Sanjiang Plain Wetlands Protection Project Resettlement Plan and Due

Resettlement Planning Document

Resettlement Plan Document Stage: Revised Project Number: 35289 March 2013

PRC: Sanjiang Plain Wetlands Protection Project

Resettlement Plan and Due Deligence Report of Mishan City (Xingkaihu Nature Reserve) – English Version

Prepared by Heilongjiang Provincial Project Management Office for the Sanjiang Plain Wetland Protection Project.

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

Sanjiang Plain Wetland Protection Project Loaned by Asian Development Bank

RESETTLEMENT PLAN OF Mishan City

(XINGKAI LAKE NATURE RESERVE)

Updated version

Heilongjiang Province Sanjiang Plain Wetlands Protection Project Office

Dec 2011

PREFACE

Based on the resettlement framework prepared under the ADB PPTA in 2004, a Resettlement Plan (RP) is developed by PMO of Sanjiang Plain Wetland Protection Project (SPWPP) in accordance with Chinese laws and regulations and ADB's Involuntary Resettlement Policy. The RP provides mitigation measures for restoring farm land to wetland of Xingkai Lake National Nature Reserve of SPWPP. According to the latest project plan, PMO of Sanjiang Plain Wetland Protection Project develops the Resettlement Plan based on completed survey on social economic and affected employees.

All data involved in the project is collected and provided by Xingkai Lake National Nature Reserve, the resettlement experts group updates the RP compiled by Xingkai Lake National Nature Reserve Bureau in Sep.2004 according to latest scope of restored farm land to wetland based on field verification.

Heilongjiang Provincial Development and Reform Committee (HPDRC) will endorse the RP on behalf of Heilongjiang Provincial Government (HPG) following the approval of ADB.

Resettlement Plan of Mishan City (Xingkaihu)

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank AP Affected Person EA Executing Agency FRFGN Farmland Restoration to Forestry and Grassland Notice FRFL Farmland Restoration to Forest land FRW Farmland to Wetland Restoration GDP Gross Domestic Product GEF Global Environment Facility HH Household HDRC Heilongjiang Development and Reform Committee HFSDRI Heilongjiang Provincial Forestry Survey Design and Research Institute HPWPR Heilongjiang Provincial Wetland Protection Regulation HPSPPMO Heilongjiang Provincial Sanjiang Plains Wetland Protection Project Office IA Implementation Agency KF Xingkai Lake Farm KFG Xingkai Lake Farm 29th Group LAL Land Administration Law M&E Monitoring and Evaluation MFB Mishan Municipal Forestry Bureau MLAB Mishan Municipal Land Administrative Bureau MRM Management Review Meeting Mishan Municipal Sanjiang Plains Wetland Protection Project Leading MSPWPPLG Group MSPWPPO Mishan Municipal Sanjiang Plains Wetland Protection Project Office NNR National Natural Reserve NPV Net Present Value OM Operation Manual OP Operational Procedures PAU Project Affected Unit PMO Project Management Office PRC the People's Republic of China RP Resettlement Plan XLNNRAB Xingkai Lake National Nature Reserve Administrative Bureau

Resettlement Plan of Mishan City (Xingkai Lake)

Content

1 OBJECTIVE OF RP AND DEFINITION OF RESETTLEMENT TERMINOLOGY ...... 1 2 PROJECT DESCRIPTION ...... 3 2.1 BRIEF INTRODUCTION OF THE PROJECT ...... 3 2.1.1 Watershed Management ...... 3 2.1.2 Nature Reserve Management ...... 3 2.1.3 Alternative Livelihood ...... 3 2.1.4 Capacity building in Nature Reserve Area ...... 3 2.2 GENERAL DESCRIPTION OF THE PROJECT AREA ...... 4 2.2.1 Jixi City (prefecture level) ...... 4 2.2.2 Mishan City (county level) ...... 4 2.3 PROJECT BENEFICIAL AREAS...... 5 2.4 PROJECT INVESTMENT AND FINANCING ...... 7 2.5 MEASURES TO MITIGATE NEGATIVE IMPACTS OF THE PROJECT ...... 7 2.6 AIMS OF RESETTLEMENT ...... 7 3 PROJECT IMPACTS ...... 8 3.1 IMPACTS ANALYSIS OF LAND ACQUISITION ...... 9 3.2 IMPACTS ANALYSIS OF POPULATION ...... 10 3.3 IMPACTS ANALYSIS OF BUILDINGS ...... 11 3.4 OTHER IMPACTS ...... 12 4 SOCIOECONOMIC INVESTIGATION ...... 13 4.1 SOCIOECONOMIC SURVEY OF PROJECT AFFECTED AREA...... 13 4.2 SURVEY OF PROJECT AFFECTED HHS ...... 14 4.2.1 Profile of Households Population ...... 14 4.2.2 Basic Situation of Families’ Living ...... 17 4.2.3 Income Impact Analysis ...... 17 4.2.4 Analysis of Expenditure ...... 18 Comprehensive Analysis of Income and Expenditure...... 19 4.2.5 Psychology Questionnaire ...... 19 4.3 MINORITY ...... 20 4.4 VULNERABLE GROUP ...... 20 5 RESETTLEMENT LEGAL AND POLICY FRAMEWORK ...... 21 5.1 LAND ACQUISITION PURVIEW AND COMPENSATION CHARACTER ...... 21 5.1.1Land Acquisition Purview and Compensation Character ...... 21 5.2 APPLICABLE LEGAL AND ADMINISTRATIVE PROCEDURES ...... 23 5.3 COMPENSATION PROVISIONS...... 24 5.4 INSTITUTIONAL RESPONSIBILITIES ...... 25 5.5 RESETTLEMENT POLICIES OF ADB ...... 25 6 RESETTLEMENT COMPENSATION RATES AND RESETTLERS’ RIGHTS...... 27 6.1 COMPENSATION POLICIES FOR FARMLAND TO WETLAND RESTORATION ...... 27 6.1.1 Confirm compensation policies for farmland restoration to wetland ...... 27 6.1.2 Entitlement Matrix ...... 27 7 INCOME RECOVERY PLAN ...... 29 7.1 INCOME RECOVERY PLAN ...... 29 8 COST AND BUDGET ...... 30 8.1 TOTAL COST ...... 30 8.2 ANNUAL INVESTMENT PLAN ...... 31

Resettlement Plan of Mishan City (Xingkai Lake)

9 SCHEDULE OF IMPLEMENTATION...... 32 10 ORGANIZATION ...... 34 10.1 RP, MANAGEMENT, IMPLEMENTATION AND M&E ORGANIZATIONS ...... 34 10.2 RESPONSIBILITIES ...... 34 10.2.1 HPSPPMO (Project Management Organization) ...... 34 10.2.2 XNNRAC (Sub-project Leading Organization) ...... 34 10.2.5 XLNNRAB (Sub-project Management Organization) ...... 35 10.2.6 SPWPPOXLNNR (Implementation Organization) ...... 35 10.2.7 Xingkai Lake Aquaculture Ltd...... 35 10.2.8 External monitoring institution ...... 35 10.3 STAFFING ...... 36 10.4 ORGANIZATION CHART ...... 37 10.5 STRENGTHENING INSTITUTIONAL CAPACITY ...... 37 11 CONSULTATION, PARTICIPATION, GRIEVANCE AND APPEAL PROCEDURE ...... 38 11.1 PARTICIPATION AND CONSULTATION ...... 38 11.2 COMPLAINT AND APPEAL ...... 39 12 MONITORING ...... 40 12.1 INTERNAL MONITORING AND SUPERVISION ...... 40 12.1.1 Implementation Procedures ...... 40 12.1.2 Indicators to be monitored ...... 41 12.1.3 Staff ...... 41 12.2 EXTERNAL MONITORING ...... 41 12.2.1 Organization and Responsibility ...... 42 12.2.2 Procedures ...... 43 13 APPENDIX 1 OUTLINE OF INDEPENDENT MONITORING AND EVALUATION ON RESETTLEMENT ...... 44 13.1 OBJECTIVES OF MONITORING AND EVALUATION ...... 44 13.2 CONTENTS OF MONITORING AND EVALUATION ...... 44 13.3 TECHNICAL METHOD ...... 45 13.4 EXTERNAL MONITORING INSTITUTE ...... 45 13.5 INSTITUTIONAL FRAMEWORK OF MONITORING AND EVALUATION ...... 45 13.6 METHODS OF MONITORING AND EVALUATION ...... 45 13.7 SCHEDULE OF EXTERNAL M&E ON RESETTLEMENT ...... 46 14 APPENDIX 2 DUE DILIGENCE REPORT ...... 47 14.1 XINGKAI LAKE AQUACULTURE LTD...... 47 14.2 RESETTLEMENT OF AFFECTED FARMERS ...... 47 14.3 COMPARISON ANALYSIS OF INCOME AND EXPENDITURE ...... 49

Resettlement Plan of Mishan City (Xingkai Lake)

1 Objective of RP and Definition of Resettlement Terminology

This resettlement plan (RP) is prepared according to the laws and regulations of the PRC, Heilongjiang Province and ABB’s Involuntary Resettlement Policy (1995), ADB’s OM Section F2/OP on ADB ‘Involuntary Resettlement’ (2003) as well as Handbook on Resettlement of ADB (1998). The purpose of this document is to set out an action plan for the resettlement and rehabilitation of the project affected persons (APs) to ensure that they will benefit from the project and their standards of living will improve or at least be restored after the project impact.

Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. APs are defined as those persons whose income or livelihoods will be adversely affected by land acquisition for the project. APs include the following categories: a) Persons who have a title, right, interest, in structures (houses, enterprises, shelters, or public buildings), land (including residential, agricultural, and grazing land) or any other asset acquired or possessed, in full or in part, permanently or temporarily; b) Persons who use the structures, land or assets described above; or persons whose business, occupation, work, place of residence or habitat adversely affected; or c) Persons whose standard of living is adversely affected as a consequence of land acquisition.

A definition of APs is given below: Definition of the APs: “Affected Persons” means persons who on account of the execution of the project had or would have their: a) standard of living adversely affected; or b) right, title or interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or c) business, occupation, work or place of residence or habitat adversely affected, and “affected Person” means individually all those who qualify as “Affected persons.”

APs may be individuals or legal persons such as a company, a public institution.

Definition of APs is not limited to their legal registration or permission to live or conduct business in the affected location, or their title to property. Thus, it includes: a) All those affected by the project regardless of their legal rights or absence thereof to the assets being taken; and

Resettlement Plan of Mishan City (Xingkai Lake)

b) Persons without residential permit to live in a certain area.

Therefore all such persons who are affected will need to considered and recorded as APs, regardless of their legal connection to assets, land or location.

If there are more than one person, family or household using or holding a title to the same land or property that is acquired, they will be compensated and rehabilitated according to the loss they suffer, their rights, and the impact on their living standards. The definition of APs is linked directly to the adverse effect of the project, regardless of legal rights title or interest.

All APs are entitled to the improvement or at least restoration of their standards of living, and compensation for the material losses they suffer. Compensation for assets will cover replacement cost. No deductions or discounts will be applied to the compensation amount for depreciation or other reasons. All APs deriving an economic benefit from the affected land and property are entitled to receive rehabilitation benefits in addition to the compensation for their assets lost. Those APs without title, authorization or legal permission to reside, conduct business, cultivate land or construct structures are eligible for rehabilitation of their livelihoods and compensation for their assets on an equal footing with those with formal legal title, authorization or permissions to use the assets.

The term RESETTLEMENT includes: a) the relocation of living quarters; b) finding acceptable new employment for those whose jobs are affected; c) restoration (or compensation) of affected productive resources such as land, workplaces, trees and infrastructure; d) restoration of other adverse effect on APs’ living standards (quality of life) through land acquisition (such as the adverse effects of pollution); e) restoration of or compensation for affected private and public enterprises; and f) restoration of adversely affected on cultural or common property.

Rehabilitation means: the restoration of the APs，resource capacity to continue with productive activities or lifestyles at a level higher or at least equal to that before the project. The objective of this RP is to provide a plan for the resettlement and rehabilitation of the APs so that their losses will be compensated and their standards of living will be improved or at least restored to the pre-project levels. To achieve these objectives the plan provides for rehabilitation measures so that the income earning potential of individuals are restored to sustain their livelihoods. Affected productive resources of businesses (enterprises including shops) and public property, infrastructure and cultural property will also be improved or at least restored to their pre-project levels.

Resettlement Plan of Mishan City (Xingkai Lake)

2 Project Description

2.1 Brief Introduction of the Project

According to the final design report, Sanjiang Plains Wetland Protection Project is composed of watershed management, nature reserve management, alternative livelihoods program and capacity building in Mishan City.

2.1.1 Watershed Management

The water management component in Mishan City includes two sub-components, which are (i) forest plantations and (ii) improvement of inter-institutional water resource management. For forest plantations, Mishan City Government is responsible for planting 60,000 mu1, which includes 15,000 mu of high-yield plantation and 45,000 mu of fast-growing plantation.

2.1.2 Nature Reserve Management

The main content of Xingkai Lake National Nature Reserve in Mishan City includes: scientific wetland habitat management, wetland restoration within the reserves and wildlife species recovery programs. The sub-project is located in Xingkai Lake National Nature Reserve of Mishan City.

2.1.3 Alternative Livelihood

The Alternative Livelihood program includes: non-timber Forest Products Program (NTFP); sustainable resource use in Wetlands program; and Ecotourism program. The alternative livelihood program is in Xingkai Lake nature reserve area and its circumference.

2.1.4 Capacity building in Nature Reserve Area

The capacity building is in progress within Xingkai Lake Nature Reserve. This component includes three programs: Conservation Education in schools; Conservation Awareness for adults; and Wetland Management Training for nature reserve staff.

1 1 mu = 1/15 ha

Resettlement Plan of Mishan City (Xingkai Lake)

2.2 General Description of the Project Area

The project area is located in Mishan City of Jixi Prefecture of Heilongjiang Province.

2.2.1 Jixi City (prefecture level)

Jixi is one of important city in southeast economic region of Heilongjiang Province, which administers 3 counties and 6 districts, with total population of 1.94 million people. Total land area of the city is 22,453 km2. Among that, total cultivable land is 554,000 ha, accounting for 30.9%; wasteland area is 435,200 ha; exploitable land area is 294,800 ha; grassland and wetland area is 215,800 ha.

In this region, the main types of cultivable soil include white slurry soil, river silt soil, ripe soil and meadow soil. Main crops are rice, wheat, corn, soybean, tobacco, beet, etc., and it is developing green agriculture.

Jixi city has preponderant natural environment with abundant resources. There are more than 40 kinds of mines such as coal, graphite, sillimanite, gold, marble, kalium rock and etc. Total reserves of coal is 8 billion tons, and its yearly output is 30 million tons; reserves of graphite is 770 million tons, which rank first in Asia, and its yearly output is 70 thousand tons; reserves of sillimanite is 40 million tons, and its yearly output is 3000 tons; reserves of gold is about 5 tons; the area of forest land is 17.65 million mu and the timber reserves is 70.25 million cubic meter.

The Frontier length between China and Russia is 631 km. Two arterial land ports of Dangbi town and Jixiang have been opened. Traffic is convenient in Jixi, such as railway, highroad and aviation, are connected as traffic network. Postal and telecommunications service have developed quickly; a phone call can be made here to any other country and area in the world. Communication condition reached international advanced level.

2.2.2 Mishan City (county level)

Mishan City is a county level city, which is administered by Jixi City Government the total population is 430 thousand, and its area is 7843 km2. It administers 7 towns and 14 townships, and city site is located in Mishan Town. The Backbone industries are pharmacy, building material, commodity products, wine brewing, foodstuff, farming machine, build and repair and etc. Main products of agriculture are wheat, beet and yellow tobacco. Xingkai Lake is one of the provincial raising bases for aquatic products. A local specialty is big white fish, which is one of the four famous Chinese fish.

Resettlement Plan of Mishan City (Xingkai Lake)

Linmi and Midong railway and Fangfu highway pass through the territory of the city. It is located in the north of Muleng River to Xingkai Lake plain, and Muleng River goes through its territory. Yearly average temperature is 3.1°. Yearly average precipitation is 554 mm.

2.3 Project Beneficial Areas

Based on final design, the project will directly benefit Xingkai Lake National Nature Reserve in Mishan city. Xingkai Lake Natural Reserve became a provincial NR in August 1986 and national natural reserve in May 1994.

Xingkai Lake is located in the southeast of Heilongjiang province, 35 km away from Mishan city. It is a boundary lake, with one-third area in the north belonging to China and southern area belonging to Russia. It was formed by volcano outbreak and earth’s crust sink. It was named as Xunlun Lake in Tang Dynasty, as Beiqin Sea in Jin Dynasty and Yuan Dynasty, and renamed as Xingkai Lake by Qing Dynasty since 17th Century. Currently the total area of the lake is 4880 km2, lake surface area is 4380 km2, shore is 90 KM in length, average depth is 7 m, maximum depth is 10 m, the storage capacity of the lake is 30.66 million cubic meter. Altitude is 69m above sea level, width from east to west is 60 km, and distance from south to north is 140 km. Lakeshore is full of fine sand. Lake water is very clean 2 without any pollution, which transparence of is 1.5m〜2.0m. Small Xingkai Lake with 403 km is formed naturally from north to Xingkai to west to Songacha River. Small Xingkai Lake is separated from Xingkai Lake by a natural sand bar with 90 km long. The widest section of the sand bar is about 1 km. Green trees in the sand bar formed shade naturally, where the deer, mink, rat and mountain cock multiply and coexist here. Lots of migratory birds inhabit the area when spring comes, such as red-crowned crane, sea-gull, swan and egret. All kinds of plants and more than 20 kinds of fish live in the lake. The big white fish is one of the famous specialties of Xingkai Lake. There are also silver carp, crayfish, sea-ear, crustacean and shrimp. It is one of the main aquatic products raising bases in Heilongjiang Province. The lake is connected with the Wusuli River through Songacha River.

Core zone of Xingkai Lake Nature Reserve is located in the junction area of Xingkai Lake and Songacha River. The large area of wetland attracts many waterfowl, which take this area as a main migrating and nesting area. Especially the estuary of Songacha River, which does not freeze in winter, becomes one of the important resting stage and replenishment station for East Asia migratory birds in springtime. Several hundred thousands of migratory birds gather here every spring. Recently, since the increasing of human activities, the original status of wetland in core zone and environment of birdsmigrating and reproducing are damaged. Also, it makes difficulties to manage the core zone in nature reserve.

Resettlement Plan of Mishan City (Xingkai Lake)

The construction of irrigation works changed the ecological balance of the wetland and resulted in degradation of vegetation. When farmland was developed from the wetland, a series of activities, which violate the order of nature, occurred and is still ongoing. Irrigation works such as intakes, drainage channels and dikes intervene with natural water flows inside the wetland. The operation of these facilities changed the water and natural ecological pattern, which favored wetland plants, and resulted in damage and degradation of vegetation. Irrigation has severed the integrated ecological system into many fragmented pieces.

Burning of the grass on wasteland is an important factor to induce the wetland fire. Based on long term observation, it is an important threat to birds migrating and reproducing. Springtime is always the season for birds migrating and reproducing, such as crane. During the springtime, the area around 29th group is full of dense smoke, and the flames light up the sky. The air is always full of the burned ash of grass and straw. The birds with natural disposition of alertness often postpone reproducing or cannot build nest in order to avoid the disturbance from human activities. A large fire in 1998 made the number of red-crowned crane decrease to about 30 in this nature reserve. Waterfowl migrating areas in the Songacha River estuary decreased greatly.

The large amount of farmland reclamation destroyed the natural shielding conditions of birds. Inaccessibility protects and shields wetland with crisscross network of streams, river ways, swamps and mires; this prevents human and domestic animals from encroaching on the bird’s habitat. The natural enemy of birds such as wolves and foxes also face difficulty to enter original ecological conditions. With vast and dense vegetation, the core zone of wetland is not only the passage for birds migrating, but also the nest building area for waterfowl, in which there are many species. Rare birds, which include red-crowned crane, white-tail eagle, golden eagle, tiger-head eagle, etc. inhabit and reproduce here. The amount of waterfowl accounts for 1/3 of that in the whole nature reserve in this area.

Different from in area of living through winter, in propagation area, birds are sensitive to human activities, they choose undisturbed areas far away from residential spot to raise their young and rest. The core zone is sparsely populated without roads passing through, and it has the optimal conditions for waterfowl habitat and reproduction.

Picking up eggs, catching young, poaching are difficult to prohibit completely, and birds cannot peacefully inhabit and reproduce because of human activities in wetland. Human developing activities change the original wetland sight greatly in recent years, natural protection conditions are damaged gradually, and the crisis of birds inhabiting is severely

Population moving and farmland restoration to wetland have important realistic and profound

Resettlement Plan of Mishan City (Xingkai Lake)

significance to resuming original ecological environment in core zone, and it will mitigate the impacts of human activities in the core zone and protect birds migrating passage, nesting and reproducing habitat. Therefore, the proposed project is not only urgent for environmental protection of nature reserve, but also the imminent need for building a nature reserve of biological circle of Xingkai Lake nature reserve at international level.

2.4 Project Investment and Financing

This is an ecology environmental protection project and People’s Government of Heilongjiang Province is responsible for its construction. The project investment includes 3 parts: domestic supporting fund, ADB loan and Global Environment Facility (GEF) grant. The resettlement budget in the RP will be financed by domestic supporting fund.

2.5 Measures to Mitigate Negative Impacts of the Project

During the planning of the project, different opinions related to project design were widely collected, especially on selection of scale of land restoration. In order to mitigate negative impacts of the project, the scope of farmland restoration is cautiously determined. The farmland restoration is mainly located in the core zone of wetland conservation area, and land with poor soil and bad cultivation prospect. Through consultation with local people, the project scheme was formulated with consideration of mitigating negative impacts as far as possible.

2.6 Aims of Resettlement

■ Optimize the project design in order to avoid affecting the sites with large population and multi-story buildings, to reduce the quantity of demolition as much as possible, and to minimize the involuntary resettlement; ■ Involuntary resettlement should be a component of the project, and adequate funds should be provided for APs and to ensure that they can benefit from the project; ■ Pay the APs all the compensation fees before they move out; ■ Encourage APs to participate in the preparation of RP and resettlement activities, and their opinions should be taken into consideration; and ■ Improve APs living standards or at least restore their former living standard.

Resettlement Plan of Mishan City (Xingkai Lake)

3 Project Impacts

According to final project plan, Sanjiang Plains Wetland Protection Project of Mishan City is composed of four major components, including watershed management, nature reserve management, alternative livelihoods program, and capacity building in six Nature Reserves in the Sanjiang Plains, Heilongjiang Province. According to survey results, the impacts are involved in the pilot wetland restoration subcomponent under Nature Reserve Management Component.

According to RP in 2004, 5000 mu of farmland was planned to be restored to wetland in Longwangmiao core area2 of Xingkai Lake National Natural Reserve. But since some farmlands of the 29th production group in Xingkai Lake State Farm have transferred into basic farmland, the origin plan could not be implemented. Therefore, through many times reviews and muti-selections, such as Huxi wetland, the site of farmland to wetland restoration in the project is confirmed in farmland owned by Xingkai Lake Aquaculture Ltd. Located in Dongbeipaozi core area of Xingkai Lake National Nature Reserve. The location is shown in Figure3-1.

Figure3-1 farmland to wetland restoration location map of Xingkai Lake

The Dongbeipaozi core area is located in the Northeast shore of small Xingkai Lake, which is one of

2 According to Xingkaihu national nature reserve overall plan(2007),there are 3 core areas in Xingkaihu nature reserve-Longwangmiao,Dongbeipaozi and Hugang core area.

Resettlement Plan of Mishan City (Xingkai Lake)

three core areas of Xingkai Lake NNR. It’s wetland locates along small Xingkai Lake shore, between MuXing east and west dyke, which is Muling River releasing flood area, saving a large area of natural wetlands, covering an area of 15654ha, accounting for 27.2% of Xingkai Lake National Natural Reserve. Within area, river, lake and swamp are densely covered. The favorable conditions and rich food, fish and waterfowl become ideal habitat for fish and waterfowl. Dongbeipaozi wetland and small Xingkai Lake are interlinked, aquatic plants, fish, and shrimp is rich in resources, and production of fish is more than 40 species. There are total 244 species of birds in Xinkai Lake NNR, of which, 80% exist and appeared in this area. The number of waterfowl habitat and reproduction amounts to more than 30 thousand. There are over 40 red-crowned crane breeding population. National level-2 protected birds such as swans, ducks, White-napped Crane, Bai Eyan and others mainly distribute in this region. There are 30 kinds of ducks over the NNR, of which, 19 are in the area.

Dongbeipaozi core area is the natural barrier for small Xingkai Lake to resist farmland sewage of Muling River and the surrounding, which is to ensure that small Xingkai Lake water quality can meet quality requirements of the fundamental guarantee of class ii.

No house demolition, ground attachment or minority people are involved in the project.

3.1 Impacts Analysis of Land Acquisition

According to the request, Xingkai Lake NNR will restore 5085 mu (339 hectares) farmland within the Dongbeipaozi area, and will affect 9 contract households , of local villagers from Mishan City who rent the land from Xingkai Lake Aquaculture Ltd. The geographic coordinates of the site is E 132。 40 ' 01' to E132。，N 45。 25' 24 ' to N45 。 30' 18". This piece of land belongs to Xingkai Lake Aquaculture Ltd., of state-owned land. Figure 3-2 is relevant certification.

Resettlement Plan of Mishan City (Xingkai Lake)

Figure 3-2 Xingkai Lake Land Resources Branch Bureau Certification Material

That farmland planned to restore is originally wetland, which locally called the aquaculture wetland, belonging to the core part of Dongbeipaozi. Around 2001, when the benefit of Xingkai Lake Aquiculture Factory (now Xingkai Lake Aquaculture Ltd.) was not so good and as a result, the company reclaimed the wetland and rented them out to local farmers from local villagers of Mishan City. In 2003, the Xingkai Lake Aquiculture Factory was renamed Xingkai Lake Aquaculture Ltd. and was adjusted as a department under the leadership of Xingkai Lake Protection Zone management committee.

At present, the company’s residents are mainly living in farming, fishing, and tourism industry.

3.2 Impacts Analysis of Population

There are 9 contracting households involved in farmland to wetland restoration, all of the farmers are from Mishan city. See table 3-1.

Resettlement Plan of Mishan City (Xingkai Lake)

Table 3-1 Basic Information of the Households Affected by Restoring Farmland to Wetland of Xingkai Lake National Nature Reserve

Age ID No Household Serial Head of Contracting Gender （years population number HHs area（mu） old）（persons）

Kou 1 male 48 231026196407120018 3 Xianxue 460

2 Li Chunlin male 44 231026196812070317 3 450 Zhang 3 male 44 231026196810010337 3 Jingquan 800

Chuang 4 male 49 231026196311210633 3 Shaoming 330

Ma 5 male 48 231026196410015411 3 Tingshun 550

Duan 6 male 46 230104196504293718 3 Zhongjie 300

Tang 7 male 47 231026196410015411 3 Guoqing 1050

Ma 8 male 43 231026196806065415 3 Cheng 670

9 Liu Haibo male 35 231026197712065419 3 480 total 27 5085

3.3 Impacts Analysis of Buildings

According to final farmland to wetland restoration plan, no buildings demolition involved in this project.

Resettlement Plan of Mishan City (Xingkai Lake)

3.4 Other Impacts

The project area is not an ethnic minority area; no minority population is involved in the project, and there are no cultural heritage protection problems.

Resettlement Plan of Mishan City (Xingkai Lake)

4 Socioeconomic Investigation

In order to better understand the socioeconomic status of project affected areas and basic situation of affected people, the project office conducted socio-economic survey of affected area in December 2011 as per requirement of ADB. They made research on affected households one to one and fill in questionnaires particularly. The contents of survey include: families population, production and business, main implements of production, living standard, house area, annual income and expenditure, people‘s attitude to resettlement, etc. This survey provides the detail basic data for analysis and compilation of the RP.

4.1 Socioeconomic Survey of Project Affected Area

Xingkai Lake Aquaculture Ltd. and 9 contracting households are affected by this project.

Xingkai Lake Aquaculture Ltd. is located in Mishan City the southeast of Heilongjiang Province, on north shore of small Xingkai Lake. It operates small Xingkai Lake, Dongeipaozi and Xingkai Lake China areas, and the total area is 951000 mu. In April, 1951, the field was built, named Songjiang Province Xingkai Lake Fishing Companies, under the Songjiang Provincial Department of Agriculture. And in 1954, Songjiang province and Heilongjiang province merged, under the Heilongjiang Provincial Bureau of aquatic products. In 1968, Heilongjiang Province Revolution Committee decided to line it under the Heilongjiang Production and Construction Corps four division forty-three regiment, for the camp 5. In1976, it changed to Xingkai Lake Aquaculture Farm, taken over by Heilongjiang Province State Farm Bureau. In 1980, it was returned under Provincial Aquatic Product Bureau, known as the Heilongjiang Province Xingkai Lake Aquaculture Farm. In 2001, it was returned to Jixi City Government on 71st executive meeting of the provincial government. In 2003, changing its name to Heilongjiang Xingkai Lake Aquaculture Ltd., handed in Xingkai Lake CMC management, and now it is the subordinate unit of Xingkai Lake CMC.

There are 522 existing staffs in the company, and total number of cadres is 62 people, total population is 1796, annual fishing 1200 tons, and the total output of grain beans is 2000 tons. In 2010, the total income is 4,530,000 yuan, and net fixed assets is 10,530,000 yuan.

Resettlement Plan of Mishan City (Xingkai Lake)

4.2 Survey of Project Affected HHs

4.2.1 Profile of Households Population

The affected 9 households, 27 persons, 13 males, accounting for 48.1%; 14 female, accounting for 51.9%; All are Han nationality; cultural level: primary school 6 people, accounting for 22.22%, junior high school 14 people, accounting for 51.85%, high school 7 people, accounting for 25.93%; Occupation: farmer, 20 people, accounting for 74.07%, and 7 students accounting for 25.93%.

Resettlement Plan of Mishan City (Xingkai Lake)

Education level Population （persons） Occupation Age （persons） Series Head of Contracting Gender （years Residence Number Households Junior Senior area（mu） old） Among which Elementary total high high farmer student school male female school school Lihu village, Chengzihe 1 Kou Xianxue male 48 3 1 2 1 1 1 2 1 460 Township, Mishan city Huyan village, Baipaozi 2 Li Chunlin male 44 3 2 1 0 2 1 2 1 450 township Mishan city Changlinzi Zhang villge, Baipaozi 3 male 44 3 2 1 0 2 1 2 1 800 Jingquan township, Mishan city Changlinzi Chuang villge, Baipaozi 4 male 49 3 1 2 2 0 1 3 0 330 Shaoming township, Mishan city Huyan village, Ma Baipaozi 5 male 48 3 2 1 0 2 1 2 1 550 Tingshun township Mishan city Changlinzi Duan villge, Baipaozi 6 male 46 3 1 2 1 1 1 3 0 300 zhongjie township, Mishan city Xinlonggan village, Tang 7 male 47 3 1 2 0 2 1 chengzihe 2 1 1050 Guoqing village, Mishan city Mishan city Changlinzi villge, Baipaozi 8 Ma Cheng male 43 3 2 1 1 2 0 2 1 670 15 township, Mishan city Resettlement Plan of Mishan City (Xingkai Lake)

Changlinzi villge, Baipaozi 9 Liu Haibo male 35 3 1 2 1 2 0 2 1 480 township, Mishan city total 27 13 14 6 14 7 20 7 5085 proportion（%） 48.15% 51.85% 22.22% 51.85% 25.93% 74.07% 25.93% Table 4-1 Basic Situation of Affected Families

Resettlement Plan of Mishan City (Xingkai Lake)

4.2.2 Basic Situation of Families’ Living

For the 9 surveyed households, all the houses are one-storied of brick-concrete, and the average housing area is 48m2, the per capita living area is 16 m2. The average housing base area is 135m2; average per capita housing base area is 45 m2. Production tools: a total of 9 set tractors, 1 set average one household, other farm machinery (mainly for diesel engines) 2 sets, color television 9 sets, 1 set average one household, phone 4 sets, 0.44 set average one household, auto cycle 13 sets, 1.44 sets average one household, bicycles 5 sets, 0.56 average household, mobile phone 16 sets, 1.77 set average one household.

4.2.3 Income Impact Analysis

The 9 affected households are pure agricultural households in Mishan city before farmland to wetland restoration. In addition to short term leasing land, there are 1143 mu other types of land, 127 mu per household average, 44.1mu land average per capita. These households are mainly living on rice cultivation. Returning to the previous year (2009), the gross income of 9 households amounts to 1,692,984 yuan, the per capita gross income is 62,703 yuan, and the average household income is 188,109 yuan, which is all the agricultural income. More details see table 4-2. From Table 4-2, it can be seen that the farmland planned to be restored to wetland is located in the Dongbeipaozi core area, as a result of low-lying, flood influences often, the yield is not high and unstable; however, due to cultivated land area is large, the farmland to wetland restoration causes certain effect on the 9 households' income of farmers.

Table4-2 Analysis of land and income of affected households in 2009

Short term Long term Land Income Gross income yield contract area yield Name contract land lose rate lose rate of agriculture （kg） farmland restored （kg） area （mu） (%) (%) （Yuan）3 to wetland （mu） Kou 23900 Xianxue 122 61000 460 79.04% 28.15% 156,216 Li Cunlin 97 48500 450 24800 82.27% 33.83% 134,872 Zhhang 40000 JIngquan 162 97200 800 83.16% 29.15% 252,448 Chuang 16800 Shaoming 150 75000 330 68.75% 18.30% 168,912 Ma 34100 Tingshun 130 78000 550 80.88% 30.42% 206,264 Duan 16200 Zhongjie 110 66000 300 73.17% 19.71% 151,248 Tang 57800 Guoqing 160 80000 1050 86.78% 41.94% 253,552

3 This the income earned in 2009, based on the minimum price of rice in Mishan City is 1.84 yuan/kg.

Resettlement Plan of Mishan City (Xingkai Lake)

Short term Long term Land Income Gross income yield contract area yield Name contract land lose rate lose rate of agriculture （kg） farmland restored （kg） area （mu） (%) (%) （Yuan）3 to wetland （mu） Ma Cheng 120 72000 670 48200 84.81% 40.10% 221,168 Liu Haibo 92 46000 480 34600 83.92% 42.93% 148,304 Total 1143 623700 5085 296400 N/A N/A 1,692,984 Per household 127 69300 565.556 32933.33 80.31% 31.62% 188109

4.2.4 Analysis of Expenditure

The total production expenditure of the 9 affected households is 902260 yuan accounting for 74.88% of total expenditure. The average production expenditure per capita is 100251.11 yuan per capita. Among total production expenditure, fertilizer costs 186160 yuan, accounting for 15.45%; seed costs 199180 yuan, accounting for 16.53%, pesticide costs 165810 yuan, accounts for 13.76%, productive electricity costs 114340 yuan, accounts for 9.49%, mechanization costs 107240 yuan, accounts for 8.9%.

The total living expenditure is 302670yuan, accounting for 25.12%, 33630 yuan per capita. Among total living expenditure, byproduct costs 106500 yuan, accounts for 8.84% of the total; clothing costs 21810 yuan, accounts for 1.81%; water, electricity and fuel costs 15740 yuan, accounts for 1.31%; transportation costs 21680 yuan, accounts for 1.8%. For more details, please see Table 4-2.

Table 4-3 Expenditure Structure of Affected Households in 2009 Per capita in household Item Sum （Yuan）（yuan/household ） proportion（%） Productive expenditure ( Yuan） 902260 100251.11 74.88% fertilizer 186160 20684.44 15.45% seed 199180 22131.11 16.53% pesticide 165810 18423.33 13.76% Productive electricity cost 114340 12704.44 9.49% Mechanization cost 107240 11915.56 8.90% Others （including contract cost） 129530 14392.22 10.75% Living expenditure (Yuan） 302670 33630.00 25.12% byproduct 106500 11833.33 8.84% Clothing 21810 2423.33 1.81% Water, electricity, fuel 15740 1748.89 1.31% Medicine and health care 4840 537.78 0.40% Transportation 21680 2408.89 1.80% Culture, education and amusement 56920 6324.44 4.72% Follow presents 75180 8353.33 6.24% Total 1204930 133881.11 100.00%

Resettlement Plan of Mishan City (Xingkai Lake)

Comprehensive Analysis of Income and Expenditure

In 2009, the total net income of affected household amounts to 790724 yuan, net income of per household is 87858, with 254228 yuan highest, 1200 yuan lowest, and income of 4 households is more than 10 thousand yuan. The per capita net income is 29286, a maximum of per household is 9467 yuan, the lowest 400 yuan. A comprehensive analysis is in the table 4-4.

Table 4-4 Comprehensive Analysis of Income and Expenditure of affected households

Item Unit Sum

Total income in 2009 Yuan 1692984

-Production expenditure in 2009 Yuan 902260

-Living expenditure in 2009 Yuan 302670

Net income Yuan 790724

Savings Yuan 488054

Net income per capita Yuan/person 29,286

4.2.5 Psychology Questionnaire

About Family Living:

Based on the questionnaire survey of 9 households, 88.89% of the people think that their living standard of family are at middle position in comparing to other villagers, the remaining 11.12% of the people think that it is in the higher level.

About Resettlement Plan ：

100% of the people understood the original wetland and knew that the farmland is to be returned into wetland.

When asked" how to make a living, 100% of people hope to continue to live on cultivate land, at the same time they hope that the Reserve Management Bureau can help them solve labor placement

Resettlement Plan of Mishan City (Xingkai Lake)

problem.

Asked about the “encountered the greatest difficulties in the future", 13.33% of people think it is the shortage of arable land, 86.67% of the people think it is the lack of money

The affected farmers are all supportive for the project. 4.3 Minority

Through the survey, no aboriginal and ethnic minority are found in the project area.

4.4 Vulnerable Group

No vulnerable group is in the affected group.

Resettlement Plan of Mishan City (Xingkai Lake)

5 Resettlement Legal and Policy Framework

Laws and Policies Referred in Resettlement:

 Property Law of P.R. China (2007)

 Land Administrative Law of P.R. China (2004)

 Natural Reserve Regulations of P.R. China (1994)

 Land Administrative Regulations of Heilongjiang Province (2000)

 Wetland Conservation Regulations of Heilongjiang Province (2003)

 Heilongjiang Province Farmland Conversancy Regulations (1995)

 Xingkai Lake National Nature Reserve Management Regulation(2008)

 ADB’s Safeguard Policy (2009). 5.1 Land Acquisition Purview and Compensation Character

5.1.1Land Acquisition Purview and Compensation Character

Property Law of P.R. China:

Article 42 For public interest, be in accordance with the law authority and procedures for expropriation of collectively owned land and unit, individual housing and other real estate.

When acquiring land of collectivity, it shall pay the full amount of land compensation, resettlement subsidies, ground attachment and young compensation charges, and arrange affected peasants' social security costs, in order to ensure the life of the farmers, and safeguard the legitimate rights and interests of farmers.

When acquiring unit, individual housing and other real estate, it shall give compensation, safeguard the legitimate rights and interests of persons affected by the expropriation; when acquiring individual residential houses, it should also be imposed on the living conditions of guarantee.

No unit or individual is allowed to corruption, embezzlement, dividing, interception, default expropriation compensation fee.

Article 43 The country gives special protection to cultivated land, strictly limits the conversion of agricultural land into construction land, and controls total construction sites. We shall not violate the provisions of the law’s authority and procedures for expropriation of collectively owned land.

Resettlement Plan of Mishan City (Xingkai Lake)

Land Administrative Law of P.R. China:

Article 2 P.R. China carries out socialism public ownership of land, which is ownership by the whole people and laboring concourse collectivity. Owned by the whole people means ownership of all land carried out by state council representing China. Any unit and individual cannot invade, deal or transfer land by any other illegal way. Use of land can be transferred in law. State can acquire land of collective-owned for public interests and give compensation. State can implement payable use system for state-owned land.

Article 12 Change the ownership and usage of land in law should go through the formalities of the land ownership change register.

Article 13 Land ownership and usage registered in law protect by law, any unit and individual cannot invade.

Article 39 Lands which are not reclaimed or used need go through scientific argumentation and evaluation to verify that it is in the reclaimed area rowed by general layout of land usage and start after approval in law. Forbid damage to forest and grassland and enclosing lake to reclaim farmland and invading beach of rivers. According to general layout of land usage, land, which reclaimed by damage ecological environment, should be converted to forest, grassland or lake step by step.

Article 47 Land requisitioned shall be compensated for on the basis of its original purpose of use.

Nature Reserve Regulations of P.R. China:

Article 18 Nature reserves can be divided into core zone, buffer area and experiment area. The well-preserved area and the ecosystem, as well as rare and endangered plants and animals within the Nature Reserve should be classified as the core area. Forbid any unit and individual to enter NR. And scientific research activities are not allowed unless approved according to article 11 of this regulation. Periphery of core zone can be borrowed as buffer area by certain area and only scientific research activities are allowed here. Periphery of buffer area can be borrowed as experiment area and scientific experiment, teaching and practice, visit and seeing, tourism, domestication and reproduction of rare and endangered wildlife, etc. activities are allowed here.

Article 26 Forbid logging, grazing, hunting, fishery, picking, reclaiming, burning, mine, quarry, dragging for sands and etc. activities. But law and regulations stipulate the exception.

Heilongjiang Province Land Administrative Regulations：

Resettlement Plan of Mishan City (Xingkai Lake)

Article 8 Change using right and ownership of land in law, transfer buildings and constructions attached to land in law resulting in the change of land purpose, it needs to register the change of land ownership and using right and purpose. The change of land ownership and using right become effective from the date of register.

Article 20 Farmland Restoration to forest, grassland and fishery caused by agricultural adjustment, it should carry out according to general layout of land usage and is reviewed by local land administrative department of county and city government, and then report to city and county government for approval.

Article 24 Examination and approval limits of acquisition land owned by farmer collective: (a)cultivated land, not included in capital farm land, that is less than 35 hectares, or others less than 70 ha, should be approved by provincial government and reported to State Council on file; (b) otherwise, should be approved by State Council. State acquire land owned by collective, unit or individual acquired should surrender land on time without baffling.

Heilongjiang Province Wetland Protection Regulations： Article 27 Wetland reserve areas can be divided into core zone, buffer area and experiment area in line with national regulations.

Article 28 Without approval, any unit and individual cannot enter core zone of Wetland reserve areas. Request and activities plan should be submitted to administer department of Wetland reserve areas because of teaching and scientific research and approved by forest administration department above provincial level. Prohibit strictly settling people in Wetland reserve areas. Existing settled people in Wetland reserve areas should move out within the specified time by government above county level, and production should stop.

5.2 Applicable Legal and Administrative Procedures

Land Administrative Law of P.R. China：

Article 46 Land acquired by state, after approval as per legal procedures, should be announced and carried out by government above county level. Owners and user of acquired land should transact requisition compensation and register with certificate of land within time limit stipulated by announcement.

Resettlement Plan of Mishan City (Xingkai Lake)

5.3 Compensation Provisions

Land Administrative Law of P.R. China：

Article 47 Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land.

Heilongjiang Province Land Administrative Regulations：

Article 26 Compensation for land, resettlement subsidies and building and attachments and young crops on the requisitioned land should be paid to the requisitioned unit. Owners and user of acquired land should go to local government and transact requisition compensation register with certificate of land. Land compensation should be paid to ownership unit of collective. And collective economic organization should set up an account, which is used for living subsidy of requisitioned farmers and infrastructure construction of the collective and setting up enterprises specially. Usage of land compensation should be agreed by over two thirds of members of villager meeting or over two thirds of villager representatives, and reported to county government for approval.

Land compensation for people resettled by collective economic organization should be paid to ownership unit of collective land. Land compensation for people resettled by other unit should be paid to resettlement unit. Land compensation for people, who do not need unified resettlement, after approval of them and when they sign agreement, can be paid to them or for their insurance cost.

Compensation for young crop, building and attachment will be paid to contract person of land or its owner. Any unit and individual cannot occupy and embezzle land compensation, subsidy and other payment.

Article 29 Young crops should be compensated as per its production value in the same season of the same year.

Attachment such as buildings and constructions should be compensated as per stipulations of state or province or agreement of both sides. Without agreement, city or county government will determine as per actual lose.

Before land requisition, and after land administration department in charge of the city or county issue bulletin for land requisition, crops, trees planted and establishment constructed will not be

Resettlement Plan of Mishan City (Xingkai Lake)

compensated.

Article 30 Construction project, which is approved in law to use stated-owned farmland of other unit with legal using right, should pay compensation and resettlement cost as per standard for land requisition.

5.4 Institutional Responsibilities

Land Administrative Law of P.R. China：

Article 66 Land Administration department of the people’s government at or above the county level shall supervise over and inspect violations of laws and regulations governing land administration. Supervisors over and inspectors of land administration shall be familiar with the laws and regulations governing land administration and they shall be devoted to their duties and enforce laws impartially.

Article 70 Where, in the course of supervision and inspection, land administration departments of the people，s government at or above the county level find any violations by State functionaries and believe that administrative sanctions need be given to such functionaries, they shall deal with such violation in accordance with law; if they have no right to do so, they shall propose in writing to the administrative supervision departments of the people’s governments at the corresponding or a higher level that administrative sanctions be given to the functionaries, and the administrative supervision departments concerned shall deal with the violations in accordance with law.

Article 79 Whoever embezzles or misappropriates the compensation or other relevant charges paid to a unit whose land is requisitioned, if the violation constitutes a crime, shall be investigated for criminal responsibility in accordance with law; if the violation is not serious enough to constitute a crime, he shall be given administrative sanctions in accordance with law.

5.5 Resettlement Policies of ADB

 Resettlement shall be avoided where possible.

 If resettlement is unavoidable, then multiple options shall be developed to minimize the amount of resettles and to prepare resettlement plan.

 Compensation and assistance shall be provided for resettlers to improve, or at least maintain their economic and social lives.

 Resettlers shall be fully informed and consulted with in process of resettlement and compensation.

Resettlement Plan of Mishan City (Xingkai Lake)

 Resettlers with no formal rights of land shall also be compensated; for those households composed mainly of women or other vulnerable groups, such as ethnic minorities, shall be provided with special assistance to raise their social status.

 Establish transparent grievance and appeal mechanism.

 Participation of shareholders shall be emphasized during the planning and implementation of RP.

 Publish resettlement plan and implementation policies to resettlers.

 Resettlement shall be planned and implemented as part of the project where possible, and the costs for resettlement and compensation shall be included in project budget and profit.

Resettlement Plan of Mishan City (Xingkai Lake)

6 Resettlement Compensation Rates and Resettlers’ Rights

The project resettlement policy is formulated on the basis of the relevant resettlement policies of the People’s Republic of China, Heilongjiang Provincial Government, Mishan City Provincial Government as well as ADB.

6.1 Compensation Policies for Farmland to Wetland Restoration

6.1.1 Confirm compensation policies for farmland restoration to wetland

The proposed site is located in the core area of Dongbeipaozi, and the original status is wetland, belonging to the development prohibition area of Xingkai Lake Aquaculture Ltd. within the Xingkai Lake NNR, all being the state-owned land. Meanwhile, the Xingkai Lake Aquaculture Ltd. (XLAL) is a subordinating institute of Xingkai Lake Management Committee (XLMC) and it will benefit from the eco-tourism component of SPWPP. Therefore, the restoration from farmland to wetlands within this area is no need to compensate to Xingkai Lake Aquaculture Ltd.

For 9 households affected by farmland to wetland restoration, as the contract they signed with Xingkai Lake Aquaculture Ltd. was all of 1-year contract period and the contract will automatically expire after their validity period, there is no legal basis to pay compensation. But considering the ADB involuntary resettlement policy, Xingkai Lake Reserve Administration Bureau (XLRAB) agreed to arrange 9 part-time jobs for the 9 households above, so that their living standards will not reduce after losing land.

6.1.2 Entitlement Matrix

Table6-1 Entitlement Matrix Affected Affected Policy type people No compensation required because the affected unit belongs to the entity (XLRAB) Farmland Affected that will restore the farm land to wetland to wetland enterprise The state owned enterprise (XLAL) under Xingkai Lake Reserve Management restoration Committee, gets priority in participation and supporting policy or project.  No cash compensation 9 Affected  XLRAB will arrange one patrol job for each affected household in order to

Resettlement Plan of Mishan City (Xingkai Lake)

farmer increase their income, households  APs get the preferential opportunity in programme of livelihood alternative  XLRAB will assist farmers to rent other lands

Resettlement Plan of Mishan City (Xingkai Lake)

7 Income Recovery Plan

The total area of wetland restoration project is 5085 mu. Xingkai Lake Aquaculture Ltd. and 9 households of farmers are affected by the project.

7.1 Income Recovery Plan

Though the wetland restoration affects are of short-term rent land, as the area of the project is large, having impacts on the farmer's livelihood and income level. In order to strictly in accordance with ADB’s Safeguard Policy Statement (2009), the Sanjiang Plain Wetlands Protection Project Management Office consulted many times with Xingkai Lake Management Committee, Xingkai Lake Reserve Management Bureau, eventually and Xingkai Lake Reserve Management Bureau agreed that 9 labor forces of affected 9 households work into the management bureau. Through full consultation with the affected villagers, all the affected households also fully agree with the plan.

Resettlement Plan of Mishan City (Xingkai Lake)

8 Cost and Budget

All resettlement costs are included in the project general budget. At the price of December 2009, the total cost of land acquisition and resettlement of wetland protection in Mishan City caused by the project is 0.45 million yuan, which include planning, management, training, and monitoring costs. There is no cash compensation.

8.1 Total Cost

Table 8.1 Budget for Land Requisition and Resettlement of wetland protection project in Mishan City

Compensation Rate Cost Item Unit Quantity (Yuan/unit) (104 yuan)

1 Land compensation for farmland mu 5085 restoration to wetland Xingkai Lake Aquaculture Under Xingkai Lake 0 mu 5085 Limited Company Management Bureau Affected 9 households that rent the Jobs to be pro mu 5085 0 land with annual contracts vided 2. Attachments demolition Not involved compensation

3 Moving allowance Household Not involved

4 Ground attachments compensation No losses (green crops)

5 Cost for infrastructure building in Not involved resettlement area 1-5 total 0

6 Cost for resettlement survey and plan 10.00

7 Cost for monitoring and evaluation 10.00 8 Management fees 10.00 9 Training fees 5.00 10 RP Preparation fees 10.00 10 Total 45.00 thousand

Resettlement Plan of Mishan City (Xingkai Lake)

8.2 Annual Investment Plan

According to land requisition and resettlement Implementation schedule to compile annual investment plan. The annual investment of wetland protection project land requisition and resettlement are shown in Table 8-2.

Table 8.2 Annual investment plan of land requisition and resettlement of wetland protection project in Mishan City Unit: 10000yuan

Year total 2010 2011 2012 2013 Investment 45 15 15 10 5 Proportion 100.0% 33.33% 33.33% 22.22% 11.11%

Resettlement Plan of Mishan City (Xingkai Lake)

9 Schedule of Implementation

Table 9.1 Resettlement Activities Milestones

Item Resettlement Task Target Responsible Deadline Actual date Agency

1. Make a particular Provincial PMO 4/30/2004 12/1/2010 survey and update RP

1.1 Particular resettlement Provincial PMO 6/15/2004 12/1/2010 impact survey and update RP 1.2 Approve of RP and Provincial Forest 9/10/2004 5/20/2011 budget Office

1.3 Confirm compensation New policy Provincial 9/3/2004 3/31/2011 standard government

2. Information Disclosure 2.1 Resettlement Xingkai Lake Provincial and 9/30/2004 12/30/2009 information handbook Aquaculture Mishan PMO Ltd. /affected household 2.2 Publish RP on ADB HPSPPMO and 9/30/2004 On going website ADB

3. Resettlement Implementation Plan

3.1 Farmland to wetland Xingkai Lake HPSPPMO 1/30/2005 9/15/2010 restoration Aquaculture Ltd. 3.2 Labor resettlement Mishan City Mishan 3/30/2005 11/30/2010 Municipal Government 3.3 Training plan for Affected MSPWPPO 3/30/2005 10/30/2011 affected families families

4. Implementing Capacity Building

4.1 Project coordination 6 clerks HPSPPMO 1/30/2004 3/30/2007 office

4.2 Staffing of local 2 clerks of Mishan 1/30/2004 5/30/2007 resettlement cadres Mishan CRO Municipal Governmentent 2 clerks of 4.3 Employees training 9 persons HPSPPMO / 1/30/2004 6/30/2007 Xingkai Lake MSPWPPO 2/30/2004 Farm RO MSPWPPO 5. Monitoring & Evaluation

Resettlement Plan of Mishan City (Xingkai Lake)

Item Resettlement Task Target Responsible Deadline Actual date Agency

5.1 Baseline survey Affected M&E institute 8/30/2004 12/20/2011 families

5.2 Establish internal As per RP HPSPPMO / 6/30/2004 1/20/2008 monitoring MSPWPPO 5.3 S i g n contract with As per RP HPSPPMO 6/30/2004 3/1/2009 external monitoring institution 5.4 Internal monitoring Every half HPSPPMO 6/30/2004 5/6/2008 report year

5.5 External monitoring Every half M&E institute 12/30/2007 Ongoing report year

6 Text of Consultation As per RP HPSPPMO / Ongoing 10/6/2010 Records MSPWPPO 7. Text of Appealing As per MSPWPPO Ongoing 10/6/2010 Records demand /XF

8. Capital As per RP Flow/Compensation

8.1 -to HPSPPMO 20% of fund HPFD 9/20/2007 N/A

8.2 -to MSPWPPO and XF As per RP HPSPPMO 9/25/2011 N/A

8.3 -to affected families As per RP MSPWPPO 10/31/2011 N/A

Resettlement Plan of Mishan City (Xingkai Lake)

10 Organization

10.1 RP, Management, Implementation and M&E Organizations

The departments responsible for planning, implementation, management, and monitoring of resettlement activities involved in the project are:

■ Heilongjiang Provincial Sanjiang Plains Wetland Protection Project Management Office (HPSPPMO) ■ Xingkai Lake National Nature Reserve Administrative Committee (XNNRAC) ■ Xingkai Lake National Nature Reserve Administrative Bureau (XLNNRAB) ■ Sanjiang Plains Wetland Protection Project Office of Xingkai Lake National Nature Reserve (SPWPPOXLNNR) ■ Xingkai Lake Aquaculture Ltd. (XLAL) ■ External monitoring institution.

10.2 Responsibilities

10.2.1 HPSPPMO (Project Management Organization)

■ Organize to conduct practicality loss involved in requisition and demolition socioeconomic survey ■ Consult with departments and stipulate policies on requisition and demolition and resettlement ■ Organize and coordinate the compilation of RP ■ Make sure and coordinate the implementation of resettlement plan according to schedule of project construction ■ Direct, coordinate and supervise the progress of RP ■ Organize and carry out internal monitoring, determines which institution will ■ Carry out external monitoring and coordinate external monitoring activities ■ Review monitoring reports ■ Prepare progress report and submit to development and innovation committee ■ Coordinate to resolve the conflicts and issue encountered in the implementation of RP.

10.2.2 XNNRAC (Sub-project Leading Organization)

■ Organize and arrange declaration and implementation of sub-projects ■ Coordinate organizations concerned during the construction of sub-projects ■ Approve resettlement policies ■ Coordinate the conflicts during the resettlement ■ Examine and supervise schedule and results of resettlement.

Resettlement Plan of Mishan City (Xingkai Lake)

10.2.5 XLNNRAB (Sub-project Management Organization)

■ Establish resettlement office ■ Organize to conduct practicality loss involved in requisition and demolition socioeconomic survey ■ Determine and coordinate the implementation of resettlement plan according to schedule of project construction ■ Allocate resettlement funds to administrative bureau and every forest centers and supervise the utilization of fund ■ Direct, coordinate and supervise the progress of RP ■ Organize and carry out internal monitoring and coordinate external monitoring activities ■ Review monitoring reports ■ Prepare progress report and submit to provincial XNNRAC ■ Coordinate to resolve the conflicts and issue encountered in the implementation of RP.

10.2.6 SPWPPOXLNNR (Implementation Organization)

■ Conduct practicality loss involved in requisition and demolition of wetland protection sub-project and socioeconomic survey ■ Consult with affected villagers and stipulate policies on requisition, demolition and resettlement ■ Participate in compilation of RP ■ Implement and execute RP ■ Allocate resettlement funds to affected villages and villagers and supervise the utilization of village collective resettlement fund ■ Organize and carry out internal monitoring and coordinate external monitoring activities ■ Prepare progress report and submit to XLNNRAB ■ Resolve the conflicts and issue encountered in the implementation of RP.

10.2.7 Xingkai Lake Aquaculture Ltd.

■ Participate in land acquisition and socioeconomic survey ■ Consult with affected production group and its employees and stipulate policies on land acquisition ■ Participate in the compilation of RP ■ Implement and execute RP ■ Be responsible for new residential area and houses construction for affected employees. ■ Be responsible for readjustment of land for affected production group ■ Carry out internal monitoring and coordinate external monitoring activities ■ Prepare progress report and submit to MSPWPPO ■ Resolve the conflicts and issue encountered during land acquisition.

10.2.8 External monitoring institution

■ Provide consultation in requisition and resettlement.

Resettlement Plan of Mishan City (Xingkai Lake)

■ A qualified independent monitoring institution will monitor on RP and the implementation of it in all aspects and submit independent monitoring and evaluation reports to HPSPPMO and ADB. Its responsibility will be explained in External Monitoring in detail.

10.3 Staffing

See Table10.1 for resettlement institutions staffing involved in the project. The resettlement institutions involved in the project are well staffed and with high quality. The average number of regular staff is 31, and the peak number of staff will reach to 75. There are smooth information channels.

Table10.1 Staffing of the Resettlement Institutions Involved in the Project

Professional Total number Resettlement Workers of staff Qualification of staff Institutions (person) (person) HPSPPMO 2 12 Civil servants, graduates 12 Technician of wetland and forestry, XNNRAC 2 8 graduates 8 External monitoring 6 6 Experts in resettlement 6 institution

Total 6 6

Resettlement Plan of Mishan City (Xingkai Lake)

10.4 Organization Chart

HPSPPMO

External XNNRAC monitoring Institution

Xingkai Lake Aquaculture Ltd XLNNRAB

9 Affected Households

Figure10-1 Resettlement Organization Chart of Mishan Wetland Protection Project

10.5 Strengthening Institutional Capacity

Full safeguard for capital and equipment, and related institutions equipped with phone, fax and computer;

Set up a MIS of resettlement to manage the data concerned using computers, enhance information feedback, and ensure information be transmitted smoothly from the top down and the bottom up.

Enhance the report system and internal monitoring and solve the problems, if any, in time

The independent external monitoring should be enhanced and the independent monitoring and evaluation agency should point out the existing problems to the relevant authorities in time with the resolution proposals.

Resettlement Plan of Mishan City (Xingkai Lake)

11 Consultation, Participation, Grievance and Appeal Procedure

11.1 Participation and Consultation

In order to establish relative policies, work out a good RP, minimize complaints and disputes, and accomplish the appropriate resettlement, a great deal of efforts has been made to increase consultation and participation by the APs during stages of preparation and implementation of the

During preparation of the feasibility study, time after time, HPSPPMO and XLNNRAB had asked Mishan Municipal Government, People’s Congress, and Political Consultant Committee, people’s groups, representatives of affected employees for their suggestions, proposals and opinions on the schemes of construction, compensation and resettlement of the Project.

During the reselection of wetlands restoration site, the public participation and consultation will be encouraged through following procedures and measures:

1) Consultation Meetings

Six months prior to land acquisition, symposiums will be held with the participations of rural residents to collect their opinions and suggestions.

2) Public Meetings Three months before land acquisition, public meetings will be held to explain relative policies, laws, compensation standards and resettlement schemes to the affected people so that they can make knowledge and arrangement early.

3) Publicize the policies about land acquisition and removal through the mass media including newspaper, radio and television. 4) Issue Bulletin about Land Acquisition. The major contents of the bulletin include the brief description of the Project, the scope of land acquisition, the resettlement policies (involving compensation standards), the responsible institutions, the schedule of land acquisition, the rights and duties of APs, grievance and appeal, monitoring and evaluation, etc. 5) Xingkai Lake Aquaculture Ltd. and affected villagers participate in land requisition and resettlement work: during implementation, Xingkai Lake Aquaculture Ltd. and affected villagers together with staffs

Resettlement Plan of Mishan City (Xingkai Lake)

of PMO, XLNNRAB make research and confirm final land quantities, consulting compensation standard and specific implemented plan. Through organizing democratize consultation, to confirm land regulate plan, land compensation fees using plan and investment benefit compensation plan. 6) The RP will be finalized and sent to PMO, Xingkai Lake Aquaculture Ltd., and published on website of ADB for related persons.

11.2 Complaint and Appeal

The project pays special attention to the APs participation throughout the compilation and implementation of RP, an open and effective procedure of grievance and appeal as follows will be established to avoid the occurrence of major grievances.

Stage１ If any AP or PAU is aggrieved by any aspect of the resettlement and rehabilitation plan, they can lodge an oral or written grievance with SPWPPOXLNNR directly. Those departments shall resolve the issue within two weeks.

Stage 2 If the aggrieved person (unit) is not satisfied with the decision on stage 1, they can bring the complaint to the attention of XLNNRAB after the receipt of the decision on Stage 1. Those Departments will make a decision on the complaint within two weeks.

Stage３If the aggrieved person (unit) is not satisfied with the decision on stage 2, they can appeal to XNNRAC after the receipt of the decision from project office and ask for administrative arbitration. Administrative arbitration organ will make a decision on arbitration within 2 weeks.

Stage４ If the AP or PAU is still dissatisfied with the decision on stage 3, they can appeal to the People’s Court in accordance with Civil Procedure Act after receiving administrative arbitration. AP or PAU can make an appeal for any aspect of the resettlement including compensation rate.

Figure 11-1 Complain and Appeal Channel

The APs have been informed about the above grievance and appeal procedure through holding meetings or other approaches to understand that they have the rights of grievance and appeal.

Resettlement Plan of Mishan City (Xingkai Lake)

12 Monitoring

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

The internal monitoring is undertaken by HPSPPMO, XNNRAC and XLNNRAB with the objectives to ensure all responsible entities to execute the RP and to keep good performance in the implementation.

The independent monitoring and evaluation is done by an independent monitoring agency that will carry out regular monitoring and evaluation to the resettlement activities. The agency, approved by ADB and HPSPPMO, will undertake the independent monitoring of the Project in respects of (i) operation efficiency of the resettlement institution, (ii) implementation schedule of resettlement, (iii) compensation and restoration for the permanent and temporary land acquisition, and (iv) tracking investigation and analysis to the standards of production and livings of the APs. The M&E agency, being independent of the project, will inspect the whole implementation from an overall and long-term point of view. The M&E agency will track the resettlement activities of the Project to evaluate whether the implementation of resettlement (i) obeys the national laws related to LAR, (ii) conforms to the Involuntary Resettlement Policy of ADB, and (iii) restores or increases the standards of production and living of the APs. The M&E agency will put forward proposals to PMO in time so that the problems taking place in the implementation of the resettlement can be solved as soon as possible.

12.1 Internal Monitoring and Supervision

HPSPPMO will develop an internal monitoring framework to supervise the resettlement activities. It establishes relevant database on land acquisition, house demolition and resettlement. And the database contributes to compiling the resettlement planning, and carrying out internal monitoring on the whole implementation process. It will be conducted quarterly as per ADB requirement, and internal monitoring report to be prepared and submitted to ADB.

12.1.1 Implementation Procedures

During the implementation, SPWPPOXLNNR will be responsible for internal M&E, collect and record implementation information of resettlers affected by land requisition, villagers affected by temporary

Resettlement Plan of Mishan City (Xingkai Lake)

occupation and resettlement and restoration of displaced people, and they deliver the record of the current activities in time to HPSPPMO, so as to keep continuous monitoring, and report implementation schedule.

In the above monitoring system, smooth and continuous flow of information should be realized by filling up and reporting information table with fixed format from XLNNRAB, XLNNRAB and XNNRAC to HPSPPMO.

12.1.2 Indicators to be monitored

■ Conformity with the policies and regulations of RP ■ Provision of jobs to one person in each affected household ■ Training for employees ■ Provision of replacement land for renting ■ Participation of APs during implementation ■ Staffing, training, work schedule and effectiveness of the institutions.

12.1.3 Staff

Staffing on resettlement and land requisition is explained in Chapter 10. Table 12-1 shows the staffing responsible for monitoring and data processing.

Table 12.1 Staffing of Monitoring Implementation

NO. INSTITUTIONS FREQUENTENT PART-TIME STAFF STAFF 1 SPWPPOXLNNR 1 2 2 XLNNRAB 2 4 3 XNNRAC 1 2 4 HPSPPMO 1 2

12.2 External Monitoring

External monitoring institution will carry out monitoring activities based on surveyed data recorded by survey and design institute and utilized by resettlement implementation organ.

Resettlement Plan of Mishan City (Xingkai Lake)

12.2.1 Organization and Responsibility

HPSPPMO will invite universities and design institutes recognized by ADB as external monitoring institution. The institution will periodically monitor and evaluate the implementation of RP, and give advice and suggestions. See Appendix 1 for Outline of Independent Monitoring and Evaluation on Resettlement.

(1) Baseline survey

A baseline survey is carried out on the farm, production group and APs and houses affected by land acquisition to obtain basic data about their living standards and production condition (including living, business and income). Living standards and production condition investigation will be carried out annually to follow the changes of APs’ production and living standard. Typical sampling investigation (sampling households are taken out by random sample), visiting at random and observe on the spot are adopted to get necessary data, and statistical analyze on this for evaluation.

(2) Regular monitoring and evaluation External monitoring institution carries out regular tracing monitoring on rehabilitation two times for a year by investigation on the spot, sampling household tracing survey and random discussion with APs. Monitoring indicators are as follows:

■ Training and employment ■ Resume of displaced persons’ production and living level ■ Schedule of abovementioned items ■ Displace persons’ social psychology ■ Organization of rehabilitation.

(3) Public consultation

External monitoring institution attends public consultation meeting during compilation and implementation of RP By doing these, the institution appraises the effectiveness of public participation.

(4) Grievance Redress

External monitoring institution often visits some places and appraises PMO and implementation agencies receiving grievance to ask the disposition of grievance complaint issues, and also meets complaining APs and provides measures and suggestions aiming at existing problems so that implementation of rehabilitation is much more effective.

Resettlement Plan of Mishan City (Xingkai Lake)

12.2.2 Procedures

■ Compiles outline for monitoring and evaluation ■ Prepares survey outline, table of questionnaire ■ Designs sampling scale and determines typical sampling households ■ Carries out baseline survey ■ Establishes monitoring and evaluation information system ■ Conducts local socioeconomic survey ■ Monitors resettlement implementation organization ■ Monitors sampling residents ■ Arranges monitoring data, establish database ■ Conducts comparing analysis ■ Develops monitoring and evaluation reports.

Resettlement Plan of Mishan City (Xingkai Lake)

13 Appendix 1 Outline of Independent Monitoring and Evaluation on Resettlement

13.1 Objectives of Monitoring and Evaluation

According to the requirements of ADB resettlement policies, external monitoring and evaluation on resettlement of Heilongjiang Provincial Sanjiang Plains Wetland Protection Project is carried out, comparing and analysis of changing conditions of displaced persons’ living and production and rehabilitation induced by land acquisition, through checking the process, fund, management of land acquisition and resettlement, follow-up evaluation on land acquisition and resettlement. While reports are submitted to ADB, HPSPPMO and related superior departments regularly (twice a year), information and suggestions are provided, which is the reference to decision of related departments. Through external monitoring and evaluation, ADB and project departments in charge can have a well know about whether land acquisition and resettlement is achieved on schedule and with stipulated quality, and problems will be brought forward, and suggestion for improvement will be put forward.

13.2 Contents of Monitoring and Evaluation

(1) M&E on Progress of Land Acquisition and House Demolition

project affects.

(2) M&E on Progress of Rehabilitation

Including:①progress of land adjustment;②progress of resettlement area construction; ③progress

of resettlement houses

(3) M&E on Fund Fulfillment and Utilization Including: ©fulfillment condition of fund transfer; ©Utilization condition of fund (plan and actual)

(4) M&E on Displaced persons’ Living Condition

Including:①displaced persons’ living and production condition before resettlement; ② displaced persons’ living and production condition after resettlement;③contrast analysis and evaluation of displaced persons’ employment and living condition before-and-after resettlement.

Resettlement Plan of Mishan City (Xingkai Lake)

13.3 Technical Method

See Figure 13.1 for external M&E technical method.

13.4 External Monitoring Institute

External M&E on resettlement of the project is undertaken by external M&E agency, which should be entrusted by HPSPPMO and approved by ADB.

13.5 Institutional Framework of Monitoring and Evaluation

■ HPSPPMO entrusts external M&E institute to be responsible for specific survey, data collection of M&E by PMO, then calculate and analyze it, and examine the results. ■ External M&E institute form Resettlement M&E Group of Heilongjian Province Sanjiang Plains Wetland Protection Project, whose task is that, under the directions of Project officer of ADB, carry out M&E on resettlement, and take charge of compiling M&E outline, establish monitoring site, and preside over on-spot survey and inside analysis, and take charge in compiling resettlement M&E reports. ■ PMO provides cooperation of staff and transportation etc. during resettlement M&E group carries out on-spot survey.

13.6 Methods of Monitoring and Evaluation

■ The method of combination of on-spot survey, calculating analysis and experts comprehensive evaluation is adopted. ■ The survey method of combination of spot and side is employed. Comprehensive survey on process, fund and institute and management etc of resettlement is conducted. Sampling survey on the resettled households is conducted. ■ Method of classified stochastic sampling etc is adopted in survey, and spot follow-up survey on typical resettled households is conducted. Sampling proportion: 50%. ■ Methods of survey sheet, interview, inquiring files and documents etc are employed in comprehensive survey. ■ Besides letter data, information such as pictures, records, kinescope and practicality etc should be collected.

Resettlement Plan of Mishan City (Xingkai Lake)

Figure 13.1 External M&E Technical Method

13.7 Schedule of External M&E on Resettlement

 October 2011, set up independent resettlement M&E group, and compile work outline.  October 2011, do independent resettlement M&E preparation well, including, compiling survey outline and sheet, set up monitoring system, and nail down tasks and choose monitoring sites.  November 2011, conduct baseline survey.  January 2012, first monitoring, submit No.1 M&E report.  December 2012, second monitoring, submit No.2 M&E report.  December 2013, third monitoring, submit No. 3 M&E report.

Resettlement Plan of Mishan City (Xingkai Lake)

14 Appendix 2 Due Diligence Report

According to opinions of the ADB delegation, resettlement experts visited Xingkai Lake National Nature Reserve in December 2011 to understand the resettlement which started in May, 2010. Resettlement Process and Effect Analysis

14.1 Xingkai Lake Aquaculture Ltd.

It is understood that, land contracts of 9 affected families and Xingkai Lake Reserve Management Bureau expired in December, 2009. After the expiration, the two parties agreed that the contract is not continued. Because the contracted land is the core area and low-lying, it is affected by flooding, the annual income of farmers is not stable. Therefore, the land rental prices are very cheap (50yuan/ mu). If the flood is larger, Xingkai Lake Aquaculture Ltd. would also be free of rent; a year rent income of Xingkai Lake Aquaculture Ltd. is less than 250,000 yuan. Considering that the Xingkai Lake Aquaculture Ltd.and Xingkai Lake Reserve Management Bureau belong to Xingkai Lake Management Committee, the returned land is originally wetland and belongs to the state and the project has invested over 10,000,000 to Xingkai Lake Reserve. Therefore, Xingkai Lake Management Committee decides that no cash compensation is required for Xingkai Lake Aquaculture Corporation; meanwhile, Xingkai Lake Aquaculture Ltd. has been incorporated in the ecological tourism of the project, and will benefit from tourism revenues.

14.2 Resettlement of Affected Farmers

Kou Xianxue was arranged in Donggang work station of reserve，contract position, whose income is 25,000 yuan in 2011; Li Chunlin was placed in Xigang management station of reserve, contract position, whose income is 24,000 yuan in 2011; Zhang Jingquan was arranged in Xigang maintenance station of reserve, contract position , whose income is 25,000 yuan in 2011; Chuang Shaoming was arranged in Donggang management station of reserve, contract position , whose income is 22,000 yuan in 2011; Ma Tingshun was arranged in Donggang management station of reserve, contract position, whose income is 22,000 yuan in 2011; Duan Zhongjie, Tang Guoqing, Ma Cheng and Liu Haibo were placed in the Xingkai Lake Management

Resettlement Plan of Mishan City (Xingkai Lake)

Administrative Enforcement Bureau, contract position, and their income was11,000 yuan in 2011. Accordingly, to make a questionnaire survey and analysis on affected households in 2011. The results are as follows.

Table A2-1 Income of affected households in 2011 Land area of long term Gross income of yield New Wage contract land in their agricultural Annual housing income Name income village (Yuan）（））4 （Yuan）（mu） kg income (Yuan Kou Xianxue 122 73200 204960 25000 229,960 Li Chunlin 97 58200 162960 24000 186,960 Zhang Jingquan 162 97200 272160 25000 297,160 Chuang SHAOMING 150 90000 252000 22000 274,000 Ma Tingshun 130 78000 218400 22000 240,400 Duan Zhongjie 110 66000 184800 11000 195,800 Tang Guoqing 160 96000 268800 11000 279,800 Ma Cheng 120 72000 201600 11000 212,600 Liu Haibo 92 55200 154560 11000 165,560 Total 1143 685800 1920240 162000 2,082,240 Per household 127 76200 213360 18000 231,360

Table A2-2 Expenditure structure of affected household in 2011 Per household Item Sum (Yuan） proportion（%） Yuan/household ） Total productive expenditure 400010 44445.56 50.84% Fertilizer 88000 9777.78 11.18% Seed 80010 8890.00 10.17% Pesticide 68000 7555.56 8.64% Productive electricity 44000 4888.89 5.59% Mechanization cost 100000 11111.11 12.71% Other （contract fees in it） 20000 2222.22 2.54% Living expenditure 386842 42982.44 49.16% Byproduct 122540 13615.56 15.57% Clothing 20562 2284.67 2.61% Water, electricity, 35740 3971.11 4.54% fuel cost Medicine and health 8780 975.56 1.12% Care Transportation 28830 3203.33 3.66%

4 The price of rice of Mishan City in 2011 is 2.8yuan/kg.

Resettlement Plan of Mishan City (Xingkai Lake)

Per household Item Sum (Yuan） proportion（%） Yuan/household ） Cultural, education and 84820 9424.44 10.78% amusement Follow present 85570 9507.78 10.87% Total 786852 133881.11 100.00%

14.3 Comparison Analysis of Income and Expenditure

See Table14-3 for the comparison of incomes and expenditure in 2009 and 2011. In 2011, the net income of affected households was Yuan, xx% more than that of 2009.

Table A2-3 Balance Table of Income and Expenditure (yuan) Item Actual 2009 Actual 2011 Without Project 2009 Total gross income 1,692,984 2,082,240 2,600,000

Total productive expenditure 902,260 400,010 900,000

Total living expenditure 302,670 386,842 390,000 Net income 790,724 1,682,230 1.700,000

Savings 488,054 1,295,388 1,310,000

Net income per household 87,858 186,914 189,000

Net income per capita 29,286 62.305 63,000

From above table, in 2011 the gross income of the affected villages increases by 23% while the production expenditures were less than half. The reason for that is the price of food appreciates. The purchase price of rice increased from 1.84yuan/kg in 2009 to 2.8yuan/kg at present, and the markup is 152.17%. In addition to some food subsidies, the income of farmers in Sangjiang Plain is very high, which is also good external conditions for the project. This resulted in a doubling of net incomes and savings increased by 165%, so the affected households were much better off. The “without project” case was also considered, whereby similar output was maintained but with 2011 prices and costs; the result was basically the same as the actual situation (i.e., they would have been equally better off as well so we can’t say this was attributable to the resettlement measures). This situation will be monitored for another two years to ensure incomes and livelihoods are sustainable.