Hunan Xiangjiang Inland Waterway Project

Resettlement Plan

October 2012

People’s Republic of China: Hunan Xiangjiang Inland Waterway Project

Prepared by Xiangjiang Navigation Construction and Development Co. Hunan, PRC for the Asian Development Bank.

The People's Republic of China

Hunan Xiangjiang Inland Waterway Project

Tugutang Navigation and Hydropower Complex

Resettlement Plan

(Final)

Xiangjiang Navigation Construction and Development Co.

Hunan, PRC

August 2012

TABLE OF CONTENTS A. EXECUTIVE SUMMARY ______1 B. PROJECT DESCRIPTION ______4 B1 Project Background and Description ______4 B2 Project Impacts ______5 B3 Measures to Reduce Resettlement ______8 B4 Socio-Economic Benefits ______10 C. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ______11 C1 Permanent Land Requirement______11 C2 Temporary Land Occupation ______12 C3 Building and Structure Removal ______13 C4 Public Facilities ______15 C5 The Affected People ______17 C6 Income Loss Analysis ______18 C7 Summary of Impacts ______19 D. SOCIOECONOMIC CHARACTERISTICS ______21 D1 Project Influence Area ______21 D2 Basic Situation of the Affected City/County ______21 D3 Socioeconomic Survey ______22 D4 Socioeconomic Characteristics of the Affected Population ______23 D5 Vulnerable Groups ______33 D6 Gender Aspects ______36 E. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ______38 E1 Methods of Public Consultation and Participation ______38 E2 Consultation during RP Preparation ______38 E3 Public Participation and Consultation during RP Implementation ______41 E4 Information Disclosure ______42 F. GRIEVANCE REDRESS MECHANISMS ______44 F1 Introduction ______44 F2 Current Practice ______44 F3 Proposed Grievance Redress System ______45 F4 Responsibilities of PCC ______47 G. LEGAL FRAMEWORK AND RESETTLEMENT POLICY ______48 G1 Legal Framework ______48 G2 Project Resettlement Policy ______51 G3 Resettlement Standards ______52 H. ENTITLEMENTS, ASSISTANCE AND BENEFITS ______60 H1 Cut-off Date for Eligibility to Project Entitlements ______60 H2 Assistance policy from the Project ______60 H3 Benefits ______61 I. RELOCATION OF HOUSING AND SETTLEMENTS ______66 I1 Resettlement Needs ______66 I2 Resettlement Strategy ______66 I3 Relocation and Resettlement of Private Houses ______66 I4 Relocation and Resettlement for Small Hydropower Plants ______67 I5 Reconstruction of Public Infrastructure ______68 J. INCOME RESTORATION AND REHABILITATION ______69 J1 Context ______69 J2 Analysis of Livelihood Restoration Options ______69

J3 Formulation of Income Restoration Strategy ______69 J4 Income Restoration ______70 J5 Gender Issues ______73 J6 Vulnerable Households ______73 K. RESETTLEMENT COST AND FINANCING PLAN ______75 K1 Basic Costs ______75 K2 Taxes and Fees ______81 K3 Contingency ______82 K4 Other Costs ______83 K5 Overall Resettlement Cost ______83 K6 Flow of Funds and Compensation Options ______84 L. INSTITUTIONAL ARRANGEMENT ______87 L1 Resettlement Organization ______87 L2 Accountability ______87 L3 Staffing and Capacity Building ______90 M. IMPLEMENTATION SCHEDULE ______92 M1 Principles of Resettlement Implementation ______92 M2 Implementation Schedule of Resettlement ______92 N. MONITORING AND REPORTING ______94 N1 Internal Monitoring ______94 N2 External Monitoring and Evaluation ______94

LIST OF TABLES Table 1: Summary of Project Components ...... 5 Table 2: Comparison of Major Alternative Dam Site ...... 8 Table 3: Comparison of Land Requirement of Upstream Dam Site ...... 10 Table 4: Summary of Permanent land required for dam and ship lock ...... 11 Table 5: Summary of Permanent land required for Ports ...... 11 Table 6: Summary of Permanent land required for Reservoir Impoundment ...... 12 Table 7: Summary of Temporary Land Occupation ...... 12 Table 8: Summary of House Removal in Damsite and Ship-lock Area ...... 13 Table 9:Summary of House Removal in the Ports ...... 13 Table 10: Summary of House Removal in the Reservoir Area ...... 14 Table 11: Summary of Attachments to Removed Houses ...... 14 Table 12: List of Affected Public Facilities ...... 16 Table 13: Summary of Major Adverse Impacts of the Project ...... 19 Table 14: Socioeconomic Status of the Counties in the Project Area ...... 21 Table 15: Selected Demographic Characteristics ...... 24 Table 16: Natural Resources ...... 26 Table 17: Physical Resources...... 27 Table 18: Distribution of Annual Net Income per Capita ...... 27 Table 19: Relative Importance of Income Sources in Surveyed Villages ...... 29 Table 20: Income Sources and Per Capita Net Income of Households ...... 30 Table 21: Per Capita Expenditure of Sampled Households ...... 30 Table 22: Perceived Disadvantages and Concerns of the Project ...... 31 Table 23: Anticipated Impacts of Project on Village—Village Survey ...... 31 Table 24: Sampled AP Preferences for Mitigation Measures ...... 32 Table 25: Poverty Population in Project Affected Area ...... 33 Table 26: Rural Poor in Surveyed villages ...... 34 Table 27: Stakeholder Participation and Consultation Record ...... 39 Table 28: Public Participation and Consultation Plan ...... 41 Table 29: Public Complaints Database ...... 46 Table 30: Resettlement Principles – Summary ...... 52 Table 31: Compensation Standards of Land Acquisition in Hunan Province ...... 53 Table 32: Calculated AAOV of Paddy Land in Hengnan and Leiyang (CNY) ...... 53 Table 33: Compensation Standards for Land (CNY/Mu) ...... 54 Table 34: Calculation of the Restoration Cost of Temporary Occupied Land ...... 55 Table 35: Calculation of Replacement Cost for Private House (100 m2) ...... 56 Table 36: Compensation Standards for Standing Crops (CNY/mu) ...... 58 Table 37: Entitlement Matrix ...... 63 Table 38: Compensation Cost of Permanent Land Acquisition ...... 75 Table 39 Compensation for Temporary Land Occupation ...... 77 Table 40 Compensation Cost for Rural Residential Houses ...... 78 Table 41: Removal Subsidy for Rural Residential Houses ...... 78 Table 42: Compensation for House Facilities and Attached Trees ...... 79 Table 43: Cost of Agriculture and Small Irrigation Facilities ...... 80 Table 44: Restoration Cost of Public Facilities and Infrastructure ...... 81 Table 45: Taxes and Fees to be Paid by the Project ...... 82 Table 46: List of Other Cost Items ...... 83 Table 47: Overall Resettlement Cost Estimation ...... 83 Table 48: Staffing for Implementing the Resettlement Plan ...... 90 Table 49: Schedule for Resettlement Implementation Training ...... 91 Table 50: Resettlement Implementation Schedule ...... 92

LIST OF FIGURES Fig 1: Location map of Tugutang Navigation & Hydropower Project ...... 7 Fig 2: Income Distribution of Surveyed Households (CNY per capita)...... 28 Fig 3: Current Practice of Grievance Redress for the Project ...... 45 Fig 4: Concept of Grievance Redress Mechanism for the Project ...... 47 Fig 5: Flow of Funds for Compensation ...... 86 Fig 6: Project Resettlement Organization Chart ...... 88

LIST OF ANNEXES Annex 1: Farmland Impact Analysis of Affected Villages ...... 96 Annex 2：Farmland Impact of Seriously Affected Sub-villages ...... 100 Annex 3: Names of Government Participants in PPTA ...... 104 Annex 4:Resettlement Information Booklet ...... 106 Annex 7: Summary of Farmland Protection Program ...... 118 Annex 8: Approval of Domestic RP by HNRB ...... 121

ABBREVIATIONS

ADB – Asian Development Bank AAOV – average annual output value AP – affected persons, equivalent to DP as defined by ADB CRO – County/City Resettlement Office DMS – detailed measurement survey DPs – displaced persons EA – executing agency FS – Feasibility Study HHDI – Hunan Hydropower Design Institute HMG – Hengyang Municipal Government HYRB – Hengyang Municipal Resettlement Bureau HPRB – Hunan Provincial Resettlement Bureau HPDOT – Hunan Provincial Department of Transport HPG – Hunan Provincial Government HPTDI – Hunan Provincial Transportation Design Institute IA – implementing agency LAR – land Acquisition and resettlement M&E – Monitoring and Evaluation MOT – Ministry of Transport NSWL – normal storage water level PPTA – project preparatory technical assistance RP – resettlement plan TOR – terms of reference TRO – Township Resettlement Office XNCD – Hunan Xiangjiang Navigation Construction and Development Company

CNY – Chinese Currency, Yuan: US$1.00 = CNY6.65 Mu – area of land – 1 hectare = 15 mu

A. EXECUTIVE SUMMARY

1. The proposed Tugutang Navigation and Hydropower complex is located in Yunji Town of Hengnan County, 39 km upstream of Hengyang City, which belongs to midstream reach of Xiangjiang River. The major components of the project consist of (a) multi-purpose dam of concrete in Class II; (b) power generation plant with a designed capacity of 80 MW, including a 2.9 km 110 Kv transmission line to connect the plant with the regional power grid; (c) two ports with designed annual throughput of goods of 220,000 tons and 175,000 tons, respectively; and (d) protection works in the reservoir area, including reinforcement of an aggregate of 30.3 km of the banks of tributary rivers. Hunan Xiangjiang Navigation Construction and Development Co. (XNCD) under the Hunan Provincial Department of Transportation (HPDOT) is the implementation agency for the project. The project will commence in December 2012 and will be completed in December 2016.

2. The project impacts include permanent land acquisition, temporary land occupation, and house demolition. There will be both physical and economic displacement. The detailed measurement survey (DMS) conducted during March-July 2011 show that land acquisition and house demolition will affect 314 sub-villages in 78 villages of 13 township/towns in 3 counties (city). Permanent acquisition of land is estimated to be 5,875.93mu (391.73 ha). This includes land acquisition for: (i) dam, 814.15 mu (54.27 ha); (ii) transmission line, 0.5 mu; (iii) ports, 48.93 mu (3.26 ha); and (iv) reservoir inundation and protection works, 5,011.69mu (334.06 ha). Temporary occupation of land during the construction of the dam and ship lock is estimated to be 386.33 mu (25.75 ha), and 1,230.9 mu (82.1ha) for farmland protection works. A total of 63 households (290 persons), including 19 households (78 persons) in the dam and ship lock area and 14 households (12 persons) in the location of the ports, and 40 households (200persons) in the reservoir area, will lose entire houses and must relocate. It is estimated that 38,678 persons are directly affected by land acquisition and house demolition. 1,230.9

3. In order to avoid or minimize land acquisition, close consultation on site selection for the dam and the port and on the reservoir inundation area have been carried out with local villages, groups and affected people during the feasibility study. Further study and consultation with stakeholders are needed in connection with the proposed protection works to be carried out in the reservoir area. In addition to reinforcing about 30.3 km of the banks of tributary rivers, project authorities have decided to protect low-lying farmland by filling subsoil to raise the elevation of 5,195.98mu (346.4ha) farmand, of which, 4,816,44 mu (321.1ha) of paddy land and 21.56 mu (1.44ha) of dry farmland, in 75 locations in the reservoir to a height of 0.5 m above the designed farmland flooding line.

4. This RP is governed by ADB’s Safeguard Policy Statement (June 2009) and national and local laws and regulations of the People’s Republic of China. The key national laws and regulations are: Land Administration Law of the People’s

Republic of China (2004), and State Council Order No. 471(2006) on “Land Acquisition and Resettlement Provisions for Large and Medium Scale Hydropower Project Construction”. Key Hunan provincial regulations are: (a) HGD No 43 (2009) Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province by Hunan Provincial Government (HPG), and (b) HGD No 9 (2010): Notice of Reinforce on Resettlement of Large and Medium Reservoir in Hunan Province.

5. Following consultation with the local government and affected persons (APs), the compensation standards will be adopted: (i) for paddy land of Class I 35,569CNY/mu in Hengnan county, 34,380CNY/mu in Changning city, and 38,709CNY/mu in Leiyang city, (ii) for paddy land of Class II 30,910CNY/mu in Hengnan county, 30,030CNY/mu in Changning city, and 34,188CNY/mu in Leiyang city, (iii) for paddy land of Class III CNY28,549/mu in Hengnan county, CNY26,873/mu in Changning city, and CNY29,887/mu in Leiyang city, (iv) for paddy land of Class IV 26,516CNY/mu in Hengnan county, 23,843 CNY/mu Changning city and 27,324 CNY/mu in Leiyang city, and (v) for paddy land of Class V 24,842CNY/mu in Hengnan county and 24,245CNY/mu in Leiyang city . Other land will be compensated by related coefficient with paddy land. Compensation standards for house demolition are set forth at CNY709/m2 for steel/concrete house, CNY661/m2 for brick/concrete house, CNY581/m2 for brick/wood house, and 529CNY/m2 for wood house. In addition, APs will also get compensation for affected facilities, and will be provided moving transport subsidies, resettlement insurance, etc. All values are equivalent to the market replacement value. The project will likewise set aside post-assistance funds to assist APs affected by productive assets at the rate of CNY600/year per person for a period of 20 years.

6. Income restoration measures for the APs include cash compensation, land redistribution, priority in getting jobs during the project construction, etc. During consultations held with the APs, they voiced their preference for cash compensation. Land redistribution will be carried out with guidance from the local government. A special fund of CNY 3.05 million for vulnerable APs, as well as priority in job recruitment, is provided in the RP to implement activities for income restoration.

7. House removal in the project totals 63 households with an area of 18,372 sq.m.. The APs, prefer to construct replacement houses by themselves within their present village with the assistance from the neighbors and relatives; this preference was confirmed during follow up consultation.

8. Since July 2009, a series of socio-economic surveys and public consultations have been carried out by the XNCD, the design institute and the PPTA consultants. Specific consultations were organized with affected households, heads of village collective and women members of the affected households and target communities. In order to process unexpected issues and ensure smooth resettlement implementation, a Public Complaints Centre (PCC), complementing the current system of grievance readdress mechanism, has been established in

the site office to accelerate the process of complaint response. The draft RP has been disclosed in June 2012, to relevant local officials down to the township level, which will be available to affected households. In addition, Resettlement Information Booklet (RIB) has been distributed to all affected sub-villages and affected households in May 2012. Once the updated RP is approved, it will be disclosed to the relevant local government.

9. The total cost of resettlement for the project is estimated at CNY512.72 million, approximately accounting for 18% of the total project costs.

10. Being consistent with the overall project construction schedule and the target of commencing construction activities in Decemberber 2012, land acquisition and resettlement for dam site will start in October 2012. The implementation of land acquisition and resettlement for the ports and reservoir inundated area will commence in late 2015. All the resettlement activities will be completed by end 2015, when the reservoir is scheduled for water storage.

11. During RP implementation, XNCD will submit to ADB quarterly internal monitoring resettlement progress report, in addition to a semi-annual M&E report by an independent monitor to be hired by XNCD. The independent monitor will submit to ADB, for 2 years following completion of RP implementation, an annual external M&E to ensure livelihoods have been fully restored and are sustainable. After completion of RP implementation, XNCD will submit to ADB a resettlement completion report which will include lessons learned from the project.

12. B. PROJECT DESCRIPTION

B1 Project Background and Description

B1.1 Project Background 13. Xiangjiang River is a first grade tributary of Yangtze River, as well as the largest river in Hunan Province. It is the mother river of Hunan and originates from Haiyang Mountain located in Lingchuan County of Guangxi Province. It flows into Hunan at Douniu Hill of Quanzhou, goes through Pingdao, Yongzhou, Hengyang, Zhuzhou, Xiangtan and Changsha and runs into South Dongting Lake at Haohekou of Xiangyin County, before joining the Yangtze River at Chenglingji. Its main course has a length of 969 km with a catchment area of 94,660 km2 while its main course in Hunan is 773 km long with a catchment area of 85,383 km2, accounting for 40% of the total area of the province.

14. As determined by navigation class and standards defined in the Master Plan of Main Streams on Xiangjiang River in 1986, Xiangjiang River will be developed with nine cascades from upstream to downstream, namely Taizhou, Xiaoxiang Hydropower Station (completed), Wuxi Hydropower Station (completed), Xiangqi Complex (under construction), Jinweizhou complex (under construction), Tugutang complex, Dayuandu Complex (completed), Zhuzhou Complex (completed), and Changsha Complex (under construction). Therefore, the proposed Tugutang Complex is the last one to be developed in middle section of Xiangjiang River. Its completion will extend the high-grade navigation channel by a length of 133 km upstream from Hengyang City, and will play an important role in promoting the social and economic development of the basin area of the upper and middle sections of Xiangjiang River

B1.2 Project Description 15. The proposed complex is located in Yunji Town of Hengnan County, 39 km upstream of Hengyang City, which belongs to the midstream reach of Xiangjiang River (see Figure 1: Project Location Map). The major components of the project are shown in Table 1, namely, (a) multi-purpose dam of concrete in Class II; (b) power generation plant with designed capacity of 80 MW and a 2.9 km 110 Kv transmission line to connect the plant with the regional power grid; (c) two ports with designed throughput of goods of 220,000 tons and 175,000 tons, respectively; and (4) protection works in the reservoir area. The RP covers the section from the proposed complex to Jinweizhou Complex, located 58 km upstream and covering 14 townships in 3 counties/cities. The topography of the project area is characterized by hills with narrow valleys of paddy fields.

16. The Xiangjiang Navigation Construction and Development Co (XNCD) under Hunan Department of Transportation is the implementation agency for the project. The project will commence in December 2012 and will be completed in December 2016.

Table 1: Summary of Project Components Components Brief Description Major Impacts Dam, shiplock and power Multi-purpose concrete class 1 dam, single 1 village in Yunji town and 3 villages in plant shiplock and power generation plant with a Xiangyang town, Hengnan County with design capacity of 80 MW permanent land acquisition of 657.5mu, of which 505.9mu is farmland. Temporary land occupation of 386mu (25.7ha).

Transmission system Construction of 3 transmission towers to 2 villages in Yunji town of Hengnan connect the power plant to the regional grid county with permanent land acquisition about 2.9 km away. of 0.5mu for the transmission towers

Ports Yunji Port to be constructed with designed 2 villages with one in Yunji town in throughput of goods of 220,000 tons Hengnan County and one in Songbei Songbei Port to be constructed with designed town in Changning City with permanent throughput of goods of 175,000 tons land acquisition of 48.9mu(3.3ha)

Reservoir impoundment The Xiangjiang River will be raised from 52.0 The reservoir will inundate 5,011.7mu m to 58.0 m at the dam site, which will create (334.1ha) of land at NSWL which a reservoir in upstream tributaries with an affects 3 counties, 13 townships, 76 aggregate surface area of 5.27 km2. villages, and 296subvillages. 1,496.4mu (99.7ha)of the affected land are farmlands. Protection works 30.3 km-long river bank to be raised, Permanent land of 329.3mu (21.9ha) reinforced and protected in 57 locations. with 153.4mu (10.2ha) of farmland, and About 4,758.6mu (317.2ha)of farmland in 75 1,230.9mu (82.1ha) of temporary land locations to be raised and protected. occupation will be required in Hengnan, Changning and Leiyang Source: Project Feasibility Study and DMS data.

B2 Project Impacts

17. The project impact includes land acquisition and house demolition which will affect 314 sub-villages in 78 villages of 13 township/towns in 3 counties (city).

Permanent acquisition of land is estimated to be 5,875.93mu (391.73 ha). This includes land acquisition for: (i) dam, 814.15 mu (54.27 ha); (ii) transmission line, 0.5 mu; (iii) ports, 48.9mu (3.3 ha); and (iv) reservoir inundation and protection works, 5,011.7mu (334.1 ha). Temporary occupation of land during the construction of the dam and ship lock is estimated to be 386 mu (25.7 ha), and 1,230.9mu (82.1ha) for farmland protection works. A total of 63 households (290 persons), including 19 households (78 persons) in the dam and ship lock area, 4 households (12 persons) in the location of the ports and 40 households (200persons) in the reservoir area, will lose entire houses and must relocate. The DMS data shows that 38,288 persons are directly affected by land acquisition and house demolition. In addition, two small hydropower plants will be flooded with 390 employed staff, of which 9 staff needing to be reemployed. Therefore, a total of 38,678 persons are directly affected by the project.

Fig 1: Location map of Tugutang Navigation & Hydropower Project

B3 Measures to Reduce Resettlement

18. Project preparation took several measures to minimize project impact on land and structures. Some of the major principles that were followed during the selection of the dam site included: (1) avoid densely populated residential areas; (2) avoid or minimize the acquisition of high-quality farmland; (3) make use of national or local roads to the proposed construction sites; and (4) avoid or minimize the acquisition of environmental sensitive places. Consistent with the aforementioned, the Hunan Hydropower Design Institute (DI) undertook strict verification and comparison of the proposed dam sites, reservoir inundation level, and layout of the borrow pit and waste disposal. The details of various concrete measures taken to minimize project impacts are as follows:

B3.1 Determination of Normal Storage Water Level

19. The area of land to be inundated by the Project will be determined by the flooding line which is controlled by the normal storage water level (NSWL) in the river and the operation of the reservoir. Comparison of three NSWLs of 57.5 m, 58 m, and 58.5 m above sea level was done by the DI during the pre-feasibility study. The results (shown in Table 2) indicate that water levels of 58 m to 58.5 m will result in significant increase in land acquisition by as much as 1,399.49u (93.3 ha), of which, 982mu (65.5 ha) are farmlands. On the other hand, and NSWL of 57.5 m to 58 m will require the acquisition of 309.11u (20.6 ha) of farmland. Bearing in mind the need to optimize the complex’s functions for irrigation, navigation and power generation, an NSWL of 58 m has been recommended by the DI.

20. The amount of land to be inundated in the reservoir area will also be affected by the reservoir’s operation. To minimize inundation in the reservoir area, when water inflow into the reservoir is more than the maximum required by the turbine during the flooding (rainy) season, the water level at the dam will be lowered accordingly by opening the sluice gates to maintain natural flooding condition.

B3.2 Selection of Dam Site

21. Other than comparing three NSWLs, two alternative dam sites were studied by the DI during pre-feasibility study stage. As Table 2 shows, the resultant amount of land to be inundated in the proposed upstream dam site is much smaller than that of the downstream dam site. Particularly, farmland to be acquired is less by 1,495 mu (99.7 ha). Therefore, the upstream dam site is recommended for the project.

Table 2: Comparison of Major Alternative Dam Site Downstream Difference Item Unit Upstream Dam Site Dam Site (Up-Down) 57.5 m 58 m 58.5 m 58 m 58 m

Downstream Difference Item Unit Upstream Dam Site Dam Site (Up-Down) Total 7147.71 7730.43 9129.92 9949.08 -2218.65 farmland 3853.18 4162.29 5143.71 5657.06 -1494.77 1.paddy field mu 3770.31 4071.56 5016.28 5514.4 -1442.84 2.dry land mu 82.87 90.73 127.43 142.66 -51.93 pond mu 280.76 288 343.55 404.42 -116.42 woodland 404.26 442.59 484.32 546.33 -103.74 River beach land mu 17 17 17 17 0 Barren land mu 2552.74 2780.78 3101.57 3284.5 -503.72 Transport land mu 39.77 39.77 39.77 39.77 0 House Removal m2 831.66 831.66 0 Source: Pre-FSR

B3.3 Farmland protection program1

22. In order to further reduce the project impact, engineering measures will be taken in the reservoir area of tributaries to protect the farmland, particularly paddy land to be inundated by the reservoir. Based on the geological survey data, bank failure might occur on the sections with a length of 47.2 km. The first stage of protection is designed on a 30.3 km-long section where residential houses and farmland are located. Another 16.9 km-long section will be further investigated by Project engineers and appropriate measures will be carried out, if warranted, following the construction of the dam. The possible failure bank will be fortified with a concrete wall and raised by 0.3 m above the designed flooding line.

23. Protection of farmland by filling subsoil and raising farmland will be carried out in low-lying areas in the reservoir area of tributaries to reduce permanent farmland loss as a result of the inundation of the reservoir. The top soil on the farmland to be raised will be peeled and stockpiled in temporarily occupied land. The subsoil will be from the nearby hills of temporarily occupied land. During the stage of pre- feasibility study, 45 locations of farmland, totaling 3256.1u (217.1 ha), have been selected to be protected by raising 0.5 m above the designed farmland flooding line. During the stage of feasibility study, 75 locations of farmland(Annex 6), totaling 5,195.98mu (346.4ha) farmand, of which, 4,816,44 mu (321.1ha) of paddy land and 21.56 mu (1.44ha) of dry farmland, have been selected to be protected. As a consequence thereof, most of the land and resultant economic losses of the APs will be mitigated.

1 The practice in Zhuzhou complex raised 5,860mu farmland with an investment of CNY248million. The total inundated area was about 21,000mu before farmland protection. Besides the farmland protection by the uplifting and filling with sub-soil, about 5,000mu farmland was protected by building dyke installed with pumping and the area of 5,510mu farmland was protected by newly-built water channel. The inundated area is reduced to 5,609mu after protection works. The proposed farmland protection program will be practical after consulted with the locals.

24. After the completion of the farmland protection program, 3,320.6u (221.4 ha) of farmland will be protected in 17 of 19 seriously affected villages (i.e., affected by farmland loss of more than 10%). Details of the farmland protection program are indicated in Figure 1: Location map of the Project and shown in Annex 7.

Table 3: Comparison of Land Requirement of Upstream Dam Site Before and After Protection Before After Item Unit Difference (Before-After) Protection Protection Total 7730.4 4478.1 3252.4 farmland 4162.3 906.2 3256.1 1.paddy field mu 4071.5 836.5 3235.0 2.dry land mu 90.7 69.7 21.0 pond mu 288 253.8 34.2 woodland 442.6 442.6 0 River beach land mu 17 17 0 Barren land mu 2780.8 2818.8 -38 Transport land mu 39.8 39.8 0 Source: Pre-FSR

B4 Socio-Economic Benefits

25. The Project is expected to have the following socio-economic benefits: (a) providing a new link between the hinterland of southern Hunan with the Yangzte basin and the major hubs of Wuhan and Shanghai; (b) reducing transportation cost of bulks by providing accommodation for large ships to benefit the economic development in the project area; (c) providing additional safe energy to meet the requirement of power shortage for economic growth; (d) benefits in irrigation, aquiculture and transportation. Furthermore, the project construction will provide possibility of construction of the planned Xiang-Gui (Hunan-Guangxi) Channel connecting the Yangtze River system with Zhujiang River System to provide a second navigation channel linking Hunan with the coastal area.

C. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

26. During June-September 2009, a preliminary survey was conducted by the HHDI with the project owner and relevant agencies to determine project impacts (i.e. land acquisition and resettlement). In June 2010, further survey was carried out by HHDI to update the data on project impacts. During March-July 2011, detailed measurement survey (DMS) was carried out and the DMS data were disclosed and approved; this RP is consistent with the domestic RP approved by the government.

C1 Permanent Land Requirement

27. The permanent land required for the project totals 5,975.93mu (391.73 ha), of which, 1,988.76 mu (132.58ha)will be farmland, 833.73 mu(55.58ha) will be forest land, 307.66 mu (20.51ha) will be pond, and 2,745.78 mu (183.05ha)will be other land. The land will be required for dam and ship lock, ports, transmission system, reservoir impoundment and the protection works, which will be discussed as follows.

C1.1 Permanent Land for Dam and Ship Lock

28. The permanent land required for the dam and ship lock will be 814.15 mu (54.28ha)with details shown in Table 4.

Table 4: Summary of Permanent land required for dam and ship lock Farmland Forest Grass Transport Housing Total Sub Paddy Sub Pond Dryland timber Shrub land land plot total land total 814.1 475.13. 449.31 25.82 186.2 48.84 137.36 24.28 55.74 68.58 3.7 5

C1.2 Permanent Land for Ports

29. The permanent land required for the ports will be 48.93mu (3.26ha)with details are shown in Table 5. Yunji port is located in the Yunji industry park, so the APs are not living on the farming land. Songbei port is included in the reservoir area.

Table 5: Summary of Permanent land required for Ports Farmland Subtotal Transport Housing Total (Dry land) Pond Grassland land plot

Yunji port 17.31 0.51 17.82 (Hengnan)

Songbei 16.78 1.06 2.11 8.6 2.56 31.11 port

(Changning)

C1.3 Permanent Land for Transmission System

30. The permanent land required for the transmission system will be 0.5mu farmland.

C1.4 Permanent Land for Reservoir Impoundment and the Protection Works

31. The permanent land required for the Reservoir Impoundment and the Protection works will be 5,011.69 mu (334.11ha)with details are shown in Table 6.

Table 6: Summary of Permanent land required for Reservoir Impoundment and the Protection works . Reservoir impoundmen after protection Description Subtotal Hengnan Leiyang Changning A. Farmland 1496.35 884.55 186.68 425.12 1. Paddy land 1047.09 638.9 153.37 254.82 2. Dry land 134.92 49.1 9.03 76.79 3. Beach land 314.34 196.55 24.28 93.51 B. Water pond 281.8 109.1 20.34 152.36 C, Orchard 8.5 8.5 D. Forest land 639.03 400.01 239.02 1. timbre land 112.18 102.21 9.97 2. Shrub land 524.62 295.57 229.05 3. Economic land 2.23 2.23 E. Housing land 13.6 2.92 6.27 3.75 F. Transport land 39.49 33.59 0.28 5.62 G. Grass land 2510.61 1801.89 43.82 664.9 H. Barren land 22.97 3.69 19.28 Total 5011.69 3235.75 276.67 1499.27

C2 Temporary Land Occupation

32. The temporary land occupation will take place in damsite and the reservoir areas. The land temporarily occupied at the damsite includes borrow pits of soil and rock, material stockpile, construction road and mixing plant, while that in the reservoir area includes the borrow pits and farmland to be protected. Details of the temporary land occupation in the damsite,ports and protection works in reservoir areas are shown in Table 7.

Table 7: Summary of Temporary Land Occupation

Farmland Water Forest Housing Location Subtotal Paddy Dry pond land land land farmland

1 Dam site and shiplock 179.58 17.55 186.78 2.42 386.33

2 Protection works 3.41 55.5 23.58 1230.95 1148.46 3 Ports 2.42 2.42 Total 1328.04 5.83 73.05 210.36 2.42 1619.7

C3 Building and Structure Removal

33. The residential buildings to be removed totals 63 households with area of 18,373.23 sq.m. The other structures to be affected are small hydropower plants.

C3.1 Removal of Residential Housing in the Damsite and Ship-lock Area

34. House removal in the damsite and ship-lock area will take place in three villages in two towns of Hengnan County. The total floor area of houses to be demolished is 5939.53 sq.m in 19 households. Details are shown in Table 8.

Table 8: Summary of House Removal in Damsite and Ship-lock Area No. of Earth Total No. of Brick- Brick- Simple Affected No. of wood Floor Town Village Affect Concrete wood house sub- AP Area (m2) ed HH (m2) (m2) (m2) villages 2 3 4 19 78 2758.75 1955.05 261.02 964.71 5939.53

C3.2 Removal of Residential Housing in the Ports

35. The total floor area of houses to be demolished in the ports is 1,749.22sq.m in 4 households with details shown in Table 9.

Table 9: Summary of House Removal in the Ports No. of Brick- Brick- Simple Subtotal No. of Town Affect Concrete wood Earth wood house Floor AP ed HH (m2) (m2) (m2) Area (m2) Yunji port (Hengnan) 1 3 258.4 Songbei port (Changning 3 9 99.38 889.05 403.17 99.22 1490.8 ) Total 4 12 357.78 889.05 403.17 99.22 1749.22

C3.3 Removal of Residential Housing in the Reservoir Area

36. The total floor area of houses to be demolished in the reservoir area is 10,683.48sq.m in 40 households with 200 people affected. The details of house to be affected are shown in Table 10. Table 10: Summary of House Removal in the Reservoir Area No. of No. of Steel Brick- Brick- Simple Subtotal No. of Earth Location villag Affected Concrete Concrete wood house Floor Area AP wood e HH (m2) (m2) (m2) (m2) Hengnan 1 3 17 45.5 1916.08 263.27 699.85 2924.7 Leiyang 9 30 157 56.78 1774.11 1651.22 2.24 341.94 3826.29 Changning 5 7 26 167.89 2712.79 422.58 629.23 3932.49 Total 15 40 200 270.17 6402.98 2337.07 2.24 1671.02 10683.48

C3.3 Affected Small Hydropower Plants

37. Two small hydropower plants will be wholly or partly affected of the income from generated power by the rise of the water level resulting in impacts on 390 persons. These are:

a. Lijiang Hydropower Plant: operated in 1976 with installed capacity of 276 kw, will be wholly inundated with 9 employed staff affected. Its annual gross income of CNY0.4million will be lost. The dam of the plant also functions for flood control and road traffic. The structure to be affected are the dam and the hydropower plant. b. Qinren Hydropower Plant: operated in 1978 with installed capacity of 5,000 kw, will be partly inundated with 381 staff affected, including 235 employed, 53 retired and 93 out of work. About 5% of its annual gross income will be affected due to the loss of water head caused by the water rise in the river.

C3.4 Attachments to Removed Houses

38. The attachments to the removed houses in the damsite,ports and reservoir area are presented in Table 11.

Table 11: Summary of Attachments to Removed Houses

Unit Dam Ports Reservoir Area Subtotal Hengnan Changning Hengnan Leiyang Changning A. Attachments 1.Enclosure wall m2 110.11 56.6 27.51 106.67 548.97 739.75 2. Sunning plot m2 969.43 45 462.09 3392 27.75 1233.77 5115.61

3. Well ea 14 2 1 2 5 4 Telephone HH 4 3 3 5 Out-door antenna HH 3 1 3 4 6Air-conditoner ea 1 0 7 Barn ea 3 1 1 2 4 8 Area of stove m2 3.24 4.97 1.77 6.74 9 No of Stove ea 26 3 8 5 16 10 Water pool m3 38.18 12.7 2.55 1288.38 1303.63 11 Excrement pool ea 2 3 33 15 51 12 Cable TV HH 2 10 12 13 Attached shop ea 11 11 14 Biogas pool ea 3 3 15 、 Housing m2 492.23 492.23 foundation B. Scattered fruit tree 1. Citrus tree ea 305 356 10 51 722 ① Adult tree ea 61 32 3 50 146 ② young tree ea 244 324 7 1 576 2. other fruit tree ea 162 1228 10 104 1504 ①Adult tree ea 77 533 4 4 618 ②young tree ea 85 695 6 100 886 3. Economic tree ea 11 430 3 444 ①Adult tree ea 340 1 341 ②young tree ea 11 90 2 103 4. timber tree ea 85 53 105 1660 41 141 2085 ①Adult tree ea 30 5 1380 17 141 1573 ② Young tree ea 55 53 100 280 24 512 C Tomb ea 48 2 337 9 153 549 1.With stele ea 48 2 120 26 196 2.Without stele ea 217 9 127 353

C4 Public Facilities

39. Besides the major categories of land and properties affected by the project, the other impacts on public facilities in damsite and reservoir areas are shown in

Table 12.

Table 12: List of Affected Public Facilities

Dam Ports Reservoir area Description unit Total Hengnan Changning Subtotal Hengnan Leiyang Changning A. Agriculture facilities 1 Sand dredgihg yard ea 1 95 45 6 44 96 2 Sand stockpile ea 4 3 1 4 3 Water pool m3 199.28 74 125.28 199.28 4 Well ea 2 136 90 8 38 138 5 Siphon pipe m 281.5 214 67.5 281.5 ea 6 Sand washing pool 5 3 2 5

7 Pumping well ea 7 1 6 7 8 Monument ea 2 1 1 2 B. Village-owned

Small Irrigation 1 Fixed pumping ea 6 90 44 11 35 96 location 2 Temporary ea 44 9 8 27 44 pumping location

3 Irrigation channel km 5.668 0.14 13.255 11.699 0.163 1.393 19.063

4 Culvert ea 12 4 183 86 1 96 199 5 Drainage culvert ea 3 3 3 ea 6 Water retaining wall 84 52 2 30 84

C. Transportation facilities 1 Class IV Road km 2 Simple Road km 1.2 1.15 2.46 2.35 0.11 4.81 3 Bridge of road ea 8 2 3 3 8 4 Culvert of road ea 13 6 4 3 13 5 Tractor’s road km 3.778 2.896 1.87 0.054 0.972 60674

6 Tractor’s bridge ea 1 12 8 4 13

7 Pedestrian road km 0.11 11.027 10.22 0.807 11.137 ea 8 Pedestrian bridge 6 1 91 58 8 25 98

9 Boat ferry ea 1 1 1 ea 10 Pedestrian ferry 2 72 43 3 26 74

11 Sand dock ea 6 17 12 5 23

12 Landing steps ea 6 182 84 32 66 188 13 Fishing dock ea 11 11 11 14 Cargo dock ea 1 11 1 10 12 D. Power line 1 110kV km 0.932 0.932 0.932 2 35kV km 0.32 0.32 .032 3 10kV km 2.2 9.203 4.082 0.841 4.28 11.403 4 380V km 6.26 1.28 18.374 12.932 0.821 4.621 25.914 5 220V km 0.463 0.343 0.12 0.463 6 Transformer ea 1 1 E. Tele- communication line 1 Power cable km 0.98 14.402 3.609 1.482 9.311 15.382 2 optical cable km 7.436 1.854 1.741 3.841 7.436 F. Large Irrigation facilities 1 Pumping station for ea 1 1 1 irrigation 2 Water-gate ea 3 24 22 2 27 3 Pumping house of ea 8 8 8 water supply 4 Water Storage ea 4 4 4 tower 5 Pumping well of ea 2 1 1 2 pipe water

40. Except the power and telecommunication line system, the restoration of the other

infrastructure, most of which are used for agricultural production, will be included

in the civil work of construction as a part of protection works. A condition of these

contracts will be that the infrastructure is maintained at all times during the

construction period and completed before project completion.

C5 The Affected People

C5.1 The APs Impacts by Housing and Structure

41. The DMSdata indicates that 63 affected households (AHs) with a total of 290 persons will require relocation. 19 AHs with 78 persons are located in the damsite and shiplock, 4 AHs with 12 persons in the port, and 40 HHs with 200

persons in the reservoir area.

42. The total APs in the two small hydropower plants will be 390 persons.

43. The total APs by structural demolition (households and hydropower plants) is therefore 680 persons.

C5.2 The APs by Land

44. DMS data shows that the permanent land will be aquired in 314 sub-villages of 78 villages, 13 townships/towns, with a total of 38,288 people. The land to be acquired by the project is concentrated in the reservoir area and dam-site，it is averagely shared by all the household in the subvillages, as it is poor and low- lying, suffering from flooding during raining seasons, so the people directly affected by land is equivalent to the total people, 38,288 persons in the affected subvillages.

C5.3 Total APs by the Project

45. As discussed above, the total APs affected by land and/or property acquisition will overlap with that of housing as those 290 persons affected by house removal will also be affected by land loss. The total number of APs affected by the project will include 38,288 persons by land loss and 390 persons by business loss of small hydropower plants. Therefore the estimated number of APs is 38,678 persons.

C6 Income Loss Analysis

C6.1 Income Loss due to Land

46. The overall level of land impact will not be significant at the village level, as average land loss of affected villages is about 2% of village owned farmland(shown in Annex 1), but it will be significant for some of the affected sub- villages. After land acquisition, there are 46 sub-villages whose farmland per capita will be less than 0.5mu，of which 38 of the 46 sub-villages are already less than 0.5mu farmland per capita prior to land acquisition. 39 sub-villages will suffer from more than 15% of farmland loss, of which 10 sub-villages will suffer from more than 30% of farmland loss. The three most severely affected sub- villages are Quanxi sub-village, Binghe village, Yunji town, Hengnan County, Tanjia sub-village, Nitan village, Jinweizhou town, Hengnan County and Gaobao sub-village, Binghe village, Yunji town, Hengnan County with 46.2%, 45.1% and 40.1% of farmland loss respectively. Details of sub-village level impacts are provided in Annex 2.

47. Table 20 in Chapter D estimates that income from agriculture production is 28% of total household income, on average. In most sub-villages, the impact of land loss is not significant since only 8% of household incomes come from agriculture production. This situation can be attributed to the fact that over 80% of farmer

households in the surveyed area derive their income from off-farm activities which, on average, account for nearly two thirds of the household’s income. For the two most severely affected sub-villages with 46.2% and 45.1% of land loss respectively, the income loss due to the land loss is about 4% of the income in the affected sub-villages. Considering average 5% of farmland loss resulted from the project, the income loss due to the land loss is less than 1% of income in the affected sub-villages.

48. 99.2% of the farmland to be required by the project are located in the dam-site and reservoir area. As the farmland is low-lying and has poor quality due to suffering form flooding during raining seasons, it is shared by all the households in the subvillages, averagely 0.05mu per capita. The income loss by land is minimum to the affected households.

C6.2 Income Loss due to Business Interruption

49. The two small hydropower plants, Qinren hydropower plant and Lijiang hydropower plant, with 390 employees, will suffer income loss due to the project, as well as 11 attached shops to the removed residential houses with 49 members.

50. As per the calculations of the backwater results, Qinren hydropower plant on downstream of Chongling river, a tributary of Xiangjiang river, will lose 0.3m waterhead for power generation after the reservoir is completed for water storage, therefore, 5.74% of its designed 1.3 MKV.h generated power will be decreased, so as the income.

51. As per the calculations of the backwater results, Lijiang hydropower plant on downstream of Lijiang river, a tributary of Xiangjiang river, will totally lose its function of power generation, so as the income after the reservoir is completed for water storage,

52. 11 attached shops to the residential houses in Leiyang city will lose their business los of CNY1,000/month during the transition of removal.

C7 Summary of Impacts

53. Table 13 provides a summary of adverse social impacts of the Project.

Table 13: Summary of Major Adverse Impacts of the Project House Removal No of APs* Land (mu) Steel- Brick- Brick- Soil Simple By By By Farm- Forest Other Pond Concr Concr Wood house house Land House busin land land land (m2) (m2) (m2) (m2) (m2) loss Damsite and 475.13 186.2 24.8 128.02 2758.75 1955.05 261.02 964.71 2274 78 ship-lock area Ports 16.78 1.06 31.09 357.78 889.05 403.17 99.22 57 12 Transmission 0.5 Line Reservoir Area 1496.35 647.53 181.8 2586.67 270.17 6402.98 233.07 2.24 1671.02 36302 200 439

Total 1988.76 833.73 307.66 2745.78 270.17 9519.51 5181.17 666.43 2734.95 38288* 290 439 *some APs in the dam-site are overlapped with those in the reservoir area.

D. SOCIOECONOMIC CHARACTERISTICS

D1 Project Influence Area

54. The area influenced by the proposed Tugutang Navigation and Hydropower Project includes Hengnan county, Changning city and Leiyang city (county level) in Hengyang city (prefecture-level), Hunan province. Hengyang city, in the middle Hunan province, is a major economic center ranking third in Hunan province with total gross domestic product (GDP) of CNY11.68 billion and foreign trade of USD785million. Among the three county/cities, Hengnan is the poorest in both rural and urban household’s income.

Table 14: Socioeconomic Status of the Counties in the Project Area Per Total Per Capita Per Capita Farmland % Popu. capita Financial Net Income Net Income per Location Urban (10,000) GDP income of Rural of Urban Capita Popu (Yuan) (CNYmillion) Households Households (Mu) Hengnan 103.57 29.17 13334 544 6230 12591 0.93 Changning 80.33 41.04 14905 641 6158 14216 0.78 Leiyang 127.47 41.53 17756 1235 6486 14122 0.91 Hengyang 739.8 43.15 17299 7009 6327 13911 0.92 City Hunan 6900.2 43.20 20226 150458 4910 15084 0.86 Province Source: Hunan Statistics Yearbook (2009).

D2 Basic Situation of the Affected City/County

55. The proposed Tugutang project will require land and/or property in the district/counties of Hengnan, Changning and Leiyang. Over 95% of the cultivated land will be acquired in Hengnan county and Changning city.

56. HENGNAN COUNTY: The population here is 1,035,700, of which 29.2% (302,100) is urban population. Its total area is 2,688 km2, of which cultivated land is 56,090 ha with 52,520 ha of paddy land. The county’s GDP in 2009 was CNY12,674 million, or a per capita GDP of CNY13,334. The per capita net income of farmers was CNY6,230 in 2009, while the per capita net income of urban residents was CNY12,591. The number of poor people in 2009 was 526,900, including 101,100 urban residents and 425,800 farmers.

57. CHANGNING COUNTY: The population here is 883,300, of which 41.0% is urban population. Its total area is 2,055 km2, of which cultivated land is 37,870ha with 31,660 ha of paddy land. The GDP in 2009 was CNY11,954 million or a per capita GDP of CNY14,905. The per capita net income of urban residents in 2009 was CNY14,216, while the per capita net income of farmers was CNY6,158. The number of poor in 2009 was 37,700, including 9,700 urban residents and 28,000 farmers.

58. LEIYANG COUNTY: The population here is 1,274,000, of which 52.9% (529,300) is urban population. Its total area is 2,656 km2, of which cultivated land is 61,350 ha with 44,840 ha of paddy land. The GDP in 2009 was CNY19,498 million or a per capita GDP of CNY17,756. The per capita net income of farmers was CNY6,486 in 2009; while the per capita net income of urban residents was CNY14,122. The number of poor in 2009 was 211,400, including 149,200 urban residents and 62,200 farmers.

D3 Socioeconomic Survey

59. This Section presents information on the socioeconomic characteristics of the population likely to lose land or property by the project. The information comes from the following sources:

a. HHDI field survey undertaken in parallel with the surveys for the project Engineering Feasibility Study carried out in June-September 2009, and preparation of Preliminary Design carried out in June 2010.

b. Socioeconomic survey undertaken by the Hunan University, which is contracted by PPTA consultant team in August 2010 and carried out in September 2010.

c. Consultation and discussions of PPTA consultants with APs and the local government during July-September 2010; and

d. Township and village statistics compiled by the PPTA consultants in 2010.

D3.1 HHDI Survey (2009-2010)

60. The Feasibility Study survey was conducted by collecting information from the Statistical Bureau, the Planning Bureau and the relevant departments, interviewing local government officials regarding local socioeconomic development and environmental projection. Detailed topics included future development industries, location of the barrage, determination of inundated area, layout of berth, minimization of fertile land occupation and resettlement, and other related issues to facilitating local economic growth and poverty alleviation.

61. The survey for preparation of preliminary design was conducted with focus on collecting information from village leaders and the people whose land is likely to be acquired. Likely APs were consulted on resettlement, acquisition and compensation of land and houses. The HHDI survey found strong support from government at all levels and villagers in the project area. HHDI also concluded that, in most cases, sub-villages would respond to land losses by re-allocating land and that income rehabilitation should be focused on further agricultural development. This survey however did not provide any socio-economic data for

either affected villages or individual households.

D3.2 Socioeconomic Survey (2010)

62. This survey was undertaken by the survey team from Hunan University and supervised by PPTA consultants in September 2010. Its main objectives were: (a) to compile socioeconomic information on the APs; (b) to obtain information on the extent of the APs’ knowledge of the proposed project; and (c) to identify APs’ preferences regarding land re-allocation, house relocation and income restitution measures.

63. The survey involved collecting primary data from selected villages and households on the proposed project area. Two survey instruments were used: (a) a village questionnaire administered to village leaders, and (b) a household questionnaire administered to individual households. The survey team included members of 13 staff from Hunan University while the county and township officials provided full cooperation.

64. A strict purposive sampling frame was designed and applied using data collected in the earlier HHDI survey and information collected by the TA survey team during a preliminary field visit. The following selection criteria were applied: (a) all villages affected by house removal; (b) strong representation of villages that will suffer high proportionate land loss; (c) an even geographic distribution along the river; (d) relative inclusion of the least well-off villages; and (e) an equal distribution of better-off, intermediate and poor households for household interview.

65. The socioeconomic survey covered 23 villages, 60% of villages affected by the proposed project. A total of 181 households, comprising 773 people or the equivalent of about 9% of the APs, were interviewed. Also, 23 village surveys were conducted.

D4 Socioeconomic Characteristics of the Affected Population

66. The data collected during the socioeconomic survey has been analyzed using the Household Livelihood Framework. The framework involves consideration of four different aspects of household socioeconomic characteristics:

a. Human Resources: demographic and education/skill characteristics;

b. Natural Resources: land, forests and access to water supply;

c. Physical Resources: ownership of productive and consumer assets; and

d. Financial Resources: household incomes, expenditure and access to credit.

67. The following sections examine each of these in turn. An additional section describes the survey findings in respect of APs attitudes towards the project.

D4.1 Human Resources

68. The average household size of the population surveyed was 4.65 persons (See Table15). A high proportion of households (64%) have 3 to 5 persons and there are very few small or very large families.

Table 15: Selected Demographic Characteristics Household size Persons Hengnan Changning Leiyang TOTAL % 1-2 9 4 3 16 9.60% 3-5 52 45 10 107 64.10% 6-7 17 17 3 37 22.20% 7+ 5 2 0 7 4.20% All 83 68 16 167 100% Total Pop. 388 318 70 776 - Average 4.67 4.68 4.38 4.65 -

Age Distribution Age Group Hengnan Changning Leiyang Total % <5 years 24 29 2 55 7.10% 6-11 years 32 34 1 67 8.60% 12-14 years 13 8 3 24 3.10% 15-17 years 10 6 3 19 2.40% 18-29 years 103 65 17 185 23.80% 30-39 years 46 52 6 104 13.40% 40-49 years 59 44 13 116 14.90% 50-59 years 49 39 9 97 12.50% 60-69 years 31 34 8 73 9.40% >70 years 21 7 8 36 4.60% Total 388 318 70 776 100%

Occupation by sex Occupation Male Female Totals % Farming only 66 136 202 39% Farming + second 48 7 55 11% job Worker 14 2 16 3% Migrant labor 107 69 176 34% Official* 11 2 13 3% Other occupations** 39 12 51 10% All employed 285 228 513 100% % of farming only 23% 60% 39% Note: * include teachers and doctors; ** indicates managers, transport, business/shop operation, animal raising, etc. Education by sex (excl. under 7 years) Attainment Male Female Total % None 17 38 55 7.80% 1-3 yrs prim. 30 28 58 8.20% 4-6 yrs prim. 89 109 198 28.00% 1-3 yrs mid. 147 119 266 37.60% High school 67 28 95 13.40%

Household size Persons Hengnan Changning Leiyang TOTAL % Tertiary 20 16 36 5.10% All 370 338 708 100% Source: Field Survey 2010.

69. Around 21% of the population is under 17 years of age, and 14% are over 60 years. The labor population (aged 18~59 year old) accounts for 64% of the sampled population.

70. Out of the population interviewed, about 40% are farmers (mostly people over 50 years of age) relying on farming only; the rest are engaged in non-agricultural occupations, including 3% government jobs, 34 migrant laborers and 11% farmers having a second non-agriculture based job. Men are more likely than women to have a second occupation or work outside agriculture which is approved by their wives. When the husband works outside the village, the wife normally stays at home to take care of the kids and parents. Overall, the survey households (excluding poverty households) have at least one member working either full-time or part-time in a non-agricultural occupation and over half of the households have a member working as migrant labor.

71. Migrant workers include people that travel outside the prefecture for employment for seasonal or year-round employment. Local officials estimate that 10% of migrant workers are away for 1-3 months during periods when farm labor is minimal, 10% are away for 4-9 months; and 80% are away for 10-12 months (permanent employment outside or return only for harvest or festivals).

72. Over 85% of the population aged 6 years and over have at least primary education; 56% have been to middle school but only 19% have been to high school or college. Over half of households have at least one member with high school or tertiary education. Proportionately more women have no education at all but the incidence is low and most illiterate people are elderly. School attendance amongst those below 15 years of age is almost 100%.

73. Amongst the adult population, illiteracy (no formal education) is concentrated amongst those aged over 60 years. In contrast, most of those aged from 18 to 49 years have been to middle school or beyond. The household data suggests that most of the adult APs have completed middle school education or higher. This represents a considerable foundation on which to acquire and hone skills through vocational and technical training, or simply through off-farm opportunities.

D4.2 Natural Resources

74. All villages in the project area have sufficient water resources for agriculture with functioning irrigation systems. Therefore, paddy land within the project affected area is more than dry farmland and forest land, which is even less than dry farmland. The households surveyed cultivated a total of over 1,057 mu land. All households had some irrigated land and some dry farmland. The average cultivated land per capita amongst the households interviewed is 1.36 mu, which is higher than the average obtained from village level data (0.88 mu). Per capita

farmland area is 1.63mu in Hengnan, 0.85 mu in Changning as against 2.23 mu in Leiyang. The variation in land per household is shown in the Table 16: 19% households have less than 0.5 mu per capita (in Hunan, 0.5 mu per capita is the minimum holding considered to be adequate for subsistence). Nearly one third of the households have more than 1.5 mu indicating a general land abundance and big difference of farmland holding between households in the project area.

Table 16: Natural Resources Land Area (of all surveyed households) Land type Hengnan Changning Leiyang Total Irrigated 403 178 105 686 Dry 229 91 51 371 Total cultivated land 632 269 156 1057 % Irrigated. 64% 66% 67% 65% Orchard/tea 54 23 1 78 Forest land 151 47 20 218 Other 28 24 9 61 Per Capita Cultivated land Distribution among Households Mu/Capita Hengnan Changning Leiyang Total % <0.5 mu 5 26 0 31 18.6% 0.5-1mu 19 19 2 40 24.0% 1-1.5mu 25 10 4 39 23.4% >1.5 mu 34 13 10 57 34.1% ALL 83 68 16 167 100% Average-Households 1.63 0.85 2.23 1.36 Average-Villages 1.08 0.57 1.01 0.88 Cultivated Land per Capita by Household Size Leiyang Household size Hengnan Per capita Changning Per capita Per capita Total Per capita (house (persons) (households) land (mu) (households) land (mu) land (mu) (h.h.) land (mu) holds 1-2 9 2.43 4 1.74 3 7.75 16 3.25 3-4 52 1.91 45 0.95 10 1.67 107 1.49 5-6 17 1.00 17 0.58 3 1.78 37 0.88 7+ 5 1.44 2 0.91 0 0 7 1.30 All 83 1.63 68 0.85 16 2.23 167 1.36 No land persons 17 26 0 43 Source: Field Survey, Hunan University, 2010.

D4.3 Physical Resources

75. Majority of houses in the affected villages are made of brick/concrete or brick/wood of average quality. Infrastructure provision is however good: all houses have access to road and electricity and only 10% have tap water into the house or yard, others have water available from hand-pressure wells. About 36% households have home telephone and on the average 2.5 cell phones are used by each family. Over 80% have sunning grounds (often concrete) for drying crops.

76. Major productive assets owned by the households include thresher, pump and power engine. Water pump is owned by almost all of the households, threshers by three quarters of the households, and power engine by 29% of the households.

77. Ownership levels of household durables are indicators of the relative wealth of selected households. TV (many are connected to the cable network) is owned by all the households with 2 or more TV sets in 1/4 of the households surveyed. VCD and motorcycle are owned in 2/3 of the households, refrigerators in 4/5 of the households, computer in 1/5 of the households, and air conditioner in 1/10 of the households.

Table 17: Physical Resources Household Durables Productive Assets Item % of HH owning Item % of HH owning Air conditioner 9.00 Tractor 2.40 Computer 19.20 Thresher 74.90 Home telephone 36 Power engine 28.70 Mobile phone 253.90 Harvester 2.40 Refrigerator 82.60 Pump 92.20 TV (color or B&W) 125.70 Motorcycle 67.70 VCD, Etc. 70.70 Vehicle 6.00 Bicycle 41.30 Source: Field Survey, Hunan University, 2010.

D4.4 Financial Resources

D4.4.1 Household Incomes

78. Table 18 presents the distribution of household incomes in the surveyed villages and households. The village distributions are based on average incomes and other indicators such as households experiencing food shortages, recipients of the 5-guarantee (wu-bao) program.

79. Income data provided by village leaders indicates that around half of the households have annual net incomes above Y6,000 per capita and around 7% have annual net incomes of less than Y1,200 per capita.

Table 18: Distribution of Annual Net Income per Capita County Township Village >8000 8000-6000 6000- 3500- <1200 Average 3500 1200 (CNY/capita) Hengnan Yunji Town Xintang 20 30 30 10 10 7,500 Binhe 25 30 30 10 5 8,000 Liping 20 30 30 10 10 6,500 Shitang 5 10 50 30 5 5,500 Songjiang Yuebao 10 15 50 30 5 6,500 Jinpeng 20 30 30 15 5 7,000 Yaotang 60 20 10 9.5 0.5 7,500 Lijiang Longzhou 20 35 30 5 15 5000 Tianzhou 40 20 25 10 5 6,400 Xiangyang Zhuchong 70 15 10 5 0 8,000 Pengzi 10 15 50 15 10 6,000 Liaotian Huangshi 30 20 20 15 5 6,100 Changning Songbei Shuanfa 20 15 35 20 10 5,500 Xintong 15 30 35 15 5 5,800 Songyu 20 15 50 10 5 5,500 Beifang 13 25 35 17 10 6,000 Dongbei 14 22 35 17 12 5,500

County Township Village >8000 8000-6000 6000- 3500- <1200 Average 3500 1200 (CNY/capita) Shuikoushan Songyang 10 70 15 3 2 6,600 Sucai 50 40 10 0 0 10,000 Qingnian 10 20 30 30 10 5,500 Yanzhou Mashi 5 15 70 8 2 4,656 Leiyang Tanxia Shiden 10 10 20 50 10 3,500 Daheshu Xinhua 5 10 25 50 10 3,000 Village Survey Total 22% 24 % 32 % 17 % 7 % 6,207 Household Survey Total 50.2% 13.2% 16.8% 12% 7.8% 10,4382 Source: Field Survey, Hunan University, 2010.

80. Income data obtained from the individual household surveys reveals a similar pattern with the majority of households having incomes over CNY8,000. Overall however, the results are significantly higher than village average: nearly 3/4 have incomes over CNY6,000 and only 7.8% have incomes less than CNY1,200, revealing a generally prosperous rural economy with relatively few poor households. Figure 2 represents the household income distribution.

Fig 2: Income Distribution of Surveyed Households (CNY per capita) 25.0

20.0 19.2 16.8 15.0 13.2 12.0 % 10.2 10.0 7.8 7.2 6.6 7.2 5.0

.0 〈1200 1200- 3500- 6000- 8000- 10000- 12000- 14000- >16000 3500 6000 8000 10000 12000 14000 16000 CNY

Source: household survey data. 2010.

D4.4.2 Income Sources

81. Villages surveyed derive their income from a wide variety of sources. The relative importance of these is shown in Table 19. The importance of migrant labor earnings is clear: it represents the most important income source in majority of

2 The wide discrepancy of average income between the village survey and household survey is mainly caused by the overestimation of incomes from migrant worker and that the households surveyed are commonly located near county town with better road access and market access, and more opportunities of non-farming activities which resulted in higher income. But the average income of village survey total is consistent with the data from the Statistic Authorities in the project area.

the villages. Of the 23 surveyed villages, half ranked migrant work as the first source of income. Cash crops grown vary considerably within the project area. The most common are tobacco, grape and vegetable production. Grain is of vital importance to the local economy, virtually every household cultivates it, but it is used mainly for domestic consumption rather than as a cash crop in its own right.

Table 19: Relative Importance of Income Sources in Surveyed Villages Cash Animal Migrant Off-farm County Township Village Grain Others crop husbandry labor activities Hengnan Yunji Town Xintang 3 4 5 1 2 6 Binhe 5 2 4 1 3 Liping 2 3 4 1 5 Shitang 1 4 5 2 3 Songjiang Yuebao 3 5 4 1 2 Jinpeng 1 3 3 3 1 Yaotang 4 3 5 1 2 Lijiang Longzhou 2 3 5 1 4 Tianzhou 5 3 2 1 4 Xiangyang Zhuchong 5 2 4 1 3 Pengzi 3 3 4 1 2 Liaotian Huangshi 1 4 3 2 Changning Songbei Shuanfa 1 3 4 2 5 Xintong 3 4 5 1 2 Songyu 0 0 1 2 2 Beifang 3 4 5 1 2 Dongbei 3 4 5 1 2 Shuikoushan Songyang 4 3 5 2 1 Sucai 5 2 4 3 1 Qingnian 1 5 4 3 2 Yanzhou Mashi 1 3 5 2 4 Leiyang Tanxia Shiden 1 5 3 2 4 Daheshu Xinhua 2 4 3 1 5 Note: *1=ranked first, the highest rank. Source: Field Survey, Hunan University, 2010.

82. Local off-farm income sources (e.g. local factories and business) are also frequently mentioned. Enterprises providing employment include mines, township enterprises, and ferrous alloy plants, especially in Changning city.

83. Table20 shows the different income sources in the surveyed households. In the gross income of the sample households income from salaries of migrant workers for 53% of the sample ranked first followed by non-agricultural business income and aquatic products, accounting for 19% and 13%, respectively. Incomes from agriculture and forest contribute to 12% of the total incomes, and grain production is twice as much than forest production. This has a significant implication for income rehabilitation of affected households, i.e., the income from both grain production and cash crops accounted for about one eighth of total household gross income; if the affected households lose 20% of their land, the impact on gross income loss would be less than 2%.

Table 20: Income Sources and Per Capita Net Income of Households Income (gross) per household in 2002 Sample Average % Hengnan Changning Leiyang (CNY) Income from grain Production 5,164 8% 6,475 2,790 8,450 Income from cash crops 2,576 4% 1,962 3,438 2,099 Fruits 1,799 3% 2,813 916 294 Fowl and aquatic product 8,100 13% 4,336 8,337 26,623 11,856 9,590 15,132 9,688 Non-farming business 19% Salary income 33,436 53% 40,119 27,954 22,063 Total 62,932 100% 65,296 58,567 69,215 Production costs 5,164 8% 6,475 2,790 8,450 Per capita net income (CNY/Person) 10,438 - 11,294 9,599 9,602 /1 includes costs for chemical fertilizer CNY892, seeds CNY297, pesticide CNY539, and other costs for animal husbandry 4549, and non-farm activity cost 7758. Source: Household Survey, Hunan University. 2010.

D4.4.3 Expenditure Patterns and Savings

84. Based on the data of expenditure of 181 households, each member in sample families spent an average of CNY7,065 in 2009. As is shown in Table 20, great discrepancies in expenditure per capita exist in different areas. The average expenditure in Changning County, CNY6,524 per capita, is the lowest and is CNY1,079 less than the highest in Leiyang City.

85. The largest single item in the APs’ average consumption pattern is for basic needs, e.g. food, clothing and housing, which represent around 65% of total consumption expenditure. The other two largest expenditures items are for medical care (11%) and children’s education (10%).

86. The per capita net income less the per capita expenditure (10,438-7,065=3,375) equals the per capita savings plus the value of self-consumed food. However, these are average figures and the situation varies considerably from household to household.

Table 21: Per Capita Expenditure of Sampled Households Hengnan Changning Leiyang Total Daily life Per Per Per Per Total Total Total Expenditure capita capita capita capita Food 920,100 2,371 699,100 2,198 183,400 2,620 1,802,600 2,323 Clothes 203,600 525 148,400 467 23,150 331 375,150 483 Housing 509,590 1,313 1,098,650 3,455 145,510 2,079 1,753,750 2,260 Domestic electric 29,890 77 20,400 64 4,900 70 55,190 71 facilities Transportation and 197,840 510 137,900 434 37,130 530 372,870 481 communication Education & 316,500 816 156,400 492 72,100 1,030 545,000 702 entertainment Medical care 353,930 912 157,970 497 66,000 943 577,900 745 Total 2,531,450 6,5242,418,820 7,606 532,190 7,603 5,482,460 7,065 Source: Household Survey, Hunan University. 2010.

D4.5 Project Related Issues

87. By the time the socio-economic survey was undertaken, only a small proportion of households was unaware of the proposed Project. The information has been widely diffused in the related regions through meetings of the local officials at various levels, local newspapers and the TV stations, investigation of communications department, and field survey conducted by HPDI. But only 15% of the interviewed people gave a positive answer of knowledge of the policy on land acquisition and resettlement, and nearly three quarters (74%) did not know about it. Table 22 provides the results in terms of all preferences mentioned.

88. The perception of surveyed households was that the project would bring advantages in terms of assurance of electric supply, promotion of local business, development of and benefit from irrigation. The perceived negative impacts of the project are inundation of farmland (by 84% of respondents), income loss (72%), increased risk of flooding of farmland (60%), damage to infrastructure and fishery production (56%), and land acquisition or property loss (55%).

89. Table 22 sets out the views of the village committees in the sampled villages on the positive and negative impacts of the project. While village leaders saw positive impacts as outweighing negative impacts, they were open to identify the negative impacts they foresaw.

Table 22: Perceived Disadvantages and Concerns of the Project Income Village land Crop damage decrease loss a. Perceived disadvantage No. of household mentioned 131 125 125 % of total 158 households 83%* 79% 79% b. Do you worry about land No Not clear Yes acquisition? No. of respondents 65 6 88 % of total 159 respondents** 40.9% 3.8% 55.3% c. Do you know land acquisition and No Not clear Yes resettlement policy? No. of respondents 117 19 23 % of total 159 respondents** 73.6% 11.9% 14.5% d. Do you know the procedure of No Not clear Yes complaint readdress? No. of respondents 114 23 % of total 157 respondents** 73% 27% * Of those mentioning a disadvantage, multi-choices, thus it is not necessary to add to 100% of 158 households. ** indicate more efforts should be paid for information disclosure. Source: Household surveys, 2010.

Table 23: Anticipated Impacts of Project on Village—Village Survey Advantage Ensure Lower Promote local More safe Benefit Promote Improve

power power price business navigation irrigation flood fishery supply for development control production Respondents 14 7 11 8 11 9 5 %* of 55 villages 56% 28% 44% 32% 44% 36% 20%

Paddy land Negative Income Land House More flood into water Infrastructure impact loss Disadvantage loss flooded some where pond flooded on fishery Respondents 21 4 15 15 14 14 18 %* of 55 villages 84% 18% 60% 60% 56% 56% 72% * Multi-choices for each respondent, thus not necessary add to 100%. Source: Village Surveys. 2010.

90. Individual households were also interviewed about their preferences on measures to mitigate the adverse impacts on productive land and/or housing losses. Table 24 summarizes the responses of the households. In short, their responses were:

a. 86% of sample households preferred that the land compensation fee be distributed directly to those households losing land that they are now farming under user rights contracts. 30% showed their willingness of land redistribution among all members of the land owning group; 12% preferred the aqua-product development for income rehabilitation. 13% of respondents intended to have new land reclaimed.

b. On the other hand, if compensation were to be paid directly to those losing land or property, most of the respondents prefer to invest in medical care, followed by children’s education, housing condition improvement, and small businesses. A small proportion (16%) said that they would use the money for investment.

c. If their houses were demolished then 86% of respondents would like to build a new house close to their existing home or within the same village. Only 14% of respondents would like to move to a suitable site outside their village land.

d. On the option of building new houses, the most preferred option is Self- building with neighbor’s help, followed by getting the house built by the local government, built by IA and contractor.

Table 24: Sampled AP Preferences for Mitigation Measures Item Hengnan Changning Leiyang Total % AP preferred Strategy to Mitigate Loss of Farmland and Income a. Land redistribution within Group 35 10 2 47 29.6 b. New land reclamation 13 5 3 21 13.2 c. Reasonable compensation 60 61 15 136 85.5

d. Expanding aqua-product 18 24 3 45 28.3 production Preferred Use of Compensation Paid Directly to APs* a. For children’s education 29 33 4 66 41.8 b. Medical care 31 34 10 75 47.5 c. Operating small business 29 27 6 62 39.2 d. Improve housing conditions 30 22 5 57 36.1 e. Making investment 17 7 2 26 16.5 f. Miscellaneous items 8 10 3 21 13.3 AP preferred Site for House Relocation a. Within the same village 30 9 4 43 86 b. Suitable site outside AP’s village 3 1 3 7 14 land Preferred method of building new house a. Self-build with neighbor’s help 24 7 4 35 76 b. contracted to construction co. 1 2 0 3 7 c. Built by government 3 0 2 5 11 d. Built by IA 3 0 0 3 7 * Since the topic is a multiple-choice question, it is not necessary that the percentage can be added up to 100%, but shows respondents’ preference of total 657 households on the single sub-topic. Source: Household Survey. 2010.

D5 Vulnerable Groups

D5.1 The Poor

91. Within the directly affected counties/city in Hengnan, Changning and Leiyang, there are a total of 155,589 rural poor and 36,211 urban poor. These figures are equivalent to 7.8% and 3.1% of the total rural population and urban population respectively. Details are shown in Table 25.

Table 25: Poverty Population in Project Affected Area Items Directly affected county/city Hengnan Leiyang Changning Sub-total Total Population 1023500 1259700 862900 3146100 Rural population 726,100 749,900 514,800 1,990,800 Urban Population 297,400 509,800 348,100 1,155,300 Rural MLSS (Yuan/month) 60 60 57 57-60 Rural Poor population under MLSS 48332 60214 39475 148,021 support Rural Poverty below MLSS incidence % 6.7 8 7.7 7.4 Rural poor above MLSS but below poverty 2223** 1690** 3655** 7568 line* Sub total of rural poor 50555 61904 43130 155589 Rural Poverty incidence % 7.0 8.3 8.4 7.8 Urban MLSS (Yuan/month) 180 210 180 180-210 Urban Poor population under MLSS subsidy 11951 13429 10831 36,211 Urban poor incidence % 4.0 2.6 3.1 3.1 * Rural Poverty Line: CNY1196. **It is estimated that poverty incident rate in poverty villages are 20% in addition to the poor below MLSS.

Source: Poverty and social assessment.

92. The results (Table 26) from the surveyed villages suggest that there are 2,195 rural poor in 53 villages, accounting for 11.9% of rural population.

93. In villages surveyed in the rural area, leaders attributed the poverty of individual households to illness, age and number of children going to school. In the household survey, poor households gave lack of land, age, disability or sickness as the main causes of their poverty.

94. Village leaders interviewed in the poor villages attributed the relative poverty of their villages to a combination of causes, including their remote location from county center, no specialized cash crops production but grain, less land and high transport costs. Agriculture is the mainstay as there are no developed industries.

Table 26: Rural Poor in Surveyed villages

County/ Township/ Total Rural Village HH Poor HH city Town popu poor

Hengnan Songjian Yuebao 304 1270 12 37 Jinyu 291 1202 11 27 Manjin 267 1205 10 26 Yaotang 328 1255 Xiaoxiang 274 978 9 26 Songzhu 337 1427 9 20 Huangtang 368 1767 Jinpeng 249 1070 7 23 Yuji Binghe 298 1119 14 39 Shitang 251 1131 8 26 Liping 367 1338 Gaobao 298 1400 20 95 Xiaobaizhu 309 1086 9 29 Xintang 418 1480 14 32 Baohe 309 1350 10 23 Lijiang Qingtian 228 948 8 27 Tianzhou 341 1407 20 46 Baizhou 455 1688 42 145 Liyu 348 1388 28 65 Qishan 369 1224 15 34 Xiangyang Zhuchong 234 1240 12 49 Xiangjiang 260 980 16 64

County/ Township/ Total Rural Village HH Poor HH city Town popu poor

Yushi 180 700 18 30 Zhaoyang 280 1234 20 55 Pengzi 280 1100 20 68 Liantian Hekou 415 1707 Huangshi 375 1550 11 37 Changning Shuikoushan Songyang 396 1442 15 35 Qingnian 662 2415 Songbei Dayu 528 1994 95 95 Zishan 239 925 40 40 Yanxing 314 1245 47 49 Dushi 317 1695 42 58 Qingshui 461 1540 23 Zhubo 598 2258 0 Shuanglin 193 1012 40 Xintong 396 1480 44 Shuangfa 374 1709 61 27 Beifang Dongbai 321 1498 44 46 Shuangbai 320 1230 43 147 Beifang 548 1918 66 68 Daxin 196 861 54 54 Wansong 470 1880 30 Yanzhou Mashi 318 1202 Shangxin 253 960 Leiyang Daheshu Xinhua 548 1721 58 130 Qunle 447 1848 46 90 Yanjiang 500 2192 14 47 Ronggong 385 1376 35 87 Aiqun 310 1650 28 58 Tanxia Shiden 552 2450 32 64 Qujia 358 1520 35 77 Total 53 18437 74265 1235 2195

D5.2 Minorities

95. There is no ethnic minority group in the project direct impact counties.

D6 Gender Aspects

96. In the project affected area, females account for almost 50% of the total population and work force. Most of the Project benefits accruing in the project area will therefore benefit males and females more or less equally. However in view of the Project’s potential role in preventing an increase in health problems and the inconveniences associated with disruptions to domestic water supplies, the Project will have added benefits to women.

97. In the rural areas, two factors associated with the Project are likely to increase the role of women in farming activities: (i) many men in the surrounding villages indicated that they are keen to take advantage of employment opportunities during Project construction and after construction with the stimulation of local economic development; and (ii) in resettlement areas, villagers expressed concerns during the focus group discussions (FGDs) of the impact of the Project on their livelihood activities – men talked of responding to these potential changes by seeking off-farm work as migrant labor or strengthen off-farming business in the project industry park area.

98. If the number of the men seeking off-farm employment does increase, this will increase the women’s share of the farm workload. According to the village leaders interviewed, when a woman’s husband works outside the village or engages in a non-agricultural job for months at a time, the woman and older children in the family assume most of the responsibilities for cultivating the land and caring for the animals.

99. Any negative impact of this increased workload on women may well be offset by increased household income, given that it is usually the woman’s responsibility to budget household expenditure. However, this potential expansion of the role of women in farming reinforces the need for women to be fully integrated into any income restoration program established for resettled households.

100. Although off-farm labor is undertaken by significantly more men than women, some young women from villages also undertake casual work. Female migrant workers are mainly employed as hotel waitresses in towns and cities. They also run small businesses in the wholesale markets and street shops, or do child care and/or domestic work. Women in the villages are keen to work outside the village, and want assistance from the Women’s Federation and Labor Bureau to enter the labor force. The stimulation of local industrial development by the project is anticipated to have additional benefits for women.

101. Moreover, although it is estimated that approximately 70% of the construction work will require unskilled labor, this work is likely to involve heavy digging and carrying. It has been suggested that it will not be suitable for women and that it would therefore be unrealistic to set a target for women’s employment in unskilled work. Nonetheless, the PMO believes it would be realistic for 30% of

37 these jobs to go to vulnerable groups including women, many of whom could be recruited from the poorer village households.

E. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

102. Stakeholders have been identified during the PPTA, which included project meetings and field visits. The primary stakeholders include rural and urban residents who will obtain enhanced security of power supply, farmers who will benefit from reduced irrigation cost, shipper who will have less transportation cost, and APs who will lose land, houses or businesses and the residents in the resettlement area. The key stakeholders in this project regarding resettlement are APs, officers from government of municipal, county and township level, village leaders, and the EA/IA.

103. As required by to the laws and regulations of PRC and ADB’s policies, public consultation shall be held to get the opinions of stakeholders on the project, especially on their entitlements, as well as establishing procedures on the resolution of complaints. The active participation of the APs in Project design, planning and implementation, formulation of policies on matters that affect them will help in the smooth implementation of the Project.

E1 Methods of Public Consultation and Participation

104. Public consultation and participation are made possible through the following:

a. Village group discussions with village representatives or village leaders to discuss key issues that the villagers were concerned with and to collect suggestion from the villagers and local government on how to address those issues.

b. Coordination meetings with the owners or representatives of affected enterprises and institutions to negotiate for and agree on their relocation, compensation rates, and the other issues related with income restoration.

c. Disclosure of project information through the distribution of Resettlement Information Booklet (RIB) and the disclosure of the RP (see Section E4).

105. In addition, the public, especially the APs, can submit their complaints, opinions and suggestions regarding the Project to the village heads and resettlement office at every level.

E2 Consultation during RP Preparation

106. Since the first survey and an initial socioeconomic survey conducted during June-September 2009 by the Design Institute, a series of public consultations was undertaken by XNCD. Concerns covered in these consultations are summarized in Table 26. The government participants to the consultations are listed in Annex 3.

107. Specific to the preparation of the RP, five big consultation-meetings (two at the county and three at the township level) were held in July-September, 2001. Local officials, APs, personnel from relevant government offices (including the Land and Resources Bureau), and the PPTA consultants attended the consultation-meetings. Among others, resettlement options and the entitlements of the APs were discussed during the consultations. The resettlement policy and the entitlement matrix in this RP have been crafted to reflect the consensus reached with the APs during the consultations, particularly on compensation rates and the formulation of an income restoration strategy based on land redistribution and cash compensation.

On the early stage of preparing pre-FSR, public participation was encouraged in ways of interview, group discuss and meetings for the design of the project. Opinions and suggestions from the public were recorded. Wide and full consultation were made with the government agencies of planning, transportation, fishing, land, etc on the selection of damsite and level of water storage. The proposed alternatives of dam site and level of water storage

During the stage of preparing FSR, the owner and designer held several meetings with the local government on the level of flooding line, flooding area, compensation standards, and resettlement measures. Non-government organizations and the owner of the enterprises were also consulted as well as the local people.

In order to collect the socio-economic information of the project area, interviews and group discussions were held with the local agencies of agriculture, statistics, etc, as well as poverty alleviation office and women federation. The compensation standards set forth in the RP were resulted from the wide consultation with the LAB, Construction Bureau, Water Conservancy Bureau, Power Supply Bureau and Telecommunication Co in the three related cities/counties

To prepare feasible income restoration plan of village group, the designer of the RP made broad and deep consultation with the related agencies of agriculture, forest, etc as the village heads and representatives of affected farmer. For resettlement plan of affected enterprises, negotiation of compensation were made with the owner of the affected enterprises.

The major activities of public participation and consultation are summarized in Table 27.

Table 27: Stakeholder Participation and Consultation Record No. of Responses/Main issues Agency Date Participants Purpose People discussed/concerns HPDT, July, 2009- Farmers, 1000+ Project  Requests for socio-economic HTDI municipal July 2010 Business owner, Engineering information professor, local Pre-Feasibility and county  Survey for Pre-Feasibility Study officials government Study  Option of selecting barrage site, whenever possible, to minimize farmland occupation in alignment selection  Inundation criteria and determination of project impact HPDT, HHDI, July-Oct, Farmers, local 350+ Project  Requests for socio-economic

No. of Responses/Main issues Agency Date Participants Purpose People discussed/concerns HTDI municipal 2010 government/ Engineering information and county factories Feasibility Study  Arrangement for field visit for initial officials representatives socio-economic survey.  Survey inputs for Engineering Feasibility Study  Estimation of project impact  Consultation with local government and enterprises on the future development plans and how the expressway will facilitate their development effectively. PPTA September Farmers, village 800+ Socio-  Discussion of local attitudes to project consultants 2010 heads, Local economic  Completion of multiple-choice Officials survey for questionnaires on local perceptions and Hunan preparation of University RP concerns regarding proposed barrage  Group interviews at 34 villages in the project area  181 Household interviews  Findings indicated overwhelming support for project  Consultations with APs on land flooding issues, need to address compensation and relocation issues XNCD, March –July Farmers, village 1000+ Conduct  Inventory of all assets and land holdings; Designer, 2011 heads, Local Detailed  Creation of definitive list of APs; CROs, TROs Officials Measurement Survey (DMS) XNCD, August 2011 APs and local 300+ Workshop on  Compensation standards Designer, officials the outline of  Resettlement measures CROs, TROs RP  Reestablishment of affected enterprise  Plan of protection works HNRB, XNCD, September, APs and local 100+ Hearings of  Compensation standards Designer, 2011 officials Outline RP  Resettlement measures CROs, TROs  Reestablishment of affected enterprise  Plan of protection works XNCD, March 2012 APs and local 200+ Workshop on  Compensation standards Designer, officials RP  Resettlement measures CROs, TROs  Reestablishment of affected enterprise  Plan of protection works HNRB, XNCD, April 2012 APs and local 90+ Hearings of RP  Compensation standards Designer, officials  Resettlement measures CROs, TROs  Reestablishment of affected enterprise  Plan of protection works XNCD, May 2012 APs 1000+ Disclosure of  Disclosure of RP information, esp Designer, RIP compensation standards CROs, TROs  Contact to PCC TOTAL number of people consulted* 4840+ - - *NB. In addition to the above, numerous meetings were held (during July--August 2010) between HDoT, HPDI, HECC, the PPTA consultants, and local officials to discuss details of the RP including ADB policy and requirements, information needs, relocation and income restoration policies and the implementation programme.

E3 Public Participation and Consultation during RP Implementation

E.3.1 Measures of ensuring Public Participation The major measures of ensuring public participation during RP implementation are: (1) Information disclosure, to make all APs available of the project information including project impact, compensation policies and standards, payment of compensation, possible housing plot, implementing organization and schedule, etc. (2) Establishing sound organization system, to ensure AP’s concerns, especially vulnerable and tenure without formal legal title being voiced, and (3) Smoothing grievance readdress mechanism.

E.3.2 Public Participation in House Construction Firstly, the house compensation agreement will be signed with the head of household on the price determined in the RP, which have been fully consulted with the affected households. As the info of area and the structure of housing were disclosed and confirmed by the households during the RP preparation, the main context to be determined, when signing the compensation agreement, will be time and method of payment of compensation, and timing of housing removal.

Secondly, the new house construction will be carried out by the household within the village group, which is the most preferred resettlement measure indicated in the survey results of preferred housing site and housing method. For those who are unable to build their own new house, assistance will be provided by the local government and village, and additional fund support by the project.

Then the removal of the old house will be made after the construction of new house. Normally most households will demolish the existing house before building new house, as they are willing to make use of salvaged material which is free from the compensation cost. In the case of building new house after house removal, they will be sheltered in the neighbors or relatives. Anyway, transitional subsidy will be paid to the household.

E.3.3 Public Participation in Income Restoration

All APs in the affected sub-villages will participate in the whole process of policy making of production restoration, specific restoration measures and income restoration, i.e, discuss on the land redistribution, payment of land compensation, agricultural and non-agricultural skill training, job opportunities during construction, etc.

108. The public, especially the APs, will continue to be consulted and their participation solicited during the updating of the RP following detailed design and during its implementation. Major activities to be carried out to ensure public participation during RP updating implementation are summarized in table below:

Table 28: Public Participation and Consultation Plan Implementing Purpose of Event Task Timing Participants Remarks Agencies

Implementing Purpose of Event Task Timing Participants Remarks Agencies Establishment of GRM, Deal with PCC was XNCD XNCD, RE, (i) lodging the complaints key functioned by PCC complaints established in CRO, from APs; (ii) coordination from APs March 2012 contractor, with RE, CRO and and will be and APs contractor to deal with the working through complaints; (iii) monitoring the process of the process and results of RP actions taken for the implmentation complaints Village level economic Village Sept. 2012for County and All APs (i) Identification and rehabilitation plan meetings planning and Township level allocation of new housing finalization and implementation Resettlement sites; (ii) Finalization of implementation thereafter Offices and land redistribution and (involving village leaders compensation several disbursement options in meetings to each village; and (iii) deal with RP Discussion of and implementation) decisions on how to invest/use compensation funds not distributed to individual APs Disclosure of agreed Distribution September XNCD, County All APs Distribution of final RP to (final) RP of Chinese 2012 and Township all affected villages version of Government RP

E4 Information Disclosure

E4.1 Disclosure of Detailed Measurement Survey (DMS) Data

109. After the survey method pf DMS was approved by HNRB in December 2011, the survey, assisted by local government and villagers, was carried out in March-July 2011 by XNCD with the designer. The DMS data of project impacts was disclosed to APs and confirmed by the local government in July 2011, which was posted in the affected village to let the affected and the unaffected people understand the degree of farmland loss within the sub-villages and the details of houses, including house size, structure and attachment, to be removed by each affected household.

E4.2 Disclosure of Resettlement Policy

110. The two major resettlement policies are the compensation standards for land loss and post-stage assistance policy. The compensation standards to be applied for land affected by the project is HPG Decree No 43: (2009): Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province. The Decree is uploaded in the government website which is available to the public and its justification is discussed in Chapter G of this RP. The post-stage assistance policy, State Council Order No 16 (2006): Improving Post-stage Assistance for Large and Medium Reservoir, is also applicable to this project and can be viewed by the public

on the website www.hunan.gov.cn. These policies, together with the Project resettlement policy, was available to the public with the distribution of the resettlement information booklet (RIB) in May 2012and the posting of the draft and final RP in village and local government offices. E4.3 Issue of Resettlement Information Booklet

111. After the outline of RP, which was approved by HNRB in September 2011, was disclosed to all local officials and made available to village leaders in June 2012. The resettlement information booklet (RIB) was distributed in the project area in late May 2012. The RIB (see Annex 4) covers most of the major information of the project, such as (i) description of the project; (ii) project influence/Impact area; (iii) compensation rates and policies; (iv) entitlement matrix; (v) institutional/implementation arrangements; and (vi) grievance redress procedures. It will be distributed to all sub-villages in the project area and would be available at each township resettlement office (TRO) and country resettlement office (CRO). After the circulation of RIB, higher compensation standards for house were formulated, the new standards will be disclosed to the APs by posting in the villages before RP implementation, presently scheduled in October 2012.

E4.4 Disclosure of Outline of RP

112. The outline of RP including the contents of the project purpose, project impact, the policies and procedures regarding land acquisition, resettlement, compensation, etc. was disclosed to the APs and local governments. Before its submission to Hunan Province Resettlement Bureau (HNRB) for approval, workshops and hearings were held with the local government and APs for their comments during August-September 2011, and the outline of RP was approved by HNRB at the end of September 2011.

E4.5 Circulation of draft and final RP

113. The draft RP was circulated to local government officials in April 2012 for review before its approval by HNRB on behalf of HPG. When submitting the RP to HNRB for approval, the comments and suggestions from APs and local governments was incorporated in the RP. The domestic RP was approved on June 28, 2012 by HNRB on behalf of HPG, and is available at each TRO and CRO. This RP of ADB version is consistent with the domestic RP, once approved, it will be also availbe to the APs at each TRO and CRO.

F. GRIEVANCE REDRESS MECHANISMS

F1 Introduction

114. Efforts to facilitate and encourage public participation was made by the DI, EA/IA and local governments in municipal, county and township level during project preparation. When preparing the RP, the APs were invited to take part in the measurement of loss of land and property and were consulted on the compensation standards and resettlement options. Furthermore, the public will also be encouraged to participate in monitoring the implementation of RP. Nevertheless, unforeseen problems and issues may still arise due to construction and operational impacts. Therefore, to ensure that the APs have avenues for the redress of grievances related to any aspect of land acquisition and resettlement, a mechanism for this has been established.

F2 Current Practice

115. Under the current system (Fig. 3), the APs can make complaints to the contractor, resettlement offices (RO) of the local government, XNCD─the Implementing Agency, or court of law. All the complaints can be sorted out under two categories: resettlement related and non-resettlement (construction) related complaints. Among the agencies involved in grievance redress, the RO of local government, especially CRO, is responsible for dealing with APs’ complaints related with land acquisition and resettlement activities, while XNCD for dealing with construction related complaint, mostly on the disturbance of daily life and interruption of production.

116. The APs tend to direct their complaint to the contractor, XNCD, local government, before they finally appeal to the court. APs usually bring their complaint to the contractor or the Resident Engineer (RE) in the first instance if they are convinced that the problem is construction related. In case the contractor's response is unsatisfactory, they will go to the local government authorities. However, being not directly involved in the construction activities of the project, it is generally difficult for local government authorities to comprehend the actual ground situation or make a right decision. The complaints will be forwarded by local government, usually RO, to XNCD to resolve the complaint. This can take up a considerable amount of time to ascertain the facts and comprehend the situation for finding a solution of the complaint with assistance from the designer and/or RE.

117. The resettlement related complaints are usually lodged at the Resettlement Office (RO) of local government and may eventually be elevated to the township, county, municipal and province level from village. If a complaint related with the activities of resettlement and rehabilitation program was lodged to the local TRO, the response or resolution on the issue will be made by the TRO within two weeks. In case the response or resolution from the TRO is unsatisfactory, the complaint will be

forward to the CRO for resolution, and may be further elevated to the HYRB or HNRB. If the final decision from CRO, or HYRB is unsatisfactory, appeal to the Peoples Court can be made, at the appropriate level, in accordance with the “Civil Procedures Act”.

Fig 3: Current Practice of Grievance Redress for the Project

TRO AP

RE Contractor CRO XNCD

HYRB or Court of HNRB Law Source: Site Interview.

F3 Proposed Grievance Redress System

118. Among all the agencies involved in the response to AP’s complaints, XNCD is the most efficient agency being the most knowledgeable about the project activities and with the needed links with the local government. Consulted with XNCD, a Public Complaints Centre (PCC) was established in the site office in early May 2011 to accelerate the process of complaint handling and resolution. The local government bodies at the county, city and province level will nominate an officer to act as a focal point for contact by and with the PCC.

119. The PCC will be staffed by an officer from Reservoir Office of XNCD and will have facilities to maintain a database and communicate with the Resident Engineer (RE), XNCD, Governors of county, city and province, and also with APs. The PCC’s phone number, fax, address, email address was made known to the people through displays at the respective offices of the county, city and province government administrations and public places. This information regarding contacts to the PCC and the procedure for lodging a complaint at the PCC was disclosed to APs through the RIB and will be further disclosed through the RP. Contact to the PCC can be made through the following method.

Contact person Location of Office Phone Zhang zixiang PCC of site office of NXCD at Huanjin 0734-8633502, quarter, Hengnan County 18932101878 Xu Taiguo Hengnan Couty Coordination Headquarter 0734-8559908, of Tugutang Naviagation and Hydropower 13973463946 Complex Lei Jide Changning City Resettlement Bureau 0734-7232983, 13873465588 Liao manguo Leiyang City Resettlement Bureau 0734-2552663, 13786420999

120. The Project grievance redress mechanism is as follows:

a. When a problem due to the Project activities occurs the AP will make a complaint to the PCC. In case the AP is unable to direct the complaint to the PCC, it will lodge the complaint at the county, city and province office where the nominated officer will accept and immediately direct the complaint to the PCC. At the PCC a complaints register/database will be maintained with the following information:

Table 29: Public Complaints Database Further Action Feed Back Reference No. and Action Category Date Nature of Complaint Taken

Action by Date Sent to Date

Source: Designed by PPTA.

b. Upon receipt of any complaint, the PCC will coordinate with the RE and the Contractor to resolve the problem. The RE will have the required authority to instruct the contractor on action that should be taken for redress. PCC will update the complaints database with action taken and the feedback provided to the complainant.

c. Any complaint that cannot be resolved at the PCC/RE/Contractor level will be directed to the HNRB/HPDOT for action. Complaints thus directed and their outcome also will be recorded in the database. The XNCD director will monitor the Public Complaints register and prepare monthly reports to be submitted to the Director of HNRB/HPDOT.

121. The Grievance Redress Mechanism is illustrated in Figure 4 below.

Fig 4: Concept of Grievance Redress Mechanism for the Project

Affected people

Contractor Public Complaints Local Centre XNCD Government

Resident Engineer

F4 Responsibilities of PCC

122. When a complaint is received at the PCC it will commence the redress process immediately as follows:

a. Log complaint and date of receipt onto the complaint database and inform the RE and CRO/contractor immediately; b. With the RE and CRO/contractor, investigate the complaint to determine its validity and to assess whether the source of the problem is due to Resettlement or activities; c. If a complaint is valid and due to resettlement/construction activities, identify mitigation measures in consultation with the RE and CRO/contractor and advise the CRO/contractor accordingly; d. Monitor the CRO/Contractor's response on the identified mitigation measures and update the database; e. Inform the complainant of the action taken with copies to the local authorities if the complaint was directed by them; f. Undertake further monitoring in conjunction with the RE and verify the situation, and if necessary instruct the CRO/contractor of measures to be taken to avoid such complaints; g. Report the results and the subsequent actions to the XNCD Management.

123. PCC staff will be trained on the implementation of the grievance redress procedures. The external Monitor will be given access to the database of complaint records. ADB should be notified of all complaints that relate to non-compliance with the RP, and all complaint that go unresolved. APs should also be informed of ADB’s Accountability Mechanism.

G. LEGAL FRAMEWORK AND RESETTLEMENT POLICY

124. The legal framework and resettlement policies, which form the basis for this RP, are based on two sets of sources: Chinese Laws /Regulations and local by-laws, and ADB policy requirements.

G1 Legal Framework

G1.1 ADB Safeguard Policy Statement 2009

125. Provide physically and economically affected persons with needed assistance Objectives: 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 affected persons in real terms relative to pre- project levels; and to improve the standards of living of the affected poor and other vulnerable groups.

126. Policy Principles on Safeguard Policy Statement (2009) for involuntary resettlement are summarized as follows:

a. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. b. Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all affected 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. c. Improve, or at least restore, the livelihoods of all affected 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. d. , 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.

e. Improve the standards of living of the affected 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. f. 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. g. Ensure that affected persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. h. Prepare a resettlement plan elaborating on affected persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. i. 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. j. 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. k. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. l. Monitor and assess resettlement outcomes, their impacts on the standards of living of affected 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.

G1.2 China’s Laws and Regulations

127. The major laws and regulations on land acquisition and resettlement in China are as follows:

a. Land Administration Law of the People’s Republic of China (effected from January 1 of 1999, revised on August 28, 2004). b. Implementation Regulations for Land Administration Law of the People’s Republic of China (Promulgated by Order No.256 of the State Council of the People’s Republic of China on December 27, 1998, and effective as of January 1, 1999); c. State Council Order No.28: On Deepening Reform and Strengthening Land Administration (effected from October 21 of 2004); and d. State Council Order No. 471 on “Land Acquisition and Resettlement Provisions for Large and Medium Scale Hydropower Project Construction”

(effected from September 1, 2006).

128. In PRC, the Land Administration Law (LA Law) constitutes the basis for land acquisition and resettlement, which stipulates the ownership and the land use rights, utilization and protection of land and the compensation costs, resettlement subsidies, and the proper measures of resettlement for those affected. According to the LA Law (article 8), land in the urban districts is state-owned while land in rural and suburban areas (house plots, farm land, hills) shall be owned by collectives of the peasantry. The collective and its members (by two-thirds majority) can re-distribute or re- allocate land (article 14) or make adjustments to arable or reclaimed land (article 31). The LA Law further stipulates (article 47) that in case land acquisition shall take place, compensation shall be made in accordance with the original usage of the acquired land, which shall include land compensation fee, resettlement subsidies and compensation fee for the attachments on the land and standing crops.

129. Decree No.28 of the State Council: On Deepening Reform and Strengthening Land Administration, further defines the compensation principle, compensation standards, procedures for land acquisition and monitoring mechanism that are related to land acquisition compensation and resettlement. It stipulates that in case the compensation of requisitioned land and resettlement compensation still cannot maintain AP’s living standard as same as before land requisition, the resettlement compensation may be increased further. The total of the compensation of requisitioned land and resettlement compensation can exceed 30 times (usually 16 times) the yearly average output value of the land in the previous three years. And more detailed requirements are made for public hearings, if necessary, organized by land resource, and for monitoring mechanism set out by local departments for payment and use of land compensation.

130. State Council Order No. 471 on “Land Acquisition and Resettlement Provisions for Large and Medium Scale Hydropower Project Construction”, provides the following provisions (i) compensation during land acquisition and assistance after land acquisition, (ii) the implementing agency of resettlement shall be the county government or higher authority, (iii) RP with assistance program after land acquisition shall be prepared and approved by the provincial government or state council, and (iv) the procedures to be followed in detailed measurement survey, distribution of land compensation, etc.

G1.3 Hunan Province’s Policies

131. The relevant policies of Hunan Province are as follows:

a. Implementation Method of Hunan Province for Land Administrative Law (effective as of March 31, 2000); b. Implementation Method of Levy of Forest and Vegetation Restoration and its Usage in Hunan Province issued jointly by Financial Department and Forest Department of Hunan Province (2003); c. Implementation Method of Provisional Regulation on Taxation of Farmland

Occupation in PRC in Hunan Province (Decree 231, November 12, 2008); d. Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province by HPG {Decree No 43(2009)} (effective as of March 1, 2010); and e. Notice of Reinforce on Resettlement of Large and Medium Reservoir {Decree No 9 (2010)} (effective as of May 1, 2010).

132. The HPG Decree No. 43 (2009): Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province, provides for the compensation standard of paddy land with five categories in each county, and compensation of other land with coefficient of 0.5-1.0 of paddy land. It enjoins the local government (city and county government) to prepare guideline for the distribution of land compensation for the purpose of most compensation being used for the APs and a certain percentage or amount of compensation shall be deposited for AP’s social insurance.

133. The HPG Decree No. 9 (2010): Notice of Reinforce on Resettlement of Large and Medium Reservoir specifies that house removal shall be compensated at replacement price. It also describes the procedure of Review on Guideline of Detailed Measurement Survey, Issuing order of stop construction, and review and approval of Outline of RP and Full RP.

G1.4 Gaps between ADB’s Policy and Chinese Policy

134. There are no great differences of resettlement between PRC and ADB policy. The outstanding gaps are (a) that tenure without formal legal title will be compensated by ADB policy for the loss of assets other than land, such as dwellings, and also for other improvements to the land, at full replacement cost, while Chinese policy does not; and (b) ADB SPS 2009 pays particular attention to households headed by women and other vulnerable groups, and appropriate assistance to help them improve their status, while Chinese policy gives assistance to those who are unable to rebuild their houses. In the project, ADB’s policy SPS 2009 will be applicable for the resettlement where the gap exists between PRC and ADB’s policy.

G2 Project Resettlement Policy

135. Policies regarding compensation and resettlement for the APs in the project are based on the harmonization of PRC laws and regulations and ADB’s SPS 2009 policy and requirements. The primary objective of the RP is to restore the income and living standards of the APs as quickly as possible and with as little disruption possible in their own economic and social environment. The RP has been prepared and will be implemented to meet this objective. Particular attention has been paid to the needs of affected poorest and vulnerable groups. Further, the need for involuntary resettlement has already been reduced by selection of dam location and protection in the reservoir area.

136. The resettlement principles adopted in the project reflect the legal and policy requirements of PRC and ADB. The principles are summarized in Table 30. The adopted principles with regard to compensation, resettlement and income restoration are flexible enough, allowing for considerable variability from village to village (e.g., between land redistribution and cash payments on the one hand, and community- based and individually organized income restoration options on the other). The key is to ensure that all APs receive adequate compensation and assistance to restore their incomes, living conditions and general livelihood in post-resettlement period.

Table 30: Resettlement Principles – Summary Principles 1 That compensation and entitlements provided to DPs are adequate to at least maintain their “without project” standard of living, with prospect of improvement.

2 The DPs without formal legal title will compensate them for the loss of assets other than land, such as dwellings, and also for other improvements to the land, at full replacement cost 3 Land redistribution will ensure per capita minimum holding in post-resettlement period to maintain livelihood standards. 4 Where land acquisition per capita is not sufficient to maintain livelihood, compensation in cash or kind for replacement land for other income-generating activities will be provided for. 5 All DPs will be adequately informed on eligibility, compensation rates and standards, livelihood and income restoration plans, project timing, and will be involved in RP implementation. 6 No land acquisition will occur until (i) compensation at full replacement cost has been paid to each displaced person for project components; (ii) other entitlements listed in the resettlement plan have been provided to displaced persons; and (iii) a comprehensive income and livelihood rehabilitation program is in place to help displaced persons improve, or at least restore, their incomes and livelihoods. 7 The EA and independent/third party will monitor compensation and resettlement implementation. 8 Vulnerable groups will receive special assistance to help ensure improve their living standards. 9 DPs should have opportunities to benefit from the project. 10 Resettlement plan should be combined with the overall county or township planning.

G3 Resettlement Standards

137. The compensation rates presented in this section have been derived from an extensive series of discussions between XNCD, HHDI and local officials at the municipal, county and township levels, as well as local farmers. The rates for permanently acquired land are based on AAOV as gathered during the socioeconomic investigations and household surveys. Compensation rates also take into account both national and provincial regulations concerning compensation. They are therefore considered to be final. Any changes will be documented and reported to ADB for concurrence.

G3.1 Compensation for Permanent Land Loss

138. Compensation for farmland consists of land compensation fee, resettlement subsidy and standing crop (if damaged) compensation. According to State Council Order No. 471 on “Land Acquisition and Resettlement Provisions for Large and Medium Scale Hydropower Project Construction, standards of land compensation and resettlement subsidies for acquisition of cultivated land shall be 16 times the average annual output value (AAOV) of the previous three years.

139. Land compensation fee: Permanent cultivated land loss will be compensated in cash to the affected villages at a rate equivalent to 10 times AAOV of the previous three years. Individuals, groups or entities with user rights on the affected plots will be compensated in terms of “land for land” mechanisms through redistribution of land within the village territory or other comparable compensation in lieu of land.

140. Resettlement subsidy: These will be paid to the individuals, groups or entities with user rights on the basis of 6 times the AAOV calculated as above.

141. As specified in HGDN 43: Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province, paddy land is divided into five categories. The compensation standards for all kinds of land are shown in Table 31.

Table 31: Compensation Standards of Land Acquisition in Hunan Province

County/ Paddy land Coefficient to Paddy Land City I II III IV V DF EF GL&O Orchard Changning 34380 30030 26873 23843 0.7 0.5 0.4 0.6 Hengnan 35569 30910 28549 26512 24842 0.7 0.55 0.4 0.7 Leiyang 38709 34188 29887 27324 24245 0.7 0.55 0.4 0.7 DF: Dry Farmland; EF: Economic Forest; GL&O: Grass Land & Other Forest Land (except economic forest); Sourced from Hunan Provincial Government (2010).

142. There are no paddy lands belonging to Category I in the project affected area. For the convenience of calculation and justification, paddy land of category II is selected for the basis of determining the compensation standards of land in this RP.

143. As specified in HPG DECREE NO: 43, the compensation standard is the sum of land compensation fee and resettlement subsidy of the land to be acquired, but the multiple of the Average Annual Output Value (AAOV) over the previous three years or the value of AAOV is not specified. In all cases, AAOV is fundamental to the calculation of compensation standards for land. Fortunately, HPG Decree No. 47 (2005): Notice of Issuing the AAOV for Land Acquisition in Hunan Province indicates that the AAOV of paddy land and dry farmland of category II in Hengnan county are CNY1,275 and CNY935 in 2005 respectively, while in Leiyang city CNY1,350 and CNY990 for paddy land and dry farmland respectively.

Table 32: Calculated AAOV of Paddy Land in Hengnan and Leiyang (CNY)

Land 2005 2006 2007 2008 2009 City/County RBP(CNY/Ton)* 1400 1440 1620 1760 1840

Hengnan Paddy Land 1275 1293 1354 1463 1585 Dry land 935 948 993 1073 1162 Leiyang Paddy Land 1350 1369 1434 1549 1678 Dry land 990 1004 1051 1136 1230 *RBP=Rice buying price.

Table 33: Compensation Standards for Land (CNY/Mu) Category City/County I II III IV V Hengnan 35569 30910 28549 26512 24842 Paddy land * Changning 34380 30030 26873 23843 Leiyang 38709 34188 29887 27324 24245 Hengnan 24898 21637 19984 18558 17389 Dry farmland Changning 24066 21021 18811 16690 Leiyang 27096 23932 20921 19127 16972 Hengnan 19563 17001 15702 14582 13663 Economic forest land Changning 17190 15015 13437 11922 Leiyang 21290 18803 16438 15028 13335 Hengnan 14228 12364 11420 10605 9937 Grass land and other Changning 13752 2012 10749 9537 forest land Leiyang 15484 13675 11955 10930 9698 Hengnan 24898 21637 19984 18558 17389 Orchard Changning 20628 18018 16124 14306 Leiyang 27096 23932 20921 19127 16972 Hengnan 4446 3864 3569 3314 3105 Other land** Changning 4298 3754 3359 2980 Leiyang 4839 4274 3736 3416 3031 * Including water pond; ** Including barren land and beach farmland.

144. In view thereof, and following discussions with officials of local government in the affected county/cities and a series of comprehensive meetings with the farmers and village heads in the affected villages, the compensation standards set forth in HPG Decree NO: 43 (2009) have been adopted in this RP.

G3.2 Compensation for Temporary Land Loss

145. According to the regulations of the State and Hunan Province on temporary land occupation, compensation shall be calculated based on AAOV of the land by multiplier of the duration of temporary occupation, i.e. one-year or two-year. If there are standing crops to be damaged on the temporary occupied land, the crops will be compensated by the contractor. In order to minimize the adverse impacts on standing crops, the construction will be normally started after crop harvest or before seeding or depending on actual condition. The standards of compensation to be adopted for temporary occupied land are as follows, CNY2,141/mu for paddy land in Hengnan county, CNY 889/mu for timbre land in Hengnan county and CNY1,641/mu for dry farmland in Changning city. The compensation for water pond of temporary occupied land will be the same as paddy land.

146. If the temporary occupied land is farmland, restoration fee shall be deposited

in land resource agency. In case the contractor fails to restore the farmland to its original conditions, the deposit will be used by land resource agency, village or APs to conduct the restoration of farmland upon APs’ willingness. The restoration cost of land will be CNY7,878/mu for paddy land, CNY5,639/mu for dry farmland and CNY4,856/mu for forest land. Details of the restoration cost are shown in Table 34.

Table 34: Calculation of the Restoration Cost of Temporary Occupied Land Paddy land Dry farmland Forest land Unit Unit Unit Unit Description Cost Cost Cost Quantity price Quantity price Quantity price (CNY) (CNY) (CNY) (CNY) (CNY) (CNY) A.Peeling and re-fill of top soil m3 200 13.34 2668 200 13.34 2668 200 13.34 2668

B. Clearing of land 200 200 200

C. Land Restoration 3609.96 1988 1988

1.Fill of base soil m3 334 9.94 3319.96 200 9.94 1988 200 9.94 1988

2.Building of Earth bandk Workday 5 58 290

D. Soil maturation for crops 620 483

1. Livestock excrement Ton 3 80 240 3 80 240

2. Fertilizer ton 0.2 500 100 0.15 500 75

3. Daywork Workday 5 56 280 3 56 168

E. Irrigation 380

1. Water channel in land m3 30 6 180

2. Restoration of irrigation system 200

F Compensation for borrowed soil CNY/mu 400 300

G Total Restoration cost CNY/mu 7878 5639 4856

147. Temporary land use will be compensated in cash directly to the APs equivalent to one time the AAOV for each year that the land is not available for cultivation. The AP will lose net income from the land during the period of temporary occupation, but the AP will receive compensation based on gross output value, so there is no loss of income. If there are standing crops, this entitlement will also be added. The entity requiring temporary land use will restore the land to its original condition after use. If the land temporarily occupied is farmland, and the contractor cannot restore it to its original conditions, the farmland reclamation cost deposited by the contractor before land occupation will be expropriated in favor of the land resource authority for farmland reclamation in other locations.

G3.3 Compensation for Houses and Structures

148. Affected residential land, houses/buildings and fixtures losses will be directly and fully compensated at replacement cost (calculated in Table 35) free of demolition expenses and salvaged materials. Compensation for residential land will be paid to the affected village which will then, in consultation with the village committee and the APs, make available replacement plots within the community at

no cost to the affected household. If this is not feasible, the township government will assume the responsibility. Houses, other buildings and attachments and related fixtures will be compensated in cash at replacement cost with monies paid directly to the APs. The compensation is based on construction costs of new houses, including labor and decoration costs. Land transfer fees and related costs, if not waived, will be compensated by the project owner.

149. Following discussions with local officials at municipal, county and township levels in the affected area, compensation for affected houses and buildings, owned by enterprises or individuals, will be paid at replacement costs. The replacement costs are calculated in Table 35 for a house with an area of 100 m2 of brick/concrete or brick/wood, the two major kinds of houses to be affected by the project. Therefore, households affected by house removal will have sufficient money to rebuild their new house after they are compensated at replacement rate. No deduction in compensation will be made for depreciation or the cost of salvaged materials.

Table 35: Calculation of Replacement Cost for Private House (100 m2)

Price Steel/Concrete Brick/Concrete Brick/Wood Wood Item Unit (CNY) Quantity Amount Quantity Amount Quantity Amount Quantity Amount (CNY) (CNY) (CNY) (CNY) A. Direct cost 638.56 595.09 523.29 476.51 1. Basic cost 600.20 560.30 492.20 447.66 Work- a. wage 58 3.33 193.14 3.46 200.68 2.86 165.88 2.4 139.20 day b. material 407.06 359.62 326.32 308.46 Steel kg 4.62 30.8 142.3 19.65 90.78 tile piece 0.12 180 21.6 150 18 cement kg 0.33 190 62.7 160 52.8 13.44 4.44 timbre m3 1500 0.02 30 0.02 30 0.11 165 0.182 273 iron pipe kg 4.2 2.2 9.24 linoleum m2 5 0.75 3.75 0.75 3.75 1.5 7.5 asphalt kg 7 2.4 16.8 2.4 16.8 glass m2 50 0.3 15 0.3 15 brick piece 0.3 190 57 230 69 234 70.2 lime kg 0.5 38 19 38 19 52 26 sand m3 72 0.31 22.32 0.26 18.72 0.15 10.8 pebble m3 65.87 0.23 15.15 0.18 11.86 nail kg 4.62 0.5 2.31 0.5 2.31 others 6.00% 23.04 20.36 18.47 17.46 2. other basic cost 3% 18.01 16.81 14.77 13.43 3. machinery cost 5% 407.06 20.35 359.62 17.98 326.32 16.32 308.46 15.42 B. Indirect cost 4.00% 25.54 23.8 20.93 19.06 C. Profit 7.00% 44.7 41.66 36.63 33.36 Unit cost 709 661 581 529

150. Therefore, compensation will be at the replacement cost of CNY 709/m2 for house of steel/concrete structure, CNY661/m2 for brick/concrete structure CNY581/m2, CNY581/m2 for of brick/wood structure and CNY529/m2 for wood structure in Hengnan county and leiyang city. Presently the identified houses to be relocated are located in Hengnan county and leiyang city. If houses removal is required in Changning city, same replacement price will be adopted as the house structure and building price is the same.

151. In addition to the compensation for houses and land, relocation allowances will be given. These relocation allowances cover resettlement/ relocation costs, including unexpected losses or expenses related to house demolition and new house construction (relocation transition allowance), and the cost of moving all household items and any salvageable materials to the new house, or from the rented house to new house (moving allowance). These allowances will be payable as a comprehensive allowance to the AP households. In most cases, affected people will construct their own houses and will live with relatives during transition. Whether the accommodation in relative’s house is free or not, allowances shall be given to the relocating APs.

152. All APs affected by house removal will receive the following allowances:

a. Leveling housing plot CNY4,000 /HH b. Moving allowance CNY600 /head c. Subsidy for water and power CNY400/HH d. Transitional subsidy CNY1,000/head e. Business loss during transition period CNY1,000/HH/Month

153. Compensation rates for attachments and scattered trees are provided in detail in Table 42 (Chapter K).

G3.4 Crops Losses

154. All APs, including tenants and APs without land use rights contracts, will directly receive full compensation in cash for their crop losses at 1 times the AAOV. However, as stated in Section G3.2 above, construction will be normally start after crop harvest or before seeding in order to minimize adverse impacts on the people. Damaged standing crops will be compensated at prevailing market rates at the time of displacement.

155. The compensation standards specified by government document of HPG {Decree No 43(2009)} include only land compensation and resettlement subsidy. The compensation for standing crops in the project will be CNY3,600 for orchard on the basis of 60 trees/mu and CNY60/tree, while one sixteenth of land compensation standard will be used for other land, except farmland 50% of 1/16. The economic forest land, timbre land and shrub land will be 100%, 40%, 30% of paddy land respectively. Details of compensation for standing crops are shown in Table 36.

Table 36: Compensation Standards for Standing Crops (CNY/mu) , Class County/ Paddy Dry Water Orchard Economic Timbre Shrub City land farmland pond forest land land land Hengnan 1112 778 1112 3600 2223 889 667 I Changning 1075 752 1075 3600 2149 860 645 Leiyang 1210 847 1210 3600 2419 968 726 Hengnan 966 676 966 3600 1932 773 580 II Changning 939 657 939 3600 1877 751 563 Leiyang 1069 748 1069 3600 2137 855 641 Hengnan 892 625 892 3600 1784 714 535 III Changning 840 588 840 3600 1680 672 504 Leiyang 934 654 934 3600 1868 747 560 Hengnan 829 580 829 3600 1657 663 497 IV Changning 745 522 745 3600 1490 596 447 Leiyang 854 598 854 3600 1708 683 512 Hengnan 777 544 777 3600 1553 521 466 V Leiyang 758 531 758 3600 1515 606 455

G3.5 Compensation for Loss of Business/Employment

156. The enterprises affected by the project are 3 small hydropower plants. The hydropower plants will suffer business loss from reduction of power generation or even loss of power generation resulting from rise in water level. Business loss will be compensated based on the economic evaluation made by a qualified agency accepted by the owner and EA.

157. Transition Allowance: The transition allowance for a commercial business moving from its old site to the new location will be calculated on the basis of total post-tax profit during the six months prior to relocation as declared by the business to the tax-collection agencies. The transitional allowance for employees' loss of

income will be equal to the total sum of earnings (including basic salaries and national subsidies) of all registered employees (including those retired) for 6 months prior to relocation. This allowance will be paid on a monthly basis for 6 months from the date of removal from the original premises.

158. Moving Allowance: The allowance for transport and re-installation of the equipment of enterprises will be determined based on the regulations stipulated by the State and the Province in calculating such transport and installation costs. An allowance equal to the actual expenditure on renting storage space will be paid for temporary storage (if any) of equipment and materials.

G3.6 Compensation of Public Facilities

159. All the public facilities affected will be replaced or paid in cash directly to its owners. If the affected facility is to be replaced, the cost will be compensated based on the price from related government agency, or if it is removed with no requirement

of replacement, compensation will be negotiated between its owner and XNCD

based on the evaluated price by a qualified accounting agency.

G3.7 Taxes and Fees

160. Other taxes to be paid by XNCD include farmland occupation tax, farmland reclamation charge and recovery fee of forest and vegetation, which will be charged based on the following:

a. Farmland occupation tax: CNY26/m2 for farmland occupation in Hengnan and Changning, and CNY28/m2 in Leiyang, and 80% of farmland occupation tax for forest land, in accordance with the requirements set forth in HPG Decree No231: the Hunan’s Implementation Methods of Provisional Regulation of Farmland Occupation Tax to be Levied in PRC;

b. Farmland reclamation charge: CNY16,000 for paddy land and CNY9,600 for dry farmland, in accordance with the related regulations in Hunan Province; and

c. Forest and vegetation restoration fee: CNY6.0/m2 for timber land and CNY3.0/m2 for shrub land in accordance with the related regulations in Hunan province.

H. ENTITLEMENTS, ASSISTANCE AND BENEFITS

161. Table 34: The entitlement matrix covers eligibility and compensation for all kinds of losses (e.g., land, housing, businesses and other income sources, temporary loss of income, displacement, and moving cost). It provides a summary of the measures, provisions and standards described in the preceding section.

H1 Cut-off Date for Eligibility to Project Entitlements

162. The cut-off date for eligibility to the Project entitlements coincides with the date when the local government issues the Stop Construction Order, following approval of the land use plan for the Project. The Stop Construction Order was issued by HPG in late January 2011 and the DMS process commenced thereafter to verify affected assets; the DMS was completed during March-July 2011. APs who cultivate land, construct buildings or settle in project affected areas after the cut-off date will not be eligible for compensation or subsidies. Compensation will also not be paid for any structures erected, or crops and trees planted purely for the purposes of gaining additional compensation.

H2 Assistance policy from the Project

163. Special attention will be paid to the vulnerable groups, defined as those already experiencing hardship (e.g. through sickness, lack of labor, aged, female headed households, etc.) or those whose loss of land/ property could lead to such hardship and risk of impoverishment, which are the major cause of poverty. For this reason support will be given to poverty households and other vulnerable households. In order to ensure that resettlement is no more difficult or inconvenient for these vulnerable groups as it is for the rest of the affected community, an assistance group in each community consisting of township and village leaders has been designated for the vulnerable groups in order to attend to their needs and provide timely assistance. A separate fund of CNY3.05 million (included in training) is allocated in the resettlement budget for the purpose. The detailed measures to be taken by the project for the vulnerable are as follows:

a. Special assistance will be provided by village and township authorities to vulnerable households in the reconstruction of their houses. Additional funds of CNY0.75million will be provided by the project, and assistance by the village leaders, or if necessary, machines and equipment by the contractor for house reconstruction;

b. Priority will be given to APs from vulnerable households for the replacement of farmland in the same quantity and quality from the reserved farmland (if any), and/or farmland redistribution. For the sub-villages of more farmland required by the project, which is difficult to restore income on agriculture by

land redistribution, an additional funds of CNY2.0 million will be provided by the project to support secondary or tertiary industry for income restoration;

c. Priority will be given to the vulnerable APs to take part in the training program of livelihood rehabilitation and to help them master the special skills for livelihood as much as possible and to remove the poverty;

d. An additional funds of CNY0.3million will be provided especially for women’s training to help them master skills for employment or self-employment.

e. Priority of employment will be given to vulnerable households in jobs, such as unskilled workers in cooking, cleaning, guardian, etc, created during project construction;

f. The local government and village committee will help vulnerable APs obtain the micro-credit loans from the Poverty Reduction Office and/or the Women’s Federation, providing help and guidance for their business operation, and avoiding investment risk as far as possible.

H3 Benefits

164. The primary benefits of the project include (a) improved electric supply for rural and urban residents, (b) lower irrigation cost for farmers in the project area, and, (c) reduced transportation costs for vessel operators in the river.

165. The secondary benefits of the project are (a) general benefits from economic development, (b) improved river embankment in some sections for flood control and environment improvement, (c) safety improvement for vessels operating in the river, (d) daily life convenience for rural residents along the river with the provision of improved landing, and (e) job creation during the construction and operation of the project.

166. Besides the above general benefits from the project, the specific benefits for the APs are from (a) integrated policy of land compensation from land resource authority and post-assistance policy from water resource authority; and (b) farmland protection program.

167. Integrated policy: the compensation standards adopted by the Project for land loss are higher than the requirement of the water resources authority. The post- assistance policy adopted in the project from the water resources authority, which is not required or normally not adopted for the project by the policy of land resource authority, will be available for the APs. In a short, APs losing land will be compensated with higher standards and are entitled to follow-up assistance for 20 years.

168. The farmlands to be raised by sub-soil fill currently experience regular

flooding almost every year. The temporarily affected farmers that have user rights over these lands with an area of about 3,300 mu (220 ha) are estimated to be 5,800 people, some of them are the APs, and will greatly benefit from this farmland protection program.

Table 37: Entitlement Matrix Type of Entitled person/ No. of entitled Compensation policy Compensation Implementation issues loss group persons Entitlement /groups Permanent a) Sub-villages a) 18 sub- Land compensation and resettlement Full compensation Village meetings to be responsible for loss of villages in the subsidies respectively*; based on replacement deciding on the allocation of funds, the collective damsite area; Replacement land and/or cash payments value for 314 sub- redistribution of land and investment in land 296 sub- based on replacement cost and/or villages and land loss income generating activities such as villages in the income restoration measures sufficient to households, the share improved cultivation techniques/ irrigation/ reservoir area; ensure maintenance of existing economic between land owning small business development/ training. 2 sub-villages and social conditions group and households in the two port Priority should be given to the villages with will be determined by Higher level authorities to approve and areas land loss if land reclamation program is villagers’ meeting. monitor village level proposals and, if b) Farmers who b) Households feasible APs are able to required to facilitate training programs use the land who lose land Priority of temporary job employment during contract reclaimed land construction for the villagers losing if it is available. cultivated land Population requiring production resettlement (1,762 persons at design year) can get post-stage support.

Temporary a) Farmers who a) to be a) Cash compensation based on AAOV for Who lose crops will Village Committee/farm owners must be loss of use the land due to identified each year land is not available receive full notified in advance and paid accordingly collective construction works during b) Reinstatement to its pre-construction compensation land b) Farmers who construction conditions according to benefit from raising b) 5,800 compensation the elevation of standard. farmland

Loss of Owner of the 63 households Cash compensation at replacement cost for Pay compensation for Sub-villages and APs to decide on location of residential building or houses with 290 all buildings owner of the new residential plots. Plots should be house persons Transition and moving allowances, house/building allocated prior to demolition of houses. New plot arrangement by subvillage or 63 households cash compensation for housing plot if APs select new plot by themselves

Loss of a) Legal owner of 2 small For the enterprises affected by permanent Full compensation . business the establishment hydropower business loss: based on evaluated establish- b) Employees plants with 390 (1) Cash compensation at replacement cost market price ments employees for permanent business loss if the

Type of Entitled person/ No. of entitled Compensation policy Compensation Implementation issues loss group persons Entitlement /groups business cannot be restored (2) Transitional allowances for salary loss of employees up to 6 months (3) Priority of temporary job employment during construction for APs, and (4) Employment information disclosure to APs

For the employess affected by wholly business loss: (1) Transitional allowances for salary loss of a transitional period of up to 6 months (2) Priority of job employment during construction and operation (3) Priority of attending the employment training program (4) Employment information disclosure to APs, and (5) Retirement and pension arrangement will be available for those APs who cannot find job in the market after the transition of 6 months

Crops Affected people All owners who Crops losses will be compensated at a rate Full payment direct pay losses loss equal to the market value of the harvested to the crop/tree owners / Trees crops/trees crops Trees will be compensated based on local standards set forth by HMG and approved by HPG

Support Vulnerable groups Affected (1) Priority to receive the replacement from vulnerable farmland in the same quantity and quality from the reserved farmland. vulnerable groups (2) Special subsidy for house groups reconstruction. (3) Priority to take part in livelihood training program

Type of Entitled person/ No. of entitled Compensation policy Compensation Implementation issues loss group persons Entitlement /groups (4) Priority in helping find jobs during project construction. (5) Micro-loans support for small business, including guidance in running their business.

* Cultivated land reclamation fee is also payable to land resource agency rather than to APs.

I. RELOCATION OF HOUSING AND SETTLEMENTS

I1 Resettlement Needs

169. The resettlement needs for the entire project can be characterized as (i) loss of 63 private houses in 4 affected villages; and (ii) Business loss of 2 small hydropower station with one located in Hengnnan county and another in Changning city.

I2 Resettlement Strategy

170. The strategy of household-based resettlement will be undertaken for private houses in two stages: (1) At the beginning of project construction, 19 households in 4 sub-villages of 3 villages will be relocated for the construction of the dam, with largest amout of 7 households in Tanggu village group, of Xintang village, Yunji town, Hengnan county. As there are only a small number of relocating households in the affected villages, the new housing sites will be selected by the affected households in the same village/sub-village to minimize disconnection with the local communities. This will also help maintain the existing social network and keep the original production as much as possible; and (2) At the late stage of project construction, no earlier than 2015, 4 households in 2 villages will be required to relocate for the construction of the ports in 2015, and 40 households in 25 villages groups of 15 villages will be inundated when the reservoir is working for water storage scheduled in 2016. The seriously affected No.3 village group, of Yajiang village, Daheshu town,Leiyang city, has only 5 households to be affected. As there are more than two years for the affected households building their new houses since the start of RP implementation, the resettlement of these private house will be carried out by the households.

I3 Relocation and Resettlement of Private Houses

171. 63 households living in their own premises are required to relocate for the project. During RP preparation, it was learned that about 90% of these households wish to be relocated in close proximity to their existing locations. Therefore, there is no need to develop relocation sites. It is anticipated that the households will be able to reconstruct their houses close to their existing houses, which are normally near their current contracted farmlands. Furthermore, evidence from other projects reveals that new houses are almost always built to standard, which is superior to the current residence.

172. Most households are willing and will build their new houses in the contracted land for the convinience of agriculture production and maintaining the existing social network In view thereof, households will receive cash compensation for both the land and the replacement cost of the buildings and structures.

173. The replacement house plots are usually selected by the following procedure. (a) In the early stages of resettlement implementation, the affected household will select a suitable site in or close to its contracted farmland. (b) Discussions and coordination will be held by local village heads and officials with other households who hold user right over the land selected by the affected household for housing plot, for land readjustment. It is quite common that the land selected as replacement housing plot belongs to different households because a household’s contracted lands are located in various places in the village. (c) The replacement housing plots are allocated to the relocating households with maximum effort given at ensuring that individual preferences are satisfied. (d) APs have the option to locate near market areas in the same village/town.

174. In cases where relocation sites are provided by the village authorities, these authorities will receive the compensation fee for the land of housing plot with householders receiving compensation for the house and buildings lost. Additionally, these households will receive the moving allowances stated in paragraph 150.

175. Compensation to affected householders will be paid following signature of individual compensation contracts in order that the construction of new houses can be well planned prior to the commencement of construction. House demolition will not commence until the new housing plot has been allotted.

176. The resident engineer of resettlement will provide the overall supervision for these tasks but the direct responsibility for ensuring the timely availability of suitable relocation sites and the allocation of these to affected householders will lie with village and sub-village heads. Householders will be responsible for the construction of their new houses.

177. Special assistance will be provided by village and township authorities to vulnerable households in the reconstruction of their houses.

I4 Relocation and Resettlement for Small Hydropower Plants

178. The overall policy is that the amount of compensation is adequate and is disbursed in a timely manner to enable the relocation and reconstruction of enterprises with minimal disruption in business operation and workers.

e. However, the two small hydropower plants cannot be restored to their original conditions due to the loss of water-head fall caused by the elevated water in the reservoir. Compensation will be determined by discussion between XNCD and the owners of the same, following evaluation by a certified public accounting agency.

f. After the project is completed, Qinren Hydropower Plant will loss about 0.3m waterhead, which will reduce 1.3million kw.h, 5,74% of annual power gerneration. The loss of power generation is equivalent to 285kw of its designed capacity. As discussed with the owner, a lump sum compensation will be paid on the basis of CNY8,000/kw, totally, CNY2.28million of compensation for Qinren Hydropower Plant.

g. When the designed reservoir works for water storage, Lijiang Hydropower Plant will suffer a complete loss of power gerneration. Its designed capacity of power generation, 276kw, will be shut-down and, on the basis of CNY8,000/kw, totally compensated by CNY2.208million. Besides the power generation, the plant also losses its functions of flood control and transportation. In order to restore its functions of flood control and transportation, the existing dam of the plant will be removed, and a new dam will be constructed. The cost of new dam reconstruction is CNY6.326million. Therefore, the total cost for the plant will be CNY8.534 million.

179. The total compensation of CNY10.81 million for the two establishments is included in the overall resettlement cost estimation (Chapter K). The compensation will be directly paid to the owner of the establishments.

180. Of the two small hydropower plants, only Lijiang plant, which was established in 1976, will be shut-down, 9 of its employees will be out of job, while the Qinren plant will keep operating, with no staff will be affected. Moreover, a transition allowance equivalent to 6 month salary of the 9 employees will be provided by the project. As all of the 9 employees working in Lijiang plant are over 50, they will be put into the retirement program and protected by secured pension system, if they cannot find job in the market after the transition of 6 months.

I5 Reconstruction of Public Infrastructure

181. Public infrastructure affected by the Project, such of irrigation, transportation, power and communication facilities, will be re-constructed prior to the demolition of the existing facilities in order to keep continuous service for the daily life and production of the local people. If the existing facilities such as village road, water channel, etc., are not required for reconstruction, reasonable compensation will be paid to their owners. During the process of restoration, if the existing facilities have to be demolished before its restoration, transitional measures will be adopted to ensure continuous service.

182. The relocation and reconstruction of infrastructure facilities will be the responsibility of the appropriate agencies, but transportation facilities, such as landing steps along the both sides of Xiangjiang River, are the responsibility of XNCD. Compensation for wells and roads built by the villager will be compensated to the village authority which will be responsible for their reconstruction.

183. The compensation and cost for the reconstruction of affected public infrastructure will be finalized following discussion between XNCD and the responsible agencies. The estimated cost for this is CNY92.1 million and is included in the overall resettlement cost estimate.

J. INCOME RESTORATION AND REHABILITATION

J1 Context

184. The overall objective of income restoration is to ensure that APs losing their means of livelihood (in this case their land) to the project are able to at least maintain their pre-project levels of income and living standards.

185. The construction of the Project will result in farmland loss of 1,801.8mu (120.1ha), affecting 38,288people who will lose a part of their income source. For these people, income restoration measures will be prepared to help them restore at least their original condition of livelihood and production prior to displacement.

J2 Analysis of Livelihood Restoration Options

186. The affected area, located in central-south Hunan Province, is economically well developed, especially in secondary and tertiary industry. The average net income per capita in rural areas is higher than that of Hunan province by 28%. The infrastructure for agriculture production is quite developed with all households having water pumps. Among a few crops grown in the area, rice is the most common. The socioeconomic survey indicates that income from agriculture contributes 28% of the total, which implies that the loss of land will have limited impacts on the income of the APs.

187. Both the village and household surveys indicate that non-agriculture activities contribute more than 2/3 of the total income of the population. Over 80% of the rural households in the project area derive the majority of their income from non-farming activities. In addition, there is not much room for expanding the area for agriculture production. Therefore, professional skills training will provide more opportunities for APs participating in non-agricultural activities and this will create new source of income. For those engaged in agriculture production, rehabilitation measures include improving soil quality and planting high value crops.

J3 Formulation of Income Restoration Strategy

188. Any income restoration strategy should reflect, to the extent possible, the preferences of the APs as to how its goals could be achieved. Formulation of an income restoration strategy is also dependent on the way the compensation monies are divided between the community and the individuals. The income restoration strategy will be flexible, democratically based, and self-administered based on the villages’ decision as required by PRC laws. The villagers will vote on how to use land compensation funds, including decision on land redistribution. The decision adopted by the village should be supported by 2/3 of those in attendance and should be approved by the township government.

189. The results of the household and village surveys indicate preference for cash compensation by individual households and land redistribution by village authorities and the local government. The income restoration strategy will result in most of the APs being able to continue farming regardless of whether or not they lose some or all of their current land. The strategy will have the following main elements:

a. Cash compensation b. Land redistribution (implemented with assistance from local ROs) c. Livelihood training d. Employment on project-related activities and e. Post assistance arrangement

J4 Income Restoration

J4.1 Cash Compensation

190. The socioeconomic survey results indicate that over 85 of interviewees showed their preference of cash compensation by the compensation standards issued by the government and land size confirmed. The payment of compensation funds to individuals will place a considerable responsibility for income restoration on APs themselves. The cash crops and service sectors in the project area have expanded rapidly in recent years due largely to the initiatives of private investment. The project construction will create more chance for this investment and it is very likely that funds will be invested in productive activities.

191. As a result of small loss of farmland (refer to Annexe 1), most affected households still have enough farmland for grain production to satisfy the needs of food consumption, but also provide extra funds for agriculture development and income source of other non-agricultural production, such as economically profitable crops, pasture breeding and other sidelines. In addition, the AP is encouraged to participate in the construction activities and business created by the project for the second and tertiary industries. In this manner, some APs with perspective view thought that there will be less adverse impacts to their livelihood but they will have an opportunity to improve their production and incomes.

192. Individuals questioned during the socio-economic survey showed a marked preference for investing in off-farm activities, e.g. small businesses, skilled migrant labor (include technical training). However the PPTA consultation also revealed that for those who are 45 years and above, they would expand agricultural, livestock production and aquaculture. Especially after the project completion, it will become easier to reform the inundated paddy land into water pond for fish production by using part of the land compensation. Additionally, some households are likely to use funds to provide their offspring with a better education indicating a more far-sighted view of the future wellbeing of their household.

J4.2 Land Redistribution and Production Rehabilitation

193. As mentioned earlier in Section D4.2 (Natural Resources), a big difference exists among the households in the project area in terms of size of their farmland. 19% of the households have less than 0.5mu, while 34% have more than 1.5mu. The big difference is the result of the change in household population due to marriage, child-birth and natural death.

194. Local government officials understand the importance of land redistribution for the APs for food production. Guidance and assistance will come from the local government to the village/sub-village in land redistribution, which is supported by more than 2/3 of the farmers within the village/sub-village. The site visits reveal that only a few villages and sub-villages have reserved farmland to support the policy of ‘land for land’ as replacement for AP’s land losses.

195. Based on the capacity analysis of villages surrounding the reservoir, most of the APs can be resettled for production within the same villages, if not the same sub- village; however, a few households may be offered farmland in a bordering village. The initial land redistribution plan proposed is that 384.28mu (25.62 ha) of farmland will be redistributed in 16sub-villages for 1,277 APs; 257.73mu (17.18 ha) for 363 APs in 13 sub-villages within the village; and 91.38mu (6.09ha) for 174 APs in 5 sub- villages from bordering villages (refer to Annex 5 for the details). This plan will be finalized during the RP implementation.

196. If land redistribution occurs in the affected village/sub-village, the land compensation (land compensation and resettlement subsidy) will be disbursed to the village/sub-village. The decision of the allocation and use of compensation will be made by the villagers on cash compensation or improvement of irrigation or development of non-agricultural business. If land is transferred from a bordering village, compensation for the transferred land will be paid to the bordering village. The Land Administrative Law has stipulated the detailed procedure for the land transfer, and the local government and involved village will take the charge of land redistribution.

197. In accordance with the related regulations, the farmland reclamation cost submitted to the provincial government can be fully returned to every affected county for land reclamation and production rehabilitation of the affected area. Also, about 70% of the forestry reclamation cost submitted to the provincial government can be returned to the affected counties for planting fruit trees or other economically profitable woods and production rehabilitation of the affected area. For this, the detailed implementation plan will be provided by every county government before land acquisition and the PMO will coordinate and supervise implementation. This will benefit farmers in the Project area, especially poor villages.

J4.3 Livelihood Training

198. A series of training programs will be provided to the economically APs by the

county government. The training activities include training on agricultural technique (including cash crops, economic trees and aquaculture) and non-agricultural skills (small business management, basic training for laborers, trade skills, informal household activities, etc.). In order to develop the economy and improve the farmer’s income, each county government will prepare the skill training plan and necessary budget. The 3 affected city or county governments have given their commitment that the APs will be given priority to participate in the training program each year and the training budget will be provided by the county government.

199. The agricultural training will be conducted by the agricultural bureau, pasture bureau, poverty reduction office, and All China Women’s Federation and local agencies. The training program, including new crop planting, new planting technique, and other agriculture-based activities, will be given by the relevant specialists from agriculture sectors. Through these interventions, the quality and quantity of crops and aqua-products will improve and the APs’ income will also improve. As for non-agricultural training activities, such as driving, maintenance and repair of vehicle, and cooking, these will be provided jointly by the Project and the relevant organizations, such as agriculture bureau, labor bureau, and women’s federation. Half of the trainees will be women.

200. The resident engineer of resettlement required by the domestic procedures will monitoring the provision of training services to eligible APs. The independent monitor will verify this. The training program provided by the local government is market-driven to best suit the needs of APs. The Labor Bureau will also be consulted so training is linked to employment opportunities.

J4.4 Job Opportunities from the Project

201. The construction of the project will create temporary construction jobs for APs located near the damsite. Farmers welcome the construction-related job opportunities as this will provide additional cash income.

202. Based on discussions with XNCD, priority will be given to the APs when recruiting Project personnel and construction workers. HPEC and contractors will liaise with local leaders to facilitate this process. Priority will be given to APs losing all or a large proportion of their land. Training will be provided for unskilled workers by contractors and by XNCD for longer-term positions. There will also be new job opportunities in the two port areas.

J4.5 Post assistance arrangement in the Project

203. In order to help improve the AP’s social condition and livelihood, the requirement of SCO (2006) No.17, “Suggestions on Improving the Post Assistance Policy for Resettlement of Large and Medium-sized Reservoir”, will be adopted for the Project. Post assistance funds will be provided by the central government from the increased fee paid by users of the country’s power grid.

204. The APs who will be assisted under this program are those affected by production land redistribution, to be confirmed during the DMS and by the village committee. The population affected by the production land redistribution will be 984 persons. See Annex 6: Land Redistribution Plan and Calculation of Population Required for Production resettlement.

205. The post support, at an annual rate of CNY600/person, will last for a period of 20 years following displacement. The support funds will be paid directly to the APs or used for a proposed project by the village authority. If land compensation is to be used by the affected village, the support fund will be given to the village authority who can disburse the funds to the APs as living subsidy or used for production development or infrastructure construction in the village.

J5 Gender Issues

206. During RP preparation, the affected women were organized to actively participate in the survey on project impacts so as they could ventilate their ideas on income restoration. As a result, women hold a positive attitude towards the project.

207. Women will fully participate in the compensation and resettlement activities through the information disclosure and village meetings. They have equal entitlements with the men in terms of compensation, employment and training, etc. In addition, the following measures will be taken to improve women’s income:

a. During project construction, XNCD will ensure that affected women will be given priority in hiring unskilled labor, including food and cleaning services. As per labor laws, women will get equal pay as the men for the same work. b. Affected female workers will participate in the technical training program to be provided by the Project in collaboration with the local government. 50% of the training positions will be reserved for women.

J6 Vulnerable Households

208. For the vulnerable groups, including elders living alone, the disabled, woman- headed households, and poor families, the Project will provide extra economic and physical assistance. Vulnerable groups will get special assistance from the Project, such as:

a. Priority to receive the replacement farmland in the same quantity and quality from the reserved farmland.

b. XNCD will provide special subsidy to them for house reconstruction. The subsidy standard will be determined based on actual need.

c. Priority to take part in livelihood training program to help them acquire and

hone special skills on livelihood.

d. Priority in helping find jobs during project construction.

e. The local government and village committee will help vulnerable APs obtain small amount of loans from the Poverty Reduction Office and/or the Women’s Federation for small business, including guidance in running their business.

K. RESETTLEMENT COST AND FINANCING PLAN

209. The costs for land acquisition and resettlement include the following items: (i) basic cost, consisting of compensation for land, crops, and trees, building/houses and structures, restoration of infrastructure, construction of protection works; (ii) cost of relevant taxes; (iii) contingency; and (iv) other related costs.

K1 Basic Costs

K1.1 Compensation for Permanent Land Acquisition

210. The total expenditure for permanent requisition of land is CNY 72.88million, of which, CNY48.91million is for farmland, CNY8.53million for water storage ponds, 5.57 million for forest land, and CNY9.87million for other land, including barren land.

Table 38: Compensation Cost of Permanent Land Acquisition

Hengnan county Changning city Leiyang City Compenst Compenst Compenst Description Subtotal Standards Amount Standards Amount Standards Amou 76 (CNY0000) (CNY) Quantity (CNY0000) (CNY) Quantity (CNY0000) (CNY) Quantity (CNY00 1 Farmland 5240 1359.68 3701 441.9 1042 186.68 PL(Class I) 382 35569 64.55 230 34380 44.36 153 38709 PL(Class II) 2457 30910 754.36 2332 30030 41.69 125 34188 PL(Class III) 1313 28549 183.17 523 26873 168.77 454 29887 112.74 PL(Class IV) 225 26512 43.1 114 23843 27324 40.63 PL(Class V) 107 24842 43.03 107 DF(Class I) 95 24898 11.09 28 24066 27.92 67 27096 DF(Class II) 128 21637 53.28 115 21021 6.2 13 23932 DF(Class III) 127 19984 4.89 10 18811 59.45 112 20921 2.44 DF(Class IV) 15 18558 1.42 3 16690 19127 6.59 DF(Class V) 7 17389 4.24 7 BL(Class I) 41 15561 0 0 15041 27.41 41 16935 BL(Class II) 24 13523 17.46 24 13138 0.65 1 14957 BL(Class III) 130 12490 16.66 21 11757 65.45 77 13076 24.28 BL(Class IV) 186 11599 159.93 186 10431 11954 BL(Class V) 3 10868 2.5 3 2 Water land 1104 188.55 574 153.42 469 20.34 WP(Class I) 295 35569 21.34 76 34380 63.74 219 38709 WP(Class II) 420 30910 108.04 334 30030 28.72 86 34188 WP(Class III) 324 28549 34.87 100 26873 60.96 164 29887 20.34 WP(Class IV) 63 26512 23.79 63 23843 27324 WP(Class V) 1 24842 0.51 1 3 OC(Class III) 17 21412 20155 8.5 17 22415 4 Forest land 988 586.21 717 239.02 272 EC(Class I) 19563 17190 21290 EC(Class II) 4 17001 2.23 4 15015 18803 EC(Class III) 15702 13437 16438 EC(Class IV) 14582 11922 15028 TL(Class I) 30 14228 17.03 24 13752 4.17 6 15484 TL(Class II) 79 12364 59.63 74 12012 4.3 5 13675 TL(Class III) 45 11420 38.12 44 10749 1.5 2 11955 TL(Class IV) 38 10605 36.27 38 9537 10930 SL(Class I) 97 14228 32.58 46 13752 36.84 51 15484 SL(Class II) 417 12364 321.79 398 12012 16.17 19 13675 SL(Class III) 268 11420 68.92 79 10749 176.04 189 11955 SL(Class IV) 10 10605 9.31 10 9537 10930 SL(Class V) 9937 0.33 9698 5 Grass land 933 1872.56 675 667.01 242 43.82 GL(Class I) 86 4446 33.08 15 4298 165.68 71 4839 GL(Class II) 280 3864 668.25 258 3754 58.24 22 4274 GL(Class III) 372 3569 579.41 207 3359 443.09 149 3736 42.65 GL(Class IV) 178 3314 534.57 177 2980 3416 1.17 GL(Class V) 18 3105 57.25 18 6 Housing plot 40 20609 7.13 15 19399 6.31 12 21575 6.27 7 Other land 8 3.69 1 19.28

BRL(Class I) 4446 4298 4839 BRL(Class II) 3864 3754 4274 BRL(Class III) 7 3569 3359 3736 19.28 BRL(Class IV) 1 3314 3.69 1 2980 3416 Totoal (CNY0000) 8331 5682 2055

*PL:paddy land, DF: dry farmland, BL: Beach land, WP: water pond, OC:orchard, EF: economic forest land, TL: Timbre land, SL: Shrub land, GL: grass land, BRL: barren land

K1.2 Compensation for Temporary Land Occupation

211. Compensation for temporary land occupation is CNY 4.44million, consisting of CNY1.78million for occupation of land, 0.32million for crops on the land and CNY2.34million for farmland restoration with details shown in Table 39: Compensation for Temporary Land Occupation. This table is only for land occupied temporarily during the construction of the barrage and ports, while the cost for temporary occupied land for protection works is included in the cost for construction of protection works which has a large quantity of land requirement. The temporary land required for farmland protection is estimated to be 1,230.9mu (82.1ha) , of which, 1,148.5mu mu (76.5 ha) will be farmland.

Table 39: Compensation for Temporary Land Occupation

Compensation Standards Quantity (mu) Amount (CNY0000) (CNY0000)

1 Temporary occupied land (TOL) 178.38 a Farmland 113.57 Paddy land 6302 179.58 113.17 Dry farmland 1641 2.42 0.40 b. Water pond 6302 17.55 11.06 c. Timbre land 2878 186.78 53.76 2 Crops on TOL 31.97 Paddy land 966 179.58 17.35 Dry farmland 752 2.42 0.19 Timbre land 773 186.78 14.44 3 Land restoration 233.54 Paddy land 7878 179.58 141.47 Dry farmland 5639 2.42 1.36 Forest land 4856 186.78 90.70 Total (CNY0000) (1+2+3) 443.89 All the TOL belong to Class II, except the dry farmland belong to Changning city, the other land belong to Hengnan county.

K1.3 House Compensation and Removal Subsidy

212. Compensation cost of house removal totals CNY11.34 million, of which, compensation for affected houses and plots is CNY9.65million (see Table 40: Compensation Cost for Rural Residential Houses), and resettlement subsidy is CNY1.69 million (see Table 41: Removal Subsidy for Rural Residential Houses).

Table 40: Compensation Cost for Rural Residential Houses

Compnst Subtotal Hengnan Changning Leiyang Standards Structure (CNY0000) (CNY) Amount Amount Amount Quantity (CNY0000) Quantity (CNY0000) Quantity (CNY0000) Steel concrete 19.16 709 45.5 3.23 167.89 11.90 56.78 4.03 Brick concrete 601.76 661 4517.57 298.61 2812.17 185.88 1774.11 117.27 Brick wood 282.85 581 1905.51 110.71 1311.63 76.21 1651.22 95.94 Earth wood 35.25 529 261.02 13.81 403.17 21.33 2.24 0.12 Simple house 25.81 100 1510.21 15.10 728.45 7.28 341.94 3.42 Total (CNY000) 964.83 8239.81 441.46 5423.31 302.61 3826.29 220.77

Table 41: Removal Subsidy for Rural Residential Houses

Standard Amount Description Unit Quantity (CNY) (CNY0000) Leveling housing plot Head 4000 290 116 Subsidy for water and power HH 400 63 2.52 Moving allowance Head 600 290 17.4

Transitional subsidy Head 1000 290 29 Business loss during HH 4000 11 4.4 transitional period Total (CNY0000) 169.32

K1.4 Compensation for House Facilities and Attached Trees

213. Compensation for house facilities and attached trees is CNY1.00million of which CNY0.88million is for house facilities and CNY0.12million for attached trees

scattered around the buildings.

Table 42: Compensation for House Facilities and Attached Trees

Unit Hengnan Changning Leiyang

Description Price Amount Amount Amount Sub Unit (CNY0000 (CNY0000 (CNY0000 (CNY (CNY) Quantity ) Quantity ) Quantity ) A. Attachments 48.03 34.84 5.44 1.Enclosure wall m2 20 137.62 0.28 605.57 1.21 106.67 0.21 2. Sunning plot m2 25 4406.43 11.02 1695.86 4.24 27.75 0.07 3. Well Ea 2000 15 3.00 4 0.80 4 Telephone HH 200 4 0.08 3 0.06 5 Out-door antenna HH 200 3 0.06 3 0.06 1 0.02 6、Air-conditoner ea 200 1 0.02 7 Barn Ea 1500 4 0.60 2 0.30 1 0.15 8 Area of stove m2 100 3.24 0.03 1.77 0.02 4.97 0.05 9 No of Stove Ea 300 29 0.87 5 0.15 8 0.24 10 Water pool m3 120 38.18 0.46 1301.08 15.61 2.55 0.03 11 Excrement pool ea 1200 5 0.60 15 1.80 33 3.96 12 Cable TV ea 200 2 0.04 10 0.20 13 Biogas pool 3000 3 0.90 14 Tomb

With stele 1200 168 20.16 28 3.36 Without stele 500 217 10.85 127 6.35 9 0.45 B. Scattered fruit tree 10.8 0.88 0.12 1. Citrus tree ① Adult tree 60 93 0.56 50 0.30 3 0.02 ② young tree 15 568 0.85 1 0.00 7 0.01 2. other fruit tree ①Adult tree 40 610 2.44 4 0.02 4 0.02 ②young tree 10 780 0.78 100 0.10 6 0.01 3. Economic tree ①Adult tree 60 351 2.11 1 0.01 ②young tree 15 90 0.14 2 0.00 4. timber tree ①Adult tree 25 1435 3.59 141 0.35 17 0.04 ② Young tree 10 333 0.33 100 0.10 24 0.02

Total (CNY0000) 58.83 35.72 5.56 10

K1.5 Restoration/Compensation of Public Infrastructure

214. The restoration of public infrastructure will be carried out by the concerned government agencies, such as transportation, water resource (including irrigation system), power and communication, etc. Compensation rates for affected infrastructure facilities, presented in Table 43: Overall Resettlement Cost Estimate, were obtained from related governmental offices under whose responsibility the same falls.

Table 43: Cost of Agriculture and Small Irrigation Facilities Unit Hengnan Changning Leiyang Description unit Price Amount Amount Amount Subtotal (CNY) Quantity (CNY0000) Quantity (CNY0000) Quantity (CNY0000) (CNY0000) A. Agriculture facilities 205.28 133.33 11.9 350.51 1 Sand dredging yard 46 166.89 44 111.078 6 8.5 286.47 Class I ea 10000 7 7 6 6 1 1 14 Class II ea 15000 17 25.5 18 27 5 7.5 60 Class III ea 30000 11 33 16 48 81 Class IV ea 40000 7 28 4 16 44 ea Class V 50000 4 20 20 Foor of concrete 100 5338.8 53.39 1407.8 14.08 67.47 2 Sand ea stockpile 3000 3 0.9 1 0.3 1.2 3 3 Water pool m 120 74 0.89 125.28 1.5 2.39 4 Well ea 3000 92 27.6 38 11.4 8 2.4 41.4 5 Siphon pipe m 214 2 67.5 1 3 6 Sand ea washing pool 20000 3 6 2 4 10 ea 7 Pumping well 5000 1 0.5 6 3 3.5 ea 8 Monument 5000 1 0.5 1 0.5 1 B. Village-owned Small Irrigation facilities 943.51 452.78 46.17 1442.46 1 Fixed pumping location kW 1000 2910 291 1484 148.4 320 32 471.40 2 Temporary pumping location ea 500 9 0.45 27 1.35 8 0.40 2.20 3 Irrigation channel km 50000 17.367 86.84 1.533 7.67 0.16 0.82 95.30 4 Culvert 346.38 210.17 583.89 With gate ea 4000 17 6.80 24 9.60 16.40 Φ0.5m m 754 617.2 46.54 699.3 52.73 99.47 Φ0.8m m 1030 792.4 81.62 151 15.55 97.17 Φ1.25m m 1600 1108.6 177.38 230.8 36.93 214.30

Φ1.8m m 2768 123 34.05 344.5 95.36 129.40 5 Drainage culvert m 754 360 27.14 27.14 6 Water retaining wall m3 198 11053.05 218.85 2931.95 58.05 654.12 12.95 289.85 Total (CNY0000) 1095.40 570.48 58.07 1793.15

215. Compensation costs for small hydropower plants will be estimated on a case- by-case basis in discussion with the owners. The cost for the 3 hydropower plants is initially presently estimated at CNY10.81million, which is included under item in category 5 (Rehabilitation/Compensation of Public Infrastructure) in Table 44.

Table 44: Restoration Cost of Public Facilities and Infrastructure Hengnan Changning Leiyang Subtotal (CNY0000) A. Agriculture facilities 205.28 133.33 11.90 350.51

B. Village-owned Small Irrigation 943.72 452.78 46.15 1442.64 C. Transportation facilities 1729.99 992.81 589.75 3312.55 D. Power Supply Facilities 91.73 29.61 3.20 124.54 E. Tele-communication line 29.21 72.92 9.83 111.96

F. Large Irrigation facilities 4050.31 478.75 4529.06

Total (CNY0000) 7050.24 2160.20 660.83 9871.26

K1.6 Cost of Construction of Protection Works

216. Protection works, include protection of farmland, and bank protection. The cost for construction of the protection works is CNY204.79million shown in Table 47.

K1.7 Clearing Cost of Reservoir Bottom

217. The clearing of reservoir area includes building clearance, sanitary clearance, and forest clearance. Based on a unit rate of CNY2,040/mu, the cost of clearing the reservoir is estimated at CNY729,000 and is included in Table 47: Overall Resettlement Cost Estimation.

K2 Taxes and Fees

218. The taxes and fees, totaling CNY74.65million, to be paid by the project include:

a. Farmland occupation tax: CNY2/m2 for farmland, and forest land;

b. Farmland reclamation fee: CNY16,000/mu for paddy land and CNY9,600/mu for dry farmland in accordance with the related regulations in Hunan province

c. Forest and vegetation restoration fee: CNY6.0/m2 for timber land and CNY3.0/m2 for shrub land in accordance with the related regulations in Hunan province.

Table 45: Taxes and Fees to be Paid by the Project

Standards Description Unit Quantity Amount (CNY/m2)

1. Farmland occupation tax (subtotal) 4245733 Paddy land m2 2 997600 1995200 2 Dry farmland m 2 118347 236693 2 Beach land m 2 209560 419120 2 Water pond m 2 241540 483080 2 Orchard m 2 5667 11333 2 Forest land m 2 550153 1100307 2 Farmland reclamation fee 16034120 Paddy land mu 10000 1496.9 14969000 Dry farmland mu 6000 177.52 1065120 3 Forest and vegetation restoration fee(subtotal) 1976960 2 Economic forest land m 6 1487 8920 2 Timbre land m 6 107347 644080 2 Shrub land m 3 441320 1323960 Total 22256813

K3 Contingency

219. Contingency includes physical contingency and price contingency. The physical contingency refers to the cost induced by the unexpected design change during the implementation of the Project, and the price contingency refers to the cost increase resulting from price inflation between the RP preparation and implementation or other unexpected changes during implementation. The contingency is estimated at 12% of the basic cost.

K4 Other Costs

220. Other costs, totaling CNY48.14million (Table 46: List of Other Cost Items), include RP preparation cost, survey and design, overhead cost for RP implementation, setting-up of IA’s resettlement office, technical training, and consultant service.

Table 46: List of Other Cost Items Amount Item Rate (CNY0000) 1.Preparation cost 2.5% of basic cost 1010.86 2.Survey and design 3% of basic cost 1213.04 3.Overhead cost 3% of basic cost 1213.04 4. IAs organization expenses Provisional lump sum 300.00 5 Technical training 3% of direct compensation to farmers, ie. Costs from K1.1-K1.4 286.97 6 Consultant service * 1% of basic cost 485.21 7 Vulnerable support fund 305.00 Total 4814.12 * Incl: External M&E cost.

K5 Overall Resettlement Cost

221. The total cost listed in Table 47: Overall Resettlement Cost Estimation is estimated to be around CNY512.72 million at current prices. Nearly 15% of this cost relates to compensation for the acquisition of land, including crops and trees, 1% to the costs for acquiring property, other structures and transition/ moving allowances, 16% to rehabilitation of public infrastructure, and 35% to construction of protection works, which is the largest proportion of total cost.

222. During the implementation of the RP, the Project Management Office, XNCD will include the annual requirement of funds in the annual investment plan of the Project. XNCD is responsible for provision of adequate funds to contracted party, presently Hengyang Municipal Resettlement Bureau, for the implementation of the RP in a timely fashion. Cost over-runs for resettlement, if any, will be borne by NXCD.

Table 47: Overall Resettlement Cost Estimation( in million CNY)

Description Amount

Compensation for Permanent Land Acquisition 83.31 Compensation for Temporary Land Occupation 4.44 House Compensation and Removal Subsidy 11.34 Compensation for House Facilities and Attached Trees 1.00 1. Basic cost Rehabilitation/Compensation of Public Infrastructure 98.71 Cost of Construction of Protection Works 204.79 Clearance Cost of Reservoir Bottom 0.73 Subtotal 404.35 2 Taxes and Fees 22.26 3 Other Costs 48.14 4 Contingency 37.98 Total 512.72

K6 Flow of Funds and Compensation Options

223. The basic principle is that compensation funds are disbursed to organizations and individuals who will take responsibility for the reinstatement of the facilities and or the restoration of their incomes. In accordance with the compensation policies and rates given above, XNCD will sign compensation agreements with Hengyang Municipal Resettlement (HYRB) Bureau based on the quantity of project impacts confirmed by the local governments. The HYRB will sign agreements with County/City Resettlement Office (CRO) of the local governments. The CRO, which is the implementation agency of local government, will then sign agreement with local land bureau, supporting units, enterprises and public infrastructure agencies detailing the compensation payments to be made. Payment of funds will be made in accordance with: (i) these agreements, and (ii) the schedule specified in these agreements.

224. Agencies responsible for reinstating public utilities will receive the compensation directly as will households, businesses and public organizations losing property. Compensation for crops is payable to the farmer and forest bureau for designated forestland. All transitional and moving allowances and compensation for temporary land loss will be directly paid to those affected. Land reclamation fees for cultivated land are payable to the government agency responsible for land development.

225. Land compensation fees and resettlement subsidies for cultivated land are initially paid to the village collective/sub-villages. The legislation provides substantial flexibility in ways the sub-villages can use compensation monies. Essentially, they can either use the compensation to generate additional economic activity (agricultural or non-agricultural) in the village, improve public facilities or

infrastructure, initiate training courses, or transfer payments directly to those affected. The legislation defines the village meeting as the organization responsible for making these decisions, based on two-thirds of vote. The decisions are then subject to approval of township authorities.

226. Disbursement of Land Compensation Fees: Where land redistribution occurs, these fees will be used by the sub-villages/ village committee for the purpose of developing productive capacity and rehabilitating the economic level of affected persons, including the host farmers losing land as a result of the reallocation procedure. Where there is no land redistribution or collective investment, the land compensation fee is paid to the farmers losing land to the project.

227. Disbursement of Resettlement Subsidies: These are paid to the agency that is responsible for resettling the affected agricultural population, almost always the Village Committees and sub-villages. The onus is then on these organizations to provide appropriate income restoration measures for the AP households. If no such measures are provided, or the AP household prefers to look after themselves, the resettlement subsidy will be paid directly to that household, and there will be no requirement for a collective-based income restoration strategy. However, individual households should be able to demonstrate that they have a plan and the means to utilize the subsidy for income restoration. Seriously affected households will be included in the sample of households to be surveyed when evaluating the success of resettlement.

228. Figure 5 provides a simplified description of the overall process.

Fig 5: Flow of Funds for Compensation

XNCD

Hunan/Henyang Resettlement Bureau

City and County Resettlement Office/ Land Administration Bureau

Private and Infrastructure Forestry AP households public Sub-villages agencies Bureau establishments Loss of property Loss of land and Loss of Loss of land and allowances. Loss of buildings + cables, (compensation fee Temporary land forest land allowances pipelines, etc and subsidies) losses

AP households Sub-villages * Labour Bureau/ township governments Cash compensation Development of Training programs and other agricultural and non- income restoration measures agricultural activity

L. INSTITUTIONAL ARRANGEMENT

L1 Resettlement Organization

L1.1 Executing Agency

229. The HPDOT, on behalf of the Hunan Provincial Government (HPG), is responsible for the general administration of the project implementation. The Foreign Capital Promotion Project Office under the HPDOT is responsible for coordination with the related agencies including communication with the ADB. The Hunan Xiangjiang Navigation and Hydropower Construction and Development Co. (XNCD) is responsible for project implementation.

230. The Reservoir Office in XNCD is responsible for land acquisition and resettlement and for coordination with resettlement agencies of local governments.

L1.2 Implementation Agency

231. In accordance with the requirements set forth in State Council Order 471, the implementation of RP for large and medium reservoir will be the responsibility of the county government or higher level. After RP’s approval by the Hunan Provincial Government, agreement for the implementation of the RP will be signed between XNCD and Hengyang Municipal Government, whose implementation agency is the Hengyang Municipal Resettlement Bureau (HYRB). In turn, HYRB will sign an agreement with the three related county/city governments for the implementation of resettlement. The CRO will be in charge of the implementation of the RP and the execution and coordination of land acquisition and resettlement on behalf of the county/city government. The CRO, headed by a government staff, will be set up within the county resettlement bureau, with 5-8 members from different government departments, like transportation, land administration, agriculture, environment protection, and forestry bureau. Each affected township/town will have a Township/Town Resettlement Office with members coming from sectors of resettlement, agriculture, land, etc. The Township/Town Resettlement Office is responsible for all resettlement-related work and will carry out economic rehabilitation plan together with the township government and village committee.

232. Currently the CROs have been set up to conduct the preparation and coordination tasks for the Project and to hold various meetings on various aspects of the Project. The organizational set-up is provided in Figure 6.

L2 Accountability

L2.1 Role of XNCD

233. The Reservoir Office within XNCD will have the following responsibilities:

a. To conduct DMS survey and prepare RP and its application for approval; b. To sign resettlement agreements with Hengyang Municipal Government; c. To make payment of resettlement funds on a yearly basis; d. To investigate and study the resettlements assignment, and consult the comments from affect agencies and individuals, deal with various grievance and appeal, and make a earliest responses; e. To supervise and inspect the payments and utilization of resettlement fund; f. To carry out internal monitoring activities, prepare progress reports and resettlement completion report to ADB; and g. To select the external monitoring agency and coordinate the activities of external monitoring.

Fig 6: Project Resettlement Organization Chart

Hunan Resettlement HPDT Bureau

Hengyang XNCD Resettlement Bureau

E&M Agency Reservoir Office of XNCD

Hengnan CRO Changning CRO Leiyang CRO

7 TROs 5 TROs 2 TROs

52 village 8 village 42 village committee committee committee

L2.2 Responsibility of Hunan Resettlement Bureau

234. The Hunan Resettlement Bureau (HNRB) is primarily responsible for RP’s approval and the supervision of RP’s implementation. Principal tasks of the HNRB include:

a. Review and approval of DMS method, b. Review and approval of outline of RP, c. Review and approval of RP, d. Inspect and supervise the implementation of RP,

e. Inspect and supervise the payment and use of resettlement funds, and f. Redress grievances related to any aspect of land acquisition and resettlement

L2.3 Responsibility of Hengyang Resettlement Bureau (HYRB)

235. HYRB will implement the RP on behalf of Hengyang Municipal Government. The major tasks of the HYRB are follows:

a. Review and comments on outline of RP, b. Review and comments on RP, c. Sign agreement with County/City governments, d. Inspect and supervise the implementation activities of RP e. Inspect and supervise the payment and use of resettlement funds, f. Deal with the appeal related with the resettlement, and g. Carry out internal monitoring activities, and prepare progress reports to XNCD and Hunan Resettlement Bureau.

L2.4 Responsibility of County/City Resettlement Office (CRO)

236. The principal tasks of the CRO include:

a. Assisting in DI to define the project affected area and to survey on the project impacts; b. Assisting in the preparation of RP and responsible for the implementation of the RP; c. Selecting the key staff for professional training; d. Organizing public consultation for the resettlement policies; e. Signing land acquisition and resettlement agreements with affected enterprises; f. Making instruction, coordinate and supervision on the resettlement activities and progress conducted by relevant departments; g. Payment of compensation to affected enterprises and TROs; h. Supervision and inspection of the payment and utilization of resettlement fund; i. Monitoring execution of RP in township and villages; j. Conduct internal monitoring activities, prepare internal monitoring reports and submit regular reports to XNCD and Hengyang Resettlement Bureau; and k. Assist in external monitoring activities.

L2.5 Responsibility of Township Resettlement Office

237. Township Resettlement Offices (TRO), headed by the town/township leader with staff from land, water resource, agriculture, and the police, has the following responsibilities:

a. Participating in project survey and assisting in the preparation of RP; b. Organizing public consultation for the resettlement policies; c. Making implementation, inspection, record and supervision on all resettlement

activities within its jurisdiction; d. Responsible for the payment of land compensation and housing to the affected villages and households; e. Making supervision on the land acquisition, structure demolition and its reconstruction; f. Providing assistance to those who are unable to build their houses; g. Periodically reporting on the activities and progress of land acquisition and resettlement; and h. Coordinating and documenting the resolution of any disputes and problems arising from project implementation.

L2.6 Responsibility of Village Committee

238. Village Administration Committee and Villagers’ Groups have the following responsibilities:

a. Participate in socio-economic surveys and project impact surveys; b. Hold properly constituted meetings to decide on land redistribution and the allocation of compensation between the community and individual APs and how to use compensation not handed directly over to APs; c. Select resettlement sites and housing plot for affected households and undertake land redistribution; d. Organize the resettlement activities for agricultural and non-agricultural production; e. Address grievance issues; and f. Provide necessary assistance to the vulnerable households.

L3 Staffing and Capacity Building

L3.1 Staffing

239. To ensure the effective implementation of the resettlement plan, all resettlement organizations will be equipped with special working staff to form an efficient information exchange network. The resettlement agencies at all levels above the TRO will consist of managerial and technical staff, with 4–8 persons who have good professional quality and rich management experiences in land acquisition, house demolition and resettlement.

Table 48: Staffing for Implementing the Resettlement Plan Institution Name Persons Staff Structure Reservoir Office in XNCD 5 persons Formal employees Hunan RO 6-8 persons Governmental employees County ROs (3) 5-8 persons Governmental employees Township ROs (14) 4 – 6 persons Township governments and concerned staffs Village committees and groups 3 persons Village/group heads and AP representatives External monitoring agency 4 persons Resettlement specialists

L3.2 Capacity Building

240. The 5 staff members in the Reservoir Office of XNCD, as well as the staff in HRB, have rich experience in land acquisition and resettlement, as they worked for one or two similar projects financed by the World Bank. The three CROs have experience in the successful construction of a similar project upstream of same river. Therefore, they are capable to handle land acquisition and resettlement.

241. In order to improve the capacity of implementing the RP, staff training program was developed and carried out for those engaged in resettlement activities. The training program by XNCD includes special lectures, technical training seminars, and site training on similar projects in China. The participants will be trained on (i) ADB’s safeguards requirements, (ii) resettlement progress management, (iii) resettlement financial management, (iv) information system management, and (v) resettlement monitoring mechanism and assessment. The training program is shown in Table 49.

Table 49: Schedule for Resettlement Implementation Training Time Location Method Participants Contents Resettlement working Nov 2010 Hengyang City Lecture Professional training for resettlement works staff May 2011 Domestic Inspection CRO’s key personnel Visit similar ADB-financed projects Resettlement working Seminar on experiences and pending Sep 2011 Hengyang City Workshop staff problems relating to resettlement

L3.3 Measures for Improving Implementation

242. A variety of measures will be taken to support capacity building and ensure effective implementation of the RP. These include:

a. Vertical linking agencies will set up a reporting system, to report once a month. b. Horizontal linking agencies will hold quarterly coordinating meetings to enhance information exchange. c. Issues put forward by the APs will be reported and disseminated through the resettlement offices at each level. d. Issues which occur during construction will be reported by the resident engineer, first to his/her organizational level and then, if necessary, upwards through each of the hierarchical levels. e. Issues of the APs and contractors will be forwarded to the Village Committee, local construction coordination groups at township and county levels, and, if serious, also to XNCD and to HNRB.

M. IMPLEMENTATION SCHEDULE

M1 Principles of Resettlement Implementation

243. Based on the project construction schedule, construction activities will commence in December 2012 and will be completed in December 2016. The resettlement schedule will be consistent with the construction activities. The major works of demolition and relocation for the dam-site area will start in Septmber 2012 and will be completed by December 2012. The principles for progress arrangement are:

a. Adequate time will be given to APs to remove their assets before land acquisition and house demolition are carried out.

b. Prior to the commencement of construction activities, land acquisition and house demolition should first be completed. The starting time for land acquisition shall be determined according to the actual work needed for land acquisition and resettlement.

c. Prior to the start of construction, the range of land acquisition will be announced, RIB will be distributed, and public participation will be arranged.

d. All kinds of compensation will be paid to the property owners in full amount within three months after the date of signing of the compensation agreement. No entities or individuals will be allowed to utilize such compensation on behalf of the APs. No interception or misappropriation of such funds for any cause will be allowed.

M2 Implementation Schedule of Resettlement

244. The indicative schedule for RP preparation and implementation is shown below.

Table 50: Resettlement Implementation Schedule

SL. Resettlement Activities Timing Progress Status 1 RP Preparation 1.1 Establish resettlement office August 2010 completed 1.2 Contract Designer for RP preparation May 2009 completed 1.3 Detailed socio-economic survey Mar-July 2011 completed 1.4 RP preparation July-Aug 2012 on-going 2 Information Disclosure & Public Participation 2.1 Initial survey of project impacts July-Sept 2009 completed

SL. Resettlement Activities Timing Progress Status 2.2 Key policies of resettlement March 2010 completed 2.3 DMS survey Mar-July 2011 completed 2.4 Consultation with relevant depts. & APs Aug 2011-April 2012 completed 2.5 Disclosure of outline of RP August 2011 completed 2.6 Issuing RIB to APs May 2012 completed 2.7 Disclosure draft RP April 2012 completed 2.8 Disclosure of updated RP September 2011 to be completed 3 RP Approval 3.1 Approval by HNRB July 2012 completed 3.2 Approval by ADB September 2012 to be completed 4 Procedures for Construction Land 4.1 Pre-examination of Land Nov 2011 completed 4.2 Final approval of land use Dec 2012 to be completed 5 Implementation Stage Signing land acquisition, resettlement agreements, payment of funds Sept 2012 to be completed House removal and its reconstruction Sept 2012 to be completed Income restoration measures Dec 2012-Dec 2013 to be completed Technical training for APs Mar –Dec 2013 to be completed 6 Monitoring & Evaluation 6.1 Baseline investigation Nov 2011 completed 6.2 Internal Monitoring Sept 2012 – Dec 2015 to be completed 6.3 External Monitoring and Evaluation Sept 2012 – March 2017 to be completed 7 Civil Works 7.1 Dam and ship-lock construction Dec 2012 7.2 Construction of two ports Sept 2015 7.3 Farmland protection works Nov 2014- Dec 2015 7.4 Reservoir filling Oct 2016 7.5 Transmission line construction Nov 2016

N. MONITORING AND REPORTING

245. In order to ensure smooth implementation of the RP and to fulfill its objectives, regular monitoring and evaluation (M&E) will be undertaken in accordance with domestic policies and ADB’s Safeguard Policy Statement. The M&E includes internal monitoring and external M&E.

N1 Internal Monitoring

246. Internal M&E will be conducted by XNCD to ensure that all TRO and CROs follow the principles and timetable set forth in the agreed RP. The specific objectives of M&E are to: (i) check the achievement of milestones in land acquisition and resettlement process, including preparatory phases, against the planned time schedule and budget; (ii) ensure that the channels of communication and consultation between the administrators and affected persons have been established and operationalized; (iii) ensure that compensation payments due to affected persons are paid in full and in a timely manner; (iv) verify that the processing of grievances has taken place within the set time limits; and (v) closely watch the adherence to lawful, approved allocation of acquisition and resettlement money so as to ensure the absence of corruption, and (vi) follow-up problems and mitigation measures.

247. The main contents of the internal M&E report are as follows:

a. Allocation, payment and use of the compensation fund b. Arrangement of transitional houses for house removal c. Selection of new housing plot d. Reconstruction of new houses for APs e. Provision of assistance to vulnerable groups f. Arrangement of job opportunities and assistance of living and production for APs g. Land readjustment and redistribution for APs h. Compensation and rehabilitation of public facilities and affected enterprises

248. The semi-annual internal monitoring report will be prepared and submitted to ADB during the period of resettlement implementation with suggestion to issues, if any, found during RP implementation. A resettlement completion report is to be prepared and submitted to ADB within three months after land acquisition and resettlement activities have been completed. Lessons learned from the RP’s implementation will be included in the completion report.

N2 External Monitoring and Evaluation

249. External M&E will be undertaken by an external agency which is independent

of the IA (XNCD) and the ROs of the local governments. A university, institute or non- government organization will be contracted by XNCD to carry out external monitoring and evaluation of RP implementation. The selection of external monitor is subject to ADB’s concurrence.

250. The major tasks of external M&E consist of (i) the progress of land acquisition, house demolition and reconstruction, and temporary occupied land; (ii) adequacy of compensation rates, (iii) allocation of new housing plots and progress of house construction, (iv restoration of village infrastructure (wells, roads, etc.), (v) funds mobilization and utilization; (vi) the living standards of affected of people; (vii) determine whether APs are able to benefit from the project; (viii) forest restoration program implementation, and (ix) the capacity of resettlement institutions to implement smoothly, including public participation, complaints and grievance handling.

251. The external monitor will prepare and submit monitoring reports semi-annually to ADB and XNCD during the period of resettlement implementation. Thereafter, annual socioeconomic investigations and evaluation reports will be prepared for 2 consecutive years to see if the affected people’s livelihoods have been adequately restored.

252. The details of the objective, major task, monitoring methodology, and reporting requirements for external monitoring are described in Annex 5: Draft Terms of Reference (TOR) for the external monitoring.

Annex 1: Farmland Impact Analysis of Affected Villages

Basic info Farmland loss (mu) Farm land per City/ Town/ Farmland Village Total capita County Township Rural Paddy Dry Farm land Paddy Dry loss (%) farmland Subtotal after Popu land farmland per capita land farmland (mu) land loss 1 Leiyang Daheshu Aiqun 1454 1369.00 276.00 1645.00 1.13 13.53 2.15 15.68 1.0% 1.12 2 Qunle 1910 1356.00 1356.00 0.71 17.77 0 17.77 1.3% 0.70 3 Yajiang 2275 1240.10 0.90 1241.00 0.55 14.18 0.29 14.47 1.2% 0.54 4 Xinhua 2123 1638.00 527.00 2165.00 1.02 17.26 0 17.26 0.8% 1.01 5 Ronggong 1641 1376.50 1376.50 0.84 30.08 0 30.08 2.2% 0.82 6 Lutian 2531 1599.00 1599.00 0.63 19.92 0 19.92 1.2% 0.62 7 Tanxia Qujia 1458 1321.00 154.00 1475.00 1.01 0.476.59 7.06 0.5% 1.01 8 Wanyang 1684 1251.00 112.00 1363.00 0.81 9.07 0 9.07 0.7% 0.80 9 Shiden 2791 2069.00 466.00 2535.00 0.91 30.45 0 30.45 1.2% 0.90 10 Xinjian 2187 1637.00 256.00 1893.00 0.87 0.64 0 0.64 0.0% 0.87 11 Changning Yanzhou xinlong 1133 1222.65 18.35 1241.00 1.10 21.29 18.35 39.64 3.2% 1.06 12 Qinren 842 669.69 2.31 672.00 0.80 02.31 2.31 0.3% 0.80 13 Jiangshui 632 567.31 1.69 569.00 0.90 12.09 1.69 13.78 2.4% 0.88 14 Xiangxin 1246 882.00 131.00 1013.00 0.81 2.050.4 2.45 0.2% 0.81 15 Xiangqun 1288 498.00 39.00 537.00 0.42 2.33.9 6.2 1.2% 0.41 16 Mashi 1160 1247.16 3.84 1251.00 1.08 4.143.84 7.98 0.6% 1.07 17 Shuikoushan Sucai 562 4.21 351.79 356.00 0.63 4.2118.12 22.33 6.3% 0.59 18 Qingnian 1257 1185.25 6.75 1192.00 0.95 36.15 6.75 42.9 3.6% 0.91 19 Songyang 252 480.60 269.00 749.60 2.97 03.05 3.05 0.4% 2.96 20 Jianghe Yitan 1253 620.00 186.00 806.00 0.64 00 0 0.0% 0.64 21 Xiangjiang 1233 484.00 13.00 497.00 0.40 1.95 0 1.95 0.4% 0.40 22 Songbei Zhupo 1963 1733.65 38.00 1771.65 0.90 0.95 0 0.95 0.1% 0.90 23 Zishan 859 925.19 54.50 979.69 1.14 16.92 0 16.92 1.7% 1.12 24 Tianqin 775 622.00 46.00 668.00 0.86 00.46 0.46 0.1% 0.86 25 Xintong 1194 1102.16 56.00 1158.16 0.97 13.73 0 13.73 1.2% 0.96

Basic info Farmland loss (mu) Farm land per City/ Town/ Farmland Village Total capita County Township Rural Paddy Dry Farm land Paddy Dry loss (%) farmland Subtotal after Popu land farmland per capita land farmland (mu) land loss 26 Yanxing 893 943.36 2.00 945.36 1.06 14.49 0 14.49 1.5% 1.04 27 qingshui 847 838.00 30.00 868.00 1.02 0.044.57 4.61 0.5% 1.02 28 Shuanlin 890 580.00 20.00 600.00 0.67 4.4 0 4.4 0.7% 0.67 29 Dushi 775 622.00 46.00 668.00 0.86 0.341.06 1.4 0.2% 0.86 30 Dayu 1688 1241.55 0.10 1241.65 0.74 7.650.1 7.75 0.6% 0.73 31 Shuanfa 1380 857.52 6.68 864.20 0.63 22.37 6.68 29.05 3.4% 0.61 32 Beifang Lujin 900 755.00 61.00 816.00 0.91 0 1.18 1.18 0.1% 0.91 33 Daping 1059 721.00 20.00 741.00 0.70 14.82 0.2 15.02 2.0% 0.69 34 Xiaohe 1121 995.00 5.00 1000.00 0.89 1.75 0.55 2.3 0.2% 0.89 35 Datong 713 624.00 29.00 653.00 0.92 033 0.5% 0.91 36 Liyu 844 762.00 53.00 815.00 0.97 5.19 0 5.19 0.6% 0.96 37 Wansong 710 681.00 41.00 722.00 1.02 30.28 0.95 31.23 4.3% 0.97 38 Wanxin 638 495.60 41.50 537.10 0.84 5.55 0 5.55 1.0% 0.83 39 tongmu 668 650.00 37.00 687.00 1.03 8.020.46 8.48 1.2% 1.02 40 Yan'e 1003 765.00 57.00 822.00 0.82 3.32 0 3.32 0.4% 0.82 41 Daxin 1248 980.00 34.00 1014.00 0.81 3.530.2 3.73 0.4% 0.81 42 Beifang 2237 868.00 204.60 1072.60 0.48 14.96 6.1 21.06 2.0% 0.47 43 Sucai 741 581.00 58.00 639.00 0.86 00 0 0.0% 0.86 44 Shuanbei 1025 451.80 251.50 703.30 0.69 03.03 3.03 0.4% 0.68 45 Dongbei 1716 722.38 6.62 729.00 0.42 2.336.62 8.95 1.2% 0.42 46 Hengnan Yunji Binghe 1274 1004.25 132.15 1136.40 0.89 270.58 14.51 285.09 25.1% 0.67 47 Gaobao 1355 1044.40 305.60 1350.00 1.00 500 50 3.7% 0.96 48 Shitang 1006 777.60 198.40 976.00 0.97 60.86 1.21 62.07 6.4% 0.91 49 Xiaobeizu 1073 1120.00 170.00 1290.00 1.20 0.48 0 0.48 0.0% 1.20 50 Liping 1281 1098.00 1490.00 2588.00 2.02 79.23 1.37 80.6 3.1% 1.96 51 Baohe 1355 941.00 847.00 1788.00 1.32 34.68 0 34.68 1.9% 1.29

Basic info Farmland loss (mu) Farm land per City/ Town/ Farmland Village Total capita County Township Rural Paddy Dry Farm land Paddy Dry loss (%) farmland Subtotal after Popu land farmland per capita land farmland (mu) land loss 52 Xintangzhan 1472 1323.00 110.00 1433.00 0.97 29.87 11.09 40.96 2.9% 0.95 53 Lijiang Qingtian 1155 741.00 99.00 840.00 0.73 5.3 0 5.3 0.6% 0.72 54 Xishan 1940 1431.00 419.00 1850.00 0.95 0.8 0 0.8 0.0% 0.95 55 Xinyue 1308 1210.20 740.00 1950.20 1.49 0.19 0 0.19 0.0% 1.49 56 Liyu 1462 1146.80 201.20 1348.00 0.92 10.76 0 10.76 0.8% 0.91 57 Tianzhou 1293 701.00 271.00 972.00 0.75 23.31 0 23.31 2.4% 0.73 58 Liaotian Huangshi 1919 1950.00 597.00 2547.00 1.33 28.12 3.22 31.34 1.2% 1.31 59 Hekou 1591 1237.00 62.00 1299.00 0.82 9.15 0 9.15 0.7% 0.81 60 Songjiang Xiaoxiang 1378 926.20 12.00 938.20 0.68 11.28 1.51 12.79 1.4% 0.67 61 Jinpeng 453 229.00 191.00 420.00 0.93 18.07 3.31 21.38 5.1% 0.88 62 Huangtang 1645 1570.00 70.00 1640.00 1.00 1.76 0 1.76 0.1% 1.00 63 Songzhu 1396 1139.00 332.50 1471.50 1.05 21.831.02 52.82 3.6% 1.02 64 Manjin 668 689.00 689.00 1.03 24.21 0 24.21 3.5% 1.00 65 Jinyu 1358 1360.00 1360.00 1.00 64.69 0 64.69 4.8% 0.95 66 Yuebao 1498 1084.40 463.00 1547.40 1.03 42.61 0.16 42.77 2.8% 1.00 67 Yaotang 1317 1163.00 207.00 1370.00 1.04 1.35 0 1.35 0.1% 1.04 68 Jinweizhou Zhengshi 1350 378.54 0.36 378.90 0.28 2.740.36 3.1 0.8% 0.28 69 Nitan 1751 630.00 132.00 762.00 0.44 33.79 2.68 36.47 4.8% 0.41 70 Zhongyu 662 365.00 268.00 633.00 0.96 9.241.56 10.8 1.7% 0.94 71 Dazi 1223 826.00 269.00 1095.00 0.90 01.06 1.06 0.1% 0.89 72 Xiangyang Pengzi 1399 1310.70 7.05 1317.75 0.94 127.78 0.22 128 9.7% 0.85 73 Zhuchong 1283 1208.00 308.81 1516.81 1.18 32.53 0.14 32.67 2.2% 1.16 74 Tongqing 926 941.05 131.95 1073.00 1.16 0.35 0 0.35 0.0% 1.16 75 Yushi 927 724.52 724.52 0.78 20.63 0 20.63 2.8% 0.76 76 Zhaoyang 1255 1202.60 169.40 1372.00 1.09 8.531.5 10.03 0.7% 1.09 77 Xiangjiang 1045 1341.22 325.20 1666.42 1.59 60.82 0 60.82 3.6% 1.54

Basic info Farmland loss (mu) Farm land per City/ Town/ Farmland Village Total capita County Township Rural Paddy Dry Farm land Paddy Dry loss (%) farmland Subtotal after Popu land farmland per capita land farmland (mu) land loss 78 Yantou 603 853.40 120.60 974.00 1.62 3.2 0 3.2 0.3% 1.61 total 98420 75901.56 12663.35 88564.91 0.90 1496.9 177.52 1674.42 1.9% 0.88

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Annex 2：Farmland Impact of Seriously Affected Sub-villages

Farmland before land loss Farm Farm land loss (mu) (mu) Land Farm Farm Farm Farm per land City/ Town/ Sub- Rural land land land Village Dry capita per County Township village Popu Sub- Paddy Dry per Sub- Paddy loss loss > farmlan after capita total land farmland* capita total land >15% 30% d land <0.5 loss Leiyang Daheshu Yajiang No.1 148 72 72 0.49 1.01 1.01 0.48 1 0 0 No.2 151 67.91 67.71 0.29 0.45 1.22 1.02 0.29 0.44 1 0 0 No.6 147 70 70 0.48 9.67 9.67 0.41 1 0 0 No.8 126 58 58 0.46 5.32 5.32 0.42 1 0 0 Ronggong No,16 82 68 68 0.83 17.87 17.87 0.61 0 1 0 Lutian No.9 96 47 47 0.49 1.6 1.6 0.47 1 0 0 No.11 228 113 113 0.5 2 2 0.49 1 0 0 Chang- Yanzhou Xinlong Jiangbian 44 41.07 31.05 14.31 0.93 10.02 14.31 0.71 0 1 0 ning Jiangshui Yaojin 135 35.24 33 3.2 0.26 1.08 0.79 0.41 0.25 1 0 0 Zhengduo- 131 65.17 63 3.1 0.5 10.01 9.87 0.2 0.42 1 1 0 ping Xiangxin Gaohutang 99 34.1 32 3 0.34 2.18 2.18 0.32 1 0 0 Xiangqun Wuyi 174 69.8 67 4 0.4 0.96 0.26 1 0.40 1 0 0 Zhongshan 177 70.8 68 4 0.4 0.7 1 0.40 1 0 0 Wuxin 172 69.8 67 4 0.41 0.7 1 0.40 1 0 0 Yaojin 169 70.8 68 4 0.42 2.67 2.04 0.9 0.40 1 0 0 Shuikou- Sucai No.7 48 27.16 4.21 32.79 0.57 4.21 4.21 0.48 1 1 0 shan Qingnian Dashui 110 53.48 52.28 1.72 0.49 7.45 6.25 1.72 0.42 1 0 0 Xinmenling 80 94.64 93.8 1.2 1.18 20.49 19.65 1.2 0.93 0 1 0 Tiolu 168 74.95 65.5 13.5 0.45 16.8 16.8 0.35 1 1 0 Jianghe Xiangjiang Daqiao 176 70.4 69 2 0.4 0 0.40 1 0 0 Maobei 170 60.7 60 1 0.36 0 0.36 1 0 0 Songbei Zishan Zimuchong 154 130.2 126 6 0.85 37.11 37.11 0.60 0 1 0 Houbei- Xintong 52 45.85 43.75 3 0.88 16.55 16.55 0.56 0 1 1 chong

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Farmland before land loss Farm Farm land loss (mu) (mu) Land Farm Farm Farm Farm per land City/ Town/ Sub- Rural land land land Village Dry capita per County Township village Popu Sub- Paddy Dry per Sub- Paddy loss loss > farmlan after capita total land farmland* capita total land >15% 30% d land <0.5 loss Mahuang- 89 36.48 33.33 4.5 0.41 2.7 2.7 0.38 1 0 0 tang Yanxing No.6 93 76.8 76.8 0.83 14.79 14.79 0.67 0 1 0 Wangjia- Shuanlin 135 47.1 45 3 0.35 4.92 4.92 0.31 1 0 0 shan Youyi 134 63.4 62 2 0.47 2.16 2.16 0.46 1 0 0 Tongzipai 125 56.4 55 2 0.45 3.57 3.57 0.42 1 0 0 Dayu Huangjia 130 88.28 77.78 15 0.68 19.37 19.3 0.1 0.53 0 1 0 Shuanfa Zitang 171 77.5 77.5 0.45 16.15 13.84 3.3 0.36 1 1 0 Fanjia 93 37.2 37.2 0.4 3.42 2.31 1.58 0.36 1 0 0 Shuanqiao 111 58.5 58.5 0.53 3.92 3.92 0.49 1 0 0 Caiyuan 156 57.5 57.5 0.37 0 0.37 1 0 0 Shangxin 94 44 44 0.47 0 0.47 1 0 0 Beifang Daping Guiyu 160 78.4 77 2 0.49 1.75 1.61 0.2 0.48 1 0 0 Wansong Wawu 147 78.7 78 1 0.54 25.76 25.69 0.1 0.36 1 1 1 Wanxin Duoling 81 45.75 44 2.5 0.56 6.01 6.01 0.49 1 0 0 Tongmu Wangsan 117 56.5 55.8 1 0.48 0 0.48 1 0 0 Lujia 58 54.61 53.91 1 0.94 8.34 8.02 0.46 0.80 0 1 0 Beifang Huilong 69 35.9 31 7 0.52 6.87 6.87 0.42 1 1 0 xiachang 89 35.9 31 7 0.4 5.9 5.9 0.34 1 1 0 No.8 69 35.9 31 7 0.52 3.2 4.57 0.47 1 0 0 Qiaobian 67 35.9 31 7 0.54 3.26 2.19 1.53 0.49 1 0 0 Dongbei Tanjia 197 80.5 77 5 0.41 3.23 1.19 2.92 0.39 1 0 0

Xialonghui 110 50.1 48 3 0.46 1.99 1.14 1.22 0.44 1 0 0

Chujiatai 85 36.4 35 2 0.43 1.02 1.45 0.42 1 0 0

Hengnan Yunji Gaobao Heshun 150 110 96 20 0.73 18.49 18.49 0 0.61 0 1 0

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Farmland before land loss Farm Farm land loss (mu) (mu) Land Farm Farm Farm Farm per land City/ Town/ Sub- Rural land land land Village Dry capita per County Township village Popu Sub- Paddy Dry per Sub- Paddy loss loss > farmlan after capita total land farmland* capita total land >15% 30% d land <0.5 loss Shitang Pengjia 126 168.2 143 36 1.33 28.81 27.96 1.21 1.11 0 1 0 Liping Liping 139 136.3 116 29 0.98 20.89 20.89 0.83 0 1 0 Weishi 85 77.9 66 17 0.92 23.53 23.53 0.64 0 1 1 Yuexing 119 86.3 73 19 0.73 17.74 17.74 0.58 0 1 0 Baohe Laowu 144 77.03 73.95 4.4 0.53 27.68 27.68 0.34 0 1 1 Binghe Datang 227 281.91 276.21 8.14 1.24 51.02 43.97 10.07 1.02 0 1 0 Gaobao 178 237.6 134 148 1.33 95.36 95.36 0.80 0 1 1 Quanxi 197 266.4 160 152 1.35 123.11 120 4.44 0.73 0 1 1 Lijiang Tianzhou Quancen 146 89.07 70.1 27.1 0.61 28.89 28.89 0 0.41 1 1 1 Songjiang Jinpeng Xinjinpen 127 95.6 55 58 0.75 19.86 17.54 3.31 0.60 0 1 0 Songzhu Wanjia 50 54 40 20 1.08 19.04 13.43 8.01 0.70 0 1 1 Manjin Lijia 135 148.6 148.6 0 1.1 23.5 23.5 0 0.93 0 1 0 Yuebao Mujia 47 81.1 58 33 1.73 23.04 23.04 0 1.24 0 1 0 Jinweizhou Zhenshi Quancen 125 15.19 14.94 0.36 0.12 4.35 4.1 0.36 0.09 1 1 0 Nitan Wangjia 113 48.2 44 6 0.43 10.61 10.61 0 0.33 1 1 0 Zhuanjia 46 18.2 14 6 0.4 4.19 4.19 0 0.30 1 1 0 Xinwu 109 43.9 39 7 0.4 4.4 3.14 1.8 0.36 1 0 0 Tanjia 126 36.5 19 25 0.29 16.47 15.85 0.88 0.16 1 1 1 Zhongyu Lanni 49 20.9 16 7 0.43 5.5 4.41 1.56 0.31 1 1 0 Xiangyang Zhuchong Fuchong 114 128.81 95.36 47.79 1.13 32.03 32.03 0.85 0 1 0 Yushi Tangshan 82 65.61 55.84 13.96 0.8 12.16 12.16 0.65 0 1 0 Zhushan 173 85.54 72.8 18.2 0.49 0.1 0.1 0.49 1 0 0 Xiangjiang Hewu 56 66.69 56.72 14.24 1.19 16.63 16.63 0.89 0 1 0 Pengzi Dawu 130 146.1 116 43 1.12 34.95 34.95 0.86 0 1 0 Zhenshen 69 78.2 67 16 1.13 28.38 28.38 0.72 0 1 1 46 39 10 * 1mu dry farmland =0.7 mu paddy land

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Annex 3: Names of Government Participants in PPTA Consultation for Resettlement Name Agency Title Phone 1 Peng Houde Hunan Transport Design Institute 13973135201 2 Huang Jianxin Hunan Hydropower Design Institute(HHDI) 13508482211 3 Li Xiangrong XNCD Deputy manager 13974881630 4 Xu Guobin XNCD Deputy manager 5 Chen Yao XNCD 13467570245 Ouyang 6 Environment Division, HHDI Deputy director 13975168156 Xiongbiao 7 Tan Lu Environment Division, HHDI 13574859481 APt Chief 8 Reservoir Office, XNCD 13908474591 Li Xi'an Engineer 9 Lu Lifeng Reservoir Office, XNCD Director 13875859148 River Channel Division, Hunan Water Resource 10 Zhu Shihao Deputy director 13507319226 Department Planning Division, Hunan Water Resource 11 Xiang Zhaohui Deputy director 13507448007 Department 12 Guo Fuquan Resettlement Division, Hunan Resettlement Bureau Director 13787217699 Planning & Finance Div. Hunan Poverty Reduction 13 Liu Yuhua Chief 0731-82212472 Office Industry, transportation & energy division, Hengyang 14 Wang Bing Deputy chief 13016188209 Development & Reform Bureau Entitlement Division, Hengyang Women's 15 Li Xia Chief 13507340210 Federation 13974771497,073 16 Qin Wenke Policy division, Henyang Land Resource Bureau Chief 4-8850675 17 Deng Zhonghua Hengyang Pastry & aquaculture Bureau Deputy director 13574773004 Fishery Division, Hengyang Pastry & aquaculture 18 Wang Yangchun Chief 0734-2891522 Bureau Fishery Division, Hengyang Pastry & aquaculture 19 Liu Tongyuan 13016185097 Bureau 20 Liu Jianyuan Hengnan Committee of Communist Part Deputy secretary 13789379988 21 Xu Taiguo Office, Hengnan Committee of Communist Part Deputy chief 13973463946 13574798679， 22 Zhang Tangying Office, Hengnan Statistic Bureau Director 8551498 23 Huang Yuefeng Hengyang Agricuture Bureau Director 13974706189 24 Liu Xianchun Office, Hengyang Agricuture Bureau Director 0734-8552306 13787739755， 25 Ouyang Shi Hengnan Labor & Social security Bureau Deputy director 8551088 13762477947， 26 Yang Xin Office, Hengnan Labor & Social security Bureau Director 8551027 27 Huang Yuejin Hengnan Transportation Bureau Director 13975426789 28 Wang Yong Office, Hengnan Transportation Bureau Director 13873402138 Constructin Land Division, Hengnan Land Resource 29 Chief 13786475038 Hu Yongfeng Bureau 30 Ou Gensheng Hengnan Resettlement Bureau Deputy director 13873458730 31 Yang Bo Hengnan Resettlement Bureau 13575249003 32 Xie Songjiang town, Hengnan county Deputy director 13787348872

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Name Agency Title Phone 33 Deng Xiaojun Shuikoushan Street Admin office, Hengnan County Deputy secretary 13973438359 Shani sub-village, Pengzi village, Xiangyang town, 34 Zhong Hailong Hengnan Shani sub-village, Pengzi village, Xiangyang town, 35 Peng Xueyue Hengnan 36 Liu Jun Changning city government Deputy governor 13807474899 37 Yin Shanyuan Changning city government Deputy governor 13908448399 38 Li Aiping Office, Changning city government Deputy chief 13575247908 39 Luo Gensheng Changning resettlement bureau Director 13973437156 Engineering Division, Hengnan Resettlement 40 Yin Hongyou chief 13787707742 Bureau 41 Yin Xueliang Office, Hengnan Resettlement Bureau 13907476945 Songyu resident committee, Songbei Town, 42 Liu Jianhua Secretary 13908447429 Changning city Songyu resident committee, Songbei Town, 43 Zhu Yunxue 13907476394 Changning city Songyu resident committee, Songbei Town, 44 Liy Lisheng 13907477912 Changning city 45 Liu Huarong Songbei Town government, Changning city Deputy chief 13762462568 46 Xu Pengfei Qinren Hydropower Plant,Changning city Deputy director 13873406390 47 Tan Xiangdong Qinren Hydropower Plant,Changning city Deputy director 13873498686 48 Kang Jiquan Office, Qinren Hydropower Plant,Changning city Director 13873455253 49 Zhu Zhiwen Xintong village, Songbei town, Changning city Director 13617347409 Changtangchong sub-village, Xintong village, 50 Zhu Zhihui chief 15115476160 Songbei town, Changning city

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Annex 4:Resettlement Information Booklet

I. Objectives of RP Booklet

253. The primary objective of the RP Booklet is to provide a brief about the project, particularly the compensation principles and resettlement benefits, and how and when the compensation and other payments will be paid to the project affected persons/collectives. This is part of the information dissemination work aimed at disclosure of the project policies and procedures regarding land acquisition, resettlement, compensation, payment, and provision of grievance redress and appeal procedures. The EA will distribute the Information Booklet to the APs prior to the commencement of resettlement. Copies of the Booklet will be available at the Resettlement Offices in each County/city, Township and Village Committees.

II. Project Description and Impacts

254. The proposed Tugutang Navigation and Hydropower complex, located in Yunji Town of Hengnan County, consist of (1) multi-purpose dam of concrete in Class II; (2) power generation plant with designed capacity of 80MW and its transmission network; (3) two ports’ construction with designed throughput of goods of 220,000 ton and 175,000 tons respectively; and (4) protection works in the reservoir area. The project with total cost estimation of CNY2,377.75 million will be commenced in December 2011 and completed by Feb 2016.

255. The Project area of influence covers three county/cities: Hengnan, Changning and Leiyang. The project will affected 94 villages in 14 townships. The project impact data show that 6,612.1(440.8 ha) of land will be acquired and 38,090 m2 building/houses will be removed. In all, 5,779 persons will be affected by the project.

III. Compensation Policy and Rates

256. Policies regarding compensation and resettlement for the APs are based on the harmonization of PRC laws and regulations and ADB’s safeguards policy. The primary objective of the RP is to restore the income and living standards of the APs in post-resettlement period and with as little disruption as possible in their own economic and social environment. Particular attention has been paid to the needs of the affected poorest and vulnerable groups. The RP has been prepared with this as the guiding principles. The principles are summarized in Table 1.

Table 1: Resettlement Principles Principles 1 That compensation and entitlements provided to APs are adequate to at least maintain their “without project” standard of living, with prospect of improvement. 2 All APs, titled or non-titled, are taken into account for compensation and resettlement assistance. 3 Land redistribution will ensure per capita minimum holding in post-resettlement period to maintain livelihood standards. 4 Where land acquisition per capita is not sufficient to maintain livelihood, compensation in cash or kind for replacement land for other income-generating activities will be provided for. 5 All APs will be adequately informed on eligibility, compensation rates and standards, livelihood and income restoration plans, project timing, and will be involved in RP implementation. 6 No land acquisition will take place prior to satisfactory compensation resettlement of APs.

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7 The EA and independent/third party will monitor compensation and resettlement operations. 8 Vulnerable groups should receive special assistance or treatment to ensure they are better off. 9 Resettlement affected people should have opportunities to benefit from the project. 10 Resettlement plan should be combined with the overall county or township planning.

257. In this project, compensation rates for various types of losses are provided in Table 2. Table 2: Table Compensation Rates by Types

Compensation Rates for House/Building 3 Unit: CNY/m2 House Type Brick & Concrete Brick & wood Simple Compensation rates 558 454 150

Compensation Rates for Land (CNY/Mu) Category City/County I II III IV V Hengnan 35549 30910 28549 26513 24842 Paddy land * Changning 34380 20030 26873 23843 Leiyang 38709 34188 29887 27324 24245 Hengnan 24884 21637 19984 18559 17389 Dry farmland Changning 24066 14021 18811 16690 Leiyang 27096 23932 20921 19127 16972 Hengnan 19552 17001 15702 14582 13663 Economic forest land Changning 17190 10015 13437 11922 Leiyang 21290 18803 16438 15028 13335 Hengnan 14220 12364 11420 10605 9937 Grass land and other Changning 13752 8012 10749 9537 forest land Leiyang 15484 13675 11955 10930 9698 Hengnan 24884 21637 19984 18559 17389 Orchard Changning 20628 12018 16124 14306 Leiyang 27096 23932 20921 19127 16972 Hengnan 4444 3864 3569 3314 3105 Other land** Changning 4298 2504 3359 2980 Leiyang 4839 4274 3736 3416 3031 * Including water pond; ** Including barren land and beach farmland

Other Categories (CNY) Category Compensation Category Compensation Category Compensation Enclosure wall 20/m2 Protected slope 50/m2 Doorsill 800/piece Sunning yard 25/m2 Cistern 80/m3 Tomb with stele 1000/piece Tomb without Well 1000/piece Phone 200/piece 500/piece stele Hearth 300/piece Outdoor antenna 200/piece Underground 200/piece Barn 1500/piece furnace

3 As the RIB was circulated to the affected subvillages in May 2012, the compensation rate for house are now formulated higher than these rates in the table and will be disclosed to the APs during RP implementation.

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Fruit tree and other trees

258. The compensation of fruit tree and other trees will be in accordance with the standards set forth by Hengyang Municipal Government and approved by Hunan Provincial Government.

IV. Payments of Compensation

259. Compensation for affected land and public infrastructure belongs to farming collectives and will therefore be paid directly to the Villager Committees for the utilization of developing the production, rehabilitating the economic level for affected persons. Where adequate land is not available, cash compensation will be paid to individuals/families affected by loss of farmland.

260. Compensation subsidy will be paid to the agency that is responsible for resettling the agriculture population while resettlement subsidy will normally be paid to the Villager/sub-village Committees that are affected or redistributed. If they do not receive redistributed land and want to resettle by themselves, it will be paid to affected individuals.

261. The compensation for houses, special purpose facilities, auxiliary facilities and crops not matured will be directly paid to the owners. Compensation for affected enterprises will be paid directly to the respective enterprises. The entitlement matrix in Table 3 contains detail description of the policy and implementation issues.

V. Transition Allowances

262. In addition to the compensation for houses and land, the affected persons will also receive allowances for relocation and resettlement. All APs affected by house/apartment/shop will receive the following allowances (the temporary housing will be based on the AP’s needs): (i) levelling housing plot, CNY2,400 per household; (ii) moving allowance, CNY1,500 per head; (iii) subsidy for water and power, CNY400 per household and (iv) transitional subsidy, CNY1,000 per head. There will be no transitional subsidy for any households provided with temporary housing by the project resettlement agency, or for the households whose existing homes shall not be demolished until after completion of construction of their new houses. Proper allowances will be paid for loss of production or business resulting from the demolition of the houses used for businesses.

VI. Implementation Organizations

263. The HPDT will be responsible on behalf of the Hunan Provincial Government for the general administration of the project implementation and the monitoring of the work done by project implementation agency (IA) –Xiangjinag Navigation Construction and Development Co (XNCD). XNCD will be responsible for the execution of the Project and coordination of land acquisition and resettlement (LAR) and resolve problems vital for the implementation of LAR. The Reservoir Office in XNCD will be responsible for LAR and coordination with resettlement agencies of

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local governments. The resettlement agency of local government will be responsible for the implementation of LAR.

VII. Participation IN RP Planning & Implementation

264. The EA already consulted with affected local government at various levels and the representatives of affected persons and enterprises through meeting at the design stage and initial preparation stages. During the survey and design stage, APs were involved in the following activities: (i) selection of barrage site and determination of inundated water level; (ii) classification and measurement of affected land, houses, enterprises; (iii) survey and inspection of trees, water wells, walled enclosures, graves etc; and (v) survey and reconfirmation of hydrology, electrical supply, communication and other infrastructures.

265. At the implementation stage, APs will be involved in carrying out the following tasks: (i) determine the scope of compensation and compensation rates; (ii) agreements on compensation; (iii) selection of new resettlement areas; (iv) redistribution of land; (v) utilization of compensation funds at village level; (vi) decision of grievance appeals; and (vii) RP monitoring and investigation.

VIII. Grievance Procedures

266. The Public Complaints Centre (PCC) will be established in the site office of XNCD to accelerate the process of complaint response. The local government bodies at various levels will nominate an officer to act as a focal point for contact by and with the PCC. APs can make their complaints by contacting the PCC or the Resettlement Office of the local government. Members of the resettlement offices at the village, township, and county/city would readily answer any inquiry regarding RP implementation.

267. Contact at PCC:

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268. The mechanism suggested is as follows:

a. When a problem due to Project activities occurs, the AP will make a complaint to the PCC. In case the AP is unable to direct the complaint to the PCC, AP will lodge the complaint at the county, city and province office where the nominated officer will accept and immediately direct the complaint to the PCC. At the PCC a complaints register/database will be maintained with the following information.

b. Upon receipt of the complaint the PCC will coordinate with the RE and the Contractor to resolve the problem. The RE will have the required authority to instruct the contractor on action that should be taken for redress. PCC will update the complaints database with action taken and feed back to the complainant.

c. Any complaint that cannot be solved at the PCC/RE/Contractor level will be directed to the HNRB/HPDOT for action. Complaints thus directed and their outcome also will be recorded in the database. The XNCD director will monitor the Public Complaints register and prepare monthly reports to be submitted to the Director of HNRB/HPDOT.

269. The PCC will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation and local road networks, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of IA and the contractors, as well as a forum, for their timely resolution.

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Table 3: Entitlement Matrix of Compensation and Resettlement Policy

Entitled No. of entitled Compensation Type of loss Compensation policy Implementation issues person/ group persons /groups Entitlement

Permanent loss a) Sub-villagess Land compensation and resettlement Full compensation Village meetings to be responsible for of collective a) 314 subvillages subsidies respectively*; for 314 deciding on the allocation of funds, the land b) Farmers who in 78 villages Replacement land and/or cash payments subvillages and redistribution of land and investment in use the land and/or income restoration measures land loss income generating activities such as b) Households who sufficient to ensure maintenance of existing households, the improved cultivation techniques/ irrigation/ lose land economic and social conditions share between small business development/ training. Priority should be given to the villages with land owning group land loss if land reclamation program is and households Higher level authorities to approve and feasible will be determined monitor village level proposals and, if Priority of temporary job employment during by villagers’ required to facilitate training programs construction for the villagers losing meeting. cultivated land APs are able to Population requiring production resettlement contract reclaimed (XXX persons at design year) can get post- land if it is stage support. available.

Temporary loss Farmers who (to be identified Cash compensation based on AAOV for each Who lose crops Village Committee/farm owners must be of collective use the land during construction) year land is not available + reinstatement to will receive full notified in advance and paid accordingly land pre-construction condition compensation according to compensation standard.

Loss of Owner of the 63 households Cash compensation at replacement rates for Pay compensation Subvillages and APs to decide on location residential building or all buildings for owner of the of new residential plots. house houses Transition and moving allowances, house/building New plot arrangement by subvillage or cash compensation for housing plot if APs select 63 households new plot by themselves

Loss of non- a) Legal owner 2 small hydropower For the enterprises affected by permanent Full compensation Assistance in finding new site if relocation residential of the plants business loss: based on of establishment is unavoidable. establishments establishment (1) Cash compensation for permanent compensation b) Employees business loss if the business cannot be standards social restored units

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Entitled No. of entitled Compensation Type of loss Compensation policy Implementation issues person/ group persons /groups Entitlement

(2) Transitional allowances for salary loss of employees up to 6 months (3) Priority of temporary job employment during construction for APs, and (4) Employment information disclosure to APs

For the enterprises affected by temporary business loss: (1) Cash compensation for land or replacement site provided (2) Cash compensation for buildings/structures; (3) Transitional allowances for lost income; (4) Transitional allowances for salary loss of employees up to 6 months (5) Moving allowance for transport of building materials to new families who are relocated (not payable in cash); and (6) Construction of common property units by local government in consultation with beneficiary groups

Crops losses Affected people All owners who loss Crops losses will be compensated at a rate Full payment / Trees crops/trees equal to the market value of the harvested direct pay to the crops crop/tree owners Trees will be compensated based on project standards * Cultivated land reclamation fee is also payable to land resource agency rather than APs.

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Annex 5: Terms of Reference for External Monitoring

A. Background

270. XNCD, under HDoT has undertaken the construction of Tugutang Navigation and Hydropower Complex (the Project) with loan from the Asian development Bank (ADB). The primary objective of the project is to provide a new link between the hinterland of southern Hunan with the Yangzte basin and the major hubs of Wuhan and Shanghai; to reduce transportation cost of bulks by providing accommodation for large ships so to benefit the economic development; to provide additional safe energy to meet the requirement of power shortage for economic growth; and to benefit in irrigation, aquiculture and transportation.

271. The proposed complex is located in Yunji Town of Hengnan County, 39km upstream Hengyang City, which belongs to midstream reach of Xiangjiang River. The Project will involve the construction of (1) multi-purpose dam of concrete in Class II; (2) power generation plant with designed capacity of 80MW and its transmission network; (3) two ports’ construction with designed throughput of goods of 220,000 ton and 175,000 tons respectively; and (4) Protection works in the reservoir area.

272. A Resettlement Plan (RP) has been prepared for mitigation of adverse project impacts. Broadly stated, mitigation of losses and restoration of socio-economic status of the APs are the prime objectives of the RP. The core component of the RP is to provide institutional and financial assistance to the APs to replace their lost resources such as land, residential structures and other losses. The Project has approved a policy to pay compensation as appropriate to all affected persons, irrespective of ownership rights. Both the resettlement policy and its implementation are discussed in detail in the RP.

273. The RP includes a provision for monitoring and evaluation of the implementation of the plan by an external monitor. Therefore, XNCD, which is the implementation agency (IA) for this project, requires services of a reputed individual/consultancy firm for monitoring and evaluation of RP implementation.

B. Objectives of monitoring and evaluation (M&E)

274. In accordance with the requirement of ADB’s resettlement policies, it is to undertake external monitoring and evaluation for resettlement of HWT project. Through monitoring the progress, funds mobilization and management of land acquisition, demolition and resettlement, it is to analyze and compare the changes and restoration of the production and livelihoods of the affected people, and thus to provide with follow-up evaluation in this connection. In addition to the regular reports (twice a year in resettlement implementation period) respectively submitted to ADB, XNCD and relevant competent departments. This process shall also provide with information and suggestions to all departments for reference in policy making. Through external monitoring and evaluation, ADB and the project administrative agencies may have full understandings of the conditions and the existing problems of the land acquisition, demolition and resettlement, such as timely implementation of the resettlement plan, full achievement of the expected targets as well as the suggestions for improvement etc.

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C. Major tasks of M&E

275. The major tasks of monitoring and evaluation consist of:

a. Monitoring and evaluation of the progress of land acquisition, which will include (i). progress of land acquisition; (ii). progress of temporary land occupation; and (iii) progress of house demolition and reconstruction. b. Monitoring and evaluation of funds mobilization and utilization, which will include situation of in-place funds and utilization of funds (planned and actual). c. Monitoring and evaluation of living standards of affected people, which will include (i) production and living conditions before displacement; (ii) production and living conditions after displacement; and (iii) comparative analysis and evaluation of the employment and living conditions before and after displacement. d. Whether APs are benefited from the project construction. e. Evaluation of the capacity of resettlement institutions and the situation of public participation, complaints and grievance.

D. Methodology of M&E

276. The general approach to be used is to monitor activities and evaluate impacts ensuring participation of all stakeholders especially women, the poor and other vulnerable groups. Monitoring tools would include both quantitative and qualitative methods:

a. Socio-economic survey of a representative sample, disaggregated by gender and income to obtain information on the key indicators of entitlement delivery, efficiency, effectiveness, impact and sustainability. Twenty percent of HH affected by house removal and Ten percent sample of HH by loss of land will be covered, and some vulnerable groups targeted. b. Focused Group Discussions (FGD) that would allow the monitors to consult with a range of stakeholders (local government, resettlement field staff, NGOs, community leaders and APs). c. Key informant interviews: select local leaders, village workers or persons with special knowledge or experience about resettlement activities and implementation. d. Community public meetings: open public meetings at resettlement sites to elicit information about performance of various resettlement activities. e. Structured direct observations: field observations on status of resettlement implementation, plus individual or group interviews for cross checking purposes. f. Informal surveys/interviews: informal surveys of APs, host village, workers, resettlement staff, and implementing agency personnel using non-sampled methods.

E. Qualification of External monitoring agency

277. The individual consultant/consultancy firm will have significant experience in resettlement policy analysis. Further, work experience and familiarity with all aspects of resettlement operations would be desirable. Candidates with degrees in anthropology, sociology, and development studies will be preferred.

F. M&E Report Requirement

278. The independent external monitoring agency will be responsible for overall

115 monitoring of the project and will submit regular semi-annual report directly to XNCD and ADB and determine whether resettlement goals have been achieved, more importantly whether livelihoods and living standards have been restored/ enhanced and suggest suitable recommendations for improvement. The M&E reports are initially scheduled as follows, and may be changed in accordance with project progress and/or ADB’ requirement.

Date due for submission 1st E&M Report 30 June 2012 2nd E&M Report 31 December 2012 3rd E&M Report 30 June 2013 4th E&M Report 31 December 2013 5th E&M Report 31 December 2014 6th E&M Report 31 December 2015 7th E&M Report 31 December 2016

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Annex 6: Land Redistribution Plan and Population Required for Production resettlement in Affected Sub-villages

Farmland redistribution Popu of Within From bordering Town/ With village City/County Village Subvillage Product Sub-village village Townships Resettl Farm Farm Farm Popu Land Popu Land Popu Land (mu) (mu) (mu) 1.Ports 17 17 Changning Shuikoushan Shucai No.4 17 17 7.14 2. Dam-site 312 260 52 Hengnan Yunji Baohe Laowu 52 52 27.56 Binghe Datang 41 41 47.56 Gaobao 71 71 56.8 Quanxi 92 92 67.16 Dawu 31 31 26.66 Zhenshen 25 25 18 3 Reservior 655 187 363 105 No.16 23 23 19.09 Jiangbian 11 11 7.81 Zhengdouping 20 20 10 Shuikoushan Sucai No.7 7 7 3.99 Xinmenling 17 17 15.81 Tielu 39 39 17.55 Zishan Zhangmuchong 45 45 38.25 Xintong Houbeichong 19 19 16.72 No.6 18 18 14.94 Dayu Huangjia 30 30 20.4 Shuangfa Sitang 37 37 16.65 Wansong Wawu 49 49 26.46 Tongmu No.2 9 9 7.2

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Farmland redistribution Popu of Within From bordering Town/ With village City/County Village Subvillage Product Sub-village village Townships Resettl Farm Farm Farm Popu Land Popu Land Popu Land (mu) (mu) (mu) Lujia 9 9 7.2 Huilong 13 13 6.76 Heshun 26 26 18.98 Pengjia 23 23 25.53 Liping Liping 22 22 18.26 Weisi 27 27 24.84 Yuexing 25 25 18.25 Tianzhou Quanceun 48 48 29.28 Xinjinpen 27 27 20.25 Wanjia 18 18 12.6 Lijia 22 22 20.46 Mujia 13 13 16.12 Zhuchong Fuchong 29 29 24.65 Yushi Tangshan 15 15 12 Hewu 14 14 12.46

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Annex 5: Summary of Farmland Protection Program

Area of Effective area Location of Elevation No farmland to be of farmland farmland protected (m） protected (mu) （mu） Total 5195.98 4758.58 Hengnan County 2824.07 2546.17 1 Binghe Area A 59 72.53 53.39 2 Binghe Area B 59 51.23 50.48 3 Gaobao Area C 59 113.04 95.14 4 Gaobao Area B 59 46.70 36.63 5 Gaobao Area A 59 51.58 50.42 6 Shitang Area A 59 77.96 72.61 7 Shitang Area B 59 26.31 24.38 8 Liping Area A 59 61.32 50.38 9 Liping Area B 59 91.41 75.17 10 Liping Area C 59 41.79 33.31 11 Liping Area D 59 62.37 45.99 12 Yuebao Area A 59 88.60 84.71 13 Jinyu Area A 59 336.11 307.91 14 Jinyu Area G 59 66.93 60.93 15 Jinyu Area D 59 17.76 13.21 16 Jinyu Area E 59 52.61 48.46 17 Jinyu Area C 59 24.22 18.23 18 Jinyu Area B 59 247.44 236.73 19 Jinpeng Area A 59 14.94 13.84 20 Yaotang Area A 59 116.82 113.13 21 Songzhu Area B 59 77.14 74.38 22 Songzhu Area A 59 47.10 45.34 23 Qingtian Area 59.04 31.19 29.91 24 Tianzhou Area A 59.14 22.87 20.68 25 Tianzhou Area B 59.14 33.84 31.49 26 Xinyue Area 60.81 32.91 32.43 27 Xishan Area 61.06 28.39 23.37 28 Pengzi Area 59 54.78 53.21 29 Zhuchong Area A 59 218.44 197.25 30 Zhuchong Area B 59 71.20 61.98 31 Zhuchong Area C 59 140.14 121.88 32 Zhuchong Area D 59 40.38 35.54 33 Yushi Area A 59 21.95 21.05

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Area of Effective area Location of Elevation No farmland to be of farmland farmland protected (m） protected (mu) （mu） 34 Yushi Area E 59 14.42 13.27 35 Xiangjiang Area A 59 204.11 183.78 36 Xiangjiang Area C 59 37.37 36.55 37 Zhaoyang Area A 59 16.06 14.42 38 Huangshi Area A 59.63 13.74 13.47 39 Jinyu Area I 59 15.39 13.90 40 Yuebao Area B 59 15.90 13.17 41 Zhengshi Area A 60.21 25.08 24.05 Leiyang 511.77 464.66 42 Yajiang Area A 61.74 110.5 101.9 43 Yajiang Area B 61.46 62.94 60.91 44 Ronggong Area A 61.74 43.14 36.86 45 Lutian Area 61.74 73.05 59.28 46 Qujia Area 62.57 44.05 43.37 47 Shideng Area 62.57 37.42 31.45 48 Qunle Area A 61.74 19.86 18.20 49 Qunle Area B 61.74 23.50 21.01 50 Ronggong Area B 61.74 35.84 34.88 51 Xinhua Area A 61.74 19.85 18.88 52 Xinhua Area B 61.74 15.91 13.89 53 Xinhua Area C 61.74 25.71 24.03 Changning 1860.14 1746.75 54 Mashi Area 62.57 74.11 65.16 55 Xinlong Area 61.95 61.33 59.33 56 Yanxing Area 59.17 52.74 50.43 57 Xintong Area 59 89.97 88.69 58 Shuanglin area 59 124.47 106.41 59 Qingniang area A 59 97.59 87.85 60 Qingniang area B 59 235.13 224 61 Qingniang area C 59 281.27 254.22 62 Qingniang area D 59 57.37 48.86 63 Shuikoushan area 59 194.97 190.62 64 Zhupo area 59 143.57 139.83 65 Daxin area A 60.4 164.63 161.47

66 Xiangxing area 62.57 22.94 22.21 67 Tushi area 60.08 38.98 37.69 68 Yanxing Area B 59.34 39.02 37.61

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Area of Effective area Location of Elevation No farmland to be of farmland farmland protected (m） protected (mu) （mu） 69 Yitan Area 62.36 20.57 20.14 70 Yan’e Area A 61.87 26.17 24.28 71 Wanxin Area A 61.87 35.87 33.22 72 Shuanfa Area A 59.11 37.5 35.84 Shuanfa Area B 73 59.11 20 19.32 Shuanfa Area C 74 59.08 31.05 28.82 75 Qingshui Area 59.63 10.89 10.75

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Annex 6: Approval of Domestic RP by HNRB

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