laborers for foundry worker, excavation, material handling, greening etc.

40. According to the survey, since the affected villages are located near the construction site, they may have more spare time due to the temporary land use of their farmland. They hope to join the project construction. LRPCMO will arrange the jobs and training for them as a priority.

5.5 Income Restoration Plan of Women 41. In the stage of RP preparation, the affected women were organized to actively participate in the survey of project impacts so as to understand their ideas on income restoration. As a

result, women hold a positive attitude toward project construction by thinking that the project will help improve the environment and improve the flood control.

42. Women will fully participate in the compensation activities through the information disclosure and village meetings; they have equal entitlement with men in receiving compensation and employment. In addition, the following measures will be taken to improve women’s income:

1) During the project construction, LRPCMO has ensured that the affected women will be given priority in unskilled jobs, including food and cleaning service. As per labor laws, women will get equal pay to men for the same work.

2) Technical training program including livestock techniques and new agricultural planting skills etc. will be provided for the affected female laborers to ensure their income would be restored or improved after temporary land loss.

5.6 Training for the Affected Persons 43. To ensure the income of the APs will be restored in a sustainable way, SWRD will cooopearte with Sishui Animal Husbandry Bureau and Agricultral Bureau to provide free skill training programs regularly. The skill training programs include animal raising techniques, and introduction of high-yielding and efficiency cropping pattern and planting structure improvement model, etc. to support the future agricultural development of affected people when land will be returned to them. The training plan is shown in 44. Table 0-1.

Table 0-1 Schedule of Training for APs No. Time Place Manner Recipients Contents Workshop, High-Yielding and Efficiency 1 Jan. 2010 Town APs Lecture CroppingPpattern Workshop, 2 March 2010 Town APs Animal raising Lecture, 3 Other irregular technical trainings APs Not determined yet

6. COST ESTIMATE 6.1 Resettlement Cost 45. The estimated cost of land acquisition is CNY1,046,531 in 2009 prices, including contingency. In terms of the categories of resettlement impacts, compensation of temporary land use and land restoration is CNY 163,960, accounting for 15.65% of the total resettlement cost; compensation for residentiral and associated structures and reloction subsidy is CNY 151,400, accounting for 14.55%; compensation for attachments and special facilities is CNY 611,800, accounting for 58.40%.Table 6-1 provides the cost estimation of LAR.

Table 6-1 Budget of Land Acquisition and Resettlement No. Items Unit Rate(CNY) Quantity Budget(CNY) 1 Land Compensation 1.1 Temporary Land Occupation mu 1,200 69.3 83,160.00 1.2 Land Restoration Cost mu Borrow Area mu 3,300 5 16,500.00 Other Land mu 1,000 64.3 64,300.00 2 Residential Structures Brick-concrete Houses m2 630 200 126,000.00 Corral m2 150 150 22,500.00 3 Relocation Subsidy Relocation Fee Person 280 5 1,400.00 Infrastructure Subsidy Household 1,500 1 1,500.00 4 Ground Auxcillaries Young Trees No. 4 2200 8,800.00 Mature Timber No. 60 2500 150,000.00 Young Fruit Trees No. 50 200 10,000.00 Fruit Trees in Harvest Season No. 400 800 320,000.00 5 Restroration of Special Facilities Canal M2 60 50 3,000.00 380V Electrical Pole No. 1500 24 36,000.00 10 kv Power Line km 80,000 1.05 84,000.00 Subtotal( 1-5) 927,160.00 6 Other Costs Design and Reserch Cost 3.00% 927,160 27,814.80 Impelmentation Management 3.00% 927,160 27,814.80 Technical Training 0.50% 927,160 4,635.80 Monitoring 1% 927,160 9,271.60 Sub-total (1-6) 996,697.00 7 Contigencies Basic Contigencies 5% 996,697 49,834.85 Total 1,046,531.85

6.2 Management and Disbursement of Resettlement Funds 46. Sishui County Water Resources Bureau will provide the entire fund for resettlement activities and ensure that land acquisition and resettlement budgets are delivered on time for

timely implementation of the RP. All LAR cost will be paid in 1 year. Land compensation and resettlement subsidy will be disbursed in full consultation with the APs. Compensation for attachments and infrastructure will be paid to the affected unit or individuals directly.

47. In order to ensure the funds for land acquisition and resettlement is paid to the APs in full and in a timely manner in line with the compensation policies and standards of the resettlement plan, a strict fund appropriation plan has been established, the principles of which are as follows:  All the costs related to resettlement are covered in the general budget of this project.  The land compensation and resettlement subsidy must be paid up before thef land occupation;  To ensure the land compensation and resettlement will be implemented successfully, financial and supervisory agencies will be set up to make all funds appropriate in a timely manner.  The budget is based on the resettlement cost estimate. The resettlement costs may increase due to changes in the actual resettlement impacts and other factors such as inflation. As the actual changes occur in the project, Sishui PMO guarantees the payment of compensation based on the detailed measurement survey (DMS) of the actual impacts. Meanwhile, the resettlement budget includes a contingency cost and will be modified based on the actual needs.

7 POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA 7.1 Background

48. Since the founding of new China, a number of large and medium-sized reservoirs have been constructed and brought into huge benefits in flood control, power generation, irrigation and water supply and ecological aspects. A large mumber of resettlers of large and medium-sized reservoirs made major contributions to effectively promote the national economy and social development. But due to the low support level and insufficient direct benefit to resettlers, at present their production and living conditions are still generally poorer. In order to help them to improve production and living conditions, the country has established the reservoir area construction fund, the maintenance of post-resettlement support fund, and try to solve the remaining resettlement issues in reservoir area. To help the resettlers in reservoir shaking off the poverty and promote the economic and social development in the new period, the central government of PRC issued the “Suggestions on Perfecting Post-resettlement Support Policies for Large and Medium-sized Reservoirs Resettlers” in 2006 (Guofa [2006]No.17).

49. Based on the document of central government and corresponding Provincial document(Luzhengfa [2006]No.84), in 2007 Sishui County Government formulated the Post-resettlement Plan for the period of 2006-2010. Resettlers of Longwantao Reservoir Area are the targeting group of the plan.

50. Based on the “Shandong Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs”, the total resettlers are 8,527 of 58 villages in 6 towmships, of which 7,146 APs was involved in overall relocation of 8 villages in 2 townships ( Shenshuiyu and Jihe Subdistrict) and 1,381 APs was relocated in disperse resettlement in 50 villages of 6 townships. 8,527 people were identified as the support target of Longwantao Reservoir.

7.2 Post-resettlement Support Approaches 51. Based on the “ Management Method of Post-resettlement Suport Fund of Large and Medium-sized Reservoirs in Shandong Province”, the support fund can be paid directly to resettlers or be used in actual development programs. In Sishui county, after full consulatation with affected people, all support fund has been paid to resettlers directly at the annual rate of CNY 600/person. The support will last for 4 and a half year in the duration of 2006-2010. The total cash payment will be CNY 23.03 million for resettlers of Longwantao reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006. The details of such programs and implementation status of Longwantao Reservoir Area is presented in Table 7-1. It is planned that 4 development programs have been or will be implemented in reservoir area villages from 2006 to 2010, including water resources facilities and farmland improvement, transportation works, education and entertainment facilities, and domestic water supply works. It is ecpected through the improvement of infrastructures the living condition of people in Longwantao Reservoir Area will be better-off.

Table 7-1 Post-resettlement Support Program of Longwantao Reservoir Beneficiaries of Investment Programs Contents Progress(%) Resettlers (No.) (CNY 104) Water Resources Well drilling, pipeline installation, Facilities and Farmland irrigation equipment, water storage 8,438 714.3 0 Improvement pond, terrace plowing, etc. Transportation Village-village road, farming road 6,177 377.8 0 Education and School and amusement building, 4,537 196.8 37.34% Entertainment Facilities teaching-learning facilities and campus

greening Well drilling for improvement of Water Domestic Water Supply 11 3 0 Resources Total 1291.9 4.95%

7.3 Post-resettlement Support Budget in Reservoir Area 52. In Sishui county, after full consulatation with affected people, all support fund has been paid to resettlers directly at the annual rate of CNY 600/person. The support will last for 4 and a half year in the duration of 2006-2010. The total cash payment will be CNY 23.02 million for resettlers of Longwantao reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006. The total budget of the programs is CNY12.92 million and the overall progress is 4.95% in terms of the expenditure of the investment. The progress varies in different programs. The cost of all post-resettlement support programs was from the increase in power price of state grid. Due to the economic recession in 2008 and 2009, the power price failed to reach the expected lavel which lead to limited fund source available for post-resettlement program. It is expected the situation will be a favorable turn with the economic recovery. Table 7-2 presents the details of the budget of the programs. Table 7-2 Investment of Post-resettlement Support Programs and Implementation of Longwantao Reservoir Area Budget Budget Beneficiaries of Progress Programs Township Disbursement (CNY104) Resettlers (No.) （%） (CNY 104) Water Resources Jihe Subdistrict 105.3 3,146 0 0 Facilities and Farmland Sizhang 17 83 0 0 Improvement Shengshuiyu 592 5,209 0 0 Shengshuiyu 128 2,776 0 0 Transportaion （Road） Jihe Subdistrict 247.8 3,399 0 0 Sizhang 2 2 0 0 Sihe Subdistrict 4.5 8 0 0 Education and Shengshuiyu 21 1,881 0 0 entertaiment Facilities Jihe Subdistrict 171.4 2,648 64 37.34 Domestic Water Supply Zhongce 3 11 0 0 Total 1291.9 64 4.95

8. IMPLEMENTATION SCHEDULE

53. The resettlement is scheduled to begin in January 2010 and complete in November 2010, with reflecting the linkage and consistency between the time schedule of LAR and civil works construction tasks. Civil works will not begin before compensation for the APs are paid in full, which is in accordance with the recently promulgated State Council Decree #31. All compensation for residendial structures and ground auxicillaries will be paid before construction. Table 8-1 provides the resettlement activities and supervision milestone. Based on these surveys, the short RP will be updated and submitted to ADB for review and approval.

Table 8-1 Resettlement Activities Milestone Responsibilities Progress No. Compensation Task Targets Deadline Agencies Status 1. Information Disclosure 1.1 -Resettlement Plan disclose 60 households LRPCMO 2009.12 Completed or 220 persons of Longwantao Village 1.2 -Publish Compensation Plan on ADB 2010.01 Planned ADB website 2. Approval of RP & Budget SCG 2009.12 Completed 3 Compensation Agreement 3.1 -Temporary Land 60 AHs LRPCMO, County LAB 2010.03~2011.03 Planned Compensation 3.2 -Households Relocation 1 AHs LRPCMO 2010.03 Planned 4 Monitoring and Evaluation 4.1 -Baseline Survey (additional) one village LRPCMO 2010.01 Planned 4.2 -Establish Internal M&E As per RP SCWRD, LRPCMO 2009.09 Completed mechanism 4.3 -Sign contract with External SPMO, LRPCMO 2010.01 Planned M&E agency 4.4 - Internal M&E Report Quarterly LRPCMO, SCWRD, SPMO 2010.03 Planned Report 4.5 - External M&E Report Semi-annual LRPCMO,,IMA 2010.07, 2010.12, Planned Report in 2010; 2011, 2012 two annual evaluation reports 4.6 -Resettlement Completion 1 Report HRPCMO, SCWRD, SPMO 2011.12 Planned Report 5 Consultation documentation LRPCMO /VC Ongoing 8 Grievance and appeal files LRPCMO /VC Ongoing 9 Capital/compensation payment 9.1 - Paid to affected people “ “ “ LRPCMO 2010.03~2011.03 Planned 10 Post Resettlement Support 10.1 - Household subsidies Cash payments SCWRD, SPMO Up to 2010 10.2 - Rehabilitation Programs 5 programs SCWRD, SPMO 2011.12

9. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS 9.1 Public Participation 54. The RP was prepared with full public participation and full information sharing with APs. The LRPCMO has informed the resettlement policies to all the APs via socio-economic survey, social impact survey and other communication and consultation channels. LRPCMO also has consulted with various affected persons through consultation meetings. Through wide consultation, coordination and communication, related local government, affected villages and APs can fully understand the resettlement impacts, resettlement policies and formulate feasible income restoration measures.

55. LRPCMO has contacted with the affected village committee in August 2009, and discussed the Project and compensation costs, compensation policies, entitlement, and impacts of the Project on the village and APs. LRPCMO will sign the compensation agreement with APs in January 2010. The RP approved by SCG will be redistributed to village committee in December 2009 to any one wishing to consult the document at the affected village. Copies of the short RP will be kept in the Project office and affected VC. At the same time this short RP will be posted on the ADB’s website in January 2010. The public consultation activities and schedule is presented in Table 9-1.

Table 9-1 Public Consultation Activities and Schedule Organizations Objectives Task Date Participant Involved 1. Inform and discuss Release of location and August 2009 LRPCMO, VC and Representatives of issues related with LA; area of LA, compensation VillagerRrepresentatives each organization Obtain suggestion or standards, and advices resettlement, etc. 2. Survey on affected Field survey of affected, September LRPCMO and VC Representatives of physical index, and physical index, and 2009 each organization preparation of RP socioeconomic status of affected households 3. Compensation Agreement of November LRPCMO , Sishui LAB Representatives of agreement signed with complementation 2009 ~ and affected People each organization Affected People standards, and grievance November appeal procedures 2010 4. RP disclosure on ADB Release of draft RP January 2010 ADB website 5. Recheck of Physical Check of faults, November LRPCMO and VC Representatives of indicators and release of verification of affected 2009 each organization Final RP quantity or extent 6. Implementation of Final Verification and January LRPCMO , Sishui LAB Representatives of RP implementation of Final 2010~November and affected People each organization RP 2010 7. Monitoring & Survey on the January 2010 LRPCMO,VC, and IMA Socioeconomic Evaluation of RP rehabilitation of APs after sample survey resettlement implementation 9.2 Grievance Procedure 56. During the preparation and implementation of the RP, public participation is encouraged, and thus there should not be any major issues or grievances. However, some unforeseen issues may occur during such process. In order to settle such issues effectively and make the construction and land acquisition implement successfully, an effective and transparent channel for lodging complaints and grievances has been established. The basic stages for grievance redress are: Stage 1: The APs submit an oral or written petition/complaint to the village committee. For an

oral complaint, the village committee must make written records properly and give a clear reply within 2 weeks. Stage 2: If the complainant is not satisfied with the reply in Stage 1, he can appeal to the township government/sub-district office after receiving the reply in Stage 1 and the township government/sub-district office will deal with the complaint within 2 weeks. Stage 3: If the affected person is still not satisfied with the reply of township government/sub-district office, he can appeal to Sishui Land Resources Bureau and Sishui Land Resources Bureau must give a reply within 30 days. Stage 4: If the affected person is still not satisfied with the reply of Sishui Land Resources Bureau, he can appeal to SPMO after receiving the reply of Stage 3. They also have the right to appeal to the civil court within 3 months of receiving the reply. 57. Besides the established channel above, the external monitor can also receive grievances from APs and the APs can even submit directly to ADB3. The appeal process, institutions, sites, leaders, and telephone numbers for redress of grievances will be publicized to APs via meetings, notices and the information handbook. In this way, the APs will fully realize their rights of appeal. Meanwhile, the system of information dissemination will be strengthened through use of the media, and all APs feedback will be compiled and distributed to all involved organizations.

58. Relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered by the contingency of the project. During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues.

3 ADB has an Accountability Mechanism to ensure policy compliance. APs are required to seek grievance resolution using the above procedures, but if they still believe that their concerns have not been resolved in accordance with this RP or ADB's Involuntary Resettlement Policy (1995), they may submit a complaint to ADB. The procedures are provided on ADB's website: http://www.adb.org/Accountability-Mechanism/default.asp

10. Institutional Arrangement

10.1 Responsible Institutions for Resettlement Implementation 59. The departments responsible for planning, implementation, management, and monitoring of the resettlement activities of the Sishui Huancun Resevoir ADB Loan project are:  Longwantao Reservoir Project Construction Management Office of Sishui Water Resources Department  Longwantao Reservoir Administration Bureau  Sishui Land Resources Bureau  Sub-district offices/ township governments  Villagers committees/ affected communities  Design Institute. 60. Sishui Water Resources Department is in charge of resettlement investigation, development of the RP and implementation of land acquisition.

61. Longwantao Reservoir Project Construction Management Office of Sishui Water Resources Department is the specific implementing agency, which is responsible for the socio-economic investigation, coordinating with Sishui Land Resources Bureau, governments and the affected village committees, and implementing the work of land acquisition and resettlement.

62. Sishui Land and Resources Bureau is responsible for directing the implementation of resettlement, organizing and coordinating.

63. Sub-district offices/ township governments are responsible for the project impact investigation, and assisting the Sishui Land and Resources Bureau to sign relocation agreements with land departments and the APs in order to implement land occupation and resettlement successfully.

64. Affected village committees/ communities are responsible for providing the land contract, assisting or participating in the various surveys and the work of land acquisition; community mobilization activities for publicity, and undertaking the verification of the measurement, valuation and finalization of demolition agreements after APs negotiations together with the relevant technical personnel.

65. Design institute is responsible for the design of the project and defining the scope of affected land, buildings and assets.

66. The staffing of institutional arrangement for LAR is presented in Table 10-1

Table 10-1 Staffing of Institutional Arrangement for LAR Staff (No.) Name of Institution Personnel Composition Male Female Longwantao Reservoir Project 2 Officials Construction Mangament Offcie Longwantao Reservoir Managment 3 1 Technicians Bureau JIhe Subdistrict Office 1 Official Sishui County Jihe Subdistrict LAB 1 Officials Longwantao villages committee 3 1 Cadres and representatives of APs

TOTAL 10 2

10.2 Training Plan for Resettlement Management Staff 67. A system for staff training and human resource development will be established at all levels of resettlement management institutions. The training plan is organized by SPMO, and the form of training will include specialist lectures, technical training seminars, inspection of other similar projects and site training, etc. The training plan is shown in Table 10-2, while the training contents will include: resettlement principles and policies, planning and management of projects with resettlement, resettlement planning and design, resettlement progress management, resettlement financial management, resettlement quality control, management information system, resettlement monitoring assessment.

Table 10-2 Schedule for Resettlement Implementation Training Training Time Location Recipients Training content methods Centralized Resettlement work Feb. 2010 Jinan City Resettlement business training course staff Learn from Key personnel of The implementation site visit of the ADB Jun. 2010 Domestic demonstration the office project Resettlement work Discuss the resettlement experience and Oct. 2010 Jinan City Seminars staff the problems

11. MONITORING AND EVALUATION

68. In order to ensure the successful implementation of the RP and accomplish the objectives to achieve appropriate resettlement, monitoring and evaluation should be carried out for the implementation of resettlement in accordance with the requirement of the ADB resettlement policies. The monitoring include both internal and external.

69. LRPCMO will be responsible to supervision resettlement activities and report progress. During resettlement implementation, key activities or issues, when relevant, will be included in the Quarterly Progress Reports that are to be submitted to ADB.

70. The independent monitoring and evaluation is done by an independent monitoring agency (IMA). The IMA will carry out regular monitoring and evaluation to the resettlement activities.

71. The IMA, approved by ADB and SPMO, will undertake the independent monitoring of the Project in respects of: (i) extent of consultation undertaken with APs; (ii) compensation disbursement to the APs and affected village or group; (iii) production and livelihood rehabilitation measures for the APs; (iv) schedule of above LAR activities; (v) compliance with the policies and regulations of the resettlement plan; (vi) participation and consultation during the project implementation; (vii) grievances, problem resolution and follow-up; (viii) staffing, training, schedule and work efficiency of the resettlement officers. The IMA, being independent of the project, will inspect the whole implementation from an overall and long-term point of view. The IMA will put forward proposals to LRPCMO, FCPMO and HPMO in time so that the problems taking place in the implementation of the resettlement can be solved as soon as possible. The terms of reference for external monitoring and evaluation is presented in Appendix 2.

72. The major external monitoring and evaluation indicators are as follows:

(1) M&E on Progress of Land Acquisition Implementation: i) progress of land acquisition; ii) progress of temporary land occupation; and iii) progress of project impacts;

(2) M&E on Fund Disbursement and Usage: i) Fund disbursement; and ii) Fund usage (planning and actual fund usage).

(3) M&E on Rehabilitation of APs’ Production and Livelihood: i) Production and living conditions of the APs before land acquisition; ii) Production and living conditions of the APs after land acquisition; iii) Analysis and evaluation of employment and living condition before and after the resettlement; and iv) Grievance mechanism and problem resolution.

(4) M&E on capabilities of resettlement institution, public participation, grievance and appeal procedures.

Appendix 1 Applicable Laws and Regulations The Applicable Provisions in Land Administration Law of the People’s Republic of China

Article 57 Where land owned by the State or by farmer collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration department of a people’s government at or above the county level. However, if the land to be temporarily used is located in the area covered by city planning, the matter shall be subject to agreement by the city planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee, and pay compensation for it in accordance with the provisions of the contract. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years

The Implementation Regulations of Shandong Province for the PRC Land Administration Law

Article 27 Ground attachments and young crop compensation rate for acquired land should be as follows: (1) Young crop compensation is calculated at output value of one crop rotation; (2) As for the tree on acquired land, transplant should be organized if possible; the labor cost for the transplanter and loss of sapling should be compensated for. If trees are impossible to transplant, compensation should be pay after evaluation. (3) The attachments on acquired land shall be compensated for by converting into money according relevant regulation, or by reconstructing the same quality and same quantity as the former. (4) Trees and green seeding planted during land acquisition period will not be compensated for, so are the constructions building during land acquisition period. Constructions and other establishments built on illegal-occupied land will not be compensated for. Article 39 Compensation rate for temporary land occupation should be as follows: (1) When construction land within urban planning district is occupied temporarily, compensation should be calculated at the price of land use right in corresponding period. When construction land out of urban planning district is occupied temporarily, compensation should be calculated according to local temporary occupation compensation rate for common farmland. Ground attachments destroyed should be compensated for appropriately according to the actual condition. (2) Temporary farmland occupation should be compensated for according to AAOV for the three years preceding such acquisition; ground attachments destroyed should be compensated for appropriately according to the actual condition. (3) Temporary unused land occupation should be compensated for at 30% of the compensation rate for common farmland. The temporarily occupied farmland should revert by the construction entity within one year

after expiry of temporary occupation.

Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Acquired Land (Lu Zheng Ban Fa [2004] No. 51)

Define the lowest standard of AAOV. According to the socio-economic condition of different places, the AAOV is divided into 4 types in Shandong Province in reference to the compensation for newly added construction land use. The detail standards are as follows: the first district is 1,800 Yuan/mu, the second district is 1,600 Yuan/mu, the third district is 1,400 Yuan/mu, and the fourth district is 1,200 Yuan/mu. The lowest AAOV is 1,000 Yuan/mu out of the urban planning area in the whole province. According to the socio-economic condition and difference of corps, municipal government can be compile specific, implementing standards on the basic of the lowest AAOV. And the modified standards should be submitted to Price-Fixing Bureau, Financial Bureau, and Land Recourses Bureau of Shandong Province.

Appendix 2 Terms of Reference for External Monitoring A Objectives of resettlement monitoring and evaluation In accordance with the requirements of ADB’s resettlement policies, it is to undertake external monitoring and evaluation for resettlement of Risk Mitigation of Endangered Reservoir Project in Shandong Province. Through monitoring the progress, funds mobilization and management of land acquisition, demolition and resettlement, it is to analyze and compare the changes and restoration of the production and livelihoods of the affected people, and thus to provide with follow-up evaluation in this connection. In addition to the regular reports (twice a year in resettlement implementation period) respectively submitted to ADB, JPMO and relevant competent authorities. This process shall also provide information and suggestions to all departments for reference in policy making. Through external monitoring and evaluation, ADB and the project administrative agencies may have full understanding of the conditions and existing problems of land acquisition, demolition and resettlement, such as timely implementation of the resettlement plan, full achievement of the expected targets as well as the suggestions for improvement etc. B Major contents of resettlement monitoring and evaluation (1) Baseline Survey should include: (i) family information; (ii) household annual income and expenditure; (iii) affected land production and income loss; and (iv) affected informal land production and income loss. (2)Monitoring and evaluation of the progress of land acquisition include: (i) progress of land acquisition; (ii) progress of temporary land occupation; and (iii) progress of house demolition and reconstruction. (3) Monitoring and evaluation of funds mobilization and utilization include: (i) situation of in-place funds; and (ii) utilization of funds (planned and actual). (4) Monitoring and evaluation of living standards of relocated of people include: (i) production and living conditions before displacement; (ii) production and living conditions after displacement; and (iii) comparative analysis and evaluation of the employment and living conditions before and after displacement. (5) Evaluation of the capacity of resettlement institutions and the situation of public participation and complaints handling. C External Monitoring Agency The external monitoring agency in this project will be undertaken by an external institution entrusted by SPMO and accredited by ADB. D Organization and work division for resettlement monitoring and evaluation  SPMO entrusts external institutions take charge of the investigation, date collection, computing and analysis about the monitoring and evaluation work, and review the research results;  The external monitoring institutes compose the Monitoring and Evaluation Group of the Risk Mitigation of Endangered Reservoir Project, the tasks of which conclude monitoring and evaluating the resettlement according to the Involuntary Resettlement Policy of ADB; designing an outline of the monitoring and evaluation work; setting the monitoring spot; monitoring field investigation and internal analysis; and preparing monitoring and evaluation reports;  SPMO provides convenience on personal and traffic to Independent Resettlement Monitoring and Evaluation Institution during on-the-spot monitoring and investigation.

E. Methods of resettlement monitoring and evaluation.  Monitoring and evaluation shall adopt the combined methods of site survey, computational analysis and expert review;  The method of point-area method shall be adopted in the survey. The progress, funds, organizations and management of resettlement implementation shall be fully explored; the progress, funds, organizations and management of the resettlement implementation shall be fully explored. While sample survey shall be conducted for the APs.  The random sampling method shall be adopted in the sampling survey, while the typical samples shall be followed up for survey. (Samples are taken and categorized among all the affected households involved in the socio-economic surveys at the project preparatory stages. It is primarily decided that 10-15 households affected by land acquisition and 20-30 households affected by informal farmland occupation are sampled. All of the vulnerable groups if any are surveyed as sample families). The methods of tabular format survey, interview discussion, archives consultation etc. shall be adopted in the full-coverage survey.  In addition to the written materials, other materials such as photos, recordings, videos and articles in-kind shall be also collected. F M&E Report for resettlement external monitoring According to the requirements of ADB and the project schedule, the external monitoring and evaluation agency would submit the monitoring report and the evaluation report to ADB and SPMO periodically (usually twice a year).