Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

Home , Daguan Park, Ludian County, Shuifu, Yongshan County, Yunnan, Zhaotong

Resettlement Plan (Draft)

September 2020

PRC: Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

Prepared by the People’s Government of Zhaotong City for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 5 August 2020) Currency unit – yuan (CNY) CNY1.00 = $0.1434 $1.00 = CNY6.9736

ABBREVIATIONS

AAOV – average annual output value ADB – Asian Development Bank AH – affected household AP – affected person DDR – due diligence report DI – design institute DMS – detailed measurement survey DRC – Development and Reform Committee EM – ethnic minority EPB – environmental protection bureau FGD – focus group discussion FSR – feasibility study report GDP – gross domestic product GRM – grievance redress mechanism ha – hectare HD – house demolition HH – household IA – implementing agency km – kilometer km2 – square kilometer LA – land acquisition LAB – land administration bureau LACRP – land acquisition compensation and resettlement plan LAR – land acquisition and resettlement LEF – land-expropriated farmer LUEFF – land use for ecological farming or forestry LURPI – land use for rural public infrastructure LURT – land use right transfer LWRB – Ludian County water resources bureau m – meter m2 – square meter M&E – monitoring and evaluation MLG – minimum living guarantee standard MLS – minimum living security minimum living security mu – a Chinese unit of measurement (1 mu = 666.67 m2) NPS – nonpoint source pollution NRB – natural resources bureau PIU – project implementation unit PLA – permanent land acquisition PMO – project management office PRC – People’s Republic of China RIB – resettlement information booklet RP – resettlement plan

SLO – state-owned land occupation SPS – ADB’s Safeguard Policy Statement TLO – temporary land occupation WWTF – wastewater treatment facility YPG – Yunnan Provincial People’s Government ZCG – Zhaotong City People’s Government ZMG – Zhaotong Municipal People’s Government

NOTE

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

This resettlement plan (draft) is a document of the borrower. The views expressed herein do not necessarily represent those of the Asian Development Bank’s (ADB) Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

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, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Resettlement Plan (Draft)

PRC (52025): Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

The People’s Government of Zhaotong City

September 2020

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Abbreviations

AAOV average annual output value ADB Asian Development Bank AH affected household AP affected person DDR due diligence report DI design institute DMS detailed measurement survey DRC Zhaotong Development and Reform Commission EM ethnic minority EPB environmental protection bureau FGD focus group discussion FSR feasibility study report GDP gross domestic product GRM grievance redress mechanism ha hectare HD house demolition HH household IA implementing agency km kilometer km2 square kilometer LA land acquisition LAB land administration bureau LACRP land acquisition compensation and resettlement plan LAR land acquisition and resettlement LEF land-expropriated farmer LUEFF land use for ecological farming or forestry LURPI land use for rural public infrastructure LURT land use right transfer LWRB Ludian County water resources bureau m meter m2 square meter

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

M&E monitoring and evaluation MLG minimum living guarantee standard MLS minimum living security mu a Chinese unit of measurement (1 mu = 666.67 m2) NPS nonpoint source pollution NRB natural resources bureau PIU project implementation unit PLA permanent land acquisition PMO project management office PRC People’s Republic of China RIB resettlement information booklet RP resettlement plan SLO state-owned land occupation SPS ADB’s Safeguard Policy Statement TLO temporary land occupation WWTF wastewater treatment facility YPG Yunnan Provincial People’s Government ZCG Zhaotong City People’s Government ZMG Zhaotong Municipal People’s Government

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Definition of Terms

Affected and/or In the context of involuntary resettlement, affected and/or displaced Displaced Persons: persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Compensation: Money or payment given to affected persons for property, resources, and income losses.

Entitlement: According to the losses categories of affected persons, they are entitled to get compensation, income restoration, relocation costs, income subsidies, and resettlement to restore socioeconomic conditions.

Income Restoration: Rebuild the affected persons’ source of income and living standard.

Resettlement: Rebuild houses and properties, including productive land and public facilities at another area.

Resettlement Impact: Material and immaterial property losses due to land acquisition and resettlement, including loss of residential houses, communities, production land, income sources, subsidies, culture centers, social structure, network, culture characteristic, and cooperative system.

Resettlement Plan: An action plan with timeline and budget, including resettlement strategies, targets, rights, action, responsibilities, monitoring, and evaluation.

Vulnerable Group: Refers to a special group of people who may be impacted more seriously during the resettlement process.

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table of Contents

EXECUTIVE SUMMARY ------I 1. PROJECT OVERVIEW ------1 1.1. PROJECT BACKGROUND ------1 1.2. PROJECT OUTPUTS AND CONSTRUCTION CONTENTS ------1 1.3. RESETTLEMENT PLAN PREPARATION ------2 1.4. MEASURES TO REDUCE LAND ACQUISITION AND RESETTLEMENT IMPACTS ---- 3 1.5. DUE DILIGENCE REPORT FOR EXISTING, ASSOCIATED, AND/OR LINKED ------FACILITIES ------4 2. PROJECT LAND USE AND IMPACTS ------7 2.1. OVERVIEW OF LAND USE TYPES AND IMPACTS------7 2.2. SCOPE AND OVERVIEW OF PROJECT LAND ACQUISITION AND RESETTLEMENT IMPACTS------8 2.3. DETAILED LAND ACQUISITION AND RESETTLEMENT IMPACTS (PERMANENT ----- LAND ACQUISITION AND TEMPORARY LAND OCCUPATION) ------9 2.3.1. PERMANENT LAND ACQUISITION------9 2.3.2. FARMLAND AND INCOME LOSS ANALYSIS ------13 2.3.3. STATE-OWNED LAND OCCUPATION ------15 2.3.4. TEMPORARY LAND OCCUPATION ------16 2.3.5. HOUSE DEMOLITION ------17 2.3.6. AFFECTED ENTERPRISE ------17 2.3.7. AFFECTED VULNERABLE GROUPS ------17 2.3.8. AFFECTED ETHNIC MINORITIES ------18 2.3.9. AFFECTED GROUND (STRUCTURES) ATTACHMENTS ------19 2.3.10. SUMMARY OF LAND ACQUISITION AND RESETTLEMENT IMPACT SCOPE ----- 19 3. SOCIOECONOMIC PROFILE OF THE PROJECT AREAS------22 3.1. SOCIOECONOMIC PROFILE OF THE AFFECTED AREAS ------22 3.1.1. SOCIOECONOMIC PROFILE OF ZHAOTONG CITY ------22 3.1.2. SOCIOECONOMIC PROFILE OF ZHAOYANG DISTRICT ------22 3.1.3. SOCIOECONOMIC PROFILE OF LUDIAN COUNTY ------23 3.1.4. SOCIOECONOMIC PROFILE OF THE AFFECTED TOWNS AND VILLAGES ------24 3.1.5. EXISTING LIVELIHOOD MODES OF THE AFFECTED VILLAGES ------27 3.2. RESULTS OF SURVEY ON AFFECTED HOUSEHOLDS’ PROFILES ------27 3.2.1. FAMILY DEMOGRAPHICS ------30 3.2.2. AGE DISTRIBUTION OF THE POPULATION------32 3.2.3. EDUCATION DEGREE ------32 3.2.4. EMPLOYMENT ------32 3.2.5. LIVING CONDITIONS------32 3.2.6. GENDER ------32 3.2.7. HOUSEHOLD INCOME AND EXPENDITURES ------33 3.2.8. RESETTLEMENT WILLINGNESS SURVEY ------34 4. LEGAL AND POLICY FRAMEWORK------36 4.1. POLICIES, LAWS, AND REGULATION ON RESETTLEMENT ------36 4.2. NATIONAL LAWS AND REGULATIONS ------37 4.3. YUNNAN PROVINCIAL REGULATIONS ------45 4.4. ADB SAFEGUARD POLICY STATEMENT: REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ------49

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

4.5. THE GAPS AND GAP-FILLING MEASURES BETWEEN THE ADB POLICY AND THE PRC LAWS AND/OR POLICIES ------51 4.6. LAND ACQUISITION AND RESETTLEMENT PRINCIPLES OF THE PROJECT ------55 5. LAND ACQUISITION COMPENSATION STANDARDS AND CUT-OFF DATE ------56 5.1. COMPENSATION STANDARDS FOR PERMANENT LAND ACQUISITION ------56 5.2. COMPENSATION FOR TEMPORARY LAND OCCUPATION ------60 5.3. ENDOWMENT INSURANCE FEE FOR THE LAND-EXPROPRIATED FARMERS------61 5.4. AFFECTED ENTERPRISES ------62 5.5. COMPENSATION STANDARDS FOR GROUND (STRUCTURES) ATTACHMENTS -- 62 5.6. LAND TAXES AND OTHER ASSOCIATED FEES ------63 5.7. ENTITLEMENT MATRIX FOR THE LAND ACQUISITION AND RESETTLEMENT ----- 64 6. LIVELIHOOD RESTORATION PROGRAM ------68 6.1. CASH COMPENSATION FOR HOUSEHOLDS WITH MINOR LAND ACQUISITION IMPACTS------68 6.2. INCOME RESTORATION PROGRAM FOR HOUSEHOLDS SEVERELY AFFECTED BY THE LAND ACQUISITION ------68 6.2.1. AGRICULTURAL SUPPORT MEASURES------69 6.2.2. EMPLOYMENT ASSISTANCE------72 6.2.3. ENDOWMENT INSURANCE ------74 6.2.4. ACCESSIBILITY OF TRAININGS AND EMPLOYMENT SUPPORT ------75 6.3. RESTORATION PROGRAM FOR TEMPORARY LAND OCCUPATION------77 6.4. COMPENSATION AND/OR RESTORATION PROGRAM FOR AFFECTED ENTERPRISE ------77 6.5. SPECIAL ASSISTANCE PROGRAM FOR THE AFFECTED VULNERABLE GROUP -- 77 6.6. WOMEN’S DEVELOPMENT MEASURES ------78 6.7. MEASURES FOR ETHNIC MINORITIES ------78 7. INFORMATION DISCLOSURE, PUBLIC PARTICIPATION, AND GRIEVANCE ------REDRESS ------79 7.1. METHODS AND MEASURES FOR INFORMATION DISCLOSURE AND PUBLIC PARTICIPATION ------79 7.2. PUBLIC PARTICIPATION ACTIVITIES AT THE PREPARATION STAGE------80 7.3. PUBLIC PARTICIPATION ACTIVITIES FOR NEXT STAGES ------85 7.4. WOMEN’S PARTICIPATION ------85 7.5. GRIEVANCE REDRESS MECHANISM ------86 7.5.1. GRIEVANCE REDRESS PROCEDURES DURING LAND ACQUISITION ------86 7.5.2. RESPONSIBLE PERSONS FOR GRIEVANCE REDRESS ------87 8. ORGANIZATION AND RESPONSIBILITIES ------89 8.1. ORGANIZATIONAL STRUCTURE ------89 8.2. INSTITUTIONAL RESPONSIBILITIES ------90 8.3. RESETTLEMENT IMPLEMENTING AGENCY STAFFING AND FACILITIES------92 8.3.1. EQUIPMENT AND FACILITIES------93 8.3.2. TRAINING PROGRAM FOR RESETTLEMENT IMPLEMENTING AGENCY STAFF 93 9. RESETTLEMENT IMPLEMENTATION SCHEDULE ------95 9.1. KEY MILESTONES ------95 9.2. RESETTLEMENT IMPLEMENTATION SCHEDULE ------95 10. BUDGET ------98 10.1. LAND USE BUDGET ------98 10.2. FUNDING SOURCE AND UTILIZATION PLAN ------108 10.3. LAND USE FUND MANAGEMENT AND DISBURSEMENT ------108 10.3.1. FUND FLOW ------108

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

10.3.2. DISBURSEMENT PLAN------109 10.4. APPROVAL OF ADDITIONAL COSTS ------109 11. MONITORING AND EVALUATION ------110 11.1. INTERNAL MONITORING ------110 11.1.1. IMPLEMENTATION PROCEDURES ------110 11.1.2. MONITORING SCOPE ------110 11.1.3. INTERNAL MONITORING REPORTS ------110 11.2. EXTERNAL MONITORING ------110 11.2.1. SCOPE AND METHODS OF EXTERNAL MONITORING ------111 11.2.2. EXTERNAL MONITORING REPORTING ------112 11.3. RESETTLEMENT COMPLETION REPORT ------112

APPENDIX I: FRAMEWORK FOR THE LAND USE RIGHT TRANSFER ------114 APPENDIX II: FRAMEWORK FOR THE LAND USE FOR ECOLOGICAL FARMING OR FORESTRY ------144 APPENDIX III: FRAMEWORK FOR THE LAND USE FOR RURAL PUBLIC INFRASTRUCTURE ------179 APPENDIX IV: DUE DILIGENCE REPORT ON THE LAND ACQUISITION AND RESETTLEMENT FOR THE YUDONG RESERVOIR ------200 APPENDIX V: DUE DILIGENCE REPORT ON THE LAND USE FOR RURAL DISTRIBUTED WASTEWATER TREATMENT FACILITIES IN THE YUDONG RESERVOIR PROTECTION ZONE ------214 APPENDIX VI: DUE DILIGENCE REPORT ON THE TEMPORARY LAND OCCUPATION FOR THE LONGSHU RIVER REHABILITATION CONSTRUCTION PROJECT ------225

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

LIST OF TABLES

TABLE 1-1: COMPARISON OF DESIGN OPTIONS AND REDUCED LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 3 TABLE 1-2: SUMMARY OF EXISTING, ASSOCIATED AND/OR LINKED FACILITIES ...... 4 TABLE 2-1: FIVE TYPES OF LAND USE FOR THE PROJECT ...... 8 TABLE 2-2: LAND AREAS FOR SUBPROJECTS IN DIFFERENT TYPES OF LAND USE ...... 8 TABLE 2-3: PROJECT LAND ACQUISITION AND RESETTLEMENT IMPACT OVERVIEW...... 9 TABLE 2-4: DETAIL IMPACT SCOPE OF PERMANENT LAND ACQUISITION BY VILLAGE ...... 9 TABLE 2-5: DETAIL IMPACT SCOPE OF PERMANENT LAND ACQUISITION BY COMPONENT ...... 12 TABLE 2-6: AFFECTED VILLAGES BY PROJECT COMPONENT...... 12 TABLE 2-7: FARMLAND LOSS OF PERMANENT LAND ACQUISITION ...... 13 TABLE 2-8: INCOME LOSS DUE TO LAND ACQUISITION BY VILLAGES...... 13 TABLE 2-9: INCOME LOSS BY AFFECTED HOUSEHOLDS...... 14 TABLE 2-10: SUMMARY OF AFFECTED PEOPLE IN FOUR SIGNIFICANTLY AFFECTED VILLAGES ...... 15 TABLE 2-11: TEMPORARY LAND OCCUPATION BY VILLAGES ...... 16 TABLE 2-12: TEMPORARY LAND OCCUPATION BY COMPONENTS ...... 16 TABLE 2-13: VULNERABLE GROUPS ...... 18 TABLE 2-14: AFFECTED ETHNIC MINORITY PEOPLE ...... 19 TABLE 2-15: IMPACTS ON GROUND ATTACHMENTS ...... 19 TABLE 2-16: SUMMARY OF LAND ACQUISITION AND RESETTLEMENT LAND ACQUISITION AND RESETTLEMENT IMPACT SCOPE BY PROJECT AREA ...... 19 TABLE 2-17: SUMMARY OF LAND ACQUISITION AND RESETTLEMENT IMPACT SCOPE BY PROJECT COMPONENT ...... 21 TABLE 3-1: SOCIOECONOMIC PROFILE OF ZHAOTONG CITY, ZHAOYANG DISTRICT, AND LUDIAN COUNTY ...... 23 TABLE 3-2: SOCIOECONOMIC PROFILE OF THE AFFECTED TOWNSHIPS ...... 25 TABLE 3-3: SOCIOECONOMIC CONDITIONS OF THE AFFECTED VILLAGES IN 2018 ...... 25 TABLE 3-4: CHARACTERISTICS AGRICULTURE IN THE AFFECTED TOWNSHIP AND VILLAGES ...... 28 TABLE 3-5: HOUSEHOLD SAMPLING SURVEY DISTRIBUTION ...... 28 TABLE 3-6: INFORMATION ON SURVEYED AFFECTED HOUSEHOLDS ...... 29 TABLE 3-7: RURAL HOUSEHOLD INCOME AND EXPENDITURE STRUCTURE ...... 34 TABLE 3-8: RESETTLEMENT WILLINGNESS SURVEY OF THE AFFECTED HOUSEHOLDS ...... 35 TABLE 4-1: SUMMARY OF RELEVANT LAWS, POLICIES, AND REGULATIONS ...... 36 TABLE 4-2: COMPARATIVE ANALYSIS OF THE PRC SYSTEM AND ADB SPS AS WELL AS GAP-FILLING MEASURES IN THE RESETTLEMENT PLAN...... 52 TABLE 5-1: COMPENSATION STANDARDS FOR PERMANENT LAND ACQUISITION (FARMLAND AND GARDEN PLOT) ...... 57 TABLE 5-2: COMPENSATION STANDARD FOR PERMANENT LAND ACQUISITION (FORESTLAND)...... 57 TABLE 5-3: PER CAPITA FARMLAND IN THE PROJECT AREA...... 58 TABLE 5-4: RECLAMATION FEE FOR TEMPORARY OCCUPATION OF FARMLAND AND GARDEN PLOT.... 61 TABLE 5-5: COMPENSATION STANDARDS FOR TEMPORARY LAND OCCUPATION...... 61 TABLE 5-6: COMPENSATION STANDARDS FOR GROUND (STRUCTURES) ATTACHMENTS ...... 62 TABLE 5-7: LAND TAXES AND OTHER ASSOCIATED FEES ...... 63 TABLE 5-8: ENTITLEMENT MATRIX ...... 65 TABLE 6-1: LIVELIHOOD RESTORATION PLAN OF THE SIGNIFICANTLY AFFECTED VILLAGES ...... 70 TABLE 6-2: AGRICULTURAL TECHNIQUE TRAININGS IN THE PROJECT AREA ...... 71 TABLE 6-3: PUBLIC SERVICE JOBS IN SIGNIFICANTLY AFFECTED VILLAGES ...... 72 TABLE 6-4: ANNUAL EMPLOYMENT OPPORTUNITIES CREATED BY THE PROJECT ...... 73 TABLE 6-5: EMPLOYMENT STATISTICS IN 2018/2019 AND PROJECTIONS FOR 2020–2024...... 74 TABLE 6-6: TRAINING AND EMPLOYMENT SUPPORT PROGRAM ...... 76

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

TABLE 7-1: PUBLIC PARTICIPATION ACTIVITIES DURING PROJECT PREPARATION ...... 83 TABLE 7-2: PUBLIC PARTICIPATION PLAN DURING IMPLEMENTATION ...... 85 TABLE 7-3: CONTACT PERSONS OF RELEVANT AGENCIES...... 87 TABLE 8-1: RESETTLEMENT IMPLEMENTING AGENCY STAFFING...... 92 TABLE 8-2: OFFICIALS OF RELEVANT RESETTLEMENT AGENCIES OF THE PROJECT ...... 92 TABLE 9-1: RESETTLEMENT IMPLEMENTATION SCHEDULE...... 96 TABLE 10-1: LAND USE COMPENSATION RATE SUMMARY ...... 98 TABLE 10-2: LAND USE COST ESTIMATE ...... 100 TABLE 10-3: LAND USE COST BY PROJECT DISTRICT/COUNTY ...... 101 TABLE 10-4: LAND USE COST BY COMPONENTS ...... 104 TABLE 10-5: LAND USE INVESTMENT PLAN ...... 108 TABLE 11-1: SCHEDULE FOR COMPREHENSIVE SOCIAL MONITORING REPORT ...... 112

Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Executive Summary 1. Project Overview

The Asian Development Bank (ADB)-financed Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (hereinafter referred as “Project”) consists of four outputs and will be implemented in Zhaoyang District and Ludian County of Zhaotong City in Yunnan Province of the People’s Republic of China (hereinafter referred as “PRC”). The overall objective of the project is to improve the condition of water resources and environment in the Sayu River Basin in Zhaotong City. The four outputs of the project include (i) wastewater management and pollution control in the Sayu River Basin strengthened; (ii) water resources management in the Sayu River improved; (iii) eco-compensation mechanism for the Sayu River Basin established; and (iv) education, capacity, and public awareness for water pollution management strengthened. The outputs (i) and (ii) of the project involve civil works construction and land acquisition (LA) and resettlement (LAR) impacts, while the outputs (iii) and (iv) do not involve any LAR. An environmental and social management system has been prepared for the output (iii) to screen and avoid LAR impacts. The land use for the project can be divided into five categories: (i) permanent LA (PLA), (ii) state- owned land occupation, (iii) land use right transfer (LURT), (iv) land use for ecological farming or forestry (LUEFF), and (v) land use for rural public infrastructure (LURPI). In addition, some temporary land occupation (TLO) will be required during the project construction. The total cost estimate for the land use is 108.8241 million yuan. Voluntary agreements for LURT, LUEFF, and LURPI will be finalized during the implementation; and frameworks on respective land use types have been prepared. The due diligence report for land used for some existing facilities is also prepared. This resettlement plan (RP) is primarily for the scope of PLA and TLO for the project; while it also includes the budget as well as frameworks for LURT, LUEFF, and LURPI in appendices to ensure their proper implementation along the RP.

2. Land Use, Acquisition, and Resettlement Scope and Impacts

The project will involve land use for different components and/or activities: (1) waste management; (2) solid waste management; (3) pilot eco-villages to reduce emission; (4) wetlands construction to reduce nonpoint source pollution; (5) establishment of quantifiable soil and water conservation model; (6) promotion of low-emission agriculture; and (7) ecological river embankment construction. The project will require a total land use of 28,914.74 mu, including the PLA of 743.38 mu; the LURT of 416.49 mu; the LUEFF of 25,765.59 mu; the LURPI of 15.4 mu; and the state-owned land occupation (original river course land) of 1,973.88 mu. In addition, the project will require the TLO of 4,828.06 mu during construction. The land use of the project will affect 27 communities and/or administrative villages in seven towns in Zhaoyang District and Ludian County of Zhaotong City.

P I Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

The project will require the PLA of 743.38 mu collective land, including 530.76 mu of farmland (accounting for 71.4%); 57.85 mu of garden plots (accounting for 7.8%); 115.57 mu of forestland (accounting for 15.5%); 27.41 mu of grassland (accounting for 3.7%); 10.57 mu of industry and mining land (accounting for 1.4%); and 1.22 mu of transportation land (0.2%). The PLA will affect a total of 108 village groups of 23 communities and/or administrative villages in seven towns (Dazhaizi, Leju, Sayu, and Sujia in Zhaoyang District; and Longshu, Shuimo, and Xinjie in Ludian County) in Zhaotong City. A total of 1,257 households (HHs) with 4,386 will be affected by the PLA. The project does not involve any residential house and structure demolition. It will affect a piece of collective land rented by one enterprise. No shops or small business will be affected by the project. Some ground attachments will be involved.

3. Policy Framework and Compensation Rates

This RP is prepared in accordance with relevant national, Yunnan provincial, and Zhaotong municipal laws and policies on the LAR, as well as ADB’s requirements on Involuntary Resettlement in its Safeguard Policy Statement (2009). The resettlement and livelihood restoration measures aim to at least restore the affected HHs’ (AHs) livelihoods to the levels before the project, improve income and living levels of vulnerable groups, restore affected infrastructures, and increase employment opportunities of the affected persons (APs). Compensation standards for permanent land acquisition. According to the Yunnan Province’s Unified Annual Output Value Standards and Comprehensive Land Price Compensation Standard for Land Acquisition (2014 revised) and local LAR practices, (1) the land compensation rate is 32,604 yuan/mu in Ludian County; 30,350 yuan/mu in Sujia Town of Zhaoyang District; and 43,550 yuan/mu in Leju and Sayu towns of Zhaoyang District; (2) the compensation rate for young crops is calculated at twice of the annual output value for the garden plot, and one annual output value for farmland; (3) the compensation rate for forestland is 7,500 yuan/mu and 4,500 yuan/mu for shrubland; (4) the compensation for TLO is calculated based on one annual output value; (5) the compensation rate for 5,680 square meters of sand mining site of a private enterprise is 80,000 yuan/mu. Anticipated land rental rate for land use right transfer of construction of wetlands. (1) The land transfer fee will be 13,500 yuan/mu for 15 years (average of 900 yuan/mu/year) for affected villagers in Ludian County; and (2) the land transfer fees cover the land rental for 15 years. Land subsidies for land use for ecological farming or forestry. (1) For current basic farmland to be planted with perennial herb (Chinese herbal medicine), the annual eco-compensation subsidy is 600 yuan/mu for a duration of 5 years; (2) for current normal farmland, the annual eco- compensation subsidy is 600 yuan/mu for a duration of 20 years; (3) for using current forestland for planting trees, no eco-compensation subsidy is provided while the forest benefits to respective landowners; (4) for agricultural fertilizer control, the annual eco-compensation subsidy is 100 yuan/mu for a duration of 5 years; (5) for fertilizer reduction, the annual eco-compensation subsidy is 80 yuan/mu for a duration of 5 years; and (6) for reduction of agricultural chemicals, the annual eco-compensation subsidy is 100 yuan/mu for a duration of 5 years.

P II Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Land use for rural public infrastructure. For construction of small distributed wastewater treatment facilities and septic tanks, and infrastructure in the pilot eco-villages will be compensated in comprehensive standards of 32,604 yuan/mu for paddy and dry farmland and 16,302 yuan/mu for grassland.

4. Resettlement and Restoration

Based on the sampling HH survey, the average agricultural income of the AHs accounts for 39.02% of their total HH income, while the non-agricultural income accounts for 60.98% in the project area. The project will acquire the farmland of the AHs with land loss rate between 0.1% and 85%, and the income loss rate of the AHs after the LA is between 0.05% and 43%. To minimize the impacts of the PLA and restore the APs’ livelihood, detailed livelihood restoration programs have been prepared based on in-depth consultations, such as cash compensation, agricultural development measures, and employment services (supports of employment opportunities, skill training, special care of vulnerable groups, etc.). These measures will help the APs, particularly the severely affected, to mitigate the loss due to the LA, and restore their income and livelihood levels after the LA.

5. Public Participation and Grievance Redress Mechanism

Several rounds of public participation have been conducted since the RP preparation kicked-off in May 2019. The project scope, rationale, benefits, and impacts, as well as applicable compensation policies and draft RP were consulted with affected communities and villagers publicly. Meetings were held with affected village leaders and farmer representatives about overall socioeconomic background of the project area, and their expectations and concerns were collected and integrated in this RP. Some local resettlement experiences were shared and adopted in the RP as well. Household questionnaire survey was carried out with the APs to know their livelihood condition, thoughts, and expectations about the project. A total of 429 AHs were sampled during the survey. Additional visits to Zhaoyang District and Ludian County government agencies (including All-China Women’s Federation, Natural Resources Bureau [NRB], Employment Bureau, Labor Resources and Social Security Bureau, Agriculture and Rural Affairs Bureau, Poverty Alleviation and Development Office, etc.) were taken for collecting more data and understanding relevant policies, comments, and suggestions related to the project. To ensure that the APs have effective channels to file complaints on any issue associated with the LAR, a grievance redress mechanism has been established during the preparation and described in relevant section of the RP. The grievance redress mechanism has been discussed during the RP preparation and will be further notified to the APs while distributing resettlement information booklet through meeting or otherwise, so that the APs are fully aware of their right of complaint.

6. Institutional Arrangement

The resettlement implementing agencies of the project have been established at all levels. Zhaotong City project management office (PMO) is responsible for the project implementation;

P III Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan and for organizing the resettlement, formulating policies on resettlement activities of the project, and coordinating relations among the resettlement agencies at all levels. Zhaoyang District and Ludian County PMOs are responsible for handling day-to-day affairs in resettlement planning and implementation; and exercising the management, planning, implementation, coordination, supervision, and monitoring of resettlement. Zhaoyang District and Ludian County NRBs and their subsidiaries (LA offices in towns) are responsible for implementation of the RP. Zhaotong Labor Resources and Social Security Bureau is responsible for the APs’ transfer to non-agricultural status and promoting employment. Zhaotong All-China Women’s Federation supports female labors employment and protects their legal rights. All township governments and village committees support the Zhaoyang District and Ludian County governments’ Land and Resources Bureaus to implement the RP. In addition, an external monitoring and evaluation (M&E) agency will be recruited by Zhaotong PMO to ensure the whole implementation process of the RP is strictly in line with the domestic and ADB’s policies related to the LAR.

7. Resettlement Schedule

According to the timeline of the project, the resettlement schedules will be linked up with the construction schedules of the components. The main part of the LAR of the project will be commenced in November 2020 and end in December 2022. The civil works of the project will be started in December 2020.

8. Resettlement Budget

The total budget for land use with various types of compensations of the project is 108.8241 million yuan (accounting for 6.69% of the total project investment), of which budget for the LAR is 23.2555 million yuan; for the TLO is 32.6237 million yuan; for ground attachments is 8.657 million yuan; for the LURT for construction of wetlands is 5.6226 million yuan; for the LURPI for septic tanks and public facilities in pilot villages is 0.4605 million yuan; and other cost is 38.2047 million yuan.

9. Monitoring and Evaluation

The RP implementation will be subject to internal and external monitoring. The internal supervision and monitoring will be performed by the Zhaotong PMO (with supports from Zhaoyang District and Ludian County PMOs, NRBs, Finance Bureaus, etc.) to ensure that resettlement is conducted as planned. The external M&E will be conducted by an external M&E agency to be recruited by the Zhaotong PMO. External M&E reports shall be submitted semiannually to ADB by the external M&E agency directly until a resettlement completion report is submitted to ADB.

P IV Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

1. Project Overview 1.1. Project Background

1. The Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (hereinafter referred as “Project”) will be implemented in Zhaoyang District and Ludian County of Zhaotong City in Yunnan Province of the People’s Republic of China (hereinafter referred as “PRC”) to reduce water pollution in the Sayu River Basin in Zhaotong City. Zhaotong City is at the intersection of Central Middle Northern Silk Road Routes (under the “One Belt and One Road”) and the Yangtze River Economic Belt of the PRC, which provide tremendous opportunities for social and economic development for the city. 2. The project implementation will reduce the water pollution of the Sayu River Basin, focusing on rural garbage and wastewater management, nonpoint source (NPS) pollutants control and reduction, establishment of an eco-compensation mechanism, and setting up related monitoring and management systems for a long-term improvement of ecological environment in the project area.

1.2. Project Outputs and Construction Contents

3. Per the feasibility study report (FSR) of the project, the project includes four outputs: Output 1: Wastewater management and pollution control in the Sayu River Basin strengthened. This output includes (i) waste management, (ii) solid waste management, (iii) pilot eco-villages to reduce emission, (iv) wetlands construction to reduce NPS pollution, (v) establishment of quantifiable soil and water conservation model, and (vi) promotion of low- emission agriculture; Output 2: Water resources management in the Sayu River improved. This output includes (i) establishment of river protection model, and (ii) establishment of smart water integrated management platform; Output 3: Eco-compensation mechanism for the Sayu River Basin established. This output includes (i) implementation of the existing horizontal eco-compensation agreement between the Ludian County Government and the Zhaoyang District Government, (ii) establishment and implementation of new town- and township-level horizontal eco-compensation mechanisms, and (ii) establishment and implementation of an eco-compensation fund which will contribute to sustainable water pollution management during and after the project; and Output 4: Education, capacity, and public awareness for water pollution management strengthened. This output includes (i) capacity development of government staff for rural water pollution management and eco-compensation, (ii) education of students for rural water pollution management and eco-compensation, (iii) public awareness raising, and (iv) dissemination and replication of project initiatives. 4. The Outputs 3 and 4 will not conduct any civil works construction involving land acquisition (LA) and resettlement (LAR). An environmental and social management system (ESMS) has been

P 1 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan prepared for the Output 3 to screen and avoid any LAR impacts. The construction contents and scale of the Outputs 1 and 2 are summarized as follows by subprojects: (1) Waste management: (i) 486.10 kilometers (km) of wastewater collection pipes for a constructed centralized wastewater treatment plant, (ii) construction of 25 rural distributed wastewater treatment facilities (WWTFs), and (iii) 17,323 manure collection tanks (5 square meters [m2] each) for 17,323 households (HHs) within the Sayu River Basin; (2) Solid waste management: (i) construction of two garbage pyrolysis facilities and three solid waste transfer stations; and (ii) provision of 1,604 bins and trash cans, and other transfer trucks and facilities; (3) Pilot eco-villages to reduce emission: (i) three natural villages of Anjiasongbao, Pojiao, and Xiaohebian of Jiufang Administrative Village (Xinjie Town); (ii) Liyuan natural village of Xinle Adminstrative Village (Longshu Town); and (iii) two natural villages of Alukuai and Goutou of Shuimo Administrative Village (Shuimo Town) to construct basic infrastructure (permeable pavements and green space, drainage systems, public eco-toilets, ecological riverbank, etc.) and publicity (construction of cultural activity rooms, environmental protection bulletin boards, audio systems, display screens, and other publicity facilities); (4) Wetlands construction to reduce nonpoint source pollution: construction of six pieces of wetlands in towns of Leju, Longshu, and Shuimo; (5) Establishment of quantifiable soil and water conservation model: afforestation in 27 pieces of land for water and soil conservation in towns of Longshu, Shuimo, and Xinjie; (6) Promotion of low-emission agriculture: construction of highland characteristic agricultural demonstration zone, including agricultural infrastructures, high-efficiency water conservation, water and fertilizer integration, etc. in towns of Longshu, Sayu, Shuimo, Sujia, and Xinjie; and (7) Ecological river restoration: ecological riverbank rehabilitation of 43 river sections with a total length of 98.3 km.

1.3. Resettlement Plan Preparation

5. A consulting design institute (DI), Xinjiang Corps Survey and Design Institute (Group) Co., Ltd., was engaged by the Zhaotong project management office (PMO) in August 2018 to prepare the domestic draft resettlement plan (RP). From May to September 2019, the RP preparation team undertook identification of the LA and impact scope and confirmation of affected HHs (AHs) and affected villages; conducted surveys to learn about the expectation and willingness of the AHs; and consulted with concerned local government departments on the compensation and resettlement policies. With assistance of transaction technical assistance consultants, this draft RP was prepared and submitted to the Asian Development Bank (ADB) for review and approval. 6. Main methods adopted to prepare this RP include (i) secondary data collection and analysis; (ii) site survey for collection of primary data; (iii) discussions with related local government departments and other relevant agencies on details of the RP; and (iv) interviews

P 2 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan with stakeholders, including sampling survey, focus group discussions (FGDs) in affected village groups and key informants interviews. 7. This draft RP shall be updated based on the detailed measurement survey (DMS) based on the detailed designs of the project, and the updated RP shall be approved by ADB prior to civil work contract awards and commencement of the LAR.

1.4. Measures to Reduce Land Acquisition and Resettlement Impacts

8. At the planning and FSR stage, the DI and the PMO of the project optimized the design, reduced farmland occupation, and avoided house demolition (HD) so as to minimize the LAR impacts. 9. The project design is optimized to minimize the LAR impacts to the extent possible. For example, the site selection of Output 1 solid waste management considered land use conservation, impacts on the surrounding areas and limitations, comments from the environmental protection bureau, land resources bureau, and the affected village groups. A comprehensive comparison of the options was conducted. The selected options minimized the LA and avoided the HD. Table 1-1: Comparison of Design Options and Reduced Land Acquisition and Resettlement Impacts Option A: Original Option B: Optimized Components Design Design LAR Impacts Reduced Avoided house Solid waste Solid waste transfer East of Longshu Junction between demolition of 80 square transfer station in Longshu Town Government Datou Village and meters, walls of 35 stations Town Office Xinle Village meters, and 4 persons near market town Avoided LA of 37.5 mu Garbage pyrolysis 1,000 meters Vacant plot of the Pyrolysis for construction of a 5- plant in Shuimo northeast of quarry in Shuimo plant kilometer road to the Town Sanjiazhai Town plant Rural Unified facilities (A2/O 43 sets of facilities distributed Process of oxidation technical process) for with total capacity Reduced land occupation wastewater pond + artificial ≤2 m3/d and facilities of 712 cubic of total 53.4 mu treatment wetland with solar power for meters/day (m3/d) facilities ≥5 m3/d

10. During construction of the project, some temporary facilities will be used together with permanent facilities to reduce occupation of farmland and forest and minimize the impacts on local people’s living and production. 11. At the RP update and implementation stage, following measures will be taken to further minimize the local impacts of the project: (1) The Zhaotong and local PMOs will be responsible to strengthen the daily communication among the PMOs, the DI, the implementing agencies (IAs), the AHs, and affected villages to find potential measures to further avoid and/or minimize the LAR impacts during preliminary design, and the RP update and implementation;

P 3 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(2) The individual resettlement specialist to be recruited for start-up support will organize meaningful consultation meetings with the IAs, the DI, affected communities, villager representatives, and other stakeholders on the final design and potential measures to reduce the LAR impacts during final design and RP update; (3) The project management resettlement specialist to be recruited by the Zhaotong PMO will be responsible to consult with the IAs, the DI, and affected communities and people to find out potential schemes to reduce the LAR impacts during the RP implementation stage. (4) The external resettlement monitor to be recruited by the Zhaotong PMO will be responsible to monitor and report the measures and results in avoiding and/or minimizing the LAR impacts throughout the project.

1.5. Due Diligence Report for Existing, Associated, and/or Linked Facilities

12. Due diligence reports on the LAR for existing, associated, and/or linked facilities of the project, such as the constructed Longshu wastewater treatment plant, small distributed rural WWTFs, and the Yudong Reservoir, are prepared and included as appendixes of the RP and summarized in Table 1-2. Table 1-2: Summary of Existing, Associated, and/or Linked Facilities

Land Acquisition Compen- Remain- Date of and Total Land sation ing Name of Cons- Opera-tional Capa- Compensa- Acqui- Standard Issues Link with Facility truction Period city tion Time sition (mu) (CNY/mu) (Y/N) Project Longshu From Dec 364 Yudong Dec river flows 2000 to million Dec 2000 2,052.26 4,063 No Reservior 2000 into the date m3 reservoir

Waste- Not water operated 24,779 collection yet due to Longshu Mar 4,000 for PLA and pipeline to no waste- Feb 2013 4.99 No WWTP 2019 m3/d 1,304 for be water TLO construct collection ed for the pipeline plant

As part of construction contents Longshu 24,779 From Mar of eco- river Mar 31.151 for PLA and 2018 to Oct 2017 196.80 No river rehabilita- 2018 km 1,304 for date rehabilitati tion TLO on included in the project Rural waste- May 150 As part of Jul 2017 Dec 2016 0.50 24,779 No water 2017 m3/d construc- treatment tion

P 4 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Land Acquisition Compen- Remain- Date of and Total Land sation ing Name of Cons- Opera-tional Capa- Compensa- Acqui- Standard Issues Link with Facility truction Period city tion Time sition (mu) (CNY/mu) (Y/N) Project facility in contents Wangjia- of waste- pingzi water Village of manage- Xinjie ment Town included in the Rural project wastewater Jun 150 Jul 2017 Dec 2016 0.50 34,842 No treatment 2017 m3/d facility in Zhaoyang

13. The LA or temporary land occupation (TLO) for all facilities listed in Table 1-2 was completed, and compensation for the LA or the TLO to affected people or village groups was paid. The affected people and village groups were consulted fully for purposes of the construction, compensation standards, and payment procedures. All affected people agreed to the compensation standards and received the compensation. Based on the field survey and visiting to affected villager representatives, there are no pending issues related to the LA or the TLO for construction of the facilities.

P 5 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Dazhaizi Town Sujia Town

Sayu Town

Xinjie Town

Leju Town

Longshu Town

Shuimo Town

Figure 1-1: Location of Project Construction Sites and Towns

P 6 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

2. Project Land Use and Impacts 2.1. Overview of Land Use Types and Impacts

14. The project will use land in five types: (i) permanent LA (PLA), (ii) state-owned land occupation (SLO), (iii) land use right transfer (LURT), (iv) land use for ecological farming or forestry (LUEFF), and (v) land use for rural public infrastructure (LURPI). (1) Permanent land acquisition. Based on the project needs and according to relevant laws, regulations, and procedures, the collective land will be acquired and converted to state-owned land, and the compensation and resettlement for the PLA will be provided for the affected rural collective economic organization and farmers. The project components involving the PLA include (i) rural WWTFs under wastewater treatment component, (ii) garbage pyrolysis plant and solid waste transfer stations under solid waste management, and (iii) wetlands construction and river embankment. A total of 743.38 mu of collective land needs to be acquired for the project. (2) State-owned land occupation. Construction of the river rehabilitation of the project will involve occupation of state-owned land in a total of 1,973.88 mu. The land will be used by the project construction without any need of compensation. (3) Land use right transfer. The farmers transfer their contracted farmland use right to the land users for the project (project implementation units [PIUs]) but reserving the land contract right; and the farmers will receive land transfer fees based on negotiation between parties. The LURT is mainly needed for the construction of wetlands where the basic farmland cannot be acquired, and the nature of farmland needs to be maintained. Aquatic plants with purification function will be planted to reduce NPS pollution; specific practice of the LURT is described in Appendix 1 (Framework for the LURT). The total land area required by the project in the LURT is 416.49 mu. (4) Land use for ecological farming or forestry. Without changing collective land use right and farmer’s contract right, the farmers will sign agreements with the PIUs on a voluntary basis to change land use from the traditional planting with intensive fertilizer and pesticide use into ecological farming or forests. Meanwhile, the farmland converted will be included into the scope of eco-compensation subsidies; and the demonstration zone of low-emission agriculture will be provided with agricultural subsidies or support by the project, as this will ensure the farmers’ earning will not be reduced. Project components involving the LUEFF include (i) “quantifiable soil and water conservation model,” and (ii) “promotion of low-emission agriculture.” The specific practice of the LUEFF is presented in Appendix 2 (Framework for the LUEFF). The total land area required by the project in the LUEFF is 25,765.59 mu. (5) Land use for rural public infrastructure. The project will help rural HHs to construct septic tanks, with land provided by the rural HHs themselves. Meanwhile, the project will pilot eco- villages; and help the village collective to construct public infrastructures, including village entrance signs, culture and activity facility, and public recreation square. The selected villages will provide the land use for their public infrastructures on their own through the system of “one case, one discussion.” The components involving use of collective land under the LURPI include (i)

P 7 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan septic tanks, and (ii) eco-village pilot. The specific practice of using collective land to carry out project activities under the LURPI is described in Appendix 3 (Framework for the LURPI). The total land required by the project in the LURPI is 15.40 mu. 15. The five types of the land use for the project components are summarized in Table 2-1. Table 2-1: Five Types of Land Use for the Project

Construction Content Project Outputs Subprojects Land Use Types PLA (wastewater pumping stations) (1) Waste management (Wastewater LURPI (wastewater treatment facilities, septic treatment) tanks) PLA (pyrolysis plants and solid waste transfer (2) Solid waste management stations) (3) Pilot eco-villages to reduce emission LURPI (public facilities in pilot villages) Output 1 (4) Construction of wetlands to reduce PLA (for normal farmland) nonpoint source pollution LURT (for basic farmland) (5) Quantifiable water and soil conservation LUEFF (converting farmland to forest, perennial model crops agricultural restructuring) LUEFF (plateau characteristic agriculture (6) Promotion of low-emission agriculture demonstration zone) Output 2 (7) Ecological river embankement PLA and SLO (river rehabilitation)

16. The land area to be used in the five methods by relevant components is summarized in Table 2-2. Table 2-2: Land Areas for Subprojects in Different Types of Land Use

LAR Types Types of Voluntary Agreements PLA SLO TLO LURT LUEFF LURPI Components (mu) (mu) (mu) (mu) (mu) (mu) (1) Waste management 1.27 1,503.12 7.45 (2) Solid waste management 30.69 (3) Pilot eco-villages 7.95 (4) Wetlands construction 153.98 16.50 416.49 (5) Quantifiable water and soil 304.08 6,676.25 conservation model (6) Promotion of low-emission 714.31 19,089.34 agriculture (7) Ecological river embankment 557.43 1,973.88 2,290.06 Total 743.38 1,973.88 4,828.06 416.49 25,765.59 15.40 2.2. Scope and Overview of Project Land Acquisition and Resettlement Impacts 17. The LAR of the project in the PLA and the TLO will affect a total of 108 village groups of 23 communities and/or administrative villages in seven towns (Dazhaizi, Leju, Sayu, and Sujia in the Zhaoyang District; and Longshu, Shuimo, and Xinjie in the Ludian County) in Zhaotong City (Table 2-3). The project will require the PLA of rural collective land of 743.38 mu, and the TLO of 4,828.06 mu. The PLA will affect 1,257 HHs with 4,386 affected persons (APs). The TLO will affect 3,206 HHs with 13,774 APs. In addition, the project will affect some land of an enterprise, and

P 8 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

some ground attachments. The SLO does not involve the AHs. The detailed number of the AHs and/or the APs is summarized in Table 2-3. Table 2-3: Project Land Acquisition and Resettlement Impact Overview

Villager Permanent Temporary Land Affected Component Town Village Group LA (mu) AHs APs Occupation (mu) Enterprise (1) Waste management 2 2 2 1.27 5 17 1,503.12 (Wastewater treatment) (2) Solid waste 4 6 6 30.69 22 75 1 management (3) Pilot eco-villages (4) Wetlands construction 3 3 8 153.98 63 220 16.50 (5) Quantifiable water and 304.08 soil conservation model (6) Promotion of low- 714.31 emission agriculture (7) Ecological river 7 20 96 557.43 1,167 4,074 2,290.06 embankment Total 7 23 108 743.38 1,257 4,386 4,828.06 1 2.3. Detailed Land Acquisition and Resettlement Impacts (Permanent Land Acquisition and Temporary Land Occupation) 2.3.1. Permanent Land Acquisition 18. A total area of the PLA is 743.38 mu, all being rural collective land, including 530.76 mu of farmland (71.41%); 57.85 mu of garden plot (7.8%); 115.57 mu of forestland (15.5%); 27.41 mu of grassland (3.7 %); 10.57 mu of mining and industrial land (1.4%); and 1.22 mu of transportation land (0.2%). The PLA will affect 1,257 HHs with 4,386 APs, as presented in Table 2-4. Table 2-4: Detail Impact Scope of Permanent Land Acquisition by Village

Location Rural Collective Land (mu) AHs/APs Sub- Paddy Dry- Garden Forest Town Village Village Group total field land Plot land Others AHs APs Sujia Village 3 2.25 2.25 3 10 Guazhai 5 9.44 9.44 5 17 Village 6 8.78 5.94 1.88 0.96 17 59 7 9.91 8.30 1.00 0.61 24 84 Sujia 8 5.98 5.19 0.79 20 70 Town Buchu Village 9 11.31 1.56 9.75 24 84 20 0.22 0.22 42 147 21 31.65 25.03 6.62 49 171 1 3.38 1.48 1.90 11 38 Yuba Village 2 19.92 3.06 16.12 0.74 10 35 1 2.16 0.47 1.69 16 57 Sayu Jule Village 2 1.31 0.28 1.03 12 42 Town 3 6.64 1.44 5.20 43 150

P 9 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

4 5.04 0.61 3.97 0.05 0.41 19 66 6 7.88 1.04 6.84 17 59 1 13.83 3.82 0.76 9.25 19 69 2 7.88 2.06 0.41 5.41 11 38 3 3.69 1.02 0.20 2.47 5 17 4 5.59 1.54 0.31 3.74 11 38 Leju Xinhe Village 9 1.72 0.42 1.30 9 31 Town 10 1.78 0.44 1.34 9 31 12 4.58 4.58 11 38 13 5.69 5.69 12 42 14 4.67 4.67 9 31 1 23.47 15.51 3.09 4.87 13 49 2 7.16 7.16 3 10 3 3.69 1.44 2.25 3 10 Xinlin Village 4 9.89 7.21 1.43 1.25 6 21 5 6.67 4.77 1.90 4 14

Dazhaizi 7 12.64 8.35 1.67 2.62 7 24 Town 8 9.29 5.92 3.37 5 17 1 11.84 7.16 1.43 3.25 6 21 2 13.77 5.97 2.19 5.61 5 17 Yufei Village 3 4.77 4.77 4 14 4 4.79 4.58 0.21 3 10 9 4.00 2.58 1.42 3 10 Naheicu Group 15.54 4.68 10.86 13 45 Xinpeng Changyuan 3.52 3.52 13 45 Village Group Xinpeng Group 2.10 2.10 15 52 Huangnizhai Xiaohegou 16.15 2.52 13.63 26 91 Village Group Yangchanggou 1.50 1.50 14 49 Group

Shuimo Goutou Group 7.24 3.37 3.87 13 45 Village Banbianjie 18.97 18.97 14 49 Shuimo Group Town Lujiawan Group 3.63 0.25 1.48 1.90 14 49 Heba Group 50.85 7.12 43.73 21 73 Heilu Village Yumazhai 10.57 10.57 6 21 Group Shulinbian 0.13 0.13 16 56 Group Wujiacun 7.57 7.57 6 21 Tiechang Group Community Xiaohebian 17.72 17.72 14 49 Group Sanhechang 4.27 4.27 2 7 Group 12 3.33 1.54 0.10 0.81 0.88 14 52 Shanqiao 14 3.32 0.97 0.08 1.56 0.71 16 56 Village Xinjie 15 3.98 1.60 0.13 1.08 1.17 20 70 Town

Pingdiying 14 0.88 0.26 0.02 0.41 0.19 15 52 Village 15 1.23 0.36 0.03 0.58 0.26 21 73

P 10 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

16 1.43 0.42 0.03 0.67 0.31 9 31 15 1.50 1.50 3 10 16 1.35 0.40 0.02 0.64 0.29 7 24 17 5.10 1.51 0.07 2.42 1.10 30 105 18 2.88 0.85 0.04 1.37 0.62 19 66 Xinjie Community 19 1.99 0.59 0.03 0.94 0.43 13 45 21 2.99 0.44 0.05 1.72 0.78 29 101 22 0.84 0.12 0.01 0.49 0.22 10 35 23 3.01 0.44 0.05 1.73 0.79 25 87 24 2.90 0.42 0.05 1.67 0.76 21 77 1 1.26 0.11 1.15 9 31 2 1.46 1.46 10 35 3 0.94 0.94 3 10 Jiufang 5 0.36 0.36 8 28 Village 6 0.38 0.38 9 31 8 0.87 0.63 0.24 9 31 9 0.59 0.59 8 28 Longshu 16 2.65 2.65 3 10 Community 3 0.47 0.39 0.08 3 13 4 0.40 0.33 0.07 3 13

Jintang 6 0.65 0.54 0.11 3 13 Village 10 7.16 4.33 2.83 7 24 12 7.88 4.85 3.03 10 35 13 22.32 20.34 1.98 7 24 16 2.15 1.79 0.36 13 45 17 1.75 1.46 0.29 10 35 18 7.56 6.30 1.26 10 35 19 1.13 0.94 0.19 7 24

Tangfang 20 1.24 1.03 0.21 7 24 Village 21 1.39 1.16 0.23 13 45 Longshu 22 9.26 7.72 1.54 7 24 Town 23 25.48 22.39 3.09 17 59 24 0.54 0.45 0.09 3 10 25 2.11 1.76 0.35 3 10 1 31.50 31.50 4 14 2 48.04 48.04 4 14 3 34.22 34.22 3 10

Zhaobi 5 0.34 0.34 2 7 Village 6 1.18 1.18 7 24 7 8.38 4.68 3.70 10 35 9 1.44 1.44 10 35 14 9.08 5.63 3.45 10 35 2 0.20 0.15 0.05 3 10 Guzhai 4 0.52 0.39 0.13 7 24 Community 5 1.18 0.88 0.30 13 45

P 11 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

20 1.31 1.31 7 24 21 3.67 3.06 0.61 13 45 22 2.39 2.39 13 45 23 0.84 0.70 0.14 3 10 Xinle Village 24 2.01 2.01 10 35 25 1.82 1.52 0.30 10 35 26 0.50 0.42 0.08 3 10 34 10.99 8.79 2.20 33 115 Total: 7 23 108 743.38 52.41 478.35 57.85 115.57 39.20 1,257 4,386

19. Among the seven components of Outputs 1 and 2, only the construction of components of (1) waste management (wastewater treatment), (2) solid waste management, (4) wetlands construction, and (7) ecological river embankment will involve the PLA, as presented in Table 2- 5. A total of 23 villages are impacted by the PLA, as presented in Table 2-6. Table 2-5: Detail Impact Scope of Permanent Land Acquisition by Component

Output/Component Rural Collective Land (mu) AHs/APs No. of Paddy Dry Garden Forest Affected Output Component Subtotal field land Land land Others AHs APs Villages (1) Waste management 1.27 1.27 5 17 2 (Wastewater treatment) (2) Solid waste 30.69 20.12 10.57 22 75 6 management (3) Pilot eco-

villages 1 (4) Wetlands 153.98 153.98 63 220 3 construction (5) Quantifiable water and soil

conservation model (6) Promotion of low-emission agriculture (7) Ecological river 2 557.43 31.01 324.37 57.85 115.57 28.63 1,167 4,074 20 embankment Total 743.38 52.41 478.35 57.85 115.57 39.20 1,257 4,386 23a a Excluded overlap villages where different components will be conducted together. Table 2-6: Affected Villages by Project Component Output/Component Affected Village Output Component Number Name (1) Waste management 2 Jiufang and Zhaobi (2) Solid waste management 6 Sujia, Guazhai, Tiechang, Heilu, Xinjie, and Longshu (3) Pilot eco-villages 1 (4) Wetlands construction 3 Xinhe, Tiechang, and Zhaobi (5) Quantifiable water and soil conservation model (6) Promotion of low-emission agriculture Buchu, Yuba, Jule, Xinhe, Xinlin, Yufei, Shuimo, Xinpeng, Tiechang, Huangnizhai, Heilu, Jiufang, 2 (7) Ecological river embankment 20 Shanqiao, Pingdiying, Xinjie, Jintang, Tangfang, Xinle, Zhaobi, and Guzhao Total 23a a Excluded overlap villages where different components will be conducted together.

P 12 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

2.3.2. Farmland and Income Loss Analysis 20. Among 743.38 mu of the PLA, the farmland accounts for 530.76 mu, which affect 1,257 HHs. As the LA is conducted in many small pieces of land, the farmland loss of each affected village group and the AHs is limited. The project will acquire the farmland of the AHs with land loss rate between 0.10% and 85%, and the income loss rate of the AHs after the LA is between 0.05% and 43%.The land loss rate of 74.10% of the AHs is below 10%; that of 16.60% of the AHs is 10%–20%; that of 4.5% of the AHs is 20%–30%; that of 2.6% of the AHs is 30%–50%; and that of 2.1% of the AHs is more than 50%, as presented in Table 2-7. Table 2-7: Farmland Loss of Permanent Land Acquisition Land Loss Rate (AHs) Towns Village AHs <10% 10%–20% 20%–30% 30%–50% >50% Sujia Village 3 2 1 Guazhai Village 5 4 1 Sujia Town Buchu Village 176 170 3 1 2 Yuba Village 21 16 5 Sayu Town Jule Village 107 100 5 1 1 Leju Town Xinhe Village 96 32 26 17 13 8 Xinlin Village 41 24 17 Dazhaizi Town Yufei Village 21 6 6 5 3 1 Xinpeng Village 41 40 1 Huangnizhai Village 26 24 1 1 Shuimo Town Shuimo Village 55 25 30 Heilu Village 27 20 4 1 2 Tiechang Community 38 28 2 1 7 Shanqiao Village 50 44 2 1 2 1 Pingdiying Village 45 38 3 3 1 Xinjie Town Xinjie Community 158 150 6 2 Jiufang Village 56 39 9 8 Longshu Community 3 1 2 Jintang Village 33 16 17 Tangfang Village 90 43 38 9 Longshu Town Zhaobi Village 50 22 17 3 8 Guzhai Community 23 20 1 1 1 Xinle Village 92 68 12 7 5 Total 1,257 932 209 57 33 26 21. The income losses of the AHs are calculated based on local average annual output value (AAOV) of the farmland, see Table 2-8. Table 2-8: Income Loss Due to Land Acquisition by Villages Per Farmland Land capita Area Income Income Farmland LA Prior to LA Ratio Loss Townships Villages AHs (mu) (mu) LA (mu) (%) (%) Rate (%) Sujia Village 3 1.56 4.73 41.91 11.3% 40.97% 4.62% Guazhai Village 5 4.85 11.90 131.41 9.1% 43.10% 3.90% Sujia Town Buchu Village 176 3.65 13.76 3,362.93 0.4% 42.94% 0.18% Yuba Village 21 3.76 25.76 375.33 6.9% 39.41% 2.70%

P 13 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Per Farmland Land capita Area Income Income Farmland LA Prior to LA Ratio Loss Townships Villages AHs (mu) (mu) LA (mu) (%) (%) Rate (%) Sayu Town Jule Village 107 1.70 25.49 865.62 2.9% 45.29% 1.33% Leju Town Xinhe Village 96 0.61 51.89 204.32 25.40% 40.41% 10.26% Xinlin Village 41 3.29 75.29 599.59 12.6% 42.64% 5.35% Dazhaizi Town Yufei Village 21 1.48 41.63 142.03 29.3% 44.20% 12.96% Xinpeng Village 41 2.13 23.62 419.12 5.6% 38.79% 2.19% Huangnizhai 26 3.07 18.61 395.44 4.7% 38.56% 1.81% Village Shuimo Town Shuimo Village 55 1.75 33.80 446.32 7.6% 40.60% 3.07% Heilu Village 27 1.28 63.88 154.55 41.3% 43.44% 17.95% Tiechang 38 2.77 32.15 490.07 6.6% 45.31% 2.97% Community Shanqiao Village 50 4.13 13.09 1,093.19 1.2% 42.77% 0.51% Pingdiying 45 3.99 6.00 1,307.92 0.5% 42.14% 0.19% Village Xinjie Town Xinjie 158 2.02 25.02 1,521.85 1.6% 42.73% 0.70% Community Jiufang Village 56 0.75 8.32 256.32 3.2% 44.51% 1.44% Longshu 3 1.56 5.11 38.78 13.2% 42.72% 5.63% Community Jintang Village 33 2.68 41.34 404.32 10.2% 45.08% 4.61% Longshu Town Tangfang Village 90 1.94 55.07 785.84 7.0% 40.70% 2.85% Zhaobi Village 50 1.94 136.64 424.74 32.2% 38.84% 12.49% Guzhai Village 23 1.57 4.36 356.06 1.2% 40.61% 0.50% Xinle Village 92 1.62 25.99 707.79 3.7% 43.74% 1.61% Total 1,257 743.38 14,585.47 5.1% 41.00% 2.09%

22. It can be seen that the area of the LA of each village group is small, 5.1% of current farmland on average, and income loss ratio is 2.09% on average. So, the overall LA and income loss impact is small. However, the average HH income loss due to the PLA in the villages of Heilu, Xinhe, Yufei, and Zhaobi is more than 10%, which will have significant impacts on the AHs, as presented in Table 2-8. 23. The per capita income loss of all other villages is below 10%, as the agricultural income is only a small portion of the family income. The income loss caused by the project is almost negligible for most village groups. Table 2-9: Income Loss by Affected Households Income Loss Rate (AHs) Towns Village AHs <10% 10%–20% 20%–30% 30%–50% >50% Sujia Village 3 3 Guazhai Village 5 5 Sujia Town Buchu Village 176 173 2 1 Yuba Village 21 18 3 Sayu Town Jule Village 107 105 2 Leju Town Xinhe Village 96 69 20 6 1 Xinlin Village 41 38 3 Dazhaizi Town Yufei Village 21 15 3 2 1

P 14 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Income Loss Rate (AHs) Towns Village AHs <10% 10%–20% 20%–30% 30%–50% >50% Xinpeng Village 41 41 Huangnizhai Village 26 26 Shuimo Town Shuimo Village 55 53 2 Heilu Village 27 25 2 Tiechang Community 38 27 5 6 Shanqiao Village 50 48 1 1 Pingdiying Village 45 42 1 1 Xinjie Town Xinjie Community 158 154 2 Jiufang Village 56 53 2 1 Longshu Community 3 3 Jintang Village 33 33 Tangfang Village 90 88 2 Longshu Town Zhaobi Village 50 40 2 8 Guzhai Community 23 21 1 1 Xinle Village 92 83 6 3 Total 1,257 1,163 59 30 2 24. Based on income loss of each AH, a total of 91 AHs with 318 APs have the HH income loss more than 10%, which the AHs are defined as significantly AHs, as presented in Table 2-9. They will be the target group of livelihood restoration measures of the project. 25. Among the 23 affected villages, the AHs in Heilu, Xinhe, Yufei, and Zhaobi villages will suffer more than 10% of income loss in average; and so, the four villages are considered as significantly affected villages. There are 52 AHs with 182 APs in these four significantly affected villages, as presented in Table 2-10. Table 2-10: Summary of Affected People in Four Significantly Affected Villages

Town Village Affected Households (AHs) Affected Persons (APs) Leju Xinhe 27 95 Dazhaizi Yufei 6 21 Longshu Xinle 9 31 Longshu Zhaobi 10 35 Total 52 182 Note: There are 52 AHs with 182 APs in the four significantly affected villages, while there are 91 AHs with 318 APs in total to be significantly affected by the LA of the project. All significantly AHs are the main target for livelihood restoration measures. 2.3.3. State-Owned Land Occupation 26. The component of ecological river embankment rehabilitation will utilize state-owned land. The component will conduct ecological rehabilitation of 43 tributaries of the Longxi River, with a total length of 89.34 km, which will require a total of 1,973.88 mu of state-owned land. The state- owned land is mainly the land between embankment sides of the rivers and a small amount of land outside the river embankments (river flooding area). The SLO does not involve the AHs.

P 15 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

2.3.4. Temporary Land Occupation 27. The TLO is required for river rehabilitation, construction of wetlands and access roads, stacking yard, installation of wastewater pipelines, temporary construction roads for agricultural demonstration zones, and upgrade of irrigation channels, etc. The total area of the TLO is 4,828.06 mu, including farmland (garden plot) of 3,829.02 mu; and forestland of 999.04 mu, which affect 3,206 HHs with 13,774 APs in 27 administrative villages of seven towns, as shown in Table 2-11. These will be temporarily occupied for about 3 months for civil works, but compensation will be paid for duration of 1 year. Table 2-11: Temporary Land Occupation by Villages Temporary occupation of collective land Affected (mu) Population Town Village Farmland/ Subtotal Forestland AHs APs Garden Plot Sujia Village 224.84 201.05 23.79 149 640 Liyuan Village 25.30 19.36 5.95 16 68 Bohuozhai Village 25.30 19.36 5.95 16 68 Sujia Town Xindian Village 25.30 19.36 5.95 16 68 Xiaosongshu Village 75.91 58.07 17.84 50 215 Buchu Village 396.43 218.23 178.21 264 1,135 Yuba Village 187.52 111.20 76.32 125 537 Sayu Town Jule Village 94.33 83.47 10.86 62 266 Leju Town Xinhe Village 117.15 47.65 69.49 78 335 Xinlin Village 77.40 9.18 68.22 51 219 Dazhaizi Town Yufei village 108.44 6.12 102.32 72 309 Xinpeng Village 172.92 149.91 23.01 115 494 Huangnizhai Village 285.67 259.06 26.61 190 817 Shuimo Town Shuimo Village 75.89 72.07 3.82 50 215 Teichang Community 368.54 318.31 50.23 245 1,053 Shanqiao Village 326.51 278.17 48.34 217 933 Pingdiying Village 163.94 135.10 28.84 109 468 Xinjie Town Fengjiawan 78.28 66.54 11.74 52 223 Xinjie Community 117.34 93.72 23.61 78 335 Jiufang Village 120.26 109.81 10.45 80 344 Longxiang 97.06 97.06 64 275 Community Longshu Community 27.10 27.10 18 77 Jintang Village 477.40 406.69 70.71 318 1,367 Longshu Town Tangfang Village 118.96 101.11 17.84 79 339 Zhaobi Village 243.15 213.33 29.82 162 696 Guzhai Community 116.87 112.82 4.06 77 331 Xinle Village 680.23 595.17 85.06 453 1,947 Subtotal 4,828.06 3,829.02 999.04 3,206 13,774 Table 2-12: Temporary Land Occupation by Components Affected Temporary occupation of collective land (mu) Population Output Subproject Garden Subtotal Farmland Forestland AHs APs Plot (1) Waste management 1,503.12 1,127.34 127.75 248.03 1,343 5,307 (2) Solid waste 0.00 0.00 0.00 0.00 0 0 1 management (3) Pilot eco-villages 0.00 0.00 0.00 0.00 0 0 (4) Wetlands construction 16.50 14.00 0.00 2.50 12 51

P 16 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Affected Temporary occupation of collective land (mu) Population Output Subproject Garden Subtotal Farmland Forestland AHs APs Plot (5) Quantifiable water and soil conservation 304.08 220.77 15.31 68.00 164 717 model (6) Promotion of low- 714.33 708.09 0.28 5.96 496 2,248 emission agriculture (7) Ecological river 2 2,290.03 1,407.39 208.09 674.54 1,191 5,450 embankment Total 4,828.06 3,477.59 351.43 999.04 3,206 13,774

2.3.5. House Demolition 28. This project does not involve any residential HD and enterprise structure demolition.

2.3.6. Affected Enterprise 29. The PLA of the project will affect one enterprise, i.e., Shengyuan Stone Factory in Shuimo Town of Ludian County. The factory has a land area of 320 mu, including 110 mu for the stone factory; and 210 mu of planned stone mining area. The stone factory includes the workshop (4.62 mu), processing area (2.3 mu), material stacking area (71.32 mu), and waste stacking area (31.75 mu). The land is the collective land owned by Sanjia Village (Groups 1–8) and Heilu Village (Groups 4–9, 10–11) in Shuimo Town. The factory obtained the land use through the LURT procedure and has the land use right for a long-term use. The project will acquire a piece of land in a total of 10.57 mu of the factory land. The land was formed by filling up solid waste produced in stone processing of the factory. The stone factory does not need to relocate, and the LA will not affect the operation and business of the enterprise. The enterprise has been consulted, and it has agreed to the land use for the project. The compensation for the LURT fee, land leveling fee, and replacement cost of ground attachments will be paid to the enterprise for its part of the loss; while the compensation for the LA will be paid to village committees who own the collective land.

Figure 2-1: The Shengyuan Stone Factory to be Affected

2.3.7. Affected Vulnerable Groups 30. Vulnerable groups mainly refer to the poor (per capita income below the poverty line1), Five-Guarantee HHs, the disabled, psychologically ill, women-headed HHs, etc. According to the

1 Yunnan’s poverty line is 3,750 yuan/person in 2019.

P 17 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan project survey, the PLA will affect vulnerable groups of 12 HHs with 61 APs, including 7 families living below the minimum living security (MLS) line (38 APs, they have been receiving government subsidy); and 5 families with disabled family member (23 APs, without MLS but with target rural poverty), see Table 2-13. 31. Based on ADB’s requirements and the practical situation of Zhaotong City, the initial identification criteria of vulnerable groups and name list has been confirmed through interview with township-level and village heads and villager representatives. It will be finalized and adjusted according to villagers’ feedback during updating of the DMS and the RP. Table 2-13: Vulnerable Groups Land loss Income Village Family rate loss Reason of No. Township Village Group Name Age Size Impact (%) rate (%) Vulnerability Longshu Zhaobi Ms. Minimum No.7 70 6 LA 36.0% 13.7% subsistence, 1 Town Village Luo orphan Longshu Zhaobi Mr. Minimum No.11 44 6 LA 32.0% 12.2% 2 Town Village Zhang subsistence Longshu Tangfang Ms. Minimum No.20 62 8 LA 5.0% 2.0% subsistence, 3 Town Village Zhou disabled Longshu Tangfang Minimum No.17 Mr. Ji 45 4 LA 4.0% 1.6% subsistence, 4 Town Village disabled Minimum Shuimo Heilu Mr. subsistence, Yumaizhai 39 4 LA 1.5% 0.7% Town Village Hong registered 5 poor Minimum Shuimo Heilu Ms. subsistence, Heba 48 5 LA 2.6% 1.1% Town Village An registered 6 poor Xinjie Pingdiying 1 Mr. Lu 72 4 LA 3.2% 1.3% Disabled 7 Town Village Xinjie Mr. Pingdiying 12 40 4 LA 4.3% 1.8% Disabled 8 Town Deng Minimum Xinjie Xinjie Mr. subsistence, 10 39 5 LA 3.2% 1.4% Town Community Peng registered 9 poor Xinjie Shanqiao Mr. Disabled, 12 55 6 LA 0.5% 0.2% registered 10 Town Village Xia poor Xinjie Shanqiao Mr. Disabled, 9 51 4 LA 0.9% 0.4% registered 11 Town Village Zhang poor Xinjie Shanqiao Mr. Disabled, 13 47 5 LA 1.0% 0.4% registered 12 Town Village Jiang poor

2.3.8. Affected Ethnic Minorities 32. The project LA will affect the ethnic minorities (EM) of 28 HHs with 110 APs, including 8 HHs with 44 Hui people; and 20 HHs with 66 Yi people. The affected EMs mainly engage in agricultural production. They live together with people of Han nationality and other groups. The AHs of EMs will be compensated for the LAR as the same as Han people. Their traditional customs and religious belief will not be affected. In fact, in the project area, the Hui and Yi people

P 18 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan have lived with Han people for a long time. They have equal social status and economic status as Han people. The Zhaotong PMO and relevant local governments will give them priority in project employment opportunities and skills trainings, and fully respect their culture characteristics during livelihood restoration based on further consultations during the RP update and implementation. Table 2-14: Affected Ethnic Minority People

Affected Household Average Town Village Subtotal Hui Yi Land loss rate (%) Income loss rate (%) Xinlin 8 8 13.2 5.5 Dazhaizi Yufei 6 6 14.5 6.4 Huangnizhai 7 5 2 5.8 2.3 Shuimo Heilu 4 4 10.2 4.4 Xinjie Shanqiao 3 3 5.6 2.4 Total 28 8 20

2.3.9. Affected Ground (Structures) Attachments 33. According to a preliminary estimate based on the FSR, the project will affect seven types of ground attachments as summarized in Table 2-15. The final impacts are subject to the DMS and will be reflected in the updated RP. Table 2-15: Impacts on Ground Attachments Name Specification Unit Quantity Ground barricade Concrete m2 8,268 Masonry protection works Stone m3 6,754 Water pipes 400 mm m 3,217 Cement pile 1000 mm piece 415 concrete pole with height less 101 Electric pole piece than 9 m Big tree 596 Fruits Medium tree 684 Big tree 102 Trees (timber) Medium tree 218 Small tree 391

2.3.10. Summary of Land Acquisition and Resettlement Impact Scope 34. The impact scope of the LAR of the project is summarized in Table 2-16. Table 2-16: Summary of Land Acquisition and Resettlement Impact Scope by Project Area

By County/District Zhaoyang Ludian Itemized Summary Unit District County Total Number of construction components 4 3 7 Collective land mu 287.30 456.08 743.38 Permanent land acquisition Of which: farmland mu 164.55 366.21 530.76

P 19 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

By County/District Zhaoyang Ludian Itemized Summary Unit District County Total Garden plot mu 38.06 19.78 57.85 Forestland mu 83.54 32.03 115.57 Others mu 1.15 38.05 39.20 Temporary land occupation Collective land mu 1,357.90 3,470.10 4,828.06 State-owned land State-owned land mu 1,014.49 959.39 1,973.88 occupation Only affected by HHs 470 787 1,257 Rural households and acquisition of farmland Persons 1,641 2,745 4,386 persons affected by land acquisition Temporary land HHs 899 2,307 3,206 occupation Persons 2,641 11,133 13,774 HHs 1,369 3,094 4,463 Total AHs and APs impacted by LAR Persons 4,673 14,499 19,172

P 20 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 2-17: Summary of Land Acquisition and Resettlement Impact Scope by Project Component

(2) Solid (5) Quantifiable (1) Waste Waste (3) Pilot Water and Soil (6) Low- (7) Ecoogical Manage- Manage- Eco- (4) Wetlands Conservation Emission River Itemized Summary Unit ment ment Villages Construction Model Agriculture Embankment Total 6 4 3 4 3 5 7 7 Sujia, Sayu, Sujia, Sayu, Sujia, Sujia, Sayu, Sujia, Sayu, Leju, Shuimo, Leju, Shuimo, Leju, Dazhaizi, Town Shuimo, Shuimo, Longshu, Shuimo, Leju, Dazhaizi, Shuimo, Longshu, Longshu, Shuimo, Longshu, Xinjie Longshu, Shuimo, Longshu, Xinjie Xinjie Longshu, Xinjie Xinjie Longshu, Xinjie Xinjie Xinjie Collective mu 1.27 30.69 153.98 557.43 743.38 Including, mu 1.27 30.69 153.98 344.81 530.76 Permanent land farmland acquisition (PLA) garden land mu 57.85 57.85 forestland mu 115.57 115.57 other land mu 39.20 39.20 Temporary land Collective mu 1,503.12 16.50 304.08 714.31 2,290.06 4,828.06 occupation (TLO) State-owned State-owned land land (river mu 1,973.88 1,973.88 occupation land) HH 5 22 63 1,167 1,257 Households (HHs) and By PLA person 17 75 220 4,074 4,386 persons affected by HH 1,343 12 164 496 1,191 3,206 land acquisition By TLO person 5,307 51 717 2,248 5,450 13,774 HH 1,348 22 75 164 496 2,358 4,463 Total AHs and APs impacted by LAR person 5,324 75 271 717 2,248 9,524 18,160

P 21 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

3. Socioeconomic Profile of the Project Areas 3.1. Socioeconomic Profile of the Affected Areas

3.1.1. Socioeconomic Profile of Zhaotong City 35. Located in the northeast of Yunnan Province, Zhaotong City is at the intersection of Chengdu, Chongqing, Guiyang, and Kunming—four major central cities in the southwest of the PRC. The land area of Zhaotong City is 23,000 square kilometers (km2), and its population is 6.1933 million persons. The Neijiang–Kunming Railway, the Chongqing–Kunming Expressway, and the Yangtze River Channel intersect in the territory of the city, which is the “North Gate” of Yunnan Province facing the mainland of the PRC. 36. Zhaotong City is rich in natural resources; and one of important bases for national energy, chemical, and raw materials. There are thousands of Chinese herbal medicine resources and agricultural products such as apple, pepper, walnut, konjac, potato, etc. The unique topography forms a unique natural landscape and charming scenery such as Dashanbao, Huanglian River, Tongluoba, and Xiaocaoba. It has rich tourism resources and great potential development. 37. In 2018, the gross domestic product (GDP) of Zhaotong City was 88.954 billion yuan; and the per capita disposable income of urban and rural residents reached 27,632 yuan and 9,474 yuan, respectively. The grain output was 2.065 million tons/year, the vegetable output was 1.431 million tons/year, and the livestock meat production was 348,000 tons/year. 38. Zhaotong City is a large area of poverty-stricken people in the province. Among the nine counties, one county-level city, and one district under its jurisdiction, except for Shuifu County- Level City, the remaining one district and nine counties are all nationally designated poverty district and counties. Zhaotong City’s poverty alleviation population in the National Poverty Alleviation and Development Information System is 430,000 HHs with 1,843,700 people. At the end of 2018, the number of people under poverty status decreased to 141,100 HHs with 580,300 persons, of which 346,400 were reduced in 2018; and the incidence of poverty fell to 12.49%. The number of poor villages dropped from 1,235 to 727, of which 195 were out of poverty in 2018. Two (Weixin and Yanjun counties) out of ten poverty-stricken counties have already reached the poverty elimination standard.

3.1.2. Socioeconomic Profile of Zhaoyang District 39. Zhaoyang District is the only administrative district of Zhaotong City. It is located at the northeastern end of Yunnan Province; and in the junction of Guizhou, Sichuan, and Yunnan provinces. It is adjacent to Weining County in Guizhou Province on the east, Ludian County on the south, and Jinsha River on the west to Jinyang County in Sichuan Province. It is connected to the three counties of Daguan, Yanliang, and Yongshan on the north. It is the seat of the Zhaotong Municipal People’s Government (ZMG). The district is 341 km away from Kunming, the provincial capital. The total area of the district is 2,167 km2. It has 3 sub-district offices, 10 towns, and 7 townships, with a total of 183 village (residential) committees.

P 22 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

40. Zhaoyang District is rich in mineral resources. The main minerals include anthracite, dolomite, lignite, and pyrite. It is a high-quality apple commodity production base in the southern PRC, and one of the sheep base counties in the Yunnan Province. 41. In 2018, the total population of Zhaoyang District was 891,398; and the resident population was 823,600, including urban population of 359,996; and rural population of 463,604 persons. In 2018, the GDP was 23.357 billion yuan; and the per capita GDP reached 28,240 yuan. The per capita disposable income of urban residents reached 27,076 yuan, and the per capita disposable income of rural residents reached 8,766 yuan. 3.1.3. Socioeconomic Profile of Ludian County 42. Ludian County is located in the junction of Guizhou, Sichuan, and Yunnan provinces. It is the southern gate of Zhaotong City with a land area of 1,489 km2. Its northeast is bordered by Zhaoyang District, the southeast is adjacent to Weining County of Guizhou, and the south and west are opposite to the Niulan River between Huize and Qiaojia counties. The Luidan County Government is located in Wenping Town, 18 km away from Zhaoyang District; and 310 km away from the provincial capital, Kunming. Ludian County is home to 96,000 EM people, including Buyi, Hui, Miao, and Yi; and accounting for 20.6% of the total population. The highest altitude in the territory is 3,356 meters (m), the lowest altitude is 568 m, the annual average rainfall is 923 millimeters. At the end of 2018, the county governed 94 village (residential) committees of 10 towns and 2 townships. In 2018, the Ludian County’s GDP was 6.09 billion yuan. The per capita disposable income of urban residents was 26,299 yuan, and the per capita disposable income of rural residents was 9,553 yuan. 43. Ludian is a national poverty county. It also is one of the most natural disaster-prone counties in the Yunnan Province. The annual disaster area accounts for about one-sixth of the cultivated land area. Table 3-1: Socioeconomic Profile of Zhaotong City, Zhaoyang District, and Ludian County Per Urban per capita net Agricultural Industrial Local Total year- Per capita income output output financial end capita disposable of rural GDP value value revenue population Area GDP income residents (billion (billion (billion (billion Area (million) (km2) (yuan) (yuan) (yuan) yuan) yuan) yuan) yuan) Zhaotong 6.1933 23,021 15.12 27,632 9,474 88.954 24.9090 23.117 7.821 City Zhaoyang 0.8914 2,167 30.66 31,870 10,529 27.326 0.2914 13.660 1.309 District Ludian 0.4624 1,489 13.17 26,299 9,553 6.090 10.4400 46.400 3.060 County Source: City of Zhaotong, Ludian County, and Zhaoyang District Statistical Yearbook 2018.

44. As can be seen from the above table, the per capita GDP of Zhaoyang District in 2018 is higher than the average of Zhaotong City; and the per capita GDP of Ludian County is lower than the average of Zhaotong City. The comprehensive economic development level of Zhaoyang District is at a high level in all district and counties of Zhaotong, and Ludian County is at an intermediate level.

P 23 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

3.1.4. Socioeconomic Profile of the Affected Towns and Villages 45. The project will affect 4 towns (Sujia, Sayu, Leju and Dazhaizi) in Zhaoyang District and 3 towns (Shuimo, Xinjie and Longshu) in Ludian County. 46. Sujia Township is located in the northwest of Zhaoyang District, 46 km away from the city. The land area is 212.98 km2. The Sujia Township Government is located in Sujia Street of Sujia Village. It is located in a mountainous area and a provincial poverty alleviation and hardship town. About 80% area of the Zhaotong Yudong Reservoir is in Sujia Township. 47. Sayu Town is located in the northwest of Zhaotong City. The highest altitude is 2,618 m in the north and the lowest is 1,870 m in the south. The administrative area of the town is 222 km2. It administers 9 village committees and 231 villager groups. It is home to Han, Miao, Yi, Zhuang, and other EM groups. There are 16,418 HHs and 61,651 people, mainly Han people, accounting for 96%. The town has 110,000 mu of cultivated land. The main agricultural products include apple, corn, peach, potatoes, and rice. Animal husbandry is mainly composed of cattle, horses, pigs, and sheep. There are 1 middle school, 19 primary schools, 458 primary and middle school teachers, and more than 10,000 students. 48. Leju Town is located 18 km west of Zhaoyang District, with a land area of 84.57 km2. Most of the town is in a plain area of the Sayu River valley, but at high altitude. The highest altitude is 2,529 m at north of Shenjiagou, and the lowest is 1,891 m in Malong Village. Leju Town is one of the main grain-producing areas in Zhaoyang District. It mainly produces corn, potatoes, and rice. 49. Dazhaizi Township is located in the northwest of Zhaoyang District, 86 km away from the city, with a land area of 78 km2. It faces the Jinsha River in the west and connects to Yongsong County in the north. The township governs eight administrative villages, mainly inhabited 21,200 people, including 19,788 Han, 80 Miao, 1,310 Yi, and 12 other EM groups. 50. Shuimo Town is located in the central part of Ludian County. The total land area of the town is 270.94 km2. It administers 9 administrative villages and 1 community, 83 natural villages, and 170 villages (residents) groups. It has 13,739 HHs with 47,983 people, including 23 Hui people, 1,260 Miao people, 1,787 Yi people, and 54 other EM groups. Shuimo Town has the targeted poverty HHs of 5,480 HHs with 21,527 people originally. By the end of 2018, 2,973 HHs with 12,038 people have gotten rid of poverty. 51. Xinjie Town is located in the northwest of Ludian County, 56 km away from the county seat. The town covers an area of 113.10 km2, with the highest altitude of 2,976 m; and the lowest of 2,078 m. It is an area with high incidence rate of natural disasters. It has jurisdiction over 5 administrative village committees and 94 village groups. There are total of 4,235 HHs with 18,507 permanent residents, and 4,180 rural HHs with 18,422 residents. There is a total of cultivated land area of 22,395 mu, including 1,000 mu of paddy fields; and 21,901 mu of dryland. 52. Longshu Town is located in the north of Ludian County, 36 km away from the county seat, with a land area of 112.1 km2. It administers 114 villager groups of 4 administrative villages. In 2018, the total number of HHs was 8,463 with 38,560 persons. The town has a total of 47,028 mu

P 24 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

of arable land, including 8,874 mu of paddy fields; 38,154 mu of dryland; and 1.2 mu of arable land per capita. Table 3-2: Socioeconomic Profile of the Affected Townships

End of year Farmland Grain Total revenue of the Rural per capita Population at area production rural economy net income Township end 2018 (mu) (ton) (million yuan) (yuan) Sujia Town 30,980 45,200 10,640 198.27 4,256 Sayu Town 66,004 140,986 25,893 253.64 8,625 Leju Town 31,786 17,101 10,394 102.17 4,214 Dazhaizi Town 15,353 15,316 7,967 47.43 4,026 Shuimo Town 47,983 92,000 92,920 110.36 5,988 Longshu Town 43,847 47,028 47,498 88.69 4,759 Xinjie Town 23,419 69,642 22,619 109.08 5,399 Source: Field survey in April 2019.

53. The project will affect 108 village groups of 4 communities (Teichang of Shuimo Town, Xinjie of Xinjie Town, and Guzhai and Longshu of Longshu Town), and 19 administrative villages (Buchu, Guazhai, Sujia, and Yuba of Sujia Town; Jule of Sayu Town; Xinhe of Leju Town; Xinlin and Yufei of Dazhaizi Town; Heilu, Huangnizhai, Shuimo, and Xinpeng of Shuimo Town; Jiufan, Pingdiying, and Shanqiao of Xinjie Town; and Jintang, Tangfang, Xinle, and Zhaobi of Longshu Town) in 7 towns of Zhaotong City (Dazhaizi, Leju, Sayu, and Sujia towns in Zhaoyang District; and Longshu, Shuimo, and Xinjie towns in Ludian County). The socioeconomic status of affected villages are different, as presented in Table 3-3. Table 3-3: Socioeconomic Conditions of the Affected Villages in 2018 Total Number Five- Per capita Per capita Community/ Village Total Popu- of Poor Guaran- Farmland annual income Town Village Group HHs lation HHs tees HHs (mu) (yuan) Sujia Village 3 51 192 5 0 2.46 4,416 Village Guazhai 5 30 99 5 0 2.68 4,800 Village 6 32 128 18 0 5.81 3,933 Sujia 7 55 221 14 0 3.14 4,095 Town 8 50 208 20 0 4.00 4,708 Buchu Village 9 48 197 15 1 2.80 5,208 20 55 229 20 0 3.21 4,923 21 55 252 24 0 2.94 4,208 1 48 186 30 0 4.19 4,000 Yuba Village 2 48 169 67 0 3.33 4,778 1 36 136 6 0 1.68 4,345 2 42 136 9 0 0.71 5,421 Sayu Jule Village 3 86 273 12 0 4.30 4,934 Town 4 50 171 7 0 1.00 5,462 6 81 259 11 0 0.81 5,434 1 68 267 0 0 0.53 4,914 2 26 101 1 1 0.67 5,650 3 65 216 2 1 0.59 6,250 4 82 275 3 0 0.61 5,908 Leju Town Xinhe Village 9 79 253 4 0 0.65 5,050 10 85 276 5 0 0.65 4,800 12 24 90 6 0 0.37 5,733 13 35 113 7 0 0.81 5,819

P 25 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Total Number Five- Per capita Per capita Community/ Village Total Popu- of Poor Guaran- Farmland annual income Town Village Group HHs lation HHs tees HHs (mu) (yuan) 14 47 168 8 1 0.58 5,650 1 52 205 18 0 4.15 4,850 2 26 107 6 0 3.55 4,751 3 26 133 7 0 1.80 4,989 Xinlin Village 4 20 84 10 0 3.81 4,409 5 44 190 9 2 4.11 4,745 Dazhaizi 7 41 189 18 1 2.94 4,747 Town 8 25 98 9 0 2.65 4,781 1 50 158 22 1 1.38 4,687 2 50 168 25 0 1.83 4,635 Yufei Village 3 68 284 44 0 1.03 4,435 4 56 221 28 2 1.31 4,657 9 11 56 10 0 1.86 4,458 Neiheicu 125 492 49 2 1.27 4,720 Group Xinpeng Changyuan 85 276 26 1 2.36 4,914 Village Group Xinpeng 85 282 149 0 2.76 5,650 Group Huangnizhai Xiaohegou 54 207 19 0 3.07 6,250 Village Group Yangchanggo 113 449 8 0 1.92 5,050 u Group Goutou 84 326 43 0 2.34 4,800 Shuimo Group Shuimo Village Banbianjie 131 478 35 0 1.75 5,733 Town Group Lujiawan 162 654 82 1 0.99 6,983 Group Heba Group 90 519 45 2 1.25 5,650 Heilu Village Yimazhai 80 315 41 0 1.56 3,940 Group Shubian 106 438 52 1 3.24 4,830 Group Wujiacun Tiechang 110 360 25 2 3.25 5,000 Group Community Xiaohebian 142 505 45 2 3.24 4,220 Group Sanhe Group 67 285 35 0 3.25 6,150 12 85 292 8 1 3.83 5,543 Shanqiao 14 66 212 9 0 4.77 5,621 Village 15 75 251 9 0 3.80 5,342 14 90 266 11 0 4.54 5,213 Pingdiying 15 61 311 6 0 3.73 5,342 Village 16 70 393 7 0 3.70 5,341 15 50 166 7 0 2.07 5,643 16 44 216 4 0 2.05 4,894 Xinjie 17 103 128 12 2 2.05 4,768 Town 18 66 261 7 0 2.01 4,538 Xinjie 19 68 298 9 0 2.13 5,437 Community 21 89 383 10 0 1.97 4,675 22 36 155 6 0 1.93 5,521 23 51 190 7 0 2.03 5,421 24 73 321 8 0 2.02 4,574 1 76 200 9 0 0.85 4,251 Jiufang 2 75 172 9 0 0.86 4,156 Village 3 115 497 13 0 0.79 4,241

P 26 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Total Number Five- Per capita Per capita Community/ Village Total Popu- of Poor Guaran- Farmland annual income Town Village Group HHs lation HHs tees HHs (mu) (yuan) 5 95 200 8 0 0.81 4,321 6 97 200 8 0 0.77 4,212 8 132 286 15 0 0.75 4,121 9 127 297 12 0 0.47 4,304 Longshu 16 140 413 18 0 1.12 6,782 Community 3 43 172 4 0 1.83 5,325 4 64 256 12 0 1.03 5,089 Jintang 6 67 268 11 0 1.86 5,325 Village 10 93 372 15 0 3.81 5,342 12 45 180 7 0 4.62 5,342 13 63 252 11 0 2.94 5,341 16 45 180 5 1 2.19 5,422 17 65 260 4 2 3.88 5,312 18 54 216 6 3 1.68 5,127 19 43 172 6 4 1.73 4,366 Tangfang 20 44 176 4 5 1.96 4,785 Village 21 32 128 4 6 1.79 5,425 22 43 172 5 7 2.03 4,987 23 48 192 4 8 1.52 5,476 24 52 208 10 9 1.30 4,562 25 31 124 8 10 1.34 5,421 Longshu 1 54 216 7 0 2.55 4,576 Town 2 47 188 6 0 1.92 5,621 3 64 256 8 0 2.34 4,769 Zhaobi 5 56 224 9 0 0.99 4,894 Village 6 57 228 9 0 1.25 4,768 7 139 534 0 0 2.30 4,576 9 76 304 10 0 1.09 4,538 14 62 248 11 0 3.24 4,675 2 35 140 5 0 3.23 5,421 Guzhai 4 54 216 7 0 3.25 4,251 Village 5 57 228 9 0 3.25 4,156 20 62 248 12 0 2.01 4,675 21 73 292 15 0 2.13 5,521 22 85 340 16 0 1.97 5,421 23 65 260 10 0 1.93 4,574 Xinle Village 24 46 184 8 0 2.03 4,251 25 75 300 12 0 2.02 4,156 26 53 212 8 0 0.85 4,328 34 48 192 6 0 0.47 5,543 Source: Data from field survey in April 2019.

3.1.5. Existing Livelihood Modes of the Affected Villages 54. According to the field survey, it is found that the non-agricultural income takes up most of the family income; and these villagers most rely on work wage. Most of the people do brickwork, cement work, or woodwork; or use their skills to get working wage. For agricultural income, some villagers are carrying out local characteristic agriculture. According to the interview with relevant experts from Zhaotong City Agriculture Bureau, the main characteristics agriculture in the project areas includes apple, potato, and vegetables. The characteristics agriculture of the villages in the project areas is summarized in Table 3-4.

P 27 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Table 3-4: Characteristics Agriculture in the Affected Township and Villages

Town Characteristic Agriculture Sujia Town potato, corn, apple Sayu Town apple Leju Town potato, apple Shuimo Town potato, corn Longshu Town potato, corn, vegetables, apple Xinjie Town potato, corn Source: May 25, 2018 Zhaotong City Agriculture Bureau.

3.2. Results of Survey on Affected Households’ Profiles 55. To further understand the basic living conditions of the APs, collect socioeconomic information on the APs, and understand the demands and expectations of the APs on livelihood restoration from the LAR, a HH sampling survey to 429 AHs with 1,237 APs and a survey to the affected enterprise were conducted by the RP preparation DI in May 2019, as presented in Table 3-5. Table 3-5: Household Sampling Survey Distribution Number of Number of Sampled AHs Town Village Village Group AHs Sample Ratio Sujia Village 3 3 1 33.3% Guazhai Village 5 5 1 20.0% 6 17 5 29.4% 7 24 7 29.2% Sujia 8 20 8 40.0% Buchu Village Town 9 24 8 33.3% 20 42 13 30.9% 21 49 16 32.6% 1 11 3 27.3% Yuba Village 2 10 3 30.0% 1 16 4 25.0% 2 12 16 133.3%a Sayu Jule Village 3 43 26 60.5% Town 4 19 10 52.6% 6 17 8 47.1% 1 19 7 36.8% 2 11 3 27.3% 3 5 2 40.0% 4 11 4 36.4% Leju Town Xinhe Village 9 9 3 33.3% 10 9 3 33.3% 12 11 4 36.4% 13 12 4 33.3% 14 9 3 33.3% 1 13 4 30.8% 2 3 1 33.3% 3 3 1 33.3% Xinlin Village 4 6 2 33.3% Dazhaizi 5 4 1 25.0% Town 7 7 2 28.6% 8 5 2 40.0% 1 6 2 33.3% Yufei Village 2 5 2 40.0% 3 4 1 25.0%

P 28 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Number of Number of Sampled AHs Town Village Village Group AHs Sample Ratio 4 3 1 33.3% 9 3 1 33.3% Neiheicun Group 13 5 38.5% Xinpeng Village Changyuan Group 13 5 38.5% Xinpeng Group 15 3 20.0% Huangnizhai Xiaohegou Group 26 8 30.8% Village Yangchanggou Group 14 5 35.7% Goutou Group 13 4 30.8% Shuimo Shuimo Village Banbianjie Group 14 5 35.7% Town Lujiawan Group 14 5 35.7% Heba Group 21 5 23.8% Heilu Village Yimazhai Group 6 2 33.3% Shulinbian Group 16 5 31.2% Tiechang Wujiacun Group 6 1 16.7% Community Xiaohebian Group 14 4 28.6% Sanhechang Group 2 1 50.0% 12 14 4 28.6% Shanqiao Village 14 16 4 25.0% 15 20 8 40.0% 14 15 5 33.3% Pingdiying Village 15 21 4 19.0% 16 9 5 55.6% 15 3 1 33.3% 16 7 1 14.3% 17 30 10 33.3% 18 19 3 15.8% Xinjie Xinjie Community 19 13 13 100.0% Town 21 29 7 24.1% 22 10 3 30.0% 23 25 8 32.0% 24 22 7 31.8% 1 9 3 33.3% 2 10 6 60.0% 3 3 1 33.3% Jiufang Village 5 8 3 37.5% 6 9 2 22.2% 8 9 2 22.2% 9 8 1 12.5% Longshu 16 3 1 33.3% Community 3 3 1 33.3% 4 3 1 33.3% 6 3 1 33.3% Jintang Village 10 7 2 28.6% 12 10 3 30.0% 13 7 2 28.6% Longshu 16 13 4 30.8% Town 17 10 3 30.0% 18 10 3 30.0% 19 7 2 28.6% 20 7 2 28.6% Tangfang Village 21 13 4 30.8% 22 7 2 28.6% 23 17 5 29.4% 24 3 1 33.3% 25 3 1 33.3%

P 29 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Number of Number of Sampled AHs Town Village Village Group AHs Sample Ratio 1 4 1 25.0% 2 4 1 25.0% 3 3 1 33.3% 5 2 1 50.0% Zhaobi Village 6 7 2 28.6% 7 10 3 30.0% 9 10 3 30.0% 14 10 3 30.0% 2 3 1 33.3% Guzhai Village 4 7 2 28.6% 5 13 4 30.8% 20 7 2 28.6% 21 13 4 30.8% 22 13 4 30.8% 23 3 1 33.3% Xinle Village 24 10 3 30.0% 25 10 3 30.0% 26 3 1 33.3% 34 33 10 30.3% Total 1,257 429 34.1% a In previous version of draft RP, 16 HHs were expected to be affected by the LA in this villager group, who were all interviewed for socioeconomic survey. After minor design changes, only 12 HHs will be affected by the LA. As the 4 HHs who are no longer affected have very similar socioeconomic status with other 12 HHs, they are kept in the database for statistical analysis. These will be updated during the DMS and the RP updates.

3.2.1. Family Demographics 56. The survey covered 429 AHs with 1,237 APs (including 559 female APs). The demographics of the surveyed APs is detailed in Table 3-6, including gender, age, labor composition, and education.

P 30 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Table 3-6: Information on Surveyed Affected Households

Sujia Sayu Leju Dazhaizi Shuimo Xinjie Longshu Item, Town/Village Sujia Guazhai Buchu Yuba Leju Xinhe Xinlin Yufei Xinpeng Huangnizhai Shuimo Heilu Tiechang Shanqiao Pingdiying Xinjie Jiufang Longshu Jintang Tangfang Zhaobi Guzhai Xinle Total HHs 1 1 57 6 64 33 13 7 13 8 19 7 11 16 14 53 18 1 10 27 15 7 28 429 APs 4 3 208 21 120 115 21 31 35 20 41 17 58 52 44 225 69 4 10 50 17 14 58 1,237 Male 2 2 122 13 60 62 14 20 18 14 21 9 32 28 28 113 34 2 7 26 12 10 30 678 Gender Female 2 1 86 8 60 53 8 11 17 6 20 8 26 24 16 112 35 2 3 24 5 4 28 559 Female % 50% 33% 41% 38% 50% 46% 38% 35% 49% 30% 49% 47% 45% 46% 36% 50% 51% 50% 30% 48% 29% 29% 48% 45.2

Total 4 3 158 12 80 76 18 19 29 17 33 16 39 36 47 160 46 4 7 57 16 16 64 957 Farming at home 2 2 115 12 20 70 9 19 29 17 33 13 38 32 15 102 41 2 7 37 16 12 42 685 Labor Working outside 43 0 9 0 0 0 1 48 5 0 0 7 1 2 11 127 Part-time work 0 0 60 6 0 0 0 2 0 4 0 0 0 7 0 2 11 92 locally Business 0 0 0 0 0 0 0 10 0 0 0 6 0 0 0 16

Junior college and 6 0 4 0 1 1 0 0 4 2 1 9 9 0 0 0 0 0 37 above High School and technical secondary 6 0 1 2 0 3 0 0 1 0 4 1 0 7 5 0 0 0 0 0 30 college Education Junior high 72 0 5 18 1 10 8 6 8 0 8 8 7 47 12 0 0 2 0 11 223 Elementary 2 2 95 16 74 44 20 12 20 11 17 4 21 23 25 85 20 2 10 0 6 0 1 510

Semiliterate or 1 29 0 10 21 0 5 1 0 9 8 5 4 11 40 0 0 50 9 14 46 263 illiterate Student 2 0 5 30 26 0 0 5 3 6 1 18 16 0 37 23 2 0 0 0 174 15 and below 26 5 40 23 1 8 6 2 6 1 16 8 7 24 10 0 0 0 0 0 183 16–39 2 1 79 6 18 43 4 11 12 6 8 6 28 14 14 98 28 2 0 16 6 1 14 417 Age Distribution 40–59 2 2 67 9 54 36 13 10 13 12 12 7 13 29 16 76 22 2 7 23 7 4 33 469

60 and above 36 1 8 13 3 2 4 0 15 3 1 1 7 27 9 3 11 4 9 11 168

P ３１ Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

3.2.2. Age Distribution of the Population 57. Among the 429 AHs with 1,237 APs, 183 APs in the AHs are 15 and below, accounting for 14.8%; 417 APs are 16–39 years old, accounting for 33.7%; 469 APs are 40–59 years old, accounting for 37.9%; and 168 APs are 60 years old and above, accounting for 13.6%. This result shows that the number of laborers (16–59 years old) in the AHs accounts for 71.6% of the total members of the AHs.

3.2.3. Education Degree 58. In terms of education level of the surveyed population, 3.0% received college and above college education; 2.4% received high school and secondary technical school education; 18.0% and 41.2% received middle school and primary school education, respectively (mostly young and middle-aged, working outside jobs, at the age of 25–30); non-educated accounts for 21.3% (mainly the elderly people over 60 years old, almost all non-educated are at home farming); and students accounts for 14.1%.

3.2.4. Employment 59. Laborers here refer to the available labor aged 16–59 (specifically 16–59 for male and 16– 54 for female in terms of gender difference in employment age). Among the respondents, the total number of laborers is 957 APs, including 127 APs who are working outside (working outside the project district and/or); and mainly young people aged 20–40, accounting for 13.3% of the total laborers. It is common to find young couples both working outside, mainly engaged in construction, catering, general worker in factories, etc.; and with a per capita wage of 3,000–5,000 yuan/month. There are 92 APs doing local part-time jobs, accounting for 9.6% of the total laborers, mainly in local construction sites; or doing some waitressing in restaurants during the slack season, with a per capita wage of 1,800–3,500 yuan/month; and working 2–3 months/year. The APs doing business locally accounts for 1.7% of the total laborers; and those are the APs who invested their earnings from migrant work in agricultural business, such as livestock farm or rural family restaurants. There are 685 APs working at home farming, accounting for 71.6% of the total laborers, who are mostly over 45 years old; lacking education and skills; and besides farming, they also need to take care of the elderly and children.

3.2.5. Living Conditions 60. Among the 429 AHs, their house structure is usually brick-concrete or brick-wood structure. Often, there is a mixture of these two structures. It has been observed that most brick-concrete or brick-wood houses have either two or three stories, with an average area of 150 m2/HH.

3.2.6. Gender 61. Among 1,237 APs of the 429 AHs, there are 559 female APs, accounting for 45.2%. Among 886 APs with 16–60 years old, 436 APs are women, accounting for 49.2%. About 48 APs are women who received college education or above, accounting for 3.88%; and slightly lower than the male APs (4.12%); 98 female APs received high school education, accounting for 7.92%; and

P 32 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan slightly lower than the male APs (8.54%); 202 female APs received middle school education, accounting for 16.3%; and slightly higher than the male APs (15.7%); and 211 female APs are non-educated, accounting for 17.1%; and higher than the male APs (11.3%). 62. In the project area, women are engaged not only in agricultural activities; but also extensively in non-agricultural activities. In agricultural activities, men and women have different important roles. There are activities involving both men and women, such as fertilization, harvesting, and raising pigs; but poultry farming is cared mainly by women. 63. In the middle age (defined as from 30 years old to 50 years old during the socioeconomic survey), more men go out to work; while women are more likely to stay at home to do farm work; and take care of their family members, such as children and the elderly. Rural women take a leading role in cooking, doing laundry, and caring for children and the elderly. 64. It is evident that the responsibility of men in the family is to get more cash income; while the role of women is to do farming and raise animals for the HH consumption, instead of selling to make money. 65. Women respondents also expressed their desire to transfer rural registered residence (Hukou) to urban registered residence; so that after reaching retired age, their families can receive a relatively stable and high pension income. For young women, they specifically suggested that if the land would be acquired, they would like to attend skills training and obtain employment. Some women also expressed the hope to get some job opportunities for themselves, their husbands, or other family members during the project implementation. 66. The compensation standards, national laws, and regulations related to the LAR are the same to women as men. Both affected women and men have equal rights to enjoy the LAR compensation.

3.2.7. Household Income and Expenditures 67. According to the sample survey, the agricultural income in the AHs accounted for 39.02% of the total HH income, while the non-agricultural income accounted for 60.98%. Local agriculture mainly includes corn, fruits, potatoes, and vegetables; while non-agricultural income includes that from migrant work, local part-time jobs, small businesses, and other income sources, such as social insurance and personal presents, etc., among which migrant working is the main source of income for the AHs. 68. Family expenditure mainly includes agricultural production cost in 25.28%; and non- production cost in 74.72%, including expenditures for food, personal presents, education, medical expenditure, and others. The other expenses mainly include transportation, communication, water and electricity, etc., as presented in Table 3-7.

P 33 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 3-7: Rural Household Income and Expenditure Structure

Zhaoyang District Ludian County All Towns Sujia Sayu Leju Dazhaizi Shuimo Xinjie Longshu HH HH HH HH Ave- Ave- HH Ave- HH Ave- Ave- HH Ave- HH Ave- Per Ave-rage rage rage rage rage rage rage rage capita Items (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) (%) Agri- cultural 8,619 5,733 4,367 8,067 8,288 7,527 7,737 7,191 2,497 39.02 production income Non-agricultural 9,074 5,202 8,839 10,755 14,632 15,318 14,852 11,239 3,902 60.98 income

1.Migrant work 5,714 2,400 4,526 5,826 10,214 10,501 9,202 6,912 2,400 37.50 HH income Gross Income 2.Local part-time 1,324 1,139 1,288 1,405 1,976 2,019 1,583 1,533 532 8.32 jobs

3.Local 782 213 390 889 436 235 434 483 168 2.62 business

4. Other 1,254 1,450 2,635 2,635 2,006 2,563 3,633 2,311 802 12.54 income Total 17,693 10,935 13,206 18,822 22,920 22,845 22,589 18,430 6,399 100.00 Agri- cultural production 5,602 3,325 2,446 5,324 5,222 4,516 4,565 4,429 1,538 25.28 expenditure Non-agricultural production 11,056 7,517 9,763 13,043 16,112 17,083 17,033 13,087 4,544 74.72 expenditure HH 1. Food 3,063 3,600 5,184 4,984 7,403 7,681 7,701 5,659 1,965 32.31 Expen- diture 2.Personal relation- 2,063 1,567 1,342 1,342 2,296 1,436 1,641 1,670 580 9.53 ships

3. Edu- 1,389 833 1,007 2,207 2,151 2,402 2,473 1,780 618 10.16 cation 4.Medical 1,992 967 1,248 2,048 1,855 1,375 1,886 1,624 564 9.27 5.Others 2,548 550 980 2,460 2,408 4,189 3,332 2,353 817 13.43 Total 16,658 10,842 12,209 18,367 21,334 21,599 21,598 17,515 6,082 100.00

3.2.8. Resettlement Willingness Survey 69. About 93.1% of the 429 AHs are aware of the project, 6.4% are not quite aware of the project, and 0.5% are not aware at all. About 98.8% of the AHs expressed support for the project implementation; no AHs object to the project; and 1.2% have no idea about the project at this stage, as presented in Table 3-8 for details.

P 34 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 3-8: Resettlement Willingness Survey of the Affected Households Choice of Different Answers (%) No. Question Answer 1 2 3 Other Total Are you aware of the 1. Aware 2. Not quite 3. Not 1 93.1% 6.4% 0.5% 100% project? aware Are you in support of 1. Yes 2. No 3. I have no idea at 2 98.8% 0.0% 1.2% 100% the project? this stage a) the Country: 100.0% 0.0% 0.0% 100% 1. Yes 2. No Who do you think the b) Collective: 3 100.0% 0.0% 0.0% 100% project is beneficial to? 1. Yes 2. No c) Individual: 100.0% 0.0% 0.0% 100% 1. Yes 2. No Do you know the LAR 4 1. Yes 2. No 99.0% 1.0% 0.0% 100% compensation policies? Are you willing to let LA 5 in support of the 1. Yes 2. No 100.0% 0.0% 0.0% 100% project? If you lose the land due 6 to LA, are you willing to 1. Yes 2. No 95.1% 4.9% 0.0% 100% continue farming? If you lose the land due to LA, are you willing to 7 1. Yes 2. No 89.7% 10.3% 0.0% 100% convert to non- agriculture Hukou? If you lose the land due to LA, are you willing to 8 1. Yes 2. No 95.6% 4.4% 0.0% 100% work in enterprises/work for others? If you lose the land due 9 to LA, are you willing to 1. Yes 2. No 97.8% 2.2% 0.0% 100% do businesses? If you lose the land due 10 to LA, are you willing to 1. Yes 2. No 99.5% 0.5% 0.0% 100% get social insurance? If you lose the land due 11 to LA, are you willing to 1. Yes 2. No 98.3% 1.7% 0.0% 100% attend skills training? 1. Breeding; 2. skills for working 0% for in factories; 3. Service skills #4–#6 (cleaning, cooking, What kinds of training housekeeping, etc.); 4. 12 82.0% 8.8% 9.3% you want to have? Protection of workers’ rights and interests; 5. Doing business (financial knowledge, etc.); 6. Others If you get compensation 1. Bank deposit; 2. business; 3. 3% for from LA, what will you contacted land for farming; 4. #5 and 13 do with the 73.9% 23.8% 2.4% migrant working; 5. building compensation fund? 3% for house; 6. Others (Multiple choices) #6 Do you know how to file a complaint in case of 14 1. Yes 2. No 99.7% 0.3% 100% dissatisfaction with LAR?

P 35 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

4. Legal and Policy Framework 4.1. Policies, Laws, and Regulation on Resettlement 70. The RP of the project has been prepared and will be implemented in strict line with the laws and regulations of the PRC, Yunnan Province, and Zhaotong City; and ADB’s requirements for involuntary resettlement. The laws, regulation, and policies related to the project LAR are summarized in Table 4-1. 71. As the PRC’s Land Administration Law was amended on 26 August 2019 and will be effective from 1 January 2020, any new LAR-related regulations and policies based on the new Land Administration Law will be incorporated in the updated RP, prior to commencement of the LAR under the project. Table 4-1: Summary of Relevant Laws, Policies, and Regulations Level Policy Document Effective Date Land Administration Law of the PRC Amended on 2019-8-26 and to be effective from 2020-1-1

Notice on Issuing the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (Ministry of Land and 2004-11-3 Resources [MLR, 2004] No.238)

Regulations of the Ministry of Land and Resources on Public 2004-5-1 Hearing on Land and Resources (MLR [2004] No.22)

Decision of the State Council on Deepening the Reform and Rigidly 2004-10-21 Enforcing Land Administration (State Council [SC, 2004] No.28)

Notice of the State Council on Issues Concerning the Strengthening 2006-8-31 of Land Control and Adjustment (SC [2006] No.31) National Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a 2006-4-10 Good Job in the Employment Training and Social Security of Land- expropriated Farmers (SC [2006] No.29)

Notice on Adjusting Fees for Using Additional Construction Land 2006-11-7 (CZ [2006] No.48)

Property Law of the People’s Republic of China 2007-3-16

Notice of the Ministry of Labor and Social Security, and Ministry of Land and Resources on Doing a Good Job in Social Security for 2007-4-28 Land-expropriated Farmers Practically (Ministry of Labor and Social Security [MLSS, 2007] No.14)

Notice of the Ministry of Land and Resources on Doing a Better Job 2010-6-26 in LA Management (MLR [2010] No.238)

P 36 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Level Policy Document Effective Date Land Administration Regulations of Yunnan Province 1999-3-22

Forestland Administration Measures of Yunnan Province 1997-3-26

Basic Farmland Protection Regulation of Yunnan Province 1996-1-1

Opinions of Yunnan Provincial People’s Government on Implementing Land Acquisition Compensation and Resettlement 2008-1-29 Regulation of the State Council for Large and Medium Scale Water Conservation and Hydropower Projects

Land Acquisition Compensation Standard for the 15 Prefectures Yunnan 2014-5 (Municipalities) in Yunnan Province (amended) Province Implementation Measures of Endowment Insurance Treatment for 2008-11-18 Land-Expropriated Farmers of Yunnan Province

Guiding Opinions on Reforming and Improving the Basic 2019-1-3 Endowment Insurance for Land-expropriated Farmers

Methods for Collection and Utilization Farmland Cultivation and 2012-3-22 Land Reclamation Fee in Yunnan Province

Cultivated Land Occupation Tax Implementation Measures of 2008-10-3 Yunnan Province

Zhaotong Land Acquisition Compensation Standards of Zhaotong, Unified 2013-4 City Annual Production Value of Zhaotong Municipality

Asian Safeguard Policy Statement—Requirement 2: Involuntary Development Resettlement 2009-6 Bank

4.2. National Laws and Regulations 72. Land Administration Law of the People’s Republic of China (amended in August 2019) Any organization or individual that need land for construction purposes should apply for the land utilization owned by the State according to the law. Article 44: Whereas occupation of land for construction purposes involves the conversion of agricultural land into land for construction purposes, the examination and approval procedures in this regard shall be required. Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization of land within the amount of land used for construction purposes as defined in the general plans for cities, villages, and market towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original general plans for the utilization of land. The specific projects within the

P 37 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan scope of land approved for conversion shall be approved by the people’s governments of cities or counties. Article 47: In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees, and compensation for attachments to or green crops on the land. Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people’s governments of provinces, autonomous regions, and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the AAOV of the 3 years prior to the acquisition. 73. Notice on Issuing the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (Ministry of Land and Resources [2004] No.238) Agricultural resettlement. When rural collective land out of urban planning areas is acquired, land-expropriated farmers (LEFs) shall be first provided with necessary arable land using mobile collective land, contracted land turned over by contractors, and arable land arising from land development so that they continue to pursue agricultural production. Reemployment resettlement. Conditions shall be created actively to provide free labor skills training to the LEFs and place them to corresponding jobs. Under equal conditions, land users shall first employ the LEFs. When rural collective land within urban planning areas is acquired, the LEFs shall be included in the urban employment system and a social security system established for them. Dividend distribution resettlement. When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for the LA or rights to use construction land in consultation with the land user. The rural collective economic organization and rural HHs will receive dividends as agreed. Non-local resettlement. If basic production and living conditions are not available locally to the LEFs, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural HHs. Provisions on information disclosure and supervision. The LA approval shall be disclosed. For any land acquired with approval according to law, the Ministry of Land and Resources (MLR) and the provincial land and resources department shall disclose the LA approval to the public through mass media, except where any state secret is involved. The district/county (municipal) land and resources bureaus shall disclose the LA approval to the affected village. 74. Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (State Council [2004] No.28) Basic farmland shall be protected strictly because basic farmland is the basis for national food safety. Once identified, basic farmland shall not be occupied by any organization or individual; or

P 38 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan not be reused without the approval of the State Council. Any basic farmland occupied after approval shall be compensated for at the highest applicable rate. Improving measures of compensation for land acquisition. County-level and above local people’s governments shall take practical measures so that the standard of living of farmers affected by the LA is not reduced by the LA. Land compensation, resettlement subsidy, and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers affected by the LA or to pay the social security expenses of farmers who lose all land due to the LA, the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by the LA, local people’s governments may pay a subsidy from the income from compensated use of state land. Resettling land-expropriated farmers properly. County-level and above local people’s governments shall take specific measures to guarantee long-term livelihoods of farmers affected by the LA. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local people’s governments shall bring farmers who lose all land due to the LA into the urban employment system; and establish a social security system out of the urban planning area. In acquiring land collectively owned by farmers, local people’s governments shall reserve necessary arable land; or arrange appropriate jobs for farmers affected by the LA within the same administrative area, Farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor resources and social security bureau authorities shall propose guidelines for the employment training and social security systems for farmers affected by the LA as soon as possible. Improving land acquisition procedures. During the LA, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before the LA is submitted for approval pursuant to law, the use, location, compensation standard, and resettlement mode of the land to be acquired shall be notified to farmers affected by the LA. The survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by the LA. If necessary, the land and resources department/bureau authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by the LA shall be taken as requisite materials for the LA approval. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over-compensation and resettlement for the LA to protect the lawful rights and interests of farmers affected by the LA and land users. Approved matters of the LA shall be disclosed unless in special cases. Strengthening supervision over the implementation of land acquisition. If the compensation and resettlement for the LA has not been implemented, the acquired land shall not be used forcibly. The people’s governments of provinces, autonomous regions, and municipalities directly under

P 39 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan the Central Government shall formulate the procedures for the distribution of the land compensation within rural collective economic organizations on the principle that the land compensation is used for rural HHs affected by the LA mainly. Rural collective economic organizations affected by the LA shall disclose the receipt, disbursement, and allocation of land compensation fees to their members and accept supervision.

75. Guidelines on Improvement of Employment Training and Social Security for Land- Expropriated Farmers (SCO [2006] No.29) Improvement of employment training and social security for the LEFs shall be an important part of the LA institutional reform. Local governments at all levels shall strengthen employment training and social security, include the LEF employment issues in economic and social development plans and annual plans, establish social security institutions suited to the characteristics and needs of the LEFs, take effective measures to secure employment training and social security funds, promote the LEFs’ employment and integration into urban society, and ensure that the LEFs’ living standards are not reduced due to the LA and their long-term livelihoods are secured. Define the scope, highlight the key points, and make unified planning. Subjects of employment training and social security for the LEFs shall mainly be registered agricultural population, losing all or most of land due to the unified acquisition of rural collective land by the government; and having the right to contract rural collective land upon the LA. To do a good job in employment training and social security for the LEFs, new LEFs should be the key group; the LEFs of labor age be key subjects of employment training, and elderly LEFs be key subjects of social security. During implementation, all localities shall plan new and old issues of employment training and social security for the LEFs in a unified manner based on local conditions; and the affordability of local public finance, village collectives, and farmers. For eligible new LEFs, the government shall make employment training arrangements and implement appropriate social security policies upon the LA. Employment training and social security issues of former LEFs shall also be addressed properly. Conduct classified guidance based on conditions within and out of urban planning areas. Within urban planning areas, local governments shall include the LEFs in the urban employment system; and establish social security institutions. Out of urban planning areas, local governments shall ensure that cultivated land or jobs are reserved for the LEFs within their administrative jurisdictions; and the LEFs are included in the rural social security system. The LEFs in areas without adequate production and living conditions shall be relocated and included in the social security system of destinations. Promote the employment of the land-expropriated farmers. A market-oriented employment mechanism should be stuck to urban and rural employment planned in a unified manner; jobs developed in multiple ways; the employment environment improved; enterprises, public institutions, and communities encouraged to absorb the LEFs; and the LEFs supported to find jobs and start-up businesses themselves. Within urban planning areas, the LEFs shall be included in the uniform unemployment registration system and urban employment service system. Unemployed LEFs may go through unemployment registration with local public employment

P 40 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan service agencies, which shall provide employment consulting, guidance, training, and referral services to the LEFs so that those LEFs of labor age and willing to get employed to be employed as soon as possible. Unemployed LEFs of labor age and willing to get employed to be employed shall be entitled to supporting policies on employment promotion and reemployment. Ascertain the responsibility for the land-expropriated farmers’ employment and resettlement. The government shall develop public welfare jobs actively to place the LEFs with employment difficulties and urge and direct land users to employ the LEFs with priority. Employment modes may include that land users offer jobs and enter into labor contracts with the LEFs directly; or that land users, employment service agencies, and the LEFs enter into a contract together. Strengthen training for the land-expropriated farmers. Within urban planning areas, all localities shall develop vocational training programs suited to the LEFs; and help the LEFs get employed by various means, such as order-based training. Out of urban planning areas, all localities shall give vocational training to the LEFs actively to improve their employment competitiveness and ability to start up business. Secure basic and long-term livelihoods. All localities shall secure basic and long-term livelihoods of the LEFs by various means based on practical conditions. For the LEFs within urban planning areas, measures for maintaining basic living standards and old age security shall be developed based on local economic level and for different age groups. The LEFs entitled to the MLS for urban residents shall be included in the MLS system for urban residents. In areas where trials on urban medical assistance institutions have begun, the LEFs eligible for medical assistance shall be included in the scope of medical assistance. In areas where conditions permit, the LEFs shall be included in social insurance for urban enterprise employees, such as endowment, medical, and unemployment insurance, to solve their basic living security issues through the prevailing urban social security system. In areas where rural social endowment insurance institutions have been established, trials on new-type rural cooperative medical institutions are ongoing; and rural MLS institutions are implemented. The LEFs out of urban planning areas shall be included in the scope of security. In areas where the above institutions have not been established, local governments may secure the LEFs’ basic livelihoods by various means provided necessary old age support and medical services; and include eligible LEFs in local social assistance. Determine security levels rationally. All localities shall fix social security standards for the LEFs rationally on the principles of policy integration, fiscal affordability, living standard maintenance, and feasibility. Basic living and old age security standards for the LEFs shall not be less than local MLS standards. Secure employment training and social security funds. Funds for the employment training of the LEFs shall be disbursed from local finance. Funds for social security shall be disbursed from resettlement subsidies and land compensation fees for the LA approved by local governments. In areas where conditions permit, local finance and collective economy shall strengthen support for the LEFs to cover urban and rural social insurance.

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76. Notice of the Ministry of Labor and Social Security, and Ministry of Land and Resources on Improvement of Social Security for Land-Expropriated Farmers Practically (Ministry of Labor and Social Security [2007] No.14) Subjects, rates, and fund-raising method of social security for the LEFs shall be subject to prior disclosure and public hearing to protect their rights of information and participation. Labor resources and social security, and land and resources departments should work effectively to ensure the proper implementation of social security for the LEFs. All income from the transfer of the right to use state-owned land shall be entered to local treasuries and disbursed from land transfer income under local budgets. Social security costs for the LEFs shall be transferred fully to the special account, and entered the individual or pooling account within 3 months of approval of the LA compensation and resettlement program. 77. Notice of the Ministry of Land and Resources on Improvement of Land Acquisition Management (Ministry of Land and Resources [2010] No.238) (1) Apply uniform AAOV rates and location-based overall land prices for the LA in all aspects. Fixing uniform AAOV rates and location-based overall land prices for the LA are an important measure for improving the LA compensation mechanism, and realizing equal price for equal land; and an essential requirement for increasing compensation rates for the LA, and protecting farmers’ rights and interests. These rates shall be complied with strictly for rural collective land acquired for all types of construction. For any new construction project, strict control shall be exercised upon land use pre-examination to ensure that the LA compensation fees are calculated according to the published uniform AAOV rates and location-based overall land prices for the LA; and included in the budgetary estimates in full. If the construction land located in an area with the same AAOV or location-based overall land price, the level compensation for the LA shall be largely consistent, so as to realize equal compensation for equal land. All localities shall establish a dynamic adjustment mechanism for compensation rates for the LA, adjust compensation rates for the LA every 2 or 3 years depending on economic level and local per capita income growth, and improve the compensation level for the LA gradually. Provinces where prevailing compensation rates for the LA have exceeded specified levels shall adjust and amend their compensation rates hereunder. Any province that fails to make timely adjustments shall not be pass land use examination. (2) Explore and improve depository systems for the LA compensation fees. To prevent the default of the LA compensation fees and ensure that compensation fees are made available timely and fully, all localities shall explore and improve depository systems for the LA compensation fees. When organizing land approval, a municipality or county shall estimate the LA compensation fees according to the size and compensation rate of the LA; and the land use applicant shall deposit the LA compensation fees in advance. For urban construction land and land for any construction project selected separately in the mode of transfer, the local government shall deposit the LA compensation fees in advance. After the land use has been approved according to the law, the deposited LA compensation fees shall be settled timely.

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Provincial-level land and resources departments shall establish sound rules and regulations for the deposition of the LA compensation fees together with competent authorities based on local conditions, and exercise control during land use examination. (3) Distribute the LA compensation fees rationally. After uniform AAOV rates and location- based overall land prices for the LA are practiced, provincial-level land and resources departments shall establish sound measures for the distribution of the LA compensation fees together with the departments concerned; and submit them to the provincial-level governments for approval, provided compensation fees for the LA should be used mainly on the LEFs. Upon the LA, municipal and county land and resources departments shall pay compensation and resettlement fees timely and fully according to determined compensation and resettlement programs for the LA. Fees payable to the LEFs shall be paid directly to individual farmers, and the withholding or embezzlement of compensation and resettlement fees for the LA shall be prevented or corrected timely. (4) Give priority to agricultural resettlement. All localities shall adopt effective resettlement modes suited to local conditions. In rural areas where cultivated land has been added through land management or much mobile land is reserved by rural collective economic organizations, priority shall be given to the mode of agricultural resettlement upon the LA, where newly added cultivated land or mobile land shall be allocated to the LEFs so that they are able to maintain basic production conditions and income sources. (5) Regulate resettlement on reserved land. Where the LA is conducted within the range of urban construction land identified in a master plan for land utilization, the resettlement mode on reserved land may be adopted based on local conditions. However, guidance and management shall be strengthened. Reserved land shall be provided in the range of urban construction land and converted into state-owned land; where farmland conversion is involved, it shall be included in annual land utilization plans to prevent expanding the size of urban construction land due to resettlement on reserved land; reserved land development shall comply with the urban construction plan and pertinent provisions. In areas where resettlement on reserved land is practiced, local governments shall develop strict administrative measures to ensure that reserved land is arranged normatively and orderly; and developed and utilized scientifically and rationally. (6) Ensure social security funds for the LEFs are available. Including the LEFs in the social security system is an effective way of solving the long-term livelihood problem of the LEFs. Land and resources departments at all levels shall promote the building of the social security system for the LEFs together with the departments concerned under the leadership of local governments. Presently, the key to the social security for the LEFs is to secure social security funds. All localities are encouraged to expand sources of social security funds from land users in conjunction with compensation and resettlement for the LA. During land use examination and approval, all localities shall control the availability of social security funds for the LEFs. In areas where trials on the new rural social endowment insurance system are conducted, the social security for the LEFs shall be linked up with the new rural social security system. Where the LEFs are included in the new rural social security system, the social security system for the

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LEFs shall also be implemented; and the new rural social security system shall not be used in place of the social security system for the LEFs. (7) Implement compensation and resettlement for houses demolished in the LA practically. All localities shall attach great importance to farmers’ HD in the LA, and strengthen management practically pursuant to the Emergency Notice. Compensation and resettlement for farmers’ HD involves many aspects, such as land, planning, construction, the HH registration and civil affairs management, and such social issues as public security, environmental management, and folk customs. Municipal and county land and resources departments shall establish a coordination mechanism, develop measures, and implement the HD properly together with the departments concerned under the unified leadership of local governments. The applicable laws, regulations, and policies shall be complied with strictly; and the relevant procedures performed, so that displaced rural HHs are resettled before their houses are demolished; and illegal or nonconforming compulsory demolition shall be avoided or corrected. (8) Reasonable compensation and resettlement shall be provided for the HD. Farmers’ houses demolished in the LA shall be compensated for reasonably, and diversified resettlement modes suited to local conditions adopted to solve the housing problem for displaced rural HHs properly. In far suburbs and rural areas, the mode of relocation and reconstruction shall be adopted mainly, where housing sites shall be allocated for house construction. Compensation for the HD shall cover both demolished houses and acquired housing sites. Demolished houses shall be compensated at replacement cost, and acquired housing sites shall be compensated for at local compensation rates for the LA. In outskirts and urban villages, no housing site shall be allocated separately for house construction in principle; while the mode of compensation in cash or in kind shall apply mainly, where displaced rural HHs shall purchase houses themselves or accept resettlement housing provided by the government. The sum of compensation fees and government subsidies received by displaced rural HHs shall be sufficient for them to purchase houses at reasonable levels. (9) Carry out the LA and the HD orderly under unified planning. In outskirts and urban villages, local governments shall forecast the scale of farmers’ HD and resettlement within a certain period based on urban development plans; make advance arrangements for resettlement sites and housing; and organize the HD orderly. Resettlement housing construction shall comply with urban development plans, and “repeated demolition” shall be avoided. In far suburbs and rural areas, in case of resettlement by relocation and reconstruction, relocation and reconstruction land shall be provided within village and town construction land, giving priority to the utilization of idle land and unused housing land. For villages included in the range of demolition and merger, relocation and reconstruction land shall be as close to planned settlements as possible. Where conditions permit, resettlement housing for displaced rural HHs shall be constructed in a unified manner in conjunction with new countryside or central village building. (10) Conduct notification, confirmation, and hearing carefully before reporting for approval. The LA concerns farmers’ immediate interests; and the rights of information, participation, appeal, and supervision of farmers shall be protected. Municipal and county land and resources departments shall perform the procedures carefully to listen well to farmers’ opinions before reporting for

P 44 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan approval of the LA in strict conformity with the pertinent provisions. The LA programs shall be notified practically to village groups and farmers by such means as broadcast, village bulletin board, and announcement in conjunction with village affairs disclosure. If any LEF has an objection and proposes a public hearing, the local land and resources department shall organize a hearing timely. Reasonable requirements proposed by farmers must be addressed properly. (11) Simple post-approval implementation procedures. To shorten the implementation time after the LA approval, where the notification, confirmation, and hearing procedures have been performed; and the confirmation of land ownership, land type, size, ground attachments and young crops, and compensation registration have been completed before reporting for approval of the LA, the compensation and resettlement program for the LA may be drafted upon reporting for approval of the LA. After the approval of the LA, the LA announcement and the announcement of the compensation and resettlement program for the LA may be posted concurrently. If there is any further public opinion during announcement, the policies shall be publicized and explained carefully to win public understand and support. (12) Strengthen the responsibility of municipal and county governments as the main subject of the LA. According to law, municipal and county governments are the main subject of the LA; and generally responsible for the fixation of compensation rates for the LA, compensation and resettlement for the HD, timely and full disbursement of compensation fees, employment training of the LEFs, and inclusion of the LEFs in the social security system. Land and resources departments shall perform its responsibilities under the unified leadership of the government to ensure that the LA is conducted normally and orderly. (13) Implement a feedback system after approval of the LA. Within 6 months of approval of construction land (for urban construction land approved by the State Council, after the approval of farmland conversion and the LA programs by provincial-level governments), municipal and county land and resources department shall submit information on the implementation of the LA, including the range and size of the LA, the performance of the post-approval procedures for the LA, the availability of the LA compensation fees, and the resettlement and social security implementation of the LEFs, to the provincial-level land and resources department and the MLR via the online submission system. Provincial-level land and resources departments shall urge and direct municipalities and county to submit information properly; check submitted information; and correct non-submission, delayed submission, and erroneous submission timely. Land and resources departments at all levels shall take full advantage of submitted information to master and analyze the post-approval implementation of the LA, strengthen post-approval land regulation, and ensure that the LA is implemented as required.

4.3. Yunnan Provincial Regulations

78. Land Management Regulations of Yunnan Province (July 27, 2014) Article 6: Where the ownership or use rights of land are changed according to law, the transfer of land use rights shall be caused by the transfer of attachments such as buildings and structures on the ground according to law; or the use of land is changed according to law, relevant

P 45 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan documents must be submitted within 30 days after the change or approval date to the land administration authority of county and above level government for land change registration. Article 13: If the farmland is approved to be used for non-agricultural construction, but construction is not started for more than 1 year (without organizing cultivation activities within the year); or foundation trench, corner stone, and retaining wall are constructed while the land is left unused for more than 1 year, idle land fee will be charged 4 times the average production value of the previous 3 years; and if unused for 2 consecutive years, the county and above level government will retrieve the land free of charge for rearrangement. Article 17: For the LA for construction, the land administrative authority of the county-level people’s government shall uniformly accept the application for construction land use; and after review by the county-level people’s government, it will be submitted to superior authority subject to approval jurisdiction. For acquisition and occupation of forestland or acquisition and use of land within the urban planning area, the entity or individual shall obtain approval from county and above level forestry and construction authority; and then, request for approval of construction land use in accordance with provision of this regulation. The approved construction land must be used in the purpose as approved, and no changes shall be made without approval. If change of land use purpose is needed, approval is required as stipulated in Article 56 of the Land Administration Law. Article 19: If acquisition of farmers’ collective land is needed for construction, county and above level land administration authority, together with the PIU, shall develop the LA compensation and RP (LACRP); and incorporate comments from the rural collective economic organization and the farmers. The LACRP shall be included in the approval of land use preliminary review of construction projects. After the LACRP are approved together with the LA plan, the local municipal and county governments will disclose the LACRP within 15 days; and organize implementation. The owner or use right holder of the land to be acquired shall go to the county land administration authority with their ownership certification for the LA compensation registration. 79. Forestland Management Measures of Yunnan Province (March 26, 1997) Article 3: The forestland referred to in these measures includes arbor forestland with a canopy closure degree of 0.2 or more, bamboo woodland, shrubbery land, sparse forestland, harvested land, burned land, unforested forestland, nursery land, and the planning of the people’s government at or above the county-level woodland. Article 10: The units and individuals that need to occupy or requisition forestland due to construction and production must provide the following documents upon application and be approved by the forestry administrative department at or above the county level: (1) Design task books or other approval documents approved by the competent department of the State Council or the people’s government at or above the county level in accordance with the provisions of the State construction procedures; (2) The ownership certificate of the occupied and requisitioned forestland; (3) Design documents for survey and design of occupied and requisitioned forestland and survey of harvested forest trees; and

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(4) Forestland compensation fees, forestry compensation fees, resettlement subsidies, and forest vegetation restoration fee agreement. It is forbidden for any unit or individual to approve or expropriate forestland without authorization or by unauthorized authority. Article 12: Units or individuals that occupy or requisition forestland must apply for forestland use licenses, as required; and use the forestland according to the approved area and location. If forest trees need to be harvested, they must go through the forest harvesting permit to the forestry administrative department at or above the county level in the forestland within the forest harvesting quota. Article 14: If expropriation, requisition, or occupation of forestland is approved according to law, compensation for forestland shall be made to the owner or use right holder of the land to be expropriated, requisitioned, or occupied; forest and/or wood compensation fee shall be paid to the owner of the forest and/or wood; resettlement subsidy shall be paid to the use right owner of the forestland; and in addition, forest vegetation restoration fee shall be paid according to the laws and regulations. In case of vegetation is damaged due to temporary occupation of forestland, the responsible entity or individual shall restore the forestry production conditions; and pay forest vegetation restoration fee. The forest vegetation restoration fee collected by the county and above level forestry authority shall be allocated and utilized by the province, prefecture, municipality, and/or county in the ratio of 2:6; and the fund must be used exclusively for afforestation in different areas and the restoration of forest vegetation. Article 17: The resettlement subsidy for occupation and requisition of forestland shall be as follows: if the state-owned forestland is occupied, it shall be calculated at 4 times of the AAOV of the previous 3 years; and for the acquisition of collective forestland, it shall be calculated at twice the AAOV of the previous 3 years. It is also possible to replace the payment of resettlement subsidies by other means such as the employment of surplus labor generated from the affected employer due to occupation and acquisition of forestland. Article 18: The standard for the restoration of forest vegetation shall be calculated according to the cost of constructing the same area of high yield forests. 80. Basic Farmland Protection Regulation of Yunnan Province (January 1, 1996) Article 12: The basic farmland shall not be altered or occupied by any unit or individual without authorization. If it cannot be avoided due to key construction projects such as energy, transportation, and water conservancy, the construction unit should submit application (with relevant approval documents) to the land administration department at or above the county level; request for approval from the agricultural administrative authority of the same level; and once approved, the following procedures should be complied with: (1) If the occupation of Grade 1 basic farmland in the basic farmland protection area is less than 500 mu, approval from the provincial people’s government is required; and (2) If the occupation of Grade 2 basic farmland or other basic farmland is less than 10 mu, approval of the prefecture and/or municipal government is required, along with registration at the

P 47 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan provincial government; and if the occupation is more than 10 mu but less than 1,000 mu, approval from the provincial people’s government is required. If key construction projects such as energy, transportation, and water conservancy need to temporarily occupy basic farmland, they shall submit for approval together with construction land use in accordance with the provisions of the preceding paragraph. If they fail to submit the approval together with the construction land use under special circumstances, the provisions of Article 23 of the Implementation Regulations of the Land Administration Law shall be complied with. If it is approved to temporarily occupy basic farmland, it shall be used within the approved location, area, and time limit. Units and individuals that have obtained approval to occupy or temporarily occupy basic farmland shall be responsible for repairing and compensating for losses within a time limit for damage to production infrastructure, such as farmland water conservancy facilities. Article 14: Basic farmland occupied by approved development zones and other non-agricultural development, if construction is not started or the land is idle for more than 1 year, the responsible unit or individual shall pay to the land management authority idle charge 6 times of the average production value of the farmland. In case of land being idle for more than 2 years without consent of the original approving authority, in addition to idle charge, the land use right will be retrieved after the approval of the local government; and the land use certificate will be revoked. If the basic farmland is left idle for more than 1 year by the organization or individual who engage in agricultural production and business, the land contract right will be retrieved by the contract- issuing party. Article 15: Strictly control the conversion of basic farmland to fruit trees or breeding ponds. If it is indeed necessary, it must be granted by the county (city) agricultural administrative bureau; and reported to the people’s government at the same level for approval. 81. The Notice of Yunnan Provincial Government on Issuing the Trial Measures for Endowment Security of Land-Expropriated Farmers (Yun Zheng Fa [2008] No. 226) (November 18, 2008) Article 2: The measures are applicable to the registered (16 years old and above) who lost all or part of their land (per capita farmland reduced to less than 0.3 mu) due to the LA. Where per capita farmland is higher than 0.3 mu after the LA, but the per capita farmland is inadequate to maintain basic production and living, they can be included into basic endowment support scope depending on local conditions. Article 5: Persons who are included in the basic endowment security shall be discussed and nominated by the village (residential) committee or the villager’s congress, reported to the township (town) people’s government or the sub-district office for verification and disclosure, and then passed on to the county-level land resources and social security bureau for approval. Article 6: Funds for basic endowment security shall be borne by individual farmers, rural collectives, and local governments in proportion; and a one-time payment shall be made. The total amount of funds raised shall be based on the MLS standard for urban residents in the same year, due consideration shall be given to the increase, and payment period is 15 years. The

P 48 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan individual payment and collective subsidy are not higher than 60% of the total fundraising, and the government subsidy is not less than 40% of the total fundraising. The basic endowment security funds are not subject to taxation or fees. Article 7: The government subsidy shall be allocated by the financial department at one time from the special LA funds collected. In the process of the LA, the government will collect such special fund by not less than 20,000 yuan/mu. Article 14: If the LEFs participate in the basic endowment security and pay the full amount according to the regulations, they shall receive the basic endowment security fund on a monthly basis from the next month of the 60th birthday. 82. Guiding Opinions on Reforming and Improving the Basic Endowment Insurance for Land-Expropriated Farmers (General Office of Yunnan Provincial People’s Government) (January 3, 2019) Objectives and tasks. By 2020, the basic endowment security policy for the LEFs will be basically merged with the basic endowment insurance system stipulated by the State; and eligible LEFs will be included in the basic endowment insurance for urban and rural residents, or the basic endowment insurance system for urban employees. The sense of gain of the LEFs will be enhanced, and the reform and development achievements will be requisitioned to the farmers with more fairness. After the LEFs participate in the basic endowment insurance, they can enjoy one fixed subsidy for the insurance participation per year; and the accumulated subsidy period is not more than 15 years. If the LEFs do not participate in the basic endowment insurance, they will not enjoy the subsidy for participation insurance. The funds required for the subsidy are included in a special fund for basic endowment insurance for the LEFs (hereinafter referred to as special funds). The subsidy standard for participation insurance is not less than 1,000 yuan/person/year. In principle, it is not higher than the maximum payment standard for basic pension insurance for urban and rural residents. The specific subsidy standard shall be determined by the county-level government according to factors such as the total amount of special funds to be increased, the number of eligible objects, and the per capita disposable income of rural residents; and adjusted according to the local economic and social development level and price index changes. 4.4. ADB Safeguard Policy Statement: Requirements on Involuntary Resettlement 83. ADB’s involuntary resettlement safeguards aim to avoid involuntary resettlement, wherever possible, to minimize involuntary resettlement by exploring project and design alternatives; enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and improve the standards of living of the displaced poor and other vulnerable groups. 84. Involuntary resettlement, as an important part in the RP, must be in line with the following basic principles:

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(1) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks; and determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks; (2) Carry out meaningful consultations with APs, host communities, and concerned nongovernment organizations; inform all displaced persons of their entitlements and resettlement options; ensure their participation in planning, implementation, and monitoring and evaluation (M&E) of resettlement programs; pay particular attention to the needs of vulnerable groups; and support the social and cultural institutions of displaced persons and their host population; (3) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land-based, where possible; or cash compensation at replacement value for land when the loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation at full replacement cost for assets that cannot be restored; and (iv) additional revenues and services through benefit-sharing schemes, where possible; (4) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required; (5) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards: in rural areas, provide them with legal and affordable access to land and resources; and in urban areas, provide them with appropriate income sources; and legal and affordable access to adequate housing; (6) Develop procedures in a transparent, consistent, and equitable manner if the LA is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status; (7) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets; (8) Prepare an RP elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule; (9) Disclose a draft RP, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to the APs and other stakeholders; and disclose the final RP and its updates to the APs and other stakeholders;

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(10) Conceive and execute involuntary resettlement as part of a development project or program; include the full costs of resettlement in the presentation of project’s costs and benefits; and for a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation; (11) Pay compensation and provide other resettlement entitlements before physical or economic displacement; and implement the RP under close supervision throughout project implementation; and (12) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the RP have been achieved by taking into account the baseline conditions and the results of resettlement monitoring; and disclose monitoring reports. 85. There is not a big difference between the LAR policies; and the principles of ADB, the PRC, Zhaotong City, Zhaoyang District, and Ludian County. 4.5. The Gaps and Gap-Filling Measures between the ADB Policy and the PRC Laws and/or Policies 86. Key gaps between ADB’s Safeguard Policy Statement (SPS, 2009) and the PRC’s system and local practices as well as the gap-filling measures in the RP were identified as presented in the table below.

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Table 4-2: Comparative Analysis of the PRC’s System and ADB’s Safeguard Policy Statement as well as the Gap-Filling Measures in the Resettlement Plan Legal Provisions and Local Practices; and Differences compared to ADB’s Gap-Filling Measures in the ADB’s Safeguard Policy Statement Safeguard Policy Statement Resettlement Plan (RP) Policy Principle 1: Screen the project early on to identify Management Regulations for Construction Project Land Use Pre-examination (Decree The RP and due diligence reports have past, present, and future involuntary resettlement impacts No.42 of the Ministry of Land and Resources [MLR]) requires to screen the area and type been prepared during project preparation and risks. Determine the scope of resettlement planning of the land to be provided for the project before approving the feasibility study report or to identify all involuntary resettlement through a survey and/or census of displaced persons, checking the project proposal. impacts and risks, including identification including a gender analysis, specifically related to Before land acquisition (LA), local land and resources bureau conducts detailed of issues of gender and vulnerable group. resettlement impacts and risks. measurement survey. Before house demolition (HD), the HD agency conducts detailed measurement survey. Regulations of the People’s Republic of China do not assess past impacts. There is no specific legal provision to include analysis of gender and vulnerability in resettlement planning. However, in line with local government policies and program, special needs and measures for women and vulnerable group can be identified and assessed. Particularly, identification of vulnerable group and support measures can be developed based on the (i) Five-Guarantee Households (HHs) and (ii) Minimum Living Guarantee System. Please see Policy Principle 5 for more details. Policy Principle 2: Carry out meaningful consultations At national level, the Land Administration Law of the People’s Republic of China, State The RP includes (i) adequate provisions with affected persons (APs), host communities, and Council's Decision on Deepening Reform and Managing Strictly Land (State Council [2004] of consultations, including with the poor concerned nongovernment organizations. Inform all no.28), Guidelines on Improving the System of Land Acquisition Compensation and and vulnerable groups; (ii) documenta- displaced persons of their entitlements and resettlement Resettlement (MLR [2004] no. 238), and the Regulations on the Compensation of Houses tion of the C&P and information options. Ensure their participation in planning, on State-owned Land and Compensation (2011) have similar requirements on consultation disclosure; (iii) GRM; and (iv) special implementation, and monitoring and evaluation of and participation (C&P). In the province, relevant regulations and policies also require the assistance measures for the poor and resettlement programs. C&P and information disclosure throughout the LA and resettlement (LAR) procedures. vulnerable groups during the RP Pay particular attention to the needs of vulnerable groups, Although there are C&P activities conducted by local government, only some government’s implementation. especially those below the poverty line, the landless, the procedural documents are documented. To improve the documentation, all activities need elderly, women and children, Indigenous Peoples, and to be properly documented. those without legal title to land; and ensure their As per law, a GRM is established at the local government where farmers can first raise their participation in consultations. concerns with the village collective or bring their grievances through the legal system Establish a grievance redress mechanism (GRM) to directly. However, the documentation system is not adequate. receive and facilitate resolution of the APs’ concerns. In line with local government programs, the needs of vulnerable groups affected by any Support the social and cultural institutions of displaced project can be identified and assessed based on the (i) Five-Guarantee HHs and (ii) persons and their host population. Minimum Living Guarantee System. In practice, local village committee, civil affairs bureau, Where involuntary resettlement impacts and risks are social security bureau, and other government agencies pay attention to the needs of the highly complex and sensitive, compensation and poor and vulnerable groups. resettlement decisions should be preceded by a social preparation phase. Policy Principle 3: Improve, or at least restore, the The Land Administration Law (2019) requires that for collective land compensation, the The RP includes adequate measures of livelihoods of all displaced persons through (i) land-based provincial people’s government needs to formulate and publish district comprehensive land (i) compensation based on replacement resettlement strategies when affected livelihoods are land- prices for the LA, and social security budget should be considered. costs; and (ii) livelihood restoration. based, where possible; or cash compensation at State Council [2004] no.28 states that (i) where the project concerned generates profits, replacement value for land when the loss of land does not the people displaced can use the land as investment to have a right to share in those profits; undermine livelihoods; (ii) prompt replacement of assets (ii) within a planned urban area, improvement of employment system and social security to with access to assets of equal or higher value; (iii) prompt safeguard the AP’s lives; (iii) out of a planned urban area, land resettlement, employment compensation at full replacement cost for assets that resettlement, or displacement resettlement shall be implemented ; and (iv) carry out cannot be restored; and (iv) additional revenues and employment trainings.

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Legal Provisions and Local Practices; and Differences compared to ADB’s Gap-Filling Measures in the ADB’s Safeguard Policy Statement Safeguard Policy Statement Resettlement Plan (RP) services through benefit-sharing schemes, where MLR [2004] no.238 and relevant provincial policies require (i) agricultural production possible. resettlement, (ii) re-employment resettlement, (iii) using the land as share of the project; Policy Principle 4: Provide physically and economically and (iv) provision of replacement land. displaced persons with needed assistance, including the Guiding Opinions on Reforming and Improving the Basic Endowment Insurance for Land- following: (i) if there is relocation, secured tenure to Expropriated Farmers (General Office of Yunnan Provincial Government) (January 3, 2019) relocation land, better housing at resettlement sites with requires that special fund for Primary Endowment Insurance should be paid before comparable access to employment and production approval and implementation of the LA. opportunities, integration of resettled persons Compensation rates for affected assets are administratively determined through application economically and socially into their host communities, and of prescribed valuation processes. extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Policy Principle 5: Improve the standards of living of the As per legal provisions, poor and vulnerable groups are defined as those (i) who fall within Identification of the poor and vulnerable displaced poor and other vulnerable groups, including the Five-Guarantee HHs; and (ii) eligible for the Minimum Living Guarantee System. groups has been made during the women, to at least national minimum standards: in rural The local village and/or community committee, civil affairs bureau, social security bureau, preparation of the RP. areas, provide them with legal and affordable access to and other agencies pay attention to the needs of the poor and vulnerable groups: a) Five- The RP also includes the provision to land and resources; and in urban areas, provide them with Guarantee program provide production and living assistance (e.g., food, clothing, fuel, confirm the poor and vulnerable groups appropriate income sources and legal and affordable education and burial expenses to targeted vulnerable people (the elderly, weak, widowed, during the RP update. access to adequate housing. and disabled members who are unable to work; and have no means of living, or whose The project does not involve HD. HHs lack labor a rural production cooperative would); b) Those eligible for the Minimum Living Guarantee System are provided with living subsidy each month; c) Other assistance—urgent cash assistance if the HHs have serious illness in addition to the subsidy paid under rural cooperative medical care system; cash or in-kind assistance for the women-headed HHs provided by the women’s federation; and priority given by the village committee to be included in the endowment insurance system for the farmers affected by the LA. Regulations on the House Demolition and Compensation on State-owned Land (2011) states that “If the residential houses of any individuals are to be demolished and they meet the conditions for affordable housing, the concerned city and county people’s governments shall give priority to providing affordable housing to such persons.” According to the Regulations to Solve the Housing Difficulties for the Low-Income HHs (GF [2007], No.24) issued by State Council, affordable housing and low-rent housing should be provided to the HHs who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing. Principle 6: Develop procedures in a transparent, Not relevant as the project does not involve the LA through this means. N/A. consistent, and equitable manner if the LA is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. Policy Principle 7: Ensure that displaced persons without Based on the Regulations on the Demolition and Compensation of Houses on State-owned The project does not involve the HD. The titles to land or any recognizable legal rights to land are Land (2011), the illegal houses and temporary structures which were constructed after the RP provides compensation for all APs eligible for resettlement assistance and compensation for approval period will not be compensated. regardless of legal ownership of land or loss of non-land assets. As good practice (for HHs who are not eligible for compensation for houses at replacement assets. value), the history or reason why the structure does not have certification and/or license;

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Legal Provisions and Local Practices; and Differences compared to ADB’s Gap-Filling Measures in the ADB’s Safeguard Policy Statement Safeguard Policy Statement Resettlement Plan (RP) and their socioeconomic conditions and vulnerability will be assessed by the local government and concerned bureaus to determine the necessary assistance that can be provided to them to ensure that they will be able to restore or will not be worse-off. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs HHs (GF [2007], No.24) issued by State Council, affordable housing and low-rent housing should be provided to the HHs who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing. Policy Principle 8: Prepare a draft RP elaborating on Except for large-scale water sector projects, there are no specific requirements to prepare The RP has been prepared for the project displaced persons’ entitlements, the income and livelihood a draft RP which is similar to the RP required by ADB. elaborating on the APs’ entitlements, restoration strategy, institutional arrangements, monitoring income and livelihood restoration and reporting framework, budget, and time-bound measures, institutional arrangements, implementation schedule. monitoring and reporting framework, Policy Principle 9: Disclose a draft RP, including budget, and time-bound implementation documentation of the consultation process in a timely schedule. manner, before project appraisal, in an accessible place The RP will be disclosed to affected and a form and language(s) understandable to affected villages and/or communities and affected persons and other stakeholders. Disclose the final RP and people. its updates to the APs and other stakeholders. Policy Principle 10: Conceive and execute involuntary Refer to Article 12 of No.28 Decree, the total resettlement cost should be included in the The RP includes full costs of the LAR, resettlement as part of a development project or program. total project cost. All compensation and administrative costs are included. which are included in the overall project Include the full costs of resettlement in the presentation of Decree 29 issued in 2006 states land compensation and resettlement should ensure that cost. project’s costs and benefits. For a project with significant the living standards and sustainability of the livelihood of the land-loss farmers are ensured; involuntary resettlement impacts, consider implementing and that vocational training and social security programs should be properly implemented the involuntary resettlement component of the project as a for land-loss farmers. Any shortfall in the resettlement budget should be provided by the stand-alone operation. local government. Policy Principle 11: Pay compensation and provide other Regulations generally require compensation and other financial forms of resettlement Measures have been established in the resettlement entitlements before physical or economic assistance to be paid before physical or economic displacement. RP to ensure that the APs receive their displacement. Implement the RP under close supervision Local government is responsible for supervising throughout the project implementation compensation and entitlement before throughout project implementation. period, but only focused on if the affected HHs have received the full compensation displacement. Policy Principle 12: Monitor and assess resettlement Except for large-scale water projects, there are no requirements to monitor and evaluate Coordination mechanism between the outcomes, their impacts on the standards of living of outcomes, including impacts on standards of living of displaced persons. PMO and concerned the LAR displaced persons, and whether the objectives of the RP Local government is responsible for supervising throughout the project implementation implementing agencies have been have been achieved by taking into account the baseline period. However, monitoring reports are not disclosed. established in the RP to properly monitor conditions and the results of resettlement monitoring. and supervise the LAR activities. Disclose monitoring reports. Monitoring reports will be disclosed in website and project areas.

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4.6. Land Acquisition and Resettlement Principles of the Project

87. The LAR principles of the project are developed as follows: (1) Community engagement and their suggestions that can improve the APs’ living standard and livelihoods should be adopted; (2) Compensation and rehabilitation programs should improve the APs’ living standard or at least restore it to the pre-project level; (3) The APs should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; (4) Affected properties shall be compensated at full replacement cost; (5) The LA should be conducted after compensation has been fully paid; (6) Identification of the APs: the formal cut-off date for the identification of the APs is the date of publication of the announcement of the LAR. After this date, the APs should not build, rebuild, or expand their properties; should not change the uses of their properties and land; should not lease their land, lease, sell, or purchase their properties; and any person that moves in after this date should not qualify as an AP.

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5. Land Acquisition Compensation Standards and Cut-off Date

88. The compensation standards for the LA impacts of the project have been developed according to the socioeconomic survey and analysis, legal framework, and the practical situation of the project area. The compensation standards for the LA may be adjusted based on market situations during updating and implementing the RP, but will not be lower than those specified in this RP. 89. Based on the project scope in the FSR, 31 August 2019 is the preliminary cut-off date of the LAR; and the APs have been informed about it during the preliminary measurement survey. The final and formal cut-off date will be disclosed by the Zhaotong City Natural Resources Bureau before commencement of the LAR. After the cut-off date is disclosed, the APs shall not increase the physical quantities on the land to be acquired or used in the project area; or construct production buildings or facilities on the farmland; or transfer the land. Any person whose Hukou is transferred in after the cut-off date will not be eligible for the compensation.

5.1. Compensation Standards for Permanent Land Acquisition 90. According to the Land Administration Law of the PRC, the Land Administration Regulations of Yunnan Province, and the Land Acquisition Unified Annual Production Value Standards and Land Acquisition Areas Comprehensive Land Price Compensation Standard of Yunnan Province (2014), the compensation for acquisition of farmland and garden plots include land compensation fee, resettlement subsidy, and young crops compensation. Land compensation fee and resettlement subsidy will be calculated based on the amount of approved LA area and compensation standards, while compensation standards will be calculated based on local AAOV and times of the AAOV. 91. In accordance with the Land Acquisition Unified Annual Output Value Standards and Land Acquisition Areas Comprehensive Land Price Compensation Standard of Yunnan Province (2014), all lands in affected villages in the Ludian County are in Category 3 Region of Ludian County. In this region, the AAOV is 1,304 yuan/mu; and the land compensation fee and resettlement subsidy is calculated at 25 times of the AAOV, i.e., 32,600 yuan/mu. The land in the Dazhaizi and Sujia towns of Zhaoyang District are in Category 3 Region of Zhaoyang District. In this region, the AAOV is 1,214 yuan/mu; and the land compensation fee and resettlement subsidy is calculated at 25 times of the AAOV, i.e., 30,850 yuan/m. The land in the Leju Town are in Category 2 Region of Zhaoyang District. In this region, the AAOV is 1,742 yuan/mu; and the land compensation fee and resettlement subsidy is calculated at 25 times of the AAOV, i.e., 43,550 yuan/mu. Young crops compensation fee is different between garden plot and farmland: compensation fee for garden plot is twice of the AAOV, while compensation fee for farmland is one-year AAOV (1:1). 92. Thus, the comprehensive compensation standards (for both land and young crop) for permanent acquisition of garden plot in the Ludian County (three towns), Dazhaizi and Sujia towns in Zhaoyang District, and Leju and Sayu towns in Zhaoyang District are 35,212 yuan/mu, 32,778 yuan/mu, and 47,034 yuan/mu, respectively.

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93. The comprehensive compensation standards for permanent acquisition of farmland in the Ludian County (three towns), Dazhaizi and Sujia towns in Zhaoyang District, and Leju and Sayu towns in Zhaoyang District are 33,908 yuan/mu, 31,564 yuan/mu, and 45,292 yuan/mu, respectively; see Table 5-1 and Table 5-2 for details. 94. If the standards are updated during the RP update and implementation, new standards will be adapted in the project.

Table 5-1: Compensation Standards for Permanent Land Acquisition (Farmland and Garden Plot) Ludian County Zhaoyang District Shuimo Xinjie Longshu Sujia Dazhaizi Sayu Leju Item Town Town Town Town Town Town Town Category of Land Region Cat. 3 Cat. 3 Cat. 3 Cat. 3 Cat. 3 Cat. 2 Cat. 2 AAOV (yuan) 1,304 1,304 1,304 1,214 1,214 1,742 1,742 Times of AAOV 25 25 25 25 25 25 25 Land Compensation and 32,604 32,604 32,604 30,350 30,350 43,550 43,550 Resettlement (yuan/mu) (A) Compensation for Garden plot 2,608 2,608 2,608 2,428 2,428 3,484 3,484 Young Crops (yuan/mu) (B) Farmland 1,304 1,304 1,304 1,214 1,214 1,742 1,742 Comprehensive Garden plot 35,212 35,212 35,212 32,778 32,778 47,034 47,034 Compensation (yuan/mu) (A+B) Farmland 33,908 33,908 33,908 31,564 31,564 45,292 45,292 Note: It is in line with the Land Acquisition Unified Annual Output Value Standards and Land Acquisition Areas Comprehensive Land Price Compensation Standard of Yunnan Province (2014).

Table 5-2: Compensation Standard for Permanent Land Acquisition (Forestland) Collective Forestland Timber No. Item Unit Forest Shrubbery Remarks Forestland Timber forest will be calculated at 4 times of yuan/ 1 compensation fee 6,000 annual output value, economic forest at 6 times of mu (A) annual output value Tree compensation yuan/ Calculated 2 1,200 Tree compensation × 80% (B) mu as 60% of the trees Timber forest will be calculated at 2 times of Resettlement yuan/ annual average output value of last 3 years, 3 300 subsidy (C) mu economic forest at 2 times of annual output value at rich phase Comprehensive yuan/ 4 Compensation 7,500 4,500 mu Standard (A+B+C) Note: Standards are based on the Forestland Administration Regulation of Yunnan Province (October 1, 2010). 95. The compensation standard for grassland is half of that for farmland. 96. Allocation and use of the compensation fee. The land compensation fee and resettlement subsidy and young crop compensation will be fully disbursed to the AHs.

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97. During the socioeconomic survey, the per capita farmland in the project area is low, less than 2.4 mu per capita, as shown in Table 5-3. In addition, most of farmland is in mountainous area; and the actual outputs are very low. The APs in the project area stated that the net output value per mu is around 200 yuan–600 yuan after deducting costs such as seedlings and fertilizer (labor cost not deducted), which is much lower than the AAOV of 1,214 yuan/mu to 1,742 yuan/mu provided by local governments. Taking the actual average output value of 500 yuan/mu as example, the comprehensive compensation is 60–90 times of the real average output value of farmland, which means that the AHs can receive the compensation for the LAR for their agricultural income of 60–90 years on the acquired land.

Table 5-3: Per Capita Farmland in the Project Area Per capita arable land District/County Town Village Village Group (mu) 6 1.75 7 1.96 8 1.87 Buchu Village 9 1.95 Sujia Town 20 1.58 21 1.65 1 1.75 Yuba Village 2 1.75 1 1.84 2 1.74 Sayu Town Jule Village 3 1.74 4 1.94 6 1.90 Zhaoyang District 1 1.56 2 1.77 3 1.42 4 1.83 Leju Town Xinhe Village 9 1.66 10 1.54 12 1.72 13 1.62 14 1.90 1 1.81 2 1.78 Dazhaizi Town Yufei Village 3 1.64 4 1.85 9 1.69 Naheicun Group 2.15 Xinpeng Ludian County Shuimo Town Changyuan Group 2.39 Village Xinpeng Group 1.79

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Per capita arable land District/County Town Village Village Group (mu) Huangnizhai Xiaohegou Group 2.11 Village Yangchanggou Group 1.99 Goutou Group 1.82 Shuimo Village Banbianjie Group 1.94 Lujiawan Group 1.80 Heilu Village Heba Group 2.26 Shulinbian Group 2.18 Teichang Wujiacun Group 1.71 Community Xiaohebian Group 1.98 12 1.79 Shanqiao 14 1.84 Village 15 2.04 14 2.34 Pingdiying 15 2.09 16 2.19 16 2.36 17 2.25 18 1.86 Xinjie 19 1.99 Xinjie Town Community 21 1.84 22 2.22 23 2.18 24 2.16 1 2.13 2 2.17 5 2.02 Jiufang Village 6 1.92 8 1.88 9 1.81 3 2.08 4 2.12 6 2.22 Jintang Village 10 2.01 12 1.97 13 1.74 Longshu Town 16 2.28 17 2.00 Tangfang 18 1.92 Village 19 2.31 20 1.80 21 2.14

P 59 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Per capita arable land District/County Town Village Village Group (mu) 22 2.22 23 1.88 24 2.03 25 2.37 1 1.90 2 1.86 3 1.91 Zhaobi Village 6 2.11 7 2.12 9 2.11 14 2.33 2 1.83 Guzhai Village 4 1.76 5 2.38 20 2.06 21 2.08 22 2.37 23 2.04 Xinle Village 24 1.91 25 2.06 26 1.71 34 2.25

98. After received the LAR compensation, the AHs can use the compensation to do non-farm work, such as work as migrant workers in urban area of Zhaotong or other cities; or open their small business in village or towns to reduce their LA loss. They can receive skill training without any cost for the non-farm work and technical support on their agricultural production with remaining farmland. If the APs participate in social insurance with the compensation, they will be able to get 500 yuan/month–750 yuan/month depending on their ages (6,000 yuan/year–9,000 yuan/year). Based on the calculation, the LAR compensation of the project is 46–70 times of current agricultural income of the AHs. If the APs invest the compensation amount in risk free financial deposits with government-owned banks, etc., the return from the investment will be more than their net agriculture income (i.e., more than to replace their income). The AHs should not have problems in daily life in recent years with the compensation. However, they will have to change their livelihood from farm work to non-farm work. Therefore, necessary restoration measures will be taken for their long-term living.

5.2. Compensation for Temporary Land Occupation

99. For young crops affected by the TLO, the compensation is based on 1-year AAOV and time of the land to be occupied. If the land is occupied for 1 year, the one AAOV compensation will be paid to the AHs. However, if it is occupied for 2 years, two AAOV compensations will be paid. Usually, the land occupation period is 1 year or less. In addition to the young crops’

P 60 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan compensation fee, land reclamation fee in 5,502.5 yuan/mu (see Table 5-4) need to be paid by the PIUs to contractors who is responsible for the land reclamation. The reclamation fee is included in civil work contracts as part of comprehensive unit price of contracts. It is not paid in separate cost. Therefore, details of the TLO compensation standards are presented in Table 5-5. Table 5-4: Reclamation Fee for Temporary Occupation of Farmland and Garden Plot Price Cost Item Unit Quantity (yuan) (yuan) Remarks Topsoil stripping m³ 333.5 7 2,334.5 Topsoil backfill m³ 333.5 8 2,668.0 Calculated at 10% of the Earth-moving costs 5,002.5 cost of excavation and Subtotal backfill Farmland works mu 1 500.0 Total reclamation cost mu 5,502.5 Source: Feasibility Study Report (2019 September) based on local market.

Table 5-5: Compensation Standards for Temporary Land Occupation Ludian County Zhaoyang District Shuimo Xinjie Longshu Sujia Dazhaizi Sayu Leju Item Town Town Town Town Town Town Town Land Category Cat. 3 Cat. 3 Cat. 3 Cat. 3 Cat. 3 Cat. 2 Cat. 2 AAOV (yuan) 1,304 1,304 1,304 1,214 1,214 1,742 1,742 Young Crops Garden 2,608 2,608 2,608 2,428 2,428 3,484 3,484 Compensation Fee Plot (yuan/mu) (A) Farmland 1,304 1,304 1,304 1,214 1,214 1,742 1,742 Land Reclamation Fee (yuan/mu) 5,502.5 5,502.5 5,502.5 5,502.5 5,502.5 5,502.5 5,502.5 (B) Temporary Occupation of 6,807 6,807 6,807 6,717 6,717 7,245 7,245 Farmland (A+B) Temporary Occupation of Garden 9,415 9,415 9,415 9,145 9,145 10,729 10,729 Plot (A+B) Note: according to Land Acquisition Unified Annual Output Value Standards and Land Acquisition Areas Comprehensive Land Price Compensation Standard of Yunnan Province (2014), and reclamation unit price.

5.3. Endowment Insurance Fee for the Land-Expropriated Farmers 100. According to the Implementation Measures for Basic Endowment Security for the LEFs in Yunnan Province, land users (who acquire the collective farmland) shall pay endowment fee for the LEFs at 20,000 yuan/mu (farmland and garden plot). 101. According to the provisions of the measures, the endowment insurance fund is applicable to the registered APs (16 years old and above) who lost all or part of their land (per capita farmland reduced to less than 0.3 mu) due to the LA. Where per capita farmland is higher than 0.3 mu after the LA; but per capital farmland is inadequate to maintain basic production and living, they can be included into basic endowment support scope depending on local conditions. In accordance with the requirements of coordinating the development of urban and rural social security system, the fund is to be raised by individual, collective, and government for the establishment of basic endowment security system for the LEFs. The total amount of funds raised shall be based on the MLS standard for urban residents in the same year, consideration shall be given to the increase,

P 61 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan and payment period is 15 years. The individual payment and collective subsidy are not higher than 60% of the total fundraising, and the government subsidy is not less than 40% of the total fundraising. 102. According to the Guiding Opinions on Reforming and Improving the Basic Endowment Insurance for Land-Expropriated Farmers (General Office of Yunnan Provincial People’s Government) (January 3, 2019), the Yunnan Provincial People’s Government is reforming the endowment insurance system by merging the endowment insurance for the LEFs with the basic endowment insurance system stipulated by the state; and eligible LEFs will be included in the basic endowment insurance for urban and rural residents, or the basic endowment insurance system for urban employees. The LEFs can pay from 100 yuan/year to 3,000 yuan/year to participate in the insurance, and can receive 1,000 yuan subsidy/year in their individual pension account from the government. When they get 60 years old, they can receive the pension monthly. 103. According to the above provisions, the affected villages should develop a reasonable list of persons who can be included in the endowment system. The fund will be collected; but will not be disbursed directly to the AHs, and the utilization will be based on actual situation and overall consideration. As most of the project construction will affect land in liner and the land acquired from each AH along the alignment is small, so not all AHs can participate in the the endowment system. Therefore, the fund utilization can take overall considerations to reduce the burden of the LEFs. The details about the number of the AHs that can be enrolled in the scheme will be included in the updated RP.

5.4. Affected Enterprises

104. Only 10.57 mu of the factory’s quarry will be acquired by the project; and the project implementation will not affect its business operation. A comprehensive compensation rate at 80,000 yuan/mu is agreed after negotiation, which cover all costs to acquire the land, including the land cost and land leveling cost. Among the compensation, 60,000 yuan/mu for compensation for the permanent LA (PLA) to be paid to affected land owners directly; while 20,000 yuan/mu for compensation for land leveling and all cost related to the business operation caused by the LAR will be paid to the business owner directly.

5.5. Compensation Standards for Ground (Structures) Attachments 105. The compensation standards for ground attachments are based on replacement costs. Same as other compensation, the compensation for ground attachments will be paid to the AHs directly. The detailed standards will refer to that of the Land Acquisition and Resettlement Compensation Standards for Baihetan Hydropower Station Project which was smoothly implemented in project area in recent year. Table 5-6: Compensation Standards for Ground (structures) Attachments Name Specs Unit Price (yuan) Ground barricade Concrete m2 450 Retaining wall Stone m3 300 Water pipes 400 mm m 20 Cement pile 1000 mm piece 24

P 62 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Name Specs Unit Price (yuan) Electric pole Concrete pole with a height of less than 9 m piece 300 Big tree 2,500 Fruit tree Medium tree 1,800 Big tree 500 Trees (timber) Medium tree 300 Small tree 150 Source: Land Acquisition and Resettlement Compensation Standards for Baihetan Hydropower Station Project.

5.6. Land Taxes and Other Associated Fees

106. Land taxes and other associated fees are shown in Table 5-7. Table 5-7: Land Taxes and Other Associated Fees No. Item Rate Policy Basis Disbursement Procedure According to the Notice of the The Zhaotong City People’s Yunnan Provincial Pricing Bureau Government disburses the fee and the Yunnan Provincial Finance to the Zhaotong Project Ludian County Department on the Farmland Management Office (PMO); and 10,500 yuan/mu Reclamation Fee Standard (No.18, then, the PMO disburses the fee Land 2011), the affected land is to the Zhaotong Finance 1 reclamation Zhaoyang Category 3 (Ludian County) and Bureau; or the Zhaotong City fee District Category 2 (Zhaoyang District); People’s Government deducts 12,600 yuan/ and the project does not involve the fee from the total investment mu basic farmland, and compensation and disburses it to the Yunnan will adopt the standard for average Provincial Finance Department farmland. directly.

The Zhaotong City People’s Government disburses the According to the Farmland farmland occupation tax to the Occupation Tax Law of the Zhaotong PMO; and then, the Zhaoyang People’s Republic of China (PRC), PMO disburses the tax to the District the affected land is Category 4 Zhaotong City Natural 18 yuan/square (Zhaoyang District) and Category 6 Resources Bureau based on the Farmland 2 meters (m2) (Ludian County) areas; and the actual permanent land occupation tax farmland occupation tax is 18 acquisition (PLA); or the Ludian County yuan/m2 and 22 yuan/m2, Zhaotong City People’s 22 yuan/m2 respectively. Farmland occupation Government deducts the tax tax is applicable to farmland and from the total investment and garden plot. disburses it to the Zhaotong City Natural Resources Bureau directly. The Zhaotong City People’s Notice on Adjusting Forest Government disburses the fee Vegetation Restoration Fee to the Zhaotong PMO; and then, Standard and Encouraging the PMO disburses the tax to Forestland Conservation the Zhaotong Forest Bureau Woodland (November 18, 2015) issued by the 2 based on the actual PLA; or the Forest 10 yuan/m Ministry of Finance and the Zhaotong City People’s 3 vegetation National Forestry Bureau, and Government deducts the tax restoration fee Shrubland Notice on Adjusting Forest from the total investment and 6 yuan/m2 Vegetation Restoration Fee Policy disburses it to the Zhaotong (No.34, 2015) issued by the Forest Bureau directly. Yunnan Provincial Finance Department and the Yunnan Provincial Forestry Bureau

P 63 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

No. Item Rate Policy Basis Disbursement Procedure The Zhaotong City People’s According to the relevant provision Government disburses the fee of the Land Administration Law of to the Zhaotong PMO; and then, the PRC and the Implementation the PMO disburses the fee to Rules of Land Administration Law the Zhaotong City Natural of the PRC, the Ministry of Finance Zhaoyang Resources Bureau based on the and the Ministry of Land District actual PLA; or the Zhaotong Additional Resources issued the 16 yuan/m2 City People’s Government 4 construction Management Measures for deducts the fee from the total land use fee Collection and Utilization of Use Ludian County investment and disburses it to Fee for Additional Construction 10 yuan/m2 the Zhaotong City Natural Land (No.117, 1999); and the land Resources Bureau directly. grades of Zhaoyang District and Ludian County are 13 and 15, while the rate is 16 yuan/m2 and 10 yuan/m2, respectively.

After having received the allocation funds, the Zhaotong According to the requirements of Working fund PMO disburses the working the Zhaotong Land Acquisition and funds to relevant 5 Other fees Office, the working fund and coordination implementation departments coordination fund is 500 yuan/mu fund and involved township each, together 1,000 yuan/mu. governments according to the actual requirements for the PLA.

5.7. Entitlement Matrix for the Land Acquisition and Resettlement

107. The entitlement matrix for the PLA and the TLO is developed according to the relevant policies, regulations, and compensation analysis in this section; and will be provided to the affected village groups, the AHs, and enterprise, as presented in Table 5-8. Anticipated rates for subsidies and/or compensation for the LURT, the LUEFF, and the LUPRI are described in frameworks for relevant land uses.

P 64 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Table 5-8: Entitlement Matrix Entitled Number of Persons/ Affected Persons Impact Impact Scope Collective (APs) Compensation Standards and Restoration Policies Implementation 1. Cash Compensation (i) Comprehensive compensation standard for garden plots is 47,034 yuan/mu for Leju and Sayu towns, 32,778 yuan/mu for Dazhaizi and Sujia towns, and 35,212 yuan/mu for Longshu, Shuimo, and Xinjie 1) The comprehensive compensation will be towns; disbursed by the Zhaotong Finance Bureau to the Zhaotong Project Management Office; and (ii) Comprehensive compensation standard for then, to affected township governments or LA farmland is 45,292 yuan/mu for Leju and Sayu towns, center; and then, the township governments or 31,564 yuan/mu for Dazhaizi and Sujia towns, and LA center will disburse in full to the AHs. 33,908 yuan/mu for Longshu, Shuimo, and Xinjie towns; and 2) Based on the LA, the village collective will 743.38 mu, 1. Rural discuss and determine the APs who can be including farmland collectives (iii) Comprehensive compensation standard for included into endowment security system. After Permanent 530.77 mu, garden who own the 7 towns, 23 forestland is 7,500 yuan/mu for timber, and 4,500 review and disclosure, the county land resource Land plot 57.85 mu, land; and villages, 108 yuan/mu for shrubs. bureau and social security bureau will confirm Acquisition forestland 115.57 2. Affected village groups, and handle the procedures. The basic (LA) of Rural mu, grassland 2. Livelihood Restoration Measures households 1,257 AHs, and endowment security fund will be borne by the Collective 27.41 mu, industrial (AHs) who 4,386 APs Cash Compensation will be provided for villages and APs, the collective and the local government in Land and mining land possess the households (HHs) with minor LA impacts. In addition to certain proportions, its one-time payment for a 10.57 mu, and rural use right of the cash compensation, livelihood and income restoration period of 15 years, 60% from the individual and roads 1.22 mu land programs will be provided with priority to villages and collective, and 40% from government subsidy. HHs severely affected by the LA, mainly including the following: 3) The Zhaotong Project Management Office will organize technical and skill training for the APs (i) Improve agricultural production capacity and skill with support of poverty alleviation office, through technical training; agriculture committee, employment and security (ii) Increase non-farm work and employment bureau, and the All-China Women’s Federation opportunity through technical training; as well as the project township governments. (iii) Provide jobs priority in the project construction and operation; and (iv) Provide endowment insurance.

1. Rural 1) Young crops compensation will be paid to the Temporary 4,828.06 mu, 7 towns, 27 1. Young crops compensation standard for garden plots collectives AHs or affected collectives directly; and Land including farmland villages, 3,206 is 3,484 yuan/mu for Leju and Sayu towns, 2,428 who own the Occupation and/or garden plots AHs, 13,774 APs yuan/mu for Dazhaizi and Sujia towns, and 2,608 land; and 2) Land reclamation fee will be paid to 3,829.02 mu, and yuan/mu for Longshu, Shuimo, and Xinjie towns for 1- contractors who are responsible for the land

P 65 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Entitled Number of Persons/ Affected Persons Impact Impact Scope Collective (APs) Compensation Standards and Restoration Policies Implementation forestland 999.04 2. AHs who year occupation. It will be double if occupation for 2 reclamation. mu have the use years; right of the land 2. Young crops compensation standard for farmland is 1,742 yuan/mu for Leju and Sayu towns, 1,214 yuan/mu for Dazhaizi and Sujia towns, and 1,304 yuan/mu for Longshu, Shuimo, and Xinjie towns for 1- year occupation. It will be double if occupation for 2 years; and 3. After the land occupation period is ended, the project implementing unit will be responsible for land reclamation, land reclamation fee is 5,502.50 yuan/mu.

1) 32,604 yuan/mu of the LA compensation will Two village be paid to affected village committees and/or Comprehensive compensation is 80,000 yuan/mu, committees 2 entities and 1 the AHs directly, who have contract right of the 10.57 mu of stone including the LA compensation of 32,604 yuan/mu; and Enterprise and the owner person (the land; and mining land cost of land leveling and other related to the business of the owner) loss of 47,396 yuan/mu. 2) 47,396 yuan/mu for renting the land, land enterprise leveling, and all cost related to business loss will be paid to the business owner directly.

All APs whose Property Compensation standards for ground attachments, such Ground General land to be The compensation will be paid to the property owner and as trees, electricity pole, wall, etc., are listed in Table 5- Attachments attachments acquired with owners directly. farmers 6 in details. attachments on it

The fee will be paid by the land users (implementing agencies) who acquire farmland The persons to and garden plot permanently to the endowment Part of the APs will be included in 20,000 yuan/mu (farmland and garden plot) according insurance fund. Overall utilization arrangement Basic enjoy the basic endowment to implementation of the Trial Measures for Basic will be made by the social security agency; the Endowment endowment insurance will APs Endowment Security of the Land-Expropriated Farmers list of the APs will be confirmed by the social Insurance insurance by the be determined in Yunnan Province security agency, township governments, and project. by the village village committee meetings. After disclosure, the collective endowment will be disbursed to accounts of eligible APs.

10 AHs with land 1. Cash Compensation (see impact of Permanent LA of Support to AHs who own 61 APs from 12 The same as impact of the Permanent LA of loss in 0.5%–5.0%; Rural Collective Land above); and vulnerable the use right of HHs Rural Collective Land above 2 AHs with land loss 2. Livelihood Restoration Measures:

P 66 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Entitled Number of Persons/ Affected Persons Impact Impact Scope Collective (APs) Compensation Standards and Restoration Policies Implementation groups in 32%–36% the land (i) continue enjoying subsidies of the Minimum Living Guarantee System or target rural poverty; (ii) provide agricultural planting skill training and technical training to enhance their employment capacity; (iii) provide public welfare jobs in local towns; (iv) promote market-oriented employment within nearby area through government employment assistance programs; and (v) Provide jobs priority in the project construction and operation.

P 67 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6. Livelihood Restoration Program

6.1. Cash Compensation for Households with Minor Land Acquisition Impacts 108. The slightly affected village groups and AHs (with less than 10% loss of HH income) will be subject to cash compensation in strict conformity with the applicable regulations and compensation policies in this RP. 109. The project will provide cash compensation to affected villager groups and AHs, strictly following the applicable regulations and compensation policies in the RP. The specific standards are shown in table 5-1. 110. The allocation plan of land compensation will be determined through a meeting organized by the village committees based on the full consultation and discussions among villager representatives. The allocation plan will be implemented after it is approved and disclosed by the town government. According to the consultation with village group cadres, they all expect that the land compensation for contracted land will be paid directly to the AHs in principle, without land adjustment in the village. However, some villager groups can discuss the collective retention percentages of the LA compensation based on the democratic procedure and traditional practices in these villages; and the retention percentage will not be more than 10%. For non-contracted land, the LA and young crop compensation is paid directly to the village collective and will be used for public infrastructure and/or welfare of all the villagers. 111. After receiving cash compensation following the aforementioned allocation plan, the AHs by the LA will carry out various livelihood restoration activities with the assistance of local government departments. 112. The AHs suffering minor LA impacts will continue farming on their remaining land; and use land compensation to carry out income-generating activities, such as small business, running transport, etc. As the land compensation is based on full replacement price, income of these AHs with minor LA impacts can be easily restored after land compensation. 6.2. Income Restoration Program for Households Severely Affected by the Land Acquisition 113. For the severely AHs (with more than 10% loss of HH income, 91 AHs with 318 APs identified, see Table 2-9), additional measures such as agricultural development, skills training, non-agricultural employment, and social security will be provided, in addition to cash compensation for the LA. All these measures are based on the integration between the existing livelihood development strategies of local governments and the measures provided by the project. 114. The following livelihood and income restoration measures are developed mainly targeting the severely affected villages and AHs, but all affected villager groups and AHs are also eligible to participate and benefit from these measures.

P 68 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6.2.1. Agricultural Support Measures 115. According to the site survey and interviews with village cadres, it is common to see the local people working outside; and the income of from migrant working takes up a high proportion of total family income. The Zhaotong Municipal Government (ZMG) is encouraging rural migrant workers to return home to start business; and will guide, encourage, and support returned migrant workers to start businesses, including agricultural products processing, rural and folk handicraft making, rural specialty catering, rural tourism, housekeeping and elderly care; and promote establishment of all kinds of agricultural specialized cooperatives, social undertakings, and self- employment. In the process of undertaking industrial transfer, the ZMG is encouraging returned migrant workers to engage in technology innovation, integrated resources utilization, labor- intensive agricultural by-products processing, exports, and modern service industries. 116. The ZMG provides assistance (loan support, tax exemptions, entrepreneurial services and subsidy) and small loans for those rural migrant workers who engage in local characteristics industry, agricultural technology, energy-saving and emission reduction, green economy, circular economy, modern service industry, and high-technology industries. 117. According to the survey, most farmers wish to learn planting techniques and skills which will help them improve yield of agricultural products (if they plant on their own); and give them more chance in getting part-time jobs, and increase income. 118. Based on the field survey and livelihood demand analysis of the affected villages and assessment of the main livelihoods and possible demands for livelihood development, a livelihood restoration and development plan has been developed for the APs in the four villages that have relevant significant impacts due to the LAR, as presented in Table 6-1.

P 69 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 6-1: Livelihood Restoration Plan of the Significantly Affected Villages Agricultural Non-Agricultural Non- Agricultural Agricultural Income Support to be Sources of Town Proportion Source Remarks Provided Proportion Income Remarks Support to be Provided Technical training: Agricultural Local housekeeping services, technology Mainly relying on employment: construction, social security Potatoes, training, orchard Work locally or Xinhe Village 41% selling some potatoes 59% housekeeping training, skills training, apples management, outside and apples for income. services and employment training, more guidance construction. employment guidance and on site. support Corn is generally eaten Technical training: Agricultural by domestic animals Local housekeeping services, technology and then sell live employment: construction, social security Apples, corn, training, orchard Work locally or Yufei Village 56% animals or meat, mainly 44% housekeeping training, skills training, and potatoes management, outside relying on selling some services and employment training, more guidance potatoes and apples for construction. employment guidance and on site. income. support Corn is generally eaten Technical training: Agricultural by domestic animals Local housekeeping services, technology and then sell live employment: construction, social security Potatoes, training, orchard Work locally or Heilu Village 29% animals or meat, mainly 71% housekeeping training, skills training, corn management, outside relying on selling some services and employment training, more guidance potatoes and apples for construction. employment guidance and on site. income. support Corn is generally eaten Technical training: by domestic animals Local housekeeping services, and then sell live Agricultural employment: construction, social security Zhaobi Potatoes, Work locally or 46% animals or meat, mainly technology 54% housekeeping training, skills training, Village corn outside relying on selling some training services and employment training, potatoes and apples for construction. employment guidance and income. support

P 70 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

119. In the promotion of low-pollution agriculture component of the project, technical methods related to agricultural planting structure and organic and green fertilizers will be introduced to farmers in the project area. The farmers will receive detail technical and skill training to master the planting methods. The purpose of the component is to reduce the NPS pollution. However, by introducing cash crops such as Chinese herbs and improvement of agricultural planting structure, the farmers’ income is expected to increase after implementation of the project. The training will be provided to affected farmers with a priority to assist them in livelihood restoration in the project implementation. 120. In response to the APs’ needs, agricultural support and trainings are provided every year by relevant government agencies. According to the agricultural commission, their technical personnel stay over 220 days in the field to help the farmers improve their agricultural techniques and skills and increase their income. Various trainings on agricultural techniques and skills are being provided for farmers. As shown in Table 6-2, three types of trainings were conducted during 2018–2019, including support from the Poverty Alleviation and Development Office, focusing on registered poor population; and trainings provided by the agricultural commission for all farmers. Table 6-2 also indicated training to be conducted in the project area from 2020 to 2025 based on interviews with relevant agencies. The project involves 12 poor HHs and 61 persons. The trainings will help them improve their production skills and increase income. Table 6-2: Trainings on Agricultural Techniques in the Project Area Number of Participants from Training Project Areas Yufei Heilu Zhaobi Xinhe Training Target Agency Content Year Village Village Village Village Hours Population Completed Poverty Practical in 105 163 108 112 29 Affected Alleviation and agricultural 2018/2019 poor and Development techniques (3 Planned in 50 80 50 55 low-income 15 each Office days) 2020 to each each each each households year 2025 year year year year Completed New Type in 50 62 67 19 8 Agricultural 2018/2019 Affected Techniques Planned in 60 100 60 60 households (15 days 25 each 2020 to each each each each Agricultural each year) year 2025 year year year year Commission Affected Agricultural Planned in 60 100 60 60 farmers 25 each Techniques 2020 to each each each each (planting and year Training 2025 year year year year animal husbandry) 121. In addition to regular trainings, the individuals, village collective, and township governments can request the agricultural commission to provide special trainings (if requirements are met in terms of training scale). All APs of the project are covered by the above agricultural support measures.

P 71 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6.2.2. Employment Assistance 122. All APs are encouraged to participate in the employment assistance program of local governments to restore and improve their livelihoods. 123. According to the Human Resources and Social Security Bureaus of Zhaoyang District and Ludian County, the employment opportunities can be provided for the APs from the following channels: (1) public service, 87 jobs; (2) temporary employment during project construction, 200 jobs; (3) long-term jobs during project operation, 200 jobs for operation and maintenance; (4) social employment opportunities that could prioritize the employment of the 710 APs. The above measures will provide 1,197 jobs (including temporary employment for 200 persons during construction) during the project implementation from 2020 to 2025.The demands for the AHs’ employment in the project area can be met from those employment opportunities above.

(1) Public Service Jobs

124. Public service jobs can be divided into full-time public service jobs and part-time jobs: full- time jobs require 8 hours of work per day, employment contract will be signed with the employer, and social insurance will be taken out for employees; while for part-time jobs, agreement will be signed with the employer who will provide employment injury insurance, not more than 4 working hours per day, wage is 15 yuan/hour, and the wage of each person for 1 year will be about 5,000 yuan. 125. Full-time public service jobs are more stable with more comprehensive welfare coverage, but there are only a small number of jobs; while the part-time jobs are more flexible and in huge demand.

126. In terms of types of work, full-time jobs include the community positions (handle disputes, publicity on water quality protection policies of the project, women assistance information, publish recruitment notice), greening and cleaning, and maintenance and management of completed facilities. Part-time jobs include cleaning (40%), road maintenance (30%), patrol (night patrol for community, 20%), forest ranger (5%), and others (5%).

127. According to relevant agencies, the employment opportunities provided are different for each year. Based on the situations during 2018–2019, the public service jobs that can be applied for in the project area are listed in Table 6-3 for significantly affected villages. After the start of the LAR, the RP personnel will coordinate with the employment and social security organizations of the townships and villages to give priority to the APs for those employment opportunities. Table 6-3: Public Service Jobs in Significantly Affected Villages Xinhe Yufei Heilu Zhaobi Types Job Year Village Village Village Village Total

✓ Traffic management 2018/ Full-time 9 9 30 9 57 assistant 2019

P 72 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Xinhe Yufei Heilu Zhaobi Types Job Year Village Village Village Village Total ✓ Community conflicts and disputes administrator ✓ Information manager 2020 to 6 each 4 each 8 each 4 each (employment policy, 110 2025 year year year year women’s support) ✓ Greening and cleaning staff ✓ Security patrol ✓ Sweeping and cleaning 2018/ 100 105 105 115 425 ✓ Road maintenance 2019 ✓ Patrol ✓ Forest Ranger 2020 to 25 each 25 each 25 each 30 each Part-time 525 2025 year year year year ✓ Others

Source: Zhaotong Municipal Employment and Social Security Bureau.

(2) Temporary Employment during Project Construction

128. According to the construction contents and estimated bill of quantities during the FSR stage, 200 temporary jobs will be created every year during construction, including 20 technical jobs with monthly salary of 3,000 yuan–5,000 yuan; and 180 non-technical jobs, with a wage of 200 yuan/day or 2,000 yuan/month–3,000 yuan/month; while 120 permanent jobs will be created during operation, including 40 technical jobs with monthly salary of 3,000 yuan–5,000 yuan; and 80 non-technical jobs with monthly salary of 2,000 yuan–3,000 yuan. The APs will be given priority for employment. Table 6-4: Annual Employment Opportunities Created by the Project Period Temporary Jobs Number of Jobs Wages (yuan/month) Construction period Technical 20 3,000–5,000 (temporary) Non-technical 180 2,000–3,000 Operation period Technical 40 3,000–5,000 (permanent) Non-technical 80 2,000–3,000 (3) Social Employment Opportunities

129. According to the Zhaotong Municipal Human Resources and Social Security Bureau, the APs can also get employed through regular channels. Employment statistics in 2018/2019 and projections for 2020–2024 are provided in Table 6-5.

P 73 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Table 6-5: Employment Statistics in 2018/2019 and Projections for 2020–2024 Number of Positions Number of Positions Priority to APs Other 7 Private For signifi- For other Project Compa Sub- cant APs APs Subtotal Year Position Zhaoyang Ludian Towns nies total (position) (position) (position) 2018/2019 Unskilled 321 298 * 224 843 * * *

2020 Unskilled 450 270 33 180 933 80 50 130 Unskilled 315 189 23 126 653 80 50 130 Manage- 2021 ment and maintenance 75 45 18 30 168 15 15 Unskilled 283 170 20 113 586 80 50 130 E Manage- s 2022 ment and t mainte- i nance 67 40 16 27 150 15 15 m a Unskilled 254 153 18 101 526 80 50 130 t Manage- e 2023 ment and d maintenance 60 36 14 24 134 15 15 Unskilled 228 137 16 90 471 80 50 130 Manage- 2024 ment and maintenance 54 32 12 21 119 15 15 Total 2,107 1,370 170 936 4,583 460 250 710 Note: According to the Bureau, these positions will prioritize the APs based on the infrastructure development projects in the areas. Source: Zhaotong Municipal Human Resources and Social Security Bureau. (4) Assisted Self-Development

130. The human resources and social security stations will be the platform to collect the needs of the APs in agricultural technical guidance, technical training, financial assistance, and employment. The collected information will be submitted to the township human resources and social security stations who will assess the scale, necessity, and feasibility; and report to the district and/or county agriculture bureau, human resources and social security bureau, and the Poverty Alleviation and Development Office; and then, these bureaus and office will provide policy publicity, technical guidance, and relevant trainings in the townships depending on their budgets, resources, and schedule.

6.2.3. Endowment Insurance 131. The endowment security fund from the project PLA is estimated at 11.7724 million yuan. The endowment security fund will be used as the government subsidy to individual pension account. The APs who can enjoy the endowment insurance depends on (i) if their remaining family’s farmland is less than 0.3 mu per person, and (ii) they are more than 16 years old. The actual number of APs who are eligible for the endowment insurance will be confirmed during the

P 74 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

RP update. The persons to be included will be nominated by the village group meeting and disclosed. 132. For eligible APs for the endowment insurance, they can pay their part of the endowment insurance to their individual account; and then, the government will pay 1,000 yuan/year for the individual account. In addition, the government will provide subsidy for endowment insurance as the same to urban–rural residents. For example, if an AP selects to pay 500 yuan/year to his/her individual endowment insurance account, the government can pay 1,000 yuan/year of special subsidy for the LEFs. In addition, the government can provide subsidy of 75 yuan/year. In such way, individual account will have 1,575 yuan/year; and 23,625 yuan in 15 years. When the AP gets 60 years old, he/she can receive the pension of about 273 yuan per month (calculated as 23,625 yuan/139 + 103 yuan). 133. For the APs who are not eligible for endowment insurance for the LEFs, they can participate in the endowment insurance for urban–rural residents; but they cannot receive 1,000 yuan/year of special subsidy from the government for the APs whose farmland area is less than 0.3 mu per person in a family. For example, if the AP selects to pay 500 yuan/year to his/her individual endowment insurance account, his/her individual account will have 575 yuan/year; and 8,625 yuan in 15 years. When the AP gets 60 years old, he/she can receive the pension of about 165.05 yuan per month (calculated as 8,625 yuan/139 + 103 yuan). Therefore, the LEFs whose farmland area is less than 0.3 mu per person in a family can enjoy more pension due to the special subsidy.

6.2.4. Accessibility of Trainings and Employment Support 134. Considering the accessibility of training and employment information by the APs, communications were made with relevant agencies; and the agencies have agreed to allocate resources to conduct policy publicity, training, and agricultural technical guidance in the affected villages. After the start of the LAR, the dedicated resettlement officers of the PIUs will work closely with the human resources and social security authority to provide timely information for the APs on trainings and employment; and prioritize the APs for employment and trainings. 135. More detailed training arrangements are summarized in Table 6-6.

P 75 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 6-6: Training and Employment Support Program Publicity on Dissemination and On-Site Township Supporting Explanation of Technical Training Agency Activities Policies Training Information Guidance Courses Remarks The technical personnel at the grassroot level and from the district are actually working 200 days per times 3 3 6 3 year in the villages; and support could be arranged Agricultural at any time, when needed. Commission 2019.12 2020.05 To be adjusted To be adjusted Location and Location is mainly at county base, and some 2020.03 2020.09 according to according to time of training training may be adjusted according to demands of 2020.11 2021.06 demand demand the AHs. Number of APs 240 300 150 150 The township and village human resources and times 6 6 social security organizations are most aware of the needs, and guidance to them will be strengthened. According to the annual training plan prepared, Human Resources provide notice to the AHs in advance; and the AHs and Social Security Location and Once per year Once per year in can select training courses accordingly. Bureau time of training in 2019–2024 2019–2024 Prepare training courses according to demands of the AHs. Location is based on the AHs requirements. Number of APs 360 400 It is important for the persons to make the applications themselves. Without the application, times 6 6 6 many poor households are not included in the Poverty Alleviation registered poor. Therefore. more guidance will be and Development provided on this. Office Location and Once per year Once per year in Once per year At pilot villages or adjusted according to demand of

time of training in 2019–2024 2019–2024 in 2019–2024 the AHs and construction progress of the project. Number of APs 400 400 400 times 6 6 On township marketing days. Women’s Location and Once per year Once per year in At pilot villages or adjusted according to demand of

Federation time of training in 2019–2024 2019–2024 the AHs and construction progress of the project. Number of APs 200 200 AH = affected household, AP = affected person. Sources: Zhaotong Municipal Agricultural Commission, Human Resources and Social Security Bureau, Poverty Alleviation and Development Office, and Women’s Federation.

P 76 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6.3. Restoration Program for Temporary Land Occupation

136. For the TLO, the PIU will make compensations for occupation (one-year compensation for one-year occupation); and the compensation for young crops, forest, and attachments will be made in one time. Generally, the occupation will not exceed 1 year. In case of occupation extension, the compensation will be made from the second year based on the AAOV until reclamation.

6.4. Compensation and/or Restoration Program for Affected Enterprise 137. The land to be acquired is less than 3% of the factory’s total land use, so it will not affect the factory’s normal operation; and the stone factory does not need to be relocated. After negotiation with the enterprise owner, it is agreed the site leveled by the factory will be used for the project. The PIU will compensate for the factory’s land transfer cost and land leveling cost and disburse land compensation to affected villages who have the land ownership.

6.5. Special Assistance Program for the Affected Vulnerable Group

138. The LAR will affect vulnerable people of 12 HHs with 61 persons. Seven AHs are families with the MLG and are enjoying the annual MLG subsidy of 4,200 yuan per person (the updated subsidy from 1 July 2019), while the other five AHs are the target rural poverty and can receive the annual poverty subsidy of 3,750 per person. They will get rid of poverty by end of 2020 as the government poverty-relief planning or enjoy the MLG subsidy. The AHs will be prioritized for conversion to urban residence according to the regulation on the LEFs, technical and skill training and employment opportunities. All the 12 vulnerable HHs will be assisted to enjoy the local support polices after the LAR. (1) The Ludian PMO, agriculture bureau, and human resources and social security bureau will work together to provide agricultural planting skill training and technical training to enhance their employment capacity; (2) The Ludian PMO and the township governments will help the vulnerable HHs to get public welfare jobs in local towns; (3) The Ludian PMO and the village cadres will prioritize the vulnerable groups for employment opportunities created by the project; and (4) The Ludian PMO and concerned departments will promote affected vulnerable people’s market-oriented employment within nearby area through government employment assistance programs. 139. According to such arrangement, the vulnerable people who are included into registered poor HHs can get proper rehabilitation support; and the livelihood can be fully restored and improved. During project implementation, the PMO and local governments will give special attention to the vulnerable groups; and all kinds of restoration measures will prioritize them (such as employment, trainings, and other assistance).

P 77 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6.6. Women’s Development Measures

140. To protect the women’s rights and interests during project implementation, the following measures will be taken:

(1) Agricultural Skills Development based on Women’s Needs

141. The project will meet the needs of women for technical and skill training and local employment. The project resettlement officer will collaborate with township human resources and social security center to collect women’s needs and prioritize them for relevant employment opportunities.

(2) Small Loans for Women

142. According to the Zhaotong Women’s Federation, if the local women want to start business on her own or with other people, the Women’s Federation will provide financial support. Women can apply for small loans through the Women’s Federation to start business such as clothing shop, handicraft, and catering. The loan amount is up to 100,000 yuan. The Women’s Federation can also provide guidance for starting a business. 143. In addition to the above support, the livelihood restoration and improvement measures in the RP are also applicable to women. More women development measures are included in the gender action plan of the project.

6.7. Measures for Ethnic Minorities 144. The affected EM HHs will be compensated for the LAR as the same as the Han people. The Zhaotong PMO and relevant local governments will give them priority in project employment opportunities and skills trainings, and fully respect their culture characteristics during livelihood restoration on basis of further consultations during the RP update and implementation.

P 78 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

7. Information Disclosure, Public Participation, and Grievance Redress

145. According to the PRC’s policies and regulations as well as ADB’s involuntary resettlement policy in the SPS (2009), it is important to have public participation and consultation to protect the lawful rights and interests of the APs and enterprise, reduce complaints and disputes, and understand the resettlement objectives properly by developing sound policies and implementation rules on resettlement, preparing an effective RP, and organizing implementation properly. 7.1. Methods and Measures for Information Disclosure and Public Participation 146. During the survey, discussions were conducted with local governments, village cadres, and the AP representatives on the necessity, benefits, and impacts of the project; principles for compensation; and resettlement progress. During the RP preparation, the resettlement planning staff discussed with the project district, county, and town and/or village leaders; and listened to their comments, requirements, and issues. 147. During project preparation, extensive public participation activities were conducted in the form of meeting, the FGD, interview, and the HH survey, including 15 interviews with the PIU and government agencies; 16 village groups’ FGDs; and the HH sampling survey with 469 HHs. 148. Based on the effectiveness and feasibility, public participation activities were conducted in the following manners:

(1) Focus Group Discussions

149. Conducted the FGDs in the affected villages with the APs which also include representatives from the elderly and women.

(2) Structural Questionnaire Survey

150. At the preparation and design stages of the project, a structured questionnaire was designed and administered to understand the attitudes, willingness, and expectation of the resettlement of the APs.

(3) Discussion Meeting and Key Informant Interviews

151. Depending on public participation activities, discussion meetings and personal interviews were organized to collect relevant information as well. 152. Public participation and consultation activities were conducted in the form of discussion meeting and sampling willingness survey to explain the purpose, scope, and importance of the project; and discuss the possible RP with the AP representatives. Through the survey, public opinions were well considered. 153. At the resettlement implementation stage, the above forms will still be used to collect more resettlement information; further investigate expectations of the APs; and further improve resettlement programs. In addition, the APs may reflect grievances, comments, and suggestions

P 79 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan to village committees, resettlement agencies, and the M&E agency, which will be handled according to the established procedures. 154. To ensure that the APs and the affected local governments are fully aware of the RP, compensation standards and resettlement programs, the State laws and regulations on resettlement, and ADB’s policy on involuntary resettlement, public participation (in discussion meeting, etc.) of the AHs has been conducted and local news media (e.g., website) is used from the beginning of project preparation. The resettlement information will also be disclosed to the residents of the affected villages and/or communities so that they know the information on the LA, land compensation rates, and fund uses. This will increase the transparency of the resettlement work, win the support of the APs for the resettlement, and ensure the successful completion of the resettlement. 7.2. Public Participation Activities at the Preparation Stage 155. At the preparation stage of the RP, extensive public participation and consultation activities were held to provide a basis for the project design and implementation: (1) Community meetings. Before the fieldwork, the background information of the project was communicated to community residents, including the project’s scope, necessity, potential impacts, and proposed compensation and resettlement programs involving representatives of the APs, the women, the PIUs, the township governments, and village cadres. (2) Focus group discussions with women. The FGDs with women were conducted in the affected villages to learn about their views and willingness. The female participants expected that (i) elder people can participate in social security program and receive pensions on time after the LA, (ii) young people can have adequate employment opportunities after the LA, and (iii) it is better for young men and women to work near home so that they can also take care of the family. Females also expected more skills training to increase the employment capability and opportunities of family members. (3) Focus group discussions with vulnerable groups. During the FGDs with vulnerable groups (poor AHs or HHs with sick members), they expected that more subsistence allowances can be provided after the LA; and more family members can be covered by the minimum living allowance policy. Township officials explained that the minimum living allowance is increased year by year, along with the socioeconomic development; and will cover all the eligible persons in line with related regulations and policies. In addition, they also expressed their interests and willingness on some simple work among local public service jobs which are suitable for their ability.

P 80 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Figure 7-1 (1) and (2): Project Information Disclosure in the Longxiang and Guzhai Communities of Longshu Town (April 19, 2019)

Figure 7-2: Posting of Project Information in Shuimo Figure 7-3: Project Information Disclosure Meeting Village of Shuimo Town (April 15, 2019) in Jiufang Village of Xinjie Town (April 20, 2019) (4) Discussion with the project implementing units. To understand the project background, scale and/or scope, and impacts.

Figure 7-4: Project Progress Discussion and Schedule Arrangement in the Yudong Reservior Management Bureau (Project Management Office), (May 15, 2019) (5) Sample household questionnaire survey. This survey aimed to learn local socioeconomic profile and the APs’ attitudes to and opinions on the project. The survey covered 469 HHs. The information collected in the survey was taken as an important basis for the RP preparation.

P 81 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Figure 7-5: Inception Meeting with the Project Implementing Units and the Local Governments for Household Survey of the Resettlement Plan (May 15, 2019)

Figure 7-6: Household Surveys (Longxiang Community of Longshu Town and Zhangjiahe Village of Xinjie Town)

Figure 7-7: Household Survey (Jule Village of Leju Town)

(6) Discussion with the village cadres. The FGDs with the village cadres were held to understand local socioeconomic profile, expectations for the project, comments and suggestions on the LA, compensation and resettlement, and exchange relevant experience.

P 82 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(7) Government interviews. The survey team visited the Zhaotong Development and Reform Commission, Natural Resources Bureau, Employment Bureau, Human Resources and Social Security Bureau, and Statistics Bureau to collect project-related data, information, and the LAR policies; and their opinions and suggestions on project implementation. Table 7-1: Public Participation Activities during Project Preparation Measures Taken in Number of Project Women Topics/ Design Content Form Date Participants Participants Objective Concerns and/or RP Confirmed the latest Project 14 cadres and applicable objectives, 46 AP Communicating compensation April compensation Community representatives background policies and meeting 17–19, 22 policies, meetings from the 10 information of standards, 2019 procedures, affected the project developed and villages public transparency consultation plan Optimized 5 from Understand design to Zhaotong project avoid and/or April PMO; and background, minimize the 17–19, officials from Discussion project scale, LAR impacts, and the Zhaotong Scale of land with the meeting 2 project impact, developed the May DRC, LRB, acquisition PIUs local land household 15, WAB, and the policy, (HH) survey 2019 HR and Social resettlement and Security measures, etc. consultation Bureau plan Developed livelihood restoration Compensation measures Local policies, based on socioeconomic procedures, socioeconomic HH June Women profile, and characteristics questionnaire sampling 10–15 APs accounted livelihoods, transparency; of affected survey survey 2019 for 50.2% comments on expressed villages and the LAR, interests in HHs; issues social integrated insurance their intentions in the resettlement plan Women’s Provide sound Project will opinions and compensation provide June Female Discussion About 50 resettlement and livelihood adequate and FGDs 10–15, representative with women women intentions on restoration fair skills 2019 from 5 villages the LAR measures, training and elderly women employment

P 83 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Measures Taken in Number of Project Women Topics/ Design Content Form Date Participants Participants Objective Concerns and/or RP care about opportunities social security to women; program, social security and young program will women being be provided to concerned elderly women about finding with priorities jobs near home Priority to be provided to vulnerable groups where public service positions are available; and local Increase government Discussion subsistence will increase June Poor HHs or Opinions and with allowances, minimum living FGDs 10–15, HHs with 6 HHs expectation on vulnerable and provide allowance 2019 disableds the LAR groups suitable job year by year opportunities along with the socioeconomic development, and will cover all the eligible persons in line with related regulations and policies Collect project- 10 persons related data, Welcome the Optimized from Zhaotong information, project; and design to DRC, LRB, and the LAR land avoid the LAR, WAB, Bureau policies; August acquisition are and Government of Agriculture, training Interview 6–7 12 fragmented, strengthen interview HR and Social programs; 2019 which will institutional Security employment bring arrangement Bureau, programs; and difficulties in and capacity Women’s possible coordination building Federation support for the project

P 84 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

7.3. Public Participation Activities for Next Stages

156. Even though several rounds of participations have been conducted already, the IAs will continue public participation and consultation during next steps and project implementation. A public participation plan for the next stage is shown in Table 7-2. Table 7-2: Public Participation Plan during Implementation Purpose Form Timeline Concerned Agencies Participants Topic Disclosure of the Village bulletin Ludian County and Dec All affected resettlement plan board, village Zhaoyang District Natural RP disclosure 2019 persons (APs) (RP) meeting Resources Bureaus, township governments Resettlement Ludian County and Distributed to Dec information booklet Zhaoyang District Natural All APs RIB distribution the APs 2019 (RIB) distribution Resources Bureaus, township governments Announcement Ludian County and of the LA area, Village bulletin Dec Land acquisition Zhaoyang District Natural compensation board, village 2019 to All APs (LA) announcement Resources Bureaus, standard and meeting Jul 2020 township governments resettlement modes, etc.

LA compensation Ludian County and Village bulletin Dec Compensation and resettlement Zhaoyang District Natural board, village 2019 to fees and program Resources Bureaus, All APs meeting Jul 2020 payment announcement township governments Discuss final list of persons List of persons for Ludian County and to convert to endowment Village Dec Zhaoyang District Natural non-agriculture security, allocation meetings 2019 to Resources Bureaus, All APs Hukou and of land (many times) Jul 2020 township governments utilization of compensation fee compensation fee

Income Village 2020- restoration; Public participation PIUs, Townships Office, meetings, project compensation during project External Monitoring All APs interviews, completi for temporary construction Agency etc. on impacts during construction

7.4. Women’s Participation

157. From the beginning of the Project, the IAs and the local governments have given special attention to the role of women in the RP preparation; and cared about their personal and household needs. 158. In the project area, women enjoy the same rights and status as men; and play a crucial role in economic activities and housework, especially in rural areas where most men and young women work outside and a few women stay at home for taking care of elders, children, and home affairs. Therefore, in the project area, women even show greater enthusiasm about the project than men. They not only participate actively in all stages of resettlement planning, but also play

P 85 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan an outstanding role in the consultation about resettlement impacts and mitigation measures. All women support the Project. 159. During the survey, the women representatives of all affected villages were invited to ensure communication with the affected women. At the discussion meetings of all villages, over 45% of attendees were women. They not only showed great support for the Project; but were also concerned about the accuracy of physical measurement results, the rationality of compensation rates, and if compensation could be available timely. At the resettlement planning stage, the design institute invited women representatives to collect their comments, requirements, and issues about production resettlement. The national laws and regulations guaranteed that women have equal rights and interests in the LA. Husband and wife enjoy together all household property after marriage, regardless of who contributed to the property and when. 160. Women also expressed their desire to participate in endowment insurance; so that after reaching certain age, their families will receive a relatively stable income. For young women, they specifically suggested that if the land would be acquired, they would like to attend skills training; and obtain employment. Some women also expressed the hope to get some job opportunities during the implementation of the project. They wish they, their husbands, or other family members could get local employment opportunities. 161. More measures on women’s participation and consultation are in the gender action plan of the Project.

7.5. Grievance Redress Mechanism

162. During the resettlement implementation, the following measures shall be taken to reduce grievances and appeals: (i) the IAs and the local governments will conduct extensive publicity of the resettlement policies in such forms as meeting, discussion, and door-to-door survey; so that the APs are informed of the resettlement policies and principles, and compensation rates; (ii) disclose information on the LA and losses, resettlement agreements, compensation fee disbursement, and the resettlement agencies through mass media and bulletin boards to accept the public supervision; and (iii) strengthen communication and consultation with the APs. The IAs and the local governments will listen to the APs’ comments and requirements carefully; conduct honest communication and consultation with them; help them solve difficulties and problems encountered during resettlement; and meet their reasonable requirements, where possible. 163. During the RP update and implementation, continuous attention will be paid to the participation of the APs and the affected enterprise; and an appeal mechanism will be established. If any AP is dissatisfied with any compensation arrangement or thinks that he/she is treated unfairly or unreasonably during the resettlement, he/she may seek a solution through the appropriate procedures.

7.5.1. Grievance Redress Procedures during Land Acquisition 164. To ensure that the APs have effective channels to file complaints on any issue associated with the LA and resettlement (LAR), a four-stage grievance redress mechanism (GRM) has been established during the preparation and for implementation of the RP:

P 86 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Stage 1: If the AP is dissatisfied with the resettlement, he/she may make oral or written complaint to the community and/or village committee; and in case of oral complaint, the community and/or village committee shall handle such complaint; and make written records. The community and/or village committee shall provide solution within 1 week; Stage 2: If the AP is dissatisfied with the resolution of Stage 1, he/she may file the complaint to township government orally or in writing. In case of an oral complaint, the township government should make a written record. Such complaint should be solved and provided with feedback within 2 weeks; Stage 3: If the AP is still dissatisfied with the resolution of Stage 2, he/she may file the complaint to the Zhaoyang District or Ludian County Land and/or Natural Resources Bureau or the Zhaoyang or Ludian PMO; and require for arbitration. The result shall be made within 2 weeks; and Stage 4: If the AP is still dissatisfied with the resolution of Stage 3, he/she may file the complaint to the Zhaotong City Land and/or Natural Resources Bureau and/or the Zhaotong PMO; and require for arbitration. The final result shall be made within 2 weeks. 165. The AP may appeal to a local court in accordance with the Administrative Procedure Law of the PRC as their alternative way of grievance redress at any time. 166. The APs may also complain about any aspects of resettlement, including compensation rates, etc. to the Zhaotong PMO, an external M&E agency. The APs can also submit complaints to ADB which will first be handled by the project team. If an AP is still not satisfied and believes he/she has been harmed due to non-compliance with the ADB policy, he/she may submit a complaint to ADB’s Accountability Mechanism.2 167. The above grievance channel has been discussed during the RP preparation and will be further notified to the APs while distributing the resettlement information booklet through meeting or otherwise, so that the APs are fully aware of their right of complaint.

7.5.2. Responsible Persons for Grievance Redress 168. All grievance redress procedures will remain valid throughout project implementation to ensure that the APs will have a way to address related issues. The above GRM will be disclosed to the APs through meetings and the resettlement information booklet so that the APs are fully aware of their rights to file complaints. Media will also be used to improve publicity. The contract information of the responsible persons for grievance redress is provided in Table 7-3. Table 7-3: Contact Persons of Relevant Agencies

Agency Full name Position Contact number Zhaotong Municpal Land/Natural 0870-2221057 Resources Bureau/Land Acquisition Office Office Finance Bureau Office 0870-2158483

2 For further information, see: http://www.adb.org/Accountability-Mechanism

P 87 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Agency Full name Position Contact number Zhaotong Municipal Development and 0870-2161857 Office Reform Commission Zhaotong Municipal Project Project focal 13648706065 Cui Yuanlei Management Office person Zhaotong Municipal Project 13051238215 Gao Feng Office staff Management Office Longshu Town of Ludian County Shen Jichao Town Chief 13887076566 Shuimo Town of Ludian County Jiang Kaimou Town Chief 13887090729 Xinjie Town of Ludian County Tang Yadong Town Chief 13708600218 Buchu Village Committee Zhou Yan Village secretary 13887068076 Yuba Village Committee Jiang Xianchao Village secretary 13887134211 Jule Village Committee Yan Jiashan Village secretary 13400834206 Xinhe Village Committee Cao Ping Village secretary 15925508088 Yufei Village Committee Wang Mingqi Village secretary 15925070922 Xinpeng Village Committee Song Wen Village secretary 15096848488 Huangnizhai Village Committee Kong Weiquan Village secretary 15198553789 Shuimo Village Committee Ding Shichang Village secretary 15808630619 Heilu Village Committee Zhu Qinghai Village secretary 15240888999 Tiechang Community Committee Wu Qixiang Village secretary 13408821588 Shanqiao Village Committee Lu Bin Village secretary 13638821800 Pingdiying Village Committee Zang Qinghong Village secretary 15987052098 Xinjie Community Committee Ye Bin Village secretary 13508705238 Jiufang Village Committee Fu Yangshu Village secretary 13649680789 Jintang Village Committee Niu Jiahong Village secretary 13330421109 Tangfang Village Committee Zhao Lianbi Village secretary 13887077858 Zhaobi Village Committee Ma Yonghu Village secretary 13887052385 Guzhai Village Committee Sun Jikun Village secretary 15126626268 Xinle Village Committee Ma Yongkang Village secretary 15925541959

P 88 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

8. Organization and Responsibilities

8.1. Organizational Structure 169. The LAR covers many aspects; and thus, requires assistance and cooperation of all relevant agencies. The PMOs, Land/Natural Resources Bureaus, the PIUs, township agencies, and relevant agencies will be involved in the LAR implementation. The affected township will assign 1–3 key officials to assist the LAR.

Figure 8-1: Organizational Chart

Executing Agency: Zhaotong City Government Zhaotong City Project Leading Group Zhaotong Project Management Office

External Implementing Agencies: Yudong Reservoir Water Monitoring Resources Protection Committee Office, Zhaoyang and District Government, and Ludian County Government. Evaluation Internal Monitoring and Evaluation

Affected Township Governments

Affected Villages, Villagers Groups

Owner of Ground Affected Persons Attachments

170. Agencies responsible for the LAR of the project are the following: (1) Zhaotong City Project Leading Group, Zhaotong City PMO (2) Yudong Reservoir Water Resources Protection Committee Office (YWPCO), Zhaoyang District PMO and Ludian County PMO (3) Land/Natural Resources Bureaus of Zhaotong City, Zhaoyang District, and Ludian County (4) Relevant LA offices of Sujia Town, Sayu Town, Leju Town, Shuimo Town, Xinjie Town, and Longshu Town (5) Teichang Community, Xinjie Community, Buchu Village, Yuba Village, Jule Village, Xinhe

P 89 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Village, Xinpeng Village, Huangnizhai Village, Shuimo Village, Heilu Village, Shanqiao Village, Pingdiying Village, Jiufang Village, Jintang Village, Tangfang Village, Zhaobi Village, Guzhai Village, Xinle Village, and affected village groups (6) External M&E agency

8.2. Institutional Responsibilities

171. Zhaotong City Project Leading Group is a high-level project leading group of the executing agency, the Zhaotong City People’s Government (ZCG); and responsible for guiding, coordinating, and supervising the project preparation and implementation, including implementation of the RP, as follows: (1) Establishing ADB’s PMO; (2) Organizing the project preparation and ADB’s loan application; (3) Coordinating, managing, supervising, and guiding the project implementation; (4) Reporting the project implementation progress to the ZCG and ADB; and (5) Coordinating to raise counterpart funds for the project. 172. Zhaotong City PMO is the coordination and management agency of the overall project; undertakes overall responsibility for management, planning, coordination, and supervision of the LAR of the project; and is responsible for the following: (1) Coordinating, managing, supervising, and providing service during project implementation; (2) Reporting the project progress to the ZCG and ADB; (3) Assisting in the RP preparation and update; (4) Coordinating the technical assistance, survey, and training; and (5) Coordinating the LAR implementation, monitoring, and reporting. 173. Yudong Reservoir Water Resources Protection Committee Office, Zhaoyang District Government, and Ludian County Government are three IAs of the Project; and responsible for management and implementation of the project components under their own management scope, and the LAR related to the components. Both the Zhaoyang District Government and the Ludian County Government have established their own PMO. 174. Zhaoyang District and Ludian County Project Management Offices. The Zhaoyang Disrict PMO and the Ludian County PMO are responsible for the following tasks, relating to the management, planning, coordination, and supervision of the LAR of subprojects in Zhaoyang and Ludian, respectively: (1) Coordinating, managing, supervising, and providing service during project implementation; (2) Promoting the LA implementation according to the construction progress plan; (3) Assisting the DMS and resettlement data statistics; (4) Assisting public participation and consultation, agreement signing, and compensation disbursement; and (5) Coordinating and monitoring livelihood restoration of the APs. 175. Land/Natural Resources Bureaus of Zhaotong City, Zhaoyang District, and Ludian County are mainly responsible for providing guidance on the LAR of the project, developing the

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LAR policies, and coordinating resettlement agencies of all levels, with their specific responsibilities as follows: (1) Coordinate works of relevant agencies during the RP preparation and implementation; (2) Make decisions for key land-related issues occurred during project construction and the LAR; (3) Implement the LAR in accordance with the RP approved by ADB; (4) Handle relevant LAR procedures; (5) Publicity on the LAR policies of the project; (6) Organize public participation activities; (7) Sign the LAR contract and/or agreement with the affected villages and the APs, and share records with the PIU and the PMO; (8) Implement livelihood restoration and resettlement programs. 176. Project town governments. Including Sujia Town, Sayu Town, Leju Town, Shuimo Town, Xinjie Town, and Longshu Town; and the responsibilities of the project township governments include the following: (1) Implement the LAR; (2) Address dispute to ensure smooth LAR implementation; (3) Address grievance and complaints during the LAR; and (4) Supervise payment of the LAR funds. 177. Affected villages and/or communities committees. including Teichang Community, Xinjie Community, Buchu Village, Yuba Village, Jule Village, Xinhe Village, Xinpeng Village, Huangnizhai Village, Shuimo Village, Heilu Village, Shanqiao Village, Pingdiying Village, Jiufang Village, Jintang Village, Tangfang Village, Zhaobi Village, Guzhai Village, and Xinle Village; and the main responsibilities of the village cadres include the following: (1) Participate in socioeconomic survey and project survey; (2) Organize public consultation, and disseminate the LAR policies; (3) Organize the implementation of agricultural and non-agricultural production restoration activities; (4) Assist to disburse the compensation and resettlement fund to the AHs; (5) Provide comments and suggestions to upper level relevant agencies; (6) Report resettlement implementation progress; (7) Redress the complaints and appeals received from the APs during the RP implementation, in line with their jurisdiction; and (8) Provide assistance to address any difficulties during the LAR. 178. Internal monitoring. The Zhaoyang District PMO and Ludian County PMO will be responsible for internal resettlement monitoring under the Zhaotong PMO. The responsibilities of the PMOs specifically on internal monitoring include the following: (1) Ensure the LAR are implemented in accordance with the RP in a timely manner; (2) Ensure protection of the rights and interests of the APs; (3) Coordinate the progress of the LAR implementation; and (4) With assistance of project management consultants, conduct monitoring according to the resettlement internal monitoring requirements of this RP; and reflect monitoring results in

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the project progress reports. 179. External monitoring and evaluation agency. External monitoring agency will be engaged by the Zhaotong PMO, with responsibilities to include the following: (1) Monitor all aspects of the RP implementation, evaluate satisfaction degree of the APs, and submit semiannual resettlement M&E report to the PMOs and ADB; (2) Provide technical guidance for the project resettlement office on data survey and processing; and (3) Propose all corrective measures and actions for compliance with ADB’s SPS, as needed.

8.3. Resettlement Implementing Agency Staffing and Facilities

180. To ensure the successful implementation of the resettlement work, all resettlement IAs of the Project have assigned dedicated staff; and a smooth channel of communication has been established. Each resettlement agency is composed mainly of administrative staff and specialized technicians, all of whom have certain professional and management skills; and considerable experience in resettlement. The staffing of the project resettlement agency are listed in Table 8- 1, and the officials of the resettlement agency are listed in Table 8-2. Table 8-1: Resettlement Implementing Agency Staffing

Name of Agency Staffing (person) Staff Composition Project Leading Group 2 Government officials Staff of the Yudong Reservior Zhaotong Project Management Office 2 Management Commission and the Zhaotong City People’s Government Zhaoyang District and Ludian County Project 2 Officials of district/county government Management Offices Project Implementing Units 2 Leaders, staff Natural Resource Bureaus of Zhaotong City, 8 Civil servants, staff Zhaoyang District, and Ludian County Townships 2 Township cadres Village cadres and affected person Each Village Committee and Village Group 6–10 representatives Design Institute 2 Senior Engineer, Engineer External Monitoring Agency (to be engaged) 4–6 Resettlement and social experts Table 8-2: Officials of Relevant Resettlement Agencies of the Project

Agency Name Position Zhaotong Project Management Office Cui Yuanlei Office Contact Person Zhaotong Project Management Office Gao Feng Office Staff Longshu Town of Ludian County Shen Jichao Town Chief Shuimo Town of Ludian County Jiang Kaimou Town Chief Xinjie Town of Ludian County Tang Yadong Town Chief Buchu Village Committee Zhou Yan Village Secretary Yuba Village Committee Jiang Xianchao Village Secretary Jule Village Committee Yan Jiashan Village Secretary Xinhe Village Committee Cao Ping Village Secretary Yufei Village Committee Wang Mingqi Village Secretary Xinpeng Village Committee Song Wen Village Secretary Huangnizhai Village Committee Kong Weiquan Village Secretary

P 92 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Agency Name Position Shuimo Village Committee Ding Shichang Village Secretary Heilu Village Committee Zhu Qinghai Village Secretary Tiechang Community Committee Wu Qixiang Village Secretary Shanqiao Village Committee Lu Bin Village Secretary Pingdiying Village Committee Zang Qinghong Village Secretary Xinjie Community Committee Ye Bin Village Secretary Jiufang Village Committee Fu Yangshu Village Secretary Jintang Village Committee Niu Jiahong Village Secretary Tangfang Village Committee Zhao Lianbi Village Secretary Zhaobi Village Committee Ma Yonghu Village Secretary Guzhai Village Committee Sun Jikun Village Secretary Xinle Village Committee Ma Yongkang Village Secretary

8.3.1. Equipment and Facilities 181. The resettlement IAs already have existing resources that include office equipment, and transport and communication equipment, including desks, computers, printer, telephone, fax, and vehicles.

8.3.2. Training Program for Resettlement Implementing Agency Staff 182. During project preparation, the transaction technical assistance resettlement specialists provided relevant training to the staff of the PMO, the IAs, and other concerned agencies (i.e., local natural resources bureaus and township governments) on the requirements of ADB’s SPS (2009), particularly the Requirement 2: Involuntary Resettlement. In addition, meetings were held to discuss socioeconomic analysis, compensation policies and standards, restoration measures and program, the GRM, internal and external monitoring, etc. All PMO staff of Zhaotong City, Zhaoyang District, and Ludian County participated in these training and meetings, including staff who will be responsible for the RP implementation. 183. Most of the staff are familiar with the PRC’s domestic law and regulations on the LAR and have some experiences to implement the LAR work in domestic projects. This is the first time for them to participate in the preparation and implementation of an ADB-financed project, which has more requirements on the RP implementation (see Table 4-2 for details). In addition, there may be some staff turnover during implementation of the project and the RP. Therefore, more training on the RP implementation, management, coordination, monitoring, and reporting have been planned to strengthen the capacity of relevant agencies and their staff. 184. Training purposes. Trainings will be conducted for the management and technical staff responsible for the LAR implementation of the project on the LAR policies and procedures to ensure full compliance with the RP. 185. Training Targets (1) The LAR management personnel: The LAR trainings for the senior project management personnel aims for them to learn ADB’s resettlement policies and management experience because they will also be responsible for the dissemination to all LAR personnel of the project;

P 93 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan and (2) Resettlement staff: The purpose of the training is for the resettlement staff to learn project scope and contents, resettlement policies, and restoration measures to ensure smooth LAR implementation. 186. Training methods. Senior management training will be organized by the Zhaotong PMO; and resettlement specialists among project management consultants, government officials, and experts will be invited to conduct the training. The resettlement staff training will be organized by the district/county PMOs, and the project resettlement agency will assign officers to provide guidance. 187. Training content. Project overview and background, relevant laws and regulations, management, reporting procedures, financial management, the RP, the M&E, and the GRM.

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9. Resettlement Implementation Schedule

9.1. Key Milestones 188. According to the implementation schedule, the Project has a construction period of 6 years from August 2020 to December 2026. The key milestones for resettlement implementation are as follows: (1) The RP will be updated and approved by ADB before award of civil works contracts; (2) The LA should be completed at least 1 month prior to the commencement of construction, and the starting time will be determined as necessary for the LA and resettlement; and (3) Before the commencement of construction and the LAR impacts occur, compensation will be provided to the APs. All compensation fees will be paid to the affected proprietors directly and fully within 1 month of formal signing of the LA agreement. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

9.2. Resettlement Implementation Schedule

189. The general resettlement schedule of the Project has been drafted based on the progress of project construction, the LA, and implementation. The exact implementation schedule may be adjusted in the updated RP due to deviations in an overall project progress. See Table 9-1.

P 95 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 9-1: Resettlement Implementation Schedule

No. Task Target Agencies in charge Time Remarks 1 Information disclosure Resettlement Information 23 affected villages, Zhaotong Project Booklet 108 villager groups, 1.1 Management Office 2019 Dec and 4,386 affected (PMO) persons (APs) Disclosure of the draft resettlement plan (RP) on Zhaotong PMO and 1.2 APs 2019 Dec the Asian Development ADB Bank’s (ADB) website 2 RP update and resettlement budget approval Detailed Measurement 2.1 APs Zhaotong PMO 2020 May Survey (DMS) Updating the RP based on All affected villages, Zhaotong PMO, 2.2 the DMS villager groups, and 2020 Jun Consultants APs Submission of the updated Zhaotong PMO and 2.3 RP to ADB for review and APs 2020 Jul ADB approval Updated RP budget 2.4 approval (including APs Zhaotong PMO 2020 Jun compensation rates) 3 Land acquisition (LA) announcement Disclosing the updated RP All affected villages, 3.1 villager groups, and Zhaotong PMO 2020 Aug APs Releasing the LA All affected villages, 3.2 announcement villager groups, and Zhaotong PMO 2020 Oct APs 4 Compensation agreement Entering into the LA Based on compensation agreements detail design 2020 Nov– 4.1 and paying compensation APs Zhaotong PMO progress of 2021 Dec each component 5 Livelihood restoration measures Payment of compensation 2020 Nov– 5.1 for young crops and APs Zhaotong PMO 2021 Dec attachments Implementation of restoration 2020 Dec– 5.2 APs Zhaotong PMO programs 2025 Dec Implementation of training 2020 Dec– 5.3 APs Zhaotong PMO program 2025 Dec Hiring the APs under the 2020 Dec– 5.4 APs Zhaotong PMO Project 2025 Dec 6 Capacity building of resettlement agencies Training of Zhaotong, Staff responsible for Zhaotong PMO, 2020 May– 6.1 Zhaoyang, and Ludian PMO resettlement Consutlants 2021 Aug staff Training of project town staff Staff responsible for Zhaotong PMO, 2020 May– 6.2 resettlement Consutlants 2021 Aug

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No. Task Target Agencies in charge Time Remarks 7 Monitoring and Evaluation (M&E) Establishing an internal Zhaotong PMO, 7.1 2020 Oct monitoring mechanism Consutlants Internal monitoring reporting Zhaotong PMO, From 7.2 Consutlants 2020 Oct Appointing an external M&E 7.3 Zhaotong PMO 2020 Oct agency Baseline survey Affected villages, 7.4 External M&E agency 2020 Oct village groups, APs Report No.1 2021 Jan with baseline survey Semiannual 2021 Jul Report No. 2 Semiannual 2022 Jan Report No. 3 Semiannual Affected villages, 2022 Jul 7.5 External monitoring reporting External M&E agency Report No. 4 village groups, APs Semiannual 2023 Jan Report No. 5 Semiannual 2023 Jul Report No.6 Semiannual 2024 Jan Report No.7 Semiannual 2024 Jul Report No.8 7.6 Completion report External M&E agency 2025 Dec Report No. 9 8 Public consultation Zhaotong PMO ongoing 9 Grievance redress Zhaotong PMO ongoing 10 Disbursement of compensation fees - To district and/or county Zhaotong, 10.1 municipal administration Zhaoyang, and Zhaotong PMO 2020 Nov offices Ludian PMOs 10.2 - To township governments 7 project towns Zhaotong PMO 2020 Dec 10.3 - To affected HHs 2020 Dec 11 Commencement of civil construction From 11.1 The Project Zhaotong, Zhaoyang, and Ludian PMOs 2020 Dec

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10. Budget

10.1. Land Use Budget 190. The total cost estimate for land use is 108,824,100 yuan, including the PLA compensation fee of 23.2515 million yuan (21.4% of total cost); the TLO compensation of 32.6237 million yuan (30.0% of total cost); ground attachment compensation of 8.657 million yuan (8.0% of total cost); the LURT cost of 5.6226 million yuan (5.2% of total cost); the LURPI of 0.4605 million yuan (0.4% of total cost); other costs (including the RP preparation fee, implementation management fee, staff training fee, and the M&E fee) of 3.8134 million yuan (3.5% of total cost); land-related taxes (including farmland occupation tax, land reclamation fee, forest, and vegetation restoration fee) of 13.796 million yuan (12.17% of total costs); contingency of 8.8229 million yuan (8.1% of total cost); and endowment insurance fund for land-lost farmers of 11.7724 million yuan (10.8% of total cost). 191. See details in the following tables. Table 10-1: Land Use Compensation Rate Summary Compensation Rate (yuan) Shuimo Xinjie Longshu Sujia Dazhaizi Sayu Leju Compensation Items Unit Town Town Town Town Town Town Town I. Direct Costs 1.Land Acquisition Paddy field, mu 33,908 33,908 33,908 31,564 31,564 45,292 45,292 dryland Land compensation 1.1 Farmland (including mu 32,604 32,604 32,604 30,350 30,350 43,550 43,550 resettlement subsidy) Compensation mu 1,304 1,304 1,304 1,214 1,214 1,742 1,742 for young crops Orchard mu 35,212 35,212 35,212 32,778 32,778 47,034 47,034 Land mu 32,604 32,604 32,604 30,350 30,350 43,550 43,550 1.2 Garden Plot compensation Fruit tree mu 2,608 2,608 2,608 2,428 2,428 3,484 3,484 compensation 1.Timber mu 7,500 (woodland) Forestland compensation mu 6,300 fee and subsidy Compensation mu 1,200 1.3 Forestland for trees 2. Shrubland mu 4,500 Land mu 3,780 compensation Tree mu 720 compensation 1.4 Grassland Other grassland mu 16,302 16,302 16,302 15,175 15,175 21,775 21,775 Mining land mu 80,000 Land 1.5 Industrial and compensation mu 32,604 Mining Land and subsidy Land transfer mu 45,000 fee

P 98 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Compensation Rate (yuan) Shuimo Xinjie Longshu Sujia Dazhaizi Sayu Leju Compensation Items Unit Town Town Town Town Town Town Town Land leveling mu 2,396 fee 2. Temporary Land Occupation 1. Farmland mu 6,807 6,807 6,807 6,717 6,717 7,245 7,245 Reclamation fee mu 5,503 5,503 5,503 5,503 5,503 5,503 5,503 Young crops mu 1,304 1,304 1,304 1,214 1,214 1,742 1,742 compensation 2.1 Farmland 2. Garden plot mu 8,111 8,111 8,111 7,931 7,931 8,987 8,987 Reclamation fee mu 5,503 5,503 5,503 5,503 5,503 5,503 5,503 Young crops mu 2,608 2,608 2,608 2,428 2,428 3,484 3,484 compensation 1. Forest mu 7,412 (timber) 2. Economic 2.2 Forestland mu 1,500 forest 3. Shrubland mu 900 3. Land Use Right 1.Farmland mu 13,500 Transfer (LURT) (basic farmland) 4. Land use for ecological farming mu Included in eco-compensation fund and forest (LUEFF) 5. Land use for 1. paddy fields, mu 32,604 32,604 32,604 30,350 rural public dryland infrastructure 2.Other mu 16,302 16,302 16,302 15,175 (LURPI) (grassland) II. Other Costs (Direct costs) × 2.1RP preparation A = 0.012 A 2.2Implementa- (Direct costs) × tion Management B = 0.012 B Fee for PMOs (Direct costs) × 2.3Training Fee C = 0.015 C 2.4 Monitoring (Direct costs) × and Evaluation D = 0.015 D Fee III. Taxes and Fees 3.1 Use Fee of Additional mu 6,667 10,667 Construction Land Use 3.2 Farmland Occupation Tax m2 18 18 18 22 22 22 22 3.3 Farmland Reclamation Fee mu 10,500 10,500 10,500 12,600 12,600 12,600 12,600 3.4 Forest Vegetation Restoration Fee Woodland m2 10 (timber) Shrubbery m2 6 3.5 Other Costs for local town

governments Working Fund mu 500 Coordination mu 500 Fee IV. Contingency (I + II + III) × E E = 10% V. Endowment Insurance for LEFs mu 20,000 (paid to social security bureau)

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Table 10-2: Land Use Cost Estimate

Quantity Amount Item Sub-item (mu) (10,000 yuan) I. LA basic cost 7,061.93 1. Permanent Land Acquisition 2,325.55 1.1 Farmland Paddy fields, dryland 1,882.00 Land compensation 529.45 1,822.01 Compensation for young crops 435.34 233.45 1.2 Garden Plot Orchard 229.42 Land compensation 59.17 212.43 Fruit tree compensation 59.17 16.99 1.3 Forestland 83.75 1. Timber (woodland) 105.32 78.99 2. Timber (economic forest) 3. Shrubland 10.58 4.76 1.4 Grassland Other grassland 28.03 45.80 1.5 Industrial and Mining Land Mining land 10.57 84.58 2. Temporary Land Occupation 3,262.37 2.1 TLO Fee of Farmland 3,159.17 1. Farmland 3,444.72 2,790.51 2. Garden Plot 384.24 368.66 2.2 TLO Fee of Forestland 103.21 1. Timber (woodland) 221.43 33.21 2. Timber (economic forest) 3. Shrubland 777.70 69.99 3. Ground (structure) Attachments 865.70 4. Land use right Transfer (LURT) 562.26 1. Farmland (basic farmland) 416.49 562.26 46.0054 million yuan, included in 5. Land use for ecological farming and eco-compensation fund of this forest (LUEFF) project, no need for special budget 6. Land use for rural public infrastructure 46.05 (LURPI) 6.1 paddy fields, dryland 12.95 42.22 6.2 Other grassland 2.52 3.83 II. Other Related Expenses 381.34 2.1 RP Preparation Fee (LA basic cost) × A 7,061.94 84.74 2.2 Implementation Management Fee for (LA basic cost) × B 7,061.94 84.74 PMOs 2.3 Training Fee (LA basic cost) × C 7,061.94 105.93 2.4 Monitoring and Evaluation Fee (LA basic cost) × D 7,061.94 105.93 III. Related Taxes and Fees 1,379.60 3.1 Use Fee for Additional Construction 732.55 603.05 Land Use 3.2 Farmland Occupation Tax 588.62 10.81 3.3 Land Reclamation Fee 588.62 618.05 3.4 Forest Vegetation Restoration Fee 74.45 Woodland (timber) 105.32 70.21 Shrubbery 10.58 4.23 3.5 Other Costs for local town governments 73.25 Working Fund 732.55 36.63

P 100 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Quantity Amount Item Sub-item (mu) (10,000 yuan) Coordination Fee 732.55 36.63 IV. Contingency (I + II + III) × E 8,822.88 882.29 V. Endowment Security Fund for LEFs 588.62 1,177.24

Total Cost 10,882.41

Table 10-3: Land Use Cost by Project District/county

Total Ludian County Zhaoyang District Quantity Cost Quantity Cost Quantity Cost

Item Sub-item (mu) (10,000 yuan) (mu) (10,000 yuan) (mu) (10,000 yuan) I. Land Acquisition 7,061.93 4,607.13 1,589.10 (LA) basic cost 1. Permanent 2,325.55 1,465.26 860.29 LA Paddy fields, 1.1 Farmland 1,882.00 1,242.90 639.10 dryland Land 529.45 1,822.01 366.55 1,195.10 162.89 626.91 compensation Compensation for young 435.34 233.45 358.14 159.81 77.20 47.73 crops 1.2 Garden Orchard 229.42 69.67 159.76 Plot Land 59.17 212.43 19.78 64.50 39.39 147.92 compensation Fruit tree 59.17 16.99 19.78 5.16 39.39 11.83 compensation 1.3 Forestland 83.75 23.32 60.43 1. Timber 105.32 78.99 29.67 22.25 75.65 56.74 (woodland) 2. Timber (economic forest) 3. Shrubland 10.58 4.76 2.36 1.06 8.22 3.7 Other 1.4 Grassland 28.03 45.80 27.48 44.80 0.55 1.01 grassland 1.5 Industrial and Mining Mining land 10.57 84.58 10.57 84.58 Land 2. Temporary Land Occupa- 3,262.37 2,537.39 724.98 tion (TLO) 2.1 TLO Fee of 3,159.17 2,495.55 663.62 Farmland 1. Farmland 3,444.72 2,790.51 2,781.92 2,256.36 662.81 534.15 2. Garden Plot 384.24 368.66 254.06 239.19 130.18 129.47 2.2 TLO Fee of 103.21 41.84 61.36 Forestland 1. Timber 221.43 33.21 46.15 6.92 175.28 26.29 (woodland)

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Total Ludian County Zhaoyang District Quantity Cost Quantity Cost Quantity Cost

Item Sub-item (mu) (10,000 yuan) (mu) (10,000 yuan) (mu) (10,000 yuan) 2. Timber (economic forest) 3. Shrubland 777.7 69.99 388.01 34.92 389.68 35.07 3. Ground (structure) 861.87 Attachments 4. Land use 562.26 562.26 right transfer 1. Farmland (basic 416.49 562.26 416.49 562.26 farmland) 5. Land use for ecological 46.05 42.22 3.83 farming land forest 5.1 Paddy 12.95 42.22 12.95 42.22 fields, dryland 5.2 Other 2.52 3.83 2.52 3.83 grassland II. Other Related 381.34 414.64 143.02 Expenses 2.1 Resettle- ment Plan (LA basic 7,061.94 84.74 4,607.13 138.21 1,589.10 47.67 Preparation cost) × A Fee 2.2 Implementation Management (LA basic Fee for the 7,061.94 84.74 4,607.13 138.21 1,589.10 47.67 cost) × B Project Management Offices 2.3 Training (LA basic 7,061.94 105.93 4,607.13 69.11 1,589.10 23.84 Fee cost) × C 2.4 Monitoring (LA basic and Evaluation 7,061.94 105.93 4,607.13 69.11 1,589.10 23.84 cost) × D Fee III. Related Taxes and 1,379.6 1,117.85 897.28 Fees 3.1 Use Fee for Additional 732.55 603.05 445.85 297.23 286.70 305.81 Construction Land Use 3.2 Farmland Occupation 588.62 10.81 386.34 463.60 202.28 296.68 Tax 3.3 Land Reclamation 588.62 618.05 386.34 405.65 202.28 212.40 Fee 3.4 Forest Vegetation 74.45 20.73 53.72 Restoration Fee Woodland 105.32 70.21 29.67 19.78 75.65 50.43 (timber) Shrubbery 10.58 4.23 2.36 0.94 8.22 3.29

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Total Ludian County Zhaoyang District Quantity Cost Quantity Cost Quantity Cost

Item Sub-item (mu) (10,000 yuan) (mu) (10,000 yuan) (mu) (10,000 yuan) 3.5 Other Costs for local 73.25 44.58 28.67 town governments Working Fund 732.55 36.63 445.85 22.29 286.70 14.34 Coordination 732.55 36.63 445.85 22.29 286.70 14.34 Fee IV. (I + II + III) × E 8,822.88 882.29 6,139.62 613.96 2,629.41 262.94 Contingency V. Endowment Security Fund for the Land- 588.62 1,177.24 386.34 772.67 202.28 404.57 Expropriated Farmers

Total Cost 10,882.41 7,526.26 3,296.91

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Table 10-4: Land Use Cost by Components Output 1 (1.5 Output 1 (1.2 Output 1 (1.3 Output 1 (1.4 Output 2 (2.1 Output 1 (1.1 Waste Quantifiable Soil and Output 1 (1.6 Low- Total Solid Waste Pilot Eco- Wetlands Ecological River Management) Water Conservation Emission Agriculture) Management) Villages) Construction) Embankment) Model) Quan- Quan- Quantity Cost Quantity Cost Cost Cost Quantity Cost Quan-tity Cost Quantity Cost Quantity Cost tity tity (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (mu) (mu) (mu) (mu) (mu) (mu) (mu) (mu) Item Sub-item yuan) yuan) yuan) yuan) yuan) yuan) yuan) yuan) I. Land Acquisition 7,061.93 1,079.88 150.06 25.91 1,113.10 202.17 576.89 3,048.22 (LA) basic cost 1. Perma- 2,325.55 5.47 150.06 539.11 1,630.91 nent LA Paddy 1.1 Farm- fields, 1,882.00 5.47 65.49 539.11 1,271.93 land dryland Land compensa- 529.45 1,822.01 1.61 5.26 20.12 62.97 153.98 518.38 353.73 1,235.41 tion Compensa -tion for 435.34 233.45 1.61 0.21 150.06 25.91 153.98 20.74 279.74 36.53 young crops 1.2 Garden Orchard 229.42 229.42 Plot Land compensa- 59.17 212.43 59.17 212.43 tion Fruit tree compensa- 59.17 16.99 59.17 16.99 tion 1.3 Forest- 83.75 83.75 land 1. Timber 105.32 78.99 105.32 78.99 (woodland) 2. Timber (economic forest) 3. Shrub- 10.58 4.76 10.58 4.76 land 1.4 Grass- Other 28.03 28.03 45.80 land grassland 45.80

P 104 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Output 1 (1.5 Output 1 (1.2 Output 1 (1.3 Output 1 (1.4 Output 2 (2.1 Output 1 (1.1 Waste Quantifiable Soil and Output 1 (1.6 Low- Total Solid Waste Pilot Eco- Wetlands Ecological River Management) Water Conservation Emission Agriculture) Management) Villages) Construction) Embankment) Model) Quan- Quan- Quantity Cost Quantity Cost Cost Cost Quantity Cost Quan-tity Cost Quantity Cost Quantity Cost tity tity (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (mu) (mu) (mu) (mu) (mu) (mu) (mu) (mu) Item Sub-item yuan) yuan) yuan) yuan) yuan) yuan) yuan) yuan) 1.5 Indus- Mining trial and 10.57 84.58 10.57 84.58 land Mining Land 2. Tempo- rary Land 3,262.37 1,054.27 11.73 202.17 576.89 1,417.31 Occupation (TLO) 2.1 TLO Fee of 3,159.17 1,031.95 11.36 193.48 576.31 1,346.07 Farmland 1. Farm- 3,444.72 2,790.51 1,127.34 911.76 14 11.36 220.77 179.06 708.09 576.05 1,374.52 1,112.29 land 2. Garden 384.24 368.66 127.75 120.2 15.31 14.42 0.28 0.26 240.9 233.79 Plot 2.2 TLO Fee of 103.21 22.32 0.38 8.7 0.58 71.23 Forestland 1. Timber 221.43 33.21 2.5 0.38 42.95 6.44 0.7 0.1 175.28 26.29 (woodland) 2. Timber (economic forest) 3. Shrub- 777.7 69.99 248.03 22.32 25.05 2.25 5.26 0.47 499.35 44.94 land 3. Ground (structure) 865.7 Attach- ments 4. Land use right 562.26 562.26 Transfer 1. Farm- land (basic 416.49 562.26 416.49 562.26 farmland)

5. Land use 46.05 20.14 25.91 for

P 105 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

5.1 Paddy fields, 12.95 42.22 5 16.31 7.95 25.91 dryland 5.2 Other 2.52 3.83 2.52 3.83 Grassland II. Other Related 381.34 97.19 13.51 2.33 100.18 18.20 51.92 274.34 Expenses 2.1 Resettle- (LA basic ment Plan 7,061.93 84.74 1,079.88 32.40 150.06 4.50 25.91 0.78 1,113.10 33.39 202.17 6.07 576.89 17.31 3,048.22 91.45 cost) × A Preparation Fee 2.2 Imple- mentation (LA basic 7,061.93 84.74 1,079.88 32.40 150.06 4.50 25.91 0.78 1,113.10 33.39 202.17 6.07 576.89 17.31 3,048.22 91.45 Manage- cost) × B ment Fee 2.3 Training (LA basic 7,061.93 105.93 1,079.88 16.20 150.06 2.25 25.91 0.39 1,113.10 16.70 202.17 3.03 576.89 8.65 3,048.22 45.72 Fee cost) × C 2.4 Monitor- ing and (LA basic 7,061.93 105.93 1,079.88 16.20 150.06 2.25 25.91 0.39 1,113.10 16.70 202.17 3.03 576.89 8.65 3,048.22 45.72 Evaluation cost) × D Fee III. Related Taxes and 1,379.6 4.86 65.67 455.07 1,489.53 Fees 3.1 Use Fee for Additional 732.55 603.05 1.61 1.07 20.12 18.10 153.98 108.63 556.83 475.25 Construc- tion Land Use 3.2 Farm- 588.62 10.81 1.61 1.93 20.12 27.27 153.98 188.76 412.90 542.32 land

P 106 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Output 1 (1.5 Output 1 (1.2 Output 1 (1.3 Output 1 (1.4 Output 2 (2.1 Output 1 (1.1 Waste Quantifiable Soil and Output 1 (1.6 Low- Total Solid Waste Pilot Eco- Wetlands Ecological River Management) Water Conservation Emission Agriculture) Management) Villages) Construction) Embankment) Model) Quan- Quan- Quantity Cost Quantity Cost Cost Cost Quantity Cost Quan-tity Cost Quantity Cost Quantity Cost tity tity (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (10,000 (mu) (mu) (mu) (mu) (mu) (mu) (mu) (mu) Item Sub-item yuan) yuan) yuan) yuan) yuan) yuan) yuan) yuan) Occupation Tax 3.3 Land Reclama- 588.62 618.05 1.61 1.69 20.12 21.13 153.98 161.68 412.90 433.55 tion Fee 3.4 Forest Vegetation 74.45 74.45 Restoration Fee Woodland 105.32 70.21 105.32 70.21 (timber) Shrubbery 10.58 4.23 10.58 4.23 3.5 Other 73.25 0.16 2.01 15.40 55.68 Costs Working 732.55 36.63 1.61 0.08 20.12 1.01 153.98 7.70 556.83 27.84 Fund Coordina- 732.55 36.63 1.61 0.08 20.12 1.01 153.98 7.70 556.83 27.84 tion Fee IV. Contin- (I + II + III) 8,822.88 882.29 1,181.93 118.19 229.23 22.92 28.24 2.82 1,668.35 166.84 220.37 22.04 628.81 62.88 4,812.09 481.21 gency × E V. Endow- ment Security Fund for the 588.62 1,177.24 1.61 3.22 20.12 40.24 153.98 307.96 412.90 825.81 Land-Expro- priated Farmers

Total Cost 10,882.41 1,303.35 292.40 31.07 2,143.15 242.41 691.69 6,119.11

P 107 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

10.2. Funding Source and Utilization Plan

192. The land use funds of the project will come from the Zhaotong Municipal Finance Bureau and the Zhaoyang District and Ludian County governments. The ZCG has assured that the Zhaotong Municipal Finance Bureau will ensure availability of land use budget for 2020–2025 for completing the LAR implementation according to the schedule. Annual land use investment is shown in Table 10-5.

Table 10-5: Land Use Investment Plan

Year 2020 2021 2022 2023 2024 2025 Total Investment 1,088.241 4,352.964 3,808.844 544.1205 544.1205 544.1205 10,882.41 (10,000 yuan) Percentage 10% 40% 35% 5% 5% 5% 100%

10.3. Land Use Fund Management and Disbursement 10.3.1. Fund Flow

193. In accordance with the compensation policies and standards set in this RP, compensation agreements will be signed with the AHs; and compensation fee will be directly paid to the AHs and enterprise. The Zhaotong City Project Leading Group will supervise and guide the utilization of funds to prevent embezzlement.

194. According to local practice, the LA and compensation funds (land compensation fee, resettlement subsidy, young crops and ground attachment compensation) will be disbursed by the Zhaotong Municipal Finance Bureau to the Zhaotong PMO; and then, the PMO to the implementation and management unit which is normally the township governments who will then disburse to the AHs according to the verified list. Local resettlement bureau, finance bureau, and the PIU will jointly establish a working group for supervision and implementation.

195. Resettlement subsidy and enterprise compensation will be directly made to the APs and affected enterprise, and the APs can withdraw the money from the bank with the payment notification and identification card.

196. Endowment security fund for the LEFs: Step 1. The construction unit will pay security fund according to the area of the LA, and the security fund will be managed by the county social security bureau with separate accounting. If the fund is inadequate, the county government will provide subsidy through risk reserve; and Step 2. The county government will organize the social security bureau, public security bureau, and agriculture and rural affairs bureau to confirm the list of persons, i.e., registered persons (16 years old and above) whose per capita farmland is reduced to less than 0.3 mu after the LA. For those whose per capita farmland is more than 0.3 mu after the LA; but not enough to maintain subsistence, the county government can include them into the security scope according to actual situations. The list of persons will be disclosed after confirmation. Payment will be made for endowment insurance from the social security special account according to the confirmed list and willingness of the households.

P 108 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

10.3.2. Disbursement Plan

197. The compensation fund will be disbursed under the supervision and management of the Zhaotong Audit Bureau. The external monitoring agency will verify whether the compensation fund is disbursed in full and in a timely manner. The following measures will be taken to ensure timely payment of compensation and restoration of the APs’ production and livelihood.

(1) All costs related to land use will be included into the project cost estimate. The LAR compensation and other fees will be disbursed by the LA center of the land resources bureau to concerned entities and individuals;

(2) Land compensation fee and resettlement subsidy should be fully paid prior to the LA to ensure proper resettlement of the APs; and

(3) To ensure smooth LAR implementation, financial and supervision body will be established at each level to ensure timely disbursement of all funds.

10.4. Approval of Additional Costs

198. The contingency within the cost estimate can be utilized by the PIUs. Unforeseen expenses and cost increase due to price inflation that exceeds the cost estimate should be submitted to the Zhaotong PMO; and then, the PMO will submit to the Zhaotong Development and Reform Commission and the Zhaotong Municipal Finance Bureau for approval, with the process taking less than a month.

P 109 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

11. Monitoring and Evaluation

199. To ensure smooth LAR implementation, the following monitoring systems will be established: (i) internal monitoring system consisting of relevant government agencies, and (2) external monitoring by an external monitoring agency. These M&E will be integrated in comprehensive social monitoring, together with the M&E of the RP, ethnic minority development plan, and social development and gender action plans during project implementation.

11.1. Internal Monitoring

11.1.1. Implementation Procedures

200. The internal monitoring responsibility of the project lies with the Zhaoyang District PMO and the Ludian County PMO under the Zhaotong City PMO, in collaboration with the land resources bureaus and relevant agencies of the Zhaotong City, Zhaoyang District, and Ludian County. A detailed internal monitoring plan will be prepared by the PMO during the project implementation.

11.1.2. Monitoring Scope

(1) Progress of the LAR implementation; (2) Key issue regarding the APs and the IAs during implementation; (3) Conversion to urban residence of the APs after the LA; (4) Employment of the APs after the LA; (5) Restoration measures for vulnerable groups affected by the LA; (6) Payment and utilization of compensation fund; (7) Public participation and consultation with the APs during the RP implementation; (8) Numbers of trainings for the APs and number of participants; and (9) Training and arrangement of resettlement implementation agency and personnel.

11.1.3. Internal Monitoring Reports

201. The Zhaotong PMO will submit internal monitoring reports to ADB together with the project progress reports. The reports will include tables demonstrating the LA, resettlement, and compensation for the last 6 months. With assistance of resettlement specialist, the Zhaotong PMO will also prepare a resettlement completion report after the LAR is fully completed.

11.2. External Monitoring

202. In accordance with ADB’s requirements, a qualified and experienced resettlement external monitoring agency will be engaged by the PMO.

203. The external M&E agency will conduct baseline survey prior to the LAR; carry out follow- up M&E of resettlement activities periodically; monitor resettlement progress, quality, funding, satisfaction, and complaints; and provide suggestions. It will also conduct follow-up monitoring of

P 110 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan the APs’ satisfaction level and livelihood restoration, and submit the M&E reports to the PMO and ADB.

11.2.1. Scope and Methods of External Monitoring

(1) Baseline Survey

204. The external monitoring agency will conduct baseline survey on the affected villages to collect baseline data on the production and living standard (living, production, and income levels) of the AHs. Sampling survey will be conducted for not less than 20% of the AHs and 100% of the vulnerable groups. The baseline survey should be completed prior to start of the LAR. The baseline report can be included into the first external monitoring report.

(2) Regular Monitoring and Evaluation

205. The external monitoring agency will conduct resettlement monitoring during the implementation of the RP and the project, and monitoring will be conducted twice a year. The monitoring will be conducted through site observation, sample follow-up survey, and interviews with the APs (sample size will be not less than 20% of all APs, and 100% of the vulnerable groups and random samples). The scope of monitoring includes (i) payment of compensation and its amount; (ii) implementation and effectiveness of training programs; (iii) support for vulnerable groups; (iv) production and livelihood restoration; (v) schedule and progress of these activities; (vi) rural to urban residence conversion and urban endowment insurance; (vii) resettlement organization structure and capacity; (viii) utilization of compensation for collective land; (ix) existing non-agricultural employment and new employment income increase; and (x) whether the APs are benefiting from the project. (3) Public Consultations

206. The external monitoring agency will participate in some of the public consultation meetings conducted during the RP implementation to evaluate the outcome and effectiveness of public participation.

(4) Complaints

207. The external monitoring agency will conduct regular visit to the affected villages, and follow up with the concerned township governments and the IAs on the handling of the complaints. If there are any issues identified during monitoring, corrective measures should be proposed to the PMOs for effective resettlement implementation.

P 111 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

11.2.2. External Monitoring Reporting

208. The external monitoring agency will prepare external monitoring reports based on observations and surveys and submit them regularly to ADB through the PMO.

209. The external monitoring will start in October 2020 until resettlement completion and the production and living of the APs are restored.

Table 11-1: Schedule for Comprehensive Social Monitoring Report

# Report Timeline Remarks Baseline survey and monitoring report 1 2021 Jan Including the baseline survey report (No.1) 2 Monitoring report (No.2) 2021 Jul Semiannual report 3 Monitoring report (No.3) 2022 Jan Semiannual report 4 Evaluation report (No.4) 2022 Jul Semiannual report 5 Evaluation report (No.5) 2023 Jan Semiannual report 6 Evaluation report (No.6) 2023 Jul Semiannual report 7 Evaluation report (No.7) 2024 Jan Semiannual report 8 Evaluation report (No.8) 2024 Jul Semiannual report 9 Completion report (No.9) 2025 Dec Completion report

11.3. Resettlement Completion Report

210. After the completion of the Project, the resettlement activities will be subject to completion review based on the M&E. Successful experience and lessons of the LA will be evaluated to provide experience that can be drawn on for future resettlement. Completion review will be conducted by the external M&E agency appointed by the PMO. The external monitoring agency will prepare a work plan for completion review to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Completion Report for submission to ADB through the Zhaotong PMO.

P 112 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex: Photos of Consultation and Household Survey

Land Acquisition and Resettlement Policy Resettlement Plan Discusssion Meeting Publicity Meeting in Xinjie Town

Household Survey, Policy Publicity, Questionnaire Project Design Consultation Meeting in Jiufang Village (Xinhe Village)

Signing of Framework Agreements for Land Use Household Questionnaire Survey (Transfer) in Affected Villages (Xinhe Village)

P 113 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Appendix I: Framework for the Land Use Right Transfer

Framework for the Land Use Right Transfer

Zhaotong Municipal People’s Government. December 2019

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1. Overview

1. The Asian Development Bank (ADB)-financed Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (hereinafter referred as “Project”) consists of four outputs, including (i) wastewater management and pollution control in the Sayu River Basin strengthened; (ii) water resources management in the Sayu River improved; (iii) eco-compensation mechanism for the Sayu River Basin established; and (iv) education, capacity, and public awareness for water pollution management strengthened. The project will be implemented in the Zhaoyang District and the Ludian County of the Zhaotong City in Yunnan Province of the People’s Republic of China (hereinafter referred as “PRC”).

2. The overall objective of the project is to improve the condition of water resources and environment in the Sayu River Basin in Zhaotong City. The outputs (i) and (ii) of the project involve civil works construction and land acquisition (LA) and resettlement (LAR) impacts, while the outputs (iii) and (iv) will not involve any LAR. An environmental and social management system has been prepared for the output (iii) to screen and avoid the LAR impacts and/or risks.

3. The land use for the project can be divided into five categories: (i) permanent LA (PLA), (ii) state-owned land occupation, (iii) land use right transfer (LURT), (iv) land use for ecological farming or forestry, and (v) land use for rural public infrastructure. In addition, some temporary land occupation will be required during project construction. Seven components of the project will involve land uses, and the land area to be used in the five methods by relevant components is summarized in Table 1-1.

Table 1-1: Land Areas for Subprojects in Different Types of Land Use

PLA SLO TLO LURT LUEFF LURPI Components (mu) (mu) (mu) (mu) (mu) (mu) (1) Waste management 1.27 1,503.12 7.45 (2) Solid waste management 30.69 (3) Pilot eco-villages 7.95 (4) Wetlands construction 153.98 16.50 416.49 (5) Quantifiable water and soil conservation 304.08 6,676.25 model (6) Promotion of low-emission agriculture 714.31 19,089.34 (7) Ecological river embankment 557.43 1,973.88 2,290.06 Total 743.38 1,973.88 4,828.06 416.49 25,765.59 15.40

4. A resettlement plan (RP) has been prepared to manage the involuntary resettlement impacts of the PLA, the state-owned land occupation, and the temporary land occupation for the project. The frameworks for the land use for ecological farming or forestry, the land use for rural public infrastructure, and the LURT are prepared for remaining land uses through voluntary land use arrangements, respectively; and included in the appendixes of the RP. This framework is on the LURT of the project.

5. Regarding the LURT, a total of 416.49 mu farmland is planned to be used by the project

P 115 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan through land leasing for the wetland construction in Ludian County. To guide the operation of the LURT, this framework is prepared for the consultation, negotiation, implementation, and monitoring and/or reporting of such land leasing. The voluntary agreements for the LURT will be finalized during the implementation of the project.

6. At present, the Ludian County Water Resources Bureau (LWRB) is tentatively designated as the land user or lessee as the LWRB will be the wetland management unit. The Ludian County Project Management Office (PMO), the county natural resources bureau, and the project townships will assist in handling the relevant formalities of the LURT. The legal requirements of the LURT will be followed, and the rights and interests of the involved farmers will be protected.

7. It is necessary to develop a framework for the LURT of the project to ensure that the LURT of the project is in line with the relevant land administration policies of the PRC and Zhaotong City as well as ADB’s good practices on voluntary land leases. The project implementing agency (Zhaotong PMO) commits that the LURT framework will be strictly followed throughout the LURT process of the project.

2. Land Use Right Transfer Scope

8. The ecological river embankment (wetland construction) component includes the six wetland areas of Dahaizi, Longshu, Longxiang, Xiaohegou, Xinhe, and Zhongheba, which will occupy a total land area of 570.47 mu. Among the six wetland areas, the Xinhe and Zhongheba wetlands and part of the Xiaohegou Wetland in a total area of 153.98 mu will acquire collective land permanently. The RP prepared for the project covers this PLA. The land for the three other wetland areas of Dahaizi, Longshu, and Longxiang; and part of the Xiaohegou Wetland will be used by transferring land use right from affected farmers to the land user for the project. Because the three pieces of land are categorized as basic farmlands, such land can be used locally through the LURT. The total land area of the LURT is 416.49 mu, which involve 13 villager groups of three administrative villages (communities) in two towns of Ludian County; and will involve 115 households (HHs) with 417 people. The LURT scope is presented in Table 2-1, and the detail LURT lands by villager groups for the ecological river embankment (wetland construction) component are presented in Table 2-2.

P 116 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 2-1: Land Use Right Transfer Scope

Project Content Total Scope of LURT Land Name of Use LURT House- Popu- Land Town No. Sub-project (mu) (mu) Village Villager Group hold lation Type Shuimo Xiaohegou Tiechang Sanhechang/ 1 86.92 61.63 22 67 Town Wetland Community Liangzishang Longxiang Longshu Farm- 2 115.02 115.02 11-15 29 88 Wetland Community land and Longshu Longshu garden 3 50.81 50.81 16-19 10 46 Longshu Wetland Community land Town Dahaizi Zhaobi 4 189.03 189.03 18,19 54 216 Wetland Village Zhongheba 5 113.76 / / / / / / Wetland Xinhe Lejv Town 6 14.93 / / / / / / Wetland Total 570.47 416.49 4 13 115 417 /

Table 2-2: Detail LURT Lands by Villager Groups for Ecological Wetland Construction

Rural Collective Location Land (mu) Involved People Township/Town/ Village/ Sub- Paddy Dry House- Popu- Villager Group Sub-district Community Total Field Land hold lation

Tiechang Sanhechang 31.63 31.63 10 32 Shuimo Town Community Liangzishang 30 30 12 35 11 21 11 10 6 16 12 23 13 10 5 19 Longxiang 13 32 12 20 6 21 Community 14 25 15 10 8 22 Longshu Town 15 14.02 14.02 4 10 16 10 10 3 11

Longshu 17 16 16 2 10 Community 18 10 10 1 5 19 14.81 14.81 4 20 Zhaobi 18 88.03 72 16.03 24 96 Longshu Town Village 19 101 89.5 11.5 30 120 Total 416.49 338.96 77.53 115 417 3. Legal Framework on Land Use Right Transfer

9. All the LURT land uses must comply with the PRC’s Rural Land Contract Law and Rural Land Management Right Transfer Management Method, other relevant policies of Yunnan Province and local governments, and ADB’s good practices on voluntary land use agreements. Key laws and policies are as follows:

(1) Law of the PRC on Land Contract in Rural Areas. No change of collective ownership, nor change of agricultural land use (not allowed to convert farmland into construction land for establishment of permanent structures). (2) Administration Methods on Rural LURT, Ministry of Agriculture of the PRC, relevant regulations of the Yunnan Provincial People’s Government and the Project district and county governments: (i) The LURT duration must be within the land contract period; (ii) Negotiated settlements between transferor and transferee;

P 117 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(iii) The LURT per legal procedures; (iv) Standard contract (with endorsement by a third party); (v) Official registration and documentation for the LURT; and (vi) The township agricultural station will endorse the contract. (3) The PRC’s Law on the Mediation and Arbitration of Rural Land Contract Disputes, and relevant implementation methods of the Yunnan Provincial People’s Government and the Project district and county governments. Mediation and arbitration of disputes per a bottom-up grievance redress mechanism (GRM). (4) ADB’s good practices on voluntary land use agreements. Meaningful consultations, negotiated settlements, establishment and functioning of a GRM, record-keeping, and independent monitoring.

10. In addition, the best practices in the project area also have good applications for the LURT under the project, such practices include

(1) The LURT period of 5–10 years within the land contract period (1998–2028); (2) The LURT rate (or land rental rate) calculated in equivalent output value of grain (potato and corn), and this protects transferees from price fluctuations; and (3) Endorsement of the LURT contract.

11. Moreover, the General Office of the State Council issued the Opinions on Guiding the Orderly Transfer Rural Land Management Rights to Develop Appropriate Scale Management of Agriculture (2014). To guide the orderly circulation of the management right of rural land (refers to contracted cultivated land) and develop the appropriate scale management of agriculture, the following guidelines are put forward:

(1) Guiding ideology. Comprehensively understand and accurately grasp the spirit of the central government on comprehensively deepening rural reform, in accordance with the requirements of speeding up the construction of a three-dimensional compound modern agricultural management system based on farmer HH management; linked by cooperation and union; and supported by socialized services, as well as the requirements of taking the new road of agricultural modernization with the Chinese characteristics, which has advanced production technology; moderate management scale; strong market competitiveness; and sustainable ecological environment. To ensure national food security, promote agricultural efficiency, and increase farmers’ income, it will adhere to the collective ownership of rural land; and realize the separation of ownership, contract, and management rights. It should guide the orderly circulation of land management rights, adhere to the basic position of family management, actively cultivate new types of business entities, develop various forms of moderate scale management, and consolidate and improve the basic management system in rural areas. (2) Basic principles. (i) Adhere to the collective ownership of rural land; stabilize the contract right of farmers; invigorate the right of land management; and based on the HH contract management, promote the common development of various modes of operation, such as HH management, collective management, cooperative management, enterprise management, and so on; (ii) persist in taking reform as the driving force, give full play to the pioneering spirit of farmers, encourage innovation, and rely on reform to solve development problems; (iii) adhere to the law, voluntary, and paid: The farmers are the

P 118 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

main body, government will provide the support and guidance, and the market will allocate resources. The circulation of land management rights shall not violate the wishes of contracted farmers or damage the rights and interests of farmers; (iv) adhere to a moderate scale of operation: It should not only pay attention to improving the scale of land management, but also prevent excessive concentration of land; take into account both efficiency and fairness; and constantly improve labor productivity, land output rate, and resource utilization rate, so as to ensure agricultural land use; and focus on supporting the development of large-scale grain production. (3) Standardize and guide the orderly transfer rural land management rights. (i) Encourage innovation in the form of land transfer. Contracted farmers are encouraged to transfer contracted land by means of subcontracting, leasing, exchange, transfer, and purchase of shares in accordance with the law. Conditional localities will be encouraged to formulate supportive policies to guide farmers to transfer contracted land for a long time and promote their transfer of employment. Farmers are encouraged to exchange on a voluntary basis and solve the problems of fine fragmentation of contracted land locally. Under the same conditions, the members of the collective economic organization shall have the priority of land transfer. The way of contracted land transfer shall in principle be carried out among the members of the collective economic organization and shall be subject to the consent of the contracting party. The other way of contracted land transfer shall be reported to the contracting party for the record in accordance with the law. The study and exploration of the mutual right relationship and concrete realization forms of collective ownership, farm HH contract right, and land management right in land transfer shall be paid close attention. In accordance with the unified arrangements throughout the country, it shall steadily promote the pilot project of mortgage and guarantee of land management right; study and formulate unified and standardized implementation methods; and explore the establishment of a processing mechanism for mortgage assets; (ii) Strictly standardize the behavior of land transfer. The right of contracted management of land belongs to the farm HH. Whether the land is transferred, how to determine the price and how to choose the form should be decided by the contracted farmers; and the income should be owned by the contracted farmers. The duration for land transfer shall be determined through consultation between the two parties within the limits prescribed by law. Without the written entrustment of farmers, rural grass-roots organizations do not have the rights to decide in any way of land transfer or by the name of the minority subordinated to the majority to contract land for foreign investment and management. It shall prevent minority junior management from taking advantage of their own interests and seek personal benefits. It is forbidden to promote land transfer through setting tasks and indicators or proportion of land transfer into performance index.

4．Land Use Right Transfer Scheme for the Project 4.1 Main Principles of the Land Use Right Transfer

12. In line with the Administrative Measures for the Transfer of Contracted Management Rights of Rural Land (Decree [2005] No.47 of the Ministry of Agriculture of the PRC), the Wetland component of the project will lease the land and obtain the land use right from the villagers based on four principles: (i) equal consultation, (ii) legality, (iii) voluntarily, and (iv) compensation. Any institute and/or individual shall not force or obstruct the contracting party

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(farmers who contracted the land from collective) to transfer its contracted land in accordance with the law. Disputes arising in the transfer of land contracted management rights shall be negotiated and settled by the two parties in accordance with the law. Where the parties cannot negotiate, the villagers committee and the township (town) government shall be requested to mediate. If the parties do not want to negotiate or mediate, they may apply for arbitration to the rural land contract arbitration institution or directly to the people’s court.

13. This LURT Framework aims to (i) help the project implementing agency (IA), the Zhaotong PMO; and the project implementing unit (PIU), the Ludian County Water Conservancy Bureau, manage the LURT; as well as mitigate, monitor, and report potential negative impacts caused by the LURT; and (ii) satisfy ADB’s requirements and relevant law and regulations of the PRC. The LURT Framework guiding principles are as follows:

(1) Equality, voluntary, legal procedure, and fair compensation. Equality means both of parties have equal legal status. Voluntary means the transfer of land contracting management right must be completely voluntary for both parties, and one party shall not force another party to transfer or accept transfer of land. Legal procedure means that the LURT must be concluded per legal procedure with legal agreement. Fair compensation means the transferred land shall be compensated at negotiated market price. (2) Unchanged ownership and agricultural use of transferred land. The LURT means transferring use right, not ownership. Therefore, ownership of transferred land shall remain unchanged; and yet, future users of transferred land shall not change the agricultural land use nature (including farming, forestry, animal husbandry, and fishery), i.e., shall not convert transferred land for non-agricultural uses (e.g., roads, buildings and other structures). (3) Government’s direction and administration. Department of agriculture of the county government shall direct and administer the legal transfer of rural land. (4) Conflict resolution through the grievance redress mechanism. The grievance redress system of the Project counties shall be used to resolve complaints and conflicts, if any.

4.2 Institutional Arrangement and Responsibility

14. According to relevant laws and regulations, relevant county, and township governments should manage and guide the rural LURT in their administrative areas.

(1) Responsibilities of the Zhaotong City PMO:

(i) Publicize the rural LURT policies; (ii) direct the LURT legally and orderly; (iii) guide disputes arbitration and resolution; (iv) strengthen and standardize the rural LURT; and (v) put forward solutions to problems in the LURT, and develop a detailed mechanism for the LURT.

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(2) Responsibilities of the Ludian County Government: (i) direct rural LURT and contracting; (ii) set up a service center for the LURT; and establish information network platform, online trading, and/or open trading of land to be transferred; (iii) accept, manage, and guide the application from rural LURT agencies; (iv) settle the disputes; and (v) provide consultation services for the LURT policies.

(3) Responsibilities of the township (town) government:

(i) conduct information collection, analysis, and disclosure so that the LURT can be carried out at the county or at the township; (ii) provide a standard contract for parties who have reached agreements on contract conditions and terms, and assisting them to sign the contract; (iii) function as a third party to endorse the signed contract; (iv) formulate a system for registering the rural LURT, and record the relevant information timely and exactly; (v) document the LURT materials; (vi) investigate and rectify the illegal LURT; (vii) settle disputes about rural LURT; (viii) guide and administer the LURT legally; and (ix) provide consultancy services.

(4) Responsibilities of village committee:

(i) disclose the LURT to farmers, (ii) conduct information collection and classification on the LURT to be reported to the township government, and (iii) assist the township in settling disputes.

(5) Responsibilities of the Ludian County PMO: (i) supervise contract execution; (ii) supervise the transfer of basic farmland does not change the nature of cultivated land; (iii) monitor the mode of farmland use to achieve the desired objectives of the project; and (iv) participate in conflict and/or dispute resolution at county level, if not resolved at township level.

15. In specific, the roles of main participants are summarized as follows:

(1) Transferors of the land use rights transfer. Include a total of 115 HHs in the Ludian County, particularly the Tiechang Community of Shuimo Town; and the Longshu and Longxiang communities and the Zhaobi Village of Longshu Town. The rights of the transferors include the following: (i) receive the LURT fee as agreed in the LURT Agreement; (ii) supervise transferees to use the transferred farmland in accordance with the land use purpose agreed in the Agreement; (iii) after the expiration or termination of the Agreement, supervise transferees to restore and recover the transferred farmland that needs to be returned; and (iv) during the resumption of transferred farmland, note that

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transferors have public priority. Obligations include the following: (i) assist transferees in the use of the transferred farmland in accordance with the Agreement; and help coordinate any disputes between other farmers in the same village group in the aspects of water, electricity, public security, and so on; and (ii) transferees shall not be interfered in the normal production and business activities, and the land transferred to transferees shall not be used or occupied by other parties in any form. (2) Transferees of the land use rights transfer. The Ludian County Water Conservancy Bureau, the PIU, notes the rights of the transferees which include (i) the right of independent production and operation, management, and handling products and income on the transferred farmland; and (ii) if the transferred farmland is acquired or occupied in accordance with relevant laws and results in economic losses, transferees shall have the right to receive corresponding compensation. Obligations include the following: (i) engage in production and business activities within the scope of national laws, regulations, and policies; and pay the LURT fees in full and on time in accordance with the provisions of the LURT Agreement; (ii) no unauthorized change of use of the transferred farmland shall be allowed; (iii) the transferred farmland shall be protected during the contract period, and shall not be damaged; (iv) after the expiration or termination of the Agreement, if it causes damage to the transferred farmland, transferees must be responsible for the restoration of the transferred farmland; (v) transferees shall bear its own responsibility for strengthening production safety and preventing the occurrence of accidents, if losses are caused as a result of the accident; and (vi) when the land use right is changed, the transferor shall be informed of the relevant matters. (3) Ludian County Natural Resources Bureau (formerly the Land Bureau) provides policy guidance to ensure compliance with policies related to the LURT and the legitimacy of the project land, and assist both parties in measuring and confirming the farmland area to be transferred.

4.3 Methods of the Land Use Right Transfer

16. The Ludian County Water Conservancy Bureau, with the assistance of the Ludian County Natural Resources Bureau; and the Longshu and Shuimo Town Governments, is responsible for the farm LURT, management, and related affairs of the project. It takes the villager group as the collective unit and carries on the farm LURT in a way of “one discussion for one matter.”

(1) Method one. For the villager group with more than five HHs to transfer their farmland use right, the LURT will be based on the village group; and firstly, the affected HHs (AHs) will sign the transfer entrustment agreement; or issue the power of attorney with the villager group; and then, the latter will sign the standard LURT agreement with the transferees of the PIU; and (2) Method two. For the villager group with less than five HHs to transfer their farmland, the LURT will be based on the AHs; and each AH will directly sign the land transfer agreement with the PIU.

4.4 Measures to Safeguard Interests of Contract Parties

17. The following measures will be taken to safeguard the interests of contract parties:

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(1) In case of severe damage of transferred land due to natural disasters or force majeure during the contract term, both parties can terminate or change the contract through negotiation; and the land shall be returned to the original users for cultivation; and when there are specific contract provisions on severe damage of land, the provisions prevail; (2) Contract agreement to spell out policy subsidies to farmers for grain production and production masteries; (3) All land-leasing contracts will be signed by both husband and wife in case of involving individual HHs; (4) Contract endorsement by township free of charge; (5) According to the Rural Land Contract Law and the Rural Land Management Right Transfer Management Method of the PRC and other relevant LURT laws and regulations of the Yunnan Province and counties, the LURT duration shall be negotiated equally by both parties; but within the limit of the rural land contract (duration from 1998–2028 and then 2028–2058); and (6) The LURT rate will be ensured according to land type, feasibility, grade, and condition of referential corps; or even the price of the LURT in nearby villages. Taking farmer’s interest into consideration, both transferor and transferee should set a time to adjust the land price in case of the LURT for over 3 years. It is recommended to adjust the rate after 3 years.

4.5 Land Use Rights Transfer Contract

18. The LURT contract shall include the following clauses:

(1) names and domiciles of transferor and transferee; (2) location, borders, area, and quality of the land for transferring; (3) term of transfer and dates of beginning and completion; (4) ways of transfer; (5) usage of land; (6) rights and obligations of two parties; (7) the LURT expense and method of payment; (8) handling of assets and relevant facilities after expiration of contract; (9) liabilities for breach of the contract; (10) method of conflict resolution; (11) other clause that both parties thought necessary; (12) stamping of endorsing agency; and (13) date of contract conclusion. 4.6 Rental Standards, Assistance Measures, Adjustment Mechanism, and Payment Method of the Land Use Right Transfer

19. In view of the basic farmland involved in the LURT through consultation with the local villagers, the government, and the land management department, the transfer and use of the basic farmland is adopted. The leaders of each villager group will organize affected farmers, reach an agreement, and form the LURT agreement. The affected farmland is local basic farmland, and the market land transfer price is 600–700 yuan/mu. The transfer rental of this project is slightly higher than the market price, which is 800 yuan/mu/year as the baseline

P 123 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan standard of initial transfer rental. Involved farmers have been consulted on the land transfer price during project preparation. The final rates will be determined based on the further consultation and negotiation results during implementation. In the future, the rental is floated every 3 years; and it is tentatively agreed that the uplift rate will be calculated at 50 yuan/mu. That is, the transfer fee for the first 3 years is 800 yuan * 3 years = 2,400 yuan; the second 3 years is 850 yuan *3 years = 2,550 yuan; the third 3 years is 900 yuan * 3 years = 2,700 yuan; and so on. The first phase of the land transfer agreement will sign for 15 years (that is, from January 1, 2020 to December 31, 2034). The total land transfer fee for 15 years is 13,500 yuan/mu, and the LURT rent fee will be fixed at the expiration of the first 15-year agreement according to the price level. The transfer fee will be paid for every 3 years.

20. According to this calculation, the LURT rental for each villager group is shown in Table 4- 1. Table 4-1: Land Use Right Transfer Rental Standard and Quantity

Proposed Total Rent for Involved LURT Area 15 Years Transfer Village Group Land Type Households (mu) (yuan/mu) Method Cultivated Liangzishang 10 30.00 Group Tiechang land Community Cultivated Sanhechang 12 31.63 Group land Cultivated 18 24 88.03 Group land Zhaobi Village Cultivated 19 30 101.00 Group land Cultivated 16 3 10.00 Individual land Cultivated 17 2 16.00 Individual Longshu land Community Cultivated 18 1 10.00 13,500 Individual land Cultivated 19 4 14.81 Individual land Cultivated 11 6 21.00 Group land Cultivated 12 5 23.00 Individual land Longxiang Cultivated 13 6 32.00 Group Community land Cultivated 14 8 25.00 Group land Cultivated 15 4 14.02 Individual land Subtotal 115 416.49 Note: The LURT rental will be increased in 50 yuan/mu in every 3 years.

21. Bank transfer payment. With the assistance of the Ludian County PMO, the Ludian County Water Conservancy Bureau is responsible for signing the LURT agreements with affected farmers. At the same time, the Ludian County PMO formulates the LURT fund allocation plan and the preliminary management of the AHs’ information. After the implementation of the project, the Ludian County Finance Bureau, in accordance with the LURT schedule of the Ludian County PMO; and the capital allocation documents of the Ludian County Water Conservancy Bureau, shall allocate through the Ludian County Finance Bureau the funds to the Longshu and Shuimo Town Governments; and then, the towns will disburse the LURT rentals directly to the AHs’ bank account. It is disbursed to the account in every 3

P 124 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan years; that is, the payment of the LURT rentals for the next 3 years will be paid before 1 January of each payment year (the LURT rentals are paid first; and then, land is used).

22. During the LURT, if there are young crops or ground attachments to be affected, the compensation needs to be paid to involved farmers by local governments using the contingency in resettlement budget. The compensation standards are based on the standards in section 5 in the RP.

23. It is expected that all involved HHs will not face any negative impacts and income loss after the LURT, which is based on voluntary consultation and negotiation. However, to implement the LURT and project implementation in a timely and smooth manner, local governments committed that the HHs involved in the LURT are also eligible to the restoration and/or livelihood programs; and project-related employment opportunities stipulated in section 6 in the main text of the RP, similar to the affected persons under the PLA. Moreover, the vulnerable HHs will be identified and assessed during the LURT through the similar procedures in subsection 2.3.7 in the RP. The vulnerable HHs will be provided with priorities to participate in the LURT, and benefit from the Project and the livelihood and income restoration programs planned in the RP and this LURT framework.

5．Land Use Rights Transfer Implementation Procedures and Schedules 5.1 Land Use Rights Transfer Implementation Procedures

24. The detailed LURT implementation procedures are presented in following flow chart:

(1) Information collection. Farmers with intention to transfer land use right present the details of the land, like location, area, usage, and reference price to village committee, which will then report to the township government. They can also entrust the contracted or intermediary organizations to transfer their land use right; and the letter of attorney will be issued by land transferee, illustrating the entrusted matters, authority and deadlines, etc., with the signature of the principal. (2) Information disclosure. The township government, after collecting data, will sort out information about the LURT of different villages; and establish a database. The sorted information will be disclosed timely. The township station will also report to the county government for updating the LURT databases. (3) Negotiation between transferor and transferee. With the arrangement of the township government, both sides negotiate about the LURT conditions and price based on the principle of equality, voluntariness, and mutual benefiting. (4) Signing the land use rights transfer contract. When both parties agree on conditions and price, the township government provides 4–5 copies of a standard contract (the fifth copy for endorsement), for both parties to sign.3 The contacts will be signed by all AHs, and it should be by both spouses in each HHs. (5) Endorsing the land use rights transfer contract. The township government endorses the contract.

3 Standard contract was developed by the provincial agricultural department.

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(6) Registration for the land use rights transfer. The township government registers the LURT information timely and exactly, and submits the relevant materials to the county government for documentation. (7) Documentation. The county government documents all relevant materials for land use rights transferred. The Ludian County PMO can acquire the documentation from the agriculture bureaus. (8) Supervising contract implementation. Both parties should perform the contract positively, and the township government supervises the contract execution. In case of conflicts or disputes, the township government will timely report to the county government; and the latter will inform the Ludian County PMO.

Figure 5-1: Land Use Rights Transfer Procedure Chart

5.2 Schedule

25. The LURT schedule and work plan is presented in Table 5-1. Table 5-1: Land Use Rights Transfer Implementation Schedule

Responsible Specific Agency/ Time Activities Status Agencies Involved person Topics Zhaotong Discussed project Owners; Natural Asian contents and Determine area Resources Bureau; and Development involved area, May 2019 of land use right Completed affected towns, Bank (ADB) farmland use transfer villages, groups, and project right to be contractors management transferred,

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Responsible Specific Agency/ Time Activities Status Agencies Involved person Topics office willingness for the (PMO)/Cui land use rights Yuanlei transfer (LURT), and the LURT policies Ludian County Water Conservancy Bureau; Natural Resources Town Estimation of the Land survey for Bureau; Zhaotong ADB Leader/Shen September actual land use each household Completed PMO; Longshu Town Jichao 2019 right area to be (HH) and Shuimo Town Jiang involved Governments; and Kaimou affected villages, groups, and HHs (AHs) Ludian County Water Resources Bureau; Ludian County Sign agreement Zhaotong ADB PMO; Water Details of the for each HH on Ludian County Land Conservancy LURT agreement, November basis of To be Resources Bureau; Bureau/Li including 2020 voluntary and done Longshu and Shuimo Xinggui payment equal Town Governments; assisted by the standard; negotiation and affected villages township method; and time and groups and the governments AHs Payment of the Ludian County Finance first land Town Bureau, Zhaotong ADB From April transfer fee To be Leader/Shen PMO, Longshu and 2021 following the done Jichao Shuimo Town signed LURT Jiang Kaimou Governments agreements

6. Budget and Sources 6.1 Budget for the Land Use Right Transfer

26. The total budget of the LURT for the project is 5.6226 million yuan (0.832 yuan for the LURT in Shuimo Town and 4.7906 million yuan for the LURT in Longshu Town). In addition, the other related expense is 5.4% of the LURT budget; and the contingency is 10% of the LURT budget. All these budgets are included in the cost estimation in the RP and overall investment of the project. See Table 6-1 for details. Table 6-1: Budget for the Land Use Right Transfer

Year 2020–2034 (10,000 yuan) Town / Area for Community / Group Land 2020- 2022- 2025- 2028- 2032- Total Village Transfer 2022 2025 2028 2031 2034

Shuimo Town 61.63 14.79 15.72 16.64 17.56 18.49 83.20 Tiechang Sanhechang 31.63 7.59 8.07 8.54 9.01 9.49 42.70 Community Liangzishang 30.00 7.20 7.65 8.10 8.55 9.00 40.50 Longshu Town 354.86 85.17 90.49 95.81 101.14 106.46 479.06 11 21.00 5.04 5.36 5.67 5.99 6.30 28.35 12 23.00 5.52 5.87 6.21 6.56 6.90 31.05 Longxiang 13 32.00 7.68 8.16 8.64 9.12 9.60 43.20 Community 14 25.00 6.00 6.38 6.75 7.13 7.50 33.75 15 14.02 3.36 3.58 3.79 4.00 4.21 18.93

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Year 2020–2034 (10,000 yuan) Town / Area for Community / Group Land 2020- 2022- 2025- 2028- 2032- Total Village Transfer 2022 2025 2028 2031 2034

16 10.00 2.40 2.55 2.70 2.85 3.00 13.50 Longshu 17 16.00 3.84 4.08 4.32 4.56 4.80 21.60 Community 18 10.00 2.40 2.55 2.70 2.85 3.00 13.50 19 14.81 3.55 3.78 4.00 4.22 4.44 19.99 18 88.03 21.13 22.45 23.77 25.09 26.41 118.84 Zhaobi Village 19 101.00 24.24 25.76 27.27 28.79 30.30 136.35 Subtotal 416.49 99.96 106.20 112.45 118.70 124.95 562.26

6.2 Funds Sources

27. It is agreed that the land transfer fees will be financed by the Ludian County Government. After the expiration of the 15-year payment period, the local government shall sign the LURT agreement, including the payment with the AHs in accordance with the LURT policy to ensure the project sustainability. 7. Information Disclosure, Consultation and Public Participation, and Grievance Redress Mechanism 7.1 Information Disclosure, Consultation, and Public Participation During Project Preparation

28. During the preparation of the project since April 2019, the project design institution (Xinjiang Production Corporation Survey and Design Institute [Group] Co., Ltd.) and its LA survey team have conducted a series of socioeconomic surveys and public consultations (48% of women participated); and the Zhaotong PMO, the IAs, and the design agencies have conducted extensive consultations on the LURT of the project. In May 2019, the survey team conducted an in-depth survey of the project area and a sample survey on the socioeconomic situation of the HHs in the project area and willingness to transfer their farmland. A total of 35 HHs (30.4%of involved HHs) were sampled. Discussions were held in the relevant subdistricts, towns, and villages to further confirm the relevant LURT policies. In-depth interviews were conducted with representatives of the involved HHs to understand their support for project construction and willingness to the LURT. Table 7-1: Involved Households Surveyed for the Land Use Right Transfer

Surveyed HHs Surveyed Proportion Township/Town Village Total Land Use Rights Transfer (LURT) Households (HHs) HHs (%) Shuimo Town Tiechang Community 22 7 31.8% Longshu Village 29 9 31.0% Longshu Village 10 3 30.0% Longshu Town Zhaobi Village 54 16 29.6% Total 115 35 30.4%

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Table 7-2: Public Participation Activities during Project Preparation

Measures Taken Number of in Project Design Women Topic/ and/or Resettle- Content Form Date Participants Participants Objective Concerns ment Plan 20 cadres and Discuss the The LURT Focus on villagers’ land use framework was Community Apr 17– land transfer Meeting representatives 9 rights prepared to guide Meetings 19, 2019 rental and from 3 villages transfer the LURT transparency affected (LURT) implementation. Discussion with the The project project management Discuss implementing Pay attention office (PMO) specific unit (PIU), April 21, Officers from to the LURT coordinates with Meeting 2 operation the Ludian 2019 the bureau funds in the Finance methods of County place Bureau to ensure the LURT Water that the funds are Conservancy in place. Bureau 100% of According to the interviewed Household Of the 127 The LURT villagers’ Of the 115 HHs HHs are (HH) Questionnaire May 10– people in 35 rental and requirements, involved, 35 willing to Sampling Survey 20, 2019 HHs, 59 were payment rentals are paid were sampled transfer Survey women time once every 3 land use years. right Understand Agree with land 14 village the LURT Village benefits Rental is slightly May 10– cadres in the 7 and pay Cadres Interview 3 and higher than current 17, 2019 affected attention to Interview suggestions market price villages rental for the transfer LURT

29. Villager group meeting. The background of the project was introduced to the representatives of the villager groups, including the content of the project; the necessity of implementation and the possible impact of the project; and possible LURT rental standards. The participants included representatives of involved villagers, women, town governments, and village cadres. Two meetings were held in two villager groups with 20 participants, of whom 9 were women. All participants in the discussion agreed to the LURT scheme and the LURT rental standard. The village committee and/or community issued a letter of intent to the LURT, see Appendix.

30. Discussion with village community cadres. The overall social and economic situation of the village community collective was discussed. The participants agreed with the necessity of environmental rehabilitation, supported the LURT for the project, and thought that the LURT rental standard which is slightly higher than the market price is not only reasonable; but also easy for farmers to accept and the implementation of the project.

31. Household sampling questionnaire survey. In May 2019, the survey team conducted a HH questionnaire survey.

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Figure 7-1: Photos of Public Consultation with Involved Farmers

32. The survey team selected a valid sample of 35 HHs for interviews. 91% of the respondents knew the project, 6% did not know much about the project, and 1% did not know the project. Almost all HHs surveyed supported LURT for the construction of the project, and no HHs surveyed opposed the land transfer. 3% of people are indifferent to the LURT in the construction of the project. Interviewed participants agreeing to provide their farmland use right for the project hope to receiving fare rental in time based on agreements, and the rental have a certain increase during LURT period change in every 3 years. The survey of the respondents is shown in Table 7-3. Table 7-3: Public Consultation Survey on the Land Use Right Transfer

Proportion Households (%) No. Question Answer 1 2 3 Total Are you aware that the environmental 1.Yes 2. Not sure 1 91% 6.0% 3.0% 100% improvement project will be built? 3. No 1. Yes 2. No 3. 2 Are you in favor of this project? 97% 0.0% 3.0% 100% Does not matter a) Country: 100% 0.0% 0.0% 100% 1. Yes 2. No Who do you think is beneficial to the b) Collective: 3 construction of this project (multiple 100% 0.0% 0.0% 100% 1. Yes 2. No options)? c) Individual: 100% 0.0% 0.0% 100% 1.Yes 2.No Do you know anything about the land use 4 1.Yes 2. No 97% 3.0% 0.0% 100% right transfer policy? Are you willing to transfer land use right to 5 1.Yes 2. No 100% 0.0% 0.0% 100% support the project? If there is anything unsatisfactory in the process of the land use right transfer, do 6 1.Yes 2. No 97% 3.0% 0.0% 100% you know where you are looking for a response? 7.2 Information Disclosure, Consultation, and Participation Plan During Implementation

33. With the continuous progress of the preparation and implementation of the project, the project IAs will carry out further information disclosure, consultation, negotiation, and public participation. Details of the plan are show in Table 7-4.

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Table 7-4: Public Consultation, Negotiation, and Participation During Implementation

Responsible Purpose Method Timeline Participant Topic/Content Unit Land/natural Online Dissemination resources publish, All involved Disclosure of of land use November bureau, distribution of households information such as right transfer 2020 subdistrict and information (HHs) rental policies (LURT) plan town book governments Land/natural All involved resources HHs Announcement of area Notice for the Village notices December bureau, of the LURT, standard LURT and villagers’ 2020 subdistrict and of rental and method of agreement meetings town payment, etc. governments Field 1. Check and confirm investigation, Land/natural the final amount of land, signature and resources 2. List of land area and Physical approval of January bureau, All involved assets involved, and measurement the involved 2021 subdistrict and HHs 3. Preparation of the HHs, town basic contract for the publication of governments LURT agreement the list Publicity of training Villagers’ February Township/Town, All involved policy, training content, Training plan Congress 2021 village cadres HHs and ways of training participation 115 HHs (417 1) Progress and people) in implementation of LURT Villagers’ Jan 2021– communities of All involved 2)Payment of LURT Monitor participation in Dec 2025 Longshu and HHs rentals the meeting Longxiang, and 3) Information Zhaobi Village disclosure 7.3 Grievance and Redress Mechanism

34. Public participation is encouraged in the preparation and implementation of the LURT process; and so, great controversy may not arise during the LURT implementation. However, there will be some unforeseen issues in the implementation, e.g., involved farmers may like to terminate the LURT agreements before agreed time. To solve the issue effectively and ensure the successful implementation of the project and the LURT, the project has established a transparent and effective channel of the GRM. The relevant agencies will receive complaint and appeal from the farmers as free. In the process of project implementation, the GRM needs to keep effective, so that the farmers can request to solve relevant complaints or appeals in a timely manner. The GRM have been informed to the public at the information disclosure meeting, and the information manual has been issued. At the same time, the procedures for complaints and appeal have been publicized to the farmers through the media. The GRM is as follows:

(1) Stage 1. If any farmer is unsatisfied with the negotiation and implementation of the LURT agreements, he/she may make an oral or written complaint with the village committee; and in the case of an oral complaint, it shall be dealt with by the village committee and recorded in writing. The village committee shall resolve it within 1 week;

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(2) Stage 2. If the affected farmer is unsatisfied with the decision of Stage 1, he or she may make a complaint with the subdistrict or town government, and the subdistrict and town government shall resolve it within 2 weeks. (3) Stage 3. If the affected farmer is unsatisfied with the decision of Stage 2, he or she may file an oral or write complaint with the Ludian County PMO. In the case of oral complaints, the PMO shall handle them; and record them in writing. The PMO shall resolve it within 2 weeks. (4) Stage 4. If the affected farmer is still not satisfied with the decision of stage 3, he or she may file a complaint with Zhaotong Natural Resources Bureau and/or the Zhaotong PMO on the negotiation and implementation of the LURT agreements; and request administrative arbitration in accordance with the relevant laws and regulations of the State and Yunnan Province. The administrative arbitration institution shall make an arbitration decision within 4 weeks.

35. In addition, according to the applicable laws and regulations, the affected farmers may also bring a lawsuit directly to the people’s court at any time (not subject to the restrictions of the first three stages) against any aspect of the LURT. All complaints and solutions will be reported to and recorded by the Zhaotong PMO.

36. Involved persons may also complain about any aspects of the LURT, including land rental rates, etc., to the Zhaotong PMO, an external monitoring and evaluation agency. Affected persons can also submit complaints to ADB which will first be handled by the project team. If an involved person is still not satisfied and believes he/she has been harmed due to non- compliance with ADB’s policy, he/she may submit a complaint to ADB’s Accountability Mechanism.4

37. The affected farmers may make a complaint against any aspect of the LURT, including the rental standard or compensation, etc. The above-mentioned channels of complaint and the name, place, responsible person, and contact number of the receiving agencies will be informed to farmers through meetings, announcements, and information booklets so that farmers will be fully aware of their right to appeal. Table 7-4: Key Contacts of Relevant Departments

Department Name Title Tel. Ludian County Natural Resources Bureau Office 0870-2221057 Zhaotong ADB PMO Cui Yuanlei Contact person 13648706065 Ludian County Water Conservancy Ludian County Water Wang Zhengqi 13887083211 Bureau Resources Bureau Ludian County ADB PMO Wang Fangxing Ludian County PMO 13508705136 Longshu Town Shen Jichao Town Mayor 13887076566 Shuimo Town Jiang Kaimo Town Mayor 13887090729 Tiechang Community Committee Wu qixiang Branch Secretary 13408821588 Zhaobi Village Committee Ma Yonghu Branch Secretary 13887052385 Longxiang Community Committee Ding Shicang Branch Secretary 15808630619

4 For further information, see: http://www.adb.org/Accountability-Mechanism

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8. Monitoring and Evaluation

38. To ensure that the LURT work is implemented smoothly as planned, an internal monitoring will be conducted by the Zhaotong PMO and the Ludian County PMO. In addition, an external monitoring and evaluation (M&E) will be conducted by an external agency that will be recruited by the Zhaotong PMO before the LURT work commenced. These M&E will be integrated in comprehensive social monitoring reports, together with the M&E of the RP, the ethnic minority development plan, and social development and gender action plans during project implementation.

8.1 Internal Monitoring 8.1.1 Implementation Procedures

39. The Zhaotong PMO and the Ludian County PMO will appoint staff responsible for the internal monitoring during the LURT implementation. The staff will be trained on ADB’s policies and/or good practices and the State laws and regulation related to the LURT. The specialists from the project management consultant to be recruited at beginning of the project implementation will provide the training and guide the PMOs to conduct the internal monitoring.

40. The public participation and consultation on the LURT, farmland rental standards, the LURT agreement negotiation, and payment of the farmland rentals, etc. will be monitored; and an internal monitoring report will be submitted together with the project progress report to ADB semiannually.

8.1.2 Monitoring Content (1) Implementation status of information disclosure, public consultation, and negotiation on the LURT; (2) Implementation status and actual progress of the LURT during project implementation; (3) Investigation, coordination, and suggestions on any problems from the affected farmers and the IAs in the process of implementation; (4) Sign of legal LURT agreements; (5) Whether the HHs economic income after the LURT is affected; (6) Any impact on vulnerable groups by the LURT; (7) Whether the LURT farmland has changed the land use and nature; (8) Payment and availability of funds for the LURT; (9) The number of people who have been trained and the number of participants; (10) Training and arrangement of implementation and management agencies and personnel; (11) Complaints and appeals (if any) as well as the grievance redressing results; and (12) Involved the HHs’ views and satisfaction levels on the LURT. 8.1.3 Internal Monitoring Report

41. The Zhaotong PMO will submit to ADB the internal monitoring report on the LURT as an integral part of the project progress report. The report needs to include progress of the the LURT implementation for the past 6 months.

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8.2 External Monitoring

42. In accordance with the requirements of ADB, the Zhaotong PMO will engage a qualified external agency to take the responsibility of external M&E for the LURT (as part of the RP monitoring).

43. The external M&E agency will regularly monitor and evaluate the implementation activities of the LURT, progress, quality, funds, satisfaction and appeal cases, impacts, and livelihood recovery; put forward advice; and submit the M&E reports to the PMOs and ADB.

8.2.1 Contents and Methods of External Monitoring A. Baseline Survey

44. The external monitoring agency will conduct a baseline survey of the villages involved in the LURT of the project to obtain basic information on the production and living standards (living, production, and income levels) of the involved HHs being monitored. 5 A random sample of 20% of the HHs will be conducted, and a follow-up survey will be conducted over the next few years. This survey will be completed prior to the implementation of the LURT, and the contents of the baseline survey report can be included in the first external monitoring report. B. Regular Monitoring and Evaluation

45. During the implementation of the project, the external monitoring agency will carry out regular monitoring of the LURT twice a year through on-site survey, follow-up survey of sample HHs, and random interviews with the affected farmers. A follow-up survey of typical samples of 20% of all HHs, and 100% vulnerable group HHs will be selected. Based on this, statistical analysis is carried out; and evaluation is made. The following activities will be monitored: (1) payment and amount of the LURT fees (2) implementation and effectiveness of the training program (3) support for vulnerable groups (4) compensation for loss of properties (5) schedule of the above activities (applicable at any time) (6) organization of the LURT (7) impacts and livelihood restoration (8) the LURT agreement negotiation and satisfaction (9) whether the involved HHs benefit from the project (10) public consultation

46. The external monitoring agency will participate in public consultations to be held during the LURT implementation of the project. Through participation in these consultations, the external monitoring agency will evaluate the effectiveness of public participation and the LURT implementation effectiveness. The external monitor will also monitor, evaluate, and report on the key consultation meetings (including observing some of key consultations during negotiation) to assess if the LURT process is being followed.

5 The baseline data is mainly for monitoring the household socioeconomic status before and after project. It is also helpful to assess the quantitative benefit of the project, particularly from LURT.

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C. Complaint

47. The external monitoring agency will visit to involved villages regularly and interview with town governments and the IAs for any complaints. At the same time, they will also meet with any complaining persons; and put forward improvement measures and suggestions in view of the existing problems to make the implementation process of the LURT more effective.

8.2.2 External Monitoring Reporting Cycle

48. Based on the information obtained from monitoring and survey, the external monitoring agency will prepare external monitoring reports; and regularly submit reports to the PMOs and ADB. The monitoring will start in January 2021 and end with the completion of the LURT activities. The LURT external monitoring report will be one of chapters of the resettlement external monitoring report of the project.

49. After the completion of the project implementation based on the M&E, the LURT activities will be summarized and evaluated. The content of the evaluation mainly includes the successful experience of the LURT; and the lessons to be learned, which can be used for reference for the LURT in the future. The M&E will be integrated in comprehensive social monitoring reports. Table 8-1: Schedule of Comprehensive Social Monitoring and Evaluation

# Report Timeline Remarks Baseline survey and monitoring Including the baseline 1 2021 Jan report (No.1) survey report 2 Monitoring report (No.2) 2021 Jul Semi-annual report 3 Monitoring report (No.3) 2022 Jan Semi-annual report 4 Evaluation report (No.4) 2022 Jul Semi-annual report 5 Evaluation report (No.5) 2023 Jan Semi-annual report 6 Evaluation report (No.6) 2023 Jul Semi-annual report 7 Evaluation report (No.7) 2024 Jan Semi-annual report 8 Evaluation report (No.8) 2024 Jul Semi-annual report 9 Completion report (No.9) 2025 Dec Completion report

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ANNEX 1: Longshu Community’s Confirmation Letter on Interesting in Land User Right Transfer for the Project Translation of the Letter:

Opinions on Land User Right Transfer of Collective Land of Longshu Community for the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

Land transfer mode. The project does not acquire collective land; and according to the needs of the river basin management plan, it will improve the planting structure of collective land; and improve the farming mode and supporting infrastructure under the premise of complying with the land policy, so that the land planning functions can be achieved such as water and soil conservation; fertilizer control and emission reduction; and agricultural pollution reduction. Farmers enjoy the benefits of land planting structure adjustment and land transfer costs, bear the responsibility of maintaining planning measures, and cultivate and use land in accordance with planning requirements.

After soliciting opinions from the villagers involved in the village group, we hereby agree that the collective land of our village will be used for the proposed project. For the specific land use agreement of each village group, please refer to the agreements to be signed and confirmed by the farmers involved in each village group. Longshu Community, Longshu Township, Ludian County, Zhaotong City May 12, 2019

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ANNEX 2: Longxiang Community’s Confirmation Letter on Interesting in Land User Right Transfer for the Project Translation of the Letter:

Opinions on Land User Right Transfer of Collective Land of Longxiang Community for the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

The Yunnan Sayu River Basin Rural Water Pollution Management and Eco- Compensation Demonstration Project will manage and restore water resources in the Sayu River Basin by applying for the ADB loan, which will help absorb better management and development concepts and methods; and creatively drive the ecological protection of the reservoir area, the human settlement environment improvement, and the mass economy development in the reservoir area, so as to strengthen the comprehensive regulation of the water system; and the protection and restoration of the hydro-ecological environment. According to the overall plan of the project, the collective land in the Longxiang Community in Longshu Township of the Ludian County in Zhaotong City is to be involved. The form of land use is cooperative use of collective land. Land transfer mode. The project does not acquire collective land; and according to the needs of the river basin management plan, it will improve the planting structure of collective land; and improve the farming mode and supporting infrastructure under the premise of complying with the land policy, so that the land planning functions can be achieved such as water and soil conservation; fertilizer control and emission reduction; and agricultural pollution reduction. Farmers enjoy the benefits of land planting structure adjustment and land transfer costs, bear the responsibility of maintaining planning measures, and cultivate and use land in accordance with planning requirements. After soliciting opinions from the villagers involved in the village group, we hereby agree that the collective land of our village will be used for the proposed project. For the specific land use agreement of each village group, please refer to the agreements to be signed and confirmed by the farmers involved in each village group.

Longshu Community, Longshu Township, Ludian County, Zhaotong City May 12, 2019

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P 139 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

ANNEX 3: Zhaobi Village’s Confirmation Letter on Interesting in Land User Right Transfer for the Project Translation of the Letter:

Opinions on Land User Right Transfer of Collective Land of Zhaobi Village in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

After soliciting opinions from the villagers involved in the village group, we hereby agree that the collective land of our village will be used for the proposed project. For the specific land use agreement of each village group, please refer to the agreements to be signed and confirmed by the farmers involved in each village group. Zhaobi Village, Longshu Township, Ludian County, Zhaotong City May 17, 2019

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P 141 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

ANNEX 4: Tiechang’s Confirmation Letter on Interesting in Land User Right Transfer for the Project Translation of the Letter:

Opinions on Land User Right Transfer of Collective Land of Tiechang Community for the Yunnan Sayu River Basin Rural Water Pollution Management and Eco- Compensation Demonstration Project

Land transfer mode. The project does not acquire collective land; and according to the needs of the river basin management plan, it will improve the planting structure of collective land; nd improve the farming mode and supporting infrastructure under the premise of complying with the land policy, so that the land planning functions can be achieved such as water and soil conservation; fertilizer control and emission reduction; and agricultural pollution reduction. Farmers enjoy the benefits of land planting structure adjustment and land transfer costs, bear the responsibility of maintaining planning measures, and cultivate and use land in accordance with planning requirements.

After soliciting opinions from the villagers involved in the village group, we hereby agree that the collective land of our village will be used for the proposed project. For the specific land use agreement of each village group, please refer to the agreements to be signed and confirmed by the farmers involved in each village group. Tiechang Community, Shuimo Township, Ludian County, Zhaotong City May 17, 2019

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P 143 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Appendix II: Framework for Land Use for Ecological Farming or Forestry

Framework for Land Use for Ecological Farming or Forestry (LUEFF)

Zhaotong Municipal People’s Government

December 2019

P 144 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

1. Overview

1. The Asian Development Bank (ADB)-financed Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (hereinafter referred as “Project”) consists of four outputs, including (i) wastewater management and pollution control in the Sayu River Basin strengthened; (ii) water resources management in the Sayu River improved; (iii) eco-compensation mechanism for the Sayu River Basin established; and (iv) education, capacity, and public awareness for water pollution management strengthened. The project will be implemented in the Zhaoyang District and Ludian County of Zhaotong City in Yunnan Province of the People’s Republic of China (hereinafter referred as “PRC”).

2. The overall objective of the project is to improve the condition of water resources and environment in the Sayu River Basin in Zhaotong City. The outputs (i) and (ii) of the project involve civil works construction and land acquisition and resettlement (LAR) impacts, while the outputs (iii) and (iv) will not involve any LAR. An environmental and social management system has been prepared for the output (iii), including measures to screen and avoid the LAR impacts.

3. The land use for the project can be divided into five categories: (i) permanent land acquisition (PLA); (ii) state-owned land occupation; (iii) land use right transfer; (iv) land use for ecological farming or forestry (LUEFF); and (v) land use for rural public infrastructure. In addition, some temporary land occupation will be required during project construction. Seven components of the project and the land area to be used in the five methods by relevant components is summarized in Table 1-1.

Table 1-1: Land Areas in Different Types of Land Use

4. A resettlement plan (RP) has been prepared to manage the LAR impacts (PLA, SLO, and TLO) for the project. The frameworks for the LURT, the LUEFF, and the LURPI are prepared for voluntary land uses, respectively; and included as appendices in the RP.

5. Regarding the LUEFF, more than 25,000 mu is planned to be used for ecological forest planting, adjusting agricultural planting structure to reduce chemicals use; and controlling chemical fertilizers by using green and formula fertilizers. For this purpose, the land (to be operated by farmers themselves) will be used through voluntary agreements between the land

P 145 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan operators and project implementing units (PIUs) without changing the ownership and nature of the land. As an important measure under eco-compensation mechanism to be established during project implementation, the PIUs will provide subsidies to the involved farmers to promote the agricultural planting structure adjustment. To guide the operation of the LUEFF, this framework is prepared for the consultation, negotiation, implementation, and monitoring and/or reporting of such land use and subsidies. The voluntary agreements for the LUEFF will be prepared and finalized during the implementation of the project. The Zhaoyang District project management office (PMO) and the Ludian County PMO as the project implementing agencies (IAs) will sign the LUEFF agreements with involved farmers during the project implementation for the land use and provide subsidies to these farmers. The project township governments and village committees will assist in public consultation, agreement negotiation, and subsidy disbursement. The Zhaotong PMO will monitor and supervise the implementation of this LUEFF.

6. It is necessary to develop a framework for the LUEFF to ensure that the land use of the project is in line with the relevant land administration policies of the PRC and Zhaotong City as well as ADB’s good practices on voluntary land use arrangements. The Zhaotong PMO commits that the framework will be strictly followed throughout the land use process of the project.

2. Land Use for Ecological Farming or Forestry Scope

7. The components of (5) Quantifiable water and soil conservation model and (6) Promotion of low-emission agriculture of Output 1 of the project involve a total land use of 25,765.59 mu (operated by beneficiary farmers themselves), including 2,286.80 mu in Zhaoyang District; and 23,478.79 mu in Ludian County. It will involve 130 villager groups of 21 villages in 5 townships. It is expected that a total of 1,103 households (HHs) with 5,076 people will participate in the water and soil conservation and low-emission agriculture components after signing the LUEFF agreements. The land types are farmland and garden plot.

8. The land area of the LUEFF, involved villages, and number of involved HHs and people by the component are shown in Table 2-1 and Table 2-2.

Table 2-1: Involved Land Area for Land Use for Ecological Farming or Forestry by District and/or County

Component District/County Land Area (mu) Zhaoyang District 0.00 1. Quantifiable water and soil conservation model Ludian County 6,676.25 Zhaoyang District 2,286.80 2. Promotion of low-emission agriculture Ludian County 16,802.54 Zhaoyang District 2,286.80 Subtotal Ludian County 23,478.79 Total 25,765.59

P 146 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Table 2-2: Involved Land Area and Households for Land Use for Ecological Farming or Forestry by Village

Involved Household Involved Land Area (mu) Involved Village (HH)/persons Quanti- fiable water Per and soil Promotion Total capita conser- of low- popu- Number arable Village/ vation emission Total lation of poor land Town Community model agriculture Subtotal HH (person) HH (mu) HHs Persons Sayu Xinyingpan 564.18 564.18 768 3,389 3 1.63 27 126 Town Buchu Village 268.55 268.55 945 4,277 6 2.07 10 47 Sujia Guazhai Town- 283.99 283.99 655 2,875 1 2.32 9 44 Village ship Sujia Village 1,170.08 1,170.08 829 3,864 2.58 35 165 Shanqiao 300.15 473.25 773.40 738 3,610 1.15 38 175 Village Xinjie 246.40 2,751.08 2,997.48 1,580 6,825 1.35 170 771 Xinjie Community Town Pingdiying 3,114.91 3,114.91 720 3,171 9 1.86 57 265 Jiufang 182.62 850.50 1,033.12 983 4,692 3 1.01 70 323 Village Longxiang 3,009.81 3,009.81 2,252 9,951 26 1.30 188 847 Community Guzhai 1,028.10 1,028.10 720 3,428 9 1.65 49 227 Community Longsh Zhaobi 626.19 1,686.66 2,312.85 1,375 6,594 20 1.20 124 571 u Town Village Xinle Village 200.61 1,632.66 1,833.27 2,499 11,482 12 1.26 106 491 Jintang 74.1 986.30 1,060.4 682 3,136 8 1.93 41 192 Community Xinpeng 760.97 760.97 893 4,295 10 2.10 28 132 Village Tiechang 430.11 1,000.00 1,430.11 803 3,633 8 2.22 43 200 Shuimo Community Town Shuimo 607 2,623.21 3,230.21 1,532 7,189 13 2.57 92 425 Village Huangnizhai 894.16 894.16 615 2,897 8 3.20 16 75 Village

Total 6,676.25 19,089.34 25,765.59 1,103 5,076

P 147 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

3. Program for the Land Use for Ecological Farming or Forestry (LUEFF) 3.1 Principles of the Land Use for Ecological Farming or Forestry

9. Following principles will be followed during consultation, negotiation, and implementation of the LUEFF:

(1) Adhere to the collective ownership of rural land, stabilize the contractual rights of farmers, and release the right to operate land. Based on the HH contract management, the government will promote the common development of various modes of operation such as family management; collective management; cooperative operation; and enterprise management; and

(2) Adhere to the law, voluntariness, and compensation. With the farmers as the main body and the government’s support and guidance, the market allocate resources; and the land use agreements shall not violate the will of the contracted farmers, and shall not damage the rights and interests of the farmers; and at the same time improve the comprehensive agricultural production capacity, and improve the agricultural and ecological environment. 3.2 Method of Reaching Agreements for Land Use for Ecological Farming Forestry

10. The Zhaoyang District PMO, the Ludian County PMOs, and involved township governments are responsible for consultation, negotiation, and signing the LUEFF agreements for the project. The PMOs will consult opinions of involved villager groups, calculate the unit price of ecological compensation subsidy, take the village groups as a collective units to widely publicize the planning and objectives of the project, and extensively consult on subsidy mechanisms for the land use. The villager groups will discuss with villagers and reach consensus through villager group meetings to ensure the smooth use of the land.

11. During project implementation, the township governments are responsible for measuring the scope of land, confirming involved HHs, and signing the land use agreements with involved HHs. Farmers will enjoy benefits from improved agricultural planting structures and upgraded infrastructures; and at the same time, they will comply with the agreements; and undertake the obligation to maintain the infrastructures financed by local governments. The farmers, who are interested in the LUEFF, will first sign an entrustment agreement; or issue a power of attorney on land use with their village committees upon their own will; and then, the village committees will sign an LUEFF agreement with the county and/or district PMO.

3.3 Modes of the Land Use for Ecological Farming or Forestry

12. After the LUEFF agreements are signed, the specific land use modes include

(1) For quantifiable water and soil conservation model component: (i) converting farmland to forestland—This artificial afforestation needs to transform the existing sloping farmland into forestland; thereby, reducing soil erosion caused by farming and rainfall convergence; and (ii) perennial herb planting—For the sloping farmland where the soil erosion in the project area is relatively serious, the farmland cannot be re-cultivated; and the arable

P 148 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

land property cannot be changed; and so, the planting crop is adjusted to perennial Chinese herbal medicine; and

(2) For promotion of low-emission agriculture component: (i) agronomic measures—mainly adopting the (a) potato intercropping + winter filling mode, (b) potato intercropping demonstration mode, and (c) corn and/or potato cross slope ridge planting demonstration mode. Through demonstration, economic benefits will be increased; while agricultural nonpoint source pollution is reduced; (ii) fertilizer reduction subproject—Under the condition of guaranteeing existing income, farmers who increase the application of organic fertilizers will be compensated or subsidized; and farmers will be encouraged to use environment-friendly organic fertilizers; and (iii) pesticide reduction subproject—a demonstration area for pesticide reduction and control will be established in plateau characteristic agricultural industry demonstration zone in the five towns of Longshu, Sayu, Shuimo, Xinjie; and the Sujia Township in the runoff area of the Yudong Reservoir by means of government guidance and farmer participation; planting of disease-resistant varieties; use of physical protection measures, such as yellow boards; rebounds; insecticidal lamps; and other new bio-pesticide prevention measures, e.g., low toxicity and low organic phosphorus that are easily decomposed.

13. About 17 villages will be involved in the LUEFF, including the Jintang, Longxiang, and Xinjie communities and the villages of Guzhai, Huangnizhai, Jiufang, Pingdiying, Shanqiao, Shuimo, Tiechang, Xinle, Xinpeng, and Zhaobi in Ludian County; and the villages of Buchu, Guazhai, Sujia, and Xinyingpan in Zhaoyang District. A total of 1,103 HHs with 5,076 people in the 17 villages will be involved in the LUEFF. About 214 HHs with 918 people will conduct quantifiable water and soil conservation model only, while 346 HHs with 1,588 will implement the low-emission agriculture model only. Other HHs will conduct both the quantifiable water and soil conservation model and the low-emission agriculture model. The land use modes and area distribution are shown in Table 3-1:

Table 3-1: Land Use Modes and Anticipated Involved Villages and Households

No. of No. of No. of Model Involved Involved Villages Village Household People Xinjie, Shanqiao, Pingdiying, Jiufang, Only water and soil Xinle, Zhaobi, Jintang, Tiechang, Shuimo 10 214 918 conservation and Huangnizhai of Ludian County Xinyingpan, Buchu, Guazhai and Sujia of Only low-emission Zhaoyang District, and Longxiang, Guzhai 7 346 1,588 agriculture and Xinpeng of Ludian County Xinjie, Shanqiao, Pingdiying, Jiufang, Both models Xinle, Zhaobi, Jingtang, Tiechang, Shuimo 10 543 2,570 and Huangnizhai of Ludian County Total 17 1,103 5,076

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Table 3-2: Detail Land Use Modes, Land Area and Anticipated Involved People

Land Area No. of Original Land Use Mode No. of Planting by Project Towns Involved Villages House- No. of Mode (mu) Involved hold Person 1. Quantifiable water and soil 6,676.25 Xinjie Town, Longshu 10 757 3,488 conservation model Town, Shuimo Town (1) Farmland Grain and Chinese herbal Xinjie Town, Longshu economic medicine 2,098.61 Town, Shuimo Town 8 358 1,562 crops (2) Forestland and grassland Barren slope, Xinjie Town, Longshu grassland Economic forest 550.83 Town, Shuimo Town 2 189 876 Xinjie Town, Longshu Forestland Ecological forest 4,026.81 Town, Shuimo Town 10 210 1,050 2. Low-emission agriculture 19,089.34 17 889 4,158 (1) Farmland 18,268.24 14 889 4,158 Grain and Potato economic intercropping + 8,419.65 Xinjie Town, Longshu 7 725 3,117 crops winter filling Town, Shuimo Town demonstration Grain and Potato economic intercropping 2,605.81 Sujia Township, Xinjie 5 224 963 crops demonstration Town, Shuimo Town Corn/potato cross Grain and slope ridge Xinjie Town, Longshu economic planting 4,092.55 Town 4 352 1,513 crops demonstration Maintain the original farming The total area of the mode and measure is 13,000 mu, Grain and implement and 3,520.23 mu is economic controlled release 3,150.23 deducted from the overlap 5 271 1,165 crops fertilizer and with other measures, pesticide reduction involving 21 villages in 4 measures. townships. (2) Garden Plot 821.1 2 76 326 Garden Plot Garden Plot 821.1 Sayu Town, Longshu 2 76 326 Town Total 25,765.59 17 1,103 5,076

3.4 Subsidy Standards and Assistance Measures for the Land Use for Ecological Farming or Forestry Based on Public Consultation

14. The subsidy standards for the LUEFF are set up based on preliminary consultation with representatives of involved farmers and villager groups. According to the field survey, the existing average net income of farmland is 400–600 yuan/mu/year in project area, while current practice of ecological compensation subsidy is around 500–600 yuan/mu/year in the same area. The final subsidy standards for the LUEFF will be determined through consultation and negotiation between the PMOs and involved villager groups and farmers during project implementation.

15. During the LUEFF, if there are young crops or ground attachments to be affected, the compensation needs to be paid to involved farmers by local governments using the contingency in resettlement budget. The compensation standards are based on the standards in section 5 in the RP.

16. It is expected that all the involved HHs will not face any permanent negative impacts and income loss in long term after the LUEFF, which is based on voluntary consultation and negotiation. However, to implement the LUEFF and project implementation in a timely and

P 150 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan smooth manner, local governments committed that the HHs involved in the LUEFF are also eligible to the restoration and/or livelihood programs; and project-related employment opportunities stipulated in section 6 in the main text of the RP, similar to the affected persons (APs) under the PLA. Moreover, the vulnerable HHs will be identified and assessed during the LUEFF through the similar procedures in subsection 2.3.7 in the RP. The vulnerable HHs will be provided with priorities to participate in the LUEFF, and benefit from the Project and the livelihood and income restoration programs planned in the RP and this LUEFF framework.

3.4.1 Subsidy Standards for Quantifiable Water and Soil Conservation Model

(1) Subsidy Standards for Converting Farmland to Forestland

17. The subsidy standard for converting farmland to forest is 600 yuan/mu/year (excluding seedling afforestation price at a rate of 5,000/mu–8,000/mu). Because the project is based on ecological afforestation, it cannot produce direct economic benefits. To protect the afforestation effects and farmers’ income, the subsidy period will be 15 years. The subsidy standard will be negotiated and adjusted every 5 years, and the adjusted standard is subject to the negotiation results.

(2) Subsidy for Perennial Herb Planting

18. The sloping farmland will be used for adjustment of planting structure from traditional grain crops to perennial herb (Chinese herbal medicines) with certain soil and water conservation effects; and the planting area to be adjusted is 2,098.61 mu, as planned. Because the growth cycle of perennial herb is generally 3–5 years, it does not have output in the early stage. To improve the acceptance of farmers and promote the project implementation smoothly, it is considered to provide planting subsidy for the first 4 years. The subsidy standard is calculated based on 50% of the compensation standard for returning farmland to forest; that is, 300 yuan/mu/year. Therefore, the subsidy period is determined to be 5 years based on the first growth cycle. At present, the sloping farmland does not have output for many years due to heavy soil erosion. Farmers have not cultivated the farmland for many years due to poor soil quality. Therefore, farmers will not face any loss when planting perennial herb. The subsidy is used to promote them to plant their farmland to reduce soil erosion.

3.4.2 Subsidy Standard for Promotion Low-Emission Agriculture

(1) Agronomic Measures

19. The agronomic control measures focus on the potato intercropping + winter filling mode in the basin, and the intercropping method can significantly increase the economic benefits. The subsidy standard for agronomic control measures is 100 yuan/mu, and the subsidy period is 5 years. The subsidy is considered due to potential labor increase after conducting agronomic control measures. Actual subsidy standard will be based on consultation and negotiation during implementation.

P 151 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(2) Fertilizer Reduction

20. In the case of guaranteeing the existing income, farmers who increase the application of organic fertilizers will be compensated. The subsidy standard is 10 yuan/mu, and the subsidy period is 5 years. The subsidy is considered due to potential labor increase after replacing chemical fertilizer with organic fertilizer. Actual subsidy standard will be based on consultation and negotiation during implementation.

(3) Pesticide Reduction

21. A demonstration area for pesticide reduction and control is established by means of the government’s guidance and the farmers’ participation; planting of disease-resistant varieties; use of physical protection measures, such as yellow boards, rebounds, insecticidal lamps, and other new bio-pesticide prevention measures, e.g., low toxicity and low organic phosphorus that are easily decomposed. The subsidy standard is 100 yuan/mu, and the subsidy period is 5 years. Moreover, the subsidy standard for recycling of mulching film and pesticide waste packaging is 10 yuan/mu, and the subsidy period is 5 years. The subsidy is considered due to potential labor increase after replacing toxic pesticide with bio-pesticide. Actual subsidy standard will be based on consultation and negotiation during implementation.

3.5 Output Value Analysis of the Land Use for Ecological Farming or Forestry

22. The original planting mode in the project area has the phenomenon of low yield, high chemical fertilizers and pesticides, and high soil erosion. After the project implementation, the infrastructure conditions and the irrigation conditions will be improved. On the other hand, the eroded farmland will be utilized to improve the farmers’ income. At the first 3–5 years, due to grown period of plants, farmers will not have income; but they can receive subsidy from local governments. During the full consultation with farmers, they (the farmers) thought that they will have good income several years later after the planting structural change. In recent years, they may have some loss in the planting structural change; but they will have eco- compensation subsidies.

23. By comparison, the income of farmers may decrease in the short term after the implementation of the project; but in the long run, income will increase significantly. Therefore, the LUEFF and subsidy standards are in line with the interests of farmers; and broadly supportive of farmers during project preparation. See Table 3-3.

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Table 3-3: Subsidy Standards for the Land Use for Ecological Farming or Forestry and Annual Output Value after the Land Use for Ecological Farming or Forestry

Land Use for Ecological Farming or Average Annual Forestry Subsidy Output Value after Original (LUEFF) Land Area Standard the LUEFF Planting Mode Planting Mode (mu) (yuan/mu) (yuan/mu) Remarks 1.Quantifiable soil and water 6,676.25 conservation model (1) Farmland The income in the first 3 years is decreased The first 3 years is (compensated with Grain, economic Chinese herbal 2,098.61 300 0; subsidies). The crops medicine An average of 1,200 income will be after 3 years increased significantly after 3 years. (2) Forestland, grassland Barren slope, Economic grassland forest 550.83 600 1,500 No income change Forestland Ecological 4,026.81 before and after, but forest improved vegetation coverage 2.Low-emission agriculture 19,089.34 (1) Farmland 18,268.24 Potato Grain, economic intercropping + crops winter filling 8,419.65 100 800 demonstration Potato Grain, economic intercropping 2,605.81 80 700 crops demonstration Corn/potato The current Grain, economic cross slope situation is rain-fed crops ridge cultivation 4,092.55 100 600 crops (no irrigation demonstration system), and the Maintain the agreement mode original farming will improve the mode and water infrastructure conditions. Grain, economic implement crops controlled 3,150.23 10 500 release fertilizer and pesticide reduction measures. (2) Garden Plot 821.1 Garden Plot Garden Plot 821.1 100 2,800 Source: From field survey. The income is net income.

4. Policies and Good Practices Related to Voluntary Land Use

24. Full consultation. Purpose of land use, necessary compensation or subsidy, and payment methods of the compensation or subsidy need to be consulted with involved farmers fully.

25. Voluntariness. Farmers have the full right to participate in the land use or refuse the land use. Any parties cannot make any force to farmers’ decision.

26. Equality. Negotiation on land use contract and signing the contract must be based on equality. If farmers do not agree to any terms in the contract, they have the right to refuse signing the contract.

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5. The Land Use for Ecological Farming or Forestry Implementation Procedures

27. The procedures are as follows (also the following chart).

(1) Information collection. Farmers with intention to participate present the details of the land, like location, area, usage, and reference price to village committee, which will then report to the township government. The letter of attorney will be issued by involved farmers, illustrating the entrusted matters, authority and deadlines, etc., with the signature of the principal.

(2) Information disclosure. Township government, after collecting data, will sort out information about land planting change of different villages; and establish a database. The sorted information will be disclosed timely by means of network, radio, newspapers, board, electronic display, etc. The township government will also report to the county (district) government for updating of agricultural planting on the land databases.

(3) Negotiation between the project implementing units and involved farmer. With the arrangement of township government, both sides negotiate about the land planting change conditions and price based on the principle of equality, voluntariness, and mutual benefit.

(4) Signing the land planting change contract. When both parties agree on conditions and price, the township government provides 4–5 copies of a standard contract (the fifth copy for endorsement) for both parties to sign. The contacts will be signed by all HHs, and it should be by both spouses in each HH.

(5) Endorsing the land planting change contract. The township government endorses the contract.

(6) Registration for the land planting change. The township government registers the land planting change information timely and exactly, and submits the relevant materials to the county and/or district government for documentation.

(7) Documentation. The county and/or district government documents all relevant materials for land planting changed. The Zhaoyang District PMO and/or the Ludian County PMO can acquire the documentation from the county and/or district government.

(8) Supervising the contract implementation. Both parties should perform the contract positively, and township government supervises the contract execution. In case of conflicts or disputes, the township government will timely report to the county government; and the latter will inform the Zhaoyang District PMO or the Ludian County PMO synchronously.

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Registration form for the Registration form for the contract-issuing party contractor

Database for land and planting change

Information disclose

Negotiation

Finalizing standard land use contract

Signing standard contract

Endorsing contract, if needed

Parties fulfill obligations Contractual obligations

Contract execution

Figure 1: Land Use for Ecological Farming or Forestry Implementation Procedures 6. Budget and Sources 6.1 Budget for the Land Use for Ecological Farming or Forestry

28. The total budget for the LUEFF is 46.0054 million yuan. The budget and other related expenses are included in the eco-compensation fund of the project.

29. According to the eco-compensation mechanism of the feasibility study report, the budget for quantifiable water and soil conservation model component from eco-compensation is 22.716 million yuan; and for the promotion of low-emission agriculture component from eco- compensation is 23.2894 million yuan. See Table 8-1 and Table 8-2 for details. During project implementation, if the subsidy standards are changed, the budget for the LUEFF will be updated accordingly.

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Table 8-1: Land Use for Ecological Farming or Forestry Eco-Compensation/Subsidy Budgets for Quantitative Water and Soil Conservation Model Perennial Herb Returning Farmland to Forest Total Subsidy Subsidy Standard Subsidy Standard Subsidy Village/ Area (yuan/mu/ (5 years) Area (yuan/mu/ (15 years) Area Subsidy Town No. Community (mu) year) (10,000 yuan) (mu) year) (10,000 yuan) (mu) (10,000 yuan) Chenjiahaizi, 1 544.56 300 81.68 1716.59 2261.15 81.68 Pingdiying Village Pingshanding, 2 352.87 300 52.93 500.89 853.76 52.93 Pingdiying Village Souyigou, 3 191.00 300 28.65 191.00 28.65 Shanqiao Village Zhongjiaying, 4 109.15 600 98.24 109.15 98.24 Shanqiao Village Lijia River, Xinjie 5 145.65 300 21.85 145.65 21.85 Xinjie Community Town Zhangjia River, 6 49.94 600 44.95 49.94 44.95 Xinjie Community No.10 and No.11 7 Community, 50.81 600 45.73 50.81 45.73 Xinjie Community, No.10 and No.11 8 Community, 182.62 600 164.36 182.62 164.36 Jiufang Village Subtotal 1234.08 185.11 2,610.00 353.27 3,844.08 538.38 1 Jintang Community 74.10 300 11.12 74.10 11.12 Mabuyuanzi,Zhaobi 2 183.04 300 27.46 62.15 600 55.94 245.19 83.39 Village Shilong River,Zhaobi Longshu 3 261.14 300 39.17 119.86 600 107.87 381.00 147.05 Village Town 4 Gengjiawan,Xinle Village 36.17 300 5.43 36.17 5.43 5 Xiaopo,Xinle Village 44.98 300 6.75 53.91 600 48.52 98.89 55.27 6 Jiaoyiwa,Xinle Village 65.55 300 9.83 65.55 9.83 Subtotal 664.98 99.75 235.92 212.33 900.90 312.08

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Perennial Herb Returning Farmland to Forest Total Subsidy Subsidy Standard Subsidy Standard Subsidy Village/ Area (yuan/mu/ (5 years) Area (yuan/mu/ (15 years) Area Subsidy Town No. Community (mu) year) (10,000 yuan) (mu) year) (10,000 yuan) (mu) (10,000 yuan) Dushan, 1 72.50 300 10.88 534.50 600 481.05 607.00 491.93 Shuimo Village Dapoliangzi, 2 127.05 300 19.06 127.05 19.06 Tiechang Community Dashiyan, Shuimo 3 55.20 55.20 Tiechang Community Town Laingzishang 1, 4 117.13 600 105.42 117.13 105.42 Tiechang Community Laingzishang 2, 5 130.73 130.73 Tiechang Community Subtotal 199.55 29.93 837.56 586.47 1,037.11 616.40 Pingzishang, 1 140.93 600 126.84 140.93 126.84 Huangnizhai Village Tuotuo1, 2 172.56 600 155.30 172.56 155.30 Huangnizhai Village Tuotuo2, 3 156.33 600 140.70 156.33 140.70 Huangnizhai Village Tuotuo3, 4 28.20 600 25.38 28.20 25.38 Maobizi Huangnizhai Village Water Tuotuo4, 5 93.77 600 84.39 93.77 84.39 Source Huangnizhai Village Sifangbei1, 6 127.04 600 114.34 127.04 114.34 Huangnizhai Village Sifangbei2, 7 148.99 600 134.09 148.99 134.09 Huangnizhai Village Sifangbei3, 8 26.34 600 23.71 26.34 23.71 Huangnizhai Village Subtotal 894.16 804.74 894.16 804.74

Total 2,098.61 314.79 4,577.64 1,956.81 6,676.25 2,271.60

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Table 8-2: Land Use for Ecological Farming or Forestry Eco-Compensation/Subsidy Budgets for Promoting Low-Emission Agriculture

Recycling Measures Reduction of for Mulching Film and Agronomic Measures Reduction of Fertilizer Measures Pesticide Measures Pesticide Waste Packaging Eco- Com- Subtotal of Eco- Eco- Eco- Scale of pensa- Eco- Proposed Corn/ Compen- Compen- Compen Village/ Demons- Potato tion Compen- Project Town Potato sation Con- sation sation Community tration Intercrop- (10,000 sation Activity Potato Cross (10,000 Special trolled (10,000 (10,000 Area (mu) ping + Area yuan) Area (10,000 Intercrop- Slope yuan) Fertilizer Release yuan) yuan) Winter (mu) (100 (mu) yuan) ping (mu) Ridge (100 (mu) Fertilizer (80 (100 Filling yuan/ Planting yuan/mu/ (mu) yuan/mu/ yuan/mu/ (mu) mu/ (mu) year × 5 year × 5 year × 5 year × years) years) years) 5 years) Plateau Longshu characteris- Town, Guzhai tic agricultu- 1,028.10 1,028.10 41.12 1,028.10 51.41 1,028.10 5.14 97.67 Ludian Community ral demons- County tration area Apple Sayu industry Town, Xinyingpan 564.18 564.18 22.57 564.18 28.21 564.18 2.82 53.60 demonstra- Zhaoyang tion site District Potato Shuimo Forest in industry Town, Tiechang 1,000.00 1,000.00 50.00 1,000.00 40.00 1,000.00 50.00 1,000.00 5.00 145.00 demonstra- Ludian Community tion site County Longshu Vegetable Town, Longxiang industry - 1,077.17 0.00 1,077.17 43.09 1,077.17 53.86 1,077.17 5.39 102.33 Ludian Community site County Circular agricultural Sujia demonstra- Township Wangjiayingpan 580.00 580.00 29.00 580.00 23.20 580.00 29.00 580.00 2.90 84.10 tion site of Zhaoyang ,Sujia Village breeding District and planting Wangjiadiao, High Shanqiao 473.25 473.25 23.66 473.25 18.93 473.25 23.66 473.25 2.37 68.62 standard Xinjie Village farmland Town Muzhuqi, demonstra- Xinjie 2,751.08 2751.08 137.55 0.00 2,751.08 137.55 2,751.08 13.76 288.86 tion site Community

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Recycling Measures Reduction of for Mulching Film and Agronomic Measures Reduction of Fertilizer Measures Pesticide Measures Pesticide Waste Packaging Eco- Com- Subtotal of Eco- Eco- Eco- Scale of pensa- Eco- Proposed Corn/ Compen- Compen- Compen Village/ Demons- Potato tion Compen- Project Town Potato sation Con- sation sation Community tration Intercrop- (10,000 sation Activity Potato Cross (10,000 Special trolled (10,000 (10,000 Area (mu) ping + Area yuan) Area (10,000 Intercrop- Slope yuan) Fertilizer Release yuan) yuan) Winter (mu) (100 (mu) yuan) ping (mu) Ridge (100 (mu) Fertilizer (80 (100 Filling yuan/ Planting yuan/mu/ (mu) yuan/mu/ yuan/mu/ (mu) mu/ (mu) year × 5 year × 5 year × 5 year × years) years) years) 5 years) Mali Forest, 850.50 850.50 42.53 0.00 850.50 42.53 850.50 4.25 89.30 Jiufang Village Longxiang 1,932.64 1,932.64 96.63 1,932.64 77.31 1,932.64 96.63 1,932.64 9.66 280.23 Community Lijiayakou, 686.66 686.66 34.33 686.66 27.47 686.66 34.33 686.66 3.43 99.57 Zhaobi Village Luojiawanzi, 361.55 361.55 18.08 361.55 14.46 361.55 18.08 361.55 1.81 52.42 Xinle Village Xiaopo, Xinle 584.55 584.55 29.23 584.55 23.38 584.55 29.23 584.55 2.92 84.76 Village Fujiawan, Longshu 193.34 193.34 9.67 193.34 7.73 193.34 9.67 193.34 0.97 28.03 Xinle Village Town Xinfa, Xinle 236.30 236.30 11.82 236.30 9.45 236.30 11.82 236.30 1.18 34.26 Village Dazhaizi, Jintang 986.30 986.30 49.32 0.00 986.30 49.32 986.30 4.93 103.56 Cummunity Fujiawan 2, 256.92 0.00 256.92 10.28 256.92 12.85 256.92 1.28 24.41 Xinle Village Xiaoliangshan, 1,000.00 1,000.00 50.00 1,000.00 40 1,000.00 50.00 1,000.00 5.00 145.00 Zhaobi Village Huhongyuan, Xinpeng 275.39 275.39 11.02 275.39 13.77 275.39 1.38 26.16 Village Dalaobao, Xinpeng 348.34 348.34 13.93 348.34 17.42 348.34 1.74 33.09 Shuimo Village Town Naheichu, Xinpeng 137.24 0.00 137.24 6.86 137.24 0.69 7.55 Village Lujiawan, 1,889.65 1,889.65 94.48 1,889.65 75.59 1,889.65 94.48 1,889.65 9.45 274.00 Shuimo Village

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Total 19,089.34 8,419.65 2,605.81 4,092.55 755.90 11,999.61 1,078.51 523.12 19,089.34 954.47 19,089.34 95.45 2,328.94

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6.2 Funds Sources

30. The budget is included in the eco-compensation fund of the project. The budget of the LUEFF is specifically paid from the district and/or county PMOs to the township governments; and then, from the township governments to the HHs according to the subsidy standards every year. Before the expiration of the agreements, the LUEFF agreements will be renewed according to market and full consultation with the HHs.

7. Information Disclosure, Public Consultation, and Grievance Redress Mechanism 7.1 Public Participation during Project Preparation

31. In April–October 2019, the scope of the farmers’ voluntary participation in the LUEFF; and the towns, villages, communities, and the HHs to be involved were surveyed; and the affected villages were consulted one by one to confirm the willingness to use the land for ecological farming and forestry.

32. In June–October 2019, relevant representatives of the natural resources bureaus, the PIUs, towns, villages, communities, and the HHs were present to measure the actual land indicators.

33. During project preparation, the public participation activities are summarized in Table 7- 1.

Table 7-1: Public Participation Activities during Project Preparation

Number of Women Measures Partici- Topic/ Taken in Content Form Date Participants pants Objective Concerns Project Design Discuss LUEFF plan and the land subsidies Commu- 10 cadres and use for Focus on standard will be Apr 15 nity meeting villagers’ 3 ecological subsidies and announced 2019 Meetings representatives farming or transparency Issuance of forestry consent for (LUEFF) LUEFF Discussion Discuss Staff of the with the specific Focus on the Strengthening Yudong project May 21 operation effectiveness monitoring of meeting Reservoir 2 manage- 2019 methods of grant land use mode Management ment office of the funding changes Bureau (PMO) LUEFF Whether farmers are willing Ques- sample survey Whether the Explain that Household May to change tion- of 98 42 were subsidy subsidy policies Sampling 10–20, the land naire households in women standard can have different Survey 2019 use mode Survey 10 villages be fulfilled years after receiving subsidies

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Number of Women Measures Partici- Topic/ Taken in Content Form Date Participants pants Objective Concerns Project Design Discuss land use Village 13 village and The subsidy cadres and May Subsidy cadres and 17 sugges- standard is villagers’ Forum 20–28, 13 standards villagers’ tions for adjusted once represent- 2019 and years representatives changes in every 5 years; tatives land use models

Interpretation of Land Use Mode (Sujia Township, May 2019) Mass Work Conference

Interpretation of Land Use Mode (Sayu Town, May 2019) Mass Work Conference

Interpretation of Land Use (Shuimo Town, May 2019) Mass Work Conference

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Interpretation of Land Use Mode (Xinjie Town, May 2019) Mass Work Conference

Interpretation of Land Use Mode (Longshu Town, May 2019) Mass Work Conference

Figure 2: Photos of Public Consultation 7.2 Information Disclosure and Public Consultation Plan on the Land Use for Ecological Farming or Forestry during Implementation Stage

34. With the continuous progress of the preparation and implementation of the project, the project IAs will carry out further information disclosure, consultation, negotiation, and public participation. Details of the plan are shown in Table 7-2.

Table 7-2: Public Consultation, Negotiation, and Participation Plan during Implementation

Purpose Method Timeline Responsible Unit Participant Topic / Content

Disclosure of Land use for Project Representatives information such as ecological management Representatives November of all involved the LUEFF, subsidy farming or offices (PMOs) meetings 2020 villages and standards, and forestry and town village groups implementation (LUEFF) plan governments arrangements Town All involved Announcement of the governments and persons LUEFF plan, Village notices Notice for the December village including subsidy and villagers’ LUEFF plan 2020 committees standards and meetings supported by the implementation PMOs methods

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Purpose Method Timeline Responsible Unit Participant Topic / Content

Confirming subsidy standards, planting LUEFF Negotiation with area, and agreement January PMOs and village All involved involved implementation negotiation 2021 committees persons persons schedule; and and signing signing of the LUEFF agreements Town governments and Publicity of training Village notices February village All involved policy, training Training plan and villagers’ 2021 committees persons content, and ways of meetings supported by the training participation PMOs Impacts of the The PMOs with LUEFF Villagers support of implementation to meetings and Jan specialists from Sampling farmers, Monitoring interview with 2021–Dec the project involved payment village 2025 management persons disbursement, and committees supporting any problems and consultant complains

7.3 Grievance Redress Mechanism

35. Public participation is encouraged in the preparation and implementation of the LUEFF, so that great controversy may not arise during the LUEFF implementation. However, there may be some unforeseen issues in the implementation, e.g., involved farmers change to plant the farm not following the LUEFF agreements. To solve the issue effectively and ensure the successful implementation of the project and the LUEFF, the project has established a transparent and effective channel of grievance and redress mechanism (GRM). The relevant agencies will receive complaint and appeal from the APs as free. In the process of project construction, the GRM needs to keep effective, so that the affected farmers can request to solve relevant complaints or appeals in a timely manner. The public has been informed about the GRM at the information disclosure meeting, and the information manual has been issued. At the same time, the procedures for complaints and appeal have been publicized to the affected farmers through the media. The GRM is as follows:

(1) Stage 1. If the affected farmer is unsatisfied with the implementation of the LUEFF agreements, he/she may make an oral or written complaint with the village committee; in the case of an oral complaint, it shall be dealt with by the village committee and recorded in writing. The village committee shall resolve it within 1 week;

(2) Stage 2. If the affected farmer is unsatisfied with the decision of Stage 1, he/she may make a complaint with the town government; and the town government shall resolve it within 2 weeks;

(3) Stage 3. If the affected farmer is unsatisfied with the decision of Stage 2, he/she may file an oral or write complaint with the Zhaoyang District PMO or the Ludian County PMO. In the case of oral complaints, the PMO shall handle them and record them in writing. The PMOs shall resolve it within 2 weeks;

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(4) Stage 4. If the affected farmer is still not satisfied with the decision of stage 3, he/she may file a complaint with the Zhaotong Natural Resources Bureau and/or the Zhaotong PMO on the issue of the LUEFF implementation; and request administrative arbitration in accordance with the relevant laws and regulations of the State and Yunnan Province. The administrative arbitration institution shall make an arbitration decision within 4 weeks.

36. In addition, according to the applicable laws and regulations, the affected farmer may also bring a lawsuit directly to the people’s court at any time (not subject to the restrictions of the first three stages) against any aspect of the LUEFF. All complaints and solutions will be reported to and recorded by Zhaotong PMO.

37. Involved persons may also complain about any aspects of LUEFF, including land subsidy standards, etc. to the Zhaotong PMO, an external monitoring and evaluation (M&E) agency. The APs can also submit complaints to ADB which will first be handled by the project team. If an involved person is still not satisfied and believes he/she has been harmed due to non- compliance with ADB’s policy, he/she may submit a complaint to ADB’s Accountability Mechanism.6

38. All agencies will accept grievances and appeals from farmers for free, and costs so reasonably incurred will be disbursed from contingencies. All grievance redress procedures will remain valid throughout project implementation to ensure that the farmers will have a way to address related issues.

8. Monitoring and Evaluation

39. To ensure smooth implementation of the LUEFF framework as planned, an internal monitoring will be conducted by the Zhaotong PMO, the Zhaoyang District PMO, and the Ludian County PMO. In addition, an external M&E will be conducted by an external agency that will be recruited by the Zhaotong PMO before the LUEFF work commenced. These M&E will be integrated in comprehensive social monitoring reports, together with the M&E of the RP, the ethnic minority development plan, and the social development and gender action plans during project implementation.

8.1 Internal Monitoring 8.1.1 Implementation Procedures

40. The Zhaotong PMO, the Zhaoyang District PMO, and the Ludian County PMO will appoint staff responsible for the internal monitoring during the LUEFF implementation. The staff will be trained on ADB’s safeguard policies and the State laws and regulation related to the LUEFF. The specialists from the project management consultant to be recruited at beginning of the project implementation will provide the training and guide the PMOs to conduct the internal monitoring.

6 For further information, see: http://www.adb.org/Accountability-Mechanism

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41. The public participation and consultation on the LUEFF, subsidy standards, the LUEFF agreement negotiation, and payment of the subsidy, etc. will be monitored; and an internal monitoring report will be prepared and submitted with the project progress report to ADB semiannually.

8.1.2 Monitoring Contents

(1) Implementation status of information disclosure, public consultation, and negotiation on the LUEFF; (2) Implementation status and actual impacts of the LUEFF during project implementation; (3) Payment standard, quantity, and availability of land subsidies for the LUEFF; (4) Farmers’ economic income and livelihood changes after the LUEFF; (5) Number of trainings for farmer and number of participants after the LUEFF; (6) Complaints and appeals (if any) as well as the redressing results; and (7) Involved HHs’ views and satisfaction levels on the LUEFF.

8.1.3 Internal Monitoring Report

42. The Zhaotong PMO will submit semiannual internal monitoring reports to ADB, and the internal monitoring report will be an integral part of the project progress report. The report needs to include progress of the LUEFF implementation for the past 6 months.

8.2 External Monitoring

43. In accordance with the requirements of ADB, Zhaotong PMO will engage a qualified external agency to take the responsibility of external M&E on the LUEFF (together with the RP monitoring).

44. The external M&E agency will monitor and evaluate regularly implementation activities of the LUEFF, the progress, quality, funds, satisfaction and appeal cases, impacts, and livelihood recovery; put forward advice; and submit the M&E reports to the Zhaotong PMO, the Zhaoyang District PMO, the Ludian County PMO, and ADB.

8.2.1 Contents and Methods of External Monitoring A. Baseline Survey

45. The external monitoring agency will conduct a baseline survey of the villages covered by the LUEFF to obtain basic information on the production and living standards (living, production and income levels) of the HHs being monitored.7 A random sample of 20% of the HHs will be conducted, and a follow-up survey will be conducted over the next few years. This survey will be completed prior to the implementation of the LUEFF, and the contents of the base survey report can be included in the first external monitoring report.

7 The baseline data is mainly for monitoring the HH socioeconomic status before and after project. It is also helpful to assess the quantitative benefit of the project, particularly from the LUEFF.

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B. Regular Monitoring and Evaluation

46. During the implementation of the project, the external monitoring agency will carry out regular monitoring of the LUEFF twice a year through on-site survey, follow-up survey of sample HHs, and random interviews with the involved farmers. A follow-up survey of typical samples of 20% of all involved HHs, and 100% vulnerable group HHs will be selected. Based on this survey, statistical analysis is carried out; and evaluation is made. The following activities will be monitored:

(1) payment and amount of the LUEFF subsidies (2) implementation and effectiveness of the training program (3) support for vulnerable groups (4) schedule of the above activities (applicable at any time) (5) organization of the LUEFF (6) any impacts and livelihood restoration (7) the LUEFF agreement negotiation and satisfaction (8) whether the farmers benefit from the project (9) public consultation

47. The external monitoring agency will participate in public consultations to be held during the LUEFF implementation of the project. Through participation in these consultations, the external monitoring agency will evaluate the effectiveness of public participation and the LUEFF implementation effectiveness. The external monitor will also monitor, evaluate, and report on the key consultation meetings (including observing some of key consultations during negotiation) to assess if the LUEFF process is being followed. C. Complaint

48. The external monitoring agency will visit to involved villages regularly and interview with town governments and the IAs for any complaints. At the same time, they will also meet with any complaining persons and put forward improvement measures and suggestions in view of the existing problems to make the implementation process of the LUEFF more effective.

8.2.2 External Monitoring Reporting

49. Based on the information obtained from monitoring and survey, the external monitoring agency will prepare external monitoring reports; and regularly submit reports to the Zhaotong PMO, the Zhaoyang District PMO, the Ludian County PMO, and ADB. The monitoring will start in January 2021 and end with the completion of the LUEFF activities. The LUEFF external monitoring report will be one of chapters of the resettlement external monitoring report of the project.

50. After the completion of the project implementation and based on the M&E, the LUEFF activities will be summarized and evaluated. The content of the evaluation mainly includes the successful experience of the LUEFF; and the lessons to be learned, which can be used for reference for the LUEFF in the future. The M&E will be integrated in comprehensive social monitoring reports.

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Table 8-1: Schedule of Comprehensive Social Monitoring and Evaluation

# Report Timeline Remarks 1 Baseline survey and monitoring report (No.1) 2021 Jan Including the baseline survey report 2 Monitoring report (No.2) 2021 Jul Semiannual report 3 Monitoring report (No.3) 2022 Jan Semiannual report 4 Evaluation report (No.4) 2022 Jul Semiannual report 5 Evaluation report (No.5) 2023 Jan Semiannual report 6 Evaluation report (No.6) 2023 Jul Semiannual report 7 Evaluation report (No.7) 2024 Jan Semiannual report 8 Evaluation report (No.8) 2024 Jul Semiannual report 9 Completion report (No.9) 2025 Dec Completion report

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ANNEXES8

ANNEX 1: Opinions on Land Use in the Land Use for Ecological Farming or Forestry, Jule Village, Sayu Town, Zhaoyang District

Opinions on the Agreement to Use the Collective Land of Jule Village, Sayu Town, Zhaoyang District in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

Agreement-based land use mode. The project does not acquire collective land; and according to the needs of the river basin management plan, it will improve the planting structure of collective land; and improve the farming mode and supporting infrastructure under the premise of complying with the land policy, so that the land planning functions can be achieved such as water and soil conservation; fertilizer control and emission reduction; and agricultural pollution reduction. Farmers enjoy the benefits of land planting structure adjustment, bear the responsibility of maintaining planning measures, and cultivate and use land in accordance with planning requirements.

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project.

Jule Village, Sayu Town, Zhaoyang District

May 16, 2019

8 All the 17 involved villages were consulted in discussion meetings and agreed to take part in the LUEFF. The survey team made field visiting to five sampled villages and got their letters of intent, which were presented in annexes.

P 169 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 170 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

ANNEX 2: Opinions on Land Use in the Land Use for Ecological Farming or Forestry, Tiechang Community, Shuimo Town, Ludian County

Opinions on the Agreement to Use the Collective Land of Tiechang Community, Shuimo Town, Ludian County in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project.

Tiechang Community, Shuimo Town, Ludian County

May 12, 2019

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ANNEX 3: Opinions on Land Use in the Land Use for Ecological Farming or Forestry, Shanqiao Village, Xinjie Town, Ludian County

Opinions on the Agreement to Use the Collective Land of Shanqiao Village, Xinjie Town, Ludian County in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project.

Shanqiao Village, Xinjie Town, Ludian County

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P 174 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

ANNEX 4: Opinions on Land Use in the Land Use for Ecological Farming or Forestry, Jiufang Village, Xinjie Town, Ludian County

Opinions on the Agreement to Use the Collective Land of Jiufang Village, Xinjie Town, Ludian County in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project.

Jiufang Village, Xinjie Town, Ludian County

May 12, 2019

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ANNEX 5: Opinions on Land Use in the Land Use for Ecological Farming or Forestry, Longshu Community, Longshu Town, Ludian County

Opinions on the Agreement to Use the Collective Land of Longshu Community, Longshu Town, Ludian County in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project.

Longshu Community, Longshu Town, Ludian County

May 12, 2019

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Appendix III: Framework for the Land Use for Rural Public Infrastructure

Framework for the Land Use for Rural Public Infrastructure (LURPI)

Zhaotong Municipal People’s Government

December 2019

P 179 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

1. Overview

1. The Asian Development Bank (ADB)-financed Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (hereinafter referred as “Project”) consists of four outputs, including (i) wastewater management and pollution control in the Sayu River Basin strengthened; (ii) water resources management in the Sayu River improved; (iii) eco-compensation mechanism for the Sayu River Basin established; and (iv) education, capacity, and public awareness on water pollution management strengthened. The project will be implemented in Zhaoyang District and Ludian County of Zhaotong City in Yunnan Province of the People’s Republic of China (hereinafter referred as “PRC”).

2. The overall objective of the project is to improve the condition of water resources and environment in the Sayu River Basin in Zhaotong City. The outputs (i) and (ii) of the project involve civil works construction and land acquisition and resettlement (LAR) impacts, while the outputs (iii) and (iv) will not involve any LAR. An environmental and social management system has been prepared for the output (iii), including measures to screen and avoid the LAR impacts.

3. The land use for the project can be divided into five categories: (i) permanent land acquisition (PLA); (ii) state-owned land occupation (SLO); (iii) land use right transfer (LURT); (iv) land use for ecological farming or forestry (LUEFF); and (v) land use for rural public infrastructure (LURPI).9 In addition, some temporary land occupation (TLO) will be required during project construction. Seven components of the project and the land area to be used in the five methods by relevant components is summarized in Table 1.

Table 1: Land Areas for Subprojects in Different Types of Land Use

PLA SLO TLO LURT LUEFF LURPI Components (mu) (mu) (mu) (mu) (mu) (mu) (1) Waste management 1.27 1,503.12 7.45 (2) Solid waste management 30.69 (3) Pilot eco-villages 7.95 (4) Wetlands construction 153.98 16.50 416.49 (5) Quantifiable water and soil 304.08 6,676.25 conservation model (6) Promotion of low-emission 714.31 19,089.34 agriculture (7) Ecological river 557.43 1,973.88 2,290.06 embankment Total 743.38 1,973.88 4,828.06 416.49 25,765.59 15.40

4. A resettlement plan (RP) has been prepared to manage the involuntary resettlement impacts, including the PLA, the SLO, and the TLO. The frameworks for the LURT, the LUEFF, and the LURPI are prepared for voluntary land uses, respectively; and included as appendixes in the RP.

5. In Output 1 of this project, the components of (1) wastewater management and (3) pilot eco-villages to reduce emission need to occupy small pieces of collective land through LURPI

9 The LURPI is different from the PLA as the collective land ownership will not be changed; and the land is used for the benefits of the collectives and/or villages. Under the LURPI, the land is still collectively owned (in case of the PLA, the land ownership changes from collectively owned to state-owned). After the LURPI, any contracted land use rights will be returned to collective or villager group.

P 180 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan for construction of distributed rural wastewater treatment facilities (WWTFs) and village recreation activity squares and cultural activity rooms, etc. The project will help rural households (HHs) to construct septic tanks for their own use, with land provided by the rural HHs themselves. Meanwhile the project will support pilot eco-villages; and help the village collectives to construct small public infrastructures, including village entrance signs, culture and activity facilities, and public recreation squares. The selected villages will provide the land for their public infrastructures on their own use through the system of “one case, one discussion,” A total of 15.47 mu of collective land will be needed under the LURPI. The voluntary agreements for the LURPI will be finalized during the implementation of the project.

6. It is necessary to develop a framework for the LURPI to ensure that the land use of the project is in line with the relevant land administration policies of the PRC and Zhaotong City, and ADB’s good practices on voluntary land uses. The project implementing agency (IA), the Zhaotong project management office (PMO), commits that the LURPI framework will be strictly followed throughout the land use process of the project.

2. Land Use for Rural Public Infrastructure Scope

7. The wastewater management component and the pilot eco-villages to reduce emission component will occupy a total of 15.47 mu of collective land, including 2.52 mu in Sujia Town of Zhaoyang District; and 12.95 mu in towns of Longshu, Shuimo, and Xinjie of Ludian County. It involves 20 HHs with 46 people in 16 natural villages of 20 towns. The detailed contents, land to be occupied, involved HHs, and villages are shown in Table 2.

Table 2: Scope of the Land Use for Rural Public Infrastructure by Construction Contents

Land Type of Land (mu) House- Per- Town Construction Content Village Area Unused Farmland hold son (mu) Grassland Waste Management Component 1.99 1.99 7 29 Baifangzi natural village Xinpeng wastewater treatment 0.38 0.38 1 4 Village point Dashiyan wastewater 0.23 0.23 1 4 treatment point Xiaoyanjiao No.1 wastewater treatment 0.23 0.23 1 4 point Xiaoyanjiao No.2 Tiechang wastewater treatment Community 0.23 0.23 1 5 Shuimo point Shulinbian wastewater 0.23 0.23 1 3 treatment point Wujiacun wastewater 0.31 0.31 1 4 treatment point Goumenkou wastewater Xinpeng 0.38 0.38 1 5 treatment point Village Pilot eco-villages to Reduce Emission 1.43 1.43 1 4 Component Goutou Village cultural Goutou 1.43 1.43 1 4 activity room and square Village

P 181 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Land Type of Land (mu) House- Per- Town Construction Content Village Area Unused Farmland hold son (mu) Grassland Waste Management Component 1.00 1.00 4 Jiezicun wastewater Jintang 0.31 0.31 1 4 treatment point Community Luojiawan No.1 wastewater treatment 0.23 0.23 1 5 point Luojiawan No.2 wastewater treatment Xinle Village 0.23 0.23 1 4 Longshu point Luojiawan No.3 wastewater treatment 0.23 0.23 1 4 point Pilot eco-villages to Reduce Emission 4.23 4.23 1 3 Component Liyuan Village entrance Liyuan 4.23 4.23 1 4 village sign Village Waste Management Component 2.016 2.016 5 Shanqiao Village south Shanqiao wastewater treatment 0.31 0.31 1 5 Village point Pingdiying Village Pingdiying wastewater treatment 0.38 0.38 1 5 Village point Fengjiawan wastewater Fengjiawan 0.23 0.23 1 5 treatment point Shanqiao Village north Xinjie wastewater treatment 0.23 0.23 1 5 Shanqiao point Village Shanqiao Village 0.86 0.86 1 5 pumping station Pilot eco-villages to Reduce Emission 2.28 2.28 2 6 Component Anjiasongbao Village 0.98 0.98 1 3 entrance village sign Anjiasongbao Village Anjiasongbao north leisure activity 1.30 1.30 1 3 square Waste Management Component 2.52 2.52 Sujia Town wastewater 0.21 0.21 treatment point Qilibancun wastewater 0.23 0.23 treatment point Lengkacun wastewater Sujia Town 0.31 0.31 treatment point Lucaipingcun Sujia wastewater treatment 0.23 0.23 point Xujiagoucun wastewater Liyuan 0.23 0.23 treatment point Village Bohuozhai wastewater Bohuozhai 0.23 0.23 treatment point Yingjiaocun wastewater Xindian 0.31 0.31 treatment point Village

P 182 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Land Type of Land (mu) House- Per- Town Construction Content Village Area Unused Farmland hold son (mu) Grassland Xiaohecun wastewater 0.23 0.23 treatment point Xiaosongshu Village Xiaosongshu wastewater treatment 0.31 0.31 Village point Daijiagou wastewater 0.23 0.23 treatment point Total 15.47 12.95 2.52 20 42

8. The land area to be occupied by the project accounts for less than 0.1% of total existing farmland area in the involved villages. Therefore, the project’s land use under the LURPI has little impact on the involved villages.

3. Policy on Land Use for Rural Public Infrastructures 3.1 Policy Framework

9. Land Administration Law of the People’s Republic of China (Amended in 2019), issued on August 26, 2019.

10. "Notice on Further Promoting Agricultural Supply-Side Structural Reform and Doing a Good Job to Guarantee the Land Convergence and Development of Rural Industries" (2017) No. 12 (2017). Abbreviated as “Land Use Guarantee Notice”. 3.2 Related Terms

11. Article 61 of the Land Administration Law: For the construction of public facilities and public welfare undertakings in townships (towns) and villages that require the use of land, they shall apply to the land administrative department of the local people’s government at or above the county level for approval after review by the township (town) people’s government. The approval authority stipulated by provinces, autonomous regions, and municipalities shall be approved by local people’s governments at or above the county level.

12. Article 1 of the “Land Use Guarantee Notice”: To play a leading role in the overall planning of land use. In the preparation and implementation of the overall land use planning, all regions must adapt to the needs of the integration of modern agriculture and rural industries; and prioritize rural infrastructure and public service land. The township (town) land use master plan can reserve a small amount (not more than 5%) of planned construction land indicators for the construction of sporadic scattered separate site selection of agricultural facilities and rural tourism facilities. Do a good job in land use arrangements for agricultural industrial parks, science and technology parks, and entrepreneurial parks. Under the premise of ensuring agricultural land use, the government will guide rural secondary and tertiary industries to concentrate on county towns, key townships, and industrial parks; rationally guarantee the demand for land for construction of agricultural industrial parks; and prevent real estate development in disguise. Provincial land and resources authorities shall establish land use control standards and strengthen implementation of supervision.

P 183 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

13. Article 2 of the “Land Use Guarantee Notice”: Strengthening the support of construction land planning indicators. Arrange a certain proportion of annual land use plans, and specifically support new industrial development and industrial integration in rural areas. For cities and counties that use stock construction land for agricultural product processing, agricultural product cold chain, logistics warehousing, and wholesale market for the production of raw materials; or for rural secondary and tertiary industries such as small and micro-starting parks, leisure agriculture, rural tourism, and rural e-commerce, new construction land plan indicators can be given as incentives.

14. Article 3 of the “Land Use Guarantee Notice”: Strengthening the coordination of authorities. The land and resources authorities at all levels should strengthen coordination with relevant authorities such as development and reform, agriculture, urban and rural planning, construction, environmental protection, forestry, tourism, fire protection, etc.; and jointly carry out investigation and analysis of the status and needs of rural industrial integration and development land use in the region, determine various land use standards and land use guarantee methods in various industries, improve the policy system and joint law enforcement supervision, do a good job in risk prevention and control, and jointly promote the development of agriculture and rural areas in the new era.

15. The WWTFs and pilot eco-villages components involved in this project are necessary means for the improvement of rural eco-environment. The characteristics of land use in the project are mainly as follows: the facilities or infrastructures are constructed in scattered in villages with a small land occupation for each facility or infrastructure. The minimum land area for each facility is 4 square meters (m2), and the maximum is less than 0.5 mu. After the completion of the project, the ownership of the land still belongs to the rural collective organizations, which is in line with the relevant requirements of “accelerating the modernization of agriculture and rural areas”; and “prioritizing the rural infrastructure and public service land”.

4. Program for Land Use for Rural Public Infrastructures for the Project 4.1 Principle of Land Use for Rural Public Infrastructures

16. The collective land use in the LURPI for the construction of public facilities in the villages is in line with the procedures of "one case, one discussion." To carry out "one case, one discussion," the principle of "taking appropriate actions, benefits for public, democratic decision-making, and open in implementation" shall be followed. A land use program is proposed through villagers’ meetings or villager representatives’ meetings, and consultation with farmers who have contracted the farmland. After the farmers agree to the land use and accept the land subsidy standard voluntarily, the quantity and scope of land use, as well as compensation scheme, will be determined.

4.2 Methods of Land Use for Rural Public Infrastructures

17. With the assistance of the Zhaoyang District and Ludian County PMOs and the township governments, the involved village groups will be the collective units to conduct consultations with involved HHs in a manner of “one case, one discussion.” According to the consultation with the HHs and concerned agencies, the villager groups will sign the LURPI agreement with the HHs; and then, sign the LURPI agreement with the project implemention units (PIUs) or

P 184 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan township governments (in this case, township governments then sign the agreement with the PIUs). Finally, the villager groups are responsible for handing the land to the PIUs for construction of the facilities and infrastructures.

4.3 Subsidy Standard for the Land Use for Rural Public Infrastructures

18. In principle, the farmland to be used for rural infrastructure construction of the village collective should be solved by villagers through land adjustment or compensation within the village collective. Considering that the opportunity to adjust farmland in the involved villages is small and the average HH income of the involved villages is low, a subsidy for the farmland occupation induced by construction of the distributed WWTFs and some infrastructures will be provided by the PIUs (Zhaoyang District PMO and Ludian County PMO) to compensate the farmland loss of involved farmers. The land subsidy standard is similar to the compensation standard for permanent land acquisition, as shown in Table 3.

Table 3: Subsidy Standards for Farmland

Subsidy Standard (yuan) Type of Lands Unit Shuimo Xinjie Longshu Sujia Town Town Town Township Paddy field, dry mu 33,908 33,908 33,908 31,564 land 1.1Farmland Land mu 32,604 32,604 32,604 30,350 compensation fee 1.2 Wild Others, grassland mu 16,302 16,302 16,302 15,175 grassland Note: These subsidy standards are same as the compensation rates of land acquisition in the project area.

19. During the LURPI, if there are young crops or ground attachments to be affected, the compensation needs to be paid to involved farmers by local governments using the contingency in the resettlement budget. The compensation standards are based on the standards in section 5 in the RP. 5. Land Use for Rural Public Infrastructure Implementation Procedures and Schedules 5.1 Operating Procedures

20. The procedures are as follows (also the following chart).

(1) Information collection. Farmers with intention to provide land present the details of the land, like location, area, usage, and reference price to village committee, which will then report to the township government. The letter of attorney will be issued by involved farmers, illustrating the entrusted matters, authority and deadlines, etc., with the signature of the principal.

(2) Information disclosure. The township government, after collecting data, will sort out information about land use of different villages and establish a database. The sorted information will be disclosed timely by means of network, radio, newspapers, board, electronic display, etc. The township government will also report to the county (district) government for updating land use rights databases.

P 185 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(3) Negotiation between land user and involved farmer. With the arrangement of the township government, both sides negotiate about the land use conditions and price based on the principle of equality, voluntariness, and mutual benefiting.

(4) Signing the land use contract. When both parties agree on conditions and price, township government provides 4-5 copies of a standard contract (the fifth copy for endorsement), for both parties to sign. The contacts will be signed by all involved HHs, and it should be by both spouses in each HH.

(5) Endorsing the land use contract. The township government endorses the contract.

(6) Registration for land use. The township government registers the land use information timely and exactly, and submits the relevant materials to the county and/or district government for documentation.

(7) Documentation. County/district government documents all relevant materials for land use. Zhaoyang District/Ludian County PMO can acquire the documentation from the county/district government.

(8) Supervising the contract implementation. Both parties should perform the contract positively, and the township government supervises the contract execution. In case of conflicts or disputes, the township government will timely report to the county government; and the latter will inform the Zhaoyang District PMO and/or the Ludian County PMO synchronously.

P 186 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Registration form for the Registration form for the contract-issuing party contractor

Database for land Database for planting change

Information disclose

Negotiation

Finalizing standard land use contract

Signing standard contract

Endorsing contract, if needed

Parties fulfill obligations Contractual fulfill obligations

Contract execution

Figure 1: Land Use for Rural Public Infrastructures Procedure Chart

5.2 Schedule

21. In May–July 2019, the area of the land to be used in the LURPI; and involved towns, villages, communities, and HHs were determined; and the willingness of the land use was confirmed in consultation with each village individually.

22. In November 2020, the Zhaoyang District and Ludian County PMOs; the Longshu, Shuimo, Sujia, and Xinjie town governments, involved villages, groups and HHs; and other related personnel will be on site to measure the actual land area.

23. In December 2020, a meeting will be held on the signing of the LURPI agreement, payment standard, method, time and so on between involved HHs and village committees.

24. In January 2021, the Zhaoyang District and Ludian County PMOs will sign the LURPI agreements with the village committees; and then, the later will sign agreements with involved HHs based on the consultation results.

P 187 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

6. Budget and Sources 6.1 Budget for the Land Use for Rural Public Infrastructures

25. The total budget for the LURPI is 460,500 yuan. All these budgets are included in the cost estimation in overall investment of the project. The detail subsidy for the LURPI is shown in Table 4. Table 4: Subsidy for the Land Use for Rural Public Infrastructures by Each Facility and Infrastructure

Land Compensation Town Construction Content Village Area Standard Subsidy (mu) (yuan/mu) (10,000 yuan) Waste Management Component 1.99 6.49 Baifangzi natural village Xinpeng Village 0.38 1.24 wastewater treatment point Dashiyan wastewater 0.23 0.75 treatment point Xiaoyanjiao No.1 wastewater 0.23 0.75 treatment point Xiaoyanjiao No.2 wastewater Tiechang 0.23 0.75 treatment point Community Shuimo Shulinbian wastewater 0.23 0.75 treatment point Wujiacun wastewater 0.31 1.01 treatment point Goumenkou wastewater Xinpeng Village 0.38 1.24 treatment point Pilot Eco-villages to Reduce Emission 1.43 4.66 Component Goutou Village cultural activity Goutou Village 1.43 4.66 room and square Waste Management Component 1.00 3.26 Jiezicun wastewater treatment Jintang 32,604 0.31 1.01 point Community Luojiawan No.1 wastewater 0.23 0.75 treatment point Luojiawan No.2 wastewater Xinle Village 0.23 0.75 Longshu treatment point Luojiawan No.3 wastewater 0.23 0.75 treatment point Pilot Eco-villages to Reduce Emission 4.23 13.79 Component Liyuan Village entrance village Liyuan Village 4.23 13.79 sign Waste Management Component 2.016 6.57 Shanqiao Village south Shanqiao Village 0.31 1.01 wastewater treatment point Pingdiying Village wastewater Pingdiying 0.38 1.25 Xinjie treatment point Village Fengjiawan wastewater Fengjiawan 0.23 0.76 treatment point Shanqiao Village north Shanqiao Village 0.23 0.76 wastewater treatment point

P 188 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Land Compensation Town Construction Content Village Area Standard Subsidy (mu) (yuan/mu) (10,000 yuan) Shanqiao Village pumping 0.86 2.80 station Pilot Eco-villages to Reduce Emission 2.28 7.43 Component Anjiasongbao Village entrance 0.98 3.20 village sign Anjiasongbao Anjiasongbao Village north 1.30 4.24 leisure activity square Waste Management Component 2.52 3.82 Sujia Town wastewater Sujia Town 0.21 0.32 treatment point Qilibancun wastewater 0.23 0.35 treatment point Lengkacun wastewater Sujia Village 0.31 0.47 treatment point Lucaipingcun wastewater 0.23 0.35 treatment point Xujiagoucun wastewater Liyuan Village 0.23 0.35 Sujia treatment point 15,175 Bohuozhai wastewater Bohuozhai 0.23 0.35 treatment point Yingjiaocun wastewater Xindian Village 0.31 0.47 treatment point Xiaohecun wastewater 0.23 0.35 treatment point Xiaosongshu Village Xiaosongshu 0.31 0.47 wastewater treatment point Village Daijiagou wastewater 0.23 0.35 treatment point Total 15.47 46.05

6.2 Funds Sources

26. The subsidy for the LURPI will be financed by the Zhaoyang District and Ludian County Governments, respectively. The subsidy budget is included in the RP of the project. 7. Information Disclosure, Consultation, and Public Participation and Consultation 7.1 Information Disclosure, Consultation, and Public Participation during Project Preparation

27. During project preparation, the public participation activities are summarized in Table 5.

P 189 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Table 5: Public Participation Activities during Project Preparation

Number Measures of Women Taken in Partici- Topic/ Project Content Form Date Participants pants Objective Concerns Design 14 cadres and Difficulty in 60 households Introduced Provide land internal land May (HH) represen- the project subsidies Community adjustment, meeting 17–19, tatives from 27 and use of similar to land meetings can land 2019 involved collective acquisition subsidy be villages and land standards provided? communities Provide land subsidies Discussion 5 people in the Discuss similar to land with the Yudong project Land subsidy June acquisition project Reservoir scale, standards, meeting 23, 1 standards manageme Management project sources of 2019 nt office Bureau impact, subsidy funds The county (PMO) etc. government pays subsidies. the impact of the use of Provide land 37 village Discussion collective subsidies August cadres and Can the land with village land, and similar to land meeting 13–16, representatives 16 be represent- discuss acquisition 2019 in involved 5 subsidized? tatives the standards villages feasibility of land occupation

28. Community meetings. The survey team introduced the project background to the residents of villager groups participating in the meeting, including the project content, necessity of implementation, possible project impacts, and subsidy policies adopted.

29. Discussion with the Zhaotong PMO to understand the background of the project, the scale of the project, the impact of the project, and so on.

30. Discussion with the village cadres to learn the overall socioeconomic profile of the village community, expectations for the project and requirements, and opinions and suggestions on the use of collective land; and exchange relevant experience. 7.2 Information Disclosure, Consultation, and Public Participation Plan during Project Implementation

31. As the preparation and implementation of the project continues, the Zhaoyang District and Ludian County PMOs will carry out further information disclosure, consultation, negotiation, and public participation. The public participation arrangements are detailed in Table 6.

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Table 6: Project Public Participation Plan

Purpose Method Timeline Responsible Unit Participant Topic/Content Disclosure District and/or of the land Disclosure county project All involved use for rural online; issue Subsidy policy November management villages/ public farmer information 2020 offices (PMOs), households infrastruc- information disclosure town (HHs) tures booklet governments (LURPI) 1) Check and confirm the final impact quantity 2) List of assets Field survey; land offices, street related to the Physical signed and and town All involved November occupied land measure- approved by government, villages/ 2020 and losses of the ment the HHs; village and HHs farmer announcement community cadres 3) Prepare the basic contract for the subsidy agreement The village committees and villager group 1) Progress and cadres and PMOs impact January involved in 7 2) Payment of Villagers All involved 2021– townships in the compensation fee Monitoring participate in villages/ December project area carry 3) Information the meeting HHs 2025 out internal disclosure supervision. 4) Production and external life recovery monitoring agencies 7.3 Grievance Redress Mechanism

32. Public participation is encouraged in the preparation and implementation of the LURPI framework, so that big issues are not expected to arise during the LURPI implementation. However, there may be some unforeseen issues in the implementation. To solve issues effectively and ensure the successful implementation of the project construction and the LURPI, the project has established a transparent and effective channel of grievance and redress mechanism (GRM). The relevant agencies will receive complaint and appeal from the affected people or parties as free. In the process of project construction, the GRM needs to keep effective, so that the affected person (AP) can request to solve relevant complaints or appeals in a timely manner. The GRM have been informed to the public at the information disclosure meeting and the information manual has been issued. At the same time, the procedures for complaints and appeal have been publicized to the involved villages through the media. The GRM is as follows:

(1) Stage 1. If the AP is unsatisfied with the negotiation and implementation of the LURPI agreements, they may make an oral or written complaint with the village committee; and in the case of an oral complaint, it shall be dealt with by the village committee and recorded in writing. The village committee shall resolve it within 1 week;

P 191 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(2) Stage 2. If the AP is unsatisfied with the decision of Stage 1, he or she may make a complaint with the town government; and the town government shall resolve it within 2 weeks;

(3) Stage 3. If the AP is unsatisfied with the decision of Stage 2, he or she may file an oral or write complaint with the Zhaoyang District PMO or the Ludian County PMO. In the case of oral complaints, the PMOs shall handle them and record them in writing. The PMOs shall resolve it within 2 weeks; and

(4) Stage 4. If the AP is still not satisfied with the decision of stage 3, he or she may file a complaint with the Zhaotong Natural Resources Bureau and/or the Zhaotong PMO on the negotiation and implementation of the LURPI agreements; and request administrative arbitration in accordance with the relevant laws and regulations of the State and Yunnan Province. The administrative arbitration institution shall make an arbitration decision within 4 weeks.

33. In addition, according to the applicable laws and regulations, the AP may also bring a lawsuit directly to the people’s court at any time (not subject to the restrictions of the first three stages) against any aspect of the LURPI. All complaints and solutions will be are reported to and recorded by the Zhaotong PMO.

34. Involved persons may also complain about any aspects of the LURPI, including land subsidy standards, etc. to the Zhaotong PMO, an external monitoring and evaluation (M&E) agency. The APs can also submit complaints to ADB which will first be handled by the project team. If an involved person is still not satisfied and believes he/she has been harmed due to non-compliance with ADB’s policy, he/she may submit a complaint to ADB’s Accountability Mechanism.10

35. All agencies will accept grievances and appeals from the AP for free, and costs so reasonably incurred will be disbursed from contingencies. All grievance redress procedures will remain valid throughout project implementation to ensure that the AP will have a way to address related issues.

Table 7: Contact Persons of Relevant Agencies

Agency Name Position Contact Number Zhaotong project management Cui Yuanlei Project contact person 13648706065 office (PMO) Zhaotong PMO Gao Feng Office staff 13051238215 Zhaoyang District Water Zhaoyang District PMO Wang Zhengqi 13887083211 Affairs Bureau Ludian County Water Affairs Ludian County PMO Wang Fangxing 13508705136 Bureau Longshu Town, Ludian County Shen Jichao Town Mayor 13887076566 Shuimo Town, Ludian County Jiang Kaimou Town Mayor 13887090729 Xinjie Town, Ludian County Tang Yadong Town Mayor 13708600218 Sujia Township, Zhaoyang District Zhouyi Town Secretary 13887068076

10 For further information, see: http://www.adb.org/Accountability-Mechanism

P 192 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

8. Monitoring and Evaluation

36. To ensure smooth use of the land and implementation of the project as planned, an internal monitoring will be conducted by the Zhaotong PMO, the Zhaoyang District PMO, and the Ludian County PMO. In addition, an external M&E will be conducted by an external agency that will be recruited by the Zhaotong PMO before the LURPI work commenced. These M&E will be integrated in comprehensive social monitoring reports, together with the M&E of the RP, the ethnic minority development plan, and the social development and gender action plans during project implementation.

8.1 Internal Monitoring 8.1.1 Implementation Procedures

37. The Zhaotong PMO, the Zhaoyang District PMO, and the Ludian County PMO will appoint staff responsible for the internal monitoring during the LURPI implementation. The staff will be trained on ADB’s safeguard policies and the State laws and regulation related to the LURPI. The specialists from the project management consultant to be recruited at beginning of the project implementation will provide the training and guide the PMOs to conduct the internal monitoring.

38. The public participation and consultation on the LURPI, subsidy standards, the LURPI agreement negotiation, and payment of the subsidy, etc. will be monitored; and an internal monitoring report will be prepared and submitted with the project progress report to ADB semiannually. 8.1.2 Monitoring Scope (1) Implementation status of information disclosure, public consultation, and negotiation on the LURPI; (2) Implementation status and actual impacts of the LURPI during project implementation; (3) Payment standard, quantity, and availability of land subsidies; (4) Involved HHs’ economic income after land is used; (5) Whether the use of collective land is used for project design requirements; (6) Number of trainings for involved HHs and number of participants; (7) Complaints and appeals (if any) as well as the redressing results; and (8) Involved HHs’ views and satisfaction levels on the LURPI. 8.1.3 Internal Monitoring Report

39. The Zhaotong PMO will submit semiannual internal monitoring reports to ADB, and the internal monitoring report will be an integral part of the project progress report. The report needs to include progress of the LURPI implementation for the past 6 months. 8.2 External Monitoring

40. In accordance with the requirements of ADB, the Zhaotong PMO will engage a qualified external agency to take the responsibility of external M&E agency for the LURPI.

41. The external M&E agency will monitor and evaluate regularly implementation activities of the LURPI, the progress, quality, funds, satisfaction and appeal cases, impacts, and livelihood

P 193 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan recovery; put forward advice; and submit the M&E reports to the Zhaotong PMO, the Zhaoyang District PMO, the Ludian County PMO, and ADB. 8.2.1 Contents and Methods of External Monitoring A. Baseline Survey

42. The external monitoring agency will conduct a baseline survey of the villages involved in the LURPI of the project to obtain basic information on the production and living standards (living, production, and income levels) of the involved HHs being monitored.11 A random sample of 20% of the involved HHs will be conducted, and a follow-up survey will be conducted over the next few years. This survey will be completed prior to the implementation of the LURPI, and the contents of the base survey report can be included in the first external monitoring report. B. Regular Monitoring and Evaluation

43. During the implementation of the project, the external monitoring agency will carry out regular monitoring of the LURPI twice a year through on-site survey, follow-up survey of sample HHs, and random interviews with involved HHs. A follow-up survey of typical samples of 20% of all involved HHs, and 100% vulnerable group HHs will be selected. Based on this survey, statistical analysis is carried out; and evaluation is made. The following activities will be monitored: (1) payment and amount of the LURPI fees (2) implementation and effectiveness of the training program (3) support for vulnerable groups (4) compensation for loss of properties (5) schedule of the above activities (applicable at any time) (6) organization of the LURPI (7) any livelihood impacts and livelihood restoration (8) the LURPI agreement negotiation and satisfaction (9) whether the involved HHs benefit from the project (10) public consultation

44. The external monitoring agency will participate in public consultations to be held during the LURPI implementation of the project. Through participation in these consultations, the external monitoring agency will evaluate the effectiveness of public participation and the LURPI implementation effectiveness. The external monitor will also monitor, evaluate, and report on the key consultation meetings (including observing some of key consultations during negotiation) to assess if the LURPI process is being followed. C. Complaint

45. The external monitoring agency will visit to involved villages regularly and interview with town governments and the IAs for any complaints. At the same time, they will also meet with any complaining persons and put forward improvement measures and suggestions in view of the existing problems to make the implementation process of the LURPI more effective.

11 The baseline data is mainly for monitoring the HH socioeconomic status before and after project statuses. It is also helpful to assess the quantitative benefit of the project, particularly from the LURPI.

P 194 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

8.2.2 External Monitoring Reporting

46. Based on the information obtained from monitoring and survey, the external monitoring agency will prepare external monitoring reports; and regularly submit reports to the Zhaotong PMO, the Zhaoyang District PMO, the Ludian County PMO, and to ADB. The monitoring will start in January 2021 and end with the completion of the LURPI activities. The LURPI external monitoring report will be one of chapters of the resettlement external monitoring report of the project.

47. After the completion of the project implementation and based on the M&E, the LURPI activities will be summarized and evaluated. The content of the evaluation mainly includes the successful experience of the LURPI; and the lessons to be learned, which can be used for reference for the LURPI in the future. The M&E will be integrated in comprehensive social monitoring reports. Table 8: Schedule of Comprehensive Social Monitoring and Evaluation

P 195 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan ANNEXES:

ANNEX 1: Letter of Intent from Shanqiao Village on the Land Use for Rural Public Infrastructures

Opinions on the Use of the Collective Land of Shanqiao Village in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

According to the main design, sewage treatment equipment and septic tank projects are arranged in the each natural village in the wastewater treatment subproject; the pilot village entrance sign, village week leisure activity square cultural activity room, and other projects are arranged in the pilot ecological villages in the emission reduction subproject; the above subprojects use the collective land with a total of 0.31 mu; and this part of the construction contents belong to the village infrastructure land, which is used to improve the infrastructure of the village’s ecological environment and cultural environment. Before and after the construction of the project, the land is owned by collectives; and the nature of the land is changed from agricultural land to village and/or town infrastructure land. After reaching a consensus with the involved village collective, the villages adjust their land use in the subsequent village planning and link the contents of the project with the village and/or town planning; and integrate the construction content of this project with the village and town planning. The farmer households involved in the land used for this project are compensated, and the village collective uses this part of the funds to implement internal adjustments. The compensation standard shall be implemented based on the unit price of land transfer.

After soliciting opinions from the villagers involved in the village group, we agree to use the collective land of our village for the project. For the specific land use agreement of each village group, please refer to the agreement signed and confirmed by the farmers involved in each village group.

Shanqiao Village, Xinjie Town, Ludian County, Zhaotong City

P 196 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 197 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan ANNEX 2: Letter of Intent from Pingdiying Village on the Land Use for Rural Public Infrastructures

Translation of the Letter: Opinions on the Use of the Collective Land of Pingdiying Village in the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project

According to the main design, sewage treatment equipment and septic tank projects are arranged in the each natural village in the wastewater treatment subproject; the pilot village entrance sign, village week leisure activity square cultural activity room, and other projects are arranged in the pilot ecological villages in the emission reduction subproject; the above subprojects use the collective land with a total of 0.31 mu; and this part of the construction contents belong to the village infrastructure land, which is used to improve the infrastructure of the village’s ecological environment and cultural environment. Before and after the construction of the project, the land is owned by collectives; and the nature of the land is changed from agricultural land to village and/or town infrastructure land. After reaching a consensus with the involved village collective, the villages adjust their land use in the subsequent village planning, and link the contents of the project with the village and/or town planning; and integrate the construction content of this project with the village and town planning. The farmer households involved in the land used for this project are compensated, and the village collective uses this part of the funds to implement internal adjustments. The compensation standard shall be implemented based on the unit price of land transfer.

Pingdiying Village, Xinjie Town, Ludian County, Zhaotong City

P 198 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 199 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Appendix IV: Due Diligence Report on Land Acquisition and Resettlement for the Yudong Reservoir

Due Diligence Report on Land Acquisition and Resettlement for the Yudong Reservoir

Zhaotong Municipal People’s Government

December 2019

P 200 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

1. Project Background

1. The Yudong Reservoir is a large-scale water resources in Yunnan Province. It is a concrete gravity dam with height of 87.0 meters (m), top length of 227.5 m, and top width of 12.0 m. In 1992, the Yudong Reservoir Project commenced construction. In December 2000, the Yudong Reservoir was constructed and accepted (Source: Official website of the Yunnan Hydropower and Water Resources Survey and Design Institute). The total design capacity is 364 million cubic meters, with the key function as the resource of urban drinking water. The catchment of the Yudong Reservoir, or the upstream of the Sayu River, has a surface area of 709 square kilometers. The catchment is located in the northwestern part of the Zhaoyang District, Ludian County, and Yongshan County. The Yudong Reservoir is 23 kilometers (km) away from the Zhaotong City; and 405 km away from the Kunming City, the capital of Yunnan Province.

2. The Yudong Reservoir is serving for domestic water for the urban areas of Zhaoyang District, Ludian County, Lapu Town, Sheyu Town, and Leju Town, with a total population of approximately 600,000 (Municipal Level Centralized Drinking Water Sources Water Quality Status Report in May 2018). It also serves a comprehensive function of water provision for agricultural irrigation, industrial use, flood control and power generation, and ecological regulation.

3. As a linked facility (the improvement of water quality due to the Asian Development Bank- financed project will improve the water quality in the Yudong Reservoir), the Yudong Reservoir needs to be reviewed to ensure that there are no outstanding issues on land acquisition (LA) and resettlement (LAR). This due diligence report (DDR) aims to review the completed works for the LAR, the actual situation, and the compensation and resettlement of the affected people.

2. Due Diligence Report Preparation

4. This DDR was prepared by the Zhaotong City project management office and the resettlement plan (RP) preparation institute. During 5–30 May 2019, a due diligence review team conducted a visit to the Natural Resources Bureaus and the Resettlement Offices of the Zhaoyang District, Ludian County, and related townships to collect relevant materials for the LA compensation and resettlement agreements; and conduct focus group discussions (FGDs) and interviews with affected people in some reservoir areas. The main contents of this DDR include the actual situation of the LA and house demolition (HD), the process of compensation for the LA and demolition, the public participation and complaints received, an assessment on the LA and demolition compensation and resettlement process and payment situation, and the conclusions.

3. Yudong Reservoir Impacts

5. With the normal storage water level at altitude of 1,985 m, the total inundation area is 1,290 hectares (ha, or 19,350 mu). The inundation area involved 4 towns in 2 counties, including the Leju, Sayu, and Sujia towns in the Zhaoyang District; and the Xinjie Town in the Ludian County. About 7 village committees and 76 natural villages were involved. In the

P 201 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan inundated area, there were 450.9333 ha of farmland (or 6,746 mu, including 1,300 mu of paddy field; and 5,446 mu of dryland); 61.4667 ha of gardening area (or 922 mu, including 891 mu of orchard; and 31 mu of tea garden); 151.6667 ha of forestland (or 2,275 mu); 32.4667 ha of homestead land (or 487 mu); 2,328 households (HHs) with 10,470 people affected by the LAR; 294,000 square meters (m2) of housing buildings; and 8 km of Class IV highway; 35 km of rural road; 8 km of 35-kilovolt transmission line; 63 km of communication line; 3 village committees; 14 primary schools; 3 convenience shops; 1 tobacco leaf station; 15 brick kilns; 5 hydraulic powered processing stations; and some other attachments and sporadic fruit trees. There were 2,222 HHs and 10,023 people relocated and resettled. Except for the inundation area and after optimization during the Yudong Reservoir’s construction, the construction area and management area permanently acquired land of 50.817 ha (or 762.26 mu); and involved the resettlement of 13 HHs with 59 people.

6. During the period between 1996 and 2000, 2,005 HHs with 9,083 persons were relocated to 82 villages in the irrigation area of the Yudong Reservoir in Zhaoyang District and Ludian County. The per capita farmland area of these affected people was more than 0.7 mu after resettlement; and so, they could continue their farming activities. Another 217 HHs with 940 people were relocated in about 20 places in the Yudong Reservoir’s surrounding area, including the Shuangyukou, Tangjiaping, and Xujiadashan villages, to continue the agricultural production there. The budget for resettlement was CNY52.31 million, of which the CNY46.27 million was used for direct compensation payment to the affected people. The Zhaotong Municipality People’s Government and the Ludian County Government were responsible for the implementation of the LAR for the Yudong Reservoir.

4. Construction Land Use Approval

7. According to the approval letter issued by the Ministry of Land and Resources of the People’s Republic of China on 1 September 1999 on the Approval of Land Use Application for Zhaotong Yudong Reservoir (Ministry of Land and Resources, [1999], No.453) in response to the application letter of the Application for Allocation of Land for the Zhaotong Yudong Reservoir Inundation Area (Yunnan Provincial People’s Government, [1998], No. 237), 1,290 ha (or 19,350 mu) of land use was approved. Based on this approval, the Zhaotong Municipal Land Administration Bureau (LAB) processed the state-owned Land Use Certificate in December 2000 following relevant regulations; and approved the use of 1,290 ha (19,350 mu) of land. The certificate number is No. 0111151, and the serial number of the certificate is NO.010655463. The land use in 1,290 ha for the Yudong Reservoir is legitimate.

8. According to the approval letter issued by the Yunnan Provincial Land Administration Department on 17 January 1994 on the Approval of Land Acquisition for the Zhaotong Yudong Reservoir Construction Facility (Yunnan Provincial Land Administration Department, [1994], No.18), the land use of 50.817 ha (762.26 mu) was approved. Accordingly, the Zhaotong Municipal LAB issued the land use certificate in two batches. In 1998, a land use certificated was issued for the land use of 0.472 ha, with the Certificate No. C-27-11 (1998, in which a total of 1.0667 ha was approved); and in December 2000, another land use certificate was issued for the land use of 50.345 ha (755.16 mu), with the Certificate No. 0111150 (2000). Total approved land use was 50.817 ha in two batches.

P 202 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

5. Domestic Resettlement Plan Preparation and Implementation Status

9. According to the field survey, a domestic RP was prepared and introduced to the affected HHs (AHs) through village committees prior to the commencement of the Yudong Reservoir and its LAR activities. The RP included schedule arrangement of the LAR, compensation policies and standards, relocation places, etc. All the actions in domestic RP had been completed, and the goals of resettlement had been fully achieved. Progresses of the LAR were reported to the county and township governments through the village committees. Questions related to relocation and compensation disbursement, etc. were recorded by the village committees. Village committees tried to reply to questions and solve complaints at the first step. If they could not solve the complaints, the village committees would report to the county and township governments. No official resettlement completion report was available, as the land use approval document and the LA were completed many years ago. The State- owned Land Use Certificate was issued by the Land and Resources Bureau. No legacy issues related to the LAR is found according to the field survey.

6. Compensation Payment and Resettlement Measures

10. The actual cost for the LAR for the Yudong Reservoir was CNY78.6286 million. There are no pending issues on compensation for affected people.

11. Based on the FGD, the compensation standard for the LA was less than CNY10,000/mu. The money had been paid to villages and the HHs in full. The HD compensation had been paid to the AHs too, and homestead land was arranged. The compensation was sufficient for rebuilding the house. The actual compensation rates were in compliant with the applicable regulations and the RP at that time. There are no pending issues on the compensation rates and other resettlement entitlements.

7. Assessment on the Livelihood Restoration and Living Conditions for Affected People

12. According to the survey, the LAR was completed between 1994 and 2000. In May 2019 when the project survey team conducted the survey, the FGD method was used. Through the FGD with village representatives, the project team collected information on the socioeconomic status of the affected people. The FGDs were conducted in the affected Jule Village in the Sayu Town; Buchu, Guazhai, Liyuan, and Xindianzi villages in the Sujia Township; and the Xinhe Village in Leju Town. The findings are

(1) Before the LAR, the AHs’ incomes mainly relied on farming and livestock raising. The per capita income was approximately CNY700/year–CNY1,000/year. Nowadays, the main income source of the AHs is from non-farming jobs, including long-term or seasonal jobs, accounting for more than 40%–60% of total income. The per capita income is approximately CNY4,000/year–CNY8,000/year, significantly higher than the income level before the LAR.

(2) Currently, the major expenditure of the AHs is living and educational expenses, accounting for approximately 50% of total expenditures; and followed by the medical and

P 203 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

social expenses, accounting for approximately 20% of total expenditures. Generally, annual incomes exceed annual expenditures. The surplus is saved up for house building and other HH affairs.

(3) Before the LAR, most of the housing buildings were mud-brick structure, with few in brick- wood structure. After the LAR, with assistance from the HH savings and government subsidies, the housing quality now has significantly improved as most of the houses are now brick-concrete structure with few brick and mortar structure. Mud-brick house barely exist anymore. According to the field survey, the average house area/HH of the AHs has increased from approximately 130 m2 to 150 m2.

(4) The infrastructure service level has significantly improved after the LAR, including the village access roads, power grid, school and clinic services, water resources facilities, and internet services.

8. Public Consultation

13. During the LAR implementation, relevant government departments had conducted sufficient discussion and consultation with the village secretaries and leaders of affected villages so that they could fully consider the affected people’s comments and suggestions; and conduct public consultation in various methods.

(1) Public Consultation Meetings

14. Before the LAR was implemented, relevant group meetings were conducted to (i) introduce the basic situation of the proposed project, the scope of the planned LA, the resettlement locations, etc.; and (ii) solicit opinions and suggestions from the representatives of the affected villages and related units. The opinions were recorded and given consideration during the implementation.

(2) Consultation Meetings for Compensation and Resettlement

15. Before the LAR implementation, consultation meetings were held to introduce to the village leaders and village representatives the relevant policies, regulations, compensation standards, payment time, and land replacement locations. Relevant departments were convened to have discussions and consultations on the LAR, following national regulations and with consideration of the comments and suggestions from the governments and villages.

(3) Land Acquisition and Compensation

16. Village leaders, village representatives, and the LAB representatives fully participated in the whole process, including the detailed survey and measurement, compensation standards, the LA agreement negotiation and compensation payment, etc., to ensure the work is transparent and fair.

9. Grievance and Redress Mechanism

17. If the affected people had complaints or question regarding the LA or other issues, they could raise the complaints through various channels, following domestic regulations and policies. Basically, the process was as below:

P 204 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(1) Step 1. If the affected people are not satisfied with the LA compensation, resettlement, or other issues, they can raise the complaints orally or in written to the village committee or the township government;

(2) Step 2. If the affected people are still not satisfied with the results of Step 1 complaint, he/she can raise the complaints to the county and/or district LABs or the LA offices after receiving results of Step 1;

(3) Step 3. If the affected people are still not satisfied with the results from the county and/or district LABs or the LA offices, he/she can raise the complaints to the county and/or district governments, after receiving results of Step 2.

(4) Step 4. If the affected people are still not satisfied with the results from the county and/or district governments, he/she can raise them to higher authority; or raise an administrative suit at the court at any stage.

18. According to the survey, the affected people were aware of the complaint address mechanisms. During the implementation, all complaints received had been handled properly. The affected people were satisfied with the compensation, livelihood restoration, and resettlement measures. There is no pending issues on the LAR of this reservoir.

10. Conclusions

19. The Yunnan Provincial Land Administration Department issued the Approval of Land Acquisition for the Zhaotong Yudong Reservoir Engineering Facility in January 1994. The Ministry of Land Administration issued the Approval of Land Use Application for Zhaotong Yudong Reservoir in 1999. The Land Use Certificates (Reservoir facility construction and inundation area) were obtained in 2000.

20. According to the due diligence review, the compensation for the LA, the HD, and relevant infrastructures had been paid in full and in time. There are no legacy payment issues.

21. During the preparation and implementation of the LA, the county, district, and township governments had organized various public consultations. During implementation, the complaints addressing mechanism was working well. All complaints received had been handled properly. There are no legacy complaints issues.

22. During implementation, the replacement entitlements delivered and/or compensation payment for land, houses, and other facilities have strictly followed the relevant approved plans. The affected villagers were properly resettled. The infrastructures were restored or improved. The affected people’s living standard and housing conditions had been improved significantly. In general, there are no legacy issues on the LAR of the Yudong Reservoir.

P 205 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Annexes Annex 1: Land Use Certificate (Inundation Area, Certificate No. 0111151 [2000], Certificate Serial No. NO010655463)

P 206 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex 2: Land Use Certificate (Reservoir Facility Construction and Living Area, Certificate No. 0111150 [2000], Certificate Serial No. NO010655462)

P 207 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex 3: Approval of the Land Use Application for the Zhaotong Yudong Reservoir (Ministry of Land Resources [1999] No.453)

P 208 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex 4: Approval of the Land Acquisition for the Zhaotong Yudong Reservoir Engineering Facility (Yunnan Provincial Land Administration Department [1994] No.18)

P 209 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex: Payment Receipts

P 210 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 211 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 212 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

P 213 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Appendix V: Due Diligence Report on the Land Use for Rural Distributed Wastewater Treatment Facilities in the Yudong Reservoir Protection Zone

Due Diligence Report on the Land Use for Rural Distributed Wastewater Treatment Facilities in the Yudong Reservoir Protection Zone

Zhaotong Municipal People’s Government December 2019

P 214 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan 1. Project Background

1. The Yudong Reservoir Drinking Water Resources Protection Zone Environmental Comprehensive Improvement Project (a domestic project) in Zhaotong City has built 18 distributed rural wastewater treatment facilities (WWTFs) that involved 18 natural villages of 8 administrative villages in 3 towns of Zhaoyang District of Zhaotong City. The pipeline installations for these 18 WWTFs are included in components of the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project (the Asian Development Bank [ADB]-financed project). Therefore, these WWTFs are identified as existing facilities of the ADB-financed project. According to ADB’s Safeguard Policy Statement (2009), a due diligence on the land acquisition (LA) and resettlement for the 18 WWTFs needs to be conducted. This due diligence report (DDR) is about the land use of the 18 WWTFs.

2. The total investment of the domestic project was CNY9.16 million. The construction was started in August 2017 and completed in October 2019. The land use for the 18 WWTFs was required in the way of the Land Use for Rural Public Infrastructures (LURPI), which have been completed by December 2018.1

2. Preparation of the Due Diligence Report

3. The DDR for the land use for the 18 WWTFs was prepared by the Zhaotong City project management office and the resettlement plan Reparation Institute, with the assistance of the transaction technical assistance specialists. The DDR preparation team conducted due diligence for the land use for the 18 WWTFs in September 2019; visited the project sites; and held extensive discussions with the Zhaoyang District project management office, the Natural Resources Bureau (NRB), and relevant representatives of the affected households (AHs). The main scope of the DDR includes the actual status for land use, the land use process, public participation and grievance redress mechanism (GRM), compensation and disbursement status, and conclusions and recommendations.

3. Impacts Related to Land Use 4. The 18 WWTFs involved the LURPI of a total of 17 mu of collective land, but no temporary land occupation and building demolition. The land use involved 19 rural households (HHs) with 78 people in 18 natural villages of 9 administrative villages in the towns of Leju, Sayu, and Sujia of the Zhaoyang District in Zhaotong City, as presented in Table 1. Table 1: Impact Scope of the Land Use for Rural Public Infrastructures

Total Land LURPI Cultivated Involved Loss Facility Villages and Village Groups area ratio No. Cultivated (mu) HHs Persons % Land (mu) 1 Guojiadunzi 1.20 16.2 1 7 7.4 2 Yangjiatianjing 1.04 15.3 1 5 6.8 Sujia Town Buchu Village 3 Xiazhafang 0.96 12.4 1 4 7.7 4 Xiashituogu 0.96 14.1 1 4 6.8

1 The LURPI is different from permanent LA as the land ownership is not changed. After the LURPI, the land is still a collectively owned land; but the affected household (HH) may lose the land management and operation rights (if the land was contracted to HHs). In case of the permanent LA, the land ownership changes from collectively owned to state-owned.

P 215 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Total Land LURPI Cultivated Involved Loss Facility Villages and Village Groups area ratio No. Cultivated (mu) HHs Persons % Land (mu) 5 Xiaosongshu 0.48 12.4 1 3 3.9 Xiaosongshu Village Xiaosongshu 6 Village No.90 0.48 13.2 1 4 3.6 Group Dahuodi No.2 7 Xindian Village 0.48 5.6 1 5 8.6 Group Kangjiayuanzi 8 0.48 16.4 1 4 2.9 No.3 Group Baogugou 9 Yuba Village 0.48 13.5 1 5 3.6 No.6 Group Yuba No.8 10 0.48 12.0 1 4 4.0 Group Dapingzi No.2 11 Liyuan Village 0.48 9.3 1 3 5.2 Group 12 Zhongzhuazhai 0.52 8.8 1 3 5.9 Weijiabaobao 13 0.48 10.6 1 3 4.5 Guazhai Village No.6 Group 14 Yuanjiaying 0.92 9.8 1 4 9.4 15 Yuanjiaying 0.48 9.2 1 3 5.2 16 Yanjiashan 1.28 6.8 1 4 18.8 Sayu Town Jule Village 17 Qimihei 0.96 5.9 1 4 16.3 18 Leju Town Xinhe Village Zhongying 4.81 13.1 2 9 36.7 Total 17.00 19 78

5. Before the land use, the Zhaoyang District NRB, the Environmental Protection Bureau (EPB), along with the governments of Leju, Sayu, and Sujia towns consulted with 19 involved HHs; and reached land compensation agreements on the LURPI.

6. Four HHs in Jule and Xinhe villages lost farmland area of more than 10% and the two of them lost near 40% of farmland. However, their agricultural income accounts for less than 30% of the total income; and so, their HH income loss was less than or near 10%. Other HHs not living in Jule and Xinhe villages faced less than 10% of farmland loss, and their HH income loss was less 5%.

4. Land Subsidies and Disbursement

7. The project utilized collective land to carry out the construction of public facilities in the village, which is in line with the scope of “one case, one discussion.” Village meetings and meetings of villagers’ representatives were conducted for the land use. The HHs were consulted and the land use agreements were confirmed. After the land subsidy standard was agreed, the area and scope of land uses are measured.

8. In principle, for village collectives’ internal infrastructure construction and land use are solved through internal land adjustment between villagers or subsidy provided to the affected villagers. Considering that the cultivated land per capita in the project area is small, and the land adjustment is difficult in project area, the Zhaotong City People’s Government provided subsidies for the land use from environmental protection funds. With assistance from the Zhaoyang District and townships, after consultation with the HHs, the Zhaoyang District EPB provided land use subsidy based on the standard of CNY30,000/mu; and entrusted the Zhaoyang District and townships to sign the land use agreement with the HHs, as shown in

P 216 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Annex 1 on land use agreement with the HH. A total of CNY510,000 was disbursed for the project land use. Young crop subsidies were agreed based on the actual farming status at the beginning of construction, and the land subsidy and young crop fees were disbursed in December 2018.

9. The subsidy standard of CNY30,000/mu is slightly lower than the compensation rate for the permanent LA (CNY33,908/mu–CNY45,292/mu), and the construction of the WWTFs belong to public affairs of villagers (and involved HHs will also benefit). Based on public consultation, local government agreed to provide land subsidies to the HHs who were involved in the LURPI at the rate of CNY30,000/mu. According to the field survey, all the involved villagers also voluntarily accepted the subsidy standards.

5. Livelihood Restoration Measures

10. As the main source of income for the villagers is non-agricultural income, land occupation does not have significant impact on the villagers’ income. Therefore, there was no special livelihood restoration measures under the domestic project. However, land subsidies were paid directly to the involved HHs. They would arrange production and development by themselves. In addition, if any AHs need assistance for livelihood restoration, the concerned local government departments (e.g., agriculture bureau, human resources and social security bureau) can provide various measures, as needed, including skills training; employment promotion; social insurance; etc.

6. Income Restoration Assessment of the Involved Households 11. The LURPI involved 19 HHs. The four HHs were visited and surveyed randomly to understand their HH socioeconomic status. The scope of the survey includes occupation, income, and expenditure of the HHs.

12. According to the survey, 12% among the laborers of the HHs are engaged in crop production; and seasonal non-farming laborers account for 88%. Figure 1 shows the result of the survey.

13. The main income sources of the HHs were from wages of non-farming work and agricultural production. The income of the four HHs before and after the land occupation is presented in Tables 2 and 3.

Table 2: Income of Involved Households Before Land Occupation (2017) (Unit: CNY/Year/Person)

Affected Household (HH) Average HH Income Number of HH Number of Person Minimum Maximum Average 4 20 4,000 8,000 6,950

Table 3: Income of Involved Households After Land Occupation (2019) (Unit: CNY/Year/Person)

Affected Household (HH) Average HH Income Number of HH Number of Person Minimum Maximum Average 4 20 6,000 10,600 8,675 Data source: Field survey. Number of samples: Involved HHs. N = four HHs.

P 217 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

14. The main income source of the HHs is from wage of non-farming work and agricultural production, and the wage of non-farming work accounted for 77%–88%, as presented in Table 4 and Table 5, structure of the HH incomes before and after the LA. Table 4: Structure of Household Income Before Land Occupation (Unit: CNY/Year/Household)

Category Agriculture Income Wage Income Total Total income of affected 31,000 108,000 139,000 households Average per capita income of 1,550 5,400 6,950 affected households Percentage (%) 22.3 77.7 100.0

Table 5: Structure of Household Income After Land Occupation (Unit: CNY/Year/Household)

Category Agriculture Income Wage Income Total Total income of involved 20,500 153,000 173,500 households Average per capita income of 1,025 7,650 8,675 involved households Percentage (%) 11.8 88.2 100.0 Data source: Field survey. Number of samples: Involved households. N = four households.

15. The survey results show that major expenditures of the HHs are expenses of living, education, and others, accounting for 48%, 10%, and 17% of the total expenditure, respectively; and followed by medical expenses, accounting for 9% of the total expenditure. Details are presented in Table 6. Table 6: Average Household Expenditures of Involved Households

Average Per No. Expenditure Total Spending Percentage Capita Spending 1 Daily expense (food, clothes, etc.) 75,000 3,750 48% 2 Education 16,000 800 10% 3 Medical expense 14,000 700 9% Transportation (including gas, car 4 10,000 500 6% maintenance, etc.) 5 Communication 9,000 450 6% 6 Gifts 6,000 300 4% 7 Others 27,000 1,350 17% 8 Total 157,000 7,850 100% Data source: Field survey. Number of samples: Involved households. N = four households.

16. In general, the incomes of the HHs mainly lie on non-agricultural income, and the incomes of HHs have been fully restored and slightly higher than the levels before project.

7. Public Consultation

17. During the process of the LURPI, the Zhaoyang District EPB and the township governments held multiple meetings; conducted full discussions and consultations with involved villages’ leaders and HHs; and ensured to understand their comments and suggestions. The following public participations and consultations were held:

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(1) Public participation and consultation meetings. Before the land use, relevant workshops and discussions were held to introduce the project information and planned land use area; comments and suggestions from village leaders and villager representatives were heard and considered; and suitable land use sites were chosen and was agreed by the land owners.

(2) Land use compensation and restoration consultation meeting. Before the land use, relevant policies, regulations, subsidy standards, and payment timelines were introduced to village leaders and the HHs.

(3) Land use and subsidies. In the detailed surveys, subsidy standards consultations, and fee disbursements, leaders of affected villages, the HHs, township government officials, and the Zhaoyang District EPB officials participated in the whole process, which ensured the fairness, justice, rationality, and transparency.

18. During the due diligence process, it is confirmed that the Zhaoyang District NRB, the Zhaoyang District EPB, and relevant departments have consulted through discussions and consultations with involved villages and the HHs; and ensured that they were aware of the comments and suggestions from the HHs, and multiple public consultations and negotiations were also conducted.

19. In May and September 2019, the DDR survey team visited the Zhaoyang District NRB, the Zhaoyang District EPB, the people’s government of various counties and townships, and the village committees in the affected area; conducted field investigations, held interviews, and conducted surveys to part of the HHs; and obtained information on project land use impacts, subsidy standards, and disbursement status, etc.; held workshops with the HHs, and acknowledged the status of public participations; and consulted whether the HH income will be affected or not after the LA, and obtained comments and suggestions for the LA. The record of the interviews is listed in Annex 2.

8. Grievance Redress Mechanism

20. The construction unit of the 18 WWTFs is the Zhaoyang District EPB, which is responsible for the coordination and compensation payment for the LURPI. The GRM for the LURPI is clear and complete. The Zhaoyang District and township governments are responsible for solving majority of grievance redress questions; and some questions are reported to the Zhaoyang District EPB as the construction management unit. The Zhaoyang District EPB and governments consulted with the AHs to solve the potential problems.

21. The three-stage GRM for implementation of the LURPI of this project is summarized as follow:

(1) Stage 1. If the affected person (AP) is dissatisfied with the land subsidy or relevant implemented processes, he/she may make oral or written complaint to the community and/or village committee and the township government; and in case of oral compliant, the community and/or village committee and the township government shall handle such complaint and make written records. The community and/or village committee and the township government shall provide response within 1 week;

P 219 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(2) Stage 2. If the AP is dissatisfied with the resolution of Stage 1, he/she may file the complaint to the Zhaoyang District EPB. The Zhaoyang District EPB shall provide response within 2 weeks; and

(3) Stage 3. If the AP is still dissatisfied with the resolution of Stage 2, he/she may file the complaint to the Zhaotong City People’s Government to apply for administrative reconsideration; or he/she may file an administrative lawsuit with the People’s Court in accordance with the Civil Procedure Law at any stage. The AP may file complaint regarding any aspect of the LURPI, including subsidy standard and disbursement timelines, etc.

22. The above grievance channels have been notified through meetings and other means to make the HHs fully aware of their right of complaint.

23. According to the survey conducted by the project resettlement survey team, the HHs were aware of their rights and grievance redress channel. During the LURPI process, no appeal or complaint was filed or received; and the HHs are satisfied with the subsidies and livelihood restoration measures.

9. Conclusions

24. Across the process cycle of the LURPI, the Zhaoyang District People’s Government, the Zhaoyang District NRB, the Zhaoyang District EPB, and relevant units have organized multiple public consultations with the HHs. The opinions of the involved villages and HHs have been fully incorporated and addressed during project implementation.

25. The land subsidies for the LURPI and payment timeline were all implemented in accordance with the signed agreements between the local government department and the HHs. In general, all subsidies and restoration measures have been implemented fully based on public consultations and signed agreements. There is no pending issues related to the LURPI of the 18 WWTFs.

26. In the process of project implementation and the LURPI, the GRM worked well. Up to now, there is no grievance received. The involved villages and the HHs are very supportive of the project construction and very satisfied with the subsidies and restoration measures.

27. According to the sampling survey, the livelihood and income levels have been fully restored so far, compared with the status prior to land occupation.

P 220 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan ANNEX 1: Land Subsidy Agreement (2 copies)

Note: The agreement is a land occupation and compensation agreement. The township government on behalf of the environmental protection bureau signs an agreement with the farmers to obtain the right to use the farmer’s contracted land for the construction of the village collective wastewater treatment facilities. The land is still collectively owned.

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P 222 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan Annex 2: Interview Records Xinhe Village Decentralized Wastewater Treatment Facilities Occupied Land Villagers Interview Location: Xinhe Village, Leju Town, Zhaoyang District in Time: October 29, 2019 Zhaotong City

Participants: Staff of the Resettlement Plan Preparation Unit

Interviewee: Villager Mr. Zeng in occupied land Major questions and responses: 1. Mr. Zeng, 48 years old, Han nationality, Zhaoyang District Leju Town Xinhe Village; the household includes 5 people: wife is 47 years old and is currently out of village for work, son is 26 years old and is currently out of village for work, and the other two sons are 16 and 17 years old and currently go to high school. In summary, the total number of persons is 5 in the household, within which 0 people is over 60 years old; 2 are laborers; and 2 persons in school-age. 2. Household income: income mainly comes from wage, accounting for 90% of the total income; and the total income level (50,000 yuan more in each year). 3. Household farms: a total of 10 acres of farm, this project occupied 5.5% of the total farmland, and the impact on household income is 3%. 4. The standard of land occupation subsidy is rational and fair; and main use for compensation: investment and deposit in bank. 5. The construction of this project benefits the country and benefits the people; and this household supports the project construction. 6. Other requirement or questions remained: N/A

Buchu Village Decentralized Wastewater Treatment Facilities Occupied Land Villagers Interview Location: Buchu Village, Sujia County, Zhaoyang District Time: October 29, 2019 in Zhaotong City

Participants: Staff of the Resettlement Plan Preparation Unit

Interviewee: Villager Ms. Chi in occupied land Major questions and responses: 1. Ms. Chi, 48 years old, Han nationality, Zhaoyang District Sujia County Buchu Village; the household includes 4 people: husband is 47 years old and is currently out of village for work, son is 26 years old and is currently out of village for work, and daughter is 16 years old and currently go to high school. The total number of persons is 4 in the household, within which 0 people is over 60 years old; 4 are laborers; and 0 person in school-age. 2. Household income: income mainly comes from wage, accounting for 80% of the total income; and the total income level (20,000 yuan more in each year). 3. Household farms: a total of 8 acres of farm, this project occupied 12.5% of the total farms, and the impact on household income is 4%. 4. The standard of land occupation subsidy is rational and fair, and main use for compensation: medical expense and deposit in bank. 5. The construction of this project benefits the country and benefits the people, and this household supports the project construction. 6. Other requirement or questions remained: N/A

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Buchu Village Decentralized Wastewater Treatment Facilities Occupied Land Villagers Interview Location: Buchu Village, Sujia County, Zhaoyang District Time: October 29, 2019 in Zhaotong City Participants: Staff of the Resettlement Plan Preparation Unit Interviewee: Villager Mr. Zhao in occupied land Major questions and responses: 1. Mr. Zhao Shengxian, 65 years old, Han nationality, Zhaoyang District Sujia County Buchu Village; the household includes 12 people: wife is 66 years old and is currently out of village for work, two sons are 26 years old and 27 years old and are currently out of village for work, two daughter-in-law are both 26 years old, daughter is currently out of village for work, and five grandsons currently go to school. In summary, the total number of persons is 12 in the household, within which 2 people are over 60 years old; 5 are laborers; and 5 persons are in school-age. 2. Household income: income mainly comes from wage, accounting for 90% of the total income; and the total income level (60,000 yuan more in each year). 3. Household farms: a total of 32 acres of farm, this project occupied 4% of the total farms, and the impact on household income is 0.16%. 4. The standard of land occupation subsidy is rational and fair, and main use for compensation: business. 5. The construction of this project benefits the country and benefits the people, and this household supports the project construction. 6. Other requirement or questions remained: N/A.

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Appendix VI: Due Diligence Report on Temporary Land Occupation for the Longshu River Rehabilitation Construction Project

Due Diligence Report on the Temporary Land Occupation for the Longshu River Rehabilitation Construction Project

Zhaotong Municipal People’s Government

December 2019

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1. Background 1. The Longshu River Rehabilitation Construction Project (a domestic project) involves the Longshu River Basin; and its tributaries of the Guazhai River Watershed, Lan River Watershed, Buchu River Watershed, Xin River Watershed, and other watersheds that flow into the Yudong Reservoir. The project involves the rivers in the Longshu, Shuimo, and Xijie towns of the Ludian County. The project was implemented from 2015 to 2018. The details of the implementation are shown in Table 1. Only temporary land use was involved during the domestic project implementation. Table 1: Implementation Arrangement Year Item 2015 2016 2017 Location Longshu Town Xinjie Town Shuimo Town

Scope Main stream of Sayu River, Longshu River, and its tributaries Longshu River Wujia Village Starting point Shenjiawanzi Bridge gate bridge Shenjiawanzi Ending point Xionghuangpo Longshu gate Bridge Length (kilometer) 13.077 6.979 11.095

Temporary land occupation (mu) 147.64 145.00 176.00

Cost for land occupation (CNY10,000) 231.90 269.90 120.09

Approved investment (CNY10,000) 6,331.85 8,704.23 5,564.03

Time of completion March 2016 April 2017 March 2018

2. The Longshu River rehabilitation project is considered as a linked project with the Asian Development Bank’s loan for the Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project. So, this due diligence report (DDR) is prepared to ensure that there is no pending issues on the land use under the linked project. 3. All rehabilitation construction was conducted within the scope of existing river channels. All land is state-owned within the boundary of river (including river surface and floodplain), which does not involve any collective land. However, the temporary land occupation (TLO) occurred during construction. As of the end of 2018, compensation for temporary land and land restoration had been completed. This due diligence will provide a review of the TLO, compensation, and land restoration to understand its actual situation and the views of affected residents. 2. Due Diligence Report Preparation 4. This resettlement DDR was jointly prepared by the Zhaotong City project management office and the resettlement institute, with assistance of the transaction technical assistance specialists. Site visits were conducted during May–October 2019. The Ludian County Natural Resources Bureau and the Ludian County Water Affairs Bureau, as well as other stakeholders were interviewed. The main contents of this DDR cover the TLO, procedures of land compensation and land restoration, public consultation conducted and the grievance redress mechanism (GRM), payment of the compensation, and conclusion.

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3. Impacts of Temporary Land Occupation 5. The TLO of the Longshu River rehabilitation project includes land outside of the river embankment and for construction of access road. All TLO is farmland. The total area is 555.2 mu, involving 25 natural villages of 12 administrative villages (communities) in the Longshu, Shuimo, and Xinjie towns, with a total of 50 temporaily affected households (AHs) with 215 persons. The details are presented in Table 2. Table 2: Temporary Land Occupation and Affected People Tempo- Rehabi- rary Affected Starting and Town- Village/ litation Land Period Year Group Ending Points ship Community Length Occu- (month) House- Person (km) pation hold (mu) Longshu, Longshu River Longxiang, gate to Longshu 2015 Zhaobi, 11 13.08 20.00 6 20 78 Shenjiawanzi Town Xinle, Bridge Guzhai Jiufang, Xinjie 4 2.30 180.00 10 5 25 Shenjiawanzi Zhongjiaying Town 2016 bridge to Xinjie (three 2 2.10 15.20 6 5 20 Xionghuangpo community sections) Fujiaying 2 2.58 100.00 8 6 23 Shuimo village, Wujia Village Shuimo Shuimo 2017 bridge to village, 6 15.00 240.00 10 14 69 Town Longshu gate Naheicu, Xinpeng village

Total 35.06 555.20 50 215

Note: Temporary land occupation for less than 1 year will be compensated as 1 year. 6. The Water Resources Bureau of Ludian County and the people’s governments of the Longshu, Shuimo, and Xinjie towns fully communicated with the affected persons (APs) in the 12 villages involved in the TLO and reached agreement before and during the construction. 4. Compensation Standard for the Temporary Land Occupation and Implementation 7. The TLO for the Longhsu River rehabilitation project started from May 2015 and was completed in October 2017. If involved in the TLO, the APs were consulted first. The young crops compensation and the land reclamation fee were paid in time to facilitate the land reclamation after the completion of construction. Overall, the TLO during construction is not big in area; and the loss caused to farmers was compensated timely. After construction, the temporarily occupied land has been restored by construction contractors. The project construction has little and temporary economic impact to the affected farmers. 8. Most temporarily occupied land was farmland. The project was implemented during 2015– 2017. The construction of each river section only lasted for less than half a year. After consultation with the local village group, both parties agreed to compensate the young crops at a price of CNY500/mu/year. 9. In addition, construction activities would remove the topsoil of farmland. The soil layers would be compacted and became uneven. The soil needs to be properly reclaimed and

P 227 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

fertilized. The recovery period generally last for 3 years. After consultation with the local villagers’ representatives and agreed by the affected farmers, it is not difficult to restore the farmland. The affected farmers can reclaim the land by themselves. Therefore, in addition to the young crop compensation of CNY500/mu, the land reclamation fee was determined as CNY2,000/mu. In sum, the compensation rate is 2,500 CNY/mu for the TLO. 10. As the project implementation unit (PIU), the Yudong Reservoir Administration Bureau allocated the compensation to the three involved township governments; and then, the township governments disbursed the compensation to the affected farmers. 11. In September 2019, the resettlement survey team for the due diligence conducted an on- site survey; and found that the temporarily occupied land has been reclaimed. The affected farmers were very satisfied with the young crop compensation and farmland reclamation compensation.

Figure 1: Current Condition After Land Reclamation 12. The total cost for the TLO was CNY1.388 million. The details are given in Table 4. During June 2015–October 2017, the PIU paid all compensation fee (including young crops compensation and land reclamation fees) to the project township governments as shown in Annex 1 (Receipt for the Payment of the TLO Compensation provided by the PIU). All project township governments paid the compensation to the AHs during July 2015–December 2017. The details are shown in Annex 2 (Receipts of the AHs). Table 4: Temporary Land Occupation Compensation of Affected Villages Temporary Young Crop Land Land Compensation Reclamation Town Village/Community Group Total Occupation (CNY10,000) (CNY10,000) (CNY10,000) (mu) Longshu, Longshu Longxiang, Zhaobi, 11 20.0 1.00 4.00 5.0 Town Xinle, Guzhai Jiufang, Xinjie 4 90.0 4.50 18.00 45.0 Town Zhongjiaying (three Xinjie community 2 105.2 5.26 21.04 3.8 sections) Fujiaying 2 100.0 5.00 20.00 25.0 Shuimo village, Shuimo Shuimo village, 6 240.0 12.00 48.00 60.0 Town Naheicu, Xinpeng village

Total 25 555.2 27.76 111.04 138.8

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5. Public Consultation 13. In the process of the TLO, the relevant units conducted consultations with the affected village cadres and representatives of the AHs several times; and considered the opinions and suggestions of the affected people. Specific ways to participate include (1) Public participation consultation meeting. Before the TLO, relevant meetings were held to introduce the proposed construction project and the scope of the TLO; and listen to the opinions of the representatives of the villages and related units. Suggestions were recorded, and attention would be given during implementation. (2) Consultation meeting on land compensation. Before the implementation of the TLO plan, the relevant policies, compensation standards, payment time, etc., were explained to the village leaders and village representatives. The opinions and suggestions of the villagers in each village were considered. It was agreed that the land reclamation work would be completed by the AHs themselves, and the land reclamation fees would be directly compensated to the AH according to the standard of CNY2,000/mu. (3) Temporary land occupation and compensation. The village leaders, representatives of the AHs, and the land resources bureau participated in the whole process of land measurement, determination of compensation standard, negotiation of the TLO agreement, and payment to ensure that the process is fair and transparent. 14. In September 2019, the due diligence survey team interviewed the Ludian County Natural Resources Bureau, the Ludian County Water Affairs Bureau, project township governments, village cadres, and some affected people; and conducted site visit to understand the living conditions of residents, and consulted their opinions. The interview records are presented in Annex 3. 6. Grievance Redress Mechanism 15. The PIU is the Yudong Reservoir Engineering Administration Bureau, and the Ludian County Water Affairs Bureau assisted in the construction of the project. The three township governments were responsible for the signing of the agreement on the temporary occupation of cultivated land and the payment of compensation. The GRM for the TLO worked well, and the township government solved most of the complaints. A small number of problems, such as correction of land occupation area, were reported to the PIU, which was resolved through consultation between the Yudong Reservoir Engineering Administration Bureau, the township government, and the involved farmers. 16. The GRM identified in this project is as follows: (1) Stage 1. If the affected people are dissatisfied with the compensation for the TLO and land reclamation work, they may file an oral or written complaint with the village committee or the town government; and if it is a verbal complaint, it must be solved and recorded by the village committee and the town government. The village committee and the town government shall reply within 1 week; (2) Stage 2. If the AP is dissatisfied with the results of the first stage, he/she may appeal to the Ludian County Water Affairs Bureau or the Yudong Reservoir Engineering Administration Bureau. The Water Authority or the Yudong Reservoir Engineering Administration Bureau shall resolve the dispute within 2 weeks; and

P 229 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

(3) Stage 3. If the AP is still dissatisfied with the decision of the construction management unit, he/she may apply to the Zhaotong Municipal People’s Government for administrative reconsideration; or file an administrative lawsuit with the People’s Court at any stage according to the applicable laws and regulations. The AP can appeal on any aspects of the TLO, including compensation rates and payment. 17. The above appeal channels had been disclosed in the project area timely through meetings and other means to make sure that the APs are fully aware of their right to appeal. 18. According to the survey of the resettlement survey team, the affected farmers were very clear about their rights and complaint channel. In the process of the TLO, a small number of complaints were received, such as the actual land area was expanded that requiring supplementary calculations, etc. The complaints have been properly resolved, and the affected people are satisfied with the compensation and land reclamation. 7. Conclusions 19. The Ludian County People’s Government, the Ludian County Natural Resources Bureau, the Ludian County Water Affairs Bureau, and related units had organized many public consultations before and during the TLO process; and the opinions of the affected villagers have been fully considered and incorporated. 20. The temporary land use in the linked project only involved minor and temporary impacts on the production and living of the affected villagers. 21. During project implementation, compensation for the TLO and payment have been implemented in accordance with the signed agreements. Affected land had been fully reclaimed and restored. In general, all compensation and land reclamation were based on full public consultation, without any legacy issues. 22. During the TLO process, the GRM channels worked well. Only a small number of complaints had been received and properly resolved timely, and the affected people were very supportive of the project construction and satisfied with the compensation standards and payment for land occupation and reclamation. There is no legacy problems related to land use and reclamation under the linked project.

P 230 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

ANNEXES

Annex 1: Receipts of the Project Owner Paid to the Three Project Townships for Land Occupation and Reclamation

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY50,000 to the Longshu Town for the temporary land occupation.

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY450,000 to the Longshu Town for the temporary land occupation.

P 231 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY38,000 to the Longshu Town for the temporary land occupation.

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY250,000 to the Longshu Town for the temporary land occupation.

P 232 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY50,000 to the Xinjie Town for the temporary land occupation.

The Zhaolu Irrigation District Administration Bureau of Zhaotong City paid CNY550,000 to the Xinjie Town for the temporary land occupation.

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Annex 2: Register of the Temporary Land Occupation and Land Reclamation Fees for Each Township

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Annex 3：Records of Interviews

Interview of Affected Villagers for Longshu River Rehabilitation Project Location: Zhaobi Village, Ludian County, Date: 20 October 2019 Zhaotong City Participants: Resettlement institute

Interviewee: Mr. Wang, farmer affected by the temporary land occupation Main issues and contents: 1. Mr. Wang Shengxiang, 43 years old, Han nationality, Zhaodian Village, Ludian County; there are six people in the family: his wife is 42 years old. He and his wife mainly live on odd jobs. He has two sons. One is 16 years old and another one is 13 years old. His sons are studying at school. His parents are 65 years old and 68 years old, respectively. His parents are working at home. Summary: His family has six persons, including 2 people over 60 years old, 4 labor force population, and 2 at school age. 2. Household income: migrant workers, income share (85%); overall income level (more than CNY35,000/year). 3. Household farmland resources: 9 mu in total. Only less than 2% impacted by the project, which almost has no impact on household income. 4. The compensation standard is reasonable and fair. The major usage of the compensation is to do business and save in bank. 5. Land reclamation measures: most of temporary occupied land compacted by mechanical machine during construction. The topsoil was stripped before construction and returned after construction. During recovery period, agronomic measures were implemented; and the effect was obvious. 6. The project will improve the flood control standard on both sides of the river, which will protect the cultivated land. The interviewee is supportive to the project. 7. Remaining issues: none.

P 235 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Interview of Affected Villagers for Longshu River Rehabilitation Project

Date: 29 October 2019

Participants: Resettlement institute

Interviewee: Mr. Ma, farmer affected by the temporary land occupation Main issue and contents: 1. Mr. Ma, 48 years old, Han nationality; there are three persons in the family; divorced; he has two daughters. One is 17 years old and another one is 20 years old. Summary: three persons in the family; no one is older than 60 years old; three labor force; no one is at school age. 2. Household income is mainly from working out of the town (80%); overall income level (more than CNY120,000/year). 3. Household farmland resources: 8 mu in total. Only less than 2% impacted by the project, which almost has no impact on household income. 4. The compensation standard is reasonable and fair. The major usage of the compensation is to do business and save in bank. 5. It is believed the project will benefit the residents. The interviewee is supportive to the project. 6. Remaining issues: none.

P 236 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Interview of Affected Villagers for Longshu River Rehabilitation Project

Date: 29 October 2019

Participants: Resettlement institute

Interviewee: Mr. Feng, farmer affected by the temporary land occupation Main issues and contents: 1. Mr. Feng, 62 years old, Han nationality; villager of Zhongjiaying village, retired; there are six persons in the family, including two daughters who are 37 years old and 40 years old, respectively. His daughters are married and live in other villages. 2. Household income is mainly from odd jobs (87%). He is good at cooking and plans to open a farmhouse restaurant. He is a capable person. Overall income level: more than CNY60,000/year. 3. The compensation standard is reasonable and fair. The major usage of the compensation is to do business and save in bank. 4. It is believed the project will benefit the residents. The interviewee is supportive to the project. As a village cadre, he actively provided his land as construction access road, and temporary construction site. 5. Remaining issues: none.

P 237 Yunnan Sayu River Basin Rural Water Pollution Management and Eco-Compensation Demonstration Project Resettlement Plan

Interview of Affected Villagers for Longshu River Rehabilitation Project

Date: 29 October 2019

Participants: Resettlement institute

Interviewee: Ms. Su, farmer affected by temporary land occupation Main issues and contents: 1. Ms. Su, 37 years old, Han nationality, Shuimo village of Ludian County. There are six persons in the family. Her daughter is 17 years, studying at high school. Her son is 15 years old, studying at middle school. Her parents are over 60 years old, working at home. Summary: there are six persons in the family, including two persons over 60 years old. There are 4 labor force and 2 at school age. 2. Household income is mainly from working out of the town and retail (87%). Income from agriculture is small. Overall income level: CNY15,000/year. 3. Household farmland resources: 12 mu in total. The temporary land occupation does not have impact on household income. 4. The compensation standard is reasonable and fair. The major usage of the compensation is to do business and save in bank. 5. It is believed the project will benefit the residents. The interviewee is supportive to the project. 6. Remaining issues: none.

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