RP: PRC: Hefei City Binhu New District Beilaowei Environment Improvement Subproject, Anhui Chao Lake Environmental Rehabilitatio

Resettlement Plan

June 2012

PRC: Anhui Chao Lake Environmental Rehabilitation Project

Prepared by the Project Working Group of the Hefei Municipal Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 31 May 2012) Currency unit – yuan (CNY) CNY1.00 = $0.15749 $1.00 = CNY6.3495

ABBREVIATIONS ADB – Asian Development Bank AAOV – average annual output value AH – affected household BNDCI – Hefei Binhu New District Construction & Investment Co., Ltd. CLMA – Chao Lake Management Authority HECS – Hefei Engineering Consulting Services Co., Ltd. mu – a Chinese unit of measurement (15 mu = 1 ha) PMO – project management office PRC – People’s Republic of China RP – resettlement plan

NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of China and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2012 ends on 31 December 2012.

(ii) In this report, "$" refers to US dollars.

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

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.

ADB-financed Anhui Chao Lake Environmental Rehabilitation Project

Resettlement Plan for the Hefei City Binhu New District Beilaowei Environment Improvement Project

ADB-financed Project Working Group of the Hefei Municipal

Government May 2012

Abbreviations

AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion CLMA Chao Lake Management Authority Hefei Binhu New District Construction & BNDCI - Investment Co., Ltd. Hefei Engineering Consulting Service Co., HECS - Ltd. LEF - Land-expropriated Farmer M&E - Monitoring and Evaluation MLS - Minimum Living Security NRCR - National Research Center for Resettlement PMO - Project Management Office PRC - People’s Republic of China RIB - Resettlement Information Booklet RP - Resettlement Plan

Units

Currency unit = Yuan (CNY) 1.00 yuan = $0.15 1 hectare = 15 mu

Executive Summary 1. Resettlement planning The Subproject is one of the subprojects of the ADB-financed Anhui Chao Lake Environmental Rehabilitation Project. The Subproject will play a significant role in benefiting residents living and working beside Chao Lake in health, welfare and economy, and promoting the improvement of the water quality of the Chao Lake basin through sustainable engineering and non-engineering measures, and be an integral part of the process of realizing the Five-year Environmental Protection Plan of the People’s Republic of China (PRC). In the Subproject, the Beilaowei Wastewater Treatment Plant (WWTP) will occupy 30 mu of rural collective land permanently, affecting 3 village groups of Nanhe Village, Yandun Sub-district. The Subproject will break ground in 2013 and be completed in 2014, and land acquisition, house demolition, compensation and resettlement will be started in December 2012 and end in April 2013. The estimated resettlement costs of the Subproject are 3.294 million yuan, accounting for 0.73% of the Subproject’s budget, all from domestic counterpart funds. 2. Land acquisition and resettlement In the Subproject, the WWTP will involve land acquisition, affecting 3 village groups of Nanhe Village. 30 mu of collective land will be acquired, including 29.2 mu of irrigated land (97.3%) and 0.8 mu of woodland (2.7%), affecting 19 households with 75 persons. 157 mu of land will be occupied temporarily, all being wasteland or waste pond, and no farmland will be affected. The period of occupation will be two years. In addition, the Subproject will affect some ground attachments, such as tombs, trees and telegraph poles. The Subproject will not involve in house demolition. The main resettlement impacts are summarized in the table below. Item Unit Quantity Collective land mu 30 Permanent Collective including: cultivated land acquisition mu 29.2 land Temporary land occupation mu 157 Household 19 affected by LA only Person 75 Household 0 affected by HD only Person 0 Directly affected persons Household 0 affected by LA & HD Person 0 Household 19 Total Person 75

3. Policy framework and entitlements In order to avoid or reduce negative impacts of land acquisition, adequate consultation was conducted on the potential site of the Subproject, the affected village groups and persons at the feasibility study stage. An optimum option was selected through comparison. This Resettlement Plan (RP) is based on the Land Administration Law of the PRC

(2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Anhui Province, and ADB’s SPS (2009) SR-2. According to the above policy, and in consultation with local governments and affected persons (APs), the resettlement requirements of the Subproject are: 1) Involuntary resettlement should be avoided where feasible, 2) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project, 3) The APs are given compensation and assistance in resettlement whether legal title is available or not, 4)If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land, 5) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan, 6) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations, 7) Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project, At least two members of each AH receive skills training, including at least one woman, 8) The RP is consistent with the master plans of the affected city (district/county) and township, 9)The resettlement expenses are sufficient to cover all affected aspects. 4. Resettlement strategy Compensation for permanent land acquisition includes land compensation fees, resettlement subsidies and young crop compensation fees. In Nanhu Village, Yandun Sub-district, Binhu New District, location-based integrated land prices apply, and the compensation rate for land acquisition is 52,900 yuan, including land compensation of 21,160 yuan and resettlement subsidy of 31,740 yuan. In addition, the compensation rate for young crops is 1,100 yuan/mu. In the Subproject, the river management and drainage components, and other works will occupy land temporarily. Since the land occupied temporarily is wasteland or waste pond, no compensation will be paid through consultation with the village collective. Income restoration measures for the APs include endowment insurance, cash compensation, skills training and priority employment for the Subproject. The amount of land acquisition is relatively small, and land acquisition will affect the routine agricultural production of rural households slightly. In Nanhe Village, Yandun Sub-district, through consultation with the APs, all compensation fees for land acquisition will be paid to APs. For APs with a cultivated land less than 0.3 mu per capita, they are titled to choose endowment insurance voluntarily. And if they chose endowment insurance, the land acquisition compensation will be used as follows: The land acquisition compensation will be distributed as follows: 1) 70% of land compensation fees will be used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs; 2) Resettlement subsidies will be used to pay support and self-employment subsidies, amounting to 12,000 yuan per

capita, and the remainder will be transferred to the special financial account of the endowment insurance fund for LEFs. APs shall receive a pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. The standard of pensions for LEFs shall be 260 yuan per capita-month. Compensation fees for ground attachments and young crops will be paid to their proprietors. After receiving land acquisition compensation, the affected households (AHs) will use them for soil improvement and the expanded reproduction of household sideline operations. In addition, the Hefei PMO will appropriate special funds to assist vulnerable groups together with the district and sub-district civil affairs departments. 5. Vulnerable groups and women According to the survey, all the APs are Han people. 2 households with 3 persons in Nanhe Village fall into vulnerable groups, including one household receiving minimum living security (MLS) support and one five-guarantee household, and will receive special assistance during resettlement. Not only the vulnerable APs will be resettled according to the implementation plan, but also certain assistance will be provided to improve their production and living conditions. The Subproject will affect 36 women. During subproject implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 300 person-times of APs will be trained, in which not less than 150 (50%) will be provided to female labor. A compensation agreement must be signed by the couple. During resettlement implementation, a focus group discussion (FGD) for women will be held to introduce the resettlement policies. 6. Public participation and information disclosure All APs (30% being women) have been informed of key points of this RP by various means, including meeting, interview, FGD, public participation and community consultation. The above activities are designed to involve the APs in the Subproject, and their opinions have been fully embodied in this RP. The Resettlement Information Booklet (RIB) and this RP has been distributed to the APs and groups by end of April 2012, and this RP will be posted on ADB’s website by the end of June 2012. A grievance redress system has been established. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. 7. Grievances and appeals An appeal procedure has been established to settle disputes over compensation and resettlement. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Subproject may be from collective land acquisition and land occupation. Correspondingly, the Hefei PMO, Hefei Binhu New District Construction & Investment Co., Ltd. (BNDCI), and the affected township government (sub-district office) and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. 8. Organization

In March 2012, the PMO was transferred from Anhui Provincial Government and PDRC to the Chao Lake Management Authority (CLMA). The CLMA will be the executive body of the whole project; The Hefei PMO is responsible for coordination with the CLMA. BNDCI is the implementing agency of the Subproject, and BNDCI and the Yandun Sub-district Office will be responsible for the implementation of this RP. 9. M&E and reporting In order to ensure the successful implementation of this RP, resettlement implementation will be subject to internal and external monitoring. The internal monitoring agencies are the CLMA, Hefei PMO BNCDI and other departments concerned (e.g., the land and resources bureau), and an internal monitoring report will be submitted to ADB semiannually. The CLMA will appoint an independent agency to conduct external monitoring and evaluation (M&E) semiannually, and M&E costs will be included in the resettlement budget. 10. Resettlement budget All costs incurred during land acquisition and resettlement will be included in the general budget of the Subproject. Based on prices in October 2011, the total resettlement costs of the Subproject are 3.294 million yuan, including rural land acquisition costs of 1,587,200 yuan or 48.18% of total costs, compensation fees for infrastructure and ground attachments of 45,020 yuan or 1.37% of total costs, survey and design costs, M&E costs, training costs and contingencies of 733,000 yuan or 13.01% of total costs, land taxes of 1,263,000 yuan or 38.34% of total costs, and vulnerable group support costs of 15,870 yuan or 0.48% of total costs.

Glossary

Affected People (households) affected by project-related changes in use of person (or land, water or other natural resources household)

Money or payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income

Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due Entitlement to affected people, depending on the nature of their losses, to restore their economic and social base

Income Reestablishing income sources and livelihoods of people affected restoration

Rebuilding housing, assets, including productive land, and public Resettlement infrastructure in another location

Loss of physical and non-physical assets, including homes, Resettlement communities, productive land, income-earning assets and sources, impact subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms

A time-bound action plan with budget setting out resettlement Resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring plan and evaluation

Distinct groups of people who might suffer disproportionately from Vulnerable resettlement impacts, include the disabled, five-guarantee group households, female-headed households, low-income people and ethnic minorities.

Contents 1 Overview of the Subproject ...... 1 1.1 Background and Description of the Subproject ...... 1 1.1.1 Background of the Subproject ...... 1 1.1.2 Components of the Subproject and Identification of Resettlement Impacts ..... 1 1.1.3 Summary of Resettlement Impacts of the Subproject ...... 3 1.2 Socioeconomic Benefits ...... 3 1.3 Estimated Resettlement Investment and Implementation Plan ...... 3 2. Impacts of the Subproject ...... 4 2.1 Measures to Avoid or Minimize Land Acquisition and House Demolition ...... 4 2.2 Scope of Impact Survey of Land Acquisition and House Demolition ...... 4 2.3 Survey Methods and Process ...... 4 2.4 Permanent Acquisition of Collective Land and Impact Analysis ...... 5 2.4.1 Collective Land Acquired Permanently for the Subproject ...... 5 2.4.2 Impact Analysis of Permanent Acquisition of Collective Land ...... 6 2.5 Temporary Land Occupation ...... 9 2.6 Infrastructure and Ground Attachments Affected by the Subproject ...... 9 2.7 Affected Population ...... 10 2.7.1 Summary ...... 10 2.7.2 Affected Vulnerable Groups ...... 10 2.7.3 Impacts of the Subproject on Women ...... 10 3. Socioeconomic Profile ...... 12 3.1 Socioeconomic Profile of Affected Areas ...... 12 3.1.1 Socioeconomic Profile of Affected County (District) ...... 12 3.1.2 Socioeconomic Profile of Yandun Sub-district ...... 14 3.1.3Socioeconomic Profile of Affected Villages ...... 14 3.2 Socioeconomic Profile of the Affected Population ...... 15 4 Legal Framework and Policies ...... 17 4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 17 4.2 Abstract of ADB Policies ...... 18 4.3 Provisions of Laws, Regulations and Policies of the PRC ...... 20 4.4 Main Differences between ADB Policies and PRC Laws...... 22 4.5 Compensation Principles of the Subproject ...... 23 4.6 Cut-off Date of Compensation ...... 24 4.7 Fixation of Compensation Rates for Resettlement Impacts of the Subproject ...... 24 4.7.1 Acquisition of Collective Land ...... 24 4.7.2 Compensation for Temporary Land Occupation ...... 25 4.7.3 Compensation for Attachments and Infrastructure...... 25 4.7.4 Rates of Other Costs ...... 25 4.7.5 Vulnerable groups ...... 26 4.7.6 Supporting Measures for Women ...... 26 4.8 Entitlement Matrix ...... 26 5. Resettlement and Income Restoration ...... 29

5.1 Resettlement Objectives ...... 29 5.2 Resettlement Restoration Programs for Affected Villages ...... 29 5.2.1 Summary of Resettlement Restoration Programs for Affected Villages ...... 29 5.2.2 Restoration Measures for Permanent Land Acquisition ...... 29 5.3 Training of APs ...... 31 5.4 Protection of Women’s Rights and Interests ...... 32 5.5 Assistance Measures for Vulnerable Groups ...... 32 5.6 Restoration Program for Temporarily Occupied Land...... 33 5.7 Restoration Program for Infrastructure ...... 33 6. Resettlement Organizational Structure ...... 34 6.1 Resettlement Implementation and Management Agencies ...... 34 6.1.1 Organizational Setup ...... 34 6.1.2 Organizational Responsibilities ...... 35 6.2 Staffing and Equipment ...... 37 6.2.1 Staffing ...... 37 6.2.2 Equipment ...... 37 6.2.3 Institutional Training Program ...... 38 7 Public Participation and Grievance Redress ...... 39 7.1 Public Participation ...... 39 7.1.1 Participation at the Preparation Stage ...... 39 7.1.2 Participation Plan at the Implementation Stage ...... 40 7.2 Grievances and Appeals ...... 40 8 Resettlement Budget ...... 43 8.1 Resettlement Budget ...... 43 8.2 Resettlement Investment Schedule and Funding Sources ...... 44 8.3 Disbursement and Management of Resettlement Funds ...... 44 8.3.1 Disbursement of Resettlement Funds ...... 44 8.3.2 Management of Resettlement Funds ...... 44 9 Resettlement Implementation Plan ...... 46 9.1 Principles for Resettlement Implementation ...... 46 9.2 Resettlement Implementation Schedule ...... 46 10 Monitoring and Evaluation ...... 49 10.1 Internal Monitoring ...... 49 10.2 External Monitoring ...... 50 10.2.1 Scope and Methodology of External Monitoring ...... 50 10.2.2 External Monitoring Reporting ...... 51 10.3 Resettlement Post-evaluation ...... 52 Appendix 1: Schematic Map of the Subproject ...... 53 Appendix 2: Minutes of Public Participation Meetings ...... 54 Appendix 3: Gender Analysis Form ...... 57 Appendix 4: Distribution and Structure of Survey Samples ...... 58 Appendix 5: Provisions of Land Laws, Regulations and Policies of the PRC and Anhui 60 Appendix 6: Measures for the Acquisition of Collective Land and Policy on the Endowment Insurance for Land-expropriated Farmers of Hefei Municipality ...... 66

Appendix 7: Detailed Resettlement Budget ...... 74 Appendix 8: Resettlement Information Booklet ...... 76

List of Tables

Table 1-1 Components of the Subproject and Identification of Resettlement Impacts ...... 2 Table 1-2 Summary of the Subproject Area ...... 3 Table 2-1 Options for Comparison ...... 4 Table 2-2 Summary of the Subproject Area ...... 4 Table 2-3 Summary of Acquired Permanently Collective Land ...... 5 Table 2-4 Impact Analysis of Collective Land Acquisition ...... 7 Table 2-5 Land Loss Rate of AHs ...... 7 Table 2-6 Loss Rate of Cultivated Land of AHs ...... 8 Table 2-7 Summary of Per Capita Land Area before and after Land Acquisition ...... 8 Table 2-8 Expected Resettlement Modes of Households Affected by Land Acquisition .... 9 Table 2-9 Summary of Affected Ground Attachments ...... 9 Table 2-10 Summary of Affected Vulnerable Groups ...... 10 Table 3-1 GDP of Baohe District and Comparable Growth (Unit: 0,000 yuan) ...... 12 Table 3-2 Socioeconomic Profile of Binhu New District ...... 13 Table 3-3 Socioeconomic Profile of Yandun Sub-district ...... 14 Table 3-3 Socioeconomic Profile of Affected Villages (Communities) and Groups (2010) ...... 14 Table 3-4 Income of Sample Households ...... 16 Table 4-1 Abstract of Measures for the Acquisition of Collectively Owned Land of Hefei Municipality ...... 20 Table 4-2 Principles for Resettlement ...... 23 Table 4-3 Summary of Land Compensation Rates ...... 24 Table 4-4 Summary of Compensation Rates for Attachments ...... 25 Table 4-5 Summary of Rates of Taxes and Fees Paid for Land Acquisition ...... 25 Table 4-6 Entitlement Matrix ...... 27 Table 5-1 Use and Allocation of Compensation Fees for Land Acquisition ...... 30 Table 5-2 Employment Training Program in the Subproject Area ...... 31 Table 6-1 List of Members of Resettlement Agencies...... 37 Table 6-2 Resettlement Operational Training Program...... 38 Table 7-1 Disclosure of Resettlement Information and Key Consultation Activities ...... 39 Table 7-2 Public Participation Plan ...... 40 Table 8-1 Resettlement Budget Sheet ...... 43 Table 8-2 Resettlement Investment Schedule ...... 44 Table 9-1 Schedule of Resettlement Activities ...... 47 Table 10-1 Resettlement M&E Agenda ...... 52

List of Figures

Figure 6-1 Organizational Chart ...... 35

III

1 Overview of the Subproject

1.1 Background and Description of the Subproject

1.1.1 Background of the Subproject

For a long time, Chao Lake has played a crucial role in blood regulation, urban and rural water supply, ecological balancing and regional development. However, with the rapid economic and social development of the basin, the environmental stress on Chao Lake is increasing year by year, and the conflicts between the rapid growth of pollutant discharge and the backward urban infrastructure and between integrated pollution control and the existing management structure are sharpening. Therefore, water environment integrated improvement must be implemented to inhibit the trend of water quality deterioration, improve the quality of the basin’s water environment, and restore the natural landscape of the Chao Lake basin gradually. The Asian Development Bank (ADB) plans to provide a loan of US$250 million to the PRC for the Anhui Chao Lake Environmental Rehabilitation Project, and the Hefei Binhu New District Subproject is one of its 14 subprojects.

1.1.2 Components of the Subproject and Identification of Resettlement Impacts

The gross investment in the Subproject is 454,197,400 yuan, and the Subproject has three components: 1) Beilaowei WWTP and associated sewer works, in which the design capacity of the WWTP is 60,000 m³/d and the total length of the sewer network is 85.15km; 2) River management, including river dredging, bank improvement (ecological bank protection) and landscaping works; and 3) ecological rehabilitation of 30 hectares of wetland. The Subproject is located in Binhu New District, Hefei Municipality. Based on preliminary identification, the resettlement impact of the Subproject is land acquisition, and no house demolition is involved. This RP has been prepared based on the Feasibility Study Report of the Subproject. This RP will be updated and finalized based on the detailed design and confirmation of the census of affected persons. See Table 1-1 and Appendix 3.

Table 1-1 Components of the Subproject and Identification of Resettlement Impacts Scope of Land No. Component Length Location (or direction) Key resettlement impact construction Impacts Gross amount of dredging 23,268 157 mu The Beilaowei Gully Segment begins with Huizhou River m3, occupying 157 mu of land in 1 River dredging 1.688km occupied Avenue on the west and ends at Chao Lake on the management pond and low-lying land beside the temporarily east. Beilaowei Gully Segment Affecting 19 households with 75 30 mu WWTP / Yandun Sub-district, Binhu New District persons in 3 village groups of acquired Yandun Sub-district The network has three zones: South Zone 1 (from Hangzhou Road and Yungu Road in the north to River Zhujiang Road in the south, from Huizhou Avenue on interception 2 the west and Round-lake North Road); South Zone 2 and wastewater To be constructed using the pipe Sewer network (from Fangxing Avenue on the north to Zhujiang Road treatment 85.15km / jacking method, no resettlement laying on the south, Yulong Road on the west and Huizhou impact Avenue on the east, Round-lake North Road); South Zone 3 (from Zhujiang Road on the north to Shenzhen Road on the south, Yulong Road on the west to Round-lake North Road on the east) Ecological Some engineering measures to be Ecological wetland 450 mu North of the Chao Lake estuary of the Beilaowei Gully 3 wetland / taken in existing wetland, no reserve occupied and west of Round-lake Road rehabilitation resettlement impact

1.1.3 Summary of Resettlement Impacts of the Subproject

The main resettlement impacts of the Subproject are permanent and temporary land occupation. In the Subproject, the Beilaowei WWTP will occupy 30 mu of rural collective land, all being cultivated land, affecting 19 households with 75 persons in 3 village groups of Nanhe Village, Yandun Sub-district. 157 mu of land will be occupied temporarily for the silt dump in the river management component, all being wasteland or waste pond, and no farmland will be affected. 6 types of infrastructure and ground attachments will be affected by the Subproject. See Table 1-2.

Table 1-2 Summary of the Subproject Area Affected No. Village Group Affected households population Nanhe Village, Yandun Group 10 4 17 Sub-district Beilaowei Nanhe Village, Yandun Group 11 5 20 WWTP Sub-district Nanhe Village, Yandun Group 12 10 38 Sub-district Total 19 75

1.2 Socioeconomic Benefits When completed, the Subproject will reduce urban surface water and groundwater pollution greatly, promote sustainable economic development, indirectly protect people’s physical health and reduce medical expenses.

1.3 Estimated Resettlement Investment and Implementation Plan The gross investment in the Subproject is 454,197,400 yuan, in which the investment in the Beilaowei WWTP and associated sewer works is 264,289,500 yuan, that in river dredging and ecological bank protection 170,763,900 yuan, and that in wetland rehabilitation 19,144,000 yuan. Construction funds will be raised by ADB and the Subproject owner - BNDCI. The estimated resettlement costs of the Subproject are 3.294 million yuan, accounting for 0.73% of the Subproject’s budget, all from domestic counterpart funds. The construction period of the Subproject is two years, from mid 2013 to 2014.

2. Impacts of the Subproject

2.1 Measures to Avoid or Minimize Land Acquisition and House Demolition At the design stage, through the field survey of the subproject area and the optimization of the project design, negative impacts of the Subproject have been minimized without affecting the design outputs, as shown in Table 2-1. In addition, at the detailed design stage, the project design will be further optimized to avoid or minimize land acquisition and house demolition impacts. Table 2-1 Options for Comparison Component Option 1 Option 2 Conclusion Southeast of the junction of Zhujiang Road and Guizhou Southwest of the Road, within the planned Beilaowei junction of Erhai South wetland park; with minimum on WWTP Road and Kunming the surrounding environment East Road and people’s lives, convenient in traffic Acquiring 30 mu of Option 1 avoids the Resettlement Acquiring 30 mu of land only land and demolishing demolition of houses of impact houses of 120 m2 120 m2.

2.2 Scope of Impact Survey of Land Acquisition and House Demolition

According to the recommended option (Option 1), the Subproject will affect 19 households with 75 persons in 5 village groups of Nanhe Village, namely Groups 10, 11 and 12. The WWTP will occupy 30 mu of collective land. See Table 2-2. Table 2-2 Summary of the Subproject Area Amount of Affected Affected No. Village Group land acquired households population 1 Nanhe Village, 17 Group 10 5.3 4 Yandun Sub-district 2 Nanhe Village, 20 Group 11 7.8 5 Yandun Sub-district 3 Nanhe Village, Group 12 16.9 10 38 Yandun Sub-district Total 30 19 75

2.3 Survey Methods and Process

In July 2011, the Hefei PMO appointed Hefei Engineering Consulting Service Co., Ltd. (HECS) to prepare the Proposal for the Subproject, which has been approved by the Anhui Provincial Development and Reform Commission.

In August 2011, engineering technicians from HECS conducted a initial resettlement survey) of the subproject area as required by ADB with the assistance of the affected villages and villagers. In September and October 2011, the survey team of the National Research Center for Resettlement at Hohai University (NRCR) conducted an impact survey on all households and entities affected by land acquisition (19 households) according to the Feasibility Study Report, and a sampling socioeconomic survey, covering household population, impacts of land acquisition and house demolition, household economic status, and expected resettlement modes. During the survey, the survey team also listened to opinions of the village committees and villagers on land acquisition, house demolition and resettlement, and conducted extensive consultation. In November and December 2011, the RP for the Subproject was completed on the basis of the feasibility study and survey data. This RP analyzes and evaluates the resettlement impacts and risks of the Subproject, and proposes preliminary remedies. This RP will be updated on the basis of the detailed design in October 2012, and the updated RP will serve as the basis of resettlement implementation. During the survey, the survey staff also listened extensively to expectations of the village committees and villagers on land acquisition and resettlement, and conducted extensive consultation. The key findings are as follows: 1) Almost all villagers know that the Subproject is about to break ground, and support it; 2) The Subproject involves the permanent acquisition of collective land and temporary land occupation, and does not involve house demolition; the Subproject also affects a small quantity of infrastructure and ground attachments; 3) Almost all APs think that they are affected slightly by land acquisition, and they can continue to farm on the remaining land after acquisition; they prefer cash compensation; 4) Compensation fees should be paid timely and transparently with minimum intermediate steps. 2.4 Permanent Acquisition of Collective Land and Impact Analysis

2.4.1 Collective Land Acquired Permanently for the Subproject

The WWTP will affect 3 village groups of Nanhe Village and occupy 30 mu of collective land, including 29.2 mu of irrigated land (97.3%) and 0.8 mu of woodland (2.7%), affecting 19 households with 75 persons. See Table 2-3. Table 2-3 Summary of Acquired Permanently Collective Land Acquisition of collective land Affected (mu) population Component Sub-district Village Group Irrigated House- Popula- Woodland Subtotal land holds tion

Acquisition of collective land Affected (mu) population Component Sub-district Village Group Irrigated House- Popula- Woodland Subtotal land holds tion Group 10 4.5 0.8 5.3 4 17 Beilaowei Group 11 7.8 0 7.8 5 20 Yandun Nanhe WWTP Group 12 16.9 0 16.9 10 38 Total 29.2 0.8 30 19 75

2.4.2 Impact Analysis of Permanent Acquisition of Collective Land

The land acquired for the Subproject is occupied by the Beilaowei WWTP mainly, and is blocky in shape. According to the survey, the 3 village groups have 384 mu of cultivated land, in which 29.2 mu will be acquired for the Subproject, with a land loss rate of 7.60%. In the subproject area, cultivated land is in small pieces of 0.5-2 mu, which is adverse to mechanized farming. Crops are harvested twice a year. Villagers focus on nonagricultural industries, and agriculture is no longer their main income source, with net income of about 800 yuan/mu. A comparative analysis of land and income losses arising from land acquisition of the affected village groups has been made. Among the 3 affected village groups, land loss rate ranges from 3.88% (Group 10) to 11.66% (Group 12), per capita income loss ranges from 211.76 yuan to 355.79 yuan, and per capita income loss rate is 2.83%-4.67% only. See Table 2-4. The average land loss rate of the 19 AHs is 33.72%, in which 36.84% of the AHs (4) have a land loss rate of 10%-29%, 36.84% (7) have a land loss rate of 30%-49%, 26.32% (5) have a land loss rate of 50%-70%, and no AH has a land loss rate of 10% or less or 70% or more. See Table 2-5. Among the 19 AHs, 3 households (15.79%) have an existing cultivated area of 1-3 mu, 14 households (73.68%) have an existing cultivated area of 3-5 mu, and 2 households (10.53%) have an existing cultivated area of 5 mu or more. See Table 2-6. The per capita cultivated area of the APs will drop from 1.15 mu to 0.77 mu. See Table 2-7.

Table 2-4 Impact Analysis of Collective Land Acquisition

Current Situation Land acquisition impacts Land loss rate Income loss (yuan)①

Total Average Average Farm Farm % of % of Per capita

district House House % of Annual loss per loss per -

Group Persons land Persons land househo land income Village

-holds -holds persons loss household capita ② Sub Component (mu) (mu) uld) loss loss (%) (yuan) (yuan) (yuan) Group 36 192 116 4 17 4.5 11.11 8.85 3.88 3600 900 212 2.83 10 Beilaowei Group Yandun Nanhe 39 208 123 5 20 7.8 12.82 9.62 6.34 6240 1248 312 4.15 WWTP 11 Group 42 261 144 10 38 16.9 23.81 14.56 11.66 13520 1352 356 4.67 12 Total 117 661 384 75 75 29.2 19 11.35 7.60 23360 1229 311 4.15

Table 2-5 Land Loss Rate of AHs Land loss rate Total 10%-29% 30%-49% 50-70% Component Sub-district Village Group House House House House Population Population Population Population -holds -holds -holds -holds Group 10 2 8 1 5 1 4 4 17 Beilaowei Yandun Nanhe Group 11 2 9 3 11 5 20 WWTP Group 12 3 13 3 11 4 14 10 38 Total 7 30 7 27 5 18 19 75

① Average loss per capita=land loss×800/population. ② Per capita income loss (%)=Average loss per capita /Per capita net income of farmers shown in table 3-4.

Land loss rate Total 10%-29% 30%-49% 50-70% Component Sub-district Village Group House House House House Population Population Population Population -holds -holds -holds -holds Percentage 36.84% 40.00% 36.84% 36.00% 26.32% 24.00%

Table 2-6 Loss Rate of Cultivated Land of AHs Loss rate Existing cultivated area Subtotal 11-29% 30-49% 50-69% <1 mu 0 0 0 0 1-3 mu 1 1 1 3 3-5 mu 6 5 3 14 >5 mu 0 1 1 2 Total 7 7 5 19 Percentage 36.84% 36.84% 26.32% 100%

Table 2-7 Summary of Per Capita Land Area before and after Land Acquisition of APs Before After Before Affected After acquisition No. Sub-district Village Group acquisition Acquired (mu) acquisition acquisition population (mu) (mu) (mu) (mu) 1 Group 10 17 17.2 4.5 12.7 1.01 0.75 2 Yandun Nanhe Group 11 20 26.9 7.8 19.1 1.35 0.96 3 Group 12 38 42.5 16.9 25.6 1.12 0.67 Total 75 86.6 29.2 57.4 1.15 0.77

According to the survey on the AHs, the households affected by land acquisition prefer the following resettlement modes: a) cash compensation, chosen by 19 households, accounting for 100% of all AHs; b) investing compensation fees for land acquisition in catering services, merchandising and other tertiary operations to increase income, chosen by 7 households, accounting for 36.84%; and c) attending skills training courses given by the labor and social security department, and looking for job opportunities outside, chosen by 16 households, accounting for 84.21%. Table 2-8 Expected Resettlement Modes of Households Affected by Land Acquisition① Restoration options Cash Skills training, Land loss rate # of households Tertiary compensation outside operations employment 11- 29% 7 7 2 6 30 -49% 7 7 2 6 50-69% 5 5 3 4 Total 19 19 7 16 Percentage 100.% 36.84% 84.21%

2.5 Temporary Land Occupation

157 mu of land will be occupied temporarily for the silt dump in the river management component. The silt dump is now a waste pond, and no compensation will be paid through consultation with the village collective, because the village collective thought that the waste pond could be developed to use after it was filled with silt dumping.

2.6 Infrastructure and Ground Attachments Affected by the Subproject

The Subproject will affect 5 types of infrastructure and ground attachments in total, including power and telecom facilities, as shown in Table 2-10. Table 2-9 Summary of Affected Ground Attachments Item Proprietor Unit Qty. Telegraph poles Power supply bureau / 8 Telephone poles Telecom office / 6 Water resources Water resources bureau m2 1000 facilities Scattered trees Group 10 of Nanhe Village / 300 Groups 10 and 11 of Nanhe Tombs / 33 Village

① In the subproject area, most villagers are engaged in other operations to increase household income while farming. For example, in most households, elder members farm at home, and their children, including sons and daughters-in-law, are working outside or engaged in nonagricultural operations, so the expected modes in this table may overlap.

Item Proprietor Unit Qty. Water wells Villagers of Nanhe Village / 1

2.7 Affected Population

2.7.1 Summary

The Subproject will affect 19 households with 75 persons, all affected by collective land acquisition. The Subproject does not involve residential house demolition.

2.7.2 Affected Vulnerable Groups

For the purpose of the Subproject, vulnerable groups include the disabled, five-guarantee households①, single female-headed households, low-income people② and ethnic minorities. According to the survey, all APs are Han people. 2 households with 3 persons in Nanhe Village fall into vulnerable groups, accounting for 4% of the affected population, belonging to Group 10 of Nanhe Village, and will receive special assistance during resettlement. See Table 2-11. We have found from interviews vulnerable groups that their vulnerability is reflected mainly in lower production income, so they expect policy preferences during resettlement. Table 2-10 Summary of Affected Vulnerable Groups Address Gender Vulner Househ Head of Vulner House able old Type of No. househo able Villag Village hold Femal popula Town populati Male impact ld group e group labor e tion on Land Yand Nanh 1 CHZ MLS 2 Group 10 3 1 1 2 acquisi un e tion Five-g Land Yand Nanh 2 LDR uarant 1 Group 10 1 0 1 0 acquisi un e ee tion

2.7.3 Impacts of the Subproject on Women

In the population affected by the Subproject, there are 35 women, accounting for 48%. No single female-headed household due to bereavement of spouse, divorce or abandonment has been found among the AHs. According to the survey, the affected

① For elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor, a rural production cooperative would provide production and living assistance, including daily supplies, education for the young and burial for the elderly. ② Per capita net income <2,300 yuan/year

women enjoy the same legal rights as men, including land contracting, education receiving, family planning and participation in election. Most of the interviewed female laborers think that they enjoy the same level of autonomy in production and operations as men, and elect to work outside or do small business voluntarily. Of course, men and women play different roles in family life and production, where women do more housework, take care of children, deal with household sideline operations (e.g., stockbreeding) and handwork, while men deal with transport or work outside. Generally, the working hours of women are 1.2 times those of men. The main impact of the Subproject on women’s income is the reduced income of agricultural production and household stockbreeding arising from land acquisition. Per capita crop cultivation and stockbreeding income is about 200, accounting for less than 1.3% of household income only. Boys and girls have equal opportunities in education, and parents are always willing to support their children’s education. According to the survey, women have the same concerns as those of men: (a) Compensation costs should be based on land output and resettlement cost; and (b) Compensation fees should be disbursed directly to the AHs. Women have the following needs that are different from those of men: (a) Women expect cash compensation; (b) Women want skills training in crop cultivation, stockbreeding and handicrafts; and (c) Women also expect to participate in village-level management. See Appendix 3 for a detailed gender analysis.

3. Socioeconomic Profile

3.1 Socioeconomic Profile of Affected Areas 3.1.1 Socioeconomic Profile of Affected County (District) The Subproject involves Baohe District, Hefei Municipality. Binhu New District, which is under construction, is spatially included in Baohe District but is directly under the jurisdiction of the Hefei Municipal Government. Presently, Binhu New District is constructed by the Binhu New District Construction Headquarters. Nanhe Village is within the planning area of Binhu New District but is administratively affiliated to Yandun Sub-district, Binhe New District. Baohe District—Baohe District was founded in 2002, and is located in the south of Hefei Municipality, bordering Chao Lake, one of the five major freshwater lakes of China, and at the core area of Binhu New District under construction. The district governs 5 sub-districts, 4 towns and one industrial zone, with 52 community committees and 62 administrative villages in total. The district has a total area of 340 km2 (including a water area of 74 km2) and a resident population of 520,000, in which nonagricultural population is 350,000. See Table 3-1. Table 3-1 GDP of Baohe District and Comparable Growth (Unit: 10,000 yuan) GDP Growth at Indicator comparable 2010 2009 prices, % Total 3650000 3060001 17.24% Primary industries 25550 45389 4.85% Secondary industries 1430800 1247491 22.46% Tertiary industries 2193650 1767121 14.01%

Binhu New District—Binhu New District is located in the southeast of the urban area of Hefei Municipality, bordering Chao Lake on the south and the Second Ring Road on the north, with a planning area of 196 km2. Since the beginning of construction of Binhu New District, new green spaces have a total area of 2 million m2, and per capita green space area is 24 m2. The socioeconomic data of Binhu New District is being updated because the new district is under construction. See Table 3-2.

Table 3-2 Socioeconomic Profile of Binhu New District Average Per capita # of village / Per capita # of Where, women's Cultivated population net income District community Population Rural labor cultivated households women rate area (mu) per of farmers committees area (mu) household (yuan) Binhu New 11 25000 80000 38000 47.50% 51000 65400 3.2 0.82 9100 District

3.1.2 Socioeconomic Profile of Yandun Sub-district Yandun Sub-district, Binhe New District is located beside Chao Lake, bordering Hefei Luogang Airport on the north, the Hefei Economic and Technological Development Zone on the west, Feixi County on the south and Binhu New District on the east. Yandun Sub-district is the core area of Binhu New District. The sub-district governs 12 community committees and 8 committees, with a land area of 62 km2 and a population of 42,000. The sub-district has one junior high school, 7 primary schools, two old people’s homes and one town-level health center, which governs 10 cooperative health stations. With the accelerated construction of Binhu New District, the per capita net income of Yandun Sub-district has reached 8,800 yuan. See Table 3-3. Table 3-3 Socioeconomic Profile of Yandun Sub-district # of village / Average # of Cultiva- Per capita Sub- commu Popula- Percent Rural population house- Female ted area cultivated district nity tion female labor per holds (mu) area (mu) committ household ees Yandun 20 11000 42000 20200 48.10% 33400 36000 3.8 0.86

3.1.3Socioeconomic Profile of Affected Villages Nanhe Village—Nanhe Village, Yandun Sub-district governs 26 village groups and 11 natural villages, with 1,018 households with 3,264 persons, who are mostly of rural status in household registration. The village has a land area of 6,000 mu and 2,540 mu of farmland. The main sources of income of the villagers are farming and labor output. There are over 1,700 laborers in the village, most of whom are working in the nearby Hefei Economic and Technological Development Zone, with per capita income of over 2,000 yuan per month. Paddy rice, lotus and water caltrop are grown in the village mainly. 39 households in the village receive MLS support, and average monthly MLS benefit is 320 yuan per capita. The village’s compulsory education rate is 100% and participation rate of rural cooperative medical insurance is 99%. The Subproject will affect 3 village groups, whose socioeconomic profile is shown in Table 3-4. Among the 3 affected village groups, the average population per household is 5.33~6.21 persons, and the average per capita cultivated area is 0.56-0.78 mu. Average per capita income varies slightly, ranging from 7480 Yuan to 7620 Yuan. Table 3-4 Socioeconomic Profile of Affected Villages (Communities) and Groups (2010) # of Average Per capita Per capita net Village / Popula- Cultivated house- Males Rural labor persons per cultivated income of group tion area (mu) holds household area (mu) farmers (yuan) Nanhe 1018 3264 1702 2480 2540 3.21 0.78 7230

# of Average Per capita Per capita net Village / Popula- Cultivated house- Males Rural labor persons per cultivated income of group tion area (mu) holds household area (mu) farmers (yuan) Group 10 36 192 101 140 116 5.33 0.60 7480 Group 11 39 208 107 145 123 5.33 0.59 7510 Group 12 42 261 139 160 145 6.21 0.56 7620

3.2 Socioeconomic Profile of the Affected Population In order to learn the basic information of the APs, the survey team conducted a sampling survey on the AHs. All the 19 households with 75 persons were surveyed. The sample households will be analyzed in terms of ethnic and gender, age structure, educational level, housing size, cultivated land, household properties, and household income and expenditure below. The sampling is shown in Appendix 5. 1) Social Gender Analysis The 19 sample households have a total population of 75, a labor force of 41 and an average population of 4. All the sample persons are Han people, including 36 women, accounting for 48%; women deal with farming, housework and outside employment mainly. 2) Age Structure Among the 75 APs, those aged 0-17 years account for 16% (12 APs), those aged 18-35 years account for 30.67% (23 APs), those aged 36-60 years account for 33.33% (25APs) and those aged 60 years account for 20% (15APs). 3) Educational Level Among the 63 APs beyond 17 years old, 3 are illiterate, accounting for 4.8%; 14 have received primary school education, accounting for 22.2%, 43 have received high school education, accounting for 68.3%, and 3 have received undergraduate education, accounting for 4.8%. 4) Cultivated Land Among the 19 sample households, cultivated area is 4.56 mu per household and 1.15 mu per capita on average. The cultivated land is irrigated and non-irrigated land mainly, used mainly to grow paddy rice, rape and cotton, with annual net income of 800 yuan per mu. 5) Household properties Among the 19 sample households, an average household has 2.21 TV sets, 1.21 refrigerators, 3.58 electric fans, 1.89 washing machines, 1.74 air-conditioner, 3.79 fixed telephones/mobile phones, 1.58 bicycles, 1.37 motorcycles, 0.42 tractors and 0.26 cars. 6) Household Income and Expenditure Among the sample households, the average annual gross household income is about 46872 Yuan, The per capita annual gross income ranges from 9,900 yuan to 14,344 yuan, per capita annual agricultural gross income ranges from 921 yuan to 1224 yuan, accounting for 6.88%-10.28% of gross income, and per capita annual

employment income from 5,921 yuan to 6,053 yuan, accounting for 89.72%-93.12% of gross income. See Table 3-5. Table 3-5 Income of Sample Households Per- Agricultural income Employment income Sub- Per sons Per No. Village Group Total Percent Total Per capita Percent Total capita capita (yuan) (%) (yuan) (yuan) (%) (yuan) (yuan) (yuan) Group 17 1 15652 921 5.96 211848 7053 94.04 227500 13382 10 Group 20 2 Nanhe 24479 1224 7.40 262401 6964 92.60 286880 14344 11 Group 3 38 38675 1018 8.81 337525 7021 91.19 376200 9900 12 Total 75 78806 1051 7.68 811774 6969 92.32 890580 11874

The average annual expenditure of the sample households is about 32875 yuan, in which staple food expenses account for 35.2%, clothing expenses 6.3%, living equipment expenses 12.9%, household appliance expenses 8.9%, healthcare and medical expenses 9.3%, traffic and communication expenses 5.1%, education, culture and amusement expenses 10.5%, entertaining expenses 5.3%, and expenses on other commodities and services 6.5%.

4 Legal Framework and Policies

4.1 Laws, Regulations and Policies Applicable to Resettlement

The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of ADB and the PRC, including: 1) ADB policies  Safeguard Policy Statement (SPS), June 2009 2) Laws, regulations and policies of the PRC  Land Administration Law of the PRC (January 1, 1999, amended on August 28, 2004)  Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources, effective from January 1, 2002)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (November 3, 2004)  Measures for the Administration of the Preliminary Examination of the Land Used for Construction Projects (Decree No.27 of the Ministry of Land Resources, effective from December 1, 2004)  Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) (April 10, 2006)  Notice of the State Council on Issues Concerning the Strengthening of Land Control and Adjustment (SC [2006] No.31) (August 31, 2006) 3) Provincial and local policies  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Guidelines of the Anhui Provincial Government on Doing Well in Employment and Social Security for Land-expropriated Farmers (APG [2005] No.63)  Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (Amended) (July 1, 2004)  Measures of Anhui Province for the Arbitration of Disputes over Compensation for Land Acquisition (APGO [2004] No.101) (January 1, 2005)  Notice of the Anhui Provincial Government on Publishing the Compensation Rates for Land Acquisition of Anhui Province (APG [2009] No.132) (December 31, 2009)  Notice of the General Office of the Anhui Provincial Government on Forwarding the Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of

Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)  Notice of the General Office of the Anhui Provincial Government on Issuing the Measures for the Administration of Compensation Reserves for Land Acquisition of Anhui Province (APGO [2010] No.22) (May 4, 2010)  Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136) (June 30, 2008)  Notice of the General Office of the Hefei Municipal Government on Issuing the Measures of Hefei Municipality for the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1) (March 28, 2008)  Some Provisions of Hefei Municipality on the Acquisition of Collectively-owned Land and the Endowment Insurance for Land-expropriated Farmers (HMLR [2008] No.85) (May 1, 2008)

4.2 Abstract of ADB Policies

The objectives of ADB on involuntary resettlement are: to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. ADB’s basic policy principles are: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and

(iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. 8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.3 Provisions of Laws, Regulations and Policies of the PRC

The Land Administration Law of the PRC is the main legal basis of the Subproject, and the Ministry of Land and Resources, and the Anhui Provincial Government have promulgated applicable regulations and policies on this basis. The Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Subproject. The key provisions of the above policies are outlined in Appendix 6. In order to regulate the acquisition of collectively-owned land, protect the lawful rights and interests of owners and users of such land, and ensure successful urban construction, the Hefei Municipal Government has formulated measures and regulations in accordance with the Real Property Right Law of the PRC, the Land Administration Law of the PRC and the regulations on its implementation, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, etc. See Table 4-1. Table 4-1 Abstract of Measures for the Acquisition of Collectively Owned Land of Hefei Municipality Item Key points Index The municipal land and resources department shall be Article 3 of the responsible for the unified administration of land Measures of Hefei acquisition tasks of the municipality, and the municipal Municipality for the Administrative land acquisition office thereunder shall handle routine Acquisition of agency affairs of land acquisition as entrusted by the municipal Collectively-owned land and resources department. Land (Decree [2008] No.136) The approval procedures for land acquisition shall be as Article 4 of the follows: (1) The organization applying for land acquisition Measures of Hefei shall prepare submittals as required, and file an Municipality for the application with the municipal land and resources Acquisition of department. (2) The municipal land acquisition office shall Collectively-owned survey the ownership, type and area of the land to be Land (Decree acquired, agricultural population involved, and ownership, [2008] No.136) Approval types and quantities of ground attachments together with procedures of the district labor and social security department and the land local police station; the survey results shall be confirmed acquisition jointly by the rural collective economic organization concerned (or village or community committee, known collectively as the rural collective economic organization), affected households and proprietors of ground attachments. (3) The municipal land and resources department shall notify the purpose and location of the land to be acquired, compensation rate, resettlement mode and opinion on the endowment insurance for LEFs

Item Key points Index together with the municipal labor and social security department to the affected rural collective economic organization and households in writing. (4) The municipal land and resources department shall prepare a farmland conversion program, a cultivated land supplementation program and a land acquisition program, which shall be submitted for approval after review by the municipal government. (5) According to the payment notice for construction land, the municipal finance department shall make transfer payment of fees for using new construction land, and the organization applying for land acquisition shall make transfer payment of other approved taxes and fees. Compensation fees for land acquisition shall include land Articles 6 and 7 of compensation fees, resettlement subsidies, and the Measures of Compensation compensation fees for ground attachments and young Hefei Municipality fees for land crops. Land compensation fees and resettlement for the Acquisition acquisition subsidies shall be based on the compensation rates for of and land acquisition approved by the provincial government; Collectively-owned management the compensation rates for houses, ground attachments Land (Decree thereof and young crops shall be as stipulated by the municipal [2008] No.136) government. , Land-expropriated agricultural population to be resettled Articles 11 and 12 of shall mean registered resident agricultural population the Measures of having the right of contracted management of land and Hefei Municipality assuming agricultural obligations within the range of land for the Acquisition acquisition before the land acquisition announcement is of published, including registered children, immigrants by Collectively-owned lawful marriage and emigrants whose registered Land (Decree residence has not been moved out and still having the [2008] No.136) right of contracted management of land within the rural Resettlement collective economic organization. Such population shall of land- be identified as follows: (1) If all contracted land of a expropriated household is acquired, the whole household shall be agricultural resettled; (2) If the contracted land of a household is partly population acquired, the population to be resettled of such household = cultivated area acquired ÷ per capita cultivated area; (3) If the contracted land of a household is partly acquired but the per capita cultivated area is less than 0.3 mu after acquisition or over 70% of the contracted land is acquired, the whole household may be resettled as long as it waives the remaining contracted land voluntarily and hands it over to the collective economic organization for reallocation. Subjects of the endowment insurance for LEFs are those Article 2 of the having attained the age of 16 years or more in the Measures of Hefei Subjects of agricultural population to be resettled for land acquisition, Municipality for the endowment but those already entitled to the endowment insurance of Endowment insurance workers of urban enterprises or the benefit for retirement Insurance for (separation) of public organs or institutions, or entitled to Land-expropriated the basic endowment insurance for retirees of urban Farmers (HMG

Item Key points Index collective enterprises not insured are excluded. [2008] No.1) Endowment insurance funds for LEFs are brought into the Article 5 of the special account of the municipal finance, and subject to Measures of Hefei management of the receipt and disbursement lines. The Municipality for the sources of funds include: (1) 70% of land compensation Endowment Sources of fees; (2) The resettlement subsidy from which the alimony Insurance for endowment and the subsidy for self job finding are deducted; (3) The Land-expropriated insurance interest on the funds and other value-added income; (4) Farmers (HMG fund Other funds available for use for the endowment [2008] No.1) insurance for LEFs; and (5) When the funds from the above 4 sources are insufficient for payment, funds transferred by the government from the income from transfer of rights to use state land.

4.4 Main Differences between ADB Policies and PRC Laws

Compensation for land ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential (i.e., replacement cost). Chinese standards are based on Average Annual Output Value (AAOV). An early-stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments should provide assistance to those in need. Compensation and resettlement of vulnerable groups ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss. Special funds are available to assist the vulnerable groups, who will be identified during the DMS. All measures have been specified in the RP. Consultation and disclosure ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short. Consultation has begun at the early stage (before and during the technical assistance). The Hefei PMO agrees to disclose the RP to APs as required by ADB. Lack of legal title

Difference: ADB policies require all demolished house/property, whether lawful or not, should be compensated for at replacement cost. According to Chinese laws, people without local registered residence are not entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned/occupied land and illegal constructed/posessed houses.

having ownership or right of use, will be protected, and provided with compensation or assistance to replace or restore lost assets/property. Resettlement monitoring, evaluation and reporting ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects. Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.5 Compensation Principles of the Subproject

The principles for compensation and entitlement of the Subproject have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that all APs obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-project levels. See Table 4-2. Table 4-2 Principles for Resettlement Principles 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve 2 their livelihoods in the absence of the project. The APs are given compensation and assistance in resettlement whether legal title is 3 available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement 4 in cash or in kind and other income-generating activities are provided for the lost land. The APs fully understand their entitlements, the method and standard of compensation, 5 the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. The executing agency and an independent agency / third party should monitor the 6 compensation, relocation and resettlement operations. Vulnerable groups are provided special assistance or treatment so that they lead a better 7 life, and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The RP is consistent with the master plans of the affected city (district/county) and

Principles township. 9 The resettlement expenses are sufficient to cover all affected aspects.

4.6 Cut-off Date of Compensation

The cut-off date for the eligibility for compensation was 30 April 2012, which has already been disclosed. Any newly claimed land, newly built house or settlement in the subproject area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

4.7 Fixation of Compensation Rates for Resettlement Impacts of the Subproject

4.7.1 Acquisition of Collective Land According to the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, and the Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136), the compensation rates for land acquisition of the Subproject are shown in Table 4-3. The compensation rate for housing land is the same as that for farmland. Specific rates will be subject to adjustment with provincial policies, and such adjustments will be incorporated into the final RP, if applicable. Table 4-3 Summary of Land Compensation Rates Compensation rates for land acquisition (yuan/mu) Where Young crop Region Area Integrate Land Resettleme compensati Subtotal d rate compensati nt subsidy on on Area IV of Binhu New Hefei District 52900 21160 31740 1100 54000 Municipality (Yandun Sub -district)

Through consultation with the APs, all compensation fees for land acquisition will be paid to APs. For APs with a cultivated land less than 0.3 mu per capita, they could choose endowment insurance voluntarily. And if they chose endowment insurance, the land acquisition compensation will be distributed as follows: 1) 70% of land compensation fee will be used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs; the remaining 30% will be paid to the rural collective economic

organization owning such land, and the use thereof shall be supervised by the township government or the development zone administrative committee. 2) Resettlement subsidies will be first used to pay support and self-employment subsidies to the APs, and the remainder will be used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs. The specific rate is 12,000 yuan per capita for the approved population to be resettled. The list of receivers of compensation fees will be drafted by the rural collective economic organization, reviewed by the township government, and approved by the municipal finance, and land and resources departments. Those effecting the endowment insurance for LEFs shall receive a pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. LEFs who have attained or exceeded the stipulated age upon land acquisition shall receive pensions for LEFs from the month following the actual time of land acquisition. The standard of pensions for LEFs shall be 260 yuan per capita-month, including a basic pension of 210 yuan and a personal account pension of 50 yuan.

4.7.2 Compensation for Temporary Land Occupation The land occupied temporarily for the Subproject is wasteland or waste pond, on which no crop can be grown. No compensation will be paid through consultation with the village collective.

4.7.3 Compensation for Attachments and Infrastructure The compensation rates for attachments and infrastructure have been fixed at replacement cost. See Table 4-4. Table 4-4 Summary of Compensation Rates for Attachments Compensation rate Item Proprietor Unit (yuan) Telegraph poles Power supply bureau / 30.0 Telephone poles Telecom office / 30.0 Water resources Water resources m2 20.0 facilities bureau Group 10 of Nanhe Scattered trees / 50.0 Village Groups 10 and 11 of Tombs / 200.0 Nanhe Village Villagers of Nanhe Water wells / 3000.0 Village

4.7.4 Rates of Other Costs See Table 4-5. Table 4-5 Summary of Rates of Taxes and Fees Paid for Land Acquisition No. Tax / fee Rate 1 Fees for using new construction land 10,000 yuan/mu 2 Land reclamation costs 15,000 yuan/mu

No. Tax / fee Rate 3 Farmland occupation tax 15,000 yuan/mu 4 Land acquisition management costs 4% of land acquisition costs

4.7.5 Vulnerable groups In addition to the above compensation policies for land acquisition, vulnerable groups affected by the Subproject are also entitled to the following preferential policies: (1) Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities; (2) The vulnerable persons affected by the Subproject will be included in the scope of local civil affairs assistance by the Civil Affairs Office of Yandun Sub-district; (3) A special support fund of 1% of resettlement costs will be established in cooperation with the labor and social security department of Yandun Sub-district to provide assistance;

4.7.6 Supporting Measures for Women In addition to the above compensation policies for land acquisition, women are also entitled to the following special supporting policies: (1) Women will have priority in employment, and at least 30% of women will receive unskilled jobs; (2) Women will have priority in receiving agricultural and nonagricultural skills training; 300 men-times of training will be provided under the Subproject, in which not less than 150 men-times (50%) will be available to women; (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) A special FGD for women will be held to introduce resettlement policies and improve their awareness; (5) The compensation agreement must be signed by the couple. See Appendix 3 for a detailed gender analysis.

4.8 Entitlement Matrix

The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-6. For all affected village groups, households with a per capita cultivated area of less than 0.3 mu will also be included in the endowment insurance system for LEFs. It is estimated that 5 households with 23 persons in Nanhe Village will have a per capita cultivated area of less than 0.3 mu and will be included in the endowment insurance system for LEFs.

Table 4-6 Entitlement Matrix Type of impact Degree of impact APs Compensation and resettlement policy Measures 30 mu of collective 19 households with 1) Receiving compensation fees for land acquisition, including Measures for land compensation land 75 persons in 3 land compensation fees and resettlement subsidies, allocation, land reallocation and groups of Nanhe 2) receiving employment and training opportunities under the production investment (cultivation Village, Yandun Subproject; and irrigation skills, tertiary Sub-district 3) Compensation fees for ground attachments and young crops industries, etc.) will be determined including 5 will be paid to their proprietors. by the village meeting. Training Permanent households with 23 4) For APs with a cultivated land less than 0.3 mu per capita, they will be approved and supervised land persons with a per are titled to choose endowment insurance voluntarily. by the government at the next acquisition capita cultivated higher level. area of less than 0.3 mu Seriously affected 12 households with They will have priority in getting employed during at the To be arranged by the Baohe households with a 48 persons in construction and operating stages, and attending agricultural and District Government or the labor land loss rate of Nanhe Village, nonagricultural skills training. and social security office of over 30% Yandun Sub-district Yandun Sub-district Endowment 5 households with The land acquisition compensation will be distributed as follows: Insurance system 23 persons 1) 70% of land compensation fees will be used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs; 2) Resettlement subsidies will be used to pay support and self-employment subsidies, amounting to 12,000 yuan per capita,

and the remainder will be transferred to the special financial account of the endowment insurance fund for LEFs

Type of impact Degree of impact APs Compensation and resettlement policy Measures land being wasteland or notified in advance supervised by occupation waste pond the local land and resources bureaus. / 36 females, of (1) Women will have priority in employment, and at least 12（30%） The women’s federation will which 19_are of them will receive unskilled jobs; (2) Women will have priority in provide acceptable education to working age women receiving agricultural and nonagricultural skills training; 400 women. and 10 are retired,7 men-times of training will be provided under the Subproject, in Women aged 0-17. which not less than 150 person-times (50%) will be available to women; (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) Land-expropriated women may apply for small-grant secured loans. Low-income people 2 households with 3 (1) Laborers in vulnerable households will be provided with Vulnerable households will be (below the national persons occupational training, and employment information and guidance re-identified at the beginning of poverty line) in order to increase their job opportunities; (2) During project resettlement implementation, and Vulnerable construction, laborers in vulnerable households will have priority monitored closely until the groups in being employed for unskilled jobs; (3) A special support fund of 1% of resettlement costs will be established in cooperation with completion of assistance the labor and social security department of Baohe District to measures. provide assistance. 5 types, including Proprietors 1) Affected special facilities will be restored by proprietors after Infrastructure telegraph poles and receiving compensation from the owner of the Subproject, or and ground trees reconstructed by the owner according to the original size, attachments standard and function; 2) Compensation fees will be calculated and disbursed for ground attachments as stipulated. Grievances / All APs Free; all costs so reasonably incurred will be disbursed from the and appeals contingencies

5. Resettlement and Income Restoration

5.1 Resettlement Objectives

The objective of resettlement of the Subproject is to develop an action plan for restoration and restoration for those affected by the Subproject so that they benefit from the Subproject, and their living standard is improved or at least restored to the pre-project level.

5.2 Resettlement Restoration Programs/Measures for Affected Villages

5.2.1 Summary of Resettlement Restoration Programs for Affected Villages

The main impact of the Subproject is permanent land acquisition. The permanent acquisition of collective land will affect 3 village groups of Nanhe Village, with 30 mu of collective land acquired in total, including 29.2 mu of irrigated land (97.3%) and 0.8 mu of woodland (2.7%), affecting 19 households with 75 persons. Since the land acquired for the Subproject is occupied by the Beilaowei WWTP mainly, and is blocky in shape and small in amount, land acquisition will affect the agricultural production moderately and income of the AHs slightly (see Section 2.4.2 for details). According to the survey of the 19 AHs, all the AHs require cash compensation. They will invest compensation fees in tertiary services, and will attend free skills training provided by the government. During the survey, almost all AHs supported the Subproject. They think that the Subproject will improve local wastewater treatment conditions and environmental hygiene, and bring productive and living convenience. All AHs require cash compensation for land acquisition, because this is easy to operate, and they can use compensation fees for production and livelihood restoration freely. Restoration programs for land acquisition have been developed based on the degree of impact, the availability of remaining land resources and the willingness of the APs in consultation with the village committees and the AHs. According to the Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1), households with a per capita land area of less than 0.3 mu after acquisition will be included in the endowment insurance system for LEFs.. 5.2.2 Restoration Measures for Permanent Land Acquisition The income loss rates of the 3 village groups of Nanhe Village are 2.83%, 4.15% and 4.67% respectively, all less than 5%. All APs think that land acquisition will affect their household income slightly, and expect to receive cash compensation, participate in the endowment insurance for LEFs, have priority in obtaining job opportunities under the Subproject, and attend nonagricultural skills training provided by the government for free in order to work at

enterprises in the urban area of Hefei Municipality and Binhu New District. The specific restoration measures as follows: 1. Cash compensation For the affected village groups, the compensation rates for land acquisition and the amount of lost cultivated land will be determined in strict accordance with the applicable state and local policies, and compensation fees will be paid directly and timely to the APs. Compensation fees for land acquisition include land compensation fees, resettlement subsidies, and compensation fees for ground attachments and young crops. Through consultation with the APs, all compensation fees for land acquisition will be paid to APs. 2. Endowment insurance for LEFs For APs with a cultivated land less than 0.3 mu per capita, they could choose endowment insurance voluntarily. And if they chose endowment insurance, the land acquisition compensation will be distributed as follows: 1) 30% of land compensation fees shall be paid to the rural collective economic organization owning such land; 2) Resettlement subsidies will be used to pay support and self-employment subsidies, amounting to 12,000 yuan per capita, and the remainder will be transferred to the special financial account of the endowment insurance fund for LEFs; and 3) Compensation fees for ground attachments and young crops will be paid to their proprietors. In the Subproject, Nanhe Village and the affected village groups will draft a list of receivers of compensation fees together, which will reviewed by the Yandun Sub-district Office, and approved by the Finance Bureau, and Land and Resources Bureau of Baohe District. See Table 5-1. Table 5-1 Use and Allocation of Compensation Fees for APs choosing endowment insurance Item Use and allocation of fees 70% of land compensation fees shall be used for the endowment insurance for LEFs and transferred directly to the special financial account of the endowment insurance fund for LEFs; the remaining Land compensation 30% shall be paid to the rural collective economic organization owning fees 21,160 yuan/mu such land, and a village congress shall be held to determine the allocation and use program; the use of this sum will be supervised by the township government, and this sum is usually paid to the AHs in practice. A support or self-employment subsidy of 12,000 yuan will be paid to Resettlement subsidies the approved population to be resettled, and the remainder will be paid 31,740 yuan/mu to the special financial account of the endowment insurance fund for LEFs. Young crop compensation fees Granted to the APs in full 1,100 yuan/mu

Those effecting endowment insurance shall receive a pension of the following month of attaining the age of 55 years for women or 60 years for men. Any LEF who attains or exceeds the stipulated age (55 years for women or 60 years for men) upon

land acquisition shall receive pensions from the month following the actual time of acquisition. The standard of pensions for LEFs shall be 260 yuan per capita-month, including a basic pension of 210 yuan and a personal account pension of 60 yuan. The basic pension shall be paid from the unified funds, and the personal pension① from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. The standard of pensions for LEFs shall be adjusted with the level of the minimum living security for urban residents accordingly. 3. Employment promotion program As predicted by the design agency, the Subproject will generate 1,462 temporary jobs at the construction and operating stages (1,400 at the construction stages and 52 at the operating stage, and over 70% are unskilled jobs). BNDCI will ensure the APs have priority in obtaining unskilled jobs and their remuneration is not less than the average level of similar local jobs.

5.3 Training of APs

BNDCI will give pre-job training and professional skills training to them together with the labor and social security department. Pre-job training will cover the national employment situation, employment policies, the protection of labor rights and interests, and professional ethics; professional skills training will be held irregularly as necessary. The sub-district labor and social security office will be responsible for the skills training and reemployment of the LEFs, develop a training program and set up training courses scientifically. Training will be subject to semiannual reporting, and the training program will be adjusted timely based on employment needs. All APs may attend such training for free. See Table 5-2. Table 5-2 Employment Training Program in the Subproject Area Funding Sub- Person-times Agency Funding District Time Trainees Scope (10,000 district trained per annum responsible source yuan) Security Yandun 2012.6, guard, Labor & Govern- 2012.12, AHs 150 baby- Social 1 ment 2013.6 sitter, Security budget cleaner Office Yandun Building 2012.6, Labor & Govern- Baohe Yandun materials, 2012.12, AHs 150 Social 1 ment store 2013.6 Security budget operation Office Yandun Govern- Labor & Other irregular training 0.5 ment Social budget Security

① According to Article 6 of the Interim Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1), 6,000 yuan per capita will be transferred from the raised endowment insurance fund to each personal account without additional payment by the individual.

Funding Sub- Person-times Agency Funding District Time Trainees Scope (10,000 district trained per annum responsible source yuan) Office

Govern- Total 2.5 ment budget

The training program will be disclosed to the affected villages, and implemented by the district and sub-district labor and social security departments, and the Hefei PMO; training costs will be disbursed from the training budget.

5.4 Protection of Women’s Rights and Interests

At the RP preparation stage, women in the subproject area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Subproject, and think the Subproject will promote the utilization of water resources, avoid water pollution, reduce the incidence of infectious diseases and protect people’s health. In addition, they expect job opportunities from the Subproject, and training on apparel making skills. During project implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 300 person-times of APs will be trained, in which not less than 150 person-times (50%) will be provided to female labor. Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. A compensation agreement must be signed by the couple. During resettlement implementation, a FGD for women will be held to introduce the resettlement policies.

5.5 Assistance Measures for Vulnerable Groups

According to the survey, the main vulnerable group of the Subproject is low-income people and the disabled. Among the APs, 2 households with 3 persons fall into vulnerable groups. During the whole relocation process, the PMO, implementing agency and local government will pay particular attention to the resettlement of vulnerable groups. In addition to the living and production resettlement measures under the RP, vulnerable groups will be provided certain assistance to improve their living and production conditions. The main assistance measures for low-income households are as follows: 1) At least two members of each AH receive skills training, including at least one woman; women will have priority in employment, and receive relevant information; 2) The local government will pay pensions to them;

3) A special support fund of 1% of resettlement costs will be established in cooperation with the labor and social security department of Yandun Sub-district to provide assistance;

5.6 Restoration Program for Temporarily Occupied Land

157 mu of land will be occupied temporarily for the Subproject, all being wasteland or waste pond. Temporary land occupation will not affect local residents’ production and income. This land will be leveled by the contractor timely after completion.

5.7 Restoration Program for Infrastructure

Affected special facilities and ground attachments will be restored by proprietors after receiving compensation from the owner of the Subproject. Restoration measures for demolished facilities must be planned in advance, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents. Affected public facilities will be demolished according to the construction drawings without affecting project construction and with minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting regular lives of residents along such pipelines (including those not to be relocated).

5.8 Relocation of Tombs

Since June 15, 2002, the implementation of Hefei City funeral management approach (HMG [2002] No.93) (May 28, 2002), Nanhe village has its own graveyard by planning. In order to support the construction of the sub-project, the village committee agreed to provide cemetery for villagers freely if it is necessary. It is estimated that about 16 tombs need to be rebuilt; the rest of the grave is only need to give financial compensation. 16 tombs or so will be rebuilt by its owner in the specified range to reconstruct.

6. Resettlement Organizational Structure

6.1 Resettlement Implementation and Management Agencies

6.1.1 Organizational Setup In order to ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. The agencies responsible for resettlement in the Subproject mainly include:  Chao Lake Management Authority(CLMA)  Office of the ADB-financed Project Working Group of the Hefei Municipal Government (Hefei PMO)  BNDCI  Land and Resources Branch of Baohe District  Yandun Sub-district Office  Affected village and groups  Design agency  External M&E agency See Figure 6-1.

Chao Lake Management Authority

ADB-financed Project Working Group of the Hefei Municipal Government

Office of ADB-financed Project Working Group External M&E Agency of the Hefei Municipal Government

Land and Resources BNDCI Branch of Baohe District

Yandun Sub-district Office

Nanhe Village Committees

Village Group 10,11,12

AHs

Figure 6-1 Organizational Chart

6.1.2 Organizational Responsibilities  Chao Lake Management Authority(CLMA) Leading the decision-making and construction of the 13 subprojects  ADB-financed Project Working Group of the Hefei Municipal Government Leading the decision-making and construction of the Subproject  Hefei PMO (1) Contacting with the ADB-financed Project Working Group of the Hefei Municipal Government, ADB and the functional departments concerned of Hefei Municipality (2) Ensuring that all plans related to resettlement of the Subproject are approved by the competent departments of the state, Anhui Province, Hefei Municipality and Hefei County; (3) Inspecting and directing the implementing agency  BNDCI (1) Appointing a resettlement consulting agency to prepare for resettlement;

(2) Coordinating the consulting agency with other agencies at the preparation stage; (3) Coordinating the implementation progress of the Subproject and the RP; (4) Reporting the resettlement fund disbursement plan and supervising the disbursement of funds; (5) Coordinating the work of the resettlement agencies; (6) Raising resettlement funds; (7) Disbursing resettlement funds; (8) Responsible specifically for resettlement implementation; (9) Tracking and supervising the disbursement of resettlement funds; (10) Handling grievances and appeals of APs arising from resettlement; (11) Supporting the work of the external M&E agency; (12) Collecting, compiling and reporting information required for internal monitoring reporting; (13) Managing resettlement archives; (14) Training persons responsible for resettlement  Land and Resources Branch of Baohe District (1) Applying for a land use permit and a construction planning permit with the competent departments; (2) Formulating resettlement policies in coordination with the departments concerned; (3) Responsible for all-around affairs of land acquisition (including social insurance for LEFs)  Yandun Sub-district Office (1) Participating in the DMS; (2) Participating in the calculation of compensation fees for AHs; (3) Disbursing compensation fees to APs; (4) Reviewing the list of receivers of compensation fees drafted by the rural collective economic organization; (5) Handling grievances and appeals of APs arising from resettlement; (6) Giving employment skills training to APs; (7) Implementing employment measures for APs  Affected village (community) committees and groups (1) Participating in the DMS; (2) Participating in the calculation of compensation fees for AHs; (3) Drafting the list of receivers of compensation fees; (4) Supervising the disbursement of compensation fees to APs; (5) Handling grievances and appeals of APs arising from resettlement; (6) Giving employment skills training to APs; (7) Implementing employment measures for APs

 Design agency At the planning and design stage, it will survey the physical indicators of land acquisition and house demolition, the environmental capacity, the usable resources, etc. accurately, and assist the governments in the subproject area in formulating

resettlement programs, preparing budgetary investment estimates for compensation for land acquisition and house demolition, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner timely, make design disclosure to the PMOs of all levels, assist in the implementation of the relocation and resettlement for production of the APs, and improve the resettlement programs based on the practical situation.

 External M&E agency The CLMA will employ a qualified M&E agency as the external resettlement M&E agency. Its main responsibilities are: (1) Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs as set out in this RP, (2) submitting resettlement M&E reports to the CLMA and ADB; and (3) Providing technical advice to the CLMA in data collection and processing.

6.2 Staffing and Equipment

6.2.1 Staffing In order to ensure the successful implementation of the resettlement work, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established. The resettlement staff has strong organizing and coordinating capabilities, and rich experience in resettlement, and is competent for the resettlement work. See Table 6-1. Table 6-1 List of Members of Resettlement Agencies No. Resettlement agency Workforce Staff ADB-financed Project Working Group of the Hefei 1 3 Civil servants Municipal Government 2 Hefei PMO 5 Civil servants Management staff and 3 BNDCI 4 employees 4 Land and Resources Branch of Baohe District 4 Civil servants Management staff and 5 Resettlement implementing agency 6 employees 6 Yandun Sub-district 13 Civil servants 7 Village committees and groups 7 Village officials

6.2.2 Equipment The resettlement agencies at all levels of the Subproject have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

6.2.3 Institutional Training Program For the purpose of resettlement, the PMO will train the resettlement staff on resettlement policies and information management, etc. The resettlement budget is 48,000 yuan. See Table 6-2. Table 6-2 Resettlement Operational Training Program Agency Cost Scope of training Trainees Time No. responsible (0,000 A B C D yuan) Drawing on experience Chao Lake in resettlement for Resettlement staff of 1 Management 2011-2013 0.5 ADB-financed projects Hefei PMO Authority from other provinces External M&E ADB’s resettlement Resettlement staff of 2 Apr. 2012 0.5 agency policies Hefei PMO Updates of state policies External M&E Resettlement staff of 3 on land acquisition and Mar. 2012 0.5 agency Hefei PMO house demolition Experience and lessons Resettlement staff of 4 Hefei PMO in resettlement of other Mar. 2011 0.8 Hefei PMO places Computer operation and Resettlement staff of Nov. - Dec. 5 Hefei PMO 0.4 data processing Hefei PMO 2011 Resettlement Sub-district Resettlement procedures and policies resettlement office, 6 implementing Dec. 2011 0.8 for ADB-financed village resettlement agency projects teams Sub-district Resettlement Resettlement policies resettlement office, 7 implementing Dec. 2011 0.5 and practice village resettlement agency teams Internal experience in Resettlement staff of 8 Hefei PMO 2012-2013 0.8 resettlement sub-district PMO

7 Public Participation and Grievance Redress

7.1 Public Participation

In order to lay a solid foundation for the resettlement work of the Subproject, protect the lawful rights and interests of the APs and entities, and reduce grievances and disputes, great importance is attached to the participation of and consultation with the APs at the preparation and implementation stages. 7.1.1 Participation at the Preparation Stage Since July 2011, HECS, FURCI and the survey team of NRCR have conducted a series of socioeconomic survey and public consultation activities (with 30% of participants being women) under the direction of technical assistance experts. At the preparation stage, the PMO, implementing agency and design agency conducted extensive consultation on land acquisition and resettlement. See Table 7-1 for the participation activities at the preparation stage, and Appendix 2 for the minutes of public participation meetings. The RIB was distributed in April 2012. Table 7-1 Disclosure of Resettlement Information and Key Consultation Activities # of No. Time Activity Participants Organizer persons Hefei PMO, BNDCI, Hefei Municipal 1 2011.8 Project design Government, villages, groups and 8 BNDCI representatives of APs Hefei PMO, BNDCI, Hefei Municipal Optimization of 2 2011.9 Government, villages, groups and 10 BNDCI project design representatives of APs Hefei PMO, BNDCI, Hefei Municipal 3 2011.9 DMS Government, villages, groups and 15 BNDCI representatives of APs Hefei PMO, BNDCI, NRCR, Land and Resources Branch of Baohe District, municipal labor and social security Social 4 2011.9 bureau, municipal women’s federation, 25 BNDCI assessment municipal poverty reduction office, municipal civil affairs bureau, villages, groups and representatives of APs Hefei PMO, BNDCI, NRCR, Land and Resources Branch of Baohe District, municipal labor and social security Resettlement 5 2011.9-10 bureau, municipal women’s federation, 25 BNDCI modes municipal poverty reduction office, municipal civil affairs bureau, villages, groups and representatives of APs Resettlement BNDCI, villages, groups and 6 2011.11 18 BNDCI policies representatives of APs

7.1.2 Participation Plan at the Implementation Stage With the progress of project preparation and implementation, the implementing agency will conduct further public participation. See Table 7-2. Table 7-2 Public Participation Plan Purpose Mode Time Agencies Participants Topics Hefei PMO, Village Disclosure of land BNDCI, land Land bulletin acquisition area, April. and resources acquisition board, All APs compensation rates 2012 bureau, announcement village and resettlement township and meeting modes, etc. village officials Announcement of Hefei PMO, Village compensation BNDCI, land bulletin and May. and resources Compensation fees board, All APs resettlement 2012 bureau, and mode of payment village options for township and meeting land village officials acquisition 1) Finding out anything Hefei PMO, omitted to determine BNDCI, land the final impacts Verification of April. – and resources 2) List of lost land and Field survey All APs DMS results Mar. 2012 bureau, assets of APs township and 3) Preparing basic village officials compensation agreements Hefei PMO, Discussing the final Determination Village BNDCI, land Before income restoration of income meeting and resources implement All APs program and the restoration (many bureau, -tation program for use of programs times) township and compensation fees village officials Labor and All APs Training social security Village 2012.6- (include19 Discussing training program for bureau, meeting 2014.6 working age needs APs township and women ) village officials 1) Resettlement progress and impacts 2) Payment of compensation Villager 2012.7- Township and Monitoring All APs 3) Information participation 2015.7 village officials disclosure 4) Livelihood restoration and house reconstruction 7.2 Grievances and Appeals

Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable

circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established, as shown in Error! Reference source not found.. The basic grievance redress system is as follows: Stage 1: If any right of any AP is infringed on in any aspect of land acquisition or resettlement, he/she can report this to the village committee. The village committee or the AP may resort to the township government to solve the issue. The township government shall record such appeal and solve it together with the village committee or the AP within 2 weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to BNDCI within one month after receiving such disposition, which shall make a disposition within 3 weeks. Stage 3: If the appellant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Hefei PMO within one month after receiving such disposition, which shall make a disposition within 4 weeks. Stage 4: If the appellant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to competent administrative authorities level by level in accordance with the Administrative Procedure Law of the PRC for arbitration after receiving such disposition. Stage 5: If the grievant person is still dissatisfied with the arbitration award of Stage 4, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC after receiving the arbitration award. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Subproject, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media. APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism① AP also could appeal the complaints to civil courts at any stage of the LAR process directly if he or she does not want to proceed through the project GRM. All grievances and complaints (oral or written) will be reported to the ADB in internal and external monitoring report. Table 7-3 Appeal Accepting Agencies and Staff Resettlement office Contact Tel

① For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

Resettlement office Contact Tel Hefei Binhu New District Construction & Jia Chaoling 0551-8233026 Investment Co., Ltd. Land and Resources Branch of Baohe Li Bo 0551-8846242 District Offices of letters and calls of Baohe Xia Jiahai 0551-8852415 District

8 Resettlement Budget

8.1 Resettlement Budget

All costs incurred during land acquisition and resettlement will be included in the general budget of the Subproject. Based on prices in October 2011, the total resettlement costs of the Subproject are 3.294 million yuan, including rural land acquisition costs of 1,587,200 yuan or 48.18% of total costs, no compensation for temporary land occupation, compensation fees for infrastructure and ground attachments of 45,020 yuan or 1.37% of total costs, survey and design costs, M&E costs, training costs and contingencies of 733,000 yuan or 13.01% of total costs, land taxes of 1,263,000 yuan or 38.34% of total costs, and vulnerable group support costs and pensions of 15,870 yuan or 0.48% of total costs. See Table 8-1 for the estimated resettlement costs. See Appendix 8 for the detailed resettlement budget.

Table 8-1 Resettlement Budget Sheet No. Item Amount (10,000 yuan) Percentage (%) Compensation fees for collective land 1 158.70 48.18% acquisition 1.1 Land compensation fees 63.48 19.27% 1.2 Resettlement subsidies 95.22 28.91% 1.3 Young crop compensation fees 3.30 1.00% 2 Temporary land occupation 0.00 0.00% 2.1 Temporary land occupation for silt dump 0.00 0.00% 3 Infrastructure and attachments 4.50 1.37% Subtotal of 1-3 158.70 48.18% 4 Survey and design costs 4.76 1.45% 5 External M&E costs 6.35 1.93% 6 Internal M&E costs 3.17 0.96% 7 Implementation management costs 7.94 2.41% 8 Training costs for officials 4.76 1.45% 9 Contingencies 15.87 4.82% 10 Land taxes 126.30 38.34% 10.1 Land reclamation costs 45.00 13.66% 10.2 Fees for using new construction land 30.00 9.11% 10.3 Farmland occupation tax 45.00 13.66% 10.4 Land acquisition management costs 6.35 1.93% 11 Support fund for vulnerable groups 1.59 0.48% Subtotal of 4-11 170.70 51.82% Total 329.40 100.00%

8.2 Resettlement Investment Schedule and Funding Sources

All resettlement funds of the Subproject are from local counterpart funds and domestic loans. Before or during project construction, the investment plan will be implemented in stages in order not to affect the production and livelihoods of the AHs, as shown in Table 8-2. Table 8-2 Resettlement Investment Schedule Year 2012 2013 Total Amount of investment 296.46 32.94 329.4 (0,000 yuan) Percentage 90% 10% 100%

8.3 Disbursement and Management of Resettlement Funds

8.3.1 Disbursement of Resettlement Funds The Subproject’s resettlement funds will be disbursed on the following principles: After the application for land approval of BNDCI has been approved, Nanhe Village will draft a list of receiver of compensation fees, which will be reviewed by the township government, and approved by the municipal finance, and land and resources departments. After approval, BNDCI will pay the deposit of compensation for land acquisition in full to the Hefei Municipal Finance Bureau before acquisition. The Hefei Municipal Finance Bureau will disburse compensation fees in full according to the approved compensation program and the approved list of receivers within 20 working days of receipt of the approval of land use. The sum payable to the rural collective economic organization will be disbursed to it; the sum payable to LEFs will be paid to them via ―all-in-one‖ bank cards; social security funds for LEFs will be paid directly to the special account of the social security fund. The disbursement of compensation fees will be disclosed to the rural collective economic organization and the LEFs. 8.3.2 Management of Resettlement Funds Resettlement funds must be disbursed in strict conformity with the compensation rates specified in the applicable state regulations on land acquisition and the policies in the RP. The resettlement implementing agency will submit a construction progress report to BNDCI on a monthly basis. BNDCI will review disbursement statements and disburse funds. Compensation fees for land acquisition, house demolition and attachments, including moving subsidies, transition subsidies and early moving rewards, will be approved by the resettlement implementing agency. BNDCI will appoint a consulting agency to conduct regular internal audits on the use of resettlement funds. The finance and audit departments of the Hefei Municipal Government have the power to monitor and audit the use of resettlement funds.

The external M&E agency will perform follow-up monitoring on the use of compensation fees by the AHs during external monitoring.

9 Resettlement Implementation Plan

9.1 Principles for Resettlement Implementation

According to the project implementation schedule, the Subproject will be constructed from 2013 to 2014. In order that the resettlement schedule links up the construction schedule of the Subproject, land acquisition will begin in December 2012 and end in April 2013. The basic principles for resettlement implementation are as follows:

 Land acquisition should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary.

 During resettlement, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of land acquisition will be disclosed, the RIB distributed and public participation activities conducted properly.

 All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason.

9.2 Resettlement Implementation Schedule

The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, land acquisition and house demolition, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1.

Table 9-1 Schedule of Resettlement Activities No. Task Target Agencies responsible Time Remarks 1 Information disclosure 1.1 RIB 3 groups of 1 village Hefei PMO and BNDCI April. 2012 completed 1.2 Disclosure of the RP on ADB’s website CLMA and ADB June 2012 2 RP and budget Approval of RP and budget (including compensation 2.1 Government June. 2012 rates) 2.2 Village-level income restoration programs 3 groups of 2 villages Village committees August. 2012 2.3 Finalizing of the RP based on the detailed design / BNCDI and Hefei PMO October. 2012 3 DMS 3.1 DMS on the 3 affected village groups 3 groups of 1 village BNDCI August. 2012 4 Compensation agreement 4.1 Village-level land compensation agreement 3 groups of 1 village Land and resources bureau Dec. 2012 5 Implementation of livelihood restoration measures 5.1 Distribution of land compensation fees to households 3 groups of 1 village Sub-district office Jan. – Mar 2013 Implementation of village-level income restoration 5.2 3 groups of 1 village Village collective Jan. – Dec. 2013 programs Sub-district office, village 5.3 Advice on income restoration, commerce and work 19 AHs collective, and labor and social August 2012.-Jan 2013 security bureau October 2012 – Dec. 5.4 Implementation of training program for APs 3 groups of 1 village Labor and social security bureau 2013 Confirming vulnerable households and 5.5 2 AHs Civil affairs bureau and PMO Jan 2013 implementing assistance measures PMO, labor and social security 5.6 Hiring APs at the construction stage 50 APs April 2013~Dec 2014 bureau, and contractor 6 Capacity building Training of staff of BNDCI, and the land and 6.1 6 persons ADB/PPTA consultant Feb. – Jun. 2012 resources bureau

No. Task Target Agencies responsible Time Remarks PMO, and land and resources 6.2 Training of county, township and village officials 20 persons April. – September. 2012 bureau 7 M&E 7.1 Baseline survey As per the RP External M&E agency November. 2012 7.2 Establishment of internal M&E mechanism As per the RP BNCDI, Hefei PMO and CLMA July. 30, 2012 7.3 Appointing an external M&E agency One CLMA October. 2012 7.4 Internal monitoring reporting semiannual report BNCDI, Hefei PMO and CLMA From August. 2012 Jan. 2013 No.1 report External monitoring reporting Semiannual report External M&E agency 7.5 July. 2013 No.2 report Jan. 2014 No.1 report 7.6 External evaluation reporting Annual report External M&E agency Jan. 2015 No.2 report Post evaluation agency and 7.7 Post-evaluation report One report Jul. 2015 CLMA 8 Public consultation and documentation BNCDI Ongoing 9 Grievance redress and documentation NNCDI Ongoing 10 Disbursement of compensation fees October ~November. 10.1 Disbursement to implementing agency Initial funds 2012 10.2 Disbursement to villages Most funds BNCDI December. 2012 10.3 Disbursement to households Most funds BNCDI and village committees Mar. 2013 11 Commencement of civil construction 11.1 The Subproject BNDCI and the Contractor April. 2013

10 Monitoring and Evaluation

In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, house demolition and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policies, including internal and external monitoring.

10.1 Internal Monitoring

The CLMA, Hefei PMO and BNCDI will develop a detailed internal monitoring plan for land acquisition and resettlement, including: (1) Payment, use and availability of compensation fees for land acquisition, and implementation progress and quality of production and development options of APs; (2) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during land acquisition, house demolition and resettlement; (3) Restoration of the household income of APs; (4) Special support for vulnerable groups; (5) Payment, use and availability of compensation fees for resettlement; (6) Level of public participation and consultation during land acquisition, house demolition and resettlement; (7) Resettlement training and its effectiveness; and (8) Working mechanism, training, working hours and efficiency of local resettlement offices The CLMA will submit an internal monitoring report to ADB semiannually. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison. Table 10-1 and Table 10-2 provide some formats.

表 10-1 Progress Report of Land Acquisition and Resettlement

______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Actual during Accumulative Proportion of Item Unit RP DMS implementation total completion Permanent land acquisition Mu Temporary land use Mu Payment of land compensation 10,000 yuan Personnel training Person Job arrangement Person Reported by: Signature (person responsible): Official seal:

Table 10-2 Implementation Schedule of Fund Use

______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Investment Description Unit/ Compensation Adjusted Proportion of Affected unit required ① Qty. received (yuan) compensation compensation (yuan) Village 1 Village 2 Collectives APs Reported by: Signature (person responsible): Official seal:

10.2 External Monitoring

According to ADB’s policies, the CLMA will employ a qualified, independent and experienced resettlement agency as the independent resettlement M&E agency. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, compliance with the RP as well as rational of ADB policies and give advice. It shall also conduct follow-up monitoring of the APs’ production level and living standard, and submit M&E reports to the CLMA and ADB. 10.2.1 Scope and Methodology of External Monitoring (1) Baseline survey The external M&E agency will conduct a baseline survey of the affected villages and village groups affected by land acquisition to obtain baseline data on the monitored displaced households’ production level and living standard. The production level and living standard survey will be conducted semiannually to track variations of the APs’ production level and living standard. This survey will be conducted using such methods as panel survey (sample size: 100% of the households affected by land acquisition, to be sampled randomly), random interview and field observation to acquire necessary information. A subsequent analysis and an evaluation of income restoration and living standards will be made on the basis of the Baseline Survey Report. (2) Periodic M&E During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview:  Payment and amount of compensation fees;  Training;

① Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in ―Description‖.

 Support for vulnerable groups;  Restoration and rebuilding of infrastructure and special facilities;  Production resettlement and restoration;  Compensation for lost properties;  Compensation for lost working hours;  Transition subsidy;  Timetables of the above activities (applicable at any time);  Resettlement organization/performance-capacity issues;  Use of compensation fees for collective land and income of APs;  Income growth of labor through employment; and  If APs have benefited from the Subproject (3) Public consultation and participation The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. (4) Grievance redress The external M&E agency will visit the affected villages and groups periodically, and inquire the CLMA, district and sub-district resettlement offices and implementing agencies that accept grievances about to assess grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to resolve problems quickly and make the resettlement process more effectively. 10.2.2 External Monitoring Reporting A routine monitoring report shall at least include the followings: (I) monitoring objects of the report; (II) the progress of the resettlement; (III) main findings; (IV) main existing problems; (V) basic appraisal, comments and suggestions. The external monitoring report should include the indicators detailed in Table 10-3. Table 10-3 key indicators to be monitored Resettlement impacts and implementation Completed Planned Updated Completed Cumulative / item Actual in current (RRP) (RP) in total completion period Area Permanent (mu) 1 Land AH Acquisition AP

Area Temporary (mu) 2 Land AH occupation AP

resettlement 3 compensation (CNY) AP’s incomes and expenditures Year 2012 2013 2014 2015

Resettlement impacts and implementation Completed Planned Updated Completed Cumulative / item Actual in current (RRP) (RP) in total completion period Average annual income per 1 capita (Yuan/person) Average annual expenditure per 2 capita(Yuan/person)

The external M&E agency will submit a monitoring or evaluation report to ADB and the CLMA semiannually. See Table 10-4 for the schedule for report submission. Table 10-4 Resettlement M&E Agenda Report Date 1 Socioeconomic Baseline Survey Report Oct. 2012 2 Monitoring Report No.1 Jan. 2013 3 Monitoring Report No.2 Jul. 2013 4 Evaluation Report No.1 Jan , 2014 5 Evaluation Report No.2 Jan , 2015

10.3 Resettlement Post-evaluation

After project implementation, the theory and methodology of post-evaluation will be applied to evaluate the Subproject’s resettlement activities on the basis of M&E to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work. The post-evaluation agency will be entrusted to prepare terms of reference for post-evaluation, establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report of the Subproject for submission to the CLMA and ADB.

Appendices

Appendix 1: Schematic Map of the Subproject

Appendix 2: Summary of Intercepting Sewers①

Temporarily Nature Pipe diameter Construction No. Component Area Road's name Starting point Ending point Pipe length (m) occupied of road (mm) method area (m2) 1 Yulong Road Hangzhou Road Zhujiang Road d400 2461 1968.8 Trenching 2 Meili Road Nanning Road Zhujiang Road d400 796 636.8 method 3 Yunnan Road Yungu Road Shenzhen Road d400-d600 3671 2936.8 Pipe jacking 4 Guizhou Road Hangzhou Road Lasa Road d400-d500 3633 2906.4 method and 5 Sichuan Road Hangzhou Road Zhujiang Road d400-d600 2755 2204 Trenching 6 Xizang Road Hangzhou Road Zhujiang Road d400-d600 2755 2204 method Hefei City 7 Binhu New Huizhou Road Nanning Road Zhujiang Road d400-d1000 1475 1180 District 8 Guangxi Road Hangzhou Road Zhujiang Road d400-d500 2755 2204 Beilaowei Binhu State Environment New Western Jindou Trenching 9 Hangzhou Road Zhujiang Road owned d400 2810 2248 Improvement District Road method 10 Intercepting Hunan Road Yungu Road Zhujiang Road d400-d500 2171 1736.8 Project 11 Shaoshan Road Yungu Road Zhujiang Road d400-d500 2171 1736.8 Pipe jacking 12 Hongzehu Road Yungu Road Zhujiang Road d400-d600 2171 1736.8 method and 13 Lushan Road Hongzehu Road Huanhubei Road d400-d600 2182 1745.6 Trenching 14 Jiangxi Road Hanshui Road Huanhubei Road d400-d600 2114 1691.2 method 15 Wuyishan Road Hanshui Road Huanhubei Road d400-d900 2114 1691.2 16 Huashan Road Hanshui Road Nanning Road d400-d600 885 708 17 Baiyunshan Road Yungu Road Nanning Road d400 885 708 Trenching

① Confirmed by PMO and DI, construction shall be completed within 14 days for each segment, and here is no significant disturbance to commercial activities adjacent to road.

Temporarily Nature Pipe diameter Construction No. Component Area Road's name Starting point Ending point Pipe length (m) occupied of road (mm) method area (m2) 18 Hengshan Road Yungu Road Huanhubei Road d400-d600 1090 872 method 19 Aomen Road Poyanghu Road Huanhubei Road d400-d600 771 616.8 20 Hongkong Road Poyanghu Road Huanhubei Road d400 629 503.2 21 Taiwan Road Poyanghu Road Huanhubei Road d400 556 444.8 22 Alishan Road Chengdu Road Huanhubei Road d400 272 217.6 Eastern Jindou 23 Chengdu Road Huanhubei Road d400 202 161.6 Road 24 Hangzhou Road Yulong Road Guangxi Road d400 2178 1742.4 Trenching method 25 Wuhan Road Guizhou Road Guangxi Road d400 2056 1644.8 26 Yungu Road Yulong Road Huizhou Road d400-d500 2145 1716 27 Poyanghu Road Hunan Road Baohe Road d400-d500 1967 1573.6 28 Chengdu road Yulong Road Baohe Road d400-d600 5557 4445.6 29 Minjiang Road Hunan Road Baohe Road d400 1954 1563.2 30 Nanning Road Yulong Road Baohe Road d400-d800 5602 4481.6 Pipe jacking 31 Lijiang Road Hunan Road WuyishangRoad d400-d600 1040 832 method and 32 Jialingjiang Road Meili Road WuyishangRoad d400-d600 4772 3817.6 Trenching 33 Bingpu Road Hunan Road Jiangxi Road d400-d600 940 752 method 34 Guiyang Road Meili Road WuyishangRoad d400-d500 4772 3817.6 35 Chaocheng Road Hunan Road Huanhubei Road d400 848 678.4 Trenching 36 Zunyi Road Guizhou Road Huanhubei Road d400 3206 2564.8 method

37 Zhujiang Road Yulong Road Huanhubei Road d400-d1200 5237 4189.6 Pipe jacking 38 Kunming Road Dianchi Road Kunming Road D800-d1400 1552 1241.6 method 合计 85150 68120

Appendix 3: Minutes of Public Participation Meetings

Time October 9, 2011 Venue BNDCI Organizer BNDCI, survey team of NRCR Participants NRCR, BNDCI Topic Project progress, agenda, communication on information preparation The PMO was consulted and its agenda arranged; policies and practices Key points and on compensation for land acquisition in the subproject area were outputs collected. Time October 9, 2011 Venue Yandun Sub-district Office Organizer BNDCI, survey team of NRCR NRCR, BNDCI, Yandun Sub-district Office, Nanhe Village Committee, Participants village group representatives, APs, women representatives, representatives of vulnerable groups Topic Policy publicity and satisfaction, resettlement work The Yandun Sub-district Office attaches great importance to the Subproject and supports it actively. The affected village groups are willing to cooperate in land acquisition on a compensated basis, and will Key points and participate in project construction. In the subproject area, women enjoy outputs the same access to public participation as men, and enjoy almost the same family status as men. The vulnerable households differ slightly from ordinary households in terms of income, and would receive assistance from the sub-district office every year. Time October 10, 2011 Venue Nanhe Village Committee Organizer BNDCI, survey team of NRCR NRCR, BNDCI, Nanhe Village Committee, village group representatives, Participants APs, women representatives, representatives of vulnerable groups Topic Policy publicity and satisfaction, resettlement work Villagers think the Beilaowei Gully Segment is seriously polluted, affecting their production and lives. They approve of river management for quality Key points and improvement, and will reduce the pollution of nearby waters. They also outputs expect to connect their houses to the sewer network to reduce the pollution of rivers and Chao Lake. They have become aware of the WWTP by various means, and are clear about the compensation policies. Time October 11, 2011 Venue Baohe District Government Organizer BNDCI, survey team of NRCR District land and resources bureau, civil affairs bureau, labor and social Participants security bureau, agriculture bureau, women’s federation, poverty reduction office, etc. Learning the policies and practices on compensation for land acquisition Topic in Baohe District, and information on the endowment insurance for LEFs, resettlement and training Baohe District has developed quickly in recent years, and a large amount of land would be acquired every year. Land acquisition has been smooth Key points and because compensation policies are reasonable, the endowment outputs insurance system for LEFs is sound, and LEFs can attend skills training and be resettled properly.

Interviews with AHs

Appendix 4: Gender Analysis Form

Part A—Gender analysis of rural women in the subproject area 1. Legal rights According to laws of the PRC, women have equal legal rights with men, though of women some women are not fully aware of this. 2. Social Women of the subproject area have relatively good social status. All key status of matters of a family are determined by the couple through discussion. Men are women the backbone of families, and attend the important meetings of the village. However, women can influence men when they make decisions at meetings. 3. Title to land Women have the same title as men. Like other parts of China, in the subproject and properties area, when a daughter is married, her land will remain in her mother’s family and she can only share the land owned by her husband’s family since the household contract responsibility system was put into practice in 1982. However, if a second round of land contracting has been carried out at the affected village (around 1999), this situation has been corrected. If land acquisition, house demolition or resettlement is involved, women will have equal rights to compensation. 4. Right to Women have equal rights. collective properties 5. Living and There is no restriction on gender role. However, women do housework and gender role appropriate farm work mainly in Chinese rural areas, while men mostly do farm work or work outside. Generally, the working hours of women are 1.2 times those of men. In addition, many young women also work outside. 6. Contribution Women’s income is from farming and household sideline operations mainly, to household accounting for about 25% of household income. income 7. Family Women have an equal voice in decision-making; when men are away for work, status women make decisions themselves in many aspects. 8. Educational Boys and girls enjoy equal opportunities in receiving education, and as long as level children study hard, their parents would do their best to support their school education. 9. Health Women’s health condition is quite good and there is no significant difference in nutrition level compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village and Women are represented in all village committees. In addition, women have a government good informal network in the village and the village group. Women may agencies participate in the election of the village committee, and have the right to elect and be elected; local governments attach great importance to women’s

Part A—Gender analysis of rural women in the subproject area development, especially in poverty reduction. Overall Women enjoy a good status in the subproject area, and there is no restriction evaluation and on gender role; though women seldom participate in the decision-making of key risks public affairs of the village collective, they can express their views in many ways (e.g., through male members of their families). B—Gender analysis of women during resettlement Mitigation Gender issue Concern/risk Impact of the Subproject measures 1. Land, Women are Men and women have equal rights Cash compensation properties and deprived of land to compensation for land acquisition, or improvement of right to or properties or house demolition and resettlement; the quality of compensation have no right to the Subproject will not have any remaining land, and compensation. significantly adverse impact on crop restructuring women. 2. Production and Women are All AHs will lose part of land only, so (1) Women will income affected even the AHs will lose part of income only. receive restoration after more seriously, Compensation fees will be used at compensation fees land acquisition and receive less the AHs’ discretion. Only seriously for land acquisition; assistance. affected households have to change (2) At least 50% of their income sources. In addition to trainees of skills cash compensation, the AHs will be training will be assisted in restoring income through women; (3) During auxiliary measures (priority in construction, employment during construction, women will obtain at skills training and subsequent least 30% of support, etc.) unskilled job opportunities. 4. Increase of Women have a The Subproject will not lead to Women are given gender heavier burden gender inequalities. For most equal provision or inequalities or fewer households, resettlement impacts preferential opportunities. are not serious. Land loss and treatment. Monitor sufficient compensation will help results. women change the crop structure (e.g., cultivating more cash crops), which will increase their income. 5. Social network The social The Subproject will not affect the No impact system network is social network seriously. damaged. 6. Impact on Serious health or The Subproject will not affect the Providing health / increase social problems villages seriously, but some assistance together of social due to the stress seriously affected households and with the civil affairs problems of resettlement vulnerable groups will be faced with department (violence, AIDS difficulties. propagation, etc.)

Appendix 5: Distribution and Structure of Survey Samples

# of sample Sampling rate No. Sub-district Village Group # of AHs households (%) 1 Yandun Nanhe Group 10 4 4 100

# of sample Sampling rate No. Sub-district Village Group # of AHs households (%) 2 Group 11 5 5 100 3 Group 12 10 10 100

Appendix 6: Provisions of Land Laws, Regulations and Policies of the PRC and Anhui

Abstract of the Land Management Law and Relevant Policies Item Key points Index The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land. Article 2 of the Land Land ownership The State introduces the system of compensated use of land owned by the State except the land has been Administration Law of the PRC allocated for use by the State according to law. Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law; …… Articles 43 and 44 of the Land Whereas occupation of land for construction purposes involves the conversion of agricultural land into land Administration Law of the PRC Application for for construction purposes, the examination and approval procedures in this regard shall be required. construction Governments at all levels shall strengthen the administration of plans for land use and exercise control of Article 13 of the Measures of land the aggregate land for construction purposes. If no planning quota for use of farmland for other purposes is Anhui Province for the available or such quota is exceeded, no additional land for construction shall be approved. Saved planning Implementation of the Land quotas for use of farmland for other purposes may be carried over to the next year after approval. Administration Law of the PRC (June 26, 2004) The acquisition of basic farmland land or exceeding 35 hectares outside the basic farmland, and other land exceeding 70 hectares shall be approved by the State Council. Article 45 of the Land Acquisition of land other than prescribed in the preceding paragraph shall be approved by the governments Administration Law of the PRC of provinces, autonomous regions and municipalities and submitted to the State Council for the record. Land acquisition The land administrative authorities of a municipal or county government shall draft a plan for use of Article 33 of the Measures of authority farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land supply plan Anhui Province for the to the municipal or county government for approval, and escalate them to governments with approval Implementation of the Land authority for approval. In case of acquisition of woodland, the consent of the woodland administrative Administration Law of the PRC authorities shall be obtained in advance. (June 26, 2004)

Item Key points Index For the acquisition of land by the State the local governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures. Land acquisition After the plan for land compensation and resettlement fees is finalized, related local governments shall Articles 46, 48 and 49 of the Land announcement make an announcement and hear the opinions of the rural collective economic organizations and peasants Administration Law of the PRC system whose land has been acquired. Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision. In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The Compensation resettlement fee shall be calculated according to the number of agricultural population to be resettled. The Article 47 of the Land rates for land number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated Administration Law of the PRC acquisition land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition.

Item Key points Index Land compensation rates for acquisition of land other than arable land: for fishponds, etc., 6 times the average output value of the preceding 3 years; for orchards, etc., 7 times the average output value of the preceding 3 years; in case of no harvest, 6 times the average output value of similar land of the preceding 3 years; for reclaimed land which has been cultivated for less than 3 years, 3-4 times the average output value of the arable land of the same village (team) of the preceding 3 years; for reclaimed land which has been cultivated for 3 years or more, the same as arable land; land used for construction collectively owned by farmers, 4-5 times the average output value of the arable land of the same village (team) of the preceding 3 years; for other land, 2-3 times the average output value of the arable land of the same village Articles 34, 35, 36 and 37 of the (team) of the preceding 3 years. The compensation rates for woodland shall be governed by the applicable Measures of Anhui Province for laws and regulations. Resettlement subsidy standard for every farmer to be resettled: for acquisition of the Implementation of the Land farmland, 3-4 times the average output value of the preceding 3 years; for land used for construction Administration Law of the PRC collectively owned by farmers, 2-3 times the average output value of the arable land of the same village (June 26, 2004) (team) of the preceding 3 years; for barren hills and slopes, no resettlement subsidy. If the farmers to be resettled are unable to maintain their former standard of living, with the approval of the provincial Government, the resettlement subsidy may be increased. However, the sum of the land compensation and the resettlement subsidy shall not exceed the following limit: (1) In case of acquisition of arable land, 30 times the average output value of the preceding 3 years of the acquired arable land; …… young crops on the acquired arable land shall be compensated for at the output value of crops of that season; for perennial crops shall be compensated for at their annual output value; no compensation shall be granted if there is no young crop. Users who use the land temporarily should use the land according to the purposes agreed upon in the Article 57 of the Land contract for the temporary use of land and should not build permanent structures. The term for the Administration Law of the PRC temporary use of land shall not usually exceed two years. Temporary land If state land or land collectively owned by farmers is to be used temporarily for project construction or Article 45 of the Measures of use geologic examination, such use shall be approved by the land administrative authorities of the local Anhui Province for the municipal or county Government; temporary land use within the urban planning area shall be approved by Implementation of the Land the urban planning administrative authorities before submission for approval. Administration Law of the PRC (June 26, 2004)

Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and Their Application

SC [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR [2004] No.238 County-level and above local governments shall take practical measures so that the standard of living of LEFs is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground attachments and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the Article 12 prevailing laws and regulations are insufficient to maintain the former standard of living of the LEFs or to Fixation of uniform AAOV rates Improvement of pay the social security expenses of farmers who lose all land due to land acquisition, governments of Determination of uniform AAOV measures for provinces, autonomous regions and municipalities directly under the central government shall approve multiples compensation an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy Fixation of integrated land prices for for land attains the statutory upper limit and is still insufficient to maintain the former standard of living of the land acquisition areas acquisition LEFs, local governments may pay a subsidy from the income from compensated use of state land. Distribution of land compensation Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. County-level and above local governments shall take specific measures to guarantee long-term livelihoods of LEFs. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Resettlement for agricultural Article 13 Within the urban planning area, local governments shall bring farmers who lose all land due to land production Proper acquisition into the urban employment system, and establish a social security system; out of the urban Resettlement by reemployment resettlement of planning area, in acquiring land collectively owned by farmers, local governments shall reserve Resettlement by dividend distribution LEFs necessary arable land or arrange appropriate jobs for LEFs within the same administrative area; farmers Non-local resettlement without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Disclosure of information on land Article 14 Before acquisition is submitted for approval pursuant to law, the use, location, compensation rate and acquisition Improvement of mode of resettlement of the land to be acquired shall be notified to LEFs; the survey results of the Confirmation of land acquisition land acquisition present situation of the land to be acquired shall be confirmed by rural collective economic organizations survey results procedures and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall Organization of land acquisition organize a hearing in accordance with the applicable provisions. The materials for notification to and hearing confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition.

SC [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR [2004] No.238 Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved matters of land acquisition shall be disclosed unless in special cases. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. Article 15 Disclosure of approval items of land Governments of provinces, autonomous regions and municipalities directly under the central government Strengthening acquisition shall formulate the procedures for the distribution of the land compensation within rural collective Supervision Payment of compensation and economic organizations on the principle that the land compensation is used for rural households affected over the resettlement expenses for land by land acquisition mainly. implementation acquisition Rural collective economic organizations affected by land acquisition shall disclose the receipt, of land Post-approval supervision and disbursement and allocation of land compensation fees to their members and accept supervision. The acquisition inspection of land acquisition agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations. Abstract of the Measures of Anhui Province for the Acquisition of Collectively-owned Land Item Key points Index Rates of land reclamation costs: (1) In case of occupation of general farmland, land reclamation Article 4 of the Detailed Rules of costs shall be collected at the rate specified in the table attached hereto. (2) In case of occupation Anhui Province for the of basic farmland, land reclamation costs shall be collected at 40% beyond the above rate. If Management of the Collection Land reclamation costs farmland is occupied by any state or provincial key infrastructure construction project, land and Use of Farmland reclamation costs shall be collected at a rate not less than the lower limit of 6 yuan/m2 stipulated in Reclamation Fees (Cai Zong the Measures of Anhui Province for the Implementation of the Land Administration Law of the [2001] No.1061) PRC, unless otherwise stipulated by the State Council or the provincial government. Subjects of employment and social security for LEFs shall be identified rationally, and shall be Article 2 of the Guidelines of the agricultural population losing all or most of farmland after land acquisition approved by the State Anhui Provincial Government on Council or the provincial government according to law within urban (or town) planning areas in Doing Well in Employment and Principles to be followed principle. Specific criteria and periods for the identification of subjects of employment and social Social Security for in promoting the security for LEFs shall be determined by municipal and county governments based on local Land-expropriated Farmers (APG employment and social conditions. The specific procedure is as follows: An individual LEF files an application; the village [2005] No.63) security of LEFs collective economic organization members, village committee or village group shall discuss, and the township government or sub-district office shall study and disclose the list of eligible LEFs; the list shall be reviewed by the labor and social security department, and the land and resources

Item Key points Index department, and then submitted to the municipal or county government for approval. Compensation rates for land acquisition of cities and counties shall be fixed by the provincial Article 4 of the Notice of the government in a unified manner, and adjusted every two years based on state provisions and local Anhui Provincial Government on compensation rates for economic development. Each municipal government shall fix compensation rates for houses, Publishing the Compensation land acquisition attachments and young crops on acquired land based on local conditions, and put them into Rates for Land Acquisition of practice after submission to the provincial department of land and resources for reference. These Anhui Province (APG [2009] rates shall be adjusted every two years. No.132) (December 31, 2009) Governments at all levels shall give proper employment training to LEFs carefully and strengthen Article 3 of the Notice of the financial support. LEFs that have been trained and qualified by the state for the first time shall be General Office of the Anhui subsidized with reemployment funds, and any deficiency thereof shall be disbursed from fees for Provincial Government on using state-owned land of local governments. Labor and social security, and education Forwarding the Notice of the departments at all levels shall organize social education and training agencies to give introductory General Office of the State Strengthening the and professional skills training to LEFs. Labor and social security departments shall issue Council on Forwarding the employment training of employment service cards to eligible LEFs properly, and grant subsidies for professional skills Guidelines of the Ministry of LEFs training, business start-up training and professional skills identification to LEFs who have received Labor and Social Security on employment service cards. Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)

Appendix 7: Measures for the Acquisition of Collective Land and Policy on the Endowment Insurance for Land-expropriated Farmers of Hefei Municipality

Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136)

The Measures of Hefei Municipality for the Acquisition of Collectively Owned Land were adopted at the first executive meeting of the municipal government on February 5, 2008, are hereby issued and will become effective on May 1, 2008. March 26, 2008

Measures of Hefei Municipality for the Acquisition of Collectively-owned Land Chapter 1 General provisions Article 1 These Measures have been formulated in accordance with the Real Right Law of the PRC, the Land Administration Law of the PRC and its implementation measures, and the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC in order to regulate the acquisition of collectively-owned land, protect the lawful rights and interests of owners and holders of the right to use collectively-owned land, and ensure successful urban construction. Article 2 These Measures shall apply when any collectively-owned land is acquired within the urban area of our municipality. Article 3 The municipal land and resources department shall be responsible for our municipality’s land acquisition management in a unified manner, and the municipal land acquisition office shall be entrusted by the municipal land and resources department to handle routine affairs of land acquisition. The municipal labor and social security, finance, public security, construction, and real estate departments shall perform their respective responsibilities in respect of land acquisition. The district governments shall organize their departments concerned, township governments and sub-district offices to implement land acquisition within their jurisdictions. Land acquisition activities, and relevant matters that should be handled by township governments and sub-district offices within the Hefei Hi-tech Development Zone, the Hefei Economic and Technological Development Zone, and the Hefei Xinzhan Integrated Development & Experiment Zone (hereinafter collectively, development zones) shall be performed or handled by the development zone administrative committees. A joint conference system for land acquisition security shall be established under the leadership of the municipal land and resources department, involving the municipal labor and social security, finance, public security, construction, and real estate departments, the district governments and the development zone administrative committee to study and solve issues in land acquisition security work regularly.

Chapter 2 Implementation procedures of land acquisition Article 4 The approval procedures for land acquisition are as follows: (1) The entity applying for land acquisition shall prepare the required materials, and file an application with the municipal land and resources department. The entity applying for land acquisition may be a district government, a development zone administrative committee, the municipal land purchase and reserve agency, and any project construction agency to which land may be supplied by transfer or agreement.

(2) The municipal land acquisition office shall investigate the ownership, type and size of the land to be acquired, the agricultural population involved, and the ownership, types and quantities of ground attachments together with the district labor and social security department, and the local police station, and the survey results shall be confirmed by the affected rural collective economic organization (or village committee or community committee, hereinafter collectively, the rural collective economic organization), farmers and owners of ground attachments together. (3) The municipal land and resources department shall notify the purpose and position of the land to be acquired, the compensation rate, resettlement mode and opinion on the endowment insurance for LEFs to the affected rural collective economic organization and rural households in writing together with the municipal labor and social security department. If the parties concerned apply for a hearing, a hearing shall be organized as required. (4) The municipal land and resources department shall prepare a farmland conversion program, a farmland supplementation program and a land acquisition program, which shall be reviewed by the municipal government for approval. (5) According to the notice of payment for construction land, the municipal finance department shall pay fees for using additional construction land, and the entity applying for land acquisition shall pay other taxes and fees on approval. Article 5 After the land has been approved according to law, compensation and resettlement shall be performed as follows: (1) Within 15 days of issue of the land approval, the municipal land and resources department shall disclose the land acquisition, compensation and resettlement program (hereinafter, the land acquisition program) at the location of land acquisition together with the municipal labor and social security department. The land acquisition program shall include the following: a. Land acquisition approving authority, approval number, purpose of acquired land; b. Range, size, position and type of land acquisition, and agricultural population to be resettled and included in the endowment insurance for LEFs; c. Rate, amount and distribution of compensation fees for land acquisition; d. Mode of resettlement for agricultural population, and rate, amount and mode of payment of resettlement subsidies; e. Rate and mode of payment of compensation fees for ground attachments and young crops; f. Mode of participation of LEFs in endowment insurance; g. Period for consultation; and h. Other relevant matters. If the affected rural collective economic organization and farmers have any objection to land acquisition, compensation or resettlement, such objection shall be raised within the specified period of announcement. (2) If the affected rural collective economic organization and farmers have any objection to land acquisition, compensation or resettlement, the municipal land and resources department shall study such objection together with the municipal labor and social security department, and the local township government or sub-district office, improve the compensation and resettlement program, and submit it to the municipal government for approval and implementation. In particular, if the affected rural collective economic organization or any farmer has any dispute the compensation rates for land acquisition, the municipal government shall settle such dispute; failing this, the government approving land acquisition shall make a ruling. Before such dispute is settled, land acquisition shall not be stopped and afterwards, the ruling shall apply. (3) Within 30 days of expiry of the announcement of the land acquisition program (or within 30 days of approval by the municipal government if the land acquisition program is amended), the municipal land and resources department shall verify the

agricultural population to be resettled, persons to be resettled and those to be insured together with the municipal labor and social security, finance, and public security departments, calculate the amount of compensation payable, and send a copy thereof to the district government (development zone administrative committee). Within 20 days of verification, the entity applying for land acquisition shall transfer support and self-employment subsidies, and compensation fees for ground attachments and young crops to the district (development zone) special financial account, and the district government (development zone administrative committee) shall transfer such funds directly to the personal bank cards of the LEFs. The funds used for the endowment insurance for LEFs shall be transferred to the special financial account of the endowment insurance fund for LEFs. (4) The affected rural collective economic organization and farmers shall hand over the acquired land within 30 days of full payment of compensation fees.

Chapter 3 Management of compensation fees for land acquisition Article 6 Compensation fees for land acquisition shall include land compensation fees, resettlement subsidies, and compensation fees for ground attachments and young crops. Land compensation fees and resettlement subsidies shall be subject to the compensation rates for land acquisition approved by the provincial government. The compensation rates for houses and other ground attachments, and young crops shall be subject to the applicable provisions of our municipality. Article 7 Land compensation fees shall be paid as follows: (1) 70% of the total amount will be used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs; (2) 30% shall be paid to the rural collective economic organization owning such land, and the use thereof shall be supervised by the district government under measures otherwise stipulated. Article 8 Resettlement subsidies shall be used to pay support and self-employment subsidies, and the remainder will be transferred to the special financial account of the endowment insurance fund for LEFs. Article 9 Compensation fees for ground attachments and young crops shall be paid to their proprietors. Any ground attachment or young crop built or cultivated on the land to be acquired after the announcement of land acquisition shall not be compensated for upon land acquisition.

Chapter 4 Resettlement of LEFs Article 10 A dynamic statistics system of agricultural population and cultivated land shall be established at the district (development zone), township (sub-district) and village (community) levels. Article 11 Agricultural population to be resettled for land acquisition refers to the registered resident agricultural population enjoying land contract and management rights, and assuming agricultural obligations within the acquired land before the publication of the land acquisition announcement, including registered children, those entering the rural collective economic organization by lawful marriage, and those leaving the rural collective economic organization by marriage whose registered residence has not been transferred out, and who still enjoy land contract and management rights in the rural collective economic organization. The following persons shall be regarded as agricultural population to be resettled: (1) Servicemen and students whose registered residence has been transferred out temporarily; (2) Those under labor reform; and

(3) Those still enjoying land contract and management rights in the collective, and having never been resettled for land acquisition, though their registered residence has been transferred out temporarily. Article 12 The population to be resettled shall be the acquired cultivated area divided by the per capita cultivated area of the rural collective economic organization before acquisition, and excludes those resettled before acquisition. Persons to be resettled shall be determined as follows: (1) If all contracted land of a household is acquired, all members of such household shall be resettled; (2) If the contract land of a household is partly acquired, the population to be resettled of such household = acquired cultivated area ÷ per capita cultivated area of such household; (3) If the contract land of a household is partly acquired, but per capita cultivated area is less than 0.3 mu after acquisition or over 70% of the contracted land is acquired, the whole household may be resettled as long as it waives the remaining contracted land voluntarily and hands it over to the collective economic organization for reallocation. The list of persons to be resettled shall be proposed by the rural collective economic organization, disclosed at the affected village group for not less than 5 days, reviewed by the township government (sub-district office), confirmed by the district government (development zone administrative committee), and approved by the municipal land and resources department together with the municipal labor and social security, finance, and public security departments. Article 13 With the time of written approval of land acquisition being the reference time point, anyone under 16 full years shall be granted a support subsidy of 12,000 yuan at a time; anyone attaining 16 full years shall be included in the endowment insurance system for LEFs, and granted a self-employment subsidy of 12,000 yuan at a time The measures for the endowment insurance for LEFs shall be otherwise formulated. Article 14 The public security department shall go through the agricultural-to- nonagricultural transformation formalities in household registration for LEFs timely. Any LEF who is eligible for the urban MLS benefit after transformation shall be included in the urban MLS system by the civil affairs department. Article 15 After conversion in registered residence, LEFs shall be included in the urban employment service system. Governments at all levels and departments concerned shall take active measures to encourage enterprises, public institutions and communities to employ LEFs, support the self-employment and independent start-up of LEFs, and urge land users to employ LEFs with priority. Unemployed LEFs may get registered with district and development zone public employment service agencies and receive an employment service card to enjoy free referral and a one-time professional training subsidy. Funds for employment support and free employment services for LEFs shall be disbursed from reemployment funds.

Chapter 5 Legal liability Article 16 If any of the following situations occur, the competent authority shall order the person liable to correct it, and the person liable shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. (1) The entity affected by land acquisition or any department concerned reports data falsely, or practices fraud during land acquisition to gain compensation fees for land acquisition, or withholds compensation fees for land acquisition; (2) Compensation fees for land acquisition are embezzled;

(3) Any civil servant neglects his/her duties, abuses his/her authorities or commits malpractice in the compensation for land acquisition; (4) The land user performs land acquisition, compensation and resettlement without authorization; or (5) Anyone impedes land acquisition, or prevents any state organ from performing its duties.

Chapter 6 Supplementary provisions Article 17 If any land acquisition program has been approved before the effective date hereof, such program shall prevail. Article 18 The Feidong, Feixi and Changfeng County Governments shall comply with these Measures, and otherwise formulate their insurance standards and submit them to the municipal government for reference. Article 19 These Procedures come into effect from May 1, 2008, and the Interim Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (HMG [2003] No.138) shall be abolished thereupon.

 Notice on Issuing the Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1) County and district governments, and all departments of and agencies directly under the municipal government: The Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers have been adopted at the first executive meeting of the municipal government in 2008 and are hereby issued to you for careful implementation.

March 28, 2008

Measures of Hefei Municipality on the Endowment Insurance for Land-expropriated Farmers Chapter 1 General provisions Article 1 In order to further promote the endowment insurance for IEFs, and protect the lawful rights and interests of IEFs, these Measures have been formulated in accordance with the Notice of the General Office of the State Council on Relaying the Opinion of the Ministry of Labor and Social Security for Instructing Work on Giving Occupational Training and Social Security to Farmers Whose Lands are Expropriated (SCO [2006] No.29), Guidelines of the Anhui Provincial Government on Doing Well in the Employment and Social Security for IEFs (APG [2005] No.63) and the Measures of Hefei Municipality for the Acquisition of Collectively Owned Land (Decree [2008] No.136). Article 2 Subjects of the endowment insurance for LEFs are those having attained the age of 16 years or more in the agricultural population to be resettled for land acquisition, but those already entitled to the endowment insurance of workers of urban enterprises or the benefit for retirement (separation) of public organs or institutions, or entitled to the basic endowment insurance for retirees of urban collective enterprises not insured are excluded. The agricultural population to be resettled for land acquisition referred to in the preceding paragraph shall be identified in accordance with the Measures of Hefei Municipality for the Acquisition of Collectively Owned Land. Article 3 For candidates of the endowment insurance for LEFs, the rural collective economic organization (or village committee or neighborhood committee) shall propose a list according to the policy, post it at the villager team affected by land acquisition for not less than 5 days, and then submit it to the Xiang/town Government (sub-district office) for examination and the district Government (development zone administrative committee) for confirmation. The list shall be approved by the municipal

land and resources authorities together with municipal labor and social security, finance and public security authorities. Article 4 The municipal labor and social security authorities are the department in charge of the endowment insurance for LEFs, responsible for policy-making for the endowment insurance for LEFs, establishing premium payment records and managing personal accounts for LEFs. The municipal land and resources, finance, public security, auditing and supervision authorities shall do well in the endowment insurance for LEFs collaboratively according to their respective duties.

Chapter 2 Raising of insurance funds Article 5 Endowment insurance funds for LEFs are brought into the special account of the municipal finance, and subject to management of the receipt and disbursement lines. The sources of funds include: (1) 70% of land compensation fees; (2) The resettlement subsidy from which the alimony and the subsidy for self job finding are deducted; (3) The interest on the funds and other value-added income; (4) Other funds available for use for the endowment insurance for LEFs; and (5) When the funds from the above 4 sources are insufficient for payment, funds transferred by the government from the income from transfer of rights to use state land. Article 6 Endowment insurance funds for LEFs consist of unified funds and personal account funds. 6,000 yuan/person will be transferred to personal accounts from the raised endowment insurance funds, while the remaining will be transferred to unified funds. Interest shall accrue on the principal of the personal account at the one-year bank interest rate for deposit and withdraw in lump sum for urban residents of the same period. Article 7 The entity applying for land use shall pay insurance funds for LEFs to the special account of endowment insurance funds for LEFs opened by the municipal finance authorities within 90 days after issue of the official reply on land acquisition. If insurance funds for LEFs have not be paid in full, the land and resources authorities shall not go through the land supply formalities.

Chapter 3 Insurance benefit Article 8 Those effecting the endowment insurance for LEFs shall receive an pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. LEFs who have attained or exceeded the stipulated age (55 years for women or 60 years for men) upon land acquisition shall receive pensions for LEFs from the month following the actual time of land acquisition. Article 9 The standard of pensions for LEFs shall be 260 yuan per capita-month, including a basic pension of 210 yuan and a personal account pension of 50 yuan. The basic pension shall be paid from the unified funds, and the personal pension from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. The standard of pensions for LEFs shall be adjusted with the level of the minimum living security for urban residents accordingly. Article 10 Personal account funds can be inherited. If the insured dies before drawing pensions, the inherited amount shall be the principal amount of his/her personal account plus interest; if the insured dies during the period of receiving pensions, the inherited amount shall be balance of the principal of his/her personal account plus interest. Article 11 LEFs are encouraged to effect the basic endowment insurance of urban workers (hereinafter referred to as ―the urban insurance‖). If the insured is already employed, the employer shall go through the insurance formalities for him/her, and the endowment insurance premium shall be paid by the employer and the insured jointly.

For those effecting the urban insurance as freelancers, the government shall grant a social insurance subsidy of 100 yuan per capita-month for not more than 15 years. The subsidy amount shall be first paid from the personal account of endowment insurance funds for LEFs, and any deficiency shall be paid form the unified funds. Article 12 If a farmer affected by land acquisition effecting the urban insurance has made payment for 15 years or more at his/her retiring age, he/she shall be entitled to urban insurance benefits as stipulated other than pensions for LEFs. In this case, if there is any balance in the personal account of endowment insurance funds for LEFs, such balance shall be paid to the insured at a time. If a farmer affected by land acquisition effecting the urban insurance has made payment for less than 15 years at his/her retiring age, he/she shall be entitled to pensions for LEFs after refunding the social insurance subsidy already received.

Chapter 4 Guarantee for LEFs before the implementation of these Measures Article 13 LEFs from January 1, 2004 to the effective date of these Measures are subjects of guarantee identified in the Interim Measures of Hefei Municipality on the Acquisition of Collectively Owned Land (HMG [2003] No.138) and the Notice on Relaying the Implementation Measures of Hefei Municipality for the Basic Living Guarantee of LEFs in the Urban Area (HMG Ban [2004] No.11); the raised guarantee funds shall be paid by each district (development zone) to the special account of the municipal finance for the endowment insurance funds for LEFs at the standard of 18,000 yuan/person (the list of relevant persons shall be provided along) from which the guarantee expenses already paid to those entitled to this guarantee have been deducted at the standard stipulated in Document HMG Ban [2004] No.11. Personal accounts already established at the standard of 6,000 yuan/person (if no personal account has been established, it shall be established at 6,000 yuan/person, and the personal account balance of those entitled to this guarantee shall be 6,000 yuan – 50 yuan × number of months of receipt) shall be managed in accordance with the provisions in Paragraph 2 of Article 6 and Chapter 3 above. The standard of guarantee benefits shall be adjusted from 100 yuan per capita-month to 260 yuan per capita-month from May 2008. LEFs eligible for the urban insurance may effect the urban insurance in accordance with Articles 11 and 12 above, and be entitled to the corresponding subsidies and insurance benefits. Article 14 For LEFs approved for land acquisition from October 8, 1988 to December 31, 2003, and identified in accordance with the prevailing policy then (excluding those having been resettled for employment or effected the urban insurance), subjects of insurance shall be identified in accordance with Article 3 above. Those having attained the age of receiving insurance benefits shall be granted insurance benefits at 260 yuan per capita-month from May 2008, and the funds needed shall be raised at the ratio of 3:1 by the municipal and district governments. LEFs eligible for the urban insurance may effect the urban insurance in accordance with Articles 11 and 12 above, and be entitled to the corresponding subsidies and insurance benefits.

Chapter 5 Legal liabilities Article 15 No entity or individual shall report or receive basic pensions for LEFs falsely; if this provision is violated, not only the corresponding amount shall be recovered pursuant to law, but also such entity or individual shall be held legally liable. Article 16 If any civil servant neglects his/her duties, abuses his/her authorities or commits malpractice in the compensation for land acquisition and the endowment insurance for LEFs, he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law.

Chapter 6 Supplementary provisions Article 17 The staff and working funds required for the endowment insurance for LEFs shall be secured by the government of the same level. Article 18 The Feidong, Feixi and Changfeng County Governments shall comply with these Measures, and otherwise formulate their insurance standards and submit them to the municipal Government for reference. Article 19 These Procedures come into effect from May 1, 2008, and remain effective for 5 years. The Notice of the General Office of the Hefei Municipal Government on Relaying the Implementation Measures of Hefei Municipality for the Basic Living Guarantee of LEFs in the Urban Area (HMG Ban [2004] No.11), and the Notice on Relaying the Implementation Rules for LEFs Effecting the Basic Endowment Insurance of Urban Workers (HMG Ban [2004] No.10) shall be abolished thereupon.

General Office of the Hefei Municipal Government March 28, 2008

Appendix 8: Detailed Resettlement Budget

River interception and Ecological wetland River management Subtotal Compensati wastewater treatment rehabilitation No. Item Unit on rate Amount Amount Amount Amount (yuan/unit) Qty. (10,000 Qty. (10,000 Qty. (10,000 Qty. (10,000 yuan) yuan) yuan) yuan) Compensation fees for 1 collective land mu 52900 30.0 158.700 30.0 158.700 acquisition 1.1 Land compensation fees mu 21160.0 30.0 63.5 0.0 0.0 0.0 0.0 30.0 63.5 1.2 Resettlement subsidies mu 31740.0 30.0 95.2 0.0 0.0 0.0 0.0 30.0 95.2 1.3 Young crop compensation mu 1100.0 30.0 3.3 0.0 0.0 0.0 0.0 30.0 3.3 fees 2 Temporary land mu 0.0 0.0 0.0 0.0 occupation Temporary land 2.1 mu 0.0 157.0 0.0 0.0 0.0 0.0 0.0 157.0 0.0 occupation for silt dump Infrastructure and 3 4.502 4.502 attachments 3.1 Telegraph poles / 30.0 8.0 0.0 0.0 0.0 0.0 0.0 8.0 0.0 3.2 Telephone poles / 30.0 6.0 0.0 0.0 0.0 0.0 0.0 6.0 0.0 3.3 Water resources facilities m2 20.0 1000.0 2.0 0.0 0.0 0.0 0.0 1000.0 2.0 3.4 Scattered trees / 50.0 300.0 1.5 0.0 0.0 0.0 0.0 300.0 1.5 3.5 Tombs / 200.0 33.0 0.7 0.0 0.0 0.0 0.0 33.0 0.7 3.6 Water wells / 3000.0 1.0 0.3 0.0 0.0 0.0 0.0 1.0 0.3 Subtotal of 1-3 158.7 158.7 Survey and design 158.7 4 costs 0,000 yuan 3.0% 4.8 158.7 4.8

10.3 Farmland occupation tax mu 15000 30.0 45.0 0.0 0.0 0.0 0.0 30.0 45.0 Land acquisition 10.4 management costs 0,000 yuan 4.0% 158.7 6.3 0.0 0.0 0.0 0.0 158.7 6.3 Support fund for 11 vulnerable groups 0,000 yuan 1.0% 158.7 1.6 0.0 0.0 0.0 0.0 158.7 1.6 Subtotal of 4-11 170.7 170.7 Total 329.4 329.4

Appendix 9: Resettlement Information Booklet

ADB-financed Anhui Chao Lake Environmental Rehabilitation Project

Resettlement information Booklet of Hefei City Binhu New District Beilaowei Environment Improvement Project

Hefei·China

May, 2012

A. Brief Introduction of Project In order to prevent the further deterioration of the water quality of Chao Lake, and meet the needs for public health and sustainable economic development, the Asian Development Bank (ADB) plans to grant a loan of US$250 million to the PRC for the Anhui Chao Lake Environmental Rehabilitation Project, and the Subproject is one of its subprojects. The gross investment in the Subproject is 454,197,400 yuan, in which the investment in the Beilaowei WWTP and associated sewer works is 264,289,500 yuan, that in river drediging and ecological bank protection 170,763,900 yuan, and that in wetland rehabilitation 19,144,000 yuan. Construction funds will be raised by ADB and the subproject owner. The estimated resettlement costs of the Subproject are 3.294 million yuan, accounting for 0.73% of the Subproject’s budget, all from domestic counterpart funds. The construction period of the Subproject is two years, from 2013 to 2014. B. Summary of Resettlement Impacts of the Subproject In the Subproject, the WWTP will involve land acquisiotn, affecting 3 village groups of Nanhe Village. 30 mu of collective land will be acquired, including 29.2 mu of irrigated land (97.3%) and 0.8 mu of woodland (2.7%), affecting 19 households with 75 persons. 157 mu of land will be occupied temporarily, all being wasteland or waste pond, and no farmland will be affected. The period of occupation will be two years. In addition, the Subproject will affect some ground attachments, such as tombs, trees and telegraph poles. C. Legal Framework and Policies C.1 Basic Polices The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of ADB and the PRC, including: 1) ADB policies  Safeguard Policy Statement (SPS), June 2009 2) Laws, regulations and policies of the PRC  Land Administration Law of the PRC (January 1, 1999, amended on August 28, 2004)  Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources, effective from January 1, 2002)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (November 3, 2004)  Measures for the Administration of the Preliminary Examination of the Land Used for Construction Projects (Decree No.27 of the Ministry of Land Resources, effective from December 1, 2004)  Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) (April 10, 2006)  Notice of the State Council on Issues Concerning the Strengthening of Land Control and Adjustment (SC [2006] No.31) (August 31, 2006) 3) Provincial and local policies  Notice of the Anhui Provincial Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Guidelines of the Anhui Provincial Government on Doing Well in Employment and Social Security for Land-expropriated Farmers (APG [2005] No.63)

 Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC (Amended) (July 1, 2004)  Measures of Anhui Province for the Arbitration of Disputes over Compensation for Land Acquisition (APGO [2004] No.101) (January 1, 2005)  Notice of the Anhui Provincial Government on Publishing the Compensation Rates for Land Acquisition of Anhui Province (APG [2009] No.132) (December 31, 2009)  Notice of the General Office of the Anhui Provincial Government on Forwarding the Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (APGO [2006] No.38) (May 30, 2006)  Notice of the General Office of the Anhui Provincial Government on Issuing the Measures for the Administration of Compensation Reserves for Land Acquisition of Anhui Province (APGO [2010] No.22) (May 4, 2010)  Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136) (June 30, 2008)  Notice of the General Office of the Hefei Municipal Government on Issuing the Measures of Hefei Municipality for the Endowment Insurance for Land-expropriated Farmers (HMG [2008] No.1) (March 28, 2008)  Some Provisions of Hefei Municipality on the Acquisition of Collectively-owned Land and the Endowment Insurance for Land-expropriated Farmers (HMLR [2008] No.85) (May 1, 2008) C.2 Fixation of Compensation Rates for Resettlement Impacts of the Subproject  Acquisition of Collective Land According to the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, and the Measures of Hefei Municipality for the Acquisition of Collectively-owned Land (Decree [2008] No.136), the compensation rates for land acquisition of the Subproject are shown in Table 1. The compensation rate for housing land is the same as that for farmland. Specific rates will be subject to adjustment with provincial policies, and such adjustments will be incorporated into the updated RP. Table 1 Compensation Multiples and Rates for Acquired Collective Land Compensation rates for land acquisition (yuan/mu) Where Young crop Region Area Integrated Land Resettleme compensati Subtotal rate compensati nt subsidy on on Area IV of Binhu New Hefei District 52900 21160 31740 1100 54000 Municipality (Yandun Sub -district)

 Compensation for Temporary Land Occupation The land occupied temporarily for the Subproject is wasteland or waste pond, on which no crop can be grown. No compensation will be paid through consultation with the village collective.  Compensation for Attachments and Infrastructure The compensation rates for attachments and infrastructure have been fixed at replacement cost. See Table 2.

Table 2 Compensation Rates for Attachments and Infrastructure Compensation rate Item Proprietor Unit (yuan) Telegraph poles Power supply bureau / 30.0 Telephone poles Telecom office / 30.0 Water resources Water resources 2 m 20.0 facilities bureau Group 10 of Nanhe Scattered trees / 50.0 Village Groups 10 and 11 of Tombs / 200.0 Nanhe Village Villagers of Nanhe Water wells / 3000.0 Village  The entitlement matrix The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 3. Table 3 Entitlement Matrix Type of Degree of Compensation and resettlement APs Measures impact impact policy 30 mu of 19 1) Receiving compensation fees for Measures for land collective households land acquisition, including land compensation land with 75 compensation fees and resettlement allocation, land persons in 3 subsidies, reallocation and groups of 2) receiving employment and production Nanhe training opportunities under the investment Village, Subproject; (cultivation and Yandun 3) Compensation fees for ground irrigation skills, Sub-district attachments and young crops will be tertiary industries, including 5 paid to their proprietors. etc.) will be households 4) For APs with a cultivated land less determined by the Permanent with 23 than 0.3 mu per capita, they could village meeting. land persons with choose endowment insurance Training will be acquisition a per capita voluntarily. approved and cultivated supervised by the area of less government at the than 0.3 mu next higher level. Seriously 12 They will have priority in getting To be arranged by affected households employed during at the construction the Baohe District househol with 48 and operating stages, and attending Government or the ds with a persons in agricultural and nonagricultural skills labor and social land loss Nanhe training. security office of rate of Village, Yandun over 30% Yandun Sub-district Sub-district Endowme 5 households The land acquisition compensation nt with 23 will be distributed as follows: 1) 70% Insurance persons of land compensation fees will be system used for the endowment insurance for LEFs, and transferred to the special financial account of the endowment insurance fund for LEFs; 2) Resettlement subsidies will be used to pay support and

Type of Degree of Compensation and resettlement APs Measures impact impact policy self-employment subsidies, amounting to 12,000 yuan per capita, and the remainder will be transferred to the special financial account of the endowment insurance fund for LEFs

APs shall receive a pension for LEFs of the following month of attaining the age of 55 years for women or 60 years for men. The standard of pensions for LEFs shall be 260 yuan per capita-month, including a basic pension of 210 yuan and a personal account pension of 50 yuan. 157 mu in No impact No compensation Temporary land total, occupation will be Temporary being notified in advance land wasteland supervised by the occupation or waste local land and pond resources bureaus. / 36 females, (1) Women will have priority in The women’s of which employment, and at least 12（30%） federation will 19_are of them will receive unskilled jobs; provide acceptable working age (2) Women will have priority in education to women and receiving agricultural and women. 10 are nonagricultural skills training; 400 retired,7 men-times of training will be aged 0-17. provided under the Subproject, in Women which not less than 150 person-times (50%) will be available to women; (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; (4) Land-expropriated women may apply for small-grant secured loans. Low-inco 2 households (1) Laborers in vulnerable Vulnerable me with 3 households will be provided with households will people persons occupational training, and be re-identified at the beginning of (below employment information and resettlement the guidance in order to increase their Vulnerable implementation, national job opportunities; (2) During project groups and monitored poverty construction, laborers in vulnerable closely until the line) households will have priority in being completion of employed for unskilled jobs; (3) A assistance special support fund of 1% of measures. resettlement costs will be

Type of Degree of Compensation and resettlement APs Measures impact impact policy established in cooperation with the labor and social security department of Baohe District to provide assistance. 5 types, Proprietors 1) Affected special facilities will be including restored by proprietors after telegraph receiving compensation from the poles and owner of the Subproject, or Infrastructure trees reconstructed by the owner and ground according to the original size, attachments standard and function; 2) Compensation fees will be calculated and disbursed for ground attachments as stipulated. / All APs Free; all costs so reasonably Grievances incurred will be disbursed from the and appeals contingencies

D. Resettlement Organization In order to ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. The agencies responsible for resettlement in the Subproject mainly include:  Chao Lake Management Authority  ADB-financed Project Working Group of the Hefei Municipal Government  Office of the ADB-financed Project Working Group of the Hefei Municipal Government (Hefei PMO)  BNDCI  Land and Resources Branch of Baohe District  Yandun Sub-district Office  Affected village and groups  Design agency  External M&E agency E. Grievances and Appeals Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows: Stage 1: If any right of any AP is infringed on in any aspect of land acquisition or resettlement, he/she can report this to the village committee. The village committee or the AP may resort to the township government to solve the issue. The township government shall record such appeal and solve it together with the village committee or the AP within 2 weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to BNDCI within one month after receiving such disposition, which shall make a disposition within 3 weeks. Stage 3: If the appellant is dissatisfied with the disposition of Stage 2, he/she may

file an appeal to the Hefei PMO within one month after receiving such disposition, which shall make a disposition within 4 weeks. Stage 4: If the appellant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to competent administrative authorities level by level in accordance with the Administrative Procedure Law of the PRC for arbitration after receiving such disposition. Stage 5: If the grievant person is still dissatisfied with the arbitration award of Stage 4, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC after receiving the arbitration award. The resettlement agencies have appointed persons to collect and accept grievances and appeals of the APs. See Table 4. Table 4 Appeal Accepting Agencies and Staff Resettlement office Contact Tel Hefei Binhu New District Construction & Jia Chaoling 0551-8233026 Investment Co., Ltd. Land and Resources Branch of Baohe District Li Bo 0551-8846242 Offices of letters and calls of Baohe Xia Jiahai 0551-8852415 District

APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism① AP also could appeal the complaints to civil courts at any stage of the LAR process directly if he or she does not want to proceed through the project GRM. All grievances and complaints (oral or written) will be reported to the ADB in internal and external monitoring report.

F. Schedule of Resettlement Implementation The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, land acquisition, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 5.

① For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

Table 5 Schedule of Resettlement Activities No. Task Target Agencies responsible Time Remarks 1 Information disclosure 1.1 RIB 3 groups of 1 village Hefei PMO and BNDCI April. 2012 1.2 Disclosure of the RP on ADB’s website CLMA and ADB June 2012 2 RP and budget Approval of RP and budget (including compensation 2.1 Government June 2012 rates) 2.2 Village-level income restoration programs 3 groups of 2 villages Village committees August. 2012 2.3 Finalizing of the RP based on the detailed design / BNCDI and Hefei PMO October. 2012 3 DMS 3.1 DMS on the 3 affected village groups 3 groups of 1 village BNDCI August. 2012 4 Compensation agreement 4.1 Village-level land compensation agreement 3 groups of 1 village Land and resources bureau Dec. 2012 5 Implementation of livelihood restoration measures 5.1 Distribution of land compensation fees to households 3 groups of 1 village Sub-district office Jan. – Mar 2013 Implementation of village-level income restoration 5.2 3 groups of 1 village Village collective Jan. – Dec. 2013 programs Sub-district office, village 5.3 Advice on income restoration, commerce and work 19 AHs collective, and labor and social August 2012.-Jan 2013 security bureau October 2012 – Dec. 5.4 Implementation of training program for APs 3 groups of 1 village Labor and social security bureau 2013 Confirming vulnerable households and 5.5 2 AHs Civil affairs bureau and PMO March 2013 implementing assistance measures PMO, labor and social security 5.6 Hiring APs at the construction stage 50 APs April 2013~Dec 2014 bureau, and contractor 6 Capacity building Training of staff of BNDCI, and the land and 6.1 6 persons ADB/PPTA consultant Feb. – Jun. 2012 resources bureau 6.2 Training of county, township and village officials 20 persons PMO, and land and resources April. – September. 2012

No. Task Target Agencies responsible Time Remarks bureau 7 M&E 7.1 Baseline survey As per the RP External M&E agency November. 2012 7.2 Establishment of internal M&E mechanism As per the RP BNCDI, Hefei PMO and CLMA July. 30, 2012 7.3 Appointing an external M&E agency One CLMA October. 2012 7.4 Internal monitoring reporting semiannual report BNCDI, Hefei PMO and CLMA From Aug. 2012 Jan. 2013 No.1 report External monitoring reporting Semiannual report External M&E agency 7.5 July. 2013 No.2 report Jan. 2014 No.1 report 7.6 External evaluation reporting Annual report External M&E agency Jan. 2015 No.2 report Post evaluation agency and 7.7 Post-evaluation report One report Jul. 2015 CLMA 8 Public consultation and documentation BNCDI Ongoing 9 Grievance redress and documentation NNCDI Ongoing 10 Disbursement of compensation fees October ~November. 10.1 Disbursement to implementing agency Initial funds 2012 10.2 Disbursement to villages Most funds BNCDI December. 2012 10.3 Disbursement to households Most funds BNCDI and village committees Mar. 2013 11 Commencement of civil construction 11.1 The Subproject BNDCI and the Contractor April. 2013