Due Diligence Report of Resettlement

Project Number: 48443-002 April 2021

People’s Republic of : Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project

For Contract Package No.: C-LS03

Prepared by Lanshan County Government of Hunan Province for the People’s Republic of China and the Asian Development Bank

This due diligence report of resettlement 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.

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

Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project

Resettlement Due Diligence Report (Updated Version)

Of

Subproject of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project (Contract Package No.: C-LS03)

Lanshan County Government of Hunan Province April 2021

Currency Conversion Ratio (Exchange Rate in April 2021)

Monetary Unit = CNY (RMB) RMB 1.00 = $0.153

English Abbreviations

ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FSR - Feasibility Study Report HD - House Demolition IA - Implementing Agency LA - Land Acquisition M&E - Monitoring and Evaluation PRC - People’s Republic of China LCG - Lanshan County Government RIB - Resettlement Information Booklet RP - Resettlement Plan

Unit of Measure 1 hectare = 10000m2 1mu = 666.67m2 1 hectare = 15 mu

Table of Contents Update Description ...... 4 A Background ...... 4 B Changes of Land for Project Use ...... 4 C Update Description of Resettlement Plan ...... 5 1 Background ...... 6 2 Investigation Method and Process...... 6 3 Introduction to Sub-project ...... 7 4. Final Design ...... 8 5. Land Acquisition Scope and Impact of House Demolition...... 9 6. DDR Conclusions ...... 10 Annex 1 Review and Approval of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project ...... 11 Annex 2 Stub of Approval Form for National Construction Land of Lanshan Xiaowujia Solid Waste Landfill in 1986 ...... 16 Annex 3 Land Acquisition Agreement of Lanshan Xiaowujia Solid Waste Landfill in 1986 ...... 19 Annex 4 Construction Land Planning Permit for Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project ...... 21

Update Description A Background The Due Diligence Report (DDR) should be read together with the Resettlement Plan (RP) of Lanshan County, Hunan Province jointly approved by Municipal People’s Government and Asian Development Bank in May 2018 (https://www.adb.org/projects/documents/prc-48443-002-rp-4). This Resettlement Plan is based on the preliminary design reply opinions approved in October 2019 and updated on the basis of the latest design results. Table 1 Approval Status and Update Plan of Preliminary Design of Lanshan County Sub-project Has the preliminary Update time of design review been Resettlement S/N Name of Sub-project completed by the Plan or due preparation date of the diligence report report Closure of Existing Lanshan 1 Yes 2021.4 Jiufenshan Solid Waste Landfill Upgrading and Reconstruction of Qijia 2 Village Existing Sanitary Landfill in Yes 2021.6 Lanshan County Existing Lanshan Xiaowujia Solid 3 Waste Landfill Off-site Transfer Yes 2021.4 Project Urban and Rural Waste Collection 4 and Transportation in Lanshan Yes 2021.6 County The purpose of the Due Diligence Report (DDR) is to comprehensively review the land acquisition and resettlement work of the Project, and evaluate whether the land acquisition and resettlement involved in the Project meet the requirements of the Land Administration Law of the People's Republic of China, relevant resettlement laws and regulations of Hunan Province and Yongzhou City, and compensation and resettlement policies; Check the work flow, implementation progress, fund management and resettlement effect of land acquisition and resettlement, and evaluate the current situation and satisfaction of resettlement production and living standards; Find out the leftover problems in land acquisition and house demolition, and put forward feasible suggestions. B Changes of Land for Project Use The preliminary design of the Subproject of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project passed the preliminary design review in November 2020. See Annex 1 for the review opinions. See Table 2 for the comparison of changes in land use. Table 2 Comparison of Land Acquisition and Resettlement in the Preliminary Design of the Project Preliminary Is there S/ Feasibility Project name Unit design any N study stage stage change Location of land Xiaowujia Xiaowujia 1 None acquisition Village Village 2 Area of construction land Mu 30 8.19 Reduction Is the land use area 3 Part of it is Yes Yes state-owned Is there any new land 4 acquisition or house Yes None Yes demolition

C Update Description of Resettlement Plan In 2018, the original plan of the Project was closure treatment for expansion. After the expansion, the total land area was 30 mu, and additional 20.78 mu of land needed to be acquired. However, the design scheme was changed to be closure treatment at the original plant site without expansion. According to the red line map review of preliminary design results in 2019, the Project does not involve additional land acquisition and house demolition. According to ADB's relevant policies, Due Diligence Report needs to be formulated for the land that has been acquired in the Project. Therefore, in the Resettlement Plan (RP) of Lanshan County, Hunan Province formulated in 2018, relevant Due Diligence Report (DDR) has been formulated and reported as an annex for the Project. See Table 3 for the differences between the Plan and the Resettlement Plan (RP) of Lanshan County, Hunan Province formulated in 2018. Table 3 Comparison between 2018 Version and 2021 Version of Resettlement Plan Resettlement Due Diligence Report of The Resettlement Plan (RP) Subproject of Existing S/N Category of Lanshan County, Hunan Lanshan Xiaowujia Solid Province (2018 Version) Waste Landfill Off-site Transfer Project (2021 Version) 1 Affected land 30.00 mu 8.19 mu Implementation April 2021 2 August 2018 time Implementation Lanshan County Land and Lanshan County Natural 3 subject Resources Bureau Resources Bureau

1 Background This Due Diligence Report (DDR) should be read together with the attached report-Due Diligence Report (DDR) of Lanshan County, Hunan Province of Resettlement Plan (RP) of Lanshan County, Hunan Province jointly approved by Lanshan County Government and Asian Development Bank in May 2018 (https://www.adb.org/projects/documents/prc-48443-002-rp-4). Table 1 Approval Status and Update Plan of Preliminary Design of Lanshan County Sub-project Has the preliminary design Update time of S/ review been Resettlement Name of Sub-project N completed by the Plan or due preparation date of diligence report the report Closure of Existing Lanshan Jiufenshan 1 Yes 2021.4 Solid Waste Landfill Upgrading and Reconstruction of Qijia 2 Village Existing Sanitary Landfill in Yes 2021.4 Lanshan County Existing Lanshan Xiaowujia Solid Waste 3 Yes 2021.6 Landfill Off-site Transfer Project Urban and Rural Waste Collection and 4 Yes 2021.6 Transportation in Lanshan County The purpose of the Due Diligence Report (DDR) is to compare the project scope changes between feasibility study stage and preliminary design stage, to check if the design changes will cause any changes on resettlement plan and land acquisition. Besides, it also aims to ensure the land acquisition will fully observe relevant laws and regulations in China and be consistent with ADB's Safeguard Policy Statement. The land acquisition process is transparent and open, the affected villages and groups are properly compensated and resettled, and there will be no leftover problems after the land acquisition is completed. 2 Investigation Method and Process In December 2017, the preparation and research team visited the relevant units in Xiaowujia Village, Tafeng Town, Lanshan County, where the Project is located, collected relevant materials such as land acquisition compensation and resettlement agreement and land use approval, and interviewed some affected villages and groups. The main investigation contents of the Due Diligence Report include: Understanding the actual situation of land acquisition and house demolition, reviewing the compensation process of land acquisition and house demolition, understanding the public participation and complaints of the Project, evaluating the compensation process and payment of land acquisition and house demolition, finally drawing relevant conclusions, and formulating the Resettlement Plan (RP) of Lanshan County, Hunan Province. The content of the Project, Resettlement Due Diligence Report (DDR) of Lanshan County, Hunan Province, is an attached-report to the Resettlement Plan (RP) of Lanshan County, Hunan Province. In March 2021, according to the preliminary design review results of the Project, the preparation and research team made a re-visit to the affected villagers, village collective officials, relevant natural resources departments of Lanshan County and other stakeholders in Xiaowujia Village, Tafeng Town, Lanshan County, reviewed and investigated the data of the project land use scope and the production and living conditions of affected villages and groups, and completed the Due Diligence Report.

3 Introduction to Sub-project Sub-project of the updated Resettlement Due Diligence Report includes: Subproject of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project (Contract Package No.: C-LS03). The Xiaowujia existing solid waste landfill is located in Xiaowujia Village, Tafeng Town, Lanshan County. The Project covers an area of 9.22 mu, and the land acquisition was completed in 1986 and put into use in 1999. The Project covers no houses or structures. (In the original Resettlement Plan, closure expansion was planned for Xiaowujia Landfill, with a total land area of 30 mu after expansion. However, the design scheme was changed to be closure treatment at the original plant site without expansion. The land area for closure treatment was 8.19 mu, all within the original plant site, and no additional land acquisition was required).

Fig. 1 Schematic Diagram of Location of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project

Fig. 2 Land Use Status of Subproject of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project

4. Final Design The preliminary design of the Ecological Closure of Existing Doupi Solid Waste Landfill started in August 2019, and passed the preliminary design examination in December 2019. See Annex 1 for the review opinions. After check, the land use scope of closure component of the Project is all within the original land acquisition scope, including construction roads, leachate reservoirs and other structures within the original land acquisition red line, and no additional land acquisition, and without resettlement. Table 2 Comparison of Land Acquisition and Resettlement in the Preliminary Design of the Project Preliminary Feasibility Is there any S/N Project name Unit design study stage change stage Location of land Xiaowujia Xiaowujia 1 None acquisition Village Village Area of construction 2 Mu 30 8.19 Reduction land Is the land use area 3 Part of it is Yes Yes state-owned Is there any new land 4 acquisition or house Yes None Yes demolition

Fig. 3 Design Red Line Map of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project

5. Land Acquisition Scope and Impact of House Demolition Xiaowujia existing solid waste landfill covers an area of 9.22 mu, all of which are mountain forest land, and the land acquisition scope does not involve the resettlement of population and houses. It was acquired and converted into state-owned land in March 1986. Before the acquisition, the land was owned by the village collective of Group 22, Xinmin Village, Tafeng Town (formerly known as Gucheng Village). Due to its long history, the relevant data is incomplete. The data collected includes the Land Acquisition Approval Form and Land Acquisition Agreement (see Annex 2 and 3 for details). According to the investigation and survey of the affected villagers in the project site, the relevant land acquisition procedures have been implemented in place. After the signing of the Land Acquisition Agreement in 1986, the local government has fully and timely paid the relevant compensation fees according to the compensation agreed in the agreement. In 2018, the original plan of the Project was closure treatment for expansion. After the expansion, the total land area was 30 mu, and additional 20.78 mu of land needed to be acquired. However, the design scheme was changed to be closure treatment at the original plant site without expansion. According to the red line map review of preliminary design results in 2019, the Project does not involve additional land acquisition and house demolition. In August 2020, the Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project obtained the project construction planning permit. (Annex 4) According to the survey and investigation, the specific expenditure mode of the relevant land acquisition compensation is discussed and decided by all the villagers' group members. The main purposes of the compensation for land acquisition received by the collective include: The repair and maintenance of collective facilities, such as the maintenance of roads, cultural, recreation and clinic rooms, and the construction of public drinking water facilities; as well as the improvement of production facilities, such as the construction of water storage ponds, wells

and sublateral canals for irrigation. These compensation distribution measures have effectively improved the living standards of local villagers. 6. DDR Conclusions 1. The land for the Project is state-owned land, without affected person. This land was acquired as state-owned land in 1986, and the relevant data is missing due to its long history. Only the Land Acquisition Approval Form and Land Acquisition Agreement are available. However, according to the investigation, the land acquisition procedures in the area have been implemented in place, and the compensation fees have been fully and timely paid, without any leftover resettlement problems. 2. According to the review opinions of the preliminary design results, due to scheme changes, the construction land use scope have been reduced by 20.78 mu compared to that in feasibility study stage of the component, and it belongs to the original land acquisition scope. This component will not cause any additional land acquisition or land occupation or house demolition. There will be no affected persons due to this component.

Annex 1 Review and Approval of Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project

Annex 2 Stub of Approval Form for National Construction Land of Lanshan Xiaowujia Solid Waste Landfill in 1986

Annex 3 Land Acquisition Agreement of Lanshan Xiaowujia Solid Waste Landfill in 1986

Annex 4 Construction Land Planning Permit for Existing Lanshan Xiaowujia Solid Waste Landfill Off-site Transfer Project