External Social Monitoring Report

# 3 Semiannual Report September 2020

People’s Republic of China: Fujian Farmland Sustainable Utilization and Demonstration Project

Prepared by Sichuan Fontal Strategic Consulting Co., Ltd. for the Fujian Provincial Government and the Asian Development Bank.

NOTE

(i) In this report, "$" refers to United States dollars.

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

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

Loan No.: 3450-PRC

Fujian Farmland Sustainable Utilization and Demonstration Project

External Social Monitoring Report No. 3

Sichuan Fontal Strategic Consulting Co., Ltd. September 2020

ABBREVIATIONS

ADB - Asian Development Bank AP - Affected Person FGD - Focus Group Discussion GAP - Gender Action Plan IA - Implementing Agency M&E - Monitoring and Evaluation NCB - National Competitive Bidding PMO - Project Management Office RP - Resettlement Plan SDAP - Social Development Action Plan

Units

Currency unit = Yuan (RMB) RMB1.00 = US$0.15 1 hectare = 15 mu

1 Project Overview 1.1 Project Introduction

1 The Fujian Farmland Sustainable Utilization and Demonstration Project (hereinafter, the “Project”) formerly involved 13 counties (cities, districts) in 5 municipalities, namely Wuyishan City and Guangze County in Nanping Municipality, Datian, Youxi and Ninghua Counties in Sanming Municipality, Yongding and Xinluo Districts in Longyan Municipality, Pinghe and Zhangpu Counties in Zhangzhou Municipality, and Jiaocheng District, Zherong County, Dongqiao District and Fu’an District in Ningde Municipality, with a total construction area of 269,000 mu, including the improvement of 204,000 mu of slope farmland, including tea garden, oil tea garden, grapefruit garden, etc., and the improvement of 65,000 mu of low farmland, involving paddy rice, vegetables, pasture, pearl barley, lotus seed, etc. The Project has a gross investment of 1.242 billion yuan (equivalent to $190 million), including an ADB loan of $100 million, and a construction period of 5 years, from May 2017 to May 2022. See more details of outputs and construction contents in the 1st external monitoring report. 1.2 Scope of Construction and Changes

2 During the first and second round of M&E, some implementing agencies (IAs) had completed construction or quitted to implement relevant subprojects due to changes in construction conditions in the long preparation period. By the date of the second M&E report, 11 subprojects1 were dropped out from the Project, with a total amount of $23.3 million. Their withdrawal has been approved by ADB. These changes have already been reflected in No.2 M&E report.

3 During this round of M&E, the cancellation of some subproject components of two companies in Longyan Municipality and one company in Ninghua (see Footnotes 2, 3 and 4) were approved by ADB. See Table 1-1 for the latest construction scope of the Project.

Table 1-1 Construction Scope of the Project (As of Aug 2020) County / Remarks No. IA city / Scope of construction (Changes from last report, if any) district Wuyishan 5,000 mu paddy field in Wuyishan— No change Zhuzi Eco- Wuyishan water and ecological revetment 1 agriculture City infrastructure improvement, 5,000 mu Co., Ltd. paddy field—traffic. 60,000 mu low-yield tea garden and No change 40,000 mu low-yield oil tea garden Datian improvement—farmland protection and County ecological conservation, 18,000 mu Golden low-yield paddy field improvement— Datian 2 Phoenix farmland protection and ecological County Agricultural conservation, 4,700 mu low irrigated Development land leveling, improvement of 4,285 mu Co., Ltd. tea garden terrace and other infrastructure, and organizational capacity building Ninghua Improving 1,010 mu oil tea garden, Removal of some components was Ninghua 3 County State- mainly including oil tea garden approved. County owned Eco-

1 The withdrew IAs include Yangzhong Town Xingkaicheng Urban Construction Co., Ltd. ($4.5 million), Youxi County Shenlang Edible Oil Co., Ltd. ($3.6 million), Ninghua County Ninghua High-tech Food Co., Ltd. ($1 million), Fujian Chunhui Tea Co., Ltd. ($1.2 million), Fujian Cuiyun Tea Co., Ltd. ($1.3 million), Ninghua County Jinxi Tea Co., Ltd. ($1.2 million), Ninghua County Houde Eco-agriculture Co., Ltd. ($1.3 million), Fujian Hongsheng Gardening Co., Ltd. ($3.6 million), Fujian Jianye Agriculture & Forestry Investment Co., Ltd. ($3.6 million) and Ningde Qilongxiang Agriculture Co., Ltd. ($2 million) , total $23.3 million. Guangze County Zhengyuan Eco-food Co., Ltd. have proposed new project components using existing $4 million.

1 County / Remarks No. IA city / Scope of construction (Changes from last report, if any) district forest Farm improvement and infrastructure Co., Ltd.2 construction Longyan Improving 5,565 mu oil tea garden, 608 Removal of some components was Longyu mu vegetable base / nursery, mainly approved. Ecological Yongding including lowland and water 4 Industry District infrastructure improvement, seedling Development supply, and pest control equipment Co., Ltd.3 Longyan 4,000 mu paddy field—water Removal of some components was Green Land infrastructure improvement and 2,000 approved. Eco- Xinluo mu paddy field protection 5 agriculture District Development Co., Ltd.4 Improving 12,691 mu grapefruit No change garden, 6,328 mu oil tea garden and Fujian Xinghe 10,079 mu tea garden (including 6,651 Investment & mu organic tea garden and 3,428 mu Pinghe 6 Development green tea garden), mainly including County Group Co., land leveling, field roads, agriculture Ltd. protection, farmland irrigation, sustainable cultivation, etc., and organizational capacity building 4,460 mu oil tea field facility No change Fujian Luyin improvement, water facility Jiaocheng 7 Agriculture improvement, shelter forest and District Co., Ltd. ecological conservation, seedling supply, and pest control equipment 1) Construction of 500 mu fine tea No change variety breeding base; 2) replanting of 1,000 mu tea garden; 3) construction of composite ecological tea garden; 4) tea Fujian Farms Fu’an garden pipe irrigation and water- 8 Agribusiness District fertilizer integration technique Tea Co. Ltd. extension; 5) construction and application of remote pest monitoring, diagnosis and early warning service platform of tea garden; 6)

2 Ninghua County State-owned Eco-forest Farm Co., cancellation of the following components were approved by ADB: 7 contracts, including (FJ-NHLC-CW-01, Rehabilitation of 15,331 mu Slopeland for the Oil-tea Plantations in Huatou Township, FJ-NHLC-CW-02, Rehabilitation of 9,201 mu Slopeland for the Oil-tea Plantations in Shibi Township, FJ- NHLC-CW-03 Construction of Irrigation/drainage systems and access roads in the 15,331 mu oil-team plantations in Huatou Township, FJ-NHLC-CW-04 Construction of Irrigation/drainage systems and access roads in the 9,202 mu oil-tea plantations in Shibi Township, FJ-NHLC-CW-05 Land leveling and construction of irrigation/drainage systems and access roads in the 850 mu oil-tea plantations in Anle township，FJ-NHLC-GS-02 Supply of 1.294 million Oil-tea Saplings for 16,175mu Oil-tea Plantations and FJ-NHLC-GS-02 Supply of 0.826 million oil-tea Saplings for 15,331 mu Oil-tea plantations) totaling $9 million. 3 Longyan Longyu Ecological Industry Development Co., Ltd. cancellation of the following subproject components were approved by ADB: 6 contracts,( including 3,592 mu tea garden—slope land and water infrastructure improvement, seedling supply, 8,395 mu paddy field—lowland renovation, water infrastructure, farmland protection, 4,140 mu pasture—lowland leveling, soil monitoring, and farm product quality testing,) totaling $7.5 million. 4 Longyan Green Land Eco-agriculture Development Co., Ltd. cancellation of the following subproject components were approved by ADB: 9 contracts, (including water infrastructure improvement including 2,690 mu pearl barley garden, 1,820 mu low-yield oil tea garden, 1,200 mu low-yield tea garden and 2,064 mu vegetable garden), lowland improvement, terrace improvement, farmland protection, farm product quality testing, oil tea seedling supply, and farmland ecological conservation (shelter forest)), totaling $6.5million.

2 County / Remarks No. IA city / Scope of construction (Changes from last report, if any) district reconstruction and expansion of tea quality test station; 7) farm product and tea quality tracing system; 8) skill training Source: fieldwork / IAs

4 The remaining 8 IAs covered 83 villages in 18 townships in 6 counties (cities, districts) in four municipalities by the date of this report. These 83 villages have a resident population of 60,183, including 29,544 females and a poor population of 992. Compared to previous M&E report, some of the beneficiary villages were changed. See Appendix 1 for the remaining beneficiary area of the Project.5

1.3 Project Implementation Progress 5 The 8 IAs have 50 contracts (including construction and procurement) in total. By the date of this report, procurement for 31 contracts had completed, including 27 subject to national competitive bidding (NCB) and 4 subject to shopping.

6 By the date of this report, 8 contracts had been completed their implementation (5 of Fujian Luyin Agriculture Co., Ltd., 1 of Datian County Golden Phoenix Agricultural Development Co., Ltd., 1 of Fujian Xinghe Investment & Development Group Co., Ltd., and 1 of Wuyishan Zhuzi Eco- agriculture Co., Ltd.), 19 were ongoing (6 of Datian County Golden Phoenix Agricultural Development Co., Ltd., 2 of Longyan Longyu Ecological Industry Development Co., Ltd., 2 of Longyan Green Land Eco-agriculture Development Co., Ltd., 3 of Fujian Xinghe Investment & Development Group Co., Ltd., 2 of Wuyishan Zhuzi Eco-agriculture Co., Ltd., 2 of Ninghua County State-owned Eco-forest Farm Co., Ltd., and 2 of Fujian Farms Agribusiness Tea Co. Ltd.), 4 were ready to be implemented (1 of Datian County Golden Phoenix Agricultural Development Co., Ltd., and 3 of Fujian Xinghe Investment & Development Group Co., Ltd.). See Table 1-2, in which the contracts not ready for bidding are not listed.

7 See Appendix 2 for detailed progress and construction site photos.

Table 1-2 Implementation Progress of Contract Packages Bidding Implementation No. Owner Contract Package Contract No. mode Progress Longyan Green 4,000 mu paddy field—water FJ-XLLD- CW- Land Eco- infrastructure improvement in NCB Completed by 55% 01-01 1 agriculture Shizhong town Development 2,000 mu paddy field protection in FJ-XLLD- CW- NCB Completed by 53% Co., Ltd. Shizhong town 06-01 Low-yield oil tea garden and low- FJ-DT-CW-01- yield farmland improvement in NCB Ongoing 01 Qianping Xiang Datian County Low-yield oil tea garden and low- FJ-DT-CW-01- Golden Phoenix yield farmland improvement in NCB Ongoing 02 2 Agricultural Qianping Xiang Development Low-yield farmland improvement in FJ-DT-CW-03- NCB Ongoing Co., Ltd. Taoyuan Town (Xi’an area) 02 Tea garden and low-yield farmland FJ-DT-CW-05- improvement in Jiyang Xiang NCB Ongoing 01 (Jizhong Area)

5 Removals of some components under remaining subprojects were approved during this period, therefore, the total beneficiaries changed comparing with previous M&E report. See appendix 1 for details.

3 Bidding Implementation No. Owner Contract Package Contract No. mode Progress Tea garden and low-yield farmland FJ-DT-CW-05- improvement in Jiyang Xiang NCB Ongoing 02 (Shangfeng area) Datian Subproejct - Low-yield FJ-DT-CW-08- farmland improvement in Wushan NCB Ongoing 01 Town (Keshan area) Low-yield farmland improvement in FJ-DT-CW-02- Bidding completed, to be NCB Huaxing Town (Hengkeng area) 01 implemented Datian Subproject: supply of FJ-DT-GS-04- 100,000 tea seedlings and 20,000 NCB Completed 01 shelter forest seedlings Luyin Subproject: 4,460 mu oil tea FJ-JCLY-CW- NCB Completed field facility improvement 01 Luyin Subproject: 4,460 mu oil tea FJ-JCLY-CW- NCB Completed field water facility improvement 02 Luyin Subproject: 4,460 mu oil tea Fujian Luyin FJ-JCLY-GS- garden—shelter forest and Shopping Completed 3 Agriculture Co., 01 ecological conservation Ltd. Luyin Subproject: 4,460 mu oil tea FJ-JCLY-GS- Shopping Completed garden—pest control equipment 03 Luyin Subproject: 4,460 mu oil tea FJ-JCLY-GS- garden—supply of 90,000 oil tea NCB Completed 02 seedlings Longyan Longyu Yongding Subproject: 5,565 mu oil FJ-YDLY-CW- Ecological tea garden—lowland and water NCB Ongoing 04 4 Industry infrastructure improvement Development Yongding Subproject: 5,565 mu oil FJ-YDLY-GS- Shopping Ongoing Co., Ltd. tea garden—seedling supply 03 5,000 mu paddy field —water and FJ-WYS-CW- ecological revetment infrastructure NCB Completed by 90% 01 improvement 5,000 mu paddy field —water, Wuyishan Zhuzi transportation and ecological FJ-WYS-CW- 5 Eco-agriculture NCB Completed by 50% revetment infrastructure 02-02 Co., Ltd. improvement 5,000 mu paddy field—traffic and FJ-WYS-CW- 10,000 lotus garden road NCB Completed 02 construction Ninghua State-owned Farm: Oil tea garden improvement and FJ-NHLC-CW- NCB Completed by 72% Ninghua County infrastructure construction in 06 State-owned Zhongsha Xiang 6 Eco-forest Farm Ninghua State-owned Farm: Oil tea Co., Ltd. garden improvement and FJ-NHLC-CW- Shopping Completed by 89% infrastructure construction in 07 Zhongsha Xiang in Jicun Xiang 3,800 mu tea garden FJ-FANK- CW- Fujian Farms improvement—land leveling and NCB Completed by 20% Agribusiness Tea 01-01 7 infrastructure construction Co. Ltd. 500 mu digital (smart) eco-tea FJ-FANK-GS- NCB Completed by 20% garden demonstration 02 Pinghe Subproject: integrated pest Fujian Xinghe FJ-PH-GS-03 NCB Ongoing control Investment & 8 Pinghe Subproject: farm product Development quality and soil testing—soil testing FJ-PH-GS-04 NCB Completed Group Co., Ltd. equipment purchase

4 Bidding Implementation No. Owner Contract Package Contract No. mode Progress Pinghe Subproject: oil tea garden FJ-PH-CW-01- construction in Qiling Xiang— NCB Completed by 60% 01 tractor and operation roads Pinghe Subproject: 5,966 mu green FJ-PH-CW-01- oil tea garden construction in Qiling NCB Bidding underway 02 Xiang—infrastructure Pinghe Subproject: 1,880 mu organic tea garden construction in FJ-PH-CW-03 NCB Preparing for re-bidding. Jiufeng Town Pinghe Subproject: 1,506 green tea garden construction in Jiufeng FJ-PH-CW-04 NCB Preparing for re-bidding. Town Pinghe Subproject: 5,050 mu green Completed by 90% FJ-PH-CW-05- grapefruit garden construction in NCB (Design change 01 Banzai Town—infrastructure excluded) Source: fieldwork / 2019 procurement plan

1.4 Profiles of External Social Monitoring in this Round 8 According to the safeguard requirements of ADB loan project, Sichuan Fontal Strategic Consulting Co., Ltd. had been recruited by PMO as the external monitoring agency. The scope of monitoring includes the RF, RAP (if any prepared), SDAP, GAP, CPP ,GRM and the implementation of the LURT and land cooperation contracts signed between PIUs and villages/farmers.

9 According to the TORs and the Resettlement Framework (RF), Social Development Action Plan (SDAP) prepared at the preparation stage, the external monitor conducted a third round of M&E on social safeguards and social dimensions with the assistance of the provincial PMO, municipal / county PMOs, IAs, and township governments during August 3-7, 2020. The methods used included literature review, FGD, key informant interview, and door-to-door survey.

10 The IAs approved by ADB for the mid-term adjustment have got new components that meet the project requirements. ADB, the Fujian Provincial Department of Agriculture and Rural Affairs, and the IAs are further screening and confirming the new components. Social safeguard documents will be prepared separately for these new components, and submitted to ADB for review. Therefore, this report covers the components under the 8 existing IAs.

11 Although the number of IAs has decreased and the scope of construction, project area and beneficiary population changed, the remaining IAs will still implement the remaining subprojects in accordance with the RF, SDAP and GAP. This round of social M&E focused on:

1) Change in the scope of construction of each subproject, and its affected area and population; 2) Cumulative progress of each subproject; 3) Field survey and land examination on all ongoing construction contracts, and review on land use right transfer (LURT) and cooperation contracts of the 4 IAs involve LURT and land cooperation; 4) SDAP and GAP implementation progress; 5) Sampling survey on benefits for different groups; 6) Information disclosure and grievance redress; and 7) Key issues, recommendations and subsequent work plan.

12 In this round of M&E, the task force monitored social development and resettlement/LURT activities comprehensively. It not only learned local socioeconomic profile from local agencies, but also conducted a sampling survey on the APs. See Appendix 3 for fieldwork photos.

5 2 Social Safeguards Categories and Impacts Screening 2.1 Impacts Screening on Involuntary Resettlement 13 By the date of this report, the monitoring team had conducted a field survey and resettlement impact identification on the 20 construction contracts (19 with bidding completed and 1 in bidding process). The remaining procurement contracts (non-construction contracts) do not involve any impacts of land use. The 20 ongoing construction contracts do not involve any additional LA and/or HD impacts during implementation stage. A component screening form has been submitted for each ongoing subproject to the provincial PMO. See Table 2-1 for resettlement impacts screening and Appendix 4 for component screening forms6.

14 To avoid disputes arising from land occupation for road construction or irrigation facility reconstruction, each local PMO will hold a meeting before construction to solve any relevant issue and develop mitigation measures. For the ongoing construction contracts, the local PMOs have conducted land consultation to varying degrees. In this round of M&E, Longyan Longyu Ecological Industry Development Co., Ltd., Fujian Xinghe Investment & Development Group Co., Ltd., Wuyishan Zhuzi Eco-agriculture Co., Ltd. and Fujian Farms Agribusiness Tea Co. Ltd. held over 15 such special meetings before construction, with over 268 participants in total, including 115women (42.91%) and 43 poor residents (16.04%). See Appendix 5 for relevant minutes.

Table 2-1 Summary of Resettlement Impacts Screening Contract Implementation Involving No. Owner Contract Type No. Progress LA/HD? FJ- Longyan 4,000 mu paddy field—water XLLD- Ongoing Construction No Green Land infrastructure improvement CW-01- Eco- 01 1 agriculture FJ- Development 2,000 mu paddy field XLLD- Ongoing Construction No Co., Ltd. protection CW-06- 01 Low-yield oil tea garden and low-yield farmland FJ-DT- Ongoing Construction No improvement in Qianping CW-01 Xiang Tea garden and low-yield FJ-DT- Datian farmland improvement in CW-05- Ongoing Construction No County Jiyang Xiang 01 Golden Tea garden and low-yield FJ-DT- 2 Phoenix farmland improvement in CW-05- Ongoing Construction No Agricultural Jiyang Xiang (Shangfeng 02 Development area) Co., Ltd. Tea garden and low-yield FJ-DT- farmland improvement in CW-08- Ongoing Construction No Wushan Xiang 01 Tea garden and low-yield FJ-DT- Bidding farmland improvement in CW-02- completed, to be Construction No Huaxing Xiang 01 implemented Fujian Luyin Luyin Subproject: 4,460 mu FJ- 3 Agriculture oil tea field facility JCLY- Completed Construction No Co., Ltd. improvement CW-01

6 In the first and second round of M&E, the screening table of the 14 subprojects that had broken ground was provided (including FJ-JCLY-CW-01, FJ-JCLY-CW-02, FJ-YDLY-CW-03, FJ-YDLY-CW-04, FJ-NHLC- CW-07, FJ-NHLC-CW-06, FJ-FANK-CW-01-01, FJ-WYS-CW-02-02, FJ-WYS-CW-01, FJ-YDLY-CW-04, FJ- PH-CW-05-01, FJ-PH-CW-01-01, FJ-JCLY-CW-01, FJ-JCLY-CW-01).

6 Luyin Subproject: 4,460 mu FJ- oil tea water facility JCLY- Completed Construction No improvement CW-02 Longyan Longyu Yongding Subproject: 5,565 FJ- Ecological mu oil tea garden—lowland 4 YDLY- Ongoing Construction No Industry and water infrastructure CW-04 Development improvement Co., Ltd. 5,000 mu paddy field in FJ- Wuyishan—water and WYS- Ongoing Construction No ecological revetment CW-01 infrastructure improvement Wuyishan FJ- Zhuzi Eco- 5,000 mu paddy field—traffic 5 WYS- agriculture and ecological revetment Ongoing Construction No CW-02- Co., Ltd. infrastructure improvement 01 5,000 mu paddy field—traffic FJ- and ecological revetment WYS- Completed Construction No infrastructure improvement CW-02 Ninghua State-owned Farm: 844 mu low-yield oil tea garden improvement, land FJ- consolidation and cultivation, NHLC- Ongoing Construction No irrigation and drainage CW-06 Ninghua improvement, field road and County protection works in Zhongsha State-owned Xiang 6 Eco-forest Ninghua State-owned Farm: Farm Co., 166 mu low-yield oil tea Ltd. garden improvement, land FJ- consolidation and cultivation, NHLC- Ongoing Construction No irrigation and drainage CW-07 improvement, field road and protection works in Zhongsha Xiang in Jicun Xiang Pinghe Subproject: oil tea FJ-PH- Fujian garden construction in Qiling CW-01- Ongoing Construction No Xinghe Xiang—tractor and operation 01 Investment & roads 7 Development Pinghe Subproject: 5,050 mu FJ-PH- Group Co., green grapefruit garden CW-05- Ongoing Construction No Ltd. construction in Banzai 01 Town—infrastructure Fujian Farms 3,800 mu tea garden FJ- Agribusiness improvement—land leveling FANK- 8 Ongoing Construction No Tea Co. Ltd. and infrastructure CW-01- construction 01

15 The task force has learned that most components involve the reconstruction of existing roads, flood canals, etc., and do not involve permanent land use. However, some components will inevitably involve temporary land use during construction. Based on key informant interviews (contractor managers, village heads, etc.), since all components are public welfare works highly expected by local residents, unused land in villages is usually available for temporary use. See Appendix 6 for survey records on temporary land use. 2.2 Screening on Indigenous People (IP) 16 Although there are some individual ethnic minority residents in project area, there are no ethnic

7 minority gathering communities in project areas. Therefore, it can be confirmed that the project does not trigger the indigenous people policy of ADB during implementation stage.

8 3 Implementation Monitoring on LURT/Land Cooperation 3.1 Profiles on LURT and Land Cooperation 17 According to the land utilization manner under the Project, a total of 122,590 mu of land was expected to be used, including 51,506 mu public welfare land, 17,381 mu state-owned land (land use rights belong to enterprises, do not need to pay land rent, etc.), 53,703 mu collectively owned land (including 10,068 mu of land transfer land, 4,210 mu of land cooperation land). The latest land use status of each sub-project is detailed in Table 3-1. Table 3-1 Land Use Statistics during Project Implementation Contracts of Contracts of Public State- Collectively Land Benefi Benefic welfare owned -owned LURT cial ial NO PIU Cooperation Area Land Area Land Area House Popula Area(m Land(mu) (mu) (mu) Quantity Area(mu) Quantity holds tion u) Ninghua State-owned 1 Ecological Forestry Co., 0 844 166 0 0 2 1010 71 306 Ltd Fujian Farms 2 Agribusiness Tea Co. 0 5,300 3,200 0 0 3 3,200 1,255 5,020 Ltd. Fujian Lvyin Agriculture 3 0 0 4460 52 4,460 0 0 510 1,897 Co., Ltd Wuyishan Zhuzi Eco- 4 agriculture Development 15,000 0 15,000 0 0 0 0 1,853 7,412 Co., Ltd. Longyu Ecological 5 Industry Development 0 0 5,608 2 5,608 0 0 127 483 Co., Ltd. Longyan Greenland 6 Eco-agricultural 6,0007 0 6,000 0 0 0 0 4,293 12,362 Development Co., Ltd Datian Golden Phoenix 7 Agricultural 10,000 0 10000 0 0 0 0 1,500 6,800 Development Co., Ltd. Fujian Xinghe Investment and 8 20,506 11,237.33 9,269.16 0 0 0 0 6,323 25,903 Development Group Co., Ltd. Total 51,506 17,381 53,703 54 10,068 5 4,210 15,932 60,183

18 According to land utilization manners of the Project, 4 IAs use 51,506 mu land for public welfare without any needs of land contract. The remaining 4 IAs have entered into 59 land contracts in total, all the contracts were reviewed in the first & second round of M&E, indicating that these contracts comply with the ADB policy, and applicable PRC laws and regulations. There’s no new land contract signed during this M&E. These 4 IAs totally use 19,578 mu land and brought direct benefits to 7,706 persons of 1,963 families. See details in Table 3-2.

Table 3-2 Land Cooperation/Transfer Used by 4 IAs Involving Land Contracts State- owned Collectively- Number of Cooperation Beneficial S/N Name of PIU City/County/District Crops Land owned Land Beneficial Mechanism Population Area Area (mu) Households (mu) Ninghua State- Land 1 Ninghua Oil-tea 844 166 71 306 owned Eco- cooperation

7 Longyan Greenland Eco-agricultural Development Co., Ltd have cancelled some project components, these cancellations have been approved during this round of M&E, thus the public welfare area land, collectively-owned land area, and beneficial HHs are updated accordingly.

9 State- owned Collectively- Number of Cooperation Beneficial S/N Name of PIU City/County/District Crops Land owned Land Beneficial Mechanism Population Area Area (mu) Households (mu) forestry Co., Ltd. Longyan Longyu Eco- 2 industrial Yongding Oil-tea 0 5608 Land transfer 127 483 Development Co., Ltd. Fujian Luyin 3 Agriculture Jiaocheng Oil-tea 0 4460 Land transfer 510 1897 Co., Ltd. Fujian Farms Land 4 Agribusiness Fu’an Oil-tea 5300 3200 1255 5020 cooperation Tea Co. Ltd.

Total 6144 13434 / 1963 7706

3.2 Implementation Monitoring on LURT 19 According to the latest monitoring, there are 54 LURT contracts signed under this project, among which 52 agreements were signed directly with the villagers and 2 agreements were signed directly with village committee, involving a total land area of 10,068 mu of Collectively-owned Land; See Table 3-3. Table 3-3: Contracts of LURT during project implementation State-owned Land Collectively-owned Land Contracts of LURT PIU Area Area Remarks (mu) (mu) quantity area (mu) Fujian Luyin 0 4460 52 4460 signed with Villagers Agriculture Co., Ltd.. Longyu Ecological Industry signed with Village 0 5608 2 5608 Development Co., committee Ltd. Total 0 10068 54 10068

20 In the first and second round of M&E, it is confirmed that 54 of the LURT contracts under the project are in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The implementation of these LURT contracts are going well, and land rentals had been fully paid to involved village committees and villagers in a timely manner.

21 In this round of M&E, the M&E team have interviewed villager reps who signed LURT contract with Fujian Luyin Agriculture Co., 16 randomly sampled HHs were interviewed, accounting for 30.77% of the total HHs. See Appendix 7 for Land transfer contract / Land transfer payment voucher, and detail interview record. A brief interview summary as below:

22 All the 16 sampled HHs are fully consulted before signing LURT contract, and the agreement were signed on their free-will. The rent for slope land is CNY 20/mu*year, all the interviewed 16 HHs believe the rent fee is fair and based on market value. All the 16 HHs have received payment in time, the payment record from Luyin Agriculture Co. Ltd. showed all 52 HHs have received payment in time.

23 14 HHs (87.5%) participated LURT because the land productivity is low, other 2 HHs (12.5%) participated LURT because lack of labor. All 16 HHs believe they’ve benefited in LURT, before LURT, most of the land is idled without profit, now they can receive land rental fee, have job opportunities near their home, and enjoy improvement on road and infrastructures (such as irrigation system and

10 small reservoir).

3.3 Implementation Monitoring on Land Cooperation 24 According to the latest monitoring, there are 5 land cooperation contracts signed under this project, among which 2 agreements were signed directly with the enterprise and 3 agreements were signed directly with farmer’s cooperative, involving a total land area of 4,210 mu of Collectively- owned Land; See Table 3-3.

25 According to latest monitoring, there were no change on Land Cooperation and land use. It is confirmed that all the 5 land cooperation contracts in the project are in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The implementation of land cooperation contracts is smooth so far, and cooperation mechanisms remain unchanged.

Table 3-3 Land Area of LC during project implementation State-owned Land Collectively-owned Contracts of Land PIU Area Land Area Cooperation Remarks (mu) (mu) quantity area (mu) Ninghua State- Signed with owned Eco- 844 166 2 1010 enterprises forestry Co., Ltd. Fujian Farms Signed with Agribusiness Tea 5300 3200 3 3200 Farmers’ Co. Ltd. cooperative Total 6144 3366 5 4210 Note: (1)166 mu of collective land comes from the land transfer contracted by the cooperative enterprise with the village committee in Ninghua; (2) The use right of the 5,300 mu of state-owned land of the Fujian Farms Agribusiness Tea Co. Ltd. is owned by the company itself.

26 There are 5 land cooperation agreements (see Table 3-3), for which land use right will not be changed and the land will still be collective owned and contracted to farmer households. The land cooperation agreements are compliant with relevant regulations. The principle of benefit sharing between enterprises and farmer’s cooperative was followed as well. In addition to land cooperation, farmers can also benefit from the collectives and/or farmer’s cooperatives, and enjoy the opportunities to participate in these subprojects for earning more incomes. see Interview Minutes with Farmers’ Cooperatives in appendix 10. Table 3-4: Land Cooperation Mechanism Cooperation mechanism (company/farmer S/N IAs cooperative/) Ninghua State-owned Eco- 1 80%:20% (annually) (benefit sharing) forestry Co., Ltd. Fujian Farms Agribusiness Tea 2 Total products sales 50%:50% (monthly) Co. Ltd.

11 4 Implementation Monitoring on Gender and Social Development Plans

27 In this round of M&E, the IAs conducted planned activities under the SDAP and GAP prepared earlier in order to minimize the Project’s negative social impacts, especially impacts on vulnerable groups (including the poor, women, old people and the disabled). The progress is as follows: 1) The Fujian Provincial PMO has established a systematic organizational structure to plan, coordinate, implement and monitor social development and land use related activities. Each of the 8 IAs has appointed 1-2 members to implement the RF, LURT framework, SDAP and GAP. The provincial PMO has organized site visits, and project management training and exchanges, including 12 trainings from April 2018 to June 2020. In 2020, due to COVID-19 epidemic, 3 trainings were carried out via online meeting, or on-site small training and sharing sessions. 2) The IAs have offered extensive skill training to villagers, however, due to COVID-19 epidemic, only 7 trainings were held from January to June 2020. Trainings on cultivation skills, startup, seedling care, etc. was offered to 228 persons in total, including 143 women (49.65%) and 159 poor residents (55.21%). There’re 8 trainings organized from November to December 2019, were not covered in No.2 M&E report, the data was updated in this report. Since project inception, skill training has been offered to 5,076 persons in total, including 2,062 women (40.62%) and 634 poor residents (12.49%). Some IAs have offered training to non-AHs. From January to June 2020, 7 agricultural skill trainings were offered to 225 persons from non-AHs in total, including 117 women and 125 poor residents. 3) Construction has created considerable employment and procurement opportunities: From January to June 2020, the Project generated about 786 jobs, including 118 permanent and 668 temporary ones, including 343 women and 251 poor residents. Since project inception, the Project generated about 7,183 jobs, including 217 permanent and 6,966 temporary ones, including 4,667 women and 976 poor residents. Due to COVID-19 epidemic, most project started sitework after March 2020, the job opportunities are impacted as well. The wage in some subproject (e.g. Pinghe) went up due to laborer shortage. 4) 13 contractors have participated in project construction, with a total procurement amount of 40.51 million yuan to date. No labor dispute or appeal has occurred to date. 5) For the 18 ongoing contracts, the IAs have disclosed construction information by means of publicity meeting, announcement, etc. By the date of this report, there was no documented pending appeal, and all feedback on temporary construction impacts had been handled properly. 6) The type of land cooperation has been made clear before contract signing, and contracts are entered into by IAs and AHs voluntarily through consultation. To avoid any dispute arising from land occupation for road construction or irrigation facility reconstruction, From January to June 2020, the local PMOs have held 13 such special meetings before construction, with over 258 participants in total, including 110 women (42.64%) and 41 poor residents (15.89%). Due to COVID-19 epidemic, PMOs, local township governments and villagers use online communication tools, such as WeChat Group, and one-to-one communication to disclose project information. 7) The PPMO has appointed social and environmental experts for internal monitoring. The internal monitoring report will be submitted in September 2020, and the draft No.3 external M&E report was submitted at the end of August 2020. Sichuan Fontal Strategic Consulting Co., Ltd. will monitor and evaluate RF, SDAP and GAP implementation, and submit M&E reports to the provincial PMO and ADB semiannually as the external M&E agency. See Table 4-1 for details. 28 In this round of M&E, the PMOs and IAs also conducted planned activities under the GAP prepared earlier in order to mainstream social gender and to address gender related issues during implementation stage, including: i) providing sufficient project management staff and implementation consultants to monitor the GAP effectively; ii) enabling women to participate all project activities effectively, including training and employment; iii) fulfilling the employment target for women at the construction stage where possible; and iv) ensuring that men and women receive equal remuneration and working conditions. See Table 4-2 for more details.

12 Table 4-1 Implementation Status of Social Development Action Plan Progress in this Cumulative Progress Item Proposed action Target group Monitoring indicator monitoring period (as of Jun 2020) (Jan to Jun 2020) A. Measures to Strengthen Project Management Offer project management Online GAP training was The PMO has organized training to the provincial, city 50 men-days of project offered to PPMO and 12 times of training from and county PMOs, and management training PMO staffs on 30 Jun April 2018 to Jun 2020. 7 township and village staff. 2020 by ADB gender times of project Provincial, city specialist. On-site one- management training, 5 Train the county PMO staff on and county 200 men-days of SDAP and to-one on SDAP and times of social and IA staff training the SAP and GAP. PMOs, township GAP training GAP guidance was gender-related training. and village 20 persons responsible for offered to PMOs on with more than 223 officials SAP and GAP implementation January. participants. Photos and record forms of 23 persons, 11.5 men- trainees days in total. See Appendix 8. The provincial, city and county Each of the 8 IAs has 16 people form IAs has PMOs appoint staff to be appointed 1-2 members appointed to implement responsible for GAP, SAP and 20 persons responsible to implement the SAP the SAP and GAP. RAP implementation and and GAP. These monitoring. members are stable. The PPMO has As of Jun 2020, 2 internal Ensuring the appointed social and monitoring reports have implementation of IAs and local environmental experts been submitted and 2 the GAP, SAP, farmers for internal monitoring. external monitoring RAP and EMP Monitoring reports on all social The internal monitoring reports have been safeguard measures report will be submitted submitted. in September 2020, and the No.3 external M&E report was submitted at the end of August 2020. Project information The county PMOs and Number of participants and For the 9 ongoing As of Jun 2020, there disclosure township governments hold time contracts, the IAs have have been 1014

13 meetings to agree on the disclosed construction participants, including project site, range, and starting information by means of 403 women (39.74%) and ending times. publicity meeting, and 94 poor residents announcement, etc. (9.27%). Photos and From January to June minutes see Appendix 9. All affected 2020, 268 persons villages and Photos and minutes attended consultation persons and information disclosure meetings in total, including 115 women and 43 poor residents. 8 B. Measures to Mitigate Project Potential Negative Impact The county PMOs should By the date of this There was no schedule construction properly report, there was no documented pending to reduce impacts on local documented pending appeal. farmers. appeal, and all Number of appeals about feedback on temporary Reducing project All affected construction impacts received construction impacts impacts on local villages and had been handled agriculture persons properly. See Appendix 6. Construct waste collection No environmental No environmental appeal Satisfaction of locals with stations to avoid pollution. appeal has occurred to has occurred to date. environmental management date. The county PMOs will hold a Number of participants, time, From January to June There were total 27 meeting before construction to minutes and photos 2020, 13 such special special meetings have Avoiding disputes solve any relevant issue and Effect of appeal mechanism meetings have been been held, with over 558 arising from land develop mitigation measures. County PMOs, held before participants in total, occupation for road all affected construction, with over including 263 women and construction or villages and Number of disputes, 258 participants in total, 78 poor residents. irrigation facility households dispositions and monitoring including 110 women reconstruction report (42.64%) and 41 poor residents (15.89%). See Appendix 5.

8 Due to COVID‐19 Epidemic, the meetings and townhalls are reduced, but both the IAs, township officials and village leaders are using WeChat Groups to disclose project information and resolve project related issues. See interview records.

14 Introduce project details to There are no non-AHs There are no non-AHs Number of extra households non-AHs, and encourage them participating in the participating in the and cooperatives participating to accept the cooperation Project through Project through in the Project through mode, and participate in the cooperation with any IA cooperation with any IA cooperation Project. yet. yet. Provide the same training and Frequency of training, and However, some IAs technical support to them. results of such support have offered training to Avoiding conflicts non-AHs. From July to Since project inception, with nearby villages Non-AHs, non- December 2019, 7 skill training has been and households IAs, affected agricultural skill training offered to 4,950 persons (out of the project villages and IAs was offered to 225 from non-AHs in total, area) persons from non-AHs including 2,009 women Benefits for non-AHs (case in total, including 117 (40.59%) and 601 poor analysis) women and 125 poor residents (12.14%). 9 residents. Benefits of such cooperation for non- AHs will be covered in the next report. Explain the cooperation mode The type of cooperation The county PMOs and in advance, such as land input has been made clear village committees Number of participants, photos or farm product ordering, and before contract signing, participate in contract and records enter into cooperation and contracts are signing, external contracts. entered into by IAs and monitoring team conduct The county PMOs and village AHs voluntarily through due diligence on land committees participate in Satisfaction of local farmers consultation. See use. see Appendix 7 All affected Reducing contract signing, and conduct with such cooperation Appendix 6. villages and cooperation risks due diligence on land use. households The external M&E agency Sichuan Fontal It is confirmed that all the reviews cooperation contracts, Strategic Consulting 5 land cooperation and reflects this in the social Co., Ltd. reviewed agreements in the project safeguard report. contracts and reported are in accordance with relevant information in PRC laws and the No.1&2 external regulations, as well as M&E report. ADB’s relevant policies. C. Measures to Enhance Project Benefits

9 8 Trainings held in November to December 2019 were not covered in No.2 M&E report, the data was updated in this M&E report. These training involving non‐AHs 227 persons, including 97 women and 5 poor residents.

15 Support 73 local farmers’ There are 11 farmers’ There are 30 farmers’ cooperatives to promote their cooperatives under the cooperatives under the development. Project, which need Project, detailed files Supporting local 73 cooperatives and details further confirmation. have been established farmers’ Project area (name, foundation time, Detailed files have been for them. cooperatives location, nature, scale, etc.) established for them, and relevant training offered. See Appendix 10. Offer 62,990 men-days of From January to June Since project inception, training to farmers, in which 2020, training on skill training has been 50% are women and 10% poor cultivation skills, startup, offered to 5,076 persons residents (5 years). seedling care, etc. was in total, including 2,062 Strengthening skill Local women Number of trainees, training offered to 288 persons women (40.62%) and training and and poor materials, semiannual reports, in total, including 143 634 poor residents guidance residents training program and data women (49.65%) and (12.49%). 11 159 poor residents (55.21%). See Appendix 11.10 Employ local laborers to From January to June Since project inception, participate in project 2020, the Project the Project generated construction. generated about 786 about 7183 jobs, Number of laborers employed jobs, including 118 including 217 permanent Attracting local and income change arising APs, including permanent and 668 and 6966 temporary laborers to from employment women and temporary ones, ones, including 4667 participate in poor residents including 343 women women and 976 poor project construction and 251poor residents. residents. Contractors provide See Appendix 12. information on casual labor Records and photos demand and requirements.

10 Due to COVID‐19 epidemic, training meetings in all counties/district are reduced, but both IAs and local agricultural bureau, and farmers’ cooperatives are using creative measures to continue their technical support to local farmers, such as WeChat Group, video and photo sharing. See interview records. 11 8 Trainings held in November to December 2019 were not covered in No.2 M&E report, the data was updated in this M&E report. These training involving 340 persons, including 124 women and 4 poor residents.

16 The county labor and social No labor dispute or No labor dispute or security bureaus review appeal has occurred to appeal has occurred to employment contracts, and date. date. Number of labor disputes and villages recommend villagers appeals during construction for construction (including women and poor residents) to increase their income. Hold a seminar to learn local Local residents have Since project inception, residents’ opinions on and expressed opinions on there have been 1,014 Number of participants, expectations for the Project, in and expectations for the participants, including photos, records and minutes which at least 50% are women Project. See Appendix 403 women (39.74%) and 10% poor residents. 13. and 94 poor residents Give priority to women (not From January to June (9.27%). less than 35%) and poor 2020, 268 persons residents (not less than 10%) attended consultation when recruiting casual laborers Proportion of women attending and information

(if they are willing). meetings disclosure meetings in total, including 115 women and 43 poor residents. Women’s federations, poverty From January to June Proportion of poor residents Encouraging reduction offices organize 2020, 43 poor residents attending meetings women and poor women and poor residents to attended meetings. residents to attend training to improve their 786 jobs have been 7,183 jobs have been participate in the Total number of jobs offered capacity (not specified for the offered in total. offered in total Project Project) Number of jobs offered to 343 jobs have been 4,667 jobs have been women offered to women. offered to women. 251 jobs have been 976 jobs have been Number of jobs offered to poor APs, including offered to poor offered to poor residents. residents women and residents. poor residents From January to June Since project inception, 2020, training on skill training has been cultivation skills, startup, offered to 5,076 persons Frequency of training offered seedling care, etc. was in total, including 2,062 by local women’s federations, offered to 288 persons women (40.62%) and and number of women trained in total, including 143 634 poor residents women (49.65%) and (12.49%). 159 poor residents (55.21%).

17 The IAs will generate full-time The IAs have offered The IAs have offered Temporary jobs offered by IAs and part-time jobs, which will 195 temporary jobs. 6493 temporary jobs. be first made available to The IAs have offered 10 The IAs have offered 109 Permanent jobs offered by IAs women (not less than 35%) APs, including permanent jobs. permanent jobs. Jobs offered by IAs and poor residents (not less women and 131 jobs have been 1455 jobs have been to local residents Number of jobs offered to than 10%). poor residents women offered to women. offered to women. 105 jobs have been 830 jobs have been Number of jobs offered to poor offered to poor offered to poor residents. residents residents. Utilize local building materials Number of local enterprises 11 contractors have 13 contractors have and transport resources where participating in construction participated in project participated in project Utilizing local possible. Quantities of local building construction, with a total construction, with a total building materials IAs, affected materials purchased procurement amount of procurement amount of and transport villages Costs of local transport over 20.51 million yuan over 40.51 million yuan resources resources utilized to date. to date. Income and opportunities D. Monitoring and Evaluation Conduct internal monitoring on Quality of monitoring reports The internal monitoring As of Jun 2020, there SDAP and GAP report will be submitted were 2 internal M&E on SAP and implementation semiannually, SDAP and GAP in September 2020, and monitoring reports and 3 GAP and external M&E annually. monitoring Submission schedule of the No.3 external M&E external monitoring implementation reports monitoring reports report was submitted at reports have been the end of August 2020. submitted.

Source: fieldwork / IA

18 Table 7-1 Summary of GAP Activities and Progress Progress in this monitoring period Cumulative Progress (as of Jun Output Action Target (Jan to Jun 2020) 2020) Hold a consultation meeting The participation rate of From January to June 2020, 268 Since project inception, there have and an information women is not less than 50% persons attended consultation and been 1,014 participants, including 403 disclosure meeting in the (currently: 30%), and that of information disclosure meetings in women (39.74%) and 94 poor project area before poor residents not less than total, including 115 women and 43 residents (9.27%). implementation to introduce 10%. poor residents. the Project, and learn local residents’ opinions, attitudes Output 1: and expectations. Fertile Give priority to women and Not less than 35% of casual From January to June 2020, the Since project inception, the Project Farmland poor residents when laborers employed (58,200 in Project generated about 786 jobs, generated about 7,183 jobs, including Creation recruiting casual laborer at total) are women, and not less including 118 permanent and 668 217 permanent and 6,966 temporary the implementation and than 10% poor residents. temporary ones, including 343 ones, including 4,667 women and 976 operation stages. women and 251 poor residents. poor residents. Land contracts are signed by At least 75% of such contracts No new land contracts signed during In No.2 of M&E, Longyu entered into a couples. are signed by couples (to be this round M&E. new land transfer contract with verified during the first year Shanxia Village. Over 40% of transfer M&E survey). contracts were signed by couples. Offer training to the Training for female From January to June 2020, special Each IA has at least one female management staff for 1,520 management staff is not less training has been offered for not less member responsible for social and men-days in total. than 532 men-days (35%). than 8 men-days. Women attendance gender monitoring. Special training Output 2: not less than 4 men-days. has been offered for not less than 558 Sustainabl men-days. Women attendance not e less than 229 men-days. Cultivation The IAs give priority to Not less than 35% of casual From January to June 2020, IA have Since project inception, The IAs have and women when recruiting local laborers employed (3,200 in The IAs have offered 195 temporary offered 6,493 temporary jobs, and 109 Farming employees. total) are women, and not less jobs and 10 permanent jobs. 131 jobs permanent jobs, 1,455 jobs have been Practices than 10% poor residents. have been offered to women offered to women (22.4%), and 976 (67.18%). 105 jobs have been offered poor residents (15.03%). to poor residents (53.85%). Output 3: Each county PMO appoints The county PMOs appoint at Except the provincial PMO, 8 IAs has Except the provincial PMO, 9 IAs has Institutiona one female member least 13 female members. at least one female member at least one female member l Capacity responsible for social and responsible for social and gender responsible for social and gender Building gender issues. monitoring, totaling 8. monitoring, totaling 10.

19 A certain proportion of Training for women is not less From January to June 2020, training Since project inception, the 8 IAs have 62,990 men-days of training than 31,495 men-days (50%), on cultivation skills, startup, seedling offered skill training to 5,076 persons for farmers is available to and that for poor residents not care, etc. was offered to 288 persons in total, including 2,062 women women and poor residents. less than 6,300 men-days in total, including 143 women (40.62%) and 634 poor residents (10%). (49.65%) and 159 poor residents (12.49%). (55.21%). Offer gender development Number of trainees The 8 IAs have assigned 20 persons The 9 IAs have assigned 23persons to training to the provincial and to attend relevant training in total. attend relevant training in total. county PMOs, and IAs. Offer training on At least 7,500 men-days, in From January to June 2020, training Since project inception, skill training management, maintenance, which not less than 30% of on management, maintenance. was has been offered to 1,757 persons in etc. to IAs, cooperatives, participants are women offered to 227 persons in total, total, including 781 women (44.45%) water users association, etc. including 101 women (44.49%) and and 356 poor residents (20.26%). 60 poor residents (26.43%). 12 The provincial PMO appoints Professionals are appointed to The 8 IAs have assigned about 20 9 PIUs under the project have an external M&E agency to collect relevant information members to collect relevant assigned 1-2 special personnel to take monitor SAP and GAP and data. information and data in total. charge of relevant information and implementation. data on social / gender development on the project. The estimated number of participants is 23. Source: fieldwork / IA

12 3 management, maintenance trainings were held in November to December 2019, but not covered in No.2 M&E report.

20 5. Monitoring Conclusions and Follow-up Actions in Next Steps 5.1 Social Safeguards Screening and Monitoring

29 To date, 11 subprojects are to withdraw from the Project, and there are only 8 remaining IAs. By the date of this report, procurement under 31 contracts had begun, including 27 subject to NCB and 4 subject to shopping.

30 Until now, this project does not involve any impacts of land acquisition and resettlement (LAR). So ADB’s Involuntary Policy is not triggered, yet no RP need to be prepared.

31 After investigation during implementation stage, it was confirmed that all subprojects will not involve impacts related to ethnic minorities. Although there are some individual ethnic minority residents in the project area, there are no ethnic minority gathering communities in project areas. Therefore, it is confirmed that the project does not trigger the indigenous people policy of ADB.

5.2 Land Use Rights Transfer (LURT) and Land Cooperation Implementation and Monitoring

32 In term of LURT, according to the latest monitoring, there are 54 LURT contracts , among which 2 signed with village committees and 52 signed directly with farmers under this project, which involving a total land area of 10,068 mu of collectively-owned Land;

33 According to the latest monitoring, there are 5 land cooperation contracts signed under this project, among which 2 agreements were signed directly with the enterprise and 3 agreements were signed directly with farmer’s cooperative , involving a total land area of 4,210 mu of Collectively- owned Land

34 It is confirmed that all the LURT and land cooperation contracts under the project are be implemented in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The LURT and land cooperation contracts are all well implemented so far, and land rentals and/or benefits have been paid timely and fully following these contracts.

5.3 Implementation Progress of Gender and Social Development Plans

35 GAP and SDAP are under implementation in 8 remaining subprojects. The SDAP and GAP are being implemented orderly. Since project inception, 1,014 persons have been involved in participation activities, 5,076 persons have received agricultural skill training, and 7,183 persons have been employed in total. Local women and poor residents participate in and benefit from the Project equally, and the respondents in the sampling survey are highly satisfied. 5.4 Development of Farmers’ Cooperatives

36 Up to now, about 11 cooperatives are under operation in implementation in 8 remaining subprojects, The implementation of the Project will help these farmers’ cooperatives improve technical facilities or improve the land quality so that to help involved local farmers to develop production and get expected social and economic benefits.

37 In addition to financial supports to farmers’ cooperatives, technical training and guidance were also provided 5,076 persons in total, including 2,062 women (40.62%%) and 634 poor residents (12.49%). Under the organization of PPMO, social experts will provide training on relevant knowledge to farmers’ cooperatives and households involved in LURT/land cooperation according to the needs of the CPMOs and PIUs.

21 5.5 Information Disclosure and Grievance Redress

38 According to the survey, most of the 8 IAs consulted with local governments and residents on construction scope, program, etc. at the preparation stage, and prepared minutes. For any ongoing contract, its construction scope and period, environmental requirements, and grievance redress procedure have been disclosed.

39 At the preparation and implementation stages, all IAs have conducted extensive consultation with the AHs, including discussion, land lease meeting, project publicity, etc. From January to June 2020, 268 persons attended consultation and information disclosure meetings in total, including 115 women and 43 poor residents. Since project inception, there have been 1,041 participants, including 403 women (39.74%) and 94 poor residents (9.27%). 1) Farmer consulting meetings have been held regularly to learn their needs and issues, and provide reasonable assistance timely. To avoid any dispute arising from land occupation for road construction or irrigation facility reconstruction, From January to June 2020, the local PMOs have held over 13 such special meetings before construction, with over 258 participants in total, including 110 women (42.64%) and 41 poor residents (15.89%). See Appendix 5. 2) Village discussion meetings are held or project information disclosed before implementation, including project site, scope, starting and ending times, grievance redress mechanism, etc. See Appendix 5. 4) At the implementation stage, extensive training is offered on agricultural and other skills. Since project inception, skill training has been offered to 5,076 persons in total, including 2,062 women (40.62%) and 634 poor residents (12.49%). Some IAs have offered training to non-AHs. From January to June 2020, agricultural skill training was offered 7 times to 225 persons from non- AHs in total, including 117 women and 125 poor residents. See Appendix 12.

40 A grievance redress mechanism (GRM) has been established and well operated, the APs are highly aware of the Project. There was no complaints and appeals received and redressed. Both local PMOs and contractors are using a proactive method to engage with local communities, most construction issues are proactive identified, communicated, and resolved before it become a grievance. See appendix 14.

5.6 Main Issues and Recommendations:  RF: 41 Even the Project is expected to have no significant resettlement impacts, the Asian Development Bank (ADB) has classified the project as category B for involuntary resettlement.

42 But the project will further screen all sub-project during their detailed design to identify potential IR impacts, to determine whether the Project will involve any land acquisition or resettlement, in order to address any potential land acquisition impacts during project implementation.

43 Based on above, it is recommended that: 1) the 8 remaining IAs should submitted the land use Screening Forms to PMOs when they finish project detailed design; 1) Before the project carried out, IAs should make a full discussion with the construction unit and try to avoid any temporary land use in the construction process as far as possible; 2) If some sub-projects involved any involuntary resettlement impacts, IAs should submitted land use Screening Forms to PMO, PMO and IAs need confirm whether any further actions are required (i.e., need to prepare a RP) or not (i.e., no IR impacts or risks); and 3) Provide training on relevant knowledge to farmer’s cooperatives and local farmers involved in LURT/land cooperation according to their needs.

 SDAP & GAP: 44 The SDAP and GAP aim to ensure the maximization of social positive impacts and minimization of social negative impacts of the project, including to promote the gender mainstreaming in project

22 life circle. In this round of M&E,11 sub-projects were dropped out from the Project, so there is only 8 remaining IAs. Some IAs also ask for cancel some components; meanwhile, due to the long preparation time and project adjustment, the progress of the implementation for each sub-project is not same , some have completed the construction, but some sub-projects have not yet begun. Due to COVID-19 epidemic, there’s a risk to organize public information meetings or large training sessions

45 Based on above, it is recommended that: 1) Due to the significant changes of construction content and scope of the project, the monitoring indicators of the social development Action plan (SDAP) and Gender Action plan (GAP) will need to be updated by PMO, and approved by the ADB as soon as possible; 2) Formulate a reasonable implementation schedule and monitoring templates, PMOs and all remaining IAs will need to work closely together to strictly carry out the relevant activities of SDAP and GAP as soon as possible; and 3) Provide training to staff of PMOs, PIUs and other concerned agencies on ADB’s requirements on social safeguards and social dimensions during project implementation; 4) PMOs will need to prepare alternative ways to continue public participation, information disclosure, trainings and technical supports while keep social distance, such as WeChat Groups, video chat or one-to-one communications.

 CPP: 46 At the preparation and implementation stages, all IAs have conducted extensive consultation with the AHs, including discussion, land lease meeting, project publicity, etc. From January to June 2020, 288 persons attended consultation and information disclosure meetings in total, including 115 women and 43 poor residents. Since project inception, there have been 1,014 participants, including 403 women (39.74%) and 94 poor residents (9.27%). Due to COVID-19 epidemic, some of these information disclosure activities were impacted, delayed or cancelled.

47 Based on above, it is concluded and recommended that: 1) consultation meetings were carried out at different times and locations, not only to introduce specific plan contents, but also to encourage villagers to voice their own opinions and suggestions, and their concerns; and 2) In addition, more consultation activities are or will be held during detailed design and project implementation with a focus on female, poor, and other vulnerable groups; 3) PMOs will need to prepare alternative ways to continue public participation and information disclosure while keep social distance, such as WeChat Groups, video chat or one-to-one communications.

 GRM: 48 So far, the project sets up a transparent and efficient grievance redress mechanism (GRM) to settle disputes, the GRM is being well operated, the APs are highly aware of the Project. There was no complaints and appeals received and redressed. 1) PPMO and CPMOs, IAs, contractors should responsible for the fair, transparent and effective operation of GRM together; 2) Establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); 3) Each construction site providing the public with updated project information, the GRM process, and contact names and details for GRM entry points. Prior to project construction, the CPMO will notify all relevant agencies about the project and GRM so that if these agencies receive complaints, they know to contact the PMO and follow up as necessary; 4) A “proactive” mindset is needed during project implementation, PMOs and IAs should proactively engage with local communities, understand their concerns and need, so that the potential issues can be identified, communicated and resolved before it becomes a grievance. 5) Report on progress of the GRM in semi-annual social monitoring and progress reports to ADB.

23 5.7 Next External M&E Monitoring 49 Next external M&E report will be submitted in the end of February ,2021, in which the external monitor will pay attention to the following aspects: 1) Changes to the scope of construction, and implementation progress; 2) Further defining the project area and beneficiary population, and learning the socioeconomic profile and cultivation of the project area; 3) Check If any new contract involves LA and/or HD, and triggers the RF; 4) Land transfer and cooperation implementation status, and benefits for cooperatives, village committees and villagers; 5) SDAP and GAP implementation status, especially how women and poor residents participate in the Project, and if they benefit equally; and 6) Information disclosure, public participation and grievance redress.

24 Appendixes Appendix 1 Beneficiary Area of the Project

Summary of Beneficiary Area of the Project

County / city / No. IA Tonwship Village Beneficiaries district

Xingxian, Wengdun, Wuyi, Wufu, Wuyishan Zhuzi Eco- 1 Wuyishan City Wufu Town Xiwei, Tianwei, Maochang, Dajiang, 7,412 agriculture Co., Ltd. Diancun Jiyang, Jizhong, Panlin, Gaosheng, Jiyang Xiang Yankeng, Daru, Daqian, Guoqing, Shangfeng Shipai, Laocuo, Shangpo, Mashan, Gaishan, Gongqiao, Shikeng, Shipai Town Changxi, Xiaohu, Taoshan, Taokeng, Datian County Golden Aojiang, Sanfang, Xiayang, Longkeng, 2 Phoenix Agricultural Datian County Jingcheng 6,800 Development Co., Ltd. Wengcuo, Taoxin, Guangtang, Taolin, Taoyuan Qiaoshan, Taoyuan, Xi’an, Shangju, Town Qiancuo, Qiancun, Dongfeng Farm, Yangkeng, Doingban, Yulan Qianping, Liming, Fujing, Jikeng, Qianping Huanglong, Shanchuan, Huping, Xiang Shangdi, Xiakeng, Xiadi, Beikeng Jicun Xiang Wuceng Ninghua County State-owned 3 Ninghua County Zhongsha 306 Eco-forest Farm Co., Ltd. Hewu, Lianshe Xiang Longyan Longyu Ecological Yongding Hukeng 4 Industry Development Co., Shanxia 483 District Town Ltd. Longyan Green Land Eco- Shizhong 5 agriculture Development Co., Xinluo District Zhongxin, Zhongxi 12,362 Town Ltd.

Banzai Town Dongkeng

Daxi Town Dasong, Daqin

Fujian Xinghe Investment & Qiling Xiang Guizhu, Xinnan 6 Pinghe County 25,903 Development Group Co., Ltd. Jiufeng Sankeng, Meishan Town

Xiaoxi Town Chankeng, Lianguang, Xilin, Xinqiao

Fujian Luyin Agriculture Co., Jiaocheng Linyangtou, Wushan, Hongmenli, 7 Badu Town 1,897 Ltd. District Handan

Shekou Tanyang Town Fujian Farms Agribusiness Songluo 8 Fu’an District Wangjia 5,020 Tea Co. Ltd. Xiang Chengyang Yangmian Town Total 60,183 Source: fieldwork / IAs

25

Appendix 2 Detailed Description of the Latest Progress of the IAs

Longyan Green Land Eco-agriculture Development Co., Ltd.: As of June 30, 2020 two construction contracts are ongoing, namely 4,000 mu paddy field—water infrastructure improvement, and 2,000 mu paddy field protection, completion rate of both project are over 50%.

Road and flood canal to under construction in Shizhong Town, Xinluo District, Longyan Municipality

Longyan Longyu Ecological Industry Development Co., Ltd.: Bidding and procurement for Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement, and Yongding Subproject: 5,565 mu oil tea garden—seedling supply have been completed. The preparatory work for Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement, the leveling of the 600 mu oil tea garden, and the construction of a 3.54km production road have been completed.

36,000 seedlings cultivated in the oil tea garden of the Yongding Subproject

Fujian Xinghe Investment & Development Group Co., Ltd.: 1) Farm product quality and soil testing equipment has been purchased for procurement contracts FJ-PH-GS-03 (integrated pest control) and FJ-PH-GS-04 (farm product quality and soil testing—soil testing equipment purchase) since September 2019. 2) Construction is ongoing for construction contracts FJ-PH-CW-01-01 (Pinghe Subproject: oil tea garden construction in Qiling Xiang—tractor and operation roads), FJ- PH-CW-01-02 (Pinghe Subproject: 5,966 mu green oil tea garden construction in Qiling Xiang— infrastructure), FJ-PH-CW-05-01 (Pinghe Subproject: 5,050 mu green grapefruit garden construction in Banzai Town—infrastructure). 3) The re-bidding is being prepared for construction contracts FJ-PH-CW-03 (Pinghe Subproject: 1,880 mu organic tea garden construction in Jiufeng Town) and FJ-PH-CW-04 (Pinghe Subproject: 1,506 green tea garden construction in Jiufeng Town). 4) Budget is being prepared for construction contract FJ-PH-CW-02 (Pinghe Subproject: 5,182 mu green grapefruit garden and 89 mu green tea garden in Qiling Xiang).

26

Largely completed road in Dongkeng Village, Banzai Town under the Pinghe Subproject

Wuyishan Zhuzi Eco-agriculture Co., Ltd.: 1) The construction contract FJ-WYS-CW-02 (5,000 mu paddy field—water and ecological revetment infrastructure improvement) has completed by June 2020. 2) The construction contract of FJ-WYS-CW-01 (5,000 mu paddy field—Wanmu lotus pond field) was signed in June 2019; it broke ground in December, and had been completed by 90% by the end of Jun 2020. 3) Bidding for FJ-WYS-CW-02-01 (5,000 mu paddy field—traffic and ecological revetment infrastructure improvement) has finished, the construction is completed by 50% by the end of Jun 2020.

Largely completed road and eco-dike in Wufu Town

Ninghua County State-owned Eco-forest Farm Co., Ltd.: 1) FJ-NHLC-CW-06 broke ground in October 2019, and is completed by 72% by the end of June 2020. 2) FJ-NHLC-CW-07 broke ground in October 2019, and is completed by 89% by the end of June 2020.

Roads and infrastructures completed construction

Datian County Golden Phoenix Agricultural Development Co., Ltd.: 1) The seedling procurement contract FJ-DT-GS-04-01 has been completed; 2) FJ-DT-CW-01-01 (low-yield oil tea garden improvement in Qianping Xiang) is under construction. 3) FJ-DT-CW-01-02 (low-yield oil tea garden improvement in Qianping Xiang) is under construction. 4) FJ-DT-CW-04 Tea garden and low-yield farmland improvement in Jiyang Xiang (Jizhong area) has been completed; 5) FJ- DT-CW-03-01 low-yield farmland improvement in Taoyuan Town (Xi’an area) is under construction. 6) FJ-DT-CW-08-01 tea garden and low-yield farmland improvement in Wushan Xiang (Keshan

27 area) is under construction. 7) FJ-DT-CW-05-02 Tea garden and low-yield farmland improvement in Jiyang Xiang (Shangfeng area) is under construction. 8) the bidding for FJ-DT-CW-02-01 Low- yield oil team farmland improvement in Huaxing Xiang has completed, the construction is not begun.

Tractor road and irrigation canal reconstructed in Datian County

Fujian Farms Agribusiness Tea Co. Ltd.: 1) FJ-FANK-CW-01-01 (replanting 1,000 mu tea garden and 3,800 mu tea garden road infrastructure construction) broke ground in December 2019, is completed by 20% by the end of June 2020, the road section of Wangjia Tea Workshop has completed.; 2) FJ-FANK-GS-02 (500 mu digital (smart) eco-tea garden demonstration) is completed by 20% by the end of June 2020, and construction is ongoing.

Tractor road reconstructed in Wangjia Village, Fu’an County

Equipment installed in Tanyang Village, Fu’an County

Fujian Luyin Agriculture Co., Ltd.: Construction and procurement for the 5 contracts of field facility improvement, water facility improvement, seedling procurement, shelter forest and ecological conservation, and pest control equipment of Luyin Subproject: 4,460 mu oil tea garden have been completed.

28

29

Appendix 3 Fieldwork Records of the Third Round of M&E Longyan Green Land Eco-agriculture Development Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SDAP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project.

Longyan Longyu Ecological Industry Development Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SDAP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) reviewing the new land transfer contract, and conducting a sampling survey on the AHs; 5) investigating project benefits for different types of APs; 6) visiting the construction agency to learn procurement, employment, temporary land use and community relationship

Datian County Golden Phoenix Agricultural Development Co., Ltd.:

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

Wuyishan Zhuzi Eco-agriculture Co., Ltd.:

30

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

Fujian Xinghe Investment & Development Group Co., Ltd.:

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

Ninghua County State-owned Eco-forest Farm Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

31 Fujian Farms Agribusiness Tea Co. Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project.

Fujian Luyin Agriculture Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 3) investigating employment and project benefits in detail

32

Appendix 4 Component Screening Forms  Component screening forms of 4,000 mu paddy field—water infrastructure improvement, 2,000 mu paddy field protection

 Component screening forms of Datian County Golden Phoenix Agricultural Development Co., Ltd.: Low yield tea-oil farmland improvement in Qianping Xiang. Tea garden and low-yield farmland improvement (Shangfeng Area), Wushan Xiang tea garden and low-yield farmland improvement (Keshan Area), Huaxing Xiang tea garden and low-yield farmland improvement (Hengkeng Area)

33

34  Component screening forms of Wuyishan: 5,000 mu paddy field in Wuyishan—water, traffic, and ecological revetment infrastructure improvement

 Component screening form of Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement

35 Appendix 5 Minutes of Land Consultation Meetings Minutes of Land Consultation Meetings Participants No. IA Affected village Time Mode Venue Poor Key points Participants Women residents Ninghua County State- Impact caused by COVID- Wuceng Village/ 1 owned Eco-forest Farm 2020/4 FGD Village committee 20 8 5 19, operation re-open, Lianshe Vilalge Co., Ltd. and land use intro COVID-19 impact, /Wendun 2020/3 Village meeting Village committee 37 29 0 Explaining the subproject Village/Wuyi Village and land use Wuyishan Zhuzi Eco- 2 Wufu Village/Xiwei agriculture Co., Ltd. Explaining the subproject Village/Tianwei 2020/5 Village meeting Wufu town office 9 2 and land use, pending Village/Maochang issues in construction Village Shangfeng Village 2020/5/3 Village meeting Wufu town office 37 17 5 Discuss road building , Shangfeng Village Village committee explaining the subproject Village meeting 2020/3/1 42 21 7 and land use Shangfeng Village Village committee Discuss Deheng road 2020/7/2 Village meeting 32 17 7 building , explaining the Datian County Golden subproject and land use 3 Phoenix Agricultural Shangfeng Village Village committee Discuss Jide building , Development Co., Ltd. 2020/3/20 Village meeting 7 2 2 explaining the subproject and land use Shangfeng Village Village committee Discuss Deheng building , 2020/2/10 Village meeting 11 4 2 explaining the subproject and land use Longyan Longyu Shanxia Village, Explaining the subproject 4 Ecological Industry 2020/4/13 FGD Village committee 19 7 4 Hukeng Town and land use Development Co., Ltd. Fujian Farms Meeting room of Disclosing the affected Agribusiness Tea Co. 5 Sifu VIllage 2020/4/27 FGD Gaoban tea 30 14 5 area, and explaining land Ltd. garden use

Explaining the subproject Zhognxin VIllage 2020/4/10 FGD Construction site 15 8 2 Longyan Green Land and land use 6 Eco-agriculture Explaining the subproject Development Co., Ltd. Zgibgxu Vukkage 2020/4/11 FGD Construction site 17 6 2 and land use

36 Fujian Xinghe Modify the design o Investment & Dongkeng Village, Dongkeng Village irrigation system, 7 2020/4/13 Village Meeting 10 2 0 Development Group Banzai Town OFfice informing the villagers, Co., Ltd. and explaining land use.

37

Minutes of Land Consultation Meeting between Datian County Golden Phoenix Agricultural Development Co., Ltd. and the Shangfeng Village Committee

38

Appendix 6 Survey on Temporary Land Use Among the ongoing construction contracts, only the tractor road constructed by Pinghe CountyFujian Xinghe Investment & Development Group Co., Ltd. in Dongkeng Village, Banzai Town involves the temporary use of about 1.5 mu of land. For all subprojects which involves road construction will be constructed on the existing roadbed, while very small pieces of land will be used permanently for widening curves or as passing bays. Details as below: Interview of Fujian Xinghe Investment & Development Group Co., Ltd., and Dongkeng Village, Banzai Town on construction land and temporary land use Interview date: January 2020 Head of Dongkeng Village, Manager Zeng of the contractor, Mr. Lai of the owner During the construction of the 5,050 mu green grapefruit garden in Banzai Town under the Pinghe Subproject, about 1.5 mu of land will be occupied temporarily for a mixing station and a stockyard. The contractor has conducted consultation with about 40 persons, including village officials and villagers. Villagers strongly expect the road to be completed as soon as possible to alleviate their traffic burden (especially the grapefruit harvesting time, when grapefruits were transported by manpower and motorcycle in the past). The results are as follows: 1) The existing opera stage will be used for the mixing station and the stockyard to avoid the waste of land; 2) This land will be offered to the contractor for free and restored after completion. Although the road will be constructed on the existing roadbed, some scattered land will be used permanently as passing bays (usually 1-3 m2 per piece), but this will not affect grapefruit cultivation. Therefore, such land will be donated voluntarily and gratuitously by farmers through consultation. No appeal has occurred to date.

Interview of Fujian Farms Agribusiness Tea Co. Ltd. and Wangjia Village, Banzai Town on construction land Lin Guangzai, site supervisor of Fujian Farms Agribusiness Tea Co. Ltd. Interview Date: August 2020 During construction, we’ve proactive engage with local villagers about the potential impact, including the temporary road closure and other issues. This year, due to COVID-19 epidemic, we avoid holding big townhalls or village meetings, but we will inform village leaders and related villagers by one-to-one communication. All the villagers know who to talk to if they have issues, requests or grievances. Overall, the road closure impact is low, because most of the villagers have alternative route, the road closure time is very short, and the construction is conducted in a season that the road is not heavily used by villagers. Although the road will be constructed on the existing roadbed, some scattered land will be used permanently for widening curves, or as bays (usually 1-3 m2 per piece), but this will not affect villagers’ cultivation, no farmland was taken. Therefore, such land will be donated voluntarily and gratuitously by farmers through consultation. No appeal has occurred to date.

39 Appendix 7 Due Diligence on Land Transfer, Land Transfer Contract, and Payment Vouchers of Land Rental Interview minutes on the land transfer contract between Fujian Luyin Agriculture Co., Ltd. and 52 Villagers of Linyangtou Village, Badu Township, Jiaocheng District, Ningde City.

Fujian Luyin Agriculture Co., Ltd. (herein after referred as Luyin Company) have signed LURT contract with 52 HHs in Linyangtou Village in 2012, leased 4460 mu collectively owned slope land in total. All the contract and payment vouchers are reviewed in first round of M&E report. During this round M&E, the taskforce has random sampled and interviewed 16 HHs, accounting for 30.77% of the impacted HHs. The main objectives is to access: 1) If the contract is fair and transparent, and follows a consistent and fair procedure, and if the residents involved will receive equivalent or better income, and an equivalent or better living standard; 2) If effective, free and bona fide consultation is conducted with villagers / farmers so that they make an information decision on land use; 3) If the contract is entered into voluntarily, and if villagers / farmers fully understand and agree with its terms and conditions; 4) If villagers / farmers and other land users will not be affected adversely after land use, including any confirmed, fully corrected and documented slight document; 5) If the sum paid under the contract is based on market price and reflects fair compensation (at replacement cost); and 6) If the contract and relevant records are kept in writing, and reviewed by a third party to comply with the ADB policy, and applicable PRC laws and regulations. According to the review: 1) The interviewed 16 HHs have transferred 1013 mu slope land to Luyin Company, all of which are uncultivated. Before LURT, these lands are mostly idled, because the land located in remote areas with poor traffic access; 2) All the interviewed 16 HHs confirmed that they have been fully informed and consulted before signing the LURT contract, and the agreement was signed on free will. 3) The rent for slope land is CNY 20/mu*year, all the interviewed 16 HHs believe the rent fee is fair and based on market value. 4) All the 16HHs have received payment in time. All the 52 HHs have received payment intime according to payment voucher. 5) 14 HHs (87.5%) stated that the main reason for joining LURT is the land productivity is low, and there’s no profit, other 2 HHs (12.5%) joined LURT because lack of labor. 6) All 16 HHs believe they’ve benefited in LURT, before LURT, most of the land is idled without profit, now they can receive land rental fee, have job opportunities near their home, and enjoy improvement on road and infrastructures (such as irrigation system and small reservoir).

40

Fig. One of the Contract of LURT in Jiaocheng

41

Fig. One of Payment Vouchers of LURT

42

Appendix 8 Capacity Building of IAs

On January 6 and 13, 2020, on-site training and sharing sessions on SDAP and GAP were given to Guangze and Pinghe IA, 8 persons attended.

Due to COVID-19 epidemic, offline training courses cannot be organized in first half of 2020. On 30 June 2020, an online training course on gender action plan M&E and PCR preparation were offered, involving 15 persons from municipal and county agriculture and rural affairs, IAs, and external social monitoring agencies..

All the 8 IAs have appointed members to be responsible specifically for SAP and GAP implementation. They will participate in the whole project implementation process, and promote and record relevant activities to ensure that the Project complies with the ADB policy, and applicable PRC laws and regulations. These members remain unchanged as compared to the previous report.

Summary of Environmental / Social and Gender Development Directors Member Agency Position Gender E-mail Tel Wu Social and Provincial PMO Male [email protected] 591-87800337 Xionghai Environmental Director Environmental / Social Tang Wuyishan Zhuzi Eco-agriculture and Gender Male [email protected] 15859188255 Zhongwei Co., Ltd. Development Director Datian County Golden Phoenix Environmental / Social Yan Agricultural Development Co., and Gender Male [email protected] 13860523334 Jianxue Ltd. Development Director Wang Ninghua County State-owned Social and Gender Male [email protected] 13507552023 Xingtuan Eco-forest Farm Co., Ltd. Development Director Ninghua County State-owned Nie Caikui Environmental Director Male [email protected] 13806966008 Eco-forest Farm Co., Ltd. Longyan Longyu Ecological Qiu Zuxian Environmental Director Male [email protected] 18760003956 Industry Development Co., Ltd. Wang Longyan Longyu Ecological Social and Gender Female [email protected] 15206079658 Xiaojing Industry Development Co., Ltd. Development Director

43 Longyan Green Land Eco- Xie Teng agriculture Development Co., Environmental Director Male [email protected] 18760103030 Ltd. Longyan Green Land Eco- Lan Social and Gender agriculture Development Co., Female [email protected] 15280807871 Fanglan Development Director Ltd. Zhuang Fujian Xinghe Investment & Environmental Director Male [email protected] 13859251517 Bingbin Development Group Co., Ltd. Huang Fujian Xinghe Investment & Social and Gender Male [email protected] 13850581929 Zhenliang Development Group Co., Ltd. Development Director Environmental / Social Zhang Fujian Luyin Agriculture Co., Ltd. and Gender Female [email protected] 15959305778 Xiufeng Development Director Fujian Farms Agribusiness Tea Environmental / Social Lin Jianhua Co. Ltd. and Gender Male [email protected] 13950567783 Development Director

44

Appendix 9 Information Disclosure Records The IAs and contractors knew through training that they needed to hold a meeting in each village before construction to disclose the project site, range, and starting and ending times. Due to COVID-19 epidemic, for the 9 construction contracts that broke ground in this period, the IAs used new approaches to disclosed construction information while keeping social distance, such as Wechat group, phone calls and one-to-one communication. Other means such as publicity meeting, announcement, etc. are only organized when the public health response level is lower, and with enough protection measures. Relevant information disclosure and public participation activities are summarized as follows:

Summary of Information Disclosure and Public Participation Activities Participants residents Participa Women Poor No. IA Affected village Mode Venue nts Key points

Project introduction Ninghua County State- Village Construction re-open Lianshe and 1 owned Eco-forest Farm FGD Committee 20 8 5 after COVID-19 epidemic Wuceng Villages Co., Ltd. Office Pending issues during construction Xingxian Village / Project preparation Meeting 9 2 0 Wengdun Village meeting / Wuyi Village / Wufu Village / Wuyishan Zhuzi Eco- Xiwei Village / Construction re-open 2 Wufu Town agriculture Co., Ltd. Tianwei Village / after COVID-19 epidemic Meeting 9 2 0 Maochang Pending issues during Village / Dajiang construction Village / Dian Village Shangfeng Village Discuss road hardening Meeting 37 17 5 Village committee and ADB project Discuss village road Shangfeng Village Meeting 42 21 7 construction related Village committee issues. Discuss Deheng road Datian County Golden Shangfeng Village Meeting 32 17 7 construction Shangfeng 3 Phoenix Agricultural Village committee section Development Co., Ltd. Discuss Jide road Shangfeng 3rd floor Meeting 7 2 2 construction related Village office issues. Deheng road Shangfeng 3rd floor Meeting 11 4 2 construction related Village office issues Phone Weeding of oil-tea farm, Linyangtou Communic Farm office 5 3 1 organize time and Village Fujian Luyin Agriculture ation persons 4 Co., Ltd. Phone Recruit temporary Lingyangtou Communic Farm office 5 2 1 workers for oil team Village ation maintenance. Disclosing the project Longyan Longyu Shanxia Village, Village infromation 5 Ecological Industry FGD 19 7 4 Hukeng Town committee Discussing land Development Co., Ltd. information Fujian Farms Tanyang Disclosing the project 6 Sifu Village Meeting 30 14 5 Agribusiness Tea Co. Team area

45 Ltd. workshop office On-site Constructio Disclose construction Longyan Green Land Zhongxin Village 15 8 2 meeting n site information 7 Eco-agriculture On-site Constructio Disclose construction Development Co., Ltd. Zhongxi Village 17 6 2 meeting n site information Fujian Xinghe Design modification for Investment & Village irrigation project, 8 Dongkeng Village 10 2 0 Development Group Co., committee informing villagers, Ltd. consulting stakeholders, Total 268 115 43 Source: statistical from January 2020 to June 2020

Information Disclosure by Datian County Golden Phoenix Agricultural Development Co., Ltd Before Construction

WeChat Group communication and information disclosure by Datian County Golden Phoenix Agricultural Development Co., Ltd and local villager committees

46

Information Disclosure by Wuyishan Zhuzi Eco-agriculture Co., Ltd. Before Construction

Information Disclosure by Longyan Longyu Ecological Industry Development Co., Ltd. Before Construction

Information Disclosure by Ninghua County State-owned Eco-forest Farm Co., Ltd. before Construction

Fujian Xinghe Investment & Development Group Co., Ltd.

47 Appendix 10 Interview Minutes with Farmers’ Cooperatives Time: August 6, 2020, 10:00 am Venue: Office of Hanshan Farmer’s Specialized Cooperative Interviewee: Lian Lilai, head of Hanshan Farmers’ Specialized Cooperative in Wufu Town

Q: Can you introduce your communication status between you and Zhuzi company. A: There was a lot of communication during the construction period and it was very efficient. Because of the COVID-19 epidemic, the conference was held less, but the small communication was uninterrupted. In addition to communication with village officials, communication with our cooperative is also very smooth. Because the important content of the project is the farmland water conservancy system, and farmers know their farmland best. During construction, a drainage should be added here, and a culvert should be added there. Our members know best. We are very happy that the construction company can assign special personnel to follow up these demands on site, and will also take the initiative to contact us during construction, and ask the farmers to confirm on the changes. Putting the work in front in this way not only meets the requirements of farmers, but also makes the project design more reasonable. It also avoids disputes with farmers. Therefore, the construction in the past 6 months has been very smooth, and the members of our cooperative are satisfied with the project. The degree is also very high.

Q: Could you please introduce the situation of agricultural technology training in the past six months? A: To be honest, due to the COVID-19 epidemic, there has been no centralized training in the past six months for us. However, the teachers on the project and the teachers from the Agriculture Bureau are also trying to help us through other channels. For example, the Bureau of Agriculture has active online technical guidance, available every week, and you can communicate about agricultural technical issues in the WeChat group. It is very convenient to build a group now. For example, if I have a problem in this area, if I give feedback, the leader above can immediately find the corresponding expert and establish a WeChat group. Everyone can communicate in the group and can also take pictures and videos of the scene. Similarly, our cooperative has similar technical guidance to our members. Because of the epidemic, there is no way to bring everyone together. Most of the members have technical problems. We will communicate with him one-on-one to solve them, or see them on other occasions. “By the way, I would like to ask if there are any problems with the recent planting situation?” There are also instructions through WeChat and phone calls. Generally speaking, everyone has thought of many ways to overcome the difficulties caused by the epidemic.

48

Appendix 11 Local Agricultural Skill Training Records

Due to COVID-19 epidemic, the skill trainings are heavily impacted, most of the training sessions are resorted only after May 2020, therefore the number of participants is significantly less than previous M&E report. However, even during COVID-19 epidemic, the technical guidance and support haven’t stop, IAs, local agricultural bureaus and farmers’ cooperatives have continued these support via WeChat Group and one-on-one communications, see appendix 10 for details. From January to June 2020, training on cultivation skills, startup, seedling care, etc. was offered to 288 persons in total, including 143 women (49.65%) and 159 poor residents (55.21%). Other 8 trainings which are organized in 2018 and 2019 are not covered in No.2 M&E report, involving 340 persons, 124 women and 4 poor residents, the data was updated accordingly in this M&E report. Since project inception, skill training has been offered to 5,076 persons in total, including 2,062 women (40.59%) and 601 poor residents (12.14%), as detailed below:

Local Training Activities Participants residents Participa County / Women Poor IA city / Township / village Time Agency Participants nts Topic district

2018 Wuyishan City New Wuyishan Yifan 2018.11.2— Professional Farmer Wufu Town Vocational Training Farmers 40 20 2018.11.3 Cultivation (Tracking Service) Center Training 2018 Wuyishan City New Wuyishan Yifan 2018.11.9— Professional Farmer Wufu Town Vocational Training Farmers 40 21 Wuyishan City 2018.11.10 Cultivation (Tracking Service) Center Training Wuyishan Zhuzi Wuyishan City 2018 new Wuyishan Yifan Eco-agriculture 2018.11.14— professional farmers cultivate Wufu Town Vocational Training Farmers 30 16 Co., Ltd. 2018.11.18 agricultural products e- Center commerce sales training Wuyishan Yifan Wuyishan City 2018 New 2018.11.4— Wufu Town Vocational Training Farmers 50 16 Professional Farmer Bee 2018.11.8 Center Breeding Training Wuyishan Yifan Professional training for new 2019.11.7— Wufu Town Vocational Training Farmers 40 27 professional farmers in 2019.11.16 Center Wuyishan City in 2019

49 Participants residents Participa County / Women Poor IA city / Township / village Time Agency Participants nts Topic district

Wuyishan Yifan 2019.10.23— 2019 new professional farmers Wufu Town Vocational Training Farmers 40 2019.11.1 cultivate tea training Center Wuyishan Yifan 2019 new professional farmers 2019.11.11— Wufu Town Vocational Training Farmers 40 cultivate tea processing and 2019.11.15 Center production class training Jiaocheng Jiaocheng Fujian Luyin District Fujian Luyin Head of Badu Agriculture Co., Badu Town 2020.4.25 20 7 6 Maintenance of oil tea Agriculture Co., Ltd. base, workers Ltd. Yongding

Longyan Longyu District Ecological Industry Hukeng Town Longyan Forestry 2020.5.11 Farmers 40 38 30 Fertilization methods and skills Development Co., Shanxia Village Research Institute Ltd. Longyan Green Agricultural technical Special industry-related policy District Xinluo Shizhong Town 2020.5.8 Farmers 62 26 5 Land Eco- office training agriculture Poverty Alleviation Incentive poverty alleviation Development Co., Shizhong Town 2020.6.25 Farmers 55 18 55 Ltd. Office project training Datian County County County Datian Datian Datian County Golden Golden Phoenix Taoyuan Town Phoenix Agricultural Production management of Agricultural 2020.6 Farmers 58 35 10 Dongfeng Farm Development Co., fruit trees and moso bamboo Development Co., Ltd. Ltd. County Fujian Xinghe Pinghe Agriculture and Rural Investment & Farmers in Township 2019.11.7 Bureau of Pinghe 60 24 4 Agricultural machinery training Development project area County Group Co., Ltd. Fujian Farms Nongken Tea Tea farmers and Conduct training on green and Agribusiness Tea Fuan City Muyun Town 2020.6.18 Group/Nongken researcher of 28 10 28 efficient tea management for Co. Ltd Muyun Company tea institutes

50 Participants residents Participa County / Women Poor IA city / Township / village Time Agency Participants nts Topic district

around Muyun poor households in Muyun Township Township Training on the use of tea Nongken Tea Tea garden / biological pesticides for poor Fuan City 2020.6.25 Group/Nongken 25 9 25 cooperative staff households in Muyun Muyun Company Township

51

Appendix 12 Employment Statistics of Contractors From January to June 2020, the Project generated about 786 jobs, including 118 permanent and 668 temporary ones, including 343 women and 251 poor residents. Since project inception, 6,966 jobs have been offered in total, including 4,667 women and 976 poor residents. Temporary laborers will receive a pay of 150-400 yuan per day, during the COVID-19 epidemic, wage of temporary workers went up in many subproject due to lack of laborer. Men and women will receive equal pay for equal work. See the table below.

Statistics of Employment under the Project Average Number of Number of Poor Average District / Women daily pay No. IA permanent temporary residents daily pay county employed of women jobs jobs employed (yuan) (yuan) 50 38 130 130 Ninghua County State-owned Ninghua 1 15 11 130 130 Eco-forest Farm Co., Ltd. County 15 10 130 130 20 35 16 14 210 180 Wuyishan Zhuzi Eco- Wuyishan 2 20 40 15 22 210 180 agriculture Co., Ltd. City / / / / / / Fujian Luyin Agriculture Co., Jiaocheng 3 0 70 25 20 175 150 Ltd. District Longyan Longyu Ecological Yongding 4 Industry Development Co., 15 70 36 24 178 150 District Ltd. Datian County Golden Phoenix 60 17 20 150 120 Datian 5 Agricultural Development Co., County 65 40 20 150 130 Ltd. Fujian Xinghe Investment & Pinghe 10 17 4 0 400 400 6 Development Group Co., Ltd. County 14 20 6 0 400 400 Longyan Green Land Eco- 0 16 3 2 180 160 Xinluo 7 agriculture Development Co., District 0 36 8 4 200 150 Ltd. Fu’an 20 26 14 23 230 230 Fujian Farms Agribusiness District 8 Tea Co. Ltd 9 23 4 17 245 220 10 110 96 85 130 130 Total 118 668 343 251 203 187

In Ninghua subproject, women workers and local residents are maintaining the oil-tea tree

52

In Fu 'an subproject, women are employed by IA for temporary team picking job Fig. Employees under the Project

Appendix 13 Interview Minutes with Other Beneficiaries Time: August 6, 2020, 11:00 a.m. Venue: Xiashan Village, Hukeng Town, Yongding County Government FGD participants: Jiang Manyu (female), Yu Qingyou, Li Xingjun (female), Zhang Yaniang (female), Lin Caixia (female), Huang Lianxia (female), Zhang Zhanniang (female), Lin Donglan (female), Lin Xunxiong, Wang Yueqin ( Female), Lin Jianzhang, Zhang Guihua (female), Lin Yuehua (female), Su Liyou (female) Interviewer: Sun Jing, Xiao Junhao Recorder: Xiao Junhao

Q: What are the benefits of oil tea project for you? A: The increase in income of course, the project has provided everyone with more employment opportunities. We can work in the village and earn more than 100 yuan a day. Whether it is construction labor or labor during the planting of oil tea tress, the local villagers are the first to be considered to increase the income. After the oil-tea camellia fruit is harvested, workers are required for shelling, seed selection, and oil extraction, these can be long-time job opportunities. Everyone recognizes the project very much. Now the economic benefits of the whole village are better than before, the whole village has been lifted out of poverty, and several households are building houses. In addition, the road is easier to walk, and now it is very convenient to drive in and out of the village.

Q: Has everyone received the land transfer fee for the LURT land? A: We have all received it. I signed a 10-year circulation contract and paid once every two years. I have already received the first payment. The second payment will be made from July to August next year (2021).

Q: Are you satisfied with the effect and process of project implementation? A: Everyone is satisfied. The project has long-term benefits. The villagers think that growing oil tea is very good, and there is a tradition of growing oil tea in the local area. In addition, oil tea does not require insecticide, and there is no environmental pollution. When the road was being built this year, a consultation meeting was held with the villagers due to road reconstruction. Everyone expressed their support and had no opinion on the project. The support rate was 100%. In addition, during the implementation of the project, the village supervision committee (composed of villager

53 representatives) is responsible for the whole process of supervising the implementation of the project, and everyone is assured of the quality of the project. Only this year, affected by the epidemic, the project has been suspended for a period of time, and work will not resume until April- May. Q: What is the percentage of female workers working here, and does the project bring any special benefits? A female representative: Most of the people involved in the project are women, and equal pay for equal work. Nowadays, more men go out to work, and more women stay in the village. They are the main force in the village labor. The village jobs provided by the project are very good for us. They can take care of the family and increase income.

Q: Did you give you technical training this year? How effective is the training? A: Due to the impact of COVID-19 epidemic this year, no technical training has been organized. There have been training sessions before, and there are also a lot of usual guidance. The training is very practical, and they are all techniques that can be used in oil tea cultivation.

Q: Are there any complaints or comments that you have, and who do you contact to respond to grievances? A: We’re very satisfied with the project, no grievances so far, everyone is very supportive. In normal work and life, everyone will find the village party secretary. Others are nice and responsible, and the problems they respond can be solved quickly.

Appendix 14 grievance redress mechanism (GRM) in this project

A grievance redress mechanism (GRM) has been established to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits. Project agencies (i.e. those directly involved in the project) comprise the PPMO and CPMOs, PIUs, contractors, and village committees. The PPMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PPMO social officer coordinates the GRM and will: (i) establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); and (ii) report on progress of the GRM in semi-annual social monitoring and progress reports to ADB. Project.The flow chart of grievance Redress Mechanism for Social and Environmental Issues as follows:

AP = affected person, EPB = environmental protection bureau, PMO = project management office; PIU = project implementing unit.

Figure 8-1: Project Grievance Redress Mechanism for Social and Environmental Issues

54 Since information disclosure and public participation activities were conducted extensive at the preparation stage, the APs are highly aware of the Project. No complaints or appeals related to land use, SDAP and GAP to date. Both local PMOs and contractors are using a proactive method to engage with local communities, most construction issues are proactive identified, communicated, and resolved before it become a grievance. A few good practice are attached herein after.

1. Datian County Golden Phoenix Agricultural Development Co., Ltd. Proactive sharing project information in an understandable way

In Datian subproject, PMOs share road route and Satellite photo to local communities, so villagers can understand the project impact and road design, and better voice their own opinion in the meeting. Many small changes are made in discussions like this, which helped the road become more friendly to villagers.

Fig. Datian PMO are sharing a satellite drawing of designed road

2. Fujian Farms Agribusiness Tea Co. Ltd Proactive engagement helps

In Fu’an subproject, PMO and contractor proactively disclosed potential construction impact to local community, and designated focal point on site to communicate with villagers. The villagers know who to talk to when they have issues. By having these proactive actions, potential issues are resolved before it become grievance.

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Fig. Fu 'an PMO and contractors are proactively communicating with local community about the potential impact of project

3 Wuyishan Zhuzi Eco-agriculture Co., Ltd. Hear from, and listen to the community

The project in Wuyishan involves irrigation channels and ditches, therefore it is very important to proactive engage and listen to the villagers about the detailed design. The villager knows best about how to discharge water from their own paddy field, or where to add a culvert. Before construction, the IA and contractor rep will organize village leaders and related/concerned villagers onsite to confirm design, and all the changes are confirmed on site, and implemented immediately.

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Fig. Proactive engagement in Wuyishan

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