Resettlement Plan (Draft Final)

August 2020

People's Republic of China: Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project

Prepared by Pingjiang County Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 13 July 2020)

Currency unit – yuan (CNY) CNY1.00 = $ 0.1430 CNY1.00 = € 0.1264

$1.00 = € 0.8834 €1.00 = $ 1.1430

ABBREVIATIONS

ADB Asian Development Bank AAOV average annual output value AP affected persons AHHs affected households DDR Due Diligence Report DI Design Institute DRC Development and Reform Commission DMS Detailed Measurement Survey FSRs Feasibility Study Reports GRM Grievance Redress Mechanism HHPDI Hunan Hydro and Power Design Institute HHs households HD house demolition LA Land Acquisition LAHDC Land Acquisition and Housing Demolition Center of Pingjiang County LLF land-loss farmer M&E Monitoring and Evaluation BNR Natural Resource Bureau of Pingjiang County PLG Project Leading Group PMO Project Management Office PRC People’s Republic of China PCG Pingjiang County Government RP Resettlement Plan RIB Resettlement Information Booklet SPS Safegurad Policy Statement TrTA Transaction Technical Assistance TOR Terms of Reference

WEIGHTS AND MEASURES

km - kilometer km2 - square kilometer mu - 1/15 hectare m - meter m2 - square meter m3 - cubic meter

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this 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, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Table of Contents

Letter of Commitment i Executive Summary 3

ES1. Introduction 3 ES2. The Proposed Project 3 ES3. Resettlement Plan Preparation 3 ES4. Resettlement Impacts 3 ES5. Policies, Principles and Entitlements 4 ES6. Institutional Arrangements 4 ES7. Consultation and Disclosure 4 ES8. Estimation of Resettlement Cost 4 ES9. Grievance Redress Mechanism 5 ES10. Schedule and Monitoring 5

1. Project Profile 6 1.1. Introduction 6 1.2. Project Contents 6 1.3. Overview of the resettlement impact 6 1.4. Measures to reduce resettlement impacts 9

2. Project Impacts 11 2.1. Impact Survey Process 11 2.2. Results of impact survey 11 2.3. Analysis on Resettlement Impacts 22

3. Social-economic Survey 23 3.1. Overview of social-economic development in affected areas 23 3.2. Socio-economic situation of APs 29 3.3. Willingness of LA, HD and resettlement 33

4. Legal Framework and Policies 35 4.1. Main laws, regulations and policies of PRC 35 4.2. Resettlement Policy of the ADB 36 4.3. Summary of laws, regulations and policies Error! Bookmark not defined. 4.4. Cut-off date of eligibility 48 4.5. Compensation and subsidy standard 48 4.6. Entitlement matrix 58

5. Resettlement and Rehabilitation Plan 63 5.1. House demolition 63 5.2. AP livelihood recovery plan 63 5.3. Relocation and reconstruction planning of special facilities 72 5.4. Help and support measures for vulnerable groups 72 5.5. Measures for women development 73 5.6. Skill training 74

6. Instituations and Responsibilities 77 6.1. RP Implementation and Management Agencies and responsibilities 77 6.2. Resettlement planning and design agency and responsibilities 78 6.3. Resettlement M&E agency and responsibilities 78 6.4. Personnel and facilities of resettlement agencies 79 6.5. Measures to strengthen the capacity of agencies 81

7. Public Participation and Consultation 83 7.1 Public participation and consultation during RP preparation 83 7.2 Public participation and consultation plan during RP implementation 87

7.3 Women participation 88 7.4 Information disclosure 89

8. Grievance Redress Mechanism 90

9. Resettlement M&E 92 9.1. Internal monitoring 92 9.2. External monitoring 93

10. Resettlement Budget, Financing and Disbursement 96 10.1. Resettlement budget 96 10.2. Financing and use of resettlement funds 97

11. Resettlement Schedule 99

Appendix 1: Resettlement Information Booklet 102

Appendix 2: Due Diligence Report on LURT 107 A. Project profile 107 B. Social Economic Situation of the LURT area 110 C. Applicable Policy 110 D. LURT Survey 115 E. GRM 124 F. Conclusions and Corrective Action Plan 124

Appendix 3: LURT Framework 129

Appendix 4: Land Acquisition Due Diligence 144 1. Purpose of due diligence 144 2. Method 145 3. Land acquisition procedures 147 4. Resettlement Policies and Measures for APs 148 5. Information disclosure, participation and grievance redress mechanism 150 6. Follow-up investigation and interview 152 7. Conlusions and Corrective Action Plan 154

Appendix 5: Resettlement Due Diligence on the Existing Facilities 159 1. Purpose 159 2. Methods 159 3. DDR for Sewage Treatment Plants and Landfill Plants 159 4. Yueyang Municipal Hazardous Waste Disposal LTD 184 5. Resettlement Due Diligence for Huangjindong Reservoir 185 6. Due Diligence of Land for Dajiangdong Reservoir 186

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Executive Summary ES1. Introduction 1. Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project (hereinafter referred to as the “Project”) is located in Pingjiang County, Hunan Province, with a total investment of CNY 2.3616 billion (equivalent to € 298.42 million). The Government has requested a loan of €132.51 million (equivalent to $150 million) from ADB’s ordinary capital resources and a loan of €60 million from KfW to help finance the project. ES2. The Proposed Project 2. The Project includes five major outputs, including: (i) Output 1: Water-related disaster risk management strengthened; (ii) Output 2: Accessibility to safe drinking water and sanitation services enhanced; (iii) Output 3: Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated; and (iv) Output 4: Green procurement practices piloted and environmental education mainstreamed. 3. Under Output 1, it includes (i) Subproject 1: Flood prevention and risk management in Miluo River; (ii) Subproject 2: Huangjin River National Wetland Park restoration and protection; and (iii) Subproject 3: Integrated smart disaster risk management system. Under Output 2, it includes (i) Subproject 4: Integrated water supply in urban and rural Pingjiang; (ii) Subproject 5: Separating rainwater from sewers in urban and rural Pingjiang; and (iii) Subproject 6: Rural domestic wastewater treatment and sanitary conditions improvement. Under Output 3, it includes (i) Subproject 7: Sustainable livestock waste management; and (ii) Subproject 8: Promotion of eco-farming technology and practices. Under Output 4, it includes (i) serves as Subproject 9: Green procurement and environmental education; and (ii) Subproject 10: Institutional and project management capacity building. ES3. Resettlement Plan Preparation 4. The resettlement plan (RP) is prepared based on the latest Feasibility Study Reports (FSRs), and will be updated after the detailed design is completed. The RP addresses impacts of permanent land acquisition and temporary land occupation. In addition, appendices include (i) due diligence reports (DDR) for completed land acquisition and existing facilities; and (ii) DDR reports for existing land leases and a framework for future land leases. The updated RP will be submitted to ADB for review and approval before the project implementation. ES4. Land Use and Impacts 5. Land acquisition and resettlement impacts. The Project will permanently occupy 698.09 mu land, including use of 527.85 mu state-owned construction and unused land, with no affected persons (APs); and 170.24 mu collective land which will be acquired permanently. The land acquisition will affect 64 households with 269 persons, including 129 females, in 14 townships with 33 villages. Among them, 20 households with 83 persons will be significantly affected. There are no ethnic minorities among APs. 6. A total of 1,254.59 mu land will be used temporarily during the project implementation, including 1,219.4 mu collective land which will temporarily affect 204 households with 855 persons (411 female) in 39 villages of 8 townships; and 35.19 mu of state-owned roads will be temporarily occupied.

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7. 628.53 m2 of rural abandoned houses will be demolished, involving 1 village in 1 township, affecting 3 households with 16 persons, including 6 females. The APs have their second house and only cash compensation is needed. 8. Land use-right transfer: Under the project, subproject 8 involves 8,641 mu land of which use-right has been transferred already; and 15,497 mu land of which the land use-right will be transferred. Due diligence review has been conducted for the transferred part of land use; and a land use-right transfer framework (LURT) has been prepared for the land use right to be transferred. 9. Acquired land in the past: 141.45 mu rural collective land has been acquired before the project preparation. A resettlement due diligence report (DDR) has been prepared for it. 10. Land use by existing Facilities: 24 sewage stations, Dajiangdong Reservoir and Huangjindong Reservoir have been identified as the existing facilities of the project; and related resettlement DDRs have been prepared. ES5. LAR Policies, Principles and Entitlements 11. The RP is prepared in accordance with the laws, policies and regulations of the PRC and ADB’s Safeguards Policy Statement (SPS, 2009). All compensation price for LAR follows the principle of replacement principle. Besides the cash compensation, additional supporting and assistance measures have been developed and will be provided to APs. ES6. Institutional Arrangements 12. The project management office (PMO) (hereinafter referred to as the “Pingjiang PMO”) is the implementing agency of the Project, representing the Pingjiang County Government (PCG). They will facilitate and work closely with the concerned bureaus (e.g. Natural Resource Bureau, Labor and Social Security Office) and affected villages. Land Acquistion and Housing Demolition Management Office of Pingjiang County (LAHDC) is the overall LA and HD implementing agency in Pingjiang County. Training to relevant staff of the implementing agency have been provided by the TRTA team; and further training will be provided during the project implementation by the project implementation consultants (PICs). ES7. Consultation and Disclosure 13. Consultations have been carried out since September 2019; and the comments and suggestions on compensation payment, issues on minimizing resettlement impacts, provision of proper compensation, support to increase income, and assistance to vulnerable households that were raised or discussed have been incorporated. Consultation is an iterative process and will continue during RP updating and implementation. Participation is also of equal importance and the strategy to encourage participation is included in the RP. Copies of resettlement information booklets, which contain key information, will be provided to the APs. ES8. Estimation of Resettlement Cost 14. The resettlement cost is estimated at CNY 57.1246 million, which will be financed by the PCG.

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15. The Pingjiang PMO will disburse directly to the functional departments concerned through a special account according to the compensation rates, and then the compensation will be distributed to the affected villages and households. ES9. Grievance Redress Mechanism 16. The grievance redreass mechanism (GRM) has been set-up, with clear roles and responsibilities, and time frame to address any complaints. The complaints or requests can be raised first with the township government and can be elevated to Pingjiang PMO, Pingjiang County Arbitration Commission, and up to the civil court. ES10. Schedule and Monitoring 17. The updating and implementation of the RP will start in 2021 and is expected to be completed by 2026. PMO will conduct internal monitoring and submit progress reports to ADB semi-annually. Besides, PMO will also recruit an external monitoring firm who will carry out its own verification and monitoring on a semi-annual basis for the implementation of RP, LURT and DDR corrective actions. The external monitoring agency (EMA) will submit the semi-annual monitoring reports to ADB and Pingjiang PMO.

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1. Project Profile 1.1. Introduction 1. The Project, co-financed by ADB and KfW, is located in Pingjiang County, Hunan Province. The Project aims to protect the ecological environment, natural resources and biodiversity of the Miluo River drainage basin, for beautiful natural landscape, good ecological environment and coordinated development of ecology, economy and society. The project construction duration is 6 years from 2021 to 2026. 2. The project total investment is estimated at CNY 2.3616 billion (equivalent to € 298.42 million), The Government has requested a loan of €132.51 million (equivalent to $150 million) from ADB’s ordinary capital resources and a loan of €60 million from KfW to help finance the project. 1.2. Project Contents 3. The Project includes five major outputs, including: (I) Water-related disaster risk management strengthened, (ii) accessibility to safe drinking water and sanitation services enhanced, (iii) circular agriculture linked sustainable livestock waste management and eco-farming demonstrated, and (iv) green procurement practices and environmental protection public awareness raising piloted. 4. The Project includes 10 subprojects. Under Output 1, it includes (i) Subproject 1: Flood prevention and risk management in Miluo River; (ii) Subproject 2: Huangjin River National Wetland Park restoration and protection; (iii) Subproject 3: Integrated smart disaster risk management system. Under Output 2, it includes (i) Subproject 4: Integrated water supply in urban and rural Pingjiang; (ii) Subproject 5: Separating rainwater from sewers in urban and rural Pingjiang; and (iii) Subproject 6: Rural domestic wastewater treatment and sanitary conditions improvement. Under Output 3, it includes (i) Subproject 7: Sustainable livestock waste management; and (ii) Subproject 8: Promotion of eco-farming technology and practices. Under Output 4, it includes (i) serves as Subproject 9: Green procurement and environmental education; and (ii) Subproject 10: Institutional and project management capacity building. 1.3. Overview of the land use and resettlement impact 5. The Project’s land use involves permanent rural collective land acquisition (LA), permanent state-owned land occupation, temporary land occupation, rural abandoned residential house demolition (HD), and land use-right transfer (LURT). 6. Permanent LA: in the Project, 170.24 mu of collective land will be permanently acquired, involving 33 villages in 14 townships, affecting 64 households with 269 persons, including 129 females. 7. Permanent state-owned land occupation: 527.85 mu of state-owned land will be permanently occupied freely, which is flood land and construction land. No AP and no compensation involved for it. 8. A a total of 1,254.59 mu land will be occupied temporarily during the project implementation, including 1,219.4 mu collective land which will temporarily affect 204 households with 855 persons in 39 villages of 8 townships; and 35.19 mu of state-owned roads will be temporarily occupied for

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free. 9. 628.53 m2 rural abandoned houses will be demolished, involving 1 village in 1 township, affecting 3 households with 16 persons, including 6 females. The APs have their second house and only cash compensation is needed. 10. Land use-right transfer: Subproject 8 involves 8,641 mu land of which use-right has been transferred; and 15,497 mu land of which the land use-right is yet to be transferred. Due diligence review has been conducted for the transferred part; and a LURT has been prepared for the land use right to be transferred. 11. Acquired land in the past: 141.45 mu rural collective land has been acquired before the project preparation, a resettlement due diligence report (DDR) has been prepared for it. 12. Existing facilities: the comprehensive water environment improvement component for trunk stream and tributaries of Miluo River involves some acquired land. The Huangjin River National Wetland Park restoration and protection involves the Huangjindong Reservoir. The integrated water supply in urban and rural Pingjiang involves the Dajiangdong Reservoir. The rural domestic sewage treatment component involves hazardous waste disposal facilities. The separating rainwater from sewers in urban and rural Pingjiang involves 24 sewage treatment stations. The green procurement practices and environmental protection public awareness raising piloting involves waste treatment plant. The due diligence has been conducted for the land used by these existing facilities. The corrective actions agreed in DDR will be subject to the external resettlement monitoring and reporting. The EMA will submit monitoring reports to ADB and Pingjiang PMO semi-annually, covering the implementation of RP, LURT and the correcitive actions agreed in DDRs.

13. Table 1.3-1 presents identified land use scope and the relevant document prepared.

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Table 1.3-1 Land Use Scope by Subprojects

Item Rural

collective LA (mu)

Rural house

demolition (m2)

Self-owned farm

State-owned

flood plain occupation

State-owned construction

land occupation

Temporary state-owned road

occupation (mu)

Temporary rural

collective land

occupation (mu)

Land use-right transfer (transferred,

mu)

Land use-right

transfer (to be

transferred, mu)

Rural facility land

No. of affected

townships

No. of affected villages

No. of AHHs

No. of APs

No. of affected females

No. of affected

minorities

Resettlement document

Output 1: Water-related disaster risk management strengthened

Subproject 1

69.98 386.4 141.45 0 2 8 30 123 60 0 RP and

Appendix 4

Subproject 2

18.81 628.53 0 1 1 4 21 9 0 RP and

appendix 5

Subproject 3

Output 2 accessibility to safe drinking water and sanitation services enhanced Subproject

4 54.6 1219.44 0 8 39 214 901 434 0 RP

Subproject 5

35.19 0 RP

Subproject 6

26.85 0 11 20 20 79 37 0 RP

Output 3: Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated

Subproject 7

Within farmers’

own housing

site

Subproject 8

8641 15497 0 0 Appendix 2

and Appendix 3 (LURT)

Output 4: Green procurement practices and environmental protection public awareness raising piloted

Subproject 9

Subproject

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Total 170.24 628.53 0 386.4 141.45 35.19 1219.44 8641 15497 0 14 65 268 1124 540 0

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1.4. Measures to reduce land acquisition and resettlement impacts 14. The Project originally had significant LAR impacts. Many measures have been adopted in the project preparation stage. As a result, accumulated more than 600 mu cultivated land acquisition and 9,000 m2 houses to be demolished are reduced after a series of optimizing activities. The specific optimization and adjustment measures are listed in Table 1.4-1.

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Table 1.4-1: Measures to Reduce LAR Impacts

No. Subproject Content Preliminary project content Current project content Optimization results

1

Subproject 2: Huangjin River National Wetland Park restoration and protection

Wetland monitoring work

Build 2 meteorological stations (40 m2) in Mao Gong Shi and Zhoushang Village; build 2 hydrologic and water quality monitoring stations; build 1,830 m2 biodiversity monitoring and protection center and supporting facility in Shazhouzui; and build 200 m2 monitoring and control station in the dam area.

1. Wetland biodiversity monitoring, purchasing compass positioning tracker for animals, camera, PC, etc. 2. Wetland monitoring and management system.

Reduces 28.29 mu of collective land acquisition, including 17.9 mu cultivated land and 10.39 mu forest land.

2

Subproject 4: Integrated water supply in urban and rural Pingjiang

Water supply and purification work in the north

Located in Chongyi Village, Nanjiang Town.

It is relocated in Changjiang Village and Caibo Village, Nanjiang Town.

It avoids the basic farmland and only requires forest land. 30 mu cultivated land acquisition is reduced.

3 Water surface and flood land

Embankment works

Mainly refers to engineering measures. Combines engineering measures with ecological restoration.

It reduces over 600 mu of collective land acquisition, including over 200 mu cultivated land and 2,000 m2 houses.

4. All subprojects Civil works Civil works involving a large area of collective land acquisition

In order to minimize the impact of LA, the PMO organized design institute, resettlement agency, surveying and mapping company, BNR, Planning Bureau, Water Resource Bureau, Agriculture Bureau, Forestry Bureau, Environmental Protection Bureau, Housing Construction Bureau and Water Company, to survey all project sites again, carefully optimize the engineering site

It reduces 600 mu of collective land acquisition, and 2,000 m2 of houses.

Total

It involved 1,500 mu permanent acquisition of collective land, including 670 mu cultivated land and 10,000 m2 houses, affecting 470 households with 1,460 persons, including 700 females. The resettlement investment was CNY 220 million.

It involves 170.24 mu permanently land acquisition, including 68.32 mu cultivated land and 628.53 m2 houses demolition, affecting 64 households with 269 persons, including 129 females. The resettlement investment is about CNY 57 million.

It reduces more than 1,000 mu collective land acquisition, and 9,000 m2 house demolition; reduces more than 200 households with 600 persons affected, reduces resettlement cost about CNY 160 million.

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2. Project LAR Impacts 2.1. Impact Survey Process 15. The information in this RP were derived from the FSRs, statistical yearbooks, consultations and fieldwork. 16. In August 2019, Hunan Hydro&Power Design Institute (hereinafter referred to as “RP-DI”) compiled the Detailed Rules on Impact Survey of Land Acquisition. In September 2019, RP-DI carried out technical training for the responsible agencies and their staff. In October 2019, PMO took the lead and organized all relevant agencies to carry out preliminary impact survey on LA and HD, jointly with DI, RP-DI, local government and LHAMO. From March to April 2020, according to the scope adjustment, PMO took the lead and reorganized the impact survey. From May to June 2020, after further optimizing the design, adjust the scope of project area and reduce the impacts. 17. During detailed design, a census and detailed measurement survey and further consultations with various stakeholders (households, organizations, government and other stakeholders) will be carried out. It will also continue to adopt the principles of avoiding, if not minimizing, resettlement impacts. It is only then that the final No. of APs and extent of resettlement impacts on their land, properties, and livelihood will be updated. The RP will be updated and will be submitted to ADB for review and approval prior to resettlement implementation. 2.2. Results of impact survey

2.2.1. Scope of project impacts

18. As shown in Table 1.3-1, the project involves rural collective land acquisition in subproject 1 and subproject 2, subproject 4, subproject 6; involves rural house demolition in subproject 2; involves state-owned land permanent occupation at free in subproject 1 and subproject 5.

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Figure 2.2-1: Diagram of the Positions Affected by Subproject 1 (red part)

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Figure 2.2-2: Diagram of the Positions Affected by Subproject 2, Subproject 4 and Subproject 6

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2.2.2. Permanent rural collective land acquisition 19. 170.24 mu of collective land will be permanently expropriated, including 65.17 mu of paddy field, 3.16 mu of dry land, 18.88 mu of garden land, 69.92 mu of forest land, 0.42 mu of transportation land, 8.72 mu of land for water surface and water conservancy facilities, 3.34 mu of unutilized residential land, 0.04 mu of farming connection roads and 0.29 mu of grassland, involving 14 townships and 33 villages, affecting 64 households with 269 persons, including 129 females. 20. See Table 2.2-1 for survey results of permanent rural collective land acquisition; and see Table 2.2-2 for the income loss ratio analysis.

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Table 2.2- 1: Permanent Rural Collective Land Acqistion (mu)

Sub-project/Component

Township Village Total area

Rural Agricultural land Rural

Construction land

rural unutilized land

Cultivated land

Garden land

Forest land

Land for transport

Land for water surface

and water conservancy

facilities

Other land

housing site Grassland

Land for water surface

and water conservancy

facilities

River and flood risk management

Sanyang Township

Getengping Village 5.93 4.34 1.45 0.13

Sanyang Township

Shiyan Village 9.42 7.86 1.26 0.11 0.2 0

Chengguan Town

Huaqiao Community 0.77 0.33 0.1 0.04 0.31

Beiyuan Village 14.24 3.16 10.16 0.63 0.29

Fengshu Village 4.15 0.72 2.95 0.48

Sanyang Township

Nanyuan Village 35.14 28.71 6.43

Chengguan Town Sanyang Village 0.06 0.01 0.05

Tianyue Village 0.28 0.28

Huangjin River National Wetland

Park restoration and protection

Changshou Town Jintang Village 18.81 16.52 2.29

Integrated water supply in urban and

rural Pingjiang

Nanjiang Town Caibo Village 17.55 1.02 16.53

Changjiang Village 25.57 25.39 0.18

Dazhou Town Yaozhou Village 4.08 4.08

Banqiao Village 7.39 7.39

Rural domestic wastewater treatment

Hongqiao Town Zhengdong Village 1.26 1.26

Tianyue Village 0.87 0.87

Sandun Township Hupei Village 1.35 1.35

Longmen Town Longmen Village 1.2 1.2

Tulong Village 1.5 1.5

Changshou Town

Huayuan Village 1.26 1.26

Tingyou Area, Yongning Village 1.2 1.2

Yangsi Area, Yongning Village 1.38 1.38

Nanjiang Town

Changjiang Village 0.85 0.28 0.57

Jiangtian Village 1.47 1.47

Shijiang Village 1.5 1.5

Shiniuzhai Town Jiangshi Village 1.6 1.6

Anding Town Daqiao Village 1.25 1.22 0.03

Changtian Village 1.26 1.26

Wengjiang Town Hedong Village 1.67 1.04 0.54 0.09

Wushi Town Dongshan Village 0.85 0.85

Lishan Village 1.02 1.02

Wukou Town Sanlian Village 1.26 1.26

Xijiang Village 2.38 2.38

Meixian Town Tuanshan Village 0.86 0.86

Tuozhuang Village 0.87 0.87

Total 170.24 68.32 18.88 69.92 0.42 8.72 0.04 3.34 0.29 0.31

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2.2.3. Income Loss analysis caused by collective land acquisition

1) Analysis on agricultural income loss of households 21. By calculating the annual income loss of APs affected by the LA in the Project, the annual agricultural income loss per household of the APs in the Project is CNY 1,960.3. The highest annual agricultural income loss per household is in Shiyan Village of Sanyang Township, which is CNY 4,278.1, followed by Beiyuan Village of Chengguan Town, which is CNY 3,994.7; and the lowest annual agricultural income loss per household is in Sanyang Village of Chengguan Town, which is CNY 20.1. 22. Among the farmers affected by LA, there are 7 households whose annual agricultural income loss is lower than CNY 1,000, accounting for 13.2% of the total affected households (AHHs); there are 14 households whose annual agricultural income loss is between CNY 1,000 and CNY 2,000, accounting for 26.42% of the total AHHs. There are 29 households whose annual agricultural income loss is between CNY 2,000 to CNY 4,000, accounting for 54.72% of the total AHHs; and there are 3 households whose annual agricultural income loss is between CNY 4,000 and CNY 6,000, accounting for 5.66% of the total AHHs.

2) Analysis on per capita income loss of APs 23. Due to the different economic development level of the affected villages, the income structure of the AHHs is different, the proportion of income loss in the total income of AHHs is also different, and the degree of impact is different. 24. According to the investigation and calculation, due to the impact of the acquisition of cultivated farmland land, there are 20 households with 83 persons whose income loss exceeds 10%, which are distributed in Shiyan Village of Sanyang Township, Nanyuan Village, Getengping Village, Beiyuan Village of Chengguan Town, Fengshu Village and Zhengdong Village of Hongqiao Town. 25. Table 2.2-2 shows the calculation of income loss of people affected by acquisition of farmland cultivated land.

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Table 2.2-2: Income Loss ratio of People affected by LA

Town/ship Village

AHH/APs Income loss affected by LA

Households affected by LA

APs (person) Land loss per household (mu)

Income loss per household

(CNY)

Loss of per capita income

(CNY)

Per capita disposable

income in 2019 (CNY)

Loss rate of per capita income

No. of households with loss exceeding

10%

No. of people with loss

exceeding 10%

Sanyang TownshipShiyan Village 3 17 3.04 4278.11 754.96 9800 7.70% 1 5

Nanyuan Village 14 53 2.05 3044.70 804.26 9500 8.47% 10 42

Getengping Village 3 15 1.93 2897.25 586.64 9800 5.99% 1 5

Chengguan Town

Tianyue Village 1 2 0.28 414.00 207.00 11500 1.80%

Sanyang Village 1 3 0.01 20.25 6.75 12000 0.06%

Beiyuan Village 5 20 2.66 3994.65 998.66 9800 10.19% 5 20

Fengshu Village 2 9 1.83 2748.38 610.75 9700 6.30% 1 5

Huaqiao Community

1 4 0.33 488.25 122.06 11500 1.06%

Nanjiang Town

Caibo Village 3 17 0.34 510.00 90.00 7200 1.25%

Changjiang Village 1 3 0.28 420.00 140.00 7600 1.84%

Jiangtian Village 1 5 1.47 2205.00 441.00 6900 6.39%

Shijiang Village 2 9 0.75 1125.00 250.00 7200 3.47%

Hongqiao Town Zhengdong Village 1 2 1.26 1890.00 945.00 6200 15.24% 1 2

Tianyue Village 1 3 0.87 1305.00 435.00 6400 6.80%

Sandun Township Hupei Village 1 4 1.35 2025.00 506.25 6500 7.79%

Longmen Town Longmen Village 0 0 0 0 0 8800 0.00%

Tulong Village 1 5 1.50 2250.00 450.00 9000 5.00%

Changshou Town Yongning Village 1 4 1.38 2070.00 517.50 10000 5.18%

Huayuan Village 1 4 1.26 1890.00 472.50 8000 5.91%

Shiniuzhai Town Jiangshi Village 2 8 0.80 1200.00 300.00 6100 4.92%

Anding Town Changtian Village 0 0 0 0 0 8800 0.00%

Fujia Village 0 0 0 0 0 8800 0.00%

Wengjiang Town Hedong Village 1 5 1.58 2370.00 474.00 9500 4.99%

Wushi Town Dongshan Village 1 3 0.85 1275.00 425.00 10500 4.05%

Sushan Village 1 4 1.02 1530.00 382.50 9700 3.94%

Wukou Town Sanlian Village 1 3 1.26 1890.00 630.00 8000 7.88%

Donggang Village 2 8 1.19 1785.00 446.25 8300 5.38% 1 4

Meixian Town Tuanshan Village 1 4 0.86 1290.00 322.50 7800 4.13%

Zhezhuang Village 1 5 0.87 1305.00 261.00 7600 3.43%

12 29 53 219 1.65 1,960.3 474.81 10,400 4.53% 20 83

Note: The data of per capita disposable income come from statistical annual report and village report.

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2.2.4. Permanent state-owned land occupation 26. 527.85 mu of state-owned land will be permanently occupied, which is flood land and state-owned road, all caused by subproject 1. No AP is involved.

2.2.5. Temporary land occupation 27. The temporarily land occupation are by Subproject 4 and Subproject 5. A total of 1,254.44 mu land will be temporarily occupied. Sub-project 4 will totally occupy 1,219.4 mu land, including 489.23 mu paddy field, 203.26 mu dry land, 472.98 mu forest land and 53.96 mu unutilized land, affecting 204 households with 855 persons, including 411 females, in 39 villages of 8 town/ships. The temporary land occupation duration will be within 6 months. Table 2.2-3 shows the summary of temporary impacts of the Project.

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Table 2.2- 3: Summary of Temporary Impact of the Project Sub-

project Town Village Temporary land

use area (mu)

Cultivated land (mu) Forest land (mu)

Wasteland (mu) AHHs

No. of APs (person)

No. of affected females (person)Subtotal Paddy field Dry land

Sub-project 4

Wushi Town

Yuejin Village 28.50 19.00 14.25 4.75 9.50 6 23 11

Zoujia Village 31.50 21.00 15.75 5.25 10.50 6 26 12

Lishan Village 16.50 11.00 8.25 2.75 5.50 3 14 7

Limen Village 33.00 22.00 16.50 5.50 11.00 6 27 13

Sizhi Village 34.50 23.00 17.25 5.75 11.50 7 28 14

Tangsha Village 31.50 21.00 15.75 5.25 10.50 6 26 12

Wushi Village 48.00 32.00 24.00 8.00 16.00 9 40 19

Gonghe Village 31.50 21.00 15.75 5.25 10.50 6 26 12

Xiushui Village 34.50 23.00 17.25 5.75 11.50 7 28 14

Qingchong Village 52.50 35.00 26.25 8.75 17.50 10 43 21

Datan Village 42.00 28.00 21.00 7.00 14.00 8 35 17

Wukou Town

Wukou Village 54.00 36.00 27.00 9.00 18.00 11 44 21

Sifeng Village 46.50 31.00 23.25 7.75 15.50 9 38 18

Wuli Village 16.50 8.25 5.50 2.75 8.25 2 10 5

Yingjiang Village 48.00 24.00 16.00 8.00 24.00 7 30 14

Wengjiang Town

Panshi Village 31.50 15.75 10.50 5.25 15.75 5 19 9

Yangmei Village 28.50 14.25 9.50 4.75 14.25 4 18 8

Taxing Village 43.50 21.75 14.50 7.25 21.75 6 27 13

Jiulong Village 13.50 6.75 4.50 2.25 6.75 2 8 4

Yuping Township Zhangshi Village 43.50 21.75 14.50 7.25 21.75 6 27 13

Shili Village 28.50 14.25 9.50 4.75 14.25 4 18 8

Hanchang Town Chengtan Village 43.50 21.50 14.50 7.00 22.00 6 27 13

Sima Village 12.00 8.00 6.00 2.00 4.00 2 10 5

Shangtashi Town Dongyuan Village 31.50 15.75 10.50 5.25 15.75 5 19 9

Nanjiang Town

Fengxiang Village 16.50 8.25 5.50 2.75 8.25 2 10 5

Qingfeng Village 33.00 16.50 11.00 5.50 16.50 5 20 10

Ma’an Village 46.50 23.25 15.50 7.75 23.25 7 29 14

Hongmen Village 18.00 9.00 6.00 3.00 9.00 3 11 5

Nanjiang Village 13.50 6.75 4.50 2.25 6.75 2 8 4

Qiaodong Village 16.50 8.25 5.50 2.75 8.25 2 10 5

Jiangtian Village 33.00 16.50 11.00 5.50 16.50 5 20 10

Dawan Village 22.50 11.25 7.50 3.75 11.25 3 14 7

Meixian Town

Tian’e Shan Village 22.50 11.25 7.50 3.75 11.25 3 14 7

Jianshan Village 13.50 6.75 4.50 2.25 6.75 2 8 4

Xiabai Village 18.00 9.00 6.00 3.00 9.00 3 11 5

Tuozhuang Village 33.00 16.75 11.00 5.75 16.25 5 21 10

Zheliao Village 35.62 19.50 13.00 6.50 16.13 6 24 12

Jiangyuan Village 38.07 18.75 12.50 6.25 19.32 6 23 11

Zhongjia Village 34.26 15.75 10.50 5.25 18.51 5 19 9

Total 8 39 1,219.40 692.47 489.23 203.24 472.98 53.96 204 855 411

20

2.2.6. Rural Abandoned Residential Houses Demolition 28. The Sub-project 2 involves rural abandoned residential house demolition. A total of 628.53 m2 houses need to be demolished, which are rural abandoned residential houses with brick-wood structure. The houses demolished totally affect 3 households with 16 persons, including 6 females. Table 2.2-4 presents the details.

Table 2.2-4: Houses demolition

Sub-project Town/ship Village HHs

Affected Persons (person) area of house demolition (m2)

Subtotal Rural APs

Urban APs

Female APs

Subtotal Brick-

concrete Brick-wood

Sub-project 2

Changshou Town

Jintang Village

3 16 16 0 6 628.53 628.53 0 628.53

Total 1 1 3 16 16 0 6 628.53 628.53 0 628.53

29. All three houses are abandoned old houses, as shown in the figure below.

Figure 2.2-3: Current situation of the abandoned residential house

2.2.7. Special facilities affected

30. The facilities affected include simple-built highway of 4.65 km; 2 bridges, 0.35 m channel, 0.08 km culvert pipe, 32kW pumping station; 3.85 km 10 kV HV line, 7.1km 220 V LV line, 2 transformers; 3.31km communication optical cable, 5 solar poles.

2.2.8. Affected Persons 31. The project will permanently affect 64 households with 269 persons, including 129 females, among which, 20 HHs with 83 persons will be significantly affected. All of them will be affected by LA. The Project will temporarily affect 204 households with 855 persons, including 411 females. Table 2.2-5 shows the total population affected.

21

Table 2.2-5: Affected Persons (Unit: HHs/person)

Sub-project

Permanent impact Temporary impact Total Caused by LA Caused by HD Both by LA and HD Total APs

HHs Popula

tion Female HHs

Population

Female HHs Populat

ion Femal

e HHs

Population

Female

HHs Popula

tion Femal

e HHs

Population

Female

Output 1 Subproject 1 30 123 60 30 123 60 30 123 60

Subproject 2 4 21 9 3 16 6 3 16 6 4 21 9 4 21 9

Output 2 Subproject 4 10 46 23 10 46 23 204 855 411 214 901 434

Subproject 6 20 79 37 20 79 37 20 79 37

Total 64 269 129 3 16 6 64 269 129 204 855 411 268 1124 540

22

2.2.9. Affected Vulnerable Groups 32. According to the survey, 1 household with 5 persons belongs to vulnerable group within the project area. They are living in Lishuping Group of Jintang Village and became poor due to illness. Their house will be demolished, but the new house of them has already been built up.

2.2.10. Affected ethnic minority people 33. Upon survey, no ethnic minority people will be affected by the LA and HD of the Project.

2.2.11. Affected Female population 34. The Project will permanently affect 129 females and temporarily affect 411 females, viz. 540 females in total, taking up 48% of the total affected population. 2.3. Analysis on LAR Impacts 35. The project will permanently affect 64 households with 269 persons, including 129 females, among which, the significantly affected person is 20 HHs with 83 persons; 36. The state-owned land permanently occupied is river water surface and flood land, and no compensation is needed. The collective land acquisition is 170.24 mu, which is distributed in 33 villages of 14 town/ships in Pingjiang County. 37. A total of 3 houses will be demolished in the Project, affecting 3 households with 16 persons. Because the owners of these 3 houses have their second houses in the village, they choose money compensation. 38. There is no industrial and mining enterprise or major special facilities within the scope of LA and HD impacts.

23

3. Social-economic Survey 3.1. Overview of social-economic development in affected areas

3.1.1. Overview of social-economic development in Pingjiang County, Yueyang City

Yueyang City 39. The Project will be mainly implemented in the drainage basin of trunk stream of Miluo River in Pingjiang County, Yueyang City, Hunan Province. Located on the shore of Dongting Lake, beside the Yangtze River and serving as the confluence of rivers and lakes, Yueyang City is not only the vital communication line connecting the east, west, south and north of China and the first batch of important open areas along the rivers approved by the State Council, but also refers to an important regional hub city in the middle reaches of Yangtze River and the primary gateway city of Hunan Province. It is both the unique international trading port city in Hunan Province and a famous port city of China. 40. Yueyang City had permanent population of 5.7713 million in 2019, of which permanent urban population was 3.4166 million, taking up 59.2% of the total population; permanent rural population was 2.3547 million, taking up 40.8% of the total. The per-capita GDP was CNY 65,357, increased by 7.7% compared with last year. The annual per-capita disposable income of urban residents was CNY 35,116 in 2019, increased by 8.3% compared with the last year. The per-capita disposable income of rural residents was CNY 16,878, increased by 8.8% compared with the last year. Pingjiang County 41. Pingjiang County is located in the northeast of Hunan Province, at the junction of Hunan Province, Hubei Province and Jiangxi Province, and at the upper and middle reaches of Miluo River. It borders on Tongcheng County of Hubei Province and Yueyang County of Hunan Province in the north, Xiushui County and Tonggu County of Jiangxi Province in the east, Miluo City in the west, and Changsha City and Liuyang City in the south. It covers a total area of 4,125 km2 and administers 24 town/ships and 542 villages (residents’ committees), referring to a mountainous area. 42. In 2019, the regional GDP of Pingjiang County reached CNY 32.249 billion, showing a year-on-year growth of 8.1%. The added value of the primary industry, the secondary industry and tertiary industry was CNY 4,962 million, CNY 12,679 million and CNY 14,608 million with the year-on-year growth of 3.2%, 8.8% and 9.1% respectively. In terms of permanent population, the per-capita GDP was CNY 33,797, showing an increase of 17.4%. The three-industry structure of the whole county was adjusted from 14.6:42.2:43.2 in the same period of last year to 15.4:39.3:45.3. 43. In 2019, the total permanent population of Pingjiang County was 954,200 with 268,800 households in total, including 499,100 males and 455,100 females; the urban population was 432,770 and rural population was 516,500 with urbanization rate of 45.87%. Total registered population of the county was 1.1213 million. The people's living standard witnessed continuous improvement. The per capita disposable income of urban residents and rural residents was CNY 25,516 and CNY 10,480 with the year-on-year growth of 8.1% and 9.4% respectively.

3.1.2. Overview of social-economic development in affected town/ships

24

44. Project Permanent LA and HD will totally involve 14 town/ships, including Chengguan Town, Sanyang Township, Changshou Town, Anding Town, Hongqiao Town, Meixian Town, Nanjiang Town, Dazhou Township, Wushi Town, Wukou Town, Sandun Township, Wengjiang Town, Longmen Town and Shiniuzhai Town. Their social-economic status is summarized below: Chengguan Town: 45. Located in the middle of Pingjiang County and middle reaches of Baishui River, Chengguan Town serves as the political, economic and cultural center of Pingjiang County, covers a total area of 750,000 km2 with a total population of 165,000, administers 17 communities and 14 villages, and refers to a national key construction town and top 100 towns of Hunan Province. Chengguan Town has a total cultivated land area of 14,217 mu, including 1,753 mu paddy field and 12,464 mu dry land. In 2019, the per-capita disposable income of rural residents in Chengguan Town was CNY 13,000. Sanyang Township: 46. Sanyang Township is located in the middle of Pingjiang County, Hunan Province, with a total area of 214 km2 and a cultivated land area of 43,415 mu. It governs 22 administrative villages and 633 village groups, with a total population of 64,713, including 53,817 agricultural population, and a total cultivated land area of 46,191 mu, including 34,504 mu paddy field and 11,687 mu dry land. Its planting industry is mainly rice, vegetables, tea, flowers and trees, and fruits. Animal husbandry mainly involves pig, cow, black goat and high-quality fish. It has 12,745 ha forest land, including 300 ha immature forest, 485 ha sparse forest, 225 ha shrubbery, 100 ha barren mountain, and its forest coverage rate is 57.3%. In 2019, the per-capita disposable income of rural residents in Sanyang Township was CNY 11,000. Changshou Town: 47. Changshou Town is located in the east of Pingjiang County and on the east bank of Miluo River, with a total area of 494.45 km2. It governs 79 organic villages and 3 community villagers' committees, with a total population of 79,400. It is a new industrial town/ship mainly for firecrackers processing, bamboo processing, vegetable processing, soya bean products processing and hygienic materials processing. It has a total cultivated land area of 47,190 mu, including 41,105 mu paddy field. Its planting industry is mainly rice, vegetables, fruits, medicinal materials, flowers and seedlings. In 2019, the per-capita disposable income of rural residents in Changshou Town was CNY 10,562. Anding Town: 48. Anding Town is located in the south of Pingjiang County in the northeast of Hunan Province, with a total area of 173 km2 and a cultivated land area of 52,009 mu. It governs 33 villages and 3 communities, with a total population of 73,800. It is dominated by low mountains and hills, with fertile soil, which is suitable for the growth of rice, organic tea and oil-tea camellia. The total annual production area of rice is more than 100,000 mu, and the annual output of grain is more than 50,000 t. In 2019, the per-capita disposable income of rural residents in Anding Town was CNY 11,000. Hongqiao Town: 49. Hongqiao Town has a total population of 35,000, with 34 administrative villages, 1

25

neighborhood committee and 429 village groups. It has a total of about 180,000 mu mountain forest. The natural vegetation is mainly mixed forest of trees and shrubs, with some artificial forest land and fruit forests. In 2019, the per-capita disposable income of rural residents in Hongqiao Town was CNY 4,949. Meixian Town: 50. Meixian Town is located in the northeast of Pingjiang County. It governs 36 villages, 2 villagers' committees and 603 village groups. Its total population is 60,489, with a total area of 205.3 km2, cultivated land area of 38,664 mu, and total mountain forest area of 199,866 mu. Its industrial products are mainly feldspar powder, aluminum silver powder, quartz powder, lime and firecrackers, and the agricultural and sideline products are mainly black goat, pig, native chicken, tea, orange and chestnut. In 2019, the per-capita disposable income of rural residents in Meixian Town was CNY 5,900. Nanjiang Town: 51. Nanjiang Town is located in the north of Pingjiang County, with a total area of 196 km2 and a total population of 71,800. It governs 5 villagers' committees, 44 administrative villages and 714 village groups. In 2019, the per-capita disposable income of rural residents in Nanjiang Town was CNY 5,980. Dazhou Township: 52. Dazhou Township is located in the northwest of Pingjiang County, with a total area of 90.5 km2 and a total population of 15,968. It governs 16 administrative villages and 156 village groups, with a total cultivated land area of 7,734 mu, including 5,264 mu paddy field. Its planting industry is mainly rice, vegetables and fruits. The animal husbandry is mainly pig, black goat and native chicken. The industrial economy is dominated by the production of lime, cement and gold. In 2019, the per-capita disposable income of rural residents in Dazhou Township was CNY 4,800. Wushi Town: 53. Wushi Town is located in the downstream of Miluo River, with a total area of 225 km2. It governs 46 villages and 1 villagers' committee, with a total population of 81,000, and a total cultivated land area of 62,000 mu. It has formed an agricultural industry dominated by grain, pig, cotton, green food, bamboo, high-quality fruits, flowers and seedlings, improved tea, watermelon, sweet potato, etc. In 2019, the per-capita disposable income of rural residents in Wushi Town was CNY 10,539. Wukou Town: 54. Wukou Town has a total area of 216 km2, and governs 34 villages and 1 villagers' committee, with a total population of 41,800, and a total cultivated land area of 40,000 mu. It is known as "Provincial Famous Dragon Dance Township", "Provincial Mass Culture and Art Township" and the famous "Ginger Land". In 2019, the per-capita disposable income of rural residents in Wukou Town was CNY 8,000. Sandun Township: 55. Sandun Township is located in the central mountainous area of Pingjiang County, with a

26

total area of 117 km2. It governs 27 administrative villages and 371 village groups, with a total population of 31,800. It has a total cultivated land area of 17,500 mu, including 15,200 mu paddy field and 2,300 mu dry land, and a mountain forest area of 138,000 mu, including 89,000 mu oil-tea camellia forest, 30,000 mu ecological public-welfare forest, 9,000 mu artificial forest of Yueyang Forest&Paper, 5,700 mu conversion of farmland to forestry and 1600 mu artificial Alnus trabeculosa forest. In 2019, the per-capita disposable income of rural residents in Sandun Township was CNY 5,700. Longmen Town: 56. Longmen Town is located at the source of Miluo River, with a total area of 205 km2. It governs 36 administrative villages, 1 villagers' committee and 437 village groups, with a total population of 39,013. It has a total cultivated land area of 28,628 mu, mountain forest area of 128,030 mu, and living timber reserves of 96,965 m3. It is an important timber output town/ship. Its minerals are mainly gold, and it is also the main production area of Atractylodes macrocephala Koidz. and Lilium brownii. In 2019, the per-capita disposable income of rural residents in Longmen Town was CNY 9,033. Shiniuzhai Town: 57. Shiniuzhai Town is located in the northeast corner of Pingjiang County, with a total area of 108 km2. It governs 21 villages and 272 village groups, with a total population of 21,000. In 2019, the per-capita disposable income of rural residents in Shiniuzhai Town was CNY 4,900. Wengjiang Town: 58. Wengjiang Town is located in the southwest of Pingjiang County, with a total area of 248.8 km2. It governs 47 villages, 1 villagers' committee, and 557 village groups. It has a total No. of households of 13,827, with a total population of 51,252. Wengjiang Town has a total cultivated land area of 30,767 mu, including 24,834 mu paddy field and 5,933 mu dry land. Its cash crops are mainly kumquat, pepper, ginger and tea. It is a forestry town, with a total mountain forest area of 264,000 mu, accounting for 69.1% of its total area. It has very rich forest resources and beautiful natural environment. In 2019, the per-capita disposable income of rural residents in Wengjiang Town was CNY 9,500. The socio-economic situation of the affected town/ships is referred to Table 3.1-1. 59. It can be seen from the table that, in the affected town/ships, the per capita income level of farmers in Chengguan Town, Sanyang Township, Anding Town, Changshou Town and Wushi Town is relatively high, which exceeds the per capita disposable income level of farmers in Pingjiang County in 2019 (CNY 10,480), among which Chengguan Town and Sanyang Township are the two town/ships most affected by LA and HD of the Project.

3.1.3. Basic information of affected villages and groups 60. There are 33 villages affected by permanent LA. The population, land area, LA area, LA impact rate and other basic information of each village are referred to Table 3.1-2.

27

Table 3.1-1: Socio-Economic Situation of Affected Town/ships

Town/ship

Population (person)

Female (person

)

Rural economic income (CNY

10,000)

Including Migrant labor

income

Per capita disposable income of farmers in

2019 (CNY)

Income from agriculture, forestry, animal husbandry, sideline production and fishery (CNY 10,000)

Industry

Construction industr

y

Transportation industr

y

Catering

industry

Service industr

y Others

No. of labor

service export

(person)

Total income (CNY

10,000) HHs Popula

tion Labor Subtotal

Planting

industry

Fruit industr

y

Animal husban

dry

Aquaculture

industry

Household

sideline producti

on

Chengguan Town

37,059 90,755 41,519 38,117 131,786.5 24,486.5 10,200 538 12,880 660 208.5 22,000 8,600 4,500 28,200 35,500 8,500 16,607 66,500 13,000

Sanyang Township

21,740 69,206 39,045 29,067 115,980.3 23,980.3 12,000 680 10,100 950 250.3 18,000 13,000 3,500 21,000 29,000 7,500 12,356 51,300 11,000

Changshou Town

18,921 80,700 39,746 33,894 74,825 41,916 19,700 1,320 20,120 350 426 4,650 9,860 4,280 5,800 3,698 4,621 16,580 63,000 10,562

Anding Town

18,817 76,900 45,932 32,298 90,308.1 38,917.3 18,600 1,035 18,826 200 256.3 2,540.3 6,600.5 35,000 2,500 1,250 3,500 17,124 42,000 11,000

Hongqiao Town

9,033 40,924 20,462 17,188 14,142.6 11,007.7 9,192.3 85 1,257.3 341.1 132 214.9 812.6 795.3 952.1 189 171 12,325 7,034.4 4,949

Meixian Town

1,760 70,321 30,743 29,535 27,313.7 18,569.8 12,840 771.5 4,565.8 215.8 176.7 866.5 2,862 1,828 1,034.7 456.1 1,696.6 12,300 1,323.1 5,900

Nanjiang Town

20,870 85,568 55,330 35,939 211,915 107,381 45,320 12,685 23,586 8,950 16,840 14,000 25,870 6,890 28,460 13,584 15,730 26,857 55,680 5,980

Dazhou Township

4,776 21,970 12,656 9,227 10,213 5,872 3,887 375 1,235 210 165 236 2,100 685 480 152 688 4,652 14,560 4,800

Wushi Town

18,012 77,188 35,463 32,419 186,000 46,000 8,000 3,000 24,000 8,000 3,000 90,000 30,000 5,000 6,000 4,000 5,000 13,000 52,000 10,539

Wukou Town

10,959 40,443 25,885 16,986 24,701 14,301 7,000 801 5,000 1,000 500 400 3,000 1,500 1,000 2,000 2,500 11,500 48,500 8,000

Wengjiang Town

14,951 56,021 35,500 23,529 8,500 4,000 1,500 500 1,000 500 500 100 500 600 1,500 1,000 800 20,000 35,000 9,500

Sandun Township

8,093 32,760 22,614 13,759 23,868 19,211 3,635 2,368 12,274 873 61 758 1,953 943 668 242 93 14,856 74,285 5,700

Longmen Town

10,326 41,548 21,699 17,450 23,987 15,924 10,650 662 4,263 207 142 756 2,938 1,427 1,129 387 1,426 12,772 13,544 9,033

Shiniuzhai Town

5,739 24,754 14,587 10,397 13,200 7,650 5,260 420 1,320 350 300 350 2,600 800 620 320 860 5,700 19,950 4,900

Data source: reports of all town/ships.

28

Table 3.1.-2: Basic Information of Affected Villages and Groups

Town/ship Village Group HHs

Population (person) Labor (person) Cultivated land (mu) Garden land (mu) Forest land

(mu) Pond (mu)

Total land area (mu)

Expropriated area (mu)

Impact rate due to LA

(%) Subtotal Agricultural population

Non-agricultural population

SubtotalIncluding: No. of

persons engaged in 2nd & 3rd industries

Subtotal Paddy field

Dry land

SubtotalOrchard Tea garden

Other garden

land

Sanyang Township

Shiyan Village 18 588 2,466 2,466 800 650 1650 1,350 300 300 230 70 2120 220 4,290 9.42 0.22%

Nanyuan Village 19 564 2,990 2,760 230 1,962 1740 2236 1,778 458 463 298 165 326 246 3,271 35.14 1.07%

Getengping Village 13 800 2,298 2,100 198 1,365 635 1007 830 177 265 225 40 1064 30 2,366 5.93 0.25%

Chengguan Town

Tianyue Village 20 856 2,819 2,614 205 1,410 1207 1267.87 911.87 356 234 26 182 26 3,561.55 152.27 5,215.69 0.28 0.01%

Sanyang Village 15 648 2,564 2,564 1,070 688 16 16 0 80 96 0.06 0.06%

Beiyuan Village 14 456 2,116 1,856 260 620 620 10457 857 9600 200 50 120 30 2,800 180 13,637 14.24 0.10%

Fengshu Village 1 532 2,196 2,190 6 1,116 502 1051 81 970 656 106 500 50 13,000 52 14,759 4.15 0.03%

Huaqiao Community 7 232 837 762 75 152 152 123 100 23 30 15 15 60 60 273 0.77 0.28%

Changshou Town Jintang Village 21 235 1,066 1,030 36 566 450 468 395 73 68 16 52 46,000 46,536 18.81 0.04%

Nanjiang Town

Caibo Village 4 111 440 408 32 303 271 260.4 193.8 91.6 24 7 17 425 18.6 728 17.55 2.41%

Changjiang Village 20 504 2,230 2,210 20 1,200 800 980 780 200 0 11,700 10 12,690 26.42 0.21%

Jiangtian Village 27 778 3,061 3,011 50 1,908 1400 2880 1,550 1330 0 0 15 20 2,915 1.47 0.05%

Shijiang Village 35 890 4,113 4,000 113 1,500 1300 2026 1,905 121 620 550 70 2,646 1.50 0.06%

Dazhou Township Yaozhou Village 8 321 1,290 1,290 0 640 156 840 580 260 346 60 286 1,186 4.08 0.34%

Banqiao Village 20 504 2,230 2,210 20 1,200 800 980 780 200 0 0 0 980 7.39 0.75%

Hongqiao Town Zhengdong Village 13 312 1,210 1,199 11 416 280 960 896 64 60 30 30 2,403 36 3,459 1.26 0.04%

Tianyue Village 12 213 960 920 40 526 238 661 609 52 25 25 4,568 45 5,299 0.87 0.02%

Sandun Township Hupei Village 18 535 2,305 2,295 10 1,200 1200 1610 1,230 380 159 120 39 6,700 95 8,564 1.35 0.02%

Longmen Town Longmen Village 8 30 150 150 62 20 105 60 45 0 205 6 316 1.20 0.38%

Tulong Village 5 110 636 636 312 100 270 242 28 0 687 12 969 1.50 0.15%

Changshou Town Yongning Village 1 413 2,606 2,560 46 1,260 1260 819 700 119 75 25 50 1,300 2,194 2.58 0.12%

Huayuan Village 20 486 2,410 2,320 90 1,280 770 2080 1,570 510 380 190 30 160 1,300 85 3,845 1.26 0.03%

Shiniuzhai Town Jiangshi Village 27 604 2,482 2,457 25 820 820 1990 1,700 290 0 17,300 40 19,330 1.60 0.01%

Anding Town Changtian Village 32 780 3,685 3,685 1,540 827 2578 2,170 408 495 115 380 3,650 107 6,830 1.26 0.02%

Fujia Village 15 298 1,506 1,496 10 800 300 838 462 0 420 300 120 160 20 1,438 1.25 0.09%

Wengjiang Town Hedong Village 17 530 2,076 2,076 1,196 1196 940 480 460 120 120 8,418 20 9,498 1.67 0.02%

Wushi Town Dongshan Village 16 232 2,520 2,520 0 1,320 350 1547 1,317 230 12,300 17 13,864 0.85 0.01%

Sushan Village 10 301 1,370 1,340 30 510 100 1275 775 500 0 1,829 20 3,124 1.02 0.03%

Wukou Town Sanlian Village 19 430 1,430 1,426 4 620 620 1542 920 622 250 80 100 70 10,800 40 12,632 1.26 0.01%

Donggang Village 17 548 2,686 2,464 222 1180 566 1600 940 660 450 50 400 9,650 11,700 2.38 0.02%

Meixian Town Tuanshan Village 22 735 3,043 2,900 143 2,010 2010 1069 900 169 262 62 200 3,961 52 5,344 0.86 0.02%

Zhezhuang Village 22 556 2,549 2,500 49 1,098 1098 1070 788 282 0 6,540 32 7,642 0.87 0.01%

14 33 274 7,113 33,624 32,944 680 16,150 11,755 20954 15759 4819 2696 697 1499 500 91771 627 116048 170.24 0.15%

Data source: reports of all town/ships and villages.

29

3.2. Socio-economic situation of APs 61. To further understand the basic situation of the residents in project villages and project impact to local residents, the resettlement survey team conducted a questionnaire survey on the living standards of the affected villages and farmers

3.2.1. Basic information of AHHs 62. 269 persons from 64 households in 33 villages of 14 town/ships of Pingjiang County will be directly affected by the permanent acquisition of the Project. All of them will be affected by LA, among them, 16 persons from 3 households will also be affected by HD. The sampling method is adopted for questionnaire on family living standard. It selects 39 AHHs with 165 persons in 7 town/ships and 12 villages, including 4 town/ships and 7 villages which are relatively affected by LA, and 3 town/ships and 5 villages with different levels of per capita income as the survey objects, accounting for 60.94% of the total permanently AHHs, including 20 households with 83 persons whose income loss affected by LA exceeds 10% and 3 households with 16 persons who are affected by HD. 63. The gender, age, education level and occupation of sampling households are listed in Table 3.2-1. Among the sampling households, there are 88 males and 77 females. 83.12% of the population is between 17 and 60 years old. 68.79% of the labor force have received junior high school and higher education, of which 26.03% are farmers, 29.33% are workers and 8.30% are businessmen.

Table 3.2-1: Sampling ratio Impact classification Affected HHs Sampling HHs Sample rate

LA (household) 64 39 60.94%

HD (household) 3 3 100.00%

Population (person) 269 165 61.34%

Female (person) 129 77 59.69%

Table 3.2-2: Gender, Age, Education Level and Occupation of Sampled Households

Content Information of sampling APs

Male % Female % Total %

Educational level

Junior college degree or above 20 22.50% 17 22.08% 37 22.30%

Junior middle school 41 46.25% 36 46.75% 77 46.48%

Primary school 24 27.50% 21 26.62% 45 27.09%

Illiterate and semiliterate person 3 3.75% 4 4.55% 7 4.12%

Total 88 100.00% 77 100.00% 165 100.00%

Occupation

Farmer 21 24.38% 22 27.92% 43 26.03%

Worker 26 30.00% 22 28.57% 48 29.33%

Organizations and institutions 4 5.00% 3 3.90% 7 4.48%

Businessman 8 8.75% 6 7.79% 14 8.30%

Student 13 15.00% 12 14.94% 25 14.97%

Others 15 16.88% 13 16.88% 28 16.88%

Total 88 100.00% 77 100.00% 165 100.00%

HHs 39

Population 165

Average population per household 4.23

3.2.2. Property situation and living conditions of AHHs

30

64. In the family living standard survey, special attention has been paid to the property situation and living conditions of the AHHs, which provided the basis for assessing the income loss of the affected households and making a reasonable resettlement and rehabilitation measures. The land resources, living conditions and family property situation of sampling households are listed in Table 3.2-2, and the house and living conditions are listed in Table 3.2-3.

Table 3.2-3: Land Resources, Living Conditions and Family Property Situation of Sampling Households

Type Agency Total Average amount per household

I. Household basic data Household 39

II. Land resources

(1) Paddy field mu 40 1.03

(2) Vegetable plot mu 8.2 0.21

(3) Dry land mu 13 0.33

(4) Pond mu 0.00

(5) Garden land mu 0.00

(6) Forest land mu 43 1.10

III. Residential status

Housing area m2 10784 276.51

IV. Family property situation

1. Electrical equipment (1) TV Set 49 1.26

(2) Fridge Set 44 1.13

(3) Air conditioner Set 73 1.87

(4) Washing machine Set 41 1.05

(5) Water heater Set 45 1.15

(6) Mobile phone Set 120 3.08

(7) Computer Set 19 0.49

2. Transportation tools

(1) Car Set 34 0.87

(2) Motorbike Set 45 1.15

31

Table 3.2-3: House and Living Conditions of Sampling Households Type Total Percent

I. Household basic data (Nos.) 39

II. House area

(1) Below 80 m2 0 0.00%

2 80m2—140m2 7 17.95%

3 141m2—200m2 19 48.72%

(4) Over 200 m2 13 33.33%

III. House structure

1. Main house

(1) Frame 0 0.00%

(2) Brick-concrete 37 94.87%

(3) Brick-wood 2 5.13%

(4) Civil 0 0.00%

(5) Makeshift houses 0 0.00%

2. Accessory house

(1) Frame 0 0.00%

(2) Brick-concrete 6 15.38%

(3) Brick-wood 15 38.46%

(4) Civil 0 0.00%

(5) Steel shed 0 0.00%

3.2.3 Income and expenditure of AHHs

65. Through sampling survey, the income and expenditure of AHHs are clearly shown. The annual income and expenditure of the sampling households are referred to Table 3.2-4.

Table 3.2-4: Annual Income and Expenditure of the Sampling Households

Type Total Average

amount per household (CNY/HH)

Average amount per

capita (CNY/person)

Percent to per capita income (%)

Household income

Planting income 127,800 3,276.92 774.55 7.73%

Animal husbandry income

34,000 871.79 206.06 2.06%

Operational income

245,000 6,282.05 1,484.85 14.82%

Work income 1,107,000 28,384.62 6,709.09 66.98%

Transfer income 8,820 226.15 53.45 0.53%

Other income 130,000 3,333.33 787.88 7.87%

Subtotal 1,652,620 42,374.87 10,015.88 100.00%

Household expenditure

Planting expenditure

62,600 1,605.13 379.39 4.62%

Animal husbandry expenditure

20,700 530.77 125.45 1.53%

Other operational expenditures

137,000 3,512.82 830.30 10.12%

Daily living expenditure

563,500 14,448.72 3,415.15 41.61%

Educational expenditure

233,000 5,974.36 1412.12 17.20%

32

Type Total Average

amount per household (CNY/HH)

Average amount per

capita (CNY/person)

Percent to per capita income (%)

Medical expenditure

68,600 1,758.97 415.76 5.06%

Favor pattern expenditure

169,000 4,333.33 1024.24 12.48%

Other expenditures

100,000 2,564.10 606.06 7.38%

Subtotal 1,354,400 34,728.21 8,208.48 100.00%

Per capita disposable income 10,015.88

Figure 3.2-1: Structural Comparison Chart of Per Capita Disposable Income of Sampling

Households

种植业收入 养殖业收入 营性收入 务工收入 转移性收入 其他收入

Series1 774.55 206.06 1484.85 6709.09 53.45 787.88

0

1000

2000

3000

4000

5000

6000

7000

8000

单位：元

人均可支配收入结构图Structural Chart of Per Capita Disposable Income

Planting income

Animal husbandry income

Operational income

Work income Transfer income

Other income

Uni

t: C

NY

33

Figure 3.2-2: Proportion of Per Capita Disposable Income of Sampling Households

66. It can be seen that the work income as one of the important sources of farmers' income plays an important role in improving the family living conditions of AHHs in the project area. 3.3. Willingness of LA, HD and resettlement 67. The family living standard survey also included public consultation for APs, which involved related issues concerning the willingness of LA, HD and resettlement. The answers to these questions better reflect the willingness of AHHs to LA, HD and resettlement, and provided a reference for the preparation of RP and the implementation of resettlement activities (Table 3.3-1). The willingness of sampling households to LA, HD and resettlement is referred to Table 3.3-1. 68. On the willingness survey of 36 HHs affected by LA , (i) 100% HHs are satisfied or basically satisfied with the current LA and compensation policy, and they support the project construction; (ii) 88.89% HHs think the impact of LA is moderate or limited, and 11.11 HHs% think the impact is large; and (iii) 63.89% HHs prefer cash compensation option, 27.78% HHs prefer land adjustment, and 8.33% HHs prefer other option. In addition, all three HHs affected by HD also support the project and the compensation policy. As for grievance redress procedures, HHs responded that they usually express their needs/demands through their village committees.

7.73%

2.06%

14.82%

66.98%

0.53%

7.87%

人均收入占比 %

种植业收入 养殖业收入 营性收入 务工收入 转移性收入 其他收入

Percent to per capita income (%)

Planting income

Animal husbandry income

Operational income

Work income Transfer income

Other income

34

Table 3.3-1: Willingness of Sampling Households to LA, HD and Resettlement Type AHHs %

I. Households affected by LA 36

1. Sample size of answers to question "do you support the project construction?”

(1) Support 33 91.67%

(2) Basically support 3 8.33%

(3) Not support 0 0.00%

2. Sample size of answers to question "are you satisfied with the current policy?”

(1) Satisfied 27 75.00%

(2) Basically satisfied 9 25.00%

(3) Dissatisfied 0 0.00%

3. Sample size of answers to question "the impact of LA and HD on families?”

(1) Large 4 11.11%

(2) Moderate 22 61.11%

(3) Not very 10 27.78%

4. Sample size of answers to question "after LA, what kind of resettlement scheme can you accept (you can choose repeatedly)?”

(1) Land adjustment 10 27.78%

(2) Cash compensation 23 63.89%

(3) Others 3 8.33%

II. Household affected by HD 3

1. Sample size of answers to question "do you support the project construction?”

(1) Support 2 66.67%

(2) Basically support 1 33.33%

(3) Not support

2. Sample size of answers to question "are you satisfied with the current policy?”

(1) Satisfied 3 100%

(2) Basically satisfied

(3) Dissatisfied

3. Sample size of answers to question "what channels do you usually use to respond to demands?”

(1) Village committee 3 100%

(2) Town/ship people's government

(3) County

(4) Others

35

4. Legal Framework and Policies 69. The preparation and implementation of the RP comply with relevant PRC laws and regulations of Hunan Province and ADB SPS. Compensation standards and restoration measures adopted in the RP will be implemented in the process of LA and HD. 70. Since the LAR activities will not be conducted in just one point of the implementation stage, more recent regulations if of higher standard, will apply at the time that Detail Engineering Design (DED) are prepared and updated RP prepared for particular subprojects. 4.1. Main laws, regulations and policies of PRC

4.1.1. National laws and regulations

1) Land Administration Law of the PRC (effective from January 1, 1999,

amended on August 26, 2019 and implemented on January 1, 2020); 2) Regulation on the Protection of Basic Farmlands (effective from January 1,

1999); 3) Rural Land Contract Law of the PRC (implemented on March 1, 2003,

amended on December 29, 2018 and implemented on January 1, 2019); 4) Measures for the Administration of Management-Right Transfer of Rural

Land (amended draft for comments), officially implemented on January 1, 2020;

5) Decision on Deepening Reform and Strengthening Land Management (issued by the State Council on October 21, 2004);

6) Notice of the General Office of the State Council about Forwarding the Guideline of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-Loss Farmers (LLFs) (GBF [2006] No. 29);

7) Property Law of the People's Republic of China (effective from October 01, 2007);

8) Cultivated Land Occupation Tax of the PRC (effective from September 1, 2019);

9) Regulations on the Disclosure of Government Information of the PRC (effective from May 1, 2008, amended on and implemented on May 15, 2019);

10) Urgent Notice of the General Office of the State Council on Further Strengthening the Management of Land Acquisition and House Demolition and Safeguarding the Legitimate Interest of the Masses (GBF [2010] No. 15);

11) Notice of the Ministry of Land and Resources on Doing a Better Job in Land Acquisition Management (June 26, 2010);

12) Emergency Notice of the General Office of the Ministry of Land and Resources on Strengthening the Management of Illegal Land Acquisition (GTZDF [2013] No. 28); and

13) Other applicable laws and regulations. 4.1.2. Laws and regulations of Hunan Province

1) Methods of Hunan Province for Implementing the Land Administration Law

of the PRC (promulgated on September 2, 2000, amended and implemented on March 31, 2012);

2) Notice of the People's Government of Hunan Province on Adjusting

36

Compensation Standards for Land Acquisition in Hunan Province (effective from January 1, 2018);

3) Measures of Hunan Province for Implementing Regulations on House Acquisition and Compensation on State-owned Land (effective from April 1, 2014);

4) Notice of the General Office of the People's Government of Hunan Province on Issuing the Administrative Measures of Hunan Province for the Collection of Land Reclamation Fees (effective from July 17, 2019);

5) Measures of Hunan Province for Implementing the Provisional Regulations on Cultivated Land Occupancy Tax of the PRC (effective from November 12, 2008);

6) Notice by General Office of the People’s Government of Hunan Province about Forwarding the Opinions of the Provincial Department of Human Resources and Social Security on Doing a Good Job in Social Security for Land-Loss Farmers (LLFs) (effective from April 11, 2014).

4.1.3. Relevant regulations of Pingjiang County and Yueyang City

1) Notice of Yueyang Municipal People's Government on Adjusting

Compensation Standards for Land Acquisition in Yueyang City (effective from January 1, 2018);

2) Notice of Yueyang Municipal People's Government on Issuing the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Yueyang City (effective from May 6, 2019);

3) Measures for Implementing House Acquisition and Compensation on State-owned Land in Yueyang City (effective from October 29, 2012);

4) Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Compensation and Resettlement of Collective Land Acquisition and House Demolition and Relocation in Pingjiang County (effective from January 7, 2020);

5) Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Social Security for Land-Loss Farmers (LLF) in Pingjiang County (PZBF [2018] No. 26)

A summary of relevant laws and regulations is provided in Annex.

4.2. Resettlement Policy of the ADB

71. ADB SPS’s policies and principles on involuntary resettlement are adopted for the project. 72. The objectives of the SPS IR safeguards are: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable. The principles are presented in the table below:

Table 4.2-1: Resettlement Principles Principles

(i)

Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

(ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their

37

entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

(iii)

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.

(iv)

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.

(v)

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.

(vi)

Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

(vii)

Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets.

(viii)

Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

(ix)

Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

(x)

Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

(xi)

Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation.

(xii)

Monitor and assess resettlement outcomes, their impacts on the standards of living of

displaced persons, and whether the objectives of the resettlement plan have been

achieved by taking into account the baseline conditions and the results of resettlement

monitoring. Disclose monitoring reports.

38

4.3.1. Differences between ADB's involuntary resettlement policy and Domestic LAR policies and Gap filling Measures

The differences between ADB SPS and PRC’s policies and local practices as well as gap filling measures are identified as presented in Table below.

44

Diffeences between PRC Policies and ADB Requirements and Gap Filling Measures Taken in the RP

ADB SPS Legal Provisions and Local Practice; and Differences

compared to ADB SPS Measures in the RP

Policy Principle 1: Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

Management Regulations for Construction Project Land Use Pre-examination (Decree No.42 of MLR) requires to screen the area and type of the land to be provided for the project before approving the FSR or checking the project proposal. Before land acquisition, local LRB conducts detailed measurement survey (DMS). Before house demolition, the house demolition agency conducts detailed measurement survey. PRC regulations 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. In particular, identification of vulnerable group and support measures can be developed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System. Please see Policy Principle 5 for more details.

The resettlement plan and due diligence has been undertaken to identify all involuntary resettlement impacts and risks, including identification of issues of gender and vulnerable group.

Policy Principle 2: Carry out meaningful consultations with affected persons, 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 of resettlement programs.

Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations.

Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population.

Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

At national level, Land Administration Law of the People’s Republic of China, State Council's Decision on Deepening Reform and Managing Strictly Land (the State Council made [2004]28), Guidelines on Improving the System of Land Acquisition Compensation and Resettlement (the Ministry of Land and Resources made [2004] number 238), and Regulations on the Compensation of Houses on State-owned Land and Compensation (2011) have similar requirements on consultation and participation. In the province, relevant regulations and policies also require consultation, participation and information disclosure throughout the land acquisition and resettlement procedures. Although there are consultation and participation activities conducted by local government, only some government’s procedural documents are documented. To improve the documentation, all activities need to be properly documented. As per law, a grievance redress mechanism is established at the local government where farmers can first raise their concerns with the village collective or bring their grievances through the legal system directly. However, the documentation system is not adequate. In line with local government programs, the needs of vulnerable groups affected by any project can be identified and assessed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System. In practice, local village committee, civil affairs bureau, social security bureau and other government agencies pay attention to the needs of the poor and vulnerable

The RP includes (a) adequate provisions of consultations, including with the poor and vulnerable groups; (b) documentation of the consultation and information disclosure; (c) grievance redress mechanism.

45

ADB SPS Legal Provisions and Local Practice; and Differences

compared to ADB SPS Measures in the RP

groups. Policy Principle 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.

Land Administration Law [2019] requires that for collective land compensation, the provincial government needs to formulate and publish district comprehensive land prices for Land Acquisition, and social security budget should be considered. State Council [2004] number 28 states that (1) where the project concerned generates profits the people displaced can use the land as investment to have a right to share in those profits; (2) within a planned urban area, improvement of employment system and social security to safeguard AP’s lives. (3) out of a planned urban area, land resettlement, employment resettlement, or displacement resettlement shall be implemented (4) carry out employment trainings. Ministry of Land and Resources [2004] 238 and relevant provincial policies require that (1) Agricultural production resettlement; (2) re-employment resettlement; (3) using the land as share of the project; and (4) provision of replacement land. Compensation rates for affected assets are administratively determined through application of prescribed valuation processes.

The RP includes adequate measures of: (i) compensation based on replacement costs; (ii) relocation of affected structures; and (iii) livelihood restoration.

Policy Principle 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. Policy Principle 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.

As per legal provisions, poor and vulnerable groups are defined as those (i) who fall within the five-guarantee households; and (ii) eligible for the Minimum Living Guarantee System. The local village/community committee, civil affairs bureau, social security bureau and other agencies pay attention to the needs of the poor and vulnerable groups: a) Five-Guarantee program provide production and living assistance (e.g. food, clothing, fuel, education and burial expenses to targeted vulnerable people (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor a rural production cooperative would); 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; priority given by the village committee to be included in the endowment insurance system for the farmers affected by 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

Identification of vulnerable groups has been made; and the RP includes the measures for vulnerable group.

46

ADB SPS Legal Provisions and Local Practice; and Differences

compared to ADB SPS Measures in the RP

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 issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing.

Principle 6: Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

Not relevant as the project does not involve land acquisition through this means.

N/A

Policy Principle 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.

Based on the Regulations on the Demolition and Compensation of Houses on State-owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated.

As good practice, (for households who are not eligible for compensation for houses at replacement value) the history or reason why the structure has no certification/license and their socio-economic 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 issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing.

The RP provides resettlement assistance and compensation for loss of non-land assets.

Policy Principle 8: Prepare a resettlement plan (RP) elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Policy Principle 9: Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

Except for large-scale water sector projects, there are no specific requirements to prepare a resettlement plan which is similar to the RP required by ADB.

RP has been prepared for the project elaborating on affected persons’ entitlements, income and livelihood restoration measures, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. The RP will be disclosed to affected villages/communities and affected people.

Policy Principle 10: Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-

Refer to Article 12 of No. 28 Decree, the total resettlement cost should be included in the total project cost. All compensation and administrative costs are included.

Decree 29 issued in 2006 states land compensation and resettlement should ensure that the living standards and sustainability of the livelihood of the land-loss farmers are

The RP includes full costs of LAR, which are included in the overall project cost.

47

ADB SPS Legal Provisions and Local Practice; and Differences

compared to ADB SPS Measures in the RP

alone operation. ensured; and that vocational training and social security programs should be properly implemented for land-loss farmers. Any shortfall in the resettlement budget should be provided by the local government.

Policy Principle 11: Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

Regulations generally require compensation and other financial forms of resettlement assistance to be paid before physical or economic displacement.

Local government is responsible for supervising throughout the project implementation period, but only focused on if the AHs have received the full compensation

The includes measures ensuring that APs receive their compensation and entitlement before displacement.

Policy Principle 12: Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

Except for large-scale water projects, there are no requirements to monitor and evaluate outcomes, including impacts on standards of living of displaced persons.

Local government is responsible for supervising throughout the project implementation period however, monitoring reports are not disclosed

Coordination mechanism between the PMO and concerned LAR implementing agencies have been established in the RP to properly monitor and supervise LAR activities. The enhanced information sharing will include the disclosure of monitoring reports. Monitoring reports will be disclosed in project areas.

48

4.3. Cut-off date of eligibility 73. The cut-off date for eligibility for compensation is as officially announced by the PMO. Announcement can be made through distribution of resettlement information booklet or posting notices in the village community boards. Any newly claimed land, newly built house or settlement in the project area by APs after this date will not be entitled to the compensation or subsidization. After discussion, the cut-off date of this project is 31 August 2020. 4.4. Compensation and subsidy standard

4.5.1. Land compensation standard

(1) Compensation for land acquisition Land compensation standard 74. The annual output value per mu is determined based on the analysis and calculation of the land output per mu from 2017 to 2019 and the price of agricultural products in 2019 in Pingjiang County. After analysis and calculation, the annual output value of cultivated land was 2,121 CNY/mu for paddy field, 1,658 CNY/mu for dry land, 1,060.5 CNY/mu for arbor forest and 1,326 CNY/mu for garden plot. Table 4.5-1 presents the calculation of output value for cultivated land per mu. 75. According to the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (effective from January 1, 2018) and the Notice of the Yueyang Municipal People's Government on Adjusting the Compensation Standard for Land Acquisition in Yueyang City (effective from January 1, 2018), the compensation standard for land acquisition in Pingjiang County was 53,200 CNY/mu in Area I and 47,400 CNY/mu in Area II. For acquisition of paddy fields, implement 1.2 times of the above standard; for acquisition of cultivated land (except paddy fields), grassland (except other grasslands), rural roads, reservoir surface, pond surface, ditches, facility agricultural land, raised path through fields and construction land, implement the above standard; for acquisition of garden plots and forest land, implement 0.8 times of the above standard; for acquisition of unused land, implement 0.6 times of the above standard; for acquisition of basic farmland, implement the standards for paddy fields of the area. Tthis compensation standard for land acquisition includes the sum of land compensation fee and resettlement subsidy, of which 40% is land compensation fee, 60% is resettlement subsidy. The compensation standard for attachments and young crops on the ground is also shown in the following relevant sections. The permanent LA scope of the Project is involved in both Area I and Area II. Table 4.5-2 shows the analysis of calculation compliance between various compensation standards and resettlement cost in Pingjiang County issued by Yueyang City.

49

Table 4.5-1: Calculation of Output Value of Cultivated Land per mu

Content

Paddy field Dry land

Early season rice

Middle-season rice

Late rice Rape Fruits and vegetables

Rape Cotton Peanut Chinese herbal

medicine

Fruits and vegetables

2017

Main products

Output (kg) 358 491 449 95 1,088 95 74 297 401 1,838

Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5

Output value (CNY) 859.2 1,237.32 1,131.48 323 2,720 323 325.6 487.08 1,283.2 4,595

Output value of byproduct (CNY) 85.92 123.73 113.15 32.3 272 32.3 32.56 48.71 128.32 459.5

Subtotal of output value (CNY) 945.12 1,361.05 1,244.63 355.3 2,992 355.3 358.16 535.79 1411.52 5,054.5

Sowing proportion of various crops

0.38 0.24 0.38 0.39 0.24 0.39 0.03 0.1 0.01 0.28

Output value of various crops per mu (CNY) 359.15 326.65 472.96 138.57 718.08 138.57 10.74 53.58 14.12 1,415.26

Output value per mu (CNY) 2,015.41 1,632.27

2018

Main products

Output (kg) 378 506 426 95 1,571 95 74 301 405 1,838

Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5

Output value (CNY) 907.2 1,275.12 1,073.52 323 3,927.5 323 325.6 493.64 1,296 4,595

Output value of byproduct (CNY) 90.72 127.51 107.35 32.3 392.75 32.3 32.56 49.36 129.6 459.5

Subtotal of output value (CNY) 997.92 1,402.63 1,180.87 355.3 4,320.25 355.3 358.16 543 1,425.6 5,054.5

Sowing proportion of various crops

0.37 0.25 0.39 0.39 0.22 0.38 0.03 0.1 0.01 0.26

Output value of various crops per mu (CNY) 369.23 350.66 460.54 138.57 950.46 135.01 10.74 54.3 14.26 1,314.17

Output value per mu (CNY) 2,269.46 1528.48

2019

Main products

Output (kg) 369 544 406 101 1,095 101 76 333 416 2,056

Unit price (CNY/kg) 2.4 2.52 2.52 3.4 2.5 3.4 4.4 1.64 3.2 2.5

Output value (CNY) 885.6 1,370.88 1,023.12 343.4 2,737.5 343.4 334.4 546.12 1331.2 5,140

Output value of byproduct (CNY) 88.56 137.09 102.31 34.34 273.75 34.34 33.44 54.61 133.12 514

Subtotal of output value (CNY) 974.16 1,507.97 1,125.43 377.74 3,011.25 377.74 367.84 600.73 1,464.32 5,654

Sowing proportion of various crops

0.39 0.25 0.4 0.39 0.24 0.38 0.03 0.1 0.01 0.28

Output value of various crops per mu (CNY) 379.92 376.99 450.17 147.32 722.7 143.54 11.04 60.07 14.64 1,583.12

Output value per mu (CNY) 2,077.1 1,812.41

Three-year average annual output value (CNY) 2,121 1,658

50

Table 4.5-2: Compensation Standard for Permanent Acquisition of Collective Land for Project

Land type Compensation

standard (CNY/mu) Output value

in 2017 - 2019 (CNY/mu)

Compensation multiple (times)

Correction coefficient for

land types

Remarks

Zone I Zone II Zone I Zone II Area I: Chengguan Town includes Yuechitang Community, Qiming Community, Jingfuping Community, Minjianlu Community, Jinhua

Community, Huaqiao Community, Tongjialing Community, Shuyuan Community, Siqian Community, Sizhulu Community, Bitan

Community, Shoujiaping Community, Jingkan Community, Fuqiaojie Community, Pingshang Community, Baihuatai Community,

Hongjiaduan Community, Chengdong Village, Chengxi Village, Chengxin Village, Chengping Village, Beicheng Village, Beiyuan Village, Sanyang Village, TianyueVillage and Fengshu Village; Sanyang Township includes Changchong Village, Getengping

Village, Nanyuan Village, Shiyan Village, Xinlian Village, Daipingyuan Village, Daxi Village, Jinwo Village, Panhong Village, and Xinhe

Village; Nanjiang Town includes Gaoping Village, Jiangtian Village, Qiaodong Village, Longfeng Village, Qiaoxi Village, Chongyi Village; Changjiang Village, Zaoxi Village, and Hongmen Village; Changshou

Town includes Taipingduan Village, Dongyi Village, Zhifu Village, Xinyuan Village, Donghu Village, Xingang Village, Baofeng Village,

and Fuping Village; Anding Town includes Shanghuang Village, Shanbei Village, Guantang Village, Hengchong Village, Anding

Village, Xiaotian Village, Anyong Village, and Wushi Village; Wushi Town includes Wugongshi Community and Yeshiping Village. Other town/ships and villages (communities) not listed in Area I belong to

Area II.

Compensation Standard for LA in Pingjiang County

53,200 47,400

Paddy field 63,840 56,880 2,121 30.1 26.8 1.2

Dry land 53,200 47,400 1,658 32.1 28.6 1

Rural roads 53,200 53,200 1,658 32.1 32.1 1

Reservoir waters 53,200 47,400 1,658 32.1 28.6 1

Pit and pond waters 53,200 47,400 1,658 32.1 28.6 1

Ditches 53,200 47,400 1,658 32.1 28.6 1

Construction land 53,200 47,400 1,658 32.1 28.6 1

Garden land 42,560 37,920 1,326 32.1 28.6 0.8

Forest land 42,560 37,920 1,060.5 40.1 35.8 0.8

Unused land 31,920 28,440 0 0.6

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76. According to the calculation, the materialized input cost per mu of paddy field and dry land in Pingjiang County is 685 CNY/mu and 465 CNY/mu respectively (Table 4.5-3), so the net output value of paddy field and dry land is 1,436 CNY/mu and 1,193 CNY/mu respectively.

Table 4.5-3: Calculation of Materialized Cost per mu of Cultivated Land No. Content Unit Paddy field Dry land Remarks

Total 685 465

1 Seed fee CNY 30 20

2 Chemical fertilizer fee CNY 165 165

3 Pesticide fee CNY 80 70

4 Agricultural film fee CNY 20 20

5 Leveling machinery fee CNY 160 60

6 Irrigation and drainage fee CNY 40 40

7 Harvesting machinery fee CNY 180 80

8 Other costs CNY 10 10

77. According to the comparative analysis of price between the risk free return on compensation unit price and net output value (Table 4.5-4), it can be found that the compensation standards of paddy field and dry land adopted by Pingjiang County can meet the requirements of replacement cost.

Table 4.5-4: Analysis of Replacement Price

Land type Land compensation fee (CNY/mu) Bank interest rate

(over three years) Risk-free income

(CNY/mu)

Net output value of land

(CNY/mu)

Surplus (CNY/mu)

Zone I Zone II Zone I Zone II Zone I Zone II Paddy field 63,840 56,880 2.75% 1,755.6 1,564.2 1,436 319.6 128.2

Dry land 53,200 47,400 2.75% 1,463 1,303.5 1,193 270 110.5

(2) Compensation unit price for young crops and trees

78. The compensation for young crops and trees is determined according to the relevant provisions of the Compensation and Resettlement Measures for Collective LA and HD in Pingjiang County: the compensation for young crops in paddy field, dry land and pond is 2,975 CNY/mu, 2,125 CNY/mu and 800 CNY/mu respectively. The compensation unit price for tea garden, orchard, arbor forest and shrub forest is 7,225 CNY/mu, 12,000 CNY/mu, 2,040 CNY/mu and 850 CNY/mu respectively. Table 4.5-5 shows the compensation unit price of young crops and trees.

Table 4.5-5: Compensation Unit Price of Young Crops (Trees) (Unit: CNY/mu)

Content Compensation for young crops (trees) Remarks

Paddy field 2,975

Dry land 2,125

Pond surface 800

Orchard 12,000

Arbor forest 2,040

Shrub land 850

(3) Compensation for temporary land

79. Temporary land for the Project will only involve paddy field, dry land and forest land. Temporary land compensation includes four parts: land compensation for construction period, compensation for young crops (trees), land reclamation fees and subsidy for reaching the production period.

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1) Land compensation for construction period 80. Land compensation for construction period is calculated based on the occupation period and the annual output value of land per mu. According to the construction schedule and time limit for the Project, temporarily occupied land will be compensated based on 1 year. Table 4.5-1 shows the calculation of output value of cultivated land per mu. 2) Compensation unit price for young crops and trees 81. The APs will be informed before commencement of TLO and civil works. If the standing crops could not be harvested before TLO, therefore, such crops will be compensated at the replacement price. Table 4.5-3 shows the compensation for trees and forest land. 3) Unit price of reclaiming temporarily occupied land 82. Based on the analysis and calculation of planned reclamation measures, the average unit price of reclaiming cultivated land is shown below: 11,952 CNY/mu for paddy field, 7,762 CNY/mu for dry land and 3,881 CNY/mu for arbor forest respectively. Table 4.5-6 shows the analysis of unit price of reclaiming temporarily occupied land. 4) Subsidy for reaching production period 83. The subsidy for reaching production period means the compensation for the period from the reclamation to the recovery of normal cultivation level of the land. The subsidy for paddy field and dry land for reaching production period is calculated based on the average output value of three years. The subsidy for paddy field and dry land for reaching production period is 2,121 CNY/mu and 1,966 CNY/mu respectively.

53

Table 4.5-6: Analysis of Average Unit Price of Reclaiming Land (Unit: CNY/mu)

No. Content Unit Reclaiming paddy field into paddy field Reclaiming dry land into dry land

Quantity Unit price

(CNY) Investment

(CNY) Quantity Unit price

(CNY) Investment

(CNY) I Engineering measures cost 9,026 5,600

1 Stripping and backfilling of tillage soil m3 200 9.5 1,900 200 9.5 1,900

2 Site clearing 500 500

3 Land development 5,626 3,000

3.1 Filling bottom soil m3 334 15 5,010 200 15 3,000

3.2 Laying field ridge Work-day 7 88 616

4 Water conservancy facility 1,000 200

II Biochemical measures cost 1,016 740

1 Organic compound fertilizer T 0.2 2,000 400 0.15 2000 300

2 Soil ripened for production Work-day 7 88 616 5 88 440

III Other costs 1,675.5 1,269

1 Preliminary work cost 406.17 252

2 Supervision cost 180.52 112

3 Completion acceptance cost 270.78 168

4 Owner's management fee 217.99 137.4

5 Compensation fee for borrow area 600 600

IV Contingencies 234.35 152.2

V Total CNY/mu 11,952 7,762

VI Design value CNY/mu 11,952 7,762

54

(4) Endowment insurance fees for LLFs 84. According to the Notice by General Office of the People’s Government of Hunan Province about Forwarding the Opinions of the Provincial Department of Human Resources and Endowment insurance on Doing a Good Job in Endowment insurance for Land-loss Farmers (LLFs) (XZBF [2014] No. 31) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26), "When the land requisition agency acquires land, the endowment insurance fee of LLFs shall be paid in one time according to the standard of no less than 30 CNY/m2.”

4.5.2. Compensation standard for house demolition and relocation

(1) House compensation standard 1) Calculate the compensation price of house resettlement 85. The rural house structure affected by LA required for project construction is divided into brick-concrete structure and brick-wood structure. Houses will be reconstructed by the method of unified planning and self-construction by AHHs. According to the typical design of newly-built houses with the same type of structure and the calculation of engineering quantities, the areas of typical brick-concrete and brick-wood house are 258.52 m2 and 105.56 m2 respectively. See Figures 4.5-1 ~ 2 for the house elevation.

Figure 4.5-1: Elevation of Brick-concrete Structure House

60x180 white brick

55

Figure 4.5-2: Elevation of Brick-wood Structure House

86. Based on the typical designed quantities of each structural house, the compensation price for the house is calculated as follows:

a. Compensation price of the house includes house construction cost and other construction cost, including house construction, electricity, water supply and drainage engineering cost; other construction costs include survey and design fees and supervision fees. The total cost of the house includes partial and itemized price, price of measure projects, fees, taxes, survey and design fees, and supervision fees. When calculating the house construction cost, old materials of the original house are not considered to be used.

b. Calculation of house construction costs does not consider the use of old materials of the original house.

c. Excluding decoration cost. d. Preparation of documents: according to the Code for Measurement of Bill of

Quantities of Project (2013, Hunan), Pricing Method of Construction Project in Hunan Province (2014), Consumption Standard for Construction Project in Hunan Province (2014) and Consumption Standard for Construction Decoration Project in Hunan Province (2014).

e. Labor wages: according to relevant regulations of A Notice of House and Urban-Rural Development of Hunan Province on Issuing the Unit Price of Labor Wages for Construction Projects in Hunan Province in 2019 (XJJ [2019] No. 130).

f. Price level is based on the price in the 4th quarter of 2019.

87. According to calculation, the construction cost (excluding decoration cost) of each typical house structure is shown below: 1,048 CNY/m2 for brick-concrete structure and 897 CNY/m2 for brick-wood structure (Table 4.5-7).

Table 4.5-7: Calculation for Unit Cost for Main Works of Various Typical House Structures

Structure Building

area (m2)

Amount (CNY

10,000)

Part II Other costs for main works of house structure (CNY 10,000)

Part II Other costs for project construction (CNY

10,000) Building area (m2)

Unit cost (CNY/m2)

Subtotal Building works

Electrical engineering

Water supply

and drainage system

Subtotal

Survey and

design cost

Supervision cost

Project cost

Survey and

design cost

Supervision cost Subtotal

56

Brick-concrete

258.5 27.08 24.96 24.15 0.61 0.2 2.12 1.32 0.8 258.5 966 51 31 1048

Brick-wood

105.6 9.46 8.72 8.36 0.25 0.11 0.74 0.46 0.28 105.6 826 44 27 897

2) Newly release compensation standard for house acquisition in Pingjiang County 88. According to the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County issued by the PCG on January 7, 2020, the compensation standards of main structure of residential houses in Pingjiang County are shown below: CNY 1,184/m2 for brick-concrete structure and CNY 904/m2 for brick-wood structure. For brick-concrete structure, the newly issued compensation price is higher than the house cost calculated above by CNY 136/m2, and for brick-wood structure, the newly issued compensation price is higher than the house cost calculated above by CNY 7/m2.

89. It can be seen that the latest compensation standard for house acquisition issued by the PCG can meet the requirements of replacement cost for house reconstruction. AHHs have choses cash compensation during the FSR; it will be reconfirmed during the RP update. 3) House compensation standards to be adopted

(1) Rural house compensation standard

90. According to the principle of resettlement cost of house compensation and in combination with the fairness and rationality of the local acquisition and compensation policy, the latest Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County issued by the PCG on January 7, 2020 will be implemented. The compensation standard is shown below: 1,184 CNY/m2 for brick-concrete structure and 904 CNY/m2 for brick-wood structure of the main house; 560 CNY/m2 for brick-concrete structure and 432 CNY/m2 for brick-wood structure of the decoration works; 880 CNY/m2 for brick-concrete structure of simple structure and 160 CNY/m2 for steel shed.

(2) Urban house compensation standard 91. Urban house demolition is not involved under the project LA, so not relevant in this project.

(2) Other compensation standards 92. According to the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County, other compensations mainly include: 160 CNY/m2 (lump sum) for ancillary facility; rewarding 200 CNY/m2 for those who sign contracts as scheduled, and rewarding 200 CNY/m2 for those who remove as scheduled; house building subsidy: 30,000 CNY/HH; removing cost: 1,500 CNY/HH; transfer fees: 800 CNY/household per month; tomb relocation cost: 2,300 CNY/tomb, and subsidy for purchasing land for new tomb: 2,000 CNY/tomb (Table 4.5-8).

Table 4.5-8: Compensation Standard for House and Others

Compensation category Grade Compensation standard

(CNY/m2)

House Rural house Formal

structures

Brick-concrete

Main structure 1,184

Decoration 560

Brick-wood Main structure 904

57

Decoration 432

Simple structure

Brick-concrete 880

Steel shed 160

Others

Auxiliary facilities 160 CNY/m2

Reward for signing contracts on schedule

200 CNY/m2

Reward for relocating on schedule

200 CNY/m2

House building subsidy 30,000 CNY/HH

Moving costs 1,500 CNY/household per times

Grave 2,300 CNY/tomb

4.5.3. Compensation standard for demolition and reconstruction of special facilities

93. Table 4.5-9 shows the compensation of unit price for special facilities of recent similar projects in the region.

Table 4.5-9: Unit Price for Planning and Processing of Special Items No. Content Agency Unit price (CNY) (I) Transportation

Simple-built highway km 800,000

Bridge and culvert of simple-built highway Set 500,000

Pedestrian bridge Set 10,000

(II) Power transmission and transformation facilities

10kV high voltage line km 150,000

220 V LV line km 100,000

Transformer Set 30,000

(III) Communication facilities

Communication optical cables km 120,000

(IV) Municipal facilities

Sewage pipe km 350,000

(V) Water conservancy facilities

Channels km 80,000

Culvert pipes km 200,000

Pumping plants kW 2,000

(VI) Other facilities

Solar street lamps Piece 6,000

4.5.4. Other costs

94. Other costs shall be compiled according to the Planning and Design Code for Resettlement and Land Acquisitions in Irrigation and Hydropower Projects.

1) Preliminary work cost: various expenses incurred from the preliminary work of resettlement and land acquisition for construction, which is calculated at 2.5% of the sum of the rural LAR compensation, urban LAR compensation, and special facility reconstruction compensation.

2) Comprehensive survey and design research cost: cost of required survey, layout, design and scientific research for land acquisition and resettlement design, which is calculated at 4% of the sum of the rural LAR compensation and urban LAR compensation plus 1% of special facility reconstruction compensation.

3) Implementation management cost: including local government implementation management cost and construction agency implementation management cost. The former is calculated at 4% of the sum of the rural LAR compensation and urban LAR compensation plus 2% of special facility reconstruction compensation; the latter is

58

calculated at 1.2% of the sum of the rural LAR compensation, urban LAR compensation, and special facility reconstruction compensation.

4) PMO initiation cost: cost for official rooms, vehicles and equipment procurement and other required costs for the start-up and operation of the PMO, which is calculated at CNY 3 million.

5) Technical training cost: cost for enhancing the production skills and cultural accomplishment of the rural APs and the management level of LAR cadres, which is calculated at 0.5% of rural resettlement compensation.

6) Monitoring and evaluation (M&E) cost: cost for LAR comprehensive supervision, monitoring and evaluation, which is calculated at 2% of the sum of the rural LAR compensation and urban LAR compensation plus 1% of special facility reconstruction compensation.

4.5.5. Physical contingency

95. The physical contingency is prepared with reference to the Planning and Design Code for Resettlement and Land Acquisitions in Irrigation and Hydropower Projects, and is calculated according to the sum of the above expenses multiplied by the rate, which is 12% in the FSR stage.

4.5.6. Relevant tax

(1) Cultivated land occupation tax 96. According to the relevant provisions from Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax, (Decree No. 511 of the State Council of the PRC), Rules for the Implementation of Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax (Decree No. 49 of the Ministry of Finance of the PRC and State Administration of Taxation) and Methods of Hunan Province for Implementing Provisional Regulations of the People's Republic of China on Cultivated Land Occupation Tax (No. 231 of People's Government of Hunan Province), the Project is a water conservancy project, and the cultivated land occupation tax is levied according to the tax rate of 2 CNY/m2 (i.e. 1,333 CNY/mu).

(2) Land reclamation fee 97. According to the Notice of the General Office of the People's Government of Hunan Province on Issuing the Administrative Measures of Hunan Province for the Collection of Land Reclamation Fees (XZBF [2019] No. 38), the project area in Pingjiang County is a medium-sized area in Hunan Province, with the charging standard of 66,000 CNY/mu for paddy field and 38,000 CNY/mu for dry land.

(3) Forest vegetation recovery cost 98. According to the provisions from Notice on Adjusting the Collection Standard of Forest Vegetation Restoration Fees and Guide Economical and Intensive Use of Forest Land (CS [2015] No. 122), the collection standard is: 10 CNY/m2 (i.e. 6,667 CNY/mu) for arbor forest, and 6 CNY/m2 (i.e. 4,000 CNY/mu) for shrub forest. 99. Rural residents shall be exempted from forest vegetation restoration fees for house construction according to the prescribed standards. 4.5. Entitlement matrix

59

100. According to the results of the impact survey at this stage and the applicable policies of the Project, the table of entitlement matrix (Table 4.6-1) has been prepared, which will be reconfirmed or updated during the RP update.

60

Table 4.6-1 Entitlement Matrix

Type of impacts

Scope of impact Towns/Villages AHH/APs

Policies of compensation & resettlement/rehabilitation

Compensation standards

Collective land

acquisition

Collective land 170.24 mu

There are 14 town/ships and 33 villages, including Chengguan Town,

Sanyang Township, Changshou Town,

Anding Town, Hongqiao Town, Meixian Town,

Nanjiang Town, Dazhou Township, Wushi Town, Wukou Town, Sandun Township, Wengjiang Town, Longmen Town and Shiniuzhai Town

There are 64 households with

269 persons, including 129

females.

(1) Money compensation: the compensation standard for LA announced by Hunan Province; (2) Agricultural resettlement measures: Measures to adjust cultivated land within the group are adopted in 11 town/ships and 11 villages such as Nanyuan Village in Sanyang Township. (3) Non-agricultural job placements: There are more than 5,000 public service jobs, public welfare jobs or project jobs for APs, including more than 2,000 jobs suitable for women; (4) Skills training: Provide free agricultural and non-agricultural skills training to APs. (5) Endowment insurance: Provide old-age insurance to the affected farmers.

Land compensation standard Paddy field: 63,840 CNY/mu for Class I and 56,880 CNY/mu for Class II Dry land: 53,200 CNY/mu for Class I and 47,400 CNY/mu for Class II Garden land: 42,560 CNY/mu for Class I and 37,920 CNY/mu for Class II Forest land: 42,560 CNY/mu for Class I and 37,920 CNY/mu for Class II Rural roads, ditches, water surface, construction land and curtilage will be compensated according to dry land standard. Compensation standard for young crops Paddy field; 2,975 CNY/mu, dry land: 2,125 CNY/mu, Orchard: 12,000 CNY/mu, pond: 800 CNY/mu, Arbor forest: 2,040 CNY/mu, shrub forest: 850 CNY/mu. Payment of compensation for LA will be carried out in accordance with the village regulations and conventions jointly formulated by the villagers. Shiyan Village of Sanyang Township retains 2% of the land compensation fee, Nanyuan Village of Sanyang Township and Beiyuan Village of Chengguan Town retain 5% of the land compensation fee, which are all used for collective construction, and all land compensation fees of other villages are distributed to households.

HD on the collective

land

The houses on the collective

land are 628.53m2, all of

which are residential

houses

Jintang Village of Changshou Town

There are 3 households with

16 persons, including 6 females.

Money compensation: All the demolished houses are abandoned houses, and they only need money compensation and do not need resettlement.

Replacement price of HD and subsidy and compensation: Main house: 1,184 CNY/m2 for brick-concrete structure, 904 CNY/m2 for brick-wood structure

Temporary occupation of

land

A total of 1,219.4 mu of collective land is occupied.

8 town/ships and 39 villages

There are 204 households with

855 persons, including 411

females.

Money compensation: compensation to APs.

Temporary land compensation includes four parts: land compensation for construction period, compensation for young crops (trees), land reclamation fees and subsidy for reaching the production period. Land compensation during the construction period (1 year output value per mu): 2,121 CNY/mu for paddy field, 1,658 CNY/mu for dry land, 1,060.5 CNY/mu for arbor forest and 1,326 CNY/mu for garden land;

61

Type of impacts

Scope of impact Towns/Villages AHH/APs

Policies of compensation & resettlement/rehabilitation

Compensation standards

Land reclamation fee: 11,952 CNY/mu for paddy field, 7,762 CNY/mu for dry land and 3,881 CNY/mu for arbor forest; Subsidy for reaching the production period: 2,121 CNY/mu for paddy field and 1,966 CNY/mu for dry land.

Young crops and ground attachments

Young crops, trees, other agricultural production

facilities and ancillary buildings

All towns/villages of LA impacts.

Villagers, village communities and agencies determined according to ownership

The corresponding money compensation will be paid to APs.

The compensation standard for young crops is the same as above.

Vulnerable groups

LA and HD 1 town

1 household with 5 persons (will be

updated during the RP update)

Special subsidies will be provided to families of vulnerable groups affected according to their degree of difficulty. Types of support: a) For those vulnerable groups

who need relocation and resettlement and are unable to purchase (build) houses, after verification and confirmation by the PCG and public announcement without objection, the house purchasing (building) subsidy of CNY 50,000/household will be given;

b) The vulnerable groups who meet the conditions of the minimum living allowance, after being verified and confirmed by the civil affairs agency and having no objection after being publicized, will be given the monthly minimum living allowance according to the corresponding standards;

c) Special care and help will be given to vulnerable groups in the process of LAR, such as organizing labor to assist in moving and building houses;

d) Priority will be given to the

For the vulnerable group of 1 HH identified in this RP has house and does not need to be resettled.

In the process of updating RP, all the vulnerable groups identified in the future who meet the conditions will be entitled to the subsidies and support policies.

62

Type of impacts

Scope of impact Towns/Villages AHH/APs

Policies of compensation & resettlement/rehabilitation

Compensation standards

families of vulnerable groups in the employment and job service under the same opportunities; e) The labor force of vulnerable groups will be trained in suitable skills to help solve the long-term livelihood

63

5. Resettlement and Rehabilitation Measures 101. The following income and livelihood strategy are presented below. The Pingjiang PMO will facilitate and assist in tapping various agencies to provide the necessary awareness and training, and also providing APs to access job opportunities, including jobs created during construction. 5.1. House demolition

102. After continuous design adjustment and scheme optimization, the only sub-project involving HD in the Project is Sub-project 2, which requires a total of 628.53 m2 houses to be demolished, involving 1 town/ship and 1 village, i.e., Jintang Village of Changshou Town. It affects 3 households with 16 persons, including 6 females. They are all rural houses and rural population. 103. According to the investigation and consultations, these 3 houses are all abandoned houses, and the householders have other houses. Only cash compensation is needed without house rebuilding and resettlement. 5.2. Livelihood Restoration

5.2.1. Analysis of impact on LA

104. In the Project, 170.24 mu of collective land will be permanently expropriated, affecting 64 households with 269 persons in 14 town/ships and 33 villages, including 129 females; 87.21 mu of farmland cultivated land will be permanently expropriated, involving 12 towns and 29 villages, affecting 53 households with 219 persons, including 106 females. Table 2.3-3 shows the distribution of farmland cultivated land resources and APs of villages affected by LA. 105. According to the analysis of the impact on LA in Section 2.3.2, the loss rate of farmland cultivated land of each village is between 0.01% and 1.14%, and even exceeds 10% for 189 people from 46 households. 106. According to the calculation of the annual income loss of the APs of the Project, there are 83 people from 20 households whose per capita income loss rate is more than 10%, which are distributed in Shiyan Village of Sanyang Township, Nanyuan Village, Getengping Village, Beiyuan Village of Chengguan Town, Fengshu Village and Zhengdong Village of Hongqiao Town. Among them, 90% are distributed in Sanyang Township and Chengguan Town. 107. Sanyang Township and Chengguan Town are located in the planning area of the county. The secondary and tertiary industries are developed. The labor force engaged in the secondary and tertiary industries accounts for 78.5% of the total labor force. Therefore, the farmers' dependence on land is not high.

Table 5.2-1: Distribution of APs with Income Loss Rate of More Than 10%

No. Town/ship Village

AP with income loss rate of more than 10%

AHHs No. of APs

1.

Sanyang Township

Shiyan Village 1 5

2. Nanyuan Village 10 42

3. Getengping Village 1 5

4. Chengguan Town Beiyuan Village 5 20

5. Fengshu Village 1 5

64

6. Hongqiao Town Zhengdong Village 1 2

7. Wukou Town Donggang Village 1 4

Total 4 7 20 83

5.2.2. Income restoration plan

108. In April 2020, with the participation of BWR, BNR, BARA, BEE, Planning Bureau and LAHDC, the RDA, the PMO investigated the natural resource conditions such as land within the scope of the project impacts, learned about the development and employment situation of the local secondary and tertiary industries, and convened cadres of county, town/ship, village and group as well as some AP representatives involved in the Project to discuss the income restoration program for APs. 109. After joint consultation by all parties, money compensation, agricultural development, employment in secondary and tertiary industries, participation in endowment insurance and production skill training are to be adopted for income restoration of APs. 110. A summary of income restoration measures is shown in Table 5.2-2.

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Table 5.2-2: Summary of Income Restoration Measures for APs in the Project

Township Village

APs due to LA Restoration mode

Remarks HHs Population (person) Labor (person) Money

compensation

Agricultural measures (labor

force)

Employment in secondary and

tertiary industries (labor force)

Participation in endowment insurance

AP training (labor force)

Total 33 64 269 126 269 51 75 228 126

Sanyang

Shiyan 3 17 8 √ √ √ √

Nanyuan 14 53 25 √ √ √ √

Getengping 3 15 7 √ √ √ √

Chengguan

Fengshu 2 9 4 √ √ √ √

Beiyuan 5 20 9 √ √ √ √

Sanyang 1 3 1 √ √ √ √

Huaqiao Community

1 4 2 √ √ √ √

Tianyue 1 2 1 √ √ √ √

Changshou Jintang 4 21 10 √ √ √ √

Nanjiang

Caibo 3 17 8 √ √ √ √

Changjiang 4 18 8 √ √ √ √

Jiangtian 1 5 2 √ √ √ √

Shijiang 2 9 4 √ √ √ √

Dazhou Yaozhou 2 7 3 √ √ √ √

Banqiao 2 7 3 √ √ √ √

Hongqiao Zhengdong 1 2 1 √ √ √ √

Tianyue 1 3 1 √ √ √ √

Sandun Hupei 1 4 2 √ √ √ √

Longmen Longmen √ √ √

Collectively-owned land subject to LA

Tulong 1 5 2 √ √ √ √

Changshou Huayuan 1 4 2 √ √ √ √

Yongning 1 4 2 √ √ √ √

Shiniuzhai Jiangshi 2 8 4 √ √ √ √

Anding Daqiao √ √ √ Collectively-owned

land subject to LA Fujia √ √ √

Wengjiang Taxing 1 5 2 √ √ √ √

Wushi Dongshan 1 3 1 √ √ √ √

Sushan 1 4 2 √ √ √ √

Wukou Sanlian 1 3 1 √ √ √ √

Donggang 2 8 4 √ √ √ √

Meixian Tuanshan 1 4 2 √ √ √ √

Tuozhuang 1 5 2 √ √ √ √

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Table 5.2-3: Recovery Measures for Income of APs with Income Loss Rate of More Than 10%

Town/ship Village

APs due to LA Recovery mode

HHs Population (person)

Labor (person)

Money compensation

Agricultural measures (labor force)

Employment in secondary and tertiary industries (labor force)

Participation in endowment insurance

AP training (labor force)

Total 7 20 83 35 83 17 18 71 35

Sanyang

Shiyan 1 5 2 √ √ √ √

Nanyuan 10 42 17 √ √ √ √

Getengping 1 5 2 √ √ √ √

Chengguan Fengshu 5 20 9 √ √ √ √

Beiyuan 1 5 2 √ √ √ √

Hongqiao Zhengdong 1 2 1 √ √ √ √

Wukou Donggang 1 4 2 √ √ √ √

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1) Money compensation and distribution 111. The Project will provide money compensation to all villages and groups and farmer households affected by LA. The compensation standard adopted is as follows:

• Zone I: CNY 63,840/mu for paddy field, CNY 53,200/mu for dry land, CNY 42,560/mu for garden land and forest land, and CNY 31,920/mu for unused land;

• Zone II: CNY 56,880/mu for paddy field, CNY 47,400/mu for dry land, CNY 37,920/mu for garden land and forest land, and CNY 28,440/mu for unused land;

• Compensation for young crops and trees: CNY 2,975/mu for paddy field, CNY 2,125/mu for dry land, CNY 800/mu for pond, CNY 7,225/mu for tea garden, CNY 12,000/mu for orchard, CNY 2,040/mu for arbor forest and CNY 850/mu for shrub forest.

112. The distribution plan of land compensation is determined by the meeting held within village and group on the basis of full discussion and consultation, and implemented after being approved by the town/ship people's government and publicized. Project villages and groups in the project area have drawn up village regulations and conventions, forming the traditional method of distribution of LA compensation. The distribution method of project LA compensation will follow the village regulations and conventions. After survey, according to the village regulations and agreements, Shiyan Village of Sanyang Township will withdraw and retain 2% of the land compensation fee, and Nanyuan Village of Sanyang Township and Beiyuan Village of Chengguan Town will withdraw and retain 5%, which will be used for the construction of collective public utilities. And the land compensation fee of all other villages will be distributed to households. See Table 5.2-4 for the allocation scheme of land compensation fee of each affected village. 113. After receiving money compensation according to the above distribution plan, farmer households affected by LA can take the following livelihood restoration measures such as agricultural development and non-agricultural economic activities with the assistance of the government.

2) Agricultural development measures (1) In-group land adjustment 114. The land reallocation scheme adopted per village is based on village-level consultations for the project. Laijia Group in Nanyuan Village of Sanyang Township, Lishuping Group in Jintang Village of Changshou Town, Shanghua Group in Huayuan Village, Group 10 in Yongning Village, Guantou Group in Jiangtian Village of Nanjing Town, Group 3 in Yaozhou Village of Dazhou Township, Group 9 in Banqiao Village, Jianghuan Group in Tulong Village of Longmen Town, Tanli Group in Taxing Village of Wengjiang Town, Bajie Group in Sanlian Village of Wukou Town and Chengjia Group in Tuanshan Village of Meixian Town are relatively rich in surplus land resources, with per capita cultivated land of 0.95 - 1.5 mu. Through the joint consultation between the village groups and the APs, it is proposed to adopt the method of cultivated land adjustment within the groups, and reallocate and adjust the land according to per capita land area after LA, so as to carry out reallocation of village land for the APs. 115. The land reallocation involves 111 people from 29 households, including 42 people from 10 households whose income loss rate exceeds 10%.

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Table 5.2-4: Land Readjustment Scheme and Allocation Scheme of Land Compensation Fee

Town/ship Village Group Allocation scheme of land compensation fee and land readjustment

resettlement scheme

Getengping Village

Groups 8, 9 and 10

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Shiyan Village

Zhuzhu, Hejin, Xinwu,

Chuanwu, Baiwei

Directly distribute the land compensation and young crops fees to the affected household in which 2% are withdrawn and retained by village collective for public affairs in the village, without land readjustment.

Nanyuan Village

Groups in Laijia Village

The land compensation fee is evenly distributed according to the household registered population in the group, and the village collective reserves 5% for the public affairs in the village. In addition, the land readjustment within the group is carried out. The young crops fee belongs to the landless households.

Chengguan Town

Huaqiao Community

Suburban service station

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Beiyuan Village

Shuishan and Shoujia Groups

Directly distribute the land compensation and young crops fees to the affected household in which 5% are withdrawn and retained by village collective for public affairs in the village, without land readjustment.

Fengshu Village

Maxi Group Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Sanyang Village

Sanyang Group

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Tianyue Village

Group 9 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Changshou Town

Jintang Village

Lishuping Group

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Nanjiang Town

Caibo Village

Daxingping Group

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Changjiang Village

Zhangjiatang Group

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Dazhou Town

Yaozhou Village

Group 3

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment within the group is carried out. The young crops fee belongs to the affected households.

Banqiao Village

Group 9

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment

within the group is carried out. The young crops fee belongs to the affected households.

Hongqiao Town

Zhengdong Village

Group 8 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Tianyue Village

Group 5 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Sandun Township

Hupei Village

Group 8 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Longmen Town

Longmen Village

Group 8 The land compensation fee is owned by the group collective and used for public affairs.

Tulong Village

Jianghuan Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment within the group is carried out. The young crops fee belongs to the affected households.

Changshou Town

Huayuan Village

Shanghua Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment within the group is carried out. The young crops fee belongs to the affected households.

Tingyou Area, Group 7

The land compensation fee is owned by the village collective and used for public affairs.

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Town/ship Village Group Allocation scheme of land compensation fee and land readjustment

resettlement scheme

Yongning Village

Yangsi Area, Yongning

Village Group 10

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment within the group is carried out. The young crops fee belongs to the affected households.

Nanjiang Town

Changjiang Village

Zuitou Group Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Jiangtian Village

Guantou Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land adjustment within the group is carried out. The young crops fee belongs to the affected households.

Shijiang Village

Shangxu Group

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Shiniuzhai Town

Jiangshi Village

Youpu Group Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Anding Town

Daqiao Village

Daqiao Group The land compensation fee is owned by the group collective and used for public affairs (collective owned land).

Fujia Village Haijia Group The land compensation fee is owned by the group collective and used for public affairs (collective owned land).

Wengjiang Town

Taxing Village

Tanli Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land readjustment within the group is carried out. The young crops fee belongs to the affected households.

Wushi Town

Dongshan Village

Groups 3 and 13

Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Lishan Village

Group 4 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Wukou Town

Sanlian Village

Bajie Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land readjustment within the group is carried out. The young crops fee belongs to the affected households.

Donggang Village

Shuikou Group Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

Meixian Town

Tuanshan Village

Chengjia Group

The land compensation fee is evenly distributed according to the household registered population in the group, and the land readjustment within the group is carried out. The young crops fee belongs to the affected households.

Tuozhuang Village

Group 9 Directly distribute the land compensation and young crops fees to the affected household, without land readjustment.

(2) Improvement of land productivity 116. The Project will improve land productivity, promote agricultural economic development and increase farmers' income through the following construction contents.

• Subproject 1 will effectively protect farmland on both sides of the river from flood scourge, significantly reduce losses caused by flood scourge, improve land productivity and promote agricultural economic development by building flood and waterlogging control projects along the trunk stream of Miluo River and improving flood and waterlogging control standards along the river;

• Through the pollution treatment of livestock farm and centralized collection and treatment of rural domestic sewage, the impact and damage of pollutants on the soil environment can be effectively reduced, the land quality can be improved, and the land productivity can be improved;

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• Through the promotion of eco-farming demonstration, the implementation of soil testing and formulated fertilization and green pest control projects will help improve the land and crop yield, promote the sustainable development of relevant agriculture in Pingjiang County, improve the quality and market competitiveness of crops, promote the development of regional economy and increase farmers' income;

• The implementation of eco-farming demonstration subproject will promote the development of rural LURT in Pingjiang County, encourage the development of scale management and characteristic development, improve land productivity, improve the quality and market competitiveness of crops, and increase farmers' income.

3) Non-agricultural job opportunity

117. Through the interview and investigation of resettlement agency and relevant villagers’ committees in the affected town/ships, it is known that Chengguan Town and Sanyang Township are rich in secondary and tertiary industrial resources, such as Siqian Industrial Park, Tianyue New Area Industrial Park and Commercial Street in Chengguan Town, as well as Pingjiang E-commerce Industrial Park, Tianyue Logistics Park and Yihuacheng in Sanyang Township, which can provide many employment opportunities for APs due to LA. 118. In addition, the Project can provide a certain No. of temporary employment opportunities during the construction and a certain No. of operation and management posts during the operation phase of the Project for LLF. See Table 5.2-5 for the non-agricultural employment scheme for LLFs. A total of 158 people from 35 households in 22 villages of 11 towns are employed, including 41 people from 20 households with income loss rate of more than 10%.

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Table 5.2-5: List of Non-agricultural Employment for LLF

Types Description Total employment opportunities Income Potential APs

Enterprise workers

Siqian Industrial Park in Chengguan Town, Tianyue New Area Industrial Park, Pingjiang E-commerce Industrial Park, Tianyue Logistics Park and Yihuacheng in Sanyang Township can provide a large No. of job opportunities for local people.

More than 2,000 jobs per year More than CNY 3,000 per month

35 households with 158 persons,

including 75 laborers, in 11

townships and 22 villages

Employment in projects

A large No. of construction personnel are required during the period of the comprehensive water environment improvement along the main stream section of the Miluo River, the Phase I component of urban and rural rainwater and sewage diversion and reconstruction, the rural domestic sewage treatment component, the integrated component of safe water supply, the construction of eco-farming demonstration sites, the construction of wetland protection and restoration component of Huangjin River National Wetland Park

According to the calculation, the project construction can provide 4,500 job opportunities for 14 town/ships affected by land acquisition, including Chengguan Town, Sanyang Township, Hongqiao Town, Sandun Township, Longmen Town, Changshou Town, Nanjiang Town, Shiniuzhai Town, Anding Town, Wengjiang Town, Wushi Town, Wukou Town and Meixian Town

More than CNY 150 per day

Some management and technical personnel are required during the comprehensive water environment improvement along the main stream section of the Miluo River, the Phase I component of urban and rural rainwater and sewage diversion and reconstruction, the rural domestic sewage treatment component, the integrated component of safe water supply, the construction of wetland protection and restoration component of Huangjin River National Wetland Park

According to the calculation of the DI, 419 persons of management, engineering and others are needed in the operation period.

More than CNY 4,000 per month

Entrepreneurship in business

industry

The commercial street, new buildings and other places in Pingjiang County can provide some entrepreneurial opportunities.

Supermarkets, clothing stores and catering stores can be set up

CNY 60,000-100,000 per year

Tourism

Pingjiang County is a large tourist destination. After the completion, the project will further improve the living environment of Pingjiang County and promote the development of tourism industry there.

The demand for tour guides, drivers, catering and other tourism service

industries is increasing. Over CNY 50,000 per year

Total

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4) Endowment insurance for land loss farmers (LLF) 119. In order to further improve the endowment insurance policy of the LLF and safeguard their legitimate rights and interests, PCG will include the LLF into the current endowment insurance system, arrange the endowment insurance fees in full amount, and implement the common burden of the government, collectives and individuals, so as to ensure that the living standard of the LLF will not be reduced due to the land acquisition and guarantee their long-term livelihood. Adhere to the working principles that the endowment insurance fees of LLF are paid before LA, like “LA after land protection”, “those who use the land are responsible for it” and “the land will be guaranteed to the full extent”. If the endowment insurance fees of LLF are not paid in accordance with the provisions, the application for land use approval and land license shall not be accepted. 120. There are 228 persons eligible for endowment insurance in the Project, among which 71 people have lost more than 10% of their income due to LA.

5) AP training 121. The PMO and local government will carry out production skills training for the LLF to adapt to the new production and living environment. See Section 5.6 for details. (3) Post-LAR living standard of APs 122. It can be seen from the socio-economic survey of the APs in the project area (see Table 3.2-5 for income and expenditure statistics) that the main income sources of the villagers in the project area are working income and operational income, accounting for 66.98% and 14.82% respectively, while the income from planting and breeding industry accounts for only 7.73% and 2.06% respectively. 123. It can be seen that LA mainly affects the agricultural income. It can be seen that LA has insignificant impact on the total household income of the majority of LLF. 124. It can be predicted through compensation for LA and relevant measures, APs can directly obtain cash income, which can be used to improve productivity, expand operation and increase operational income:

• through land readjustment, part of the cultivated land can be recovered by APs to minimize agricultural losses;

• through project and secondary and tertiary industries in the project area, more employment and job opportunities can be provided, and wage income and working income can be increased;

• through the participation in endowment insurance, APs can get long-term life security. 5.3. Relocation and reconstruction planning of special facilities 125. The special facilities affected mainly include: transportation facilities, power transmission and transformation facilities, communication facilities, water conservancy and hydropower facilities and other facilities. The compensation fee will be paid to their responsible agencies at replacement price and restored them. 5.4. Help and support measures for vulnerable groups

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(1) Vulnerable groups affected 126. According to the survey, the identified 1 household with 5 persons is poverty-stricken within the scope of the project impacts. They live in Lishuping Group of Jintang Village and become poor due to illness. Affected by the Project, the houses will be demolished, which is abandoned house. As there is other house, only compensation is needed without resettlement. 127. In the process of updating the RP, more detailed identification of affected vulnerable households will be carried out. The updated RP will further investigate and identify the vulnerable groups such as the people with serious disease, disabled people and the poor. Any person that is identified and to be identified as vulnerable groups will be given special help and support as follows. During the implementation period, supports for vulnerable groups will be monitored and reported to ADB and Pingjiang PMO to ensure that their quality of life is steadily improved. (2) Help and support measures for vulnerable groups

f) For those vulnerable groups who need relocation and resettlement and are unable to purchase (build) houses, after verification and confirmation by the PCG and public announcement without objection, the house purchasing (building) subsidy of CNY 50,000/household will be given;

g) The vulnerable groups who meet the conditions of the minimum living allowance, after being verified and confirmed by the civil affairs agency and having no objection after being publicized, will be given the monthly minimum living allowance according to the corresponding standards;

h) Special care and help will be given to vulnerable groups in the process of LAR, such as organizing labor to assist in moving and building houses;

i) Priority will be given to the families of vulnerable groups in the employment and job service under the same opportunities;

j) The labor force of vulnerable groups will be trained in suitable skills to help solve the long-term livelihood.

5.5. Measures for women development (1) Female affected 128. The Project will permanently affect 129 women, all of them are rural women, including 59 labor force. (2) Measures for women development

1) Provide employment opportunities for women during the construction and operation of the Project.

129. According to the calculation, the project construction can provide more than 5,000 job opportunities for 14 town/ships affected by land acquisition, including Chengguan Town, Sanyang Township, Hongqiao Town, Sandun Township, Longmen Town, Changshou Town, Nanjiang Town, Shiniuzhai Town, Anding Town, Wengjiang Town, Wushi Town, Wukou Town and Meixian Town, including 35% jobs for women.

2) Provide employment opportunities in secondary and tertiary industries

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130. Siqian Industrial Park in Chengguan Town, Tianyue New Area Industrial Park, Pingjiang E-commerce Industrial Park, Tianyue Logistics Park and Yihuacheng in Sanyang Township can provide more than 2,000 jobs for the project area every year, and about 500 jobs are suitable for women. 131. The commercial street, new buildings and other places in Pingjiang County can provide some business opportunities for the project area, and can be used as markets, clothing stores, catering stores, etc., which are particularly suitable for women. 132. After the completion, the Project will further improve the living environment of Pingjiang County and promote the development of tourism industry there. The demand for tour guides, drivers, catering, tea art and other tourism service industries is increasing. Especially in tour guides, catering, tea art and other industries, women have great opportunities to participate.

3) Provide training in vocational skills 133. The civil affairs agency and other agencies of Pingjiang County will regularly hold training for villagers, and the Project will also provide the training in vocational skills for landless farmers. Some special training for women can be held, such as tea artists, domestic service, electric sewing workers, etc., and training opportunities are planned to be offered to 59 women. In addition, women and men can participate in the training in rural travel attendants, fruit (Citrus) cultivation and management technology, vegetable production technology, poultry breeding and so on. The priority of skills training opportunities will be given to women.

4) Help to apply for guaranteed micro-loans 134. Women have the same rights as men to apply for guaranteed micro-loans, which will promote women's employment and entrepreneurship, and increase women's entrepreneurial employment opportunities. If women need to build a new agricultural processing plant or restaurant, this measure will be able to provide financial support for them. Guaranteed micro-loan is an important measure for the government to support special groups, such as landless farmers, unemployed population, college graduates and so on. If women have the will and ability to start agricultural or non-agricultural projects, this measure will help them get a better life and create more income opportunities for other rural residents. 135. The Postal Savings Bank at Pingjiang County has formulated a special preferential loan policy for women, providing an interest free loan of CNY 80,000 for women who are ready to start a business. The process of women's application for guaranteed micro-loan: the loan will be carried out in accordance with the procedures of individual voluntary application. The women applying for loan shall provide the business license, recommendation of village (group) and community, review of grass-root credit unions, review of township and sub-district, preliminary review and recommendation of municipal women's federation, review of labor and endowment insurance agencies, guarantee commitment of guarantee agencies, and review and lending of administering banks. 5.6. Skill training 136. The APs need to master more agricultural production technology and livelihood skills of secondary and tertiary industries to adapt to the new production and living environment. This requires training in production skills and specialized employment.

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137. According to the analysis of the construction component and employment environment in the project area, and in combination with the livelihood restoration plan for the APs in the Project, the training programs for APs include tea processing, oil-tea camellia processing, promotion training in new industry and new technology skills (electrician, welding, mechanical operation, automobile driving, metal smelting, etc.) and other skills training (housekeeping service, hotel management, tourism service, handicraft processing, appliance repair, computer maintenance, etc.). Table 5.6-1 shows the training scheme for the LLF. 5.7. Temporary land occupation

138. The temporary land occupation will be within 6 months. The APs will be informed before commencement of TLO and civil works. If the standing crops could not be harvested based on construction schedule, one years’ replacement value (although the duration will be no more than 6 months) for the crops will be compensated to the APs, following the standards in table 4.5-3.

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Table 5.6-1: Training Program of Vocational Skills

No. Trainee Type of training Training implementing

agency Training period

Training funds (CNY

10,000)

Fund source

1 There are 40 labor force affected by LA in

Shiyan, Nanyuan and Getengping of Sanyang Township

New skills improvement in new industries such as electrician, welding, mechanical

operation, automobile driving, metal smelting and other skills such as

housekeeping service, hotel management, tourism service, handicraft processing,

appliance repair, computer maintenance, etc.

Implementation by Civil Affairs Bureau of Pingjiang County or

Sanyang Township Government and other

agencies that are entrusted by the owner

2021-2022 3 Resettlement

funds

2

There are 18 labor force affected by LA in Beiyuan Village, Fengshu Village, Huaqiao

Community, Sanyang Village, Tianyue Village of Chengguan Town

New skills improvement in new industries such as electrician, welding, mechanical

operation, automobile driving, metal smelting and other skills such as

housekeeping service, hotel management, tourism service, handicraft processing,

appliance repair, computer maintenance, etc.

Implementation by Civil Affairs Bureau of Pingjiang County or Chengguan Town Government

and other agencies that are entrusted by the owner

2021-2022 1.1 Resettlement

funds

3

68 labors in Huayuan Village, Yongning Village and Jintang Village of Changshou Town, Caibai Village, Changjiang Village, Shijiang Village and

Jiangtian Village of Nanjiang Town, Yaozhou Village and Banqiao Village of Dazhou Town,

Zhengdong Village and Tianyue Village of Hongqiao Town, Hupei Village of Sandun

Township, the Longmen Village and Tulong Village of Longmen Town, Jiangshi Village of Shiniuzhai Town, Taxing Village of Wengjiang Town, Dongshan Village and Lishan Village of

Wushi Town, Sanlian Village and Xijiang Village of Wukou Town, Tuanshan Village and

Tuozhuang Village of Meixian Town and others that are affected by LA.

Tea processing, oil-tea camellia processing and organic farming techniques

Implementation by BARA or Civil Affairs Bureau of Pingjiang County and other agencies that

are entrusted by the owner

2021-2022 4.5 Resettlement

funds

4 There are 59 female labor force affected by LA Tourism service, tea artist, handicraft

processing, housekeeping service

Implementation by Civil Affairs Bureau of Pingjiang County or women's federation and other agencies that are entrusted by

the owner

2021-2022 4 Resettlement

funds

Total 12.6

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6. Instituations and Responsibilities 6.1. RP Implementation and Management Agencies and responsibilities (1) Project Leading Group 139. In April 2019, PCG established a project leading group (PLG), chaired by main leaders of PCG and members are like BEE, Development and Reform Bureau, Construction Bureau, Planning Bureau, Finance Bureau, BNR, BEE, BWR, BOF, Animal Husbandry and Aquatic Product Bureau and other relevant agencies of Pingjiang County. Its main responsibilities are to organize the work of of the project and LAR, including taking charge of the policy compilation of LAR activities of the project, and organizing and coordinating the relation of LAR implementing institutions at all levels. Meetings are held to solve major problems in the LAR work and ensure the smooth progress of the project construction and LAR. (2) Project Management Office 140. Under the PLG, a Project Management Office (PMO) has been set up. Under the PMO, a resettlement safeguard department was set up, which is responsible for the daily work of resettlement implementation management, communication with ADB, PCG, PLG and other superior agencies and implementation of their requirements, decision-making and opinions of resettlement work, bidding, negotiation and liaison of the project, and full management, planning, implementation, coordination, supervision and monitoring of resettlement work:

1) Coordinate with PCG and the higher authorities to formulate the policies on LAR; 2) Entrust the DI to define the scope affected by the Project, organize the investigation on

the physical data affected by LAR, and preserve the data; 3) Apply for planning permit and construction permit of land use; 4) Be responsible for the professional training of leaders in LAR; 5) Organize and coordinate the preparation and implementation of RP; 6) Manage, allocate and supervise the use of resettlement funds; 7) Guide, coordinate and supervise the implementation activities and progress of LAR; 8) Preside over and inspect the internal monitoring activities, and prepare the progress

report of LAR; 9) Cooperate with and assist the external M&E agency for external M&E work.

(3) Land Acquisition and Housing Demolition Management Office of Pingjiang County 141. Land Acquisition and Housing Demolition Management Office of Pingjiang County (LAHDC) is the overall LA and HD compensation and resettlement implementing unit of Pingjiang County, specifically responsible for coordinating and organizing the LA and HD of the Project. Its main responsibilities are:

1) Determine the affected area of the Project together with the designer and conduct social-economic analysis;

2) Participate in the preparation and implementation of RP; 3) Hold public seminars and publicize resettlement policies; 4) Organize the measurement of land acquisition by the Project; 5) Handle all procedures related to LA and HD; 6) Evaluate the demolition of the houses and auxiliary buildings affected by the Project; 7) Be responsible for the compensation and resettlement related to LA; 8) Be responsible for the compensation and resettlement related to HD;

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9) Be responsible for the management of the files of LA and compensation and resettlement related to the HD and resettlement;

10) Assist the external M&E agency in the survey and collection of materials and other on-site activities.

(4) Township PMO 142. Township PMO led by the leaders in charge of each township (office) is mainly responsible for:

1) Participate in project survey and assist in the preparation of RP; 2) Organize public participation and publicize resettlement policies; 3) Implement, inspect, monitor and record all resettlement activities within the township; 4) Handle the procedures for the relocation and construction of AP's houses; 5) Be responsible for the payment and management of land compensation funds; 6) Supervise LA, house demolitions and accessories, reconstruction and relocation of

houses; 7) Report LA, HD and resettlement to the BNR and PMO; 8) Coordinate and deal with contradictions and problems in the work.

(5) Village (neighborhood) committees and village groups 143. The resettlement working group of the village (neighborhood) committees and the village groups are composed of the main leaders of the villagers’ committees and the village groups. Its responsibilities are:

1) Participate in the socio-economy survey and the project impact survey; 2) Organize public consultation and publicize LA and HD policies; 3) Select the resettlement site and allocate the curtilage for the relocated households; 4) Implement land reclamation, adjustment and distribution, and organize production and

development and other resettlement activities; 5) Be responsible for fund management and allocation; 6) Report the opinions and suggestions of APs to the relevant higher authorities; 7) Report the implementation progress of resettlement; 8) Provide help to the households with difficulty in HD.

6.2. Resettlement planning and design agency and responsibilities 144. In November 2019, the project implementing agency entrusted RP-DI to carry out the resettlement planning and design of the Project. Its main responsibilities include:

1) Provide technical guidance for the impact survey of LA and HD, prepare detailed survey rules and conduct technical training;

2) Assist the governments in the project area to formulate RP; 3) Prepare and update RP; 4) In the implementation stage, provide the design documents to the PMO in time, carry out

the design disclosure, assist resettlement implementing agencies to implement the resettlement and production of APs and improve and perfect the RP according to the actual situation.

6.3. Resettlement M&E and responsibilities

1) Internal Monitoring

79

145. As the project management agency, the PMO presides over and checks the internal monitoring activities, prepares the progress report on LA, HD and resettlement of the Project, and regularly reports the progress, existing problems and solution suggestions on resettlement to ADB semi-annually, so as to maintain the good functions of resettlement agencies at all levels in the process of Project implementation, coordinate the work of all parties and ensure satisfactory implementation of RP.

2) External M&E agency 146. PMO will employ a qualified third-party agency as the external M&E agency, whose main responsibilities include:

1) Consult with PMO on internal supervision & management and status of implementation of the RP;

2) Comprehensively monitor whether the LAR, LURT and corrective actions agreed in DDRs are implemented in accordance with RP, conduct sampling survey on the affected households to understand the implementation of compensation standards, resettlement progress and resettlement effect, monitor and evaluate the resettlement work and implementation effect as well as the social adaptability of the APs, especially the vulnerable groups; put forward the existing or potential problems and solution suggestions, and regularly submit M&E report to the PMO and ADB semi-annually. See Figure 6.3-1 for the network of resettlement implementing agencies.

LAHDC

AHHs

Township PMO

Village resettlement

working group

Project Leading Group

Design agency

External

resettlement

M&E agency

Pingjiang PMO

Figure 6.3-1: Block Diagram of Resettlement Agencies

6.4. Personnel and facilities of resettlement implementing agencies 147. The project resettlement implementing agencies of the Project are composed of personnel with high quality and rich working experience. Table 6.4-1 presents details of personnel conditions of resettlement implementing agencies at all levels.

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Table 6.4-1: Staff Arrangement of Resettlement Implementing Agencies at All Levels

Main resettlement implementing agencies

Total No. of resettlement staff

No. of persons at peak hours

Staff and qualifications Working period

PMO 4 6 (1 female) The person in charge has more than 5 years of project management experience, is familiar with resettlement work, and has college degree or above

July 2019 to the project completion

LAHDC 4 6 The person in charge has more than 5 years of project management experience,

is familiar with resettlement work, and has college degree or above July 2019 to the

project completion

PMO of Chengguan Town 3 (1 female) 5 (2 female) Long-term similar work experience, junior college education July 2019 to the

project completion

PMO of Sanyang Township 3 (1 female) 5 (2 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Changshou Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Nanjiang Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Shiniuzhai Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Anding Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Wengjiang Town 3 (1 female) 4 (4 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Wushi Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Wukou Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

PMO of Meixian Town 3 (1 female) 4 (1 female) Long-term similar work experience, junior college education or above July 2019 to the

project completion

RP-DI Resettlement Planning and Design Working Group

7 (3 females) 10 (3 females) Rich experience in resettlement work of World Bank financed and ADB financed projects, bachelor degree or above

July 2019 to the project completion

planning and design

Internal M&E Working Group (including PMO focal staff and

loan implementation consultants) 3 (at least 1 female) 3 (at least 2 female) Will have experience in internal M&E of World Bank financed and ADB financed

projects, junior college degree or above January 2021 to the project completion

External M&E Working Group 5 (at least 2 female) 5 (at least 2 female) Will have experience in external M&E of World Bank financed and ADB financed projects, junior college degree or above

January 2021 to the project completion

Total 53 (at least 16 females)

72 (at least 23 females)

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6.5. Measures to strengthen the capacity of agencies 148. In order to ensure the smooth implementation of the Project, with the assistance and cooperation of the ADB TrTA team and RP-DI, the PMO has formulated training plan for resettlement management, organized management staff and technical staff related to the LA and HD of the Project to participate in the training to make them understand and be familiar with relevant resettlement policies, including domestic resettlement policies and the ADB involuntary resettlement policies, and understand and master the relevant contents of LA and HD, so as to ensure the full implementation of the RP. 149. The training contents include the general situation and background of the Project, the domestic LA and HD policies and relevant laws and regulations, ADB involuntary resettlement policies, and details, management, reporting procedures, expense management, M&E, reporting, complaint handling of RP of the Project, etc. See Table 6.5-1 for details of training plan and implementation.

Training on ADB resettlement policy in PMO Training of resettlement staff from Chengguan and

Sanyang Townships

Figure 6-1: Trainings carried out on ADB resettlement policy in PMO

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Table 6.5-1: List of Training for Resettlement Implementing Agencies

No. Training agencies

Type of training Trainee Training program

Implementation Training funds

(0,000) Fund source

1 HHPDI (RP preparation

agency)

ADB involuntary resettlement policies and details on impact

survey of LA of the Project

Resettlement staff of PMO, staff of natural resources, water conservancy, forestry,

agriculture, housing construction, environmental protection and other

departments related to LA of the Project, resettlement supervisors of Sanyang,

Chengguang and other town/ships related to LA of the Project

2019

Two training sessions were held on September 3 and October 8, 2019, with resource persons Zhao Gengqiang and Tan Lu (RP-DI)

Resettlement design cost

2

ADB technical assistance

resettlement experts

ADB involuntary resettlement policies

Project staff of the Pingjiang PMO, BNR, BWR, BOF, BARA, HRUDB, and BEE

2019

A training was held on December 19, 2019, with the resource person Dong Ming (technical assistance expert)

ADB TA

3 PMO

Study and inspect the resettlement

experience of ADB project nearby

Land acquisition and demolition management staff 2020

2 Resettlement

funds

4 PMO ADB resettlement

policies Resettlement staff 2020-2021

0.5 Resettlement funds

5 PMO Latest changes in the national policy of LA

and HD Resettlement staff 2020-2021

0.5 Resettlement funds

6 PMO

Learning experience of resettlement fund management and

other projects

Land acquisition and demolition management staff 2020-2021

0.5 Resettlement

funds

7

External resettlement monitoring

agency

Procedures and policies for resettlement of ADB-

financed project Resettlement staff 2020-2021

M&E expenses

8

External resettlement monitoring

agency

Resettlement policies and practices

Resettlement staff 2020-2021

M&E expenses

Total

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7. Public Participation, Consultation and Information Disclosure 7.1 Public participation and consultation undertaken during RP preparation

7.1.1. Approaches and measures 150. Before social-economic survey and impact survey, RP-DI prepared survey details on the Project, and listened to the opinions of the construction agency, local government and relevant departments on the survey content, methods and requirements. The PMO, local government and relevant departments organized joint survey teams to work together. 151. During the survey, APs of township, village and group participated in survey to learn about the project necessity, project effect, project influence, impact survey and compensation principles and RP, etc. 152. The RP-DI and PMO staff consulted with resettlement agencies and APs representatives of counties, townships (towns) and villages at all levels to listen to opinions, requirements and existing problems, discuss resettlement programs, and select resettlement areas.

7.1.2. Public participation and consultation during RP preparation 153. In the stages of preparation and compilation of RP, all levels of local government, relevant agencies and APs took part in the following items of work:

1) From September to October 2019, during the impact survey for LA and HD of the Project, Pingjiang PMO participated in the survey and carried out extensive publicity on the project construction and ADB policies;

2) From March to June 2020, Pingjiang PMO, BNR, BWR, BOF, RP-DI, related township people's governments, villages (residents’ committee), village group and AP representatives all participated in the survey and review of physical indicators, and carried out resettlement planning work according to the survey results. The investigators went deep into the town/ships, villages and village groups, and solicited the opinions and suggestions of APs on project construction and resettlement through forums participated by cadres of village group and AP representatives or interviews, including their choice of resettlement location, production rehabilitation measures, HD and compensation policies for LA;

3) From April to June 2020, according to the preliminary survey results of the impact of LA and HD, the PMO, together with the project design agency and the RP-DI, organized and held special LA consultation meetings for many times. LAHDC, BNR, BWR, BOF, Housing Construction Bureau, BEE and surveying and mapping company attended the meetings for joint discussions and consultation. The design and LA and HD scheme have been optimized for many times, with remarkable results to minimize LAR impacts.

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Table 7.1-1: Conducted Key Information Disclosure and Public Consultation Activities

Time Place Organizer Participants No. of

participants Contents

Participation results and Feedback from APs

Actions and measures

September -October 2019

PMO, all township people's governments and project site

PMO

PMO, RP-DI, BNR, BWR, BOF, HRUDB, BEE, and BARA, and related township people's government, villagers’ committees, villager groups and APs

More than 200 (more than 80 female).

Preliminary impact survey and policy publicity of the Project

The preliminary survey results of LA and HD were obtained, and county, town/ships and villages had a preliminary knowledge and understanding of ADB policies.

Summarize the initial survey indicators, make a preliminary analysis of the impact of LA, and estimate the resettlement investment.

March - May 2019

All township people's governments, villagers’ committees and project site

PMO

PMO, RP-DI, BNR, BWR, BOF, HRUDB, BEE, and BARA, and related township people's government, villagers’ committees, villager groups and APs

More than 350 (more than 120 female).

Detailed impact survey of the Project, policy publicity, RP discussion, social-economic survey, public participation survey, and resettlement willingness survey

Results of preliminary measurement survey (PMS) and social-economic survey results, and survey opinions of APs' participation were obtained.

prepare the preliminary resettlement measures for the APs according to APs’ socio-economic status and their willingness to make sure they can get reasonable compensation and restore their livelihoods.

2020.6.19 Shiyan Village of Sanyang Township

PMO

PMO, technical assistance resettlement experts, RP-DI, villagers’ committee of Shiyan Village, APs

19 (6 female).

Solicit the opinions and suggestions on the project construction and LA compensation and resettlement on site, and issue the public participation questionnaire

100% of the APs, including those temporarily affected, expressed support for the project construction; most of them expressed their understanding of the LA policy; most of them thought that the LA had little or modest impact on their life; most of them thought that both land adjustment and cash compensation are accepted, and if they had any demands, they would go to the villagers’ committee for supporting or resolution .AHs asked that they be informed in advance.

Improve the resettlement measures, including land readjustment etc, fully respect the wishes of APs, and make further rational planning. AHs to be informed in advance on project schedule

2020.6.22

Beiyuan Village of Chengguan Town

PMO PMO, villagers’ committee of Beiyuan Village, APs

15 (4 female).

Solicit the opinions and suggestions on the project construction and LA compensation and resettlement on site, and issue the public participation questionnaire

100% of the APs, including those temporarily affected expressed support for the project construction; most of them expressed their understanding of the LA policy; most of them thought that the LA had a modest impact on their life; most of them thought that both land adjustment and cash compensation are accepted, and if they had any demands, they would go to the villagers’ committee for supporting or resolution. AHs asked that they be informed in advance.

2020.6.23

Water Supply Company of Pingjiang County

PMO

Village cadres and AP representatives from 24 town/ships in Pingjiang County

34 (14 female).

Conduct project introduction and policy publicity, issue questionnaire, and solicit the opinions and suggestions on the project construction and LA compensation and

100% of the APs expressed support for the project construction; most of them expressed their understanding of the LA policy; most of them thought that the LA had some impact on their life; most of them were willing to land adjustment, and if they had any demands, they would go to the villagers’ committee and township people's government for supporting

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Time Place Organizer Participants No. of

participants Contents

Participation results and Feedback from APs

Actions and measures

resettlement measures or resolution.

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Table 7.1-2: Key Activities on Avoiding and Mitigating the Impact of Resettlement Participated by and Discussed with the Public

Time Place Organizer Participants No. of

participants Contents Participation results Actions and measures

October 2019-March 2020

PMO, project sites

PMO

PMO, project planning and design agency, RP-DI, BNR, BWR, BOF, BEE and township people's governments from the area affected by the Project

More than 100 people

Organize site survey and discuss design scheme for many times, and minimize the scope of LA

Form the preliminary design and LA scheme

Carry out the impact survey and social-economic survey for the APs according to the LA scheme, and conduct indicator summary and investment estimation

April 2020

PMO, project sites

PMO

PMO, project planning and design agency, RP-DI, BNR, BWR, BOF, BEE and township people's governments from the area affected by the Project

More than 50 people

Conduct detailed site survey, refine the design scheme, and avoid or reduce the impact of LA and HD as much as possible

Determine the design scheme and delimit the boundary line of LA

Summarize the indicators after survey and prepare the RP

2020.4.20

Project sites at Chengguan and Sanyang Townships

Design agency

PMO, RP-DI, Territory Offices and Resettlement Agencies of Chengguan and Sanyang Townships

14 people

Verify the indicators of LA and HD on site and avoid HD as much as possible

Reduce HD

Finalize the indicators and investment after examination according to the reduction results

2020.4.23 PMO PMO PMO, RP-DI, three design agencies in charge of urban area

12 people

Discuss the optimization scheme and reduce the boundary line of LA

Reduce the scope of four embankment sections in urban area

Finalize the indicators and investment after examination according to the scope of reduced boundary line

2020.4.29 PMO PMO

PMO, project design agency, RP-DI, surveying and mapping agency, LAHDC, BWR, BNR, Township Territory Office

23 people

Go into in-depth discussion on measures to further reduce the impact of resettlement

Cut the scope of all affected areas after examination

Finalize the indicators and investment after examination according to the reduction results

2020.6.21 BNR PMO

PMO, BNR, technical assistance resettlement experts, project DI, RP-DI, surveying and mapping agency, LAHDC, BWR, BOF, BEE, Water Supply Company, BARA, Housing Construction Bureau

28 people

Further reduce the scope of boundary line in combination with land pre-examination

Cut the scope of LA in urban area along the main stream of the Miluo River after examination

Finalize the indicators and investment after examination according to the reduction results

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Resettlement consultation site of Shiyan Village of Sanyang Township

Resettlement consultation site of Beiyuan Village of Chengguan Town

Public participation site from 24 town/ships Discussion site of optimization of urban area

scheme

Public participation site from Nanjiang Town Discussion site of LA scope reduction scheme

7.2 Public participation and consultation plan during RP implementation 154. With the continuous progress of project preparation and implementation, the PCG, PMO, BNR, LAHDC, and M&E teams will also organize further information disclosure and public participation consultation. Table 7.2-1 shows the schedule of the next consultation between resettlement implementing agencies at all levels and APs.

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Table 7.2-1: Schedule for Consultation with APs during Project Implementation

Consultation contents Schedule agency and staff to participate

Issue resettlement information booklet August 2020 PMO, BNR, Township PMOs, affected villages and groups and APs

Verify detailed survey results July - December

2020

PMO, LAHDC, BNR, Township PMO, Township Territory Office, affected villages and groups and APs

Issue LA announcement, and make a public announcement of the scope and purpose of acquisition, land status, resettlement methods and endowment insurance in local townships, villages and village group for at least 30 days, so as to listen to the opinions of the rural collective economic organizations and their members, villagers’ committees and other interested parties.

November - December 2020

PMO, LAHDC, BNR, Township PMO, Township Territory Office, affected villages and groups and APs

Public participation for RP and income recovery measures

2020.6-2020.12 PMO, LAHDC, BNR, design agencies, Township PMO, and affected villages and groups

Problems in process of project implementation

Project implementation

process

PMO, LAHDC, Township PMO, Township Territory Office, and affected villages and groups

Collect suggestions and complaints Project

implementation process

PMO, LAHDC, Township PMOs and monitoring departments

7.3 Women participation 155. From the start of the project, a great effort has been made on the protection of rights and interests of women by the EA/IA of the Project and local governments. Affected women and families where women are the householder have played important role in the process of preparation of RP. 156. In the affected area, women’s rights, interests and status are the same as that of men. Women play an important role in economic development activities and housework. Especially in the rural areas, most women stay at home, more men go into the city to find jobs. So besides family responsibility women play an important role in tilling and non-farm work. So in the area affected by the project, women will pay more attention to the project than women, they not only take part in every stage of work of resettlement but also give fineness to the direction and method of resettlement. 157. During social-economic survey and impact survey, all women leaders of villages are invited to participate in surveying work group to publicize and communicate with affected women. In the small group of APs, more than 50% is female, besides they support the project actively, they showed that they pay closer attention to the correctness of physical indices, rationality of compensation standard and whether the compensation fee can reach in time etc. 158. In RP preparation stage, the PMO/RP-DI actively invited women APs representatives to jointly consult and fully listened to their opinions, requirements and existing problems regarding

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the resettlement and housing demolition. The consultation was of a positive significance for relieving women's worries about the influence on their livelihood sources and traditional production modes and ensuring that women can obtain the same benefits in the Project. 159. At the same time, the IAs of the Project at all levels is provided with at least 1 female cadre respectively. Female is also encouraged to participate in the resettlement implementation. The IAs and local government attach great importance to female participation during the project implementation, especially livelihood recovery. The Project gives priority to female regarding construction employment in order to provide more employment opportunities for female. 7.4 Information disclosure 160. In order to make all APs fully understand resettlement policies and implementation details of the Project in a timely manner and make the resettlement really open, fair and transparent, the PMO will take the following measures to ensure the openness of resettlement policies (Table 7.4-1):

• During implementation of the Project, the PCG publicly release the information on the construction of the Project through TV, announcement and other forms;

• before resettlement implementation, PMO distribute the Resettlement Information Booklet to each AHHs;

• After the RP is finalized, PMO will distribute RP of the Project in public libraries or other public places in affected areas. All APs can search the information at any time;

• After RP is approved by ADB and the PCG, PMO will distribute the Resettlement Information Booklet to APs. RP will also be published on the website of ADB in accordance with ADB SPS after the approval by the PCG and ADB.

Table 7.4-1: Information Disclosure Plan

Time Place Disclosure Way Disclosed contents Agency

responsible

2020-2021

Pingjiang County TV, newspapers and other media

Construction information of Project PCG

July-Aug 2020

RP disclosure on local government/ADB

websites Public Resettlement Plan PMO/ADB

July-Aug 2020

Town/ships, villages and groups affected by

LA and relocated households

Site distribution Resettlement Information Booklet PMO

October 2020

Town/ships, villages and groups affected by

LA and relocated households

Proposed LA announcement (at

least 30 days)

Purpose, location, compensation standard and resettlement mode

(including endowment insurance objects of LLFs, items, standards and financing methods) of LA, the way to applying for

hearing and contact information.

BNR

January 2021

Official website of government Website Approval of LA plan BNR

February 2021

Town/ships, villages and groups affected by

LA and relocated households

LA announcement

LA approval authority, approval document No., approved purpose,

approval time, owner, location, land type, area and compensation standard of acquired land, resettlement mode of agricultural personnel, time limit and

place of registration for compensation for LA.

BNR

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8. Grievance Redress Mechanism 161. Since public participation is encouraged during the preparation and implementation of this RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and LA, a transparent and effective grievance redress mechanism has been established. The basic grievance redress mechanism is as follows:

1) If any right of any AP is infringed on in any aspect of LA and resettlement, he/she may report this to the township government, which shall record such appeal and solve it together with the village committee or the AP within two weeks.

2) If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Pingjiang PMO within one month after receiving such disposition, which shall make a disposition within two weeks.

3) If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Pingjiang Municipal Arbitration Commission within one month after receiving such disposition, which shall make a disposition within two weeks.

4) If the appellant is still dissatisfied with the arbitration award, he/she may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC.

162. At any stage, an AP may bring a suit in a civil court directly if he/she is dissatisfied with the grievance redress procedure or disposition. 163. Any AP may also file an appeal to ADB in accordance with ADB’s Accountability Mechanism (AM). Before submitting a complaint to the AM, affected people should make a good faith effort to solve their problems by working with the concerned township government, PMO, and ADB Project Team. Only after doing that, and if they are still dissatisfied, should they approach the AM. 164. All grievances, oral or written, will be reported to ADB in internal and external resettlement monitoring reports. 165. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media. 166. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to the Pingjiang PMO in writing on a monthly basis. 167. The Pingjiang PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose.

Table 8-1: Registration Form of Grievances and Appeals

Accepting agency:

Time:

Location:

Appellant Appeal Expected solution Proposed solution Actual handling

Appellant (signature) Recorder (signature)

Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal

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process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time.

Table 8-2: Agencies and Staff Accepting Grievances and Appeals from APs Agency Contact Address Tel.

Pingjiang PMO Li Qiang Pingjiang PMO 13974000933

LAHDC Fang Jincheng LAHDC 13786004559

PMO of Chengguan Town

Yu Niya People's Government of Chengguan

Town 13974009616

PMO of Sanyang Township

Li Dachun People's Government of Sanyang

Township 15873069888

PMO of Anding Town Ren Liangyu People's Government of Anding Town 15274009277

PMO of Changshou Town

Fang Renliang People's Government of Changshou

Town 13469276866

PMO of Longmen Town Chen Cheng People's Government of Longmen Town 15200203688

PMO of Shiniuzhai Town Liao Chaoqun Shiniuzhai Town People's Government 18478318432

PMO of Hongqiao Town Yu Fuhai People's Government of Hongqiao Town 13787983104

PMO of Nanjiang Town Zhang Biaojian Government of Nanjiang Town 13874007076

PMO of Sandun Township

Li Xianjue People's Government of Sandun

Township 13787845638

PMO of Dazhou Town Lin Zeyun People's Government of Dazhou Town 17773073565

PMO of Meixian Town Zhou Zhenyou People's Government of Meixian Town 18273024505

PMO of Wengjiang Town

Shan Suimi Government of Wengjiang Town 15973044832

PMO of Wukou Town Jiang Jianqing People's Government of Wukou Town 18274051919

PMO of Wushi Town Xiang Lingzhi People's Government of Wushi Town 18390189555

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9. Resettlement M&E 168. According to RP, resettlement M&E is to organize investigations, inspections, supervisions and evaluations continuously for the resettlement implementation. Resettlement monitoring is composed of internal monitoring and external monitoring. 9.1. Internal monitoring

9.1.1. Purpose of internal monitoring

169. The purpose of internal monitoring is to ensure the implementation of responsibilities in the process of resettlement and achieve the goal of restoring the living standards of APs.

9.1.2. Internal monitoring procedures

170. During the implementation of RP, the resettlement implementation agencies (LAHDC and township PMOs) report to the Pingjiang PMO on a monthly basis, and the Pingjiang PMO submits the internal monitoring report together with the progress reports to ADB every six months.

9.1.3. Internal monitoring contents

171. Internal monitoring will cover the following:

1) Organization structuring, division of work and capacity building; 2) Actual implementation of LA and HD policies and compensation standards; 3) Implementation schedule and progress of LA and HD and resettlement activities; 4) Livelihood restoration and APs living standards (including vulnerable groups and gender

measures) 5) Resettlement budget and its implementation;; 6) Complaints, grievances, public participation, consultation, information disclosure and

external monitoring; 7) Handling of relevant issues in the memorandum of ADB’s review missions; and 8) Existing problems and resolutions 9) The implementation situation of LURT 10) Corrective actions agreed in DDRs

9.1.4. Internal monitoring agencies and their responsibilities

172. The internal monitoring agency of the Project is the Pingjiang PMO, under which is the Resettlement and Endowment Insurance Department (hereinafter referred to as the Safeguard Department). The Safeguard Department has 4 staff in the regular period and 6 staff in the peak period. 173. The internal monitoring responsibilities include:

1) Cooperate with the resettlement implementing agencies, competent departments and external monitoring agencies;

2) Formulate corresponding forms according to the monitoring contents, and require the implementing agencies (LAHDC and township PMOs) to fill in and submit to the Pingjiang PMO every month;

3) Supervise the personnel to go to the site for inspection every month, conduct random inspection, and participate in the completion acceptance of resettlement project;

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4) Supervise the implementation of the annual work plan and the use of funds, and organize the annual fund audit together with the superior department in charge;

5) Submit progress report to ADB every six months. 9.2. External monitoring 174. The objectives of external monitoring are:

• Verifying resettlement implementation

• Evaluating the effectiveness, impacts and sustainability of LA, compensation and resettlement activities;

• Determining if such activities meet the safeguard policies and requirements in the RP; and

• Draw on experience and lessons for future safeguard policy making and project planning. • Identify issues or potential issues and recommend time-bound recommendations to allow

the Pingjiang PMO and relevant agencies to take action or improve resettlement implementation

• The implementation situation of LURT

• Corrective actions agreed in DDRs

• 175. Pingjiang PMO will engage a qualified external monitor experienced in ADB-financed projects. Monitoring will be carried out on a semi-annual basis. The external monitor will submit semi-annual monitoring reports to ADB and Pingjiang PMO. 176. The external monitor will review the baseline information from the survey carried out during the TrTA, and conduct, if necessary supplementary baseline survey of the affected villages and village groups affected by LA to obtain a reliable baseline data for monitoring and evaluation. In addition, random interviews, field observations, small group meetings will be conducted. The following will be covered in the monitoring and evaluation.

Table 9.2-1: Indicators for External Monitoring Items/elements Contents Key indicators

Permanent land acquisition, HD and temporary impacts

Progress of construction land approvals and delivery

Construction land approval documents; Land acquisition amount, type and Impact; Civil works progress and linkage with land acquisition activities

Temporary land use Amount and type of temporary land use; Temporary land use compensation and disbursement

Permanent Land compensation standards and implementation

Amount and type of permanent land acquisition; Permanent land acquisition compensation standard and disbursement

Compensation standards and implementation

Compensation standard (structures) and any change; Compensation payment; Transition fees delivered

Living conditions of before and after HD

Comparison of infrastructure; Per capita housing area; Community facilities; Distance from the center the county and township; Satisfactory of sampling survey

Provision of Assistance and

Cash compensation funds

Disbursement of cash assistance to APs or vulnerable HHs

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Items/elements Contents Key indicators

Support Land adjustment

Variation of per capita lands before and after LA; Land for land program, if any; Quality and distance of adjusted land;

Production resettlement mode

Impact to the production mode of farmers; Employees No. of non-farm payrolls; Variation of crop species; Impact to the livestock;

Variation of income Per capita net income of rural residents; Disposable income of urban residents;

Employment Proportion of three main industries employee; Proportion of women in small business; No. of migrant workers;

Training Times, type and time of training; Benefits, number and effective of training;

Satisfaction of resettlement Satisfactory of sampling survey;

Compensation Compensation standard (structures) and variation; Compensation payment method; Compensation for the shutdown period

Housing reconstruction and demolition

Enterprise reconstruction way; Household No. of resettlement; No. of enterprise expansion;

Restoration Number and income of employees; income of enterprises; Satisfaction of sampling employees and operators

Funds availability and application

Availability of funds Funds sources and payment

Allocation Allocation flows

Vulnerable households

Vulnerable households Type of the vulnerable and Impacts

special assistance measures

Measures implementation (timely, subsidy etc.)

Gender matters

participation

No. of women participating in meetings, DMS, accepting payments, Women hired during construction and other employment opportunities

Public consultation and information disclosure

Public consultation and information disclosure activities

Times, population, time, site, topic and efficiency; Way, content and response of information disclosures

Organizational Set-up

Clear roles and responsibilities, coordination and reporting

No. of qualified staff Coordination meetings and follow-ups Training to improve capacity of staff Monitoring, preparation of reports and submission

Grievance Redress

GRM being followed

No. of issues/problems/complaints received, responded to, addressed and resolved in a timely manner Available staff and resources to address grievances Timely reporting of grievances

177. The submission plan of external M&E report is shown in Table 9.2-2.

Table 9.2-2: Resettlement M&E Schedule

95

No. Resettlement report Time of survey Submission date

1 Semiannual monitoring (including baseline survey report) June 2021 July 2021

2 Semiannual monitoring December 2021 January 2022

3 Semiannual monitoring June 2022 July 2022

4 Semiannual monitoring December 2022 January 2023

5 Semiannual monitoring June 2023 July 2023

6 Semiannual monitoring December 2023 January 2024

7 Annual monitoring December 2024 January 2025

8 Annual monitoring December 2025 January 2026

9 Completion report December 2026

96

10. Resettlement Budget, Financing and Disbursement

10.1. Resettlement budget 178. The RP cost for the Project mainly includes five parts, namely, resettlement compensation, compensation for special facilities, other fee, contingency fee and relevant tax. 179. The resettlement compensation includes LA fee, temporary land occupation fee, compensation for houses and ancillary facilities, resettlement compensation subsidies and awards, transition fee, tomb relocation fee, special funds for vulnerable groups, etc. 180. Compensation for special facilities includes compensation for transportation facilities, power transmission and transformation facilities, communication facilities, water conservancy and hydropower facilities, municipal facilities, etc. 181. Other expenses include expenses for preliminary work, comprehensive survey and design and scientific research, implementation management, PMO organization, technical training, M&E. 182. Relevant taxes include farmland occupation tax, farmland reclamation fee, forest vegetation restoration fee, etc. 183. According to the budget of the above-mentioned expenses, the total LAR cost of the Project is CNY 57.12 million. See details in Table 10.1-1.

Table 10.1-1: RP Budget Estimate (Unit: CNY 10,000, %) No. Cost categories

Subproject 1

Subproject 2

Subproject 4

Subproject 6

Total Percentage (%)

Part I

Rural resettlement compensation

581.48 237.93 1910.20 202.80 2932.41 51.33%

I LA fee 552.67 122.15 319.64 202.80 1197.26 20.96%

(I) Land compensation

and resettlement subsidy

399.15 81.16 200.31 147.36 827.99 14.49%

1 Cultivated land 286.44 130.43 416.87 7.30%

2 Garden land 67.34 3.87 7.99 79.19 1.39%

3 Forest land 70.31 195.49 265.80 4.65%

4 Housing estate 2.56 10.85 2.69 16.10 0.28%

5 Land for transport 1.28 0.96 2.23 0.04%

6 Land for water

surface and water conservancy facilities

39.38 6.26 45.64 0.80%

7 Unused land 1.91 1.91 0.03%

8 Other land (raised

path through fields) 0.25 0.25

(II) Compensation for young crops and

trees 13.56 3.37 10.12 1.73 28.79 0.50%

(III) Endowment

insurance fees for LLFs

139.95 37.62 109.20 53.71 340.49 5.96%

II LA fee 1590.56 1590.56 27.84%

1 Compensation during construction period

187.62 187.62 3.28%

2 Compensation for

young crops or trees 339.43 339.43 5.94%

3 Land reclamation fee 926.05 926.05 16.21%

97

No. Cost categories Subproject

1 Subproject

2 Subproject

4 Subproject

6 Total Percentage

(%) 4

Subsidy for reaching production period

137.46 137.46 2.41%

III Compensation for

housing and auxiliary structures

83.97 83.97 1.47%

(I) Housing compensation

56.82 56.82 0.99%

(III) Compensation for house decoration

27.15 27.15 0.48%

IV Resettlement

compensation, subsidies and awards

25.14 25.14 0.44%

V Transition fee 6.66 6.66 0.12%

VI Tomb relocation fee 28.81 28.81 0.50%

Part III

Compensation for restoration and

reconstruction of special projects

931.25 931.25 16.30%

Part IV

Other costs 354.27 63.80 311.24 58.79 788.10 13.80%

I Preliminary work cost 37.82 5.95 47.75 5.07 96.59 1.69%

II Comprehensive

survey and design research cost

32.57 9.52 76.41 8.11 126.61 2.22%

III Implementation management cost 60.03 12.38 99.33 10.54 182.28 3.19%

IV Organization fee of

IAs 200 30 40 30 300 5.25%

V Technical training

cost 2.91 1.19 9.55 1.01 14.66 0.26%

VI M&E fee 20.94 4.76 38.20 4.06 67.96 1.19%

Part V

Contingency 224.04 36.21 266.57 31.39 558.21 9.77%

Part VI Relevant tax 296.88 13.22 37.81 154.58 502.49 8.80%

I Cultivated land occupation cost 6.12 2.20 7.12 3.24 18.68 0.33%

II Land reclamation fee 290.76 151.34 442.10 7.74%

III Forest vegetation restoration fee

11.02 30.69 41.71 0.73%

Part VII Total investment 2387.92 351.15 2525.82 447.56 5712.46 100.00%

10.2. Financing and use of resettlement funds

184. Resettlement funds for the Project are all domestic supporting funds, which will be raised by PCG. The resettlement funds will be disbursed by the PMO directly to the functional departments concerned through a special account according to the compensation rates, and then distributed to the affected villages/groups. 185. According to the implementation progress of the Project, the annual investment plan of the Project is shown in Table 10.2-1.

Table 10.2- 1: Annual Investment Plan

Year 2020 2021 2022 2023 2024 2025 2026 Total Percentage (%) 5% 15% 25% 25% 20% 5% 5% 100

98

Amount (CNY 10,000) 285.62 856.87 1,428.11 1,428.11 1,142.49 285.625 285.625 5,712.46

99

11. Resettlement Schedule 186. According to the implementation schedule of the project, the project will be constructed from late 2021 to December 2026. In order that the resettlement schedule is coordinated with the construction schedule, the RP will be updated and implementation will start in 2021, and the post-resettlement evaluation will be conducted in 2026. 187. The basic principles for resettlement implementation are as follows:

• LA should be completed at least 3 months prior to the commencement of construction

• All compensation fees will be paid to the affected persons/entities directly and fully within 3 months of approval of the compensation and resettlement program for LA.

• The contractor will commence construction in certain areas where land has been acquired, the AHs have received full compensation, cleared the land, and restoration measures are in place.

• The temporary land occupation will be informed in advance to ensure the standing crops can be harvested before construction. If impossible, compensation fees on basis of full replacement value will be paid to affected households directly.

100

Table 11-1: Resettlement Schedule

Content 2020 2021 2022 2023 2024 2025

2026

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10

Impact survey on LA impact

Consultation with the APs

Prepare a draft RP

Issue resettlement information booklet

Disclose the draft RP on ADB website

Carry out DMS and social stability risk assessment for the land to be acquired

Preparing the updated RP

Disclose updated RP to APs

Submitting the updated RP to ADB for approval and uploading to ADB website

Compensation agreement and disbursing the compensation

AP training

Livelihood support

Internal Resettlement M&E

External Resettlement M&E

Report on completion of resettlement

Appendix 1

101

Appendix 1

102

Annex 1 Summary of PRC laws, regulations and policies

Provisions on the ownership and use rights of land 188. The People's Republic of China resorts to a socialist public ownership, namely, ownership by the whole people and collective ownership by the working masses. Land in urban districts shall be owned by the state. Land in the rural areas and suburban areas, except otherwise provided for by the state, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants (Article 2 and 9 in Land Administration Law of the PRC). 189. The state fosters the system of protecting the basic farmland. After the permanent basic farmland is demarcated according to law, any unit or individual may not occupy or change its use without authorization. If key construction projects for national energy, transportation, water conservancy and military facility and others have to be located in the permanent basic farmland and the transfer of agricultural land or land acquisition are required, the approval shall be obtained from the State Council. (Articles 33 and 35 of the Land Administration Law of the PRC) 190. In order to meet the demands of public interests, it is allowed to acquire lands owned collectively, premises owned by entities and individuals or other realties according to the statutory power limit and procedures. When acquiring land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement subsidies, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security fees for the farmers with land acquired, guarantee their livelihood and protect their lawful rights and interests. When acquiring the premises owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the acquired realties; when acquiring the individuals' residential houses, it is required to guarantee the housing conditions of the owners of the acquired houses (Article 42 in Property Law of the PRC). Provisions on land acquisition compensation 191. When the land acquisition is required, LLFs shall be compensated fairly and reasonably to ensure that the living standard of them will not be reduced and guarantee their long-term livelihood. When acquiring land, it is required to, in accordance with law and in full amount, timely pay land compensation fees, placement subsidy, compensations for the above-ground fixtures of the rural villagers' houses and lands, and seedlings and other fees, provide social security fees for the farmers with land acquired. The standard of land compensation fees and resettlement subsidy for farmland acquisition shall be determined by the provinces, autonomous regions and municipalities directly under the central government through formulating the location-based composite land price. The location-based composite land price shall be prepared while taking into account factors such as the original use, conditions, output value, and location of the land, the relationship between supply and demand of the land, the population and level of economic and social development, and shall be adjusted or republished at least once every three years. Compensation standards for acquisition of land other than farmland, ground attachments and young crops shall be formulated by provinces, autonomous regions and municipalities directly under the central government. Adhering to the principle of making compensation before relocation and improving the living conditions, rural villagers' wishes should be respected, and they should be given fair and reasonable compensation in the form of providing replacement house, temporary dwelling or money compensation for relocation, and other expenses caused from land acquisition, so as to

Appendix 1

103

protect their rights in living and legal housing property. Local people's governments at or above the county level shall include LLFs into the corresponding social security systems such as endowment insurance. The social security fees of LLFs are mainly used as the payment subsidy of endowment insurance and other social insurance of eligible LLFs. Measures for the collection, management and use of social security fees for LLFs shall be formulated by the provinces, autonomous regions and municipalities directly under the central government. (Article 48 in Land Administration Law of the PRC). 192. A paid leasing should be going through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: (1) Land for use by government organs and for military use; (2) Land for building urban infrastructure and for public welfare undertakings; (3) Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; (4) Other land as provided for by the law and administrative decrees. (Article 54 in Land Administration Law of the PRC). Provisions on resettlement 193. Local people's governments at or above the county level shall include LLFs into the corresponding social security systems such as endowment insurance. The social security fees of LLFs are mainly used as the payment subsidy of endowment insurance and other social insurance of eligible LLFs. Measures for the collection, management and use of social security fees for LLFs shall be formulated by the provinces, autonomous regions and municipalities directly under the central government. (Article 48 in Land Administration Law of the PRC). 194. The local people’s government above county level shall work out specific methods to ensure the further living of LLFs. The farmers affected by LA can use legally approved construction land to buy a share of the land use-right projects with steady profit. For the inside of urban planning area, the local people’s government shall list the farmers who will lose cultivated land because of land acquisition, into urban employment system and set up system of social security; for the outside of urban planning area, during the process of land acquisition, the local people’s government shall, in its administration area, leave some cultivated land or arrange job for LLFs; for the farmers, who will lose their cultivated land and basic conditions of production and living, the local people’s government shall resettle them in other area (Article 13 of the Selected Provisions of the Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration). 195. LLFs can choose the following resettlement ways: (1) resettlement of agricultural production. For the acquisition of rural collective land outside the urban planning area, these kinds of land, such as rural collective non-planed land, contracted land handed back by contracting farmers, land for contracting transfer and land newly-added during land development and arrangement shall be used firstly as the necessary cultivated land for LLFs by land acquisition in order to ensure their continuous agricultural productions. (2) Resettlement by new employment. The land user or the local people’s government shall try its best to provide LLFs with free labor skill training and arrange them with proper jobs. Under the same conditions, the land user shall employ LLFs first. During the acquisition of rural collective land in the urban planning area, the local people’s government shall list the farmers who will lose cultivated land because of land acquisition, into urban employment system, and set up system of social security. (3) Placement by benefit-sharing compensation. For the project land with long-term stable income, under the premise of farmers’ voluntary, the rural collective economic organizations whose land has been acquired may, after consultation with the land user, become a shareholder with compensation and resettlement fees

Appendix 1

104

for land acquisition, or at the price of the approved use right for construction land. Rural collective economic organizations and farmers can obtain benefits in the form of preferred shares as agreed in the contract. (4) Resettlement in other area. If the local area is really unable to provide basic production and living conditions for those who lost land due to land acquisition, the government can, under the premise of fully soliciting the opinions of the rural collective economic organizations and farmers whose land has been acquired, resettle them in other area (Article 2 of the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition). 196. Guarantee the production and living of LLFs by multiple ways of resettlement. Mainly includes: giving priority to agricultural resettlement. In some rural areas where cultivated land has been increased through land renovation and rural collective economic organizations have reserved more free disposed land, priority should be given to agricultural resettlement for land acquisition, and the newly increased cultivated land or free disposed land should be allocated to LLFs so that they can maintain basic production conditions and sources of income depending on this certain area of cultivated land. Standardize the resettlement in the reserved land. For land acquisition within the scope of urban construction land determined by the overall land use planning, the resettlement in the reserved land can be adopted based on the actual conditions, but guidance and management shall be strengthened. The reserved land shall be arranged within the scope of urban construction land and acquired to being owned by the state; the land that is acquired and transferred to the agricultural land shall be included in the annual land use plan, so as to prevent expansion of urban construction land due to resettlement in the reserved land; the development of reserved land shall conform to the requirements of urban construction planning and relevant regulations. In areas where resettlement in the reserved land is implemented, the local government should formulate strict management measures to ensure that the arrangement of reserved land is standardized and orderly, and the development and utilization of reserved land are scientific and reasonable. Promote the implementation of social security funds for LLFs. Land and resources departments at all levels shall actively promote the construction of the social security system for LLFs under the unified leadership of the local government, and in cooperation with relevant departments. (Notice of the Ministry of Land and Resources on Doing a Better Job in Land Acquisition Management). 197. The owner of acquired land can choose money compensation or exchange of house property rights. If the exchange of house property rights is chosen, the people's government at municipal and county level shall provide the owner of acquired land with house for the property rights exchange, and calculate and settle the difference between the value of the acquired house and that of the house for the property rights exchange with the owner of acquired land (Article 21 of the Regulations on House Acquisition on State-owned Land and Compensation). Provisions on information disclosure and public participation 198. The people's governments at the municipal and county levels divided into districts and their departments shall also take initiative to disclose government information about municipal construction, public services, public welfare undertakings, land acquisition, house expropriation, public security management, social assistance, etc. According to the local specific conditions, the town/ship people's government should also publicize the government information about agricultural and rural policies, construction and operation of irrigation and water conservancy projects, transfer of contracted management rights of rural land, review of the curtilage using, land and house acquisition, fund raising and labor raising, social assistance, etc. (Article 21 of the Regulations on the Disclosure of Government Information of the PRC). 199. The administrative organ shall establish and perfect the government information release

Appendix 1

105

mechanism, and release the government information which is voluntarily disclosed through government bulletins, government websites or other Internet government media, press conferences, newspapers, radio, television and other channels. The people's governments at all levels shall strengthen the work of publicizing government information by relying on government portal websites, and centrally and actively publicize government information through a unified government information disclosure platform. The government information disclosure platform shall have the functions of information retrieval, access, download, etc.; the people's governments at all levels shall set up a place for consulting government information in the national archive, public library and government service place, which is equipped with corresponding facility and equipment to facilitate citizens, legal persons and other organizations to obtain government information; the administrative organ may set up public consultation rooms, data collection points, information bulletin boards, electronic information screens and other places and facility required to disclose government information; the administrative organ shall timely provide the government information which is voluntarily disclosed to the national archives and public libraries (Articles 23, 24 and 25 of the Regulations on the Disclosure of Government Information of the PRC). 200. For land acquired by the State, local People’s Government at or above the county level shall, upon approval pursuant to legal procedures, make an announcement and organize its implementation. If a local people's government at or above the county level intends to apply for land acquisition, it shall carry out an investigation of the current status of the land to be acquired and a risk assessment of social stability, and shall make a public announcement of the scope and purpose of acquisition, land status, resettlement methods and social security in local town/ships, villages and group of villagers for at least 30 days, so as to listen to the opinions of the rural collective economic organizations and their members, village committees and other interested parties. If most of the members of the rural collective economic organizations whose land has been acquired don not think the compensation and RP for land acquisition conform to the provisions of laws and regulations, the local people's government at or above the county level shall organize a hearing and revise the RP based on the hearing results and in accordance with the provisions of laws and regulations. Owners and persons of the right to use of the acquired land should, within the specified time period of the announcement, bring the ownership certificates of real estate to enter into registration for compensation for land acquisition. The local people's government at or above the county level shall organize relevant departments to estimate and implement relevant costs in full amount, and sign agreements on compensation and resettlement with the owners and users of the land to be acquired; if it is really difficult for some individuals to reach an agreement, it should be truthfully stated when applying for land acquisition. The local people's government at or above the county level may apply for land acquisition only after relevant preliminary work is completed. (Article 47 in Land Administration Law of the PRC). 201. The rural collective economic organization of the acquired land should publish the revenue and expenditure of the compensation fee of the acquired land for the members of the respective collective economic organization and accept supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. (Article 49 of the Land Administration Law of the PRC). 202. The house acquisition department shall draw up a compensation plan and submit it to the people's government at municipal and county level. The people's government at the municipal and county level shall organize relevant departments to demonstrate and publish the compensation plan for land acquisition and solicit public opinions. The time limit for soliciting opinions shall not be less than 30 days; the people's government at the municipal and county level shall promptly publish the information on the solicitation and the revision made based on public opinions; for the reconstruction of the old urban areas requiring land acquisition, if most of

Appendix 1

106

the persons with their land acquired don not think the compensation plan for land acquisition conform to the provisions of these regulations, the people's government at the municipal and county level shall organize hearings for the persons with their land acquired and public representatives, and modify the plan based on the hearing results. (Articles 10 and 11 of the Regulations on House Acquisition on State-owned Land and Compensation). Provisions on vulnerable groups 203. Women and men have equal rights in contracting rural land. The women’s legal interests in the land contracting should be protected. No organization or individual may deprive or infringe upon the women’s right to contract and use lands. During the contract period, the Employer shall not recover the contracted land. During the contract period, the employer shall not adjust the contracted land (Articles 6, 26 and 27 of the Rural Land Contract Law of the PRC). 204. Orphans, exceptional poverty personnel that require support, military families, and losing-single-child families, after the examination and approval by the county people's government and after publicity without objection, shall be granted with another CNY 50,000/household of purchasing (building) subsidy (Article 49 of the Compensation and Resettlement Measures for Collective Land Acquisition and House Demolition in Pingjiang County).

Appendix 1: Resettlement Information Booklet The RIB will be compiled upon ADB approval of the Resettlement Plan for the Project.

Appendix 2

107

Appendix 2: Due Diligence Report on LURT Subproject 8 (Eco-farming subproject) involves land use right transfer (LURT). According to ADB's requirements on good practices of voluntary land uses, a due diligence has been conducted on the LURT and a due diligence report (DDR) on the LURT has been prepared. The purpose of due diligence is to analyze and evaluate whether the requirements of ADB and PRC laws and regulations on land leases are met through the survey on the LURT process. The survey methods included field visits, interviews, discussions, sampling survey, etc. In March 2020, PMO, DI, RP-DI and personnel from relevant departments of Pingjiang County jointly formed a survey team, and went to 6 town/ships and 9 project villages for field survey. In April 2020, the joint survey team convened meetings of all enterprises involved in LURT to have a discussion. A. Project Scope of Land Use According to the survey, 8,641 mu of land use right has been transferred in the total area of eco-farming projects. Including 6,667 mu of newly built and slightly renovated tea gardens, 1,800 mu of comprehensive eco-farming demonstration area and 174 mu of newly-built camellia oleifera forest. It involves 13 town/ships, 24 villages and 24 project activities. There are 19 enterprises participating in the LURT cooperation. There are 4,000 households with 18,056 people (including 8,446 females) participating in the LURT. Table 1 shows the basic conditions of LURT of Subproject 8.

Appendix 2

108

Table 1: Basic Conditions of LURT under Subproject 8 Component Basic condition of project villages Conditions of LURT

Component Project Town/ship

Project village Construction scale (mu) Enterprise

Population Land (mu) LURT land (mu) Farmer households involved in LURT

Total HHs

Total population (person)

Female (person)

Total area

Cultivated land

Total area

Cultivated land

Total HHs

Total population (person)

Female (person)

Ecological tea garden

Anding Town

Baiping Village Guantan Village

1257 Hunan Xiangyue Tea Culture

Communication Co., Ltd. 732 3,456 1,512 6,756 2,730 1,257 466 56 223 105

Fujia Village 143 Hunan Jiushizhai Gaoshan Tea Co., Ltd. 298 1,496 846 2,249 883 143 38 75 34

Zhenghuang Village 200 Pingjiang Fumanchun Tea Co., Ltd. 886 3,632 1,766 19,713 2,973 200 87 348 171

Sanshi Town

Qiuhu Village 260 Hunan Qiuhu Huangjin Tea Industry Co.,

Ltd. 809 3,102 1,860 23,082 2,100 260 29 39 1,080 602

Danjiang Village 200 Hunan Ancient Tea Culture Development

Co., Ltd. 534 2,084 862 28,335 1,580 200 120 42 317 130

Dutou Village 124 Mingwang Tea Farmer Cooperation of

Pingjiang County 679 3,309 2,613 9,256 2,216 124 0 135 820 327

Meixian Town

Qinfang Village 78 Xiaoyuan Agriculture, Forestry and Animal

Husbandry Cooperation of Pingjiang County

476 1,987 1,108 15,786 786 78 13 32 128 72

Aoshang Group 23 Xiaoyuan Agriculture, Forestry and Animal

Husbandry Cooperation of Pingjiang County

586 2,846 1,380 7,560 1,450 23 59 295 138

Tongshi Town Zheliao Village 61 Renshengshan Cooperation 828 3,728 1,816 2,053 1,828 61 131 537 260

Shangtashi Town

Dongyuan Village 263 Changfadi Aid-the-Poor Cooperation of

Dongyuan Village 506 1,842 842 251,464 1,308.4 263 50 230 102

Nanjiang Town

Longtou Village 268 Hunan Ancient Tea Culture Development

Co., Ltd. 386 1,467 691 20,500 960 268 12 206 887 284

Wengjiang Town

Baihe Village 626 Hunan Ancient Tea Culture Development

Co., Ltd. 660 2,268 1,034 24,600 1,350 626 161 84 263 51

Jiayi Town

Yanglinjie Village 353 Niusheng Planting and Breeding Farmer

Cooperation of Pingjiang County 736 3,358 1,342 11,100 2,838 353 105 147 673 351

Yanglinjie Village 155 Pingjiang Huaxing Agricultural and Forestry

Development Co., Ltd. 736 3,358 1,342 11,100 2,838 155 0 89 431 161

Lutou Village 350 Xinglin Cooperation of Pingjiang County 52 228 107 11,340 170 350 170 52 228 107

Hongqiao Town

Gaoduan Village 1000 Hunan Jiushizhai Gaoshan Tea Co., Ltd. 420 1,800 870 7,900 900 1,000 420 1,800 870

Fushoushan Town

Jinling Village, Jinlong Village, Huangjin Village

1005 Hexin Agricultural Planting Farmer Cooperation of Pingjiang County

814 3,507 1,485 11,457 1,950 1,005 394 1,578 792

Sanyang Township

Shangshan Village 300 Shangshan Yougu Cooperation 81 318 142 800 203 300 203 81 318 142

Subtotal 11 19 6667 14 10,219 43,786 21,618 465,051 29,063 6,667 1,279 2,142 10,231 4,699

Construction of

ecological paddy, fruits and vegetables

orchard dem

onstration sites

Jiayi Town Yanglinjie Village 400 Tianrun Ecological Farmer Cooperation of

Pingjiang County 732 3436 1,126 2,900 2,900 400 400 700 3,089 1,726

Changshou Town

Tangkou Village 400 Pingjiang Ouyaxin Eco-agricultural Tourism

Development Co., Ltd. 420 1895 980 2,000 1,600 400 400 300 1,500 630

Yuping Town Shili Village 400 Guanduan Planting and Breeding Farmer

Cooperation of Shili Village 489 1820 968 960 460 400 120 86 321 172

Anding Town Gaoping Village 600 Lantian Ecological Planting and Breeding

Cooperation 523 2168 1,002 9,300 1500 600 600 300 1260 426

Appendix 2

109

Subtotal 4 4 1800 4 2,164 9319 4,076 15,160 6,460 1,800 1,520 1,386 6,170 2,954 Cons

truction of ecological cam

ellia

oleifera

forest

demonstration projects Jiayi Town Sizhou Village 60.0 Xianzhong Nursery of Pingjiang County 452 2182 1,050 7,300 1,840 60 7 35 13

Tongshi Town Bangshang Village 114.0 Xianzhong Nursery of Pingjiang County 465 1620 780 5,220 1,067 114 465 1620 780

Subtotal 2 2 174 1 917 3802 1,830 12,520 2,907 174 0 472 1655 793

Total 13 24 8641 19 13,300 56907 27,524 492,731 38,430.4 8,641 2,799.3 4,000 18,056 8,446

Appendix 2

110

B. Social Economic Situation of the LURT area Table 1-1 shows that the transferred land in the project area involves in 13 towns and 24 villages, which are respectively the Baiping Village, Guantan Village, Fujia Village, Zhenghuang Village, and Gaoping Village of Anding Town, the Qiuhu Village, Danjiang Village and Dutou Village of Sanshi Town, the Qinfang Village and Aoshang Group of Meixian Town, the Zheliao Village of Tongshi Town, the Dongyuan Village of Shangtashi Town, the Longtou Village of Nanjiang Town, the Baihe Village of Wongjiang Town, the Yanglinjie Village, Lutou Village and Sizhou Village of Jiayi Town, the Gaoduan Village of Hongqiao Town, the Jinling Village, Jinlong Village and Huangjin Village of Fushoushan Town, the Shangshan Village of Sanyang Township, the Tangkou Village of Changshou Town, the Shili Village of Yuping Town, and the Bangshang Village of Tongshi Town. The total rural land area in these villages is 492,731 mu, including 38,430.4 mu of cultivated land. The rural population is 13,300 rural households with 56,907 people, of which the female population is 27,524 people. The arable land per capita is 0.5 - 1 mu/person. Through the collected socio-economic statistics of the Pingjiang County and the above 13 town/ships, it has been observed that the townships within the project area vary in economic development level to some extent, but on the whole, they are in the middle level of the Pingjiang County. Among them, the Sanyang Township, Changshou Town and others are relatively fast in economic development, while the Hongqiao Town, Meixian Town and others are relatively backward. In 2019, the per capita disposable income of farmers in the project area was CNY 5,000 - 11,000, with the main source of income being the outside labor income, followed by the agricultural, forestry, graziery, side-line production and fishery income. C. Applicable Policy Domestic legal basis

1. Law of the People's Republic of China on the Contracting of Rural Land (secondly amended on December 29, 2018)

2. Measures for the Administration of Management-Right Transfer of Rural Land (amended draft for comments), officially implemented on January 1, 2020

3. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (June 29, 2016)

4. Hunan Province Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (November 18, 2016)

5. Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land) (starting since January 1, 2010)

The applicable domestic laws, regulations and important articles of LURT relevant for the Project are shown in Table 2. Relevant ADB requirements on good practices of voluntary land use In the process of signing and implementing the voluntary land use agreements or LURT, the following requirements will be met:

1) The principles of fairness, openness, impartiality, voluntariness and adequate rental or compensation;

2) The principle of gender equality;

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3) The principle of consultation; 4) Establishment and operation of grievance redress mechanism (GRM); 5) External monitoring during implementation.

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Table 2: Domestic Laws, Regulations and Important Articles related to LURT for the Project

Name Issuing agency

Effective date

Important articles relating to LURT for the Project

Law of the People's Republic of China on the Contracting of Rural Land

Order of the President of the People's Republic of China

January 1, 2019

Article 3 The State applies the rural land contracting and management system. The rural land such as barren mountains, ditches, hills and beaches that are not suitable for household contracting may be contracted by means of bidding, auction and public consultation. Article 6 Women and men have equal rights in contracting rural land. The legitimate rights and interests of women will be protected in the contracting. No organizations or individuals shall exploit or infringe upon the rights for land contracting and management that women shall enjoy. Article 38 The following principles will be followed in the transfer of rights of land management: (I) Transfer the land-use right lawfully, voluntarily, and for compensation. No organizations or individuals shall compel or obstruct the land-use right transfer; (II) The nature of the ownership of the contracted land and its use for agriculture shall not be altered; (III) The time limit of transfer shall not exceed the residual maturity of the contract period; (IV) The transferee shall have the ability or qualification for agricultural operation; (V) Under the same conditions, the members of the collective economic organization shall enjoy the priority. Article 46 With the contractor's written consent and after report to the collective economic organization for the record, the transferee may transfer the rights for land management again. Article 52 When the contract-issuing party contracts out rural land to an organization or individual other than the collective economic organization, it shall obtain the consent of more than two-thirds of the members of the villagers' meeting or more than two-thirds of the villagers' representatives of the members of the collective economic organization in advance, and submit to the township people's government for approval.

Measures for the Administration of Management-Right Transfer of Rural Land

Ministry of Agriculture and Rural Affairs

January 01, 2020

Article 2 The transfer of rural land contracting and management rights shall conform to the principles of equal consultation, lawfulness, voluntariness and compensation. Article 4 The transfer of rural land contracting and management rights shall not change the nature of ownership or agricultural use of the contracted land, or damage the overall agricultural productivity or the agricultural ecological environment. The time limit of transfer shall not exceed the residual maturity of the contract period; the transfer shall not damage the lawful rights and interests of the interested parties and rural collective economic organizations. Article 9 If the contractor voluntarily entrusts the contract-issuing party or an intermediary organization to transfer its land management rights, the contractor shall issue a letter of authorization for the transfer. The letter of authorization shall state the matters, authority and

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Name Issuing agency

Effective date

Important articles relating to LURT for the Project time limit of the entrustment, and will be signed or sealed by the principal and the trustee. Without the contractor's written authorization, no organization or individual has the right to determine the transfer of farmers' land management rights in any way. Article 22 The contractor shall sign a transfer contract with the transferee on the basis of consensus through consultation. The transfer contract is made in quadruplicate, with both transfer parties holding one copy each, and the contract-issuing party and the rural land contract management authority of the township people's government keeping one copy each for record. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written transfer contract. Article 24 The contract for the transfer of land management rights generally includes the following contents: (I) The names and domiciles of both parties; (II) The name, the four boundaries, location, area and quality level of the transferred land; (III) The time limit of the transfer and the beginning and terminating dates; (IV) Mode of transfer; (V) Use of transferred land; (VI) The rights and obligations of both parties; (VII) The price and payment method of transfer; (VIII) Disposal of ground attachments and related facilities after the expiration of the contract; (IX) The attribution of the relevant compensation when land is expropriated, acquired or occupied according to law; (X) Liability for breach of contract. The text format of the transfer contract of rural land management rights will be determined by the competent agriculture and rural authorities of provincial people's governments. Article 27 The rural land contract management authority of township people's governments shall timely provide the contractor who has reached the intention of circulation with a transfer contract in uniform text format and guide the signing of the contract. Article 47 Where a dissension or dispute arises over the transfer of rural land management rights, the parties may settle the dispute through consultation or apply to the villagers’ committee or the township people's government for mediation. If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to rural land contract arbitration organization for arbitration, and they may bring a suit before a people's court.

Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation)

Ministry of Agriculture and Rural Affairs

June 29, 2016

Article 9 The trading market of transfer of rural land management rights publicly release the supply and demand information. The information mainly includes the following contents: (I) Basic information of transferred land (including land location, the four boundaries, area, quality level, land use actuality, expected price, mode of transfer, purpose of transfer and other contents); (II) Basic information and related conditions of transferors or transferees; (III) Other matters as required to be publicized. Article 24 The trading market of transfer of rural land management rights shall formulate the

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Name Issuing agency

Effective date

Important articles relating to LURT for the Project service regulations and take necessary measures to ensure the trading of transfer of rural land management rights is open, fair and standardized, and shall consciously accept the supervision from the public and the administration from relevant authorities according to law.

Hunan Province Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation)

Agriculture Commission of Hunan Province

November 18, 2016

Article 6 The trading of transfer of rural land management rights may take the forms of transfer by agreement, competitive pricing, auction, bidding and other modes as stipulated by the laws and regulations of the State. The transferor shall make it clear at the time of submission that, upon the expiration of the project information release period, if a qualified inclined transferee is collected, the mode of transfer by agreement will be adopted; when two or more qualified inclined transferees are collected, what kind of public trading mode they will use? If the mode of bidding is selected, the bid evaluation methods and criteria will be disclosed at the same time. Article 7 Rural collective economic organizations, contracted farmers, family farms, large professional households, professional farmers’ cooperative federation, agricultural enterprises and other new agricultural business entities, as well as other organizations or individuals with the agricultural production and management capacity, can all conduct the trading in the trading market of transfer of rural land management rights according to law. Article 15 The time limit for publicity of rural land management rights transfer information will be no less than 10 working days. A time interval will be set for the recirculate transaction of the management rights of the same land, which shall not be less than 20 working days in general. After the end of the publicity period, the rural land management rights transfer market shall organize the transaction.

Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land)

Order of the President of the People's Republic of China

January 01, 2010

Article 3 In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers’ committee or the township people's government for mediation. Article 4 If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court.

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D. LURT Survey In March 2020, the PMO, BARA, BOF, project design agency, RP-DI and other personnel of Pingjiang County jointly formed a joint survey team, which selected 6 town/ships and 9 project villages for field survey, including the Zhenghuang Village, Gaoping Village and Fujia Village of Anding Town, the Yangshulinjie Village of Jiayi Town, the Tangkou Village of Changshou Town, the Danjiang Village of Sanshi Town, the Pingjiang County Dorticulture Demonstration Center, the Shili Village of Yuping Town, and the Gaoduan Village of Hongqiao Town. The survey team carried out the field survey in the project site involved LURT, had an interview with the project implementation enterprises, project villages and some farmer households, investigated and understood the types of land involved in the transfer, the comparison of output before and after the transfer, the operation situation of the implementation enterprises, the willingness of the farmers participated, and the signing and performance of the transfer contract, and others. In April 2020, the joint survey team convened all enterprises participated in LURT for a discussion, focusing on the investigation and understanding of the signing of transfer contracts, the handling of transfer procedures and the performance of transfer contracts, and collected copies of transfer contracts and payment vouchers. Land involved in LURT According to the survey, in the Promotion of eco-farming technology and practices area, the transferred land is 8641 mu, including 2799.3 mu of cultivated land. There are three types of land in transfer: cultivated land (including irrigated land and dry land), garden land and forest land. Most of them are contracted land and a few are village collective land that has not been contracted to households. For the land involved in transfer, except for that most paddy fields are in normal cultivation before the transfer, the dry land, garden land and forest land are mostly mountainous land, and have a low cultivation rate in general due to the remote location and high altitude (Table 3).

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Table 3: Basic Information of Land Involved in LURT Component Information of land involved in transfer

Component Project Town/ship

Project village LURT area (mu) Cultivated land area included (mu) Types of land

State of cultivation before transfer

Ecological tea garden

Anding Town

Baiping Village Guantan Village

1257 466 Cultivated land Most are wasteland, and a small

amount of land is planted with peanuts and sweet potatoes

Fujia Village 143 Tea garden Waste land / tea garden

Zhenghuang Village 200 Garden land Wasteland

Sanshi Town

Qiuhu Village 260 29 Garden land, dry land Wasteland

Danjiang Village 200 120 Hillside farmland and

garden land Vegetables

Dutou Village 124 0 Garden land Wasteland

Meixian Town Qinfang Village 78 13 Garden land, dry land Wasteland

Aoshang Group 23 Garden land Wasteland

Tongshi Town Zheliao Village 61 Suitable land for forest Wasteland

Shangtashi Town

Dongyuan Village 263 Dry land Wasteland

Nanjiang Town Longtou Village 268 12 Garden land, dry land Wasteland

Wengjiang Town Baihe Village 626 161 Garden land, dry land Wasteland

Jiayi Town

Yanglinjie Village 353 105 Garden land, dry land Rape

Yanglinjie Village 155 0 Forest land Barren mountain

Lutou Village 350 170 Forest land Barren mountain

Hongqiao Town Gaoduan Village 1000 Forest land Barren mountain

Fushoushan Town

Jinling Village, Jinlong Village, Huangjin Village

1005 Forest land Barren mountain

Sanyang Township

Shangshan Village 300 203 Wasteland Wasteland

Ecological paddy, fruits and

vegetables orchard

Jiayi Town Yanglinjie Village 400 400 Paddy field Paddy

Changshou Town

Tangkou Village 400 400 Paddy field Paddy

Yuping Town Shili Village 400 120 Cultivated land, garden

land Rice and soybean

sweet potato

Anding Town Gaoping Village 600 600 Paddy field Paddy Ecological cam

ellia garden

Jiayi Town Sizhou Village 60.0 Forest land Barren mountain

Tongshi Town Bangshang Village 114.0 Forest land Barren mountain

13 24 8,641 2,799.3

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It can be seen from Table 3 that most of the land involved in LURT is unused land before transfer. Enterprises involved in LURT There are 19 enterprises participating in the LURT, including Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Gaoshan Tea Co., Ltd., Pingjiang Fumanchun Tea Co., Ltd., Hunan Qiuhu Huangjin Tea Industry Co., Ltd., Hunan Ancient Tea Culture Development Co., Ltd., Mingwang Tea Farmer Cooperation of Pingjiang County, Xiaoyuan Agriculture, Forestry and Animal Husbandry Cooperation of Pingjiang County, Renshengshan Cooperation, Changfadi Aid-the-Poor Cooperation of Dongyuan Village, Niusheng Planting and Breeding Farmer Cooperation of Pingjiang County, Pingjiang County, Pingjiang Huaxing Agricultural and Forestry Development Co., Ltd., Xinglin Cooperation of Pingjiang County, Hexin Agricultural Planting Farmer Cooperation of Pingjiang County, Shangshan Yougu Cooperation, Tianrun Ecological Farmer Cooperation of Pingjiang County, Pingjiang Ouyaxin Eco-agricultural Tourism Development Co., Ltd., Guanduan Planting and Breeding Farmer Cooperation of Shili Village, Lantian Ecological Planting and Breeding Cooperation, and Xianzhong Nursery of Pingjiang County. These enterprises are most agricultural cooperative federations founded by local people or village collective; and they have better agricultural operation ability, being familiar with local conditions and willing to accept. LURT procedures According to the survey, most of the project LURT procedures are indicated in the figure below.

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Diagram 1: Land Use-right Transfer Procedures

Signing and execution of LURT contracts Through a large No. of field survey, interview, informal discussion and data collection, it is found that:

(1) All the LURT contracts are performed under fully respecting the willingness of farmers, and both parties of the transfer entered into contract completely voluntary;

(2) All transfer enterprises have signed LURT contracts with village collectives or farmers, totally 24 contracts;

(3) Most of the contracts are standard in form and complete in content; (4) The contract period is within 8 - 50 years, and some contracts with cultivated LURT

exceed the period stipulated in the Measures for the Administration on the Contracting and the Transfer of the Right to Use Rural Lands;

(5) Most of the contracts are signed with women involved, but the overall rate of women involved is low;

(6) Most of the contracts have been publicized at the signing stage, while a few have not; (7) During the transfer period, the nature of the land ownership and the agricultural use of

the land have not been changed, and the comprehensive agricultural production capacity and agricultural ecological environment have not been damaged; and

(8) All contracts were performed normally and the rent was paid in time. Analysis of Transfer Effect

Registration form of employer

The employer of land to perform the contract

Registration form of contractor

The contractor performs the contract

Contract execution

Endorsement contract, if required

Sign the standard contract

Fill in the standard contract of land use-right transfer

Negotiation

Information disclosure

Land use-right transfer database

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After field exploration and interview, the survey team found that the land transferred for ecological tea garden and ecological camellia oleifera forest projects are generally garden land, forest land and dry land, most of which are wasteland before the transfer, and the farmers contracting the land had no land income or little income; the land transferred for the Promotion of eco-farming technology and practices is mainly paddy field and dry land, the traditional farming methods were used before the transfer, and the household income was CNY 300 - 400 /mu. After the transfer, the land rent plus dividend for ecological tea garden and ecological camellia oleifera forest projects is CNY 30 - 400 /mu; the land rent plus dividend for eco-farming demonstration site projects is CNY 320 - 520 /mu. Through the comparison of land income before and after the transfer, it can be found that the farmers got more direct income after the LURT than before. In addition, after the LURT, a large No. of workers are demanded in the enterprises, which are basically recruited from local areas. According to the interview and survey, the workers, have a wage of no less than CNY 3,000 /month if long-term workers, and CNY 150 /day if temporary workers. Taking Hunan Jiushizhai Gaoshan Tea Co., Ltd. as an example, a large No. of workers are demanded for tea planting, tea picking, tea making and sales, and the labor demand in peak season is about 800 people, of which more than 80% are local people. For the ecological agriculture project, taking Lantian Ecological Planting and Breeding Professional Farmer's Cooperative Federation of Pingjiang County as an example, workers are demanded for paddy field cultivation and planting. On the premise of meeting the technical requirements, local people are preferred to be recruited. At present, there are 6 long-term workers with a wage of CNY 4,000 /month, but in peak season about 60 workers are required, and the daily wage is CNY 150 /day. It can be seen that after the farmers transferred the land, they can obtain more income, including direct income and indirect income. According to the survey, farmers are very supportive to the LURT. Table 4 shows the income comparison of farmers before and after LURT.

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Table 4: LURT Questionnaire

LURT items LURT involved

population LURT contracts

LURT Information disclosure

LURT Contract

execution

Component Project Town/ship

Project village Involved enterprise Total HHs

Total population (person)

Female (person)

Types of land

Contract duration

No. of women

signing the contract

Times of information disclosure

Whether the rent is

paid regularly

Ecological tea garden

Anding Town

Baiping Village Guantan Village

Hunan Xiangyue Tea Culture Communication Co., Ltd. 56 223 105

Cultivated land

20 1 Yes

Fujia Village Hunan Jiushizhai Gaoshan Tea Co., Ltd. 38 75 34 Tea garden 30 Yes

Zhenghuang Village Pingjiang Fumanchun Tea Co., Ltd. 87 348 171 Garden land 20 19 Yes

Sanshi Town

Qiuhu Village Hunan Qiuhu Huangjin Tea Industry Co.,

Ltd. 39 1,080 602 Garden land, dry

land 30 30 Yes

Danjiang Village Hunan Ancient Tea Culture Development

Co., Ltd. 42 317 130

Hillside farmland

and garden land

20 5 3 Yes

Dutou Village Mingwang Tea Farmer Cooperation of

Pingjiang County 135 820 327 Garden land 20 32 Yes

Meixian Town

Qinfang Village Xiaoyuan Agriculture, Forestry and Animal

Husbandry Cooperation of Pingjiang County

32 128 72 Garden land, dry

land 20 15 Yes

Aoshang Group Xiaoyuan Agriculture, Forestry and Animal

Husbandry Cooperation of Pingjiang County

59 295 138 Garden land 20 16 Yes

Tongshi Town

Zheliao Village Renshengshan Cooperation 131 537 260 Suitable land for forest

30 8 3 Yes

Shangtashi Town

Dongyuan Village Changfadi Aid-the-Poor Cooperation of

Dongyuan Village 50 230 102 Dry land 20 60 3 Yes

Nanjiang Town

Longtou Village Hunan Ancient Tea Culture Development

Co., Ltd. 206 887 284 Garden land, dry

land 30 67 2 Yes

Wengjiang Town

Baihe Village Hunan Ancient Tea Culture Development

Co., Ltd. 84 263 51 Garden land, dry

land 30 39 2 Yes

Jiayi Town

Yanglinjie Village Niusheng Planting and Breeding Farmer

Cooperation of Pingjiang County 147 673 351

Garden land, dry

land 8 26 2 Yes

Yanglinjie Village Pingjiang Huaxing Agricultural and

Forestry Development Co., Ltd. 89 431 161 Forest land 50 1 Yes

Lutou Village Xinglin Cooperation of Pingjiang County 52 228 107 Forest land 50 2 Yes

Hongqiao Town

Gaoduan Village Hunan Jiushizhai Gaoshan Tea Co., Ltd. 420 1,800 870 Forest land 20 2 Yes

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121

LURT items LURT involved

population LURT contracts

LURT Information disclosure

LURT Contract

execution

Component Project Town/ship

Project village Involved enterprise Total HHs

Total population (person)

Female (person)

Types of land

Contract duration

No. of women

signing the contract

Times of information disclosure

Whether the rent is

paid regularly

Fushoushan Town

Jinling Village, Jinlong Village, Huangjin Village

Hexin Agricultural Planting Farmer Cooperation of Pingjiang County

394 1,578 792 Forest land 40 68 3 Yes

Sanyang Township

Shangshan Village Shangshan Yougu Cooperation 81 318 142 Wasteland 30 12 2 Yes

Ecological paddy, fruits and vegetables

orchard

Jiayi Town Yanglinjie Village Tianrun Ecological Farmer Cooperation of

Pingjiang County 700 3,089 1,726 Paddy field 15 329 6 Yes

Changshou Town

Tangkou Village Pingjiang Ouyaxin Eco-agricultural

Tourism Development Co., Ltd. 300 1,500 630 Paddy field 50 35 5 Yes

Yuping Town Shili Village Guanduan Planting and Breeding Farmer

Cooperation of Shili Village 86 321 172

Cultivated land

10 39 4 Yes

Anding Town Gaoping Village Lantian Ecological Planting and Breeding

Cooperation 300 1,260 426 Paddy field 20 2 Yes

Ecological cam

ellia garden

Jiayi Town Sizhou Village Xianzhong Nursery of Pingjiang County 7 35 13 Forest land 30 60 1 Yes

Tongshi Town

Bangshang Village Xianzhong Nursery of Pingjiang County 465 1,620 780 Forest land 17 114 1 Yes

13 24 19 4,000 18,056 8,446 974 45

122

Table 5: Income Comparison of Farmers Before and After LURT

Component Information of land involved in LURT Income before LURT Income after LURT Increase in income after

LURT (CNY/mu)

Component Project Town/ship

Project village LURT land area (mu)

Cultivated land area

included (mu) Types of land Crops

Income (CNY/mu) Crops

Rent and dividend (CNY/mu)

Ecological tea garden

Anding Town

Baiping Village Guantan Village

1257 466 Cultivated land Commercial

crops 180 Tea 400 220

Fujia Village 143 Tea garden Waste land / tea garden

0 Tea 350 350

Zhenghuang Village

200 Garden land Wasteland 0 Tea 150 150

Sanshi Town

Qiuhu Village 260 29 Garden land,

dry land Wasteland 0 Tea

Garden land 100 dry land

300 Above 100

Danjiang Village

200 120 Hillside

farmland and garden land

Vegetables 100 Tea 300 200

Dutou Village 124 0 Garden land Wasteland 0 Tea 100 100

Meixian Town Qinfang Village 78 13

Garden land, dry land

Wasteland 0 Tea Garden land 100 dry land

200 Above 100

Aoshang Group 23 Garden land Wasteland 0 Tea 100 100

Tongshi Town Zheliao Village 61 Suitable land

for forest Wasteland 0 Tea 100 100

Shangtashi Town

Dongyuan Village

263 Dry land Wasteland 200 Tea 400 200

Nanjiang Town Longtou Village 268 12 Garden land,

dry land None 0 Tea 50 50

Wengjiang Town

Baihe Village 626 161 Garden land,

dry land None 0 Tea 50 50

Jiayi Town

Yanglinjie Village

353 105 Garden land,

dry land Rape 0 Tea 50 50

Yanglinjie Village

155 0 Forest land Barren

mountain 0 Tea 50 50

Lutou Village 350 170 Forest land Barren

mountain 0 Tea 100 100

Hongqiao Town Gaoduan

Village 1000 Forest land

Barren mountain

15 Tea 200 185

Fushoushan Town

Jinling Village, Jinlong Village,

Huangjin Village

1005 Forest land Barren

mountain 0 Tea 100 100

Sanyang Township

Shangshan Village

300 203 Wasteland Wasteland 15 Tea 60 45

Ecological

paddy,

fruits and vegetable

s orchard Jiayi Town

Yanglinjie Village

400 400 Paddy field Paddy 300 Comprehensive

planting and 320 20

123

Component Information of land involved in LURT Income before LURT Income after LURT Increase in income after

LURT (CNY/mu)

Component Project Town/ship

Project village LURT land area (mu)

Cultivated land area

included (mu) Types of land Crops

Income (CNY/mu) Crops

Rent and dividend (CNY/mu)

breeding of paddy field

Changshou Town

Tangkou Village 400 400 Paddy field, dry

land Paddy field, wasteland

Paddy field 300

Comprehensive planting and breeding of paddy field

Paddy 520 dry land 360

Above 60

Yuping Town Shili Village 400 120 Cultivated land Rice,

soybean and sweet potato

400 Breeding in paddy field

430 30

Anding Town Gaoping Village 600 600 Paddy field Paddy 300 Breeding in paddy field

520 220

Ecological cam

ellia garden

Jiayi Town Sizhou Village 60.0 Forest land Barren

mountain 0 Oil-tea camellia 30 30

Tongshi Town Bangshang

Village 114.0 Forest land

Barren mountain

0 Oil-tea camellia 88 88

124

E. GRM The project area has established the LURT GRM, and the appeal procedures are as follows:

1) In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers’ committee or the township people's government for mediation. If an agreement is reached through mediation, the Villagers’ committee or the township people's government shall prepare a mediation agreement.

2) If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court.

3) The tribunal shall mediate the disputes over the contracting and management of rural land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall make an arbitration award in a timely manner.

4) If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award will be legally effective immediately.

5) According to the survey, the above appeal channels are unblocked, and no appeal has been received.

F. Conclusions and Corrective Action Plan Conclusions

(1) All enterprises, villagers’ committees and most households participating in signing the contract have been informed of the information on the ADB-financed project, and all of them support the Project and the intended use of the land;

(2) All transfer contracts were signed according to the willingness of farmers, and generated in words that are easily understood by both parties. They are informed of the content, and after consultation, both parties of the transfer are completely voluntary and equal;

(3) All parties have obtained the contract, and the contract has been verified by a third party who has kept the copy;

(4) The contracts were carried out in accordance with the legal procedures stipulated in the legal agreement, with complete LURT procedures handled, including effective consultation and information disclosure

(5) The land-demand party provided reasonable compensation to the land-supply party. The rent varies from 30 CNY/mu to 720 CNY/mu. As a result of consultation, all villagers voluntarily accepted the price;

(6) The transferred land includes cultivated land, garden land and forest land, of which the dry land, garden land and forest land are mostly wasteland or low-yield land. All the farmers involved have gained more income after the transfer, including direct land income and indirect migrant work income, benefited from the Project.

(7) During the transfer period, the agricultural use of the land have not been changed, and the comprehensive agricultural production capacity and agricultural ecological environment have not been damaged;

(8) All contracts were performed normally, and the rent was paid in time. Most of the rent was paid through the bank, and a small part was paid in cash; and

(9) In case of disputes, counterparties may turn to the GRM. Pending Issues and Correct Action Plans

125

(1) Strengthen the publicity of ADB-financed project to ensure that every household participating in the contract can get project information.

(2) The 5 contracts signed by Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Gaoshan Tea Co., Ltd., Pingjiang Huaxing Agricultural and Forestry Development Co., Ltd., Lantian Ecological Planting and Breeding Cooperation and Xinglin Cooperation of Pingjiang County have no female signatures. Therefore, it is suggested that the contracts should be signed by both husbands and wives to ensure women's rights and interests.

(3) The contract period for the LURT contract signed between Pingjiang Ouyaxin Eco-agricultural Tourism Development Co., Ltd. and the Tangkou Village of Changshou Town is 50 years, which exceeds the period stipulated for cultivated LURT, so it is suggested to revise and perfect it.

(4) In order to ensure the signing and implementation of all LURT contracts can meet the requirements of ADB and PRC laws and regulations, it is suggested to carry out external tracking and monitoring for the projects with LURT implemented and LURT to be implemented.

Issues and correction plan are described in Table 6. All corrective actions will be completed by the RP updating stage and the LURT DDR will be updated and included as an appendix of the updated RP.

Table 6: Issues and Correction Action Plan

Problems Corrective measures

Deadline Responsibility

subject

1. Some households participating in signing the contract are not aware of the ADB-financed project.

Strengthen the publicity to ensure

that each household has been informed

of the project information

Before the implementation of the project in

2021

Transfer enterprises and their town/ships

and villages

2. The 7 contracts signed by Hunan Xiangyue Tea Culture Communication Co., Ltd., Hunan Jiushizhai Gaoshan Tea Co., Ltd., Pingjiang Huaxing Agricultural and Forestry Development Co., Ltd., Lantian Ecological Planting and Breeding Cooperation and Xinglin Cooperation of Pingjiang County have no female signatures.

Both husband and wife sign together

Before the implementation of the project in

2021

Transfer enterprises and their town/ships

and villages

3. The contract period for the LURT contract signed between Pingjiang Ouyaxin Eco-agricultural Tourism Development Co., Ltd. and the Tangkou Village of Changshou Town is 50 years, which exceeds the period stipulated for cultivated LURT.

Revise and perfect the contract

Before the implementation of the project in

2021

Transfer enterprises and their town/ships

and villages

126

Project Site Interview LURT Forums

127

、

128

Rent and Cash Payment Form of Lantian Ecological Planting and Breeding Farmer

Cooperation of Pingjiang County

Appendix 3

129

Appendix 3: LURT Framework The Project includes five major outputs, including: (i) water-related disaster risk management strengthened; (ii) accessibility to safe drinking water and sanitation services enhanced; (iii) Circular agriculture linked sustainable livestock waste management and eco-farming demonstrated; (iv) Green procurement practices and environmental protection public awareness raising piloted; and (IV) Institutional, technical and management capacity improved. Among them, under Output 4, Subproject 8 (promotion of eco-farming) will involve land use right transfer. According to ADB good practice requirements for voluntary land leases, a land under right transfer (LURT) Framework has been prepared.

1. Project profile 205. In the Subproject 8, there are new camellia garden of 11,842.3 mu and new and slightly renovated tea gardens of 15,497 mu, including 63 agricultural ecological demonstration sites, involving 12 town/ships, including 61 villages. These lands involve LURT. Of these, 8,641 mu has been leased already through LURT; and 15,497 mu will be leased. Due diligence review has been conducted for the leased land (see separate DDR on LURT); and this LURT Framework for the future land leases. Table 1 shows the basic conditions of the sub-project and the villages under Subproject 8. The LURT Framework aims to assist Pingjiang PMO in managing the transfer of the land use-right during implementation of the Project, and meet the requirements of ADB good practices and PRC laws and regulations.

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130

Table 1-1: Basic Conditions of Eco-farming Demonstration Sub-project Location Basic condition of project villages

Land use manner for subproject land

use Project

Town/ship Project village

Construction scale/LURT land (mu)

Construction Year

Village Population Total Village Land (mu)

Total HHs Total

population Female (person) Total area

Cultivated land

Ecological Tea Garden

Wushi Town Yanjia Village 438.2 2021-2023 608 2546 1256 9319 2589 Lease

Sanshi Town

Hengcha Village 303.3 2021-2023 498 2180 965 5899 1180 Lease

Huantian Village 179.1 2021-2023 723 3266 1304 12106 1980 Lease

Sanxing Village 55.8 2021-2023 456 1997 870 8232 1280 Lease

Baofeng Village 34.1 2021-2023 487 2086 1066 6115 1659 Lease

Lianhua Village 776.6 2021-2023 338 1638 823 6031 958 Lease

New Dong'an Village 158.1 2021-2023 923 3957 1957 9465 3280 Lease

Sanjiao Village 73.5 2021-2023 760 3060 1480 13858 1673 Lease

Sandun Township

Lushi Village 443.2 2021-2023 681 2700 1215 14640 1473.5 Lease

Xinxing Village 36.4 2021-2023 675 2741 1234 13215 1848.8 Lease

Huilong Village 682.2 2021-2023 874 3540 1683 28050 2390.7 Lease

Zoujia Village 1887.4 2021-2023 564 2259 1017 13140 1276.1 Lease

Daishi Village 37.2 2021-2023 1011 4134 1860 13830 1803.2 Lease

Zhonglong Village 114.5 2021-2023 780 3189 1436 9530 1980.2 Lease

Chetian Village 51.7 2021-2023 830 3357 1511 18900 1525.3 Lease

Anding Town

Anding Village 35.0 2021-2023 320 1506 662 3337.5 2179.5 Lease

Daqiao Village 138.9 2021-2023 793 3765 1656 8625 5839.5 Lease

Zhima Village 78.7 2021-2023 675 3210 1412 7773 5901 Lease

Jiangdong Village 68.9 2021-2023 428 1651 726 3805.5 2467.5 Lease

Zhenghuang Residents' Committee 170.8 2021-2023 825 3506 1542 7473 5229 Lease

Guantang Village 209.0 2021-2023 591 2560 1126 4411.5 3793.5 Lease

Tianmo Village 214.4 2021-2023 510 2202 968 7026 3561 Lease

Xiaotian Village 31.6 2021-2023 770 3240 1425 11677.5 6198 Lease

Yuetian Village 287.3 2021-2023 350 1583 696 3954 3247.5 Lease

Gaoping Village 86.2 2021-2023 532 2136 939 11364 4836 Lease

Changtian Village 289.2 2021-2023 518 2066 909 7605 3433.5 Lease

Meixian Town

Tiane Village 125.9 2021-2023 531 2049 988 3329 746.9 Lease

Xiabai Village 81.6 2021-2023 614 2379 1124 7106.5 1141.69 Lease

Zheliao Village 108.3 2021-2023 947 3680 1722 12060.5 1866.28 Lease

Jiangyuan Village 304.2 2021-2023 816 3133 1431 12121.5 1696.53 Lease

Donggao Village 58.9 2021-2023 892 3840 1880 8270.5 1394.86 Lease

Gaoyi Village 38.4 2021-2023 611 2251 1050 5598 800.25 Lease

Shiling Village 84.5 2021-2023 629 2404 1117 6150.5 1345.39 Lease

Sanli Village 33.3 2021-2023 665 2485 1180 9648.5 1318.23 Lease

Xiaoyuan Village 233.1 2021-2023 661 2815 1317 8369 1440.45 Lease

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Location Basic condition of project villages Land use manner for subproject land

use Project

Town/ship Project village

Construction scale/LURT land (mu)

Construction Year

Village Population Total Village Land (mu)

Total HHs Total

population Female (person) Total area

Cultivated land

Jiayi Town

Hengjiang Village 81.8 2021-2023 408 1608 716 30450 1719 Lease

Lianhe Village 275.2 2021-2023 356 1760 791 11250 1716 Lease

Yangliu Village 193.4 2021-2023 380 1640 802 16350 1196 Lease

Tanwan Village 466.7 2021-2023 436 2013 890 12750 1603 Lease

Jiayi Village 108.7 2021-2023 426 2975 14586 6000 1301 Lease

Zaolun Village 283.1 2021-2023 404 2024 964 6135 1707 Lease

Lijiang Village 126.0 2021-2023 524 2080 992 20190 1969 Lease

Xianzhong Residents' Committee 47.5 2021-2023 1069 5200 2260 10500 2259 Lease

Tongshi Town

Bangshang Village 110.6 2021-2023 460 1656 815 1157 1067 Lease

Yongxiang Village 33.3 2021-2023 271 1239 600 1050 471 Lease

Dezi Village 112.5 2021-2023 318 1210 490 505 480 Lease

Yanzhou Village 451.7 2021-2023 613 2236 1230 1629 1500 Lease

Yangdun Village 139.8 2021-2023 287 1150 540 670 550 Lease

Hewang Village 991.0 2021-2023 873 3260 1860 1640 1240 Lease

Shidong Village 129.5 2021-2023 300 1206 460 1000 700 Lease

Mujin Town Daxing Village 342.0 2021-2023 649 2760 948 30000 1648 Lease

Subtotal 51 villages 11842.3 2021-2023 30660 129128 72491 483312 106459 Lease

Ecological Camellia Garden

Anding Town Zhongxian Village 248 2021-2023 510 2430 1250 2150 1800 Lease

Fujia Village 300 2021-2023 298 1496 846 2248.88 883 Lease

Sanshi Town

Baiyu Village 413 2021-2023 1182 4286 2078 4052 3314 Lease

Gaohe Village 56 2021-2023 150 2064 986 1886 1346 Lease

Luoping Village 60 2021-2023 376 1636 832 1250 426 Lease

Sanjiao Village 510 2021-2023 760 3180 1460 11778 1673 Lease

Sandun Township

Gongping Village 93 2021-2023 426 1652 680 21680 680 Lease

Meixian Town Jiangyuan Village 118 2021-2023 685 3148 1501 12801 1693 Lease

Nanjiang Town Fenghuangshan Village 832 2021-2023 1448 5109 2299 54054 1400 Lease

Wengjiang Town Zhangyi Village 302 2021-2023 375 1386 683 2692 1082 Lease

Hongqiao Town Mufu New Village 242 2021-2023 366 1560 702 14470 1270 Lease

Fushoushan Town

Luxi Village 480 2021-2023 941 4143 1960 29004 2906 Lease

Subtotal 12 villages 3654 2021-2023 7517 32090 15277 158066 18473 Lease

Total 12 61 villages 15497 2021-2023 38177 161218 87768 641378 124932 Lease

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2. Objectives and Principles 2.1 Objectives The LURT Framework aims to assist Pingjiang PMO in managing the transfer of the land use-right during implementation of the Project, and meet the requirements of ADB and PRC laws and regulations. 2.2 Principles

(1) Equality, voluntariness, legal procedures and fair compensation. Equality means that both parties have equal legal status. Voluntariness means that the transfer of the right to contract and use lands must be completely voluntary for both parties, and one party shall not force the other party to make or accept the transfer. Legal procedures mean that the land use-right must be transferred in accordance with the laws stipulated in the legal agreement. Fair compensation means that the land use-right transferred shall be compensated according to the agreed market price.

(2) The ownership and the nature of the agricultural land transferred remain unchanged. The transfer of the land use-right excludes the ownership, so the ownership of the land transferred remains unchanged. However, the future users of the land transferred shall not change the nature of agricultural land, that is, they shall not change the land transferred to non-agricultural use.

(3) Government guidance. Pingjiang PMO and relevant government departments guide the legal transfer of rural land.

(4) Grievance will be addressed through grievance redress mechanism (GRM). GRM of the Project shall be used for any grievance.

3. Legal Framework

The preparation and implementation of the LURT of the Project shall be in accordance with relevant laws of PRC and relevant provisions of Hunan Province. 3.1 Main laws, regulations and policies of PRC 3.1.1 Main laws, regulations and policies of PRC:

1. Law of the People's Republic of China on the Contracting of Rural Land (secondly

amended on December 29, 2018) 2. Measures for the Administration of Management-Right Transfer of Rural Land (amended

draft for comments), officially implemented on January 1, 2020; 3. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage

Rural Land (for Trial Implementation) (June 29, 2016) 4. Rules for the Operation of the Circulation and Trading Markets of the Right to Manage

Rural Land in Hunan Province (for Trial Implementation) (November 18, 2016) 5. Law of the People's Republic of China on Mediation and Arbitration of Disputes over

Contracting and Management of Rural Land) (starting since January 1, 2010) 3.1.2 Summary of important legal provisions 1) Law of the People's Republic of China on the Contracting of Rural Land

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Article 3 The State applies the rural land contracting and management system. The rural land such as barren mountains, ditches, hills and beaches that are not suitable for household contracting may be contracted by means of bidding, auction and public consultation. Article 6 Women and men have equal rights in contracting rural land. The legitimate rights and interests of women shall be protected in the contracting. No organizations or individuals shall exploit or infringe upon the rights for land contracting and management that women shall enjoy. Article 7 During contracting of rural land, the principle of openness, fairness and justice shall be followed, and the interest relationships of the state, the collective and the individual shall be correctly dealt with. Article 36 The contractor may, on its own, decide to transfer the rights for land management to others by means of lease (subcontracting), buying shares or other means in accordance with the laws, and shall put it on record with the employer. Article 38 The transfer of the rights for land management shall be in line with the following principles:

(i) Be on the basis of the laws, voluntariness and compensation, and no organization or individual may force or hinder the transfer of the rights for land management;

(ii) The nature of the land ownership and the agricultural use of the land shall not be changed, and the comprehensive agricultural production capacity and agricultural ecological environment shall not be damaged;

(iii) The transfer time limit shall not exceed the remaining time limit of the contract period; (iv) The transferee must have agricultural operation ability or qualification; (v) Under the same conditions, the members of this collective economic organization enjoy

priority. Article 40 Both parties shall sign a written transfer contract for the transfer of the rights for land management. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written contract. Article 41 Where the time limit for the transfer of the rights for land management is more than five years, the parties concerned may apply to the registration agency for the registration of the rights for land management. Without registration, it shall not act against the third party. Article 42 The contractor shall not unilaterally terminate the contract for the transfer of the rights for land management, unless the transferee:

(i) Changes the agricultural use of the land without authorization; (ii) Abandons or discontinues farming for more than two consecutive years; (iii) Seriously damages the land or destroy the ecological environment of the land; (iv) Has other serious breaches of contract.

Article 46 With the contractor's written consent and after report to the collective economic organization for the record, the transferee may transfer the rights for land management again. Article 50 Barren hills, ditches, hills, beaches, etc. may be contracted directly through bidding, auction, disclosure, consultation, etc., or the rights for land management may be converted into shares and distributed to the members of the collective economic organization before contracting

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or joint-stock operations. Article 52 When the contract-issuing party contracts out rural land to an organization or individual other than the collective economic organization, it shall obtain the consent of more than two-thirds of the members of the villagers' meeting or more than two-thirds of the villagers' representatives of the members of the collective economic organization in advance, and submit to the township people's government for approval. Article 53 Where rural land is contracted through bidding, auction, disclosure, consultation, etc., and a certificate of ownership is obtained through registration according to the laws, the rights for land management may be transferred by lease, buying shares, mortgage or other means according to the laws. 2) Measures for the Administration of Management-Right Transfer of Rural Land; Article 2 The transfer of rural land contracting and management rights shall conform to the principles of equal consultation, lawfulness, voluntariness and compensation. Article 4 The transfer of rural land contracting and management rights shall not change the nature of ownership or agricultural use of the contracted land, or damage the overall agricultural productivity or the agricultural ecological environment. The time limit of transfer shall not exceed the residual maturity of the contract period; the transfer shall not damage the lawful rights and interests of the interested parties and rural collective economic organizations. Article 9 If the contractor voluntarily entrusts the contract-issuing party or an intermediary organization to transfer its land management rights, the contractor shall issue a letter of authorization for the transfer. The letter of authorization shall state the matters, authority and time limit of the entrustment, and shall be signed or sealed by the principal and the trustee. Without the contractor's written authorization, no organization or individual has the right to determine the transfer of farmers' land management rights in any way. Article 22 The contractor shall sign a transfer contract with the transferee on the basis of consensus through consultation. The transfer contract is made in quadruplicate, with both transfer parties holding one copy each, and the contract-issuing party and the rural land contract management authority of the township people's government keeping one copy each for record. If the contractor transfers the land to others for cultivation for a period of not more than one year, it may not sign a written transfer contract. Article 24 The contract for the transfer of the rights for land management generally includes the following contents:

(i) The name and address of both parties; (ii) The name, four boundaries, location, area, quality grade of the land transferred; (iii) The time limit and the starting and ending date of transfer; (iv) Transfer mode; (v) The use of the land transferred; (vi) The rights and obligations of both parties; (vii) Transfer price and payment method; (viii) Disposal of ground ancillaries and related facilities after expiration of contract; (ix) The ownership of relevant compensations when the land is expropriated, acquired or

occupied according to the laws; (x) Liability for breach of contract.

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The text format of the transfer contract of rural land management rights shall be determined by the competent agriculture and rural authorities of provincial people's governments. Article 27 The rural land contract management authority of township people's governments shall timely provide the contractor who has reached the intention of circulation with a transfer contract in uniform text format and guide the signing of the contract. Article 28 The rural land contract management organization of the township people's government shall set up the ledger for the transfer of the rights for the management of rural land and record the transfer timely and accurately. Article 29 The rural land contract management organization of the township people's government shall file and properly store the transfer contract of the rights for the management of rural land and relevant documents, datum, etc. Article 32 In the process of guiding the signing of the transfer contract, the rural land contract management organization of the township people's government finds that both parties of the transfer have violated the provisions of laws and regulations, and shall promptly make correction. Article 35 The industrial and commercial enterprises and other social capital shall meet the following qualifications when they obtain the rights for land management through transfer:

(i) Have the qualification to be engaged in agricultural management; (ii) Have suitable agricultural management ability; (iii) Have other necessary conditions.

Article 37 The industrial and commercial enterprises and other social capital shall not do the following acts when they obtain the rights for land management through transfer:

(i) Dig ponds and plant trees on basic farmland; (ii) Build houses, excavate sand, stones and ore, and borrow soil on cultivated land

without authorization; (iii) Change the use of the land without authorization; (iv) Damage the land or destroy the ecological environment of the land; (v) Have other acts damaging the land.

Article 38 The county people's government shall establish a review committee composed of administrative departments in charge of agriculture and rural affairs, finance, development and reform, natural resources, environmental protection and ecological environment, and market supervision and management, as well as representatives of the rural collective economic organization, farmers' representatives, agricultural experts, etc., for examination and review of obtaining of the rights for the management of rural land by industrial and commercial enterprises and other social capital by transfer. The routine work of the review committee shall be in the charge of the administrative department in charge of agriculture and rural affairs. Article 47 Where a dissension or dispute arises over the transfer of rural land management rights, the parties may settle the dispute through consultation or apply to the villagers' committee or the township people's government for mediation. If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to rural land contract arbitration organization for arbitration, and they may bring a suit before a people's court.

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3) Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land (for Trial Implementation) (June 29, 2016) Article 9 The trading market of transfer of rural land management rights publicly release the supply and demand information. The information mainly includes the following contents:

(i) Basic information of transferred land (including land location, the four boundaries, area, quality level, land use actuality, expected price, mode of transfer, purpose of transfer and other contents);

(ii) Basic information and related conditions of transferors or transferees; (iii) Other matters as required to be publicized.

Article 12 The floor price of the transfer of the rights for the management of the land not contracted by the collective economic organization shall be determined by the collective of the farmers upon democratic consultation. Article 15 In accordance with the relevant requirements of the market for the transfer of the rights for the management of rural land, both parties to the transfer can obtain the verification of the transfer provided by the market for the transfer of the rights for the management of rural land after signing the contract. Article 24 The trading market of transfer of rural land management rights shall formulate the service regulations and take necessary measures to ensure the trading of transfer of rural land management rights is open, fair and standardized, and shall consciously accept the supervision from the public and the administration from relevant authorities according to law. 4) Rules for the Operation of the Circulation and Trading Markets of the Right to Manage Rural Land in Hunan Province (for Trial Implementation) (November 18, 2016) Article 6 The trading of transfer of rural land management rights may take the forms of transfer by agreement, competitive pricing, auction, bidding and other modes as stipulated by the laws and regulations of the State. The transferor shall make it clear at the time of submission that, upon the expiration of the project information release period, if a qualified inclined transferee is collected, the mode of transfer by agreement will be adopted; when two or more qualified inclined transferees are collected, what kind of public trading mode they will use? If the mode of bidding is selected, the bid evaluation methods and criteria shall be disclosed at the same time. Article 7 Rural collective economic organizations, contracted farmers, family farms, large professional households, professional farmers’ cooperative federation, agricultural enterprises and other new agricultural business entities, as well as other organizations or individuals with the agricultural production and management capacity, can all conduct the trading in the trading market of transfer of rural land management rights according to law. Article 15 The time limit for publicity of rural land management rights transfer information shall be no less than 10 working days. A time interval shall be set for the recirculate transaction of the management rights of the same land, which shall not be less than 20 working days in general. After the end of the publicity period, the rural land management rights transfer market shall organize the transaction. 5) Law of the People's Republic of China on Mediation and Arbitration of Disputes over Contracting and Management of Rural Land)

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Article 3 In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers' committee or the township people's government for mediation. Article 4 If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court. Article 7 The Villagers' Committee and the township people's government shall strengthen the mediation of disputes over the contracting and management of rural land and assist the parties to reach an agreement to resolve the disputes. Article 10 If an agreement is reached through mediation, the Villagers’ Committee or the township people's government shall prepare a mediation agreement. Article 11 The tribunal shall mediate the disputes over the contracting and management of rural land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall make an arbitration award in a timely manner. Article 18 The application for arbitration of disputes over the contracting and management of rural land shall be valid for two years from the date when the parties know or should know that their rights have been infringed. Article 23 Where the Rural Land Contracting Arbitration Commission decides to accept the application, it shall, within five working days from the date of receiving the application for arbitration, deliver the notice of acceptance, arbitration rules and the list of arbitrators to the applicant; if it decides not to accept or terminate the arbitration procedure, it shall notify the applicant in writing within five working days from the date of receiving the application for arbitration or discovering the circumstances of terminating the arbitration procedure, and state reasons. Article 24 The Rural Land Contracting Arbitration Commission shall, within five working days from the date of accepting the application for arbitration, deliver the notice of acceptance, copy of the application for arbitration, the arbitration rules and the list of arbitrators to the respondent. Article 25 The respondent shall, within ten days from the date of receiving the copy of the application for arbitration, submit the statement of defence to the Rural Land Contracting Arbitration Commission. If it is really difficult to complete written defence, the respondent may make oral defence, but such shall be included in the written records by the Rural Land Contracting Arbitration Commission, and signed, sealed or fingerprinted by the respondent after verification. The Rural Land Contracting Arbitration Commission shall, within five working days from the date of receiving the statement of defence, deliver the copy of the statement of defence to the applicant. The failure of the respondent to submit a defence shall not affect the proceeding of the arbitration procedures. Article 30 The arbitration concerning disputes over contracting and management of rural land shall be held in court. Article 32 After the submission of an arbitration application, the parties may settle the dispute among themselves through conciliation. If a conciliation agreement has been reached, the parties may apply to the arbitration tribunal for an award based on the conciliation agreement. Then may also withdraw the arbitration application. Article 44 The tribunal shall make a decision and make an award in accordance with the facts,

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laws and state policies it has determined. An award shall be based on the opinion of the majority arbitrators. The opinion of the minority arbitrators shall be recorded in writing. If an opinion of the minority arbitrators shall be recorded in writing. If an opinion of the majority arbitrators cannot be constituted at the tribunal, the award shall be given according to the opinion of the presiding arbitrator. Article 45 The Rural Land Contracting Arbitration Commission shall, within three working days from the date of making the award, deliver the award to the parties and inform them of their right to sue and the time limit for refusing to accept the award. Article 46 The tribunal shall perform its duties independently according to the laws without interference of administrative organs, social organizations or individuals. Article 47 The arbitration of disputes over contracting and management of rural land shall be completed within sixty days from the date of accepting the application for arbitration; where the case is complicated and needs to be extended, the extension may be made with the approval of the chairman of the Rural Land Contracting Arbitration Commission, and the parties shall be notified in writing, but time limit of the extension shall not exceed thirty days. Article 48 If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award shall be legally effective immediately. Article 49 The parties shall, in accordance with the prescribed time limit, perform the legally effective conciliation statement and award. If one party fails to comply with the arbitral award, the other party may apply for its enforcement to the basic people's court of the place where the party against whom the application for enforcement is made has his domicile or where his property is located. The people's court accepting the application shall execute it according to the laws. 3.2 Relevant requirements of ADB on good practices for voluntary land use agreement In the process of signing and implementing voluntary land use agreements, the following requirements shall be met;

1) The principles of fairness, openness, impartiality and voluntariness; 2) The principle of gender equality; 3) The principle of consultation; 4) Establishment and operation of grievance redress mechanism (GRM); 5) External monitoring during implementation.

4 Transfer Procedures of LURT According to the above laws, regulations and policies on the transfer of the land use, procedures for the LURT for the Project are as follows (see the figure below at the same time):

Information collection. Farmers intending to transfer the land use-right shall submit detailed data on the land (such as location, area, use and reference price) to the villagers' committee and then report to the township people's government.

Information disclosure.

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After collecting the information, the township people's government will sort out the transfer information of land use-right of each village and establish a database. The information sorted out will be disclosed in time by means of network, broadcast, newspaper, blackboard newspaper, electronic display screen, etc. The township people's government will also update the database of the transfer of the land use-right.

Consultation between both parties. According to the arrangement of the township people's government, both parties shall consult the conditions and prices for the transfer of the land use-right on the basis of equality, voluntariness and mutual benefit.

Signing of the transfer contract of land use-right. When both parties reach an agreement on conditions and prices, the township people's government shall provide 4-5 copies of the standard contract (the fifth copy for approval if necessary) for both parties to sign.

Approval of the transfer contract of land use-right. The township people's government verifies and approves the contract as needed.

Registration of transfer of the land use-right. The township people's government timely and accurately registers the transfer information of land use-right, and submits relevant materials to the PMO for documentation.

Documents preparation. The land owner/user of land use-right shall lease the land use-right under the guidance of the PMO, and document relevant materials of the land use-right transferred.

Supervision of the implementation of the contract. Both parties shall actively perform the contract, and the township people's government shall supervise the performance of the contract. In case of any conflict or dispute, the township people's government shall timely report to the PMO.

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Diagram of Transfer Procedures of Land Use-right

5 Contents of LURT Contract The LURT contract of land use-right shall contain the following clauses:

(1) The name and address of both parties; (2) The location, four boundaries, area and quality of the land transferred; (3) The time limit of the transfer and the starting and ending date; (4) Method of transfer; (5) Land purpose; (6) Rights and obligations of both parties; (7) Transfer expenses and disbursement methods of land use-right; (8) Disposal of ancillaries and related facilities after expiration of contract; (9) Liability for breach of contract; (10) Conflict resolution methods; (11) Other measures that both parties deem necessary; (12) The seal of the approval agency; and (13) Date of contract.

Registration form of employer

The employer performs the contract

Registration form of contractor

The contractor performs the contract

Contract execution

Endorsement contract, if required

Sign the standard contract

Fill in the standard contract of land use-right transfer

Negotiation

Information disclosure

Land use-right transfer database

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6 Measures for Protecting the Rights and Interests of the Parties to the LURT Contract During the signing and execution of the contract, the following measures will be taken to protect the rights and interests of the parties to the contract:

1) During the validity period of the contract, if the land transferred is seriously damaged due to natural disasters or force majeure, both parties can terminate or change the contract through consultation and return the land to the original user. Where there are specific contractual provisions on serious damage to land, such provisions shall prevail.

2) The land lease contract involving each family shall be signed by the couple. 3) The contract shall be approved by the township people's government free of charge. 4) In accordance with the Rural Land Contract Law of the People's Republic of China, the

Measures for the Administration on the Contracting and the Transfer of the Right to Use Rural Lands and the relevant laws and policies of provinces, cities and counties on the transfer of the land use-right, the time limit of the transfer of the land use-right shall be consulted by both parties on the basis of equality.

5) The transfer price of the land use-right is determined according to the market price, namely, referring to the local similar cases of the transfer of the land use-right and combining the land type, grade, crop growth or the transfer price of the land use-right in the nearby villages. For the transfer of the land use-right with a time limit of more than 5 years, both parties shall set the time for reconsultation of the land price in consideration of the interests of the farmers.

6) As part of the external social monitoring conducted by the EMA, sample LURT contracts (no less than 5% of total contracts in each town) will be reviewed by the external monitor prior to commencement of work on relevant land plots.

7 GRM As the transfer contract of the land use-right is based on mutual consultation and agreement, it is unlikely to cause huge disputes. However, disputes may occur during the LURT. In accordance with the Law of the People's Republic of China on the Mediation and Arbitration of Rural Land Contract Disputes, a transparent and effective GRM is established in the Project to resolve disputes after the transfer of the land use-right. The process is as follows:

In the case of a dispute over land contract and management, the parties may reconcile themselves or request the villagers' committee or the township people's government for mediation. If an agreement is reached through mediation, the Villagers’ Committee or the township people's government shall prepare a mediation agreement.

If the parties are unwilling to resort to negotiation or mediation, or the negotiation or mediation proves to be unsuccessful, they may apply to the rural land contract arbitration commission for arbitration, and they may file a lawsuit in People's Court. a. The tribunal shall mediate the disputes over the contracting and management of rural

land. If an agreement is reached through mediation, the tribunal shall prepare the mediation documents; if the mediation fails, the tribunal shall made an arbitration award in a timely manner.

b. If the parties refuse to accept the arbitration award, the parties may bring a lawsuit to a people's court within 30 days from the date of receiving the award. If no lawsuit is brought within the time limit, the arbitration award shall be legally effective immediately.

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8 Implementation Management and Responsibilities In accordance with relevant laws and regulations, Pingjiang PMO, BARA of Pingjiang County and township people's government will manage and guide the transfer of the LURT in their respective administrative areas. 1) Responsibilities of PMO

1) Employ an external monitor to review and verify the contract, and make a review report

as part of monitoring report for to be submitted to ADB; 2) Supervise the signing and performance of the contract; 3) Participate in the resolution of disputes/conflicts; 4) Prepare the standard contract for the whole project; 5) Guide LURT throughout the process.

2) Responsibilities of township people's government

1) Collect, analyze and disclose information; the transfer contract of the land use-right can be signed at the location of the township people's government;

2) Provide the standard contract for farmers/the villagers' committee to assist them in reaching agreement on the contract clauses and conditions and sign the contract;

3) Verify and approve the contract signed as a third party; 4) Register the transfer information of the land use-right timely and accurately; 5) Document the transfer materials of land use-right; 6) Investigate and correct the illegal transfer of the land use-right; 7) Resolve the disputes related to the transfer of the rural land use-right 8) Guide and manage the transfer of the land use-right according to the laws; 9) Provide consultation services.

3) Responsibilities of villagers' committee

1) Report the collection and classification of transfer information of the land use-right to the

township people's government; 2) Assist the township people's government to resolve disputes.

9 External Social Monitoring To carry out external social monitoring on the Project, the PMO will employ an external monitor, same for RP, LURT and corrective actions agreed in DDRs. The external monitor will also monitor LURT, including due diligence review of LURT contract before starting work on the relevant land and will include findings of the due diligence in monitoring reports to be submitted to ADB. See Table 9-1 for the outline of the due diligence.

Table 9-1: Outline of LURT Due Diligence

No. Key requirements Verification of indexes of various requirements

1 Transparency

Has the counterparty (family or village collective) obtained information about the Project?

Has the counterparty obtained information about the specific use of the land?

Does the counterparty support the Project and the intended land use?

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2 Consultation

Is the counterparty involved in the consultation process (for example, meeting)?

Has the content of the agreement been explained to the counterparty?

Have consultations also been held with spouses and/or other family members of the counterparty?

3 Voluntary

Does the counterparty sign the agreement without pressure?

Do spouses and/or other family members agree on leasing the counterparty's land?

4 Equity/equality

Is the rent equivalent to the average annual output value or market price of the land?

Is there any provision for regular rent adjustment?

In case of disputes, can the counterparty turn to GRM?

Does the counterparty receive the rent according to the contract? Is it paid in cash or through the bank?

5 No adverse effects Is the counterparty likely to be adversely affected (livelihoods, etc.)?

Does the contract address any potential impact?

6 Written documents

Has the counterparty been provided a written contract?

Is the contract written in words that are easy for the counterparty to understand?

7 Third-party verification

Is the contract verified/certified by a third party?

Is a copy of the contract provided to a third party? Such as agriculture affairs office and/or land management office under town government.

8 Legal and policy compliance

Does the contract comply with relevant laws and policies?

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144

Appendix 4: Land Acquisition Due Diligence 1. The Project involves four facilities that have already conducted land acquisition, namely, (1) Mishui Commercial Center, (2) Shoujiaping Logistic Project, (3) Yihuacheng Project and (4) the Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area. The land acquisition for Mishui Commercial Center was completed in September 2017, the Shoujiaping Logistic Project was completed in May 2019, the Yihuacheng was completed in January 2020, and the Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area was completed in April 2020. Table 1 summarizes the basic information of conducted land acquisition.

Table 1: Basic Information of conducted land acquisition

No. Component Town/ship Village Project nature Land

area (mu) Current Land

nature Acquisition time (year)

1 Mishui

Commercial Center Project

Sanyang Getengping

Village Construction 70.15

State-owned construction

land Sep 2017

2 Shoujiaping

Logistic Project Chengguan Gucheng Government

logistic 9.3

State-owned construction

land May 2019

3 Yihuacheng

Project Sanyang Daxi Construction 29.03 State-owned construction

land Jan 2020

4

Logistic Project at the Plot on South Side of Xianjiang River in Dazhong

Resettlement Area

Sanyang Daxi Government logistic

32.96 State-owned construction

land Apr 2020

5 Total 141.45

Picture of current land Status

1. Purpose of due diligence 2. The purposes of land acquisition due diligence are to:

• check the land acquisition and resettlement of APs to confirm they conform to the laws, regulations and policies of the State and Hunan Province;

• ensure the resettlement process, resettlement expense management, income recovery

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and satisfaction of APs was conducted or achieved, and that participation of the female APs and their rights are protected during land acquisition;

• ensure they protect the vulnerable groups and ensure compliance of supporting policies, public participation, information disclosure and grievance redress mechanism; and

• identify if there are any problems in resettlement and put forward feasible suggestions. 2. Method 3. The land acquisition area for Mishui Commercial Center Project is 70.15 mu, including 28.35 mu cultivated land in the scope of Group 6, Group 10 and Group 8 in Getenping Village, Sanyang Township, Pingjiang County. All 70.15 mu acquired land affected 142 persons from 28 households, including 92 rural labors and 60 females. 4. The land acquisition area for Shoujiaping Logistic Project is 9.3 mu, with 5.76 mu cultivated land; the scope of land acquisition involves Huachuan Group in Gucheng Village, Chengguan Town, Pingjiang County. All 9.3 mu acquired land affected 19 persons from 4 households, including 8 rural labors and 7 females. 5. The land acquisition area for Yihuacheng Project is 29.03 mu, with 13.74 mu cultivated land; the scope of land acquisition involves Kongming Group, Changtang Group and Xiaojia Group in Daxi Village, Sanyang Township, Pingjiang County. All 29.03 mu acquired land affected 61 persons from 12 households, including 27 rural labors and 23 females. 6. The land acquisition area for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, with 26.26 mu cultivated land; the scope of land acquisition involves Xinwu Group and Chenjia Group in Daxi Village, Sanyang Township, Pingjiang County. All 32.96 mu acquired land affected 68 persons from 15 households, including 30 rural labors and 29 females. Table 2 summarizes the basic information of land acquisition of the four projects.

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Table 2: Basic Information of Land Acquisition of the four Projects (Unit: mu)

No. Component Town/ship Village Group

Type of land acquisition

Subtotal Paddy field

Dry land

Forest land

Pond surface

Rural roads

Other construction

land

Total 141.45 40.45 33.66 22.13 9.70 4.71 30.79

1 Mishui Commercial Center

Project 70.15 28.35 22.13 8.07 2.92 8.68

Sanyang 70.15 28.35 22.13 8.07 2.92 8.68

Getengping

Village 70.15 28.35 22.13 8.07 2.92 8.68

Group 6 29.71 10.50 8.24 6.30 1.02 3.65

Group 10 16.80 6.18 5.27 0.60 1.90 2.85

Group 8 23.64 11.67 8.62 1.17 2.18

2 Shoujiaping Logistic Project 9.30 4.99 0.77 3.54

Chengguan 9.30 4.99 0.77 3.54

Gucheng 9.30 4.99 0.77 3.54

Huachuan 9.30 4.99 0.77 3.54

3 Yihuacheng Project 29.03 11.24 2.50 15.29

Sanyang 29.03 11.24 2.50 15.29

Daxi 29.03 11.24 2.50 15.29

Kongming 6.63 2.25 4.38

Changtang 8.15 3.46 4.69

Xiaojia 14.25 5.53 2.50 6.22

4

Logistic Project at the Plot on South Side of Xianjiang River

in Dazhong Resettlement Area

32.96 24.22 2.04 1.63 1.79 3.28

Sanyang 32.96 24.22 2.04 1.63 1.79 3.28

Daxi 32.96 24.22 2.04 1.63 1.79 3.28

Xinwu 17.30 15.8 1.5

Chenjia 15.66 8.42 2.04 1.63 1.79 1.78

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3. Land acquisition procedures 7. Mishui Commercial Center Project: the land acquisition procedures involved:

• On April 10, 2017, the PGPC issued proposed LA announcement in Getengping Village of Sanyang Township for the land use of Mishui Commercial Center Project;

• On May 12, 2017, LAHDC organized a land acquisition and mobilization meeting in Getengping Village;

• On June 24, 2017, PCG issued LA announcement in Getengping Village of Sanyang Township for the land use of Mishui Commercial Center Project;

• On September 5, 2017, the Land Acquisition and Housing Demolition Center of Pingjiang County (Party A) and the Villagers’ committee of Getengping Village in Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2017] No. 56”;

• In June 2020, confirmed the land use for the Project - the construction project of the 6th batches of towns in Pingjiang County in 2019 and the construction project of the 17th batches of towns in Pingjiang County in 2019 have been approved by People's Government of Hunan Province. The land use for Mishui Commercial Center Project is 70.15 mu, with 28.35 mu cultivated land.

8. Shoujiaping Logistic Project: the land acquisition procedures involved:

• On March 2, 2019, PCG issued proposed LA announcement in Gucheng Village of Chengguan Town for the land use of Shoujiaping Logistic Project;

• On March 20, 2019, LAHDC organized a land acquisition and mobilization meeting in Gucheng Village;

• On April 3, 2019, PCG issued LA announcement in Gucheng Village;

• On May 24, 2019, the Land Acquisition and Housing Demolition Center of Pingjiang County (Party A) and the Villagers’ committee of Gucheng Village in Chengguan Town (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2019] No. 25”;

• In June 2019, confirmed the land use for the Project - the construction project of the 21st batches of towns (shantytowns transformation) in Pingjiang County in 2017 has been approved by People's Government of Hunan Province. The land use for Shoujiaping Logistic Project is 9.3 mu, with 5.76 mu cultivated land.

9. Yihuacheng Project: the land acquisition procedures involved:

• On June 27, 2018, Yihua Dajiang Investment Co., Ltd. and PCG signed the “Investment and Development Contract of Yihuacheng in Pingjiang Country”;

• On August 20, 2019, PCG issued proposed LA announcement in Daxi Village of Sanyang Township for the land use of Phase II of Yihuacheng Project;

• On September 5, 2019, LAHDC organized a land acquisition and mobilization meeting in Daxi Village of Sanyang Township;

• On October 30, 2019, PCG issued LA announcement in Daxi Village of Sanyang Township for the land use of Phase II of Yihuacheng Project;

• On January 8, 2020, LAHDC (Party A) and the Villagers’ committee of Daxi Village of Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2020] No. 11”;

• In June 2020, confirmed the land use for the Project - the construction project of the 17th batches of towns in Pingjiang County in 2020 has been approved by BNR in terms of preliminary review and site selection of construction land. At present, the provincial land approval procedures of the Project are being handled. The land use for Yihuacheng

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148

Project is 29.03 mu, with 13.74 mu cultivated land. 10. Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area: the land acquisition procedures involved:

• On April 5, 2019, PCG issued proposed LA announcement in Daxi Village of Sanyang Township for the land use of Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area;

• On April 25, 2019, LAHDC organized a land acquisition and mobilization meeting in Daxi Village of Sanyang Township;

• On June 10, 2019, PCG issued LA announcement in Daxi Village of Sanyang Township for the land use of Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area;

• On April 13, 2020, AHDC (Party A) and the Villagers’ committee of Daxi Village in Sanyang Township (Party B) signed the Agreement on Land Acquisition Compensation, with the contract signing No. of “PZDBH [2019] No. 25”; In June 2020, confirmed the land use for the Project - Dazhong bungalow renovation construction project in Pingjiang County, Dazhong commercial service center construction project in Pingjiang Count and Dazhong agricultural trade market construction project in Pingjiang County have been approved by People's Government of Hunan Province. The land use for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, with 26.26 mu cultivated land.

4. Resettlement Policies and Measures for APs 11. The land use for Mishui Commercial Center Project is 70.15 mu, and the land acquisition for the Project started in April 2017. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2012] No. 46), the Notice of Yueyang

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149

Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2013] No. 2), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of People's Government of Pingjiang County on Issuing the Implementation Measures for Employment Training and Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZF [2012] No.16). The compensation standard is: CNY 41,900 / mu for paddy field and CNY 33,520 / mu for dry land; and CNY 13,333 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 3,010,600, including CNY 2,075,300 for land compensation and CNY 935,300 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation. 12. The land use for Shoujiaping Logistic Project is 9.3 mu, and the land acquisition for the Project started in March 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 742,200, including CNY 556,200 for land compensation and CNY 186,000 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation. 13. The land use for Yihuacheng Project is 29.03 mu. The land acquisition for the Project started in August 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2013] No. 9) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 2286,300, including CNY 1705,700 for land compensation and CNY 580,600 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation. 14. The land use for Logistic Project at the Plot on South Side of Xianjiang River in Dazhong Resettlement Area is 32.96 mu, and the land acquisition for the Project started in April 2019. The compensation for land acquisition was in accordance with the Notice of the People's Government

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150

of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5), the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8), Notice of People's Government of Pingjiang County on Adjusting Compensation Standards for Land Acquisition in Pingjiang Country (PZF [2020] No. 2) and A Notice of Office of PCG on Issuing the Implementation Measures for Endowment insurance for Land-loss Farmers (LLFs) in Pingjiang County (PZBF [2018] No. 26). The compensation standard is: CNY 63,840 / mu for paddy field and CNY 53,200 / mu for dry land; and CNY 20,000 / mu for endowment insurance of LLFs. The land compensation cost of the Project is CNY 2690,100, including CNY 2030,900 for land compensation and CNY 659,200 for endowment insurance of LLFs. According to the comparative analysis of resettlement price of paddy field and dry land between compensation unit price and net output value in the Project (Table 3 and Table 4), it can be found that the compensation standards of paddy field and dry land adopted in the Project can meet the requirements of land replacement price compensation. 15. The compensation for APs in land acquisition of each project was made in the form of monetary compensation. The land compensation fee and resettlement subsidies have been paid to the collective economic organizations whose land has been acquired. In addition, in order to effectively protect the fundamental interests of LLFs, the local government also handled social security for 201 eligible people among the APs.

Table 3: Input and Output Analysis of Land Use in Recent Three Years (2017-2019)

Type

Output per mu Input per mu Net income per mu

(CNY/mu) Rice

income Vegetables Others Subtotal Seed

fee

Chemical fertilizer

fee

Pesticide fee

Others Subtotal

Paddy field 1,182 797 142 2,121 30 165 80 410 685 1,436

Dry land 1,437 221 658 20 165 70 210 465 1,193

Note: the output per mu comes from the Analysis Table of Annual Output of Cultivated Land in the Project; the input per mu comes from Calculation of Materialized Cost per mu of Cultivated Land

Table 4: Comparative Analysis of Compensation Unit Price and Replacement Price

No. Component Land type

Compensation fee per mu (CNY / mu) Bank interest

rate (more than 3 years)

Risk-free income

(CNY/mu)

Net output value of

land (CNY/mu)

Surplus (CNY /

mu)

Land compensation

fee

Endowment insurance

fees for LLFs Subtotal

1 Mishui Commercial

Center Project Paddy field 41,900 13,333 55,233 2.75% 1,519 1,436 83

Dry land 33,520 13,333 46,853 2.75% 1,288 1,193 95

2 Shoujiaping Logistic

Project Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870

Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820

3 Land use for

Yihuacheng Project Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870

Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820

4

Logistic Project at the Plot on South Side of Xianjiang River in Dazhong

Resettlement Area

Paddy field 63,840 20,000 83,840 2.75% 2,306 1,436 870

Dry land 53,200 20,000 73,200 2.75% 2,013 1,193 820

5. Information disclosure, participation and grievance redress mechanism (1) Information disclosure and public participation 16. After the project initiation, the local government department posted a project announcement on the project site to commence publicity of the project; the NRB issued Proposed LA Announcement, organized and convened land acquisition mobilization meeting to enable the mass to understand project name, land acquisition scope, land acquisition time, compensation

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151

standard and settlement, getting support from migrant for the project. 17. During land acquisition, LAHDC publicized in batches the physical indexes of LA in different villages and groups, accepted villagers' opinions, organized review in time for any error information and published again after modification as well as accepted villagers' supervision. LAHDC, Pingjiang County urban Construction, Development and Investment Co., Ltd., the people's government of townships at all levels and person in charge of relevant units had a full communication and negotiation with the person in charge of villagers' committee of three villages as Gucheng Village, Daxi Village and Getengping Village on land acquisition area, land category, compensation standard and other matters and concluded "Agreement on Land Acquisition Compensation" respectively with the collective economic organization of villages after reaching an agreement. The villagers' committee of three villages as Gucheng Village, Daxi Village and Getengping Village discussed and negotiated with their villagers on the distribution and handling of expenses of the land acquisition compensation and production resettlement scheme of all villages, and the village groups convened representatives to have a discussion and negotiation and reached an agreement. 18. During land acquisition, women shared the same rights with men and participated in the whole land acquisition process. Most of men handled affairs or work outside at day time, and the No. of women was even more than that of men in AHHs during land acquisition, including participating in physical survey on land acquisition, discussion on resettlement scheme and coordination meeting of villages.

Land Acquisition Mobilization Meeting Resettlement Compensation Consultation

Meeting (2) Grievance redress mechanism 19. A grievance redress mechanism was established for land acquisition of the Project. In case of any complaints for land acquisition and resettlement, APs due to LA could report to the villagers' committee, and the villagers' committee (or APs) could negotiate directly with the local land acquisition and house demolition implementation agency to solve, or complain orally or in written to the superior land acquisition and resettlement implementing and management agency. Upon receipt of the complaint, the superior land acquisition and resettlement implementing agency would record and address issue jointly with the relevant villagers' committee and local land acquisition and resettlement implementing agency within a rational work cycle. In the event of conflicts and disputes that cannot be solved through negotiation, the villagers' committee could complain to the administrative organ with jurisdiction by levels following the complaint channels in accordance with the Administrative Procedure Law of the People's Republic of China; If still not satisfied with the results, the villagers' committee could initiate legal proceedings to the people's

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152

court or initiate legal proceedings directly to the people's court. 20. After survey, it was found APs due to LA agreed with the land acquisition procedure and compensation of the Project, and confirmation of no complaint about land acquisition was received from APs due to LA. 6. Follow-up investigation and interview 21. The land acquisition of 141.45 mu affected 3 villages as Gucheng Village, Daxi Village and Getengping Village in 2 townships as Chengguan Township and Sanyang Township of Pingjiang County, and no house demolition was involved in land acquisition of the Project. To know the recent situation of affected person, in June 2020, follow-up investigation was carried out for 290 persons from 59 households in three villages as Gucheng Village, Daxi Village and Getengping Village. 22. According to the investigation, in 3 villages as Gucheng Village, Daxi Village and Getengping Village affected by land acquisition, the total area of cultivated lands was 3,519 mu and the total population was 5,537 prior to land acquisition, including 2,466 women and 2,864 labor force (1,562 of them were engaged in secondary and tertiary industries; the per capita disposable income in the 3 villages as Gucheng Village, Daxi Village and Getengping Village was CNY 13,525, CNY 11,943 and CNY 11,435 respectively. The basic information of villages affected by land acquisition is shown in Table 5. 23. The land acquisition would affect a population of 290 from 59 households (all of them are Han ethnicity), including 119 women accounting for 41.03% of the total APs, and no vulnerable group was affected; the total area of cultivated lands in the 3 villages was 3,519mu, and the area of land acquisition for the Project was 74.11 mu with a cultivated land acquisition rate of 2.11%. The basic information of population affected by LA is shown in Table 6, and the cultivated land acquisition rate is shown in Table 7. 24. According to the investigation, the per capita annual net income of 3 villages as Gucheng Village, Daxi Village and Getengping Village was about CNY 4,955, CNY 4,867 and CNY 3,768 prior to land acquisition. While after the land acquisition, the per capita annual net income of Gucheng Village and Getengping Village was about CNY 5,158 and CNY 4,226 respectively in 2019, increased respectively for about CNY 203 and CNY 458 in comparison with that prior to the land acquisition. The change in annual net income of Daxi Village after the land acquisition will be further monitored subsequently to pay attention to their livelihood and income recovery condition. The annual net income of APs prior to land acquisition is shown in Table 8; the annual net income of APs after land acquisition is shown in Table 9.

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153

Interview with AHHs

Table 5: Basic Information of Villages Affected prior to LA

Content Agency Gucheng Village

Daxi Village

Getengping Village

Cultivated land area mu 276 2,236 1,007

Total population Person 574 2,863 2,100

Female Person 382 1,202 882

Labor Person 229 1,270 1,365

Including: No. of persons engaged in secondary and tertiary industries

Person 50 877 635

Annual production value of cultivated lands CNY/year 2,120 2,120 2,120

Per capita disposable income of farmers CNY/year 13,525 11,943 11,435

Table 6: Basic Information of APs due to LA

Village No. of AHHs (household)

No. of APs (person)

No. of female APs (person)

No. of APs in Han ethnicity (person)

Vulnerable groups

(person) Gucheng 4 19 7 19 0

Daxi 27 129 52 129 0

Getengping 28 142 60 142 0

Total 59 290 119 290 0

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154

Table 7: Compensation Rate Cultivated Land Acquisition

Village Cultivated land area (mu) Area of cultivated land acquisition (mu) Land loss rate (%) Gucheng 276 5.76 2.09%

Daxi 2,236 40 1.79% Getengping 1,007 28.35 2.82%

Table 8: Annual Net Income of APs prior to LA (Unit: CNY /person)

Village Year Total income

Planting income

Operating income

Work income

Other income

Total expenditure

Production expenditure

Living expenditure

Other expenditures

Net income

Gucheng 2018 12,589 92 3,125 8,426 946 7,634 1,733 4,325 1,576 4,955

Daxi 2019 11,943 84 2,876 8,118 865 7,076 1,718 3,927 1,431 4,867

Getengping 2016 10,473 79 2,456 7,124 814 6,705 1,581 3,725 1,399 3,768

Table 9: Annual Net Income of APs after LA (Unit: CNY /person)

Village Year Total income

Planting income

Operating income

Work income

Other income

Total expenditure

Production expenditure

Living expenditure

Other expenditures

Net income

Gucheng 2019 13,525 99 3,357 9,052 1,017 8,367 1,974 4,647 1,746 5,158

Getengping 2019 11,435 86 2,682 7,778 889 7,209 1,726 3,955 1,528 4,226

7. Conclusions and Corrective Action Plan Conclusions

1) All lands used for the Mishui Commercial Center Project, Shoujiaping Logistic Project, Yihuacheng Project and the Logistic project at the plot on south side of Xianjiang River in Dazhong Resettlement Area have undergone the land acquisition process within the land scope for ADB-financed Hunan Miluo River Disaster Risk Management and Comprehensive Environmental Improvement Project.

2) In light of the land acquisition for the Project, an agreement for land acquisition compensation has been concluded with the rural collective economic organizations, with relevant land acquisition procedures fulfilled. The related information was publicized and the public engaged in land acquisition were participated. The APs agreed with the land acquisition procedure and compensation, and did not have any complaint about land acquisition.

3) The Project is located around cities and townships where the farmers' major income is from off-farm work. The acquisition rate of cultivated lands was small, and the land acquisition exerted minor impact on household income.

4) The local government is implementing the endowment insurance measures for eligable LLFs.

Corrective Action Plan (to be completed before the RP update)

Problem Corrective Action Plan PIUs Budget Deadline

The state-owned land use certificate lagged behind

Speed up the disposal of the state-owned land use certificate

PMO and related township government

N/A By end of 2020

Endowment insurance for land loss farmers lagged behind

Speed up the disposal of endowment insurance process

PMO and related township government

N/A By end of 2020

AP’s livelihood and income restoration issue has not been

Organize appropriate trainings on employability skills and take certain

PMO and related township government

CNY 50,000, will be included in

By end of 2020

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155

paid attention adequately

supporting measures for APs to help them in employment, income generation, livelihood and income recovery

the project contingencies

The APs affected by LA conducted will be included into the monitoring scope of the project

PMO Included into the resettlement monitoring cost

Whole project process

Appendix 4

156

Land acquisition approval

Appendix 4

157

Land acquisition notice

Appendix 4

158

Land acquisition agreement

Appendix 5

159

Appendix 5: Due Diligence on the Existing Facilities 1. According to the recommendation of ADB's mid-term review mission in June 2020, resettlement due diligence was conducted for existing/associated facilities. Based on the assessment by the TrTA environmental team, the identified existing facilities include (i) 24 sewage treatment facilities in towns of Pingjiang County, (ii) Pingjiang County Domestic Waste Sanitary Landfill, (iii) Yueyang Municipal Hazardous Waste Disposal LTD, (iv) Huangjindong Reservoir and (v) Dajiangdong Reservoir. This project does not involve any associated facilities. 1. Purpose 2. The purpose of the due diligence is to:

• check and ensure the land acquisition and resettlement for the construction of existing facilities conform to the laws and regulations of Pingjiang County, Yueyang City, Hunan Province and PRC;

• review the resettlement process, resettlement cost management, income recovery and satisfaction of APs;

• ensure participation of the APs including females and their rights are protected during land acquisition;

• check the situation of vulnerable groups and supporting policies; public participation and information disclosure; and

• investigate if any problem is remained during LA and HD and put forward feasible suggestions.

2. Methods 3. The information adopted in this due diligence mainly comes from:

(i) Literature-based survey 4. The preparation personnel of the report collected and sorted out relevant information and survey data of the construction agency of existing facilities and local governments at all levels. Including approval documents of associated facility, land use-right certificate, land acquisition policies, agreements, compensation records, resettlement supporting measures, public participation information such as resettlement and land acquisition announcements.

(ii) Field visit 5. The staff conducted visits to relevant townships and villages, affected residents and constructors, and collected further information through direct communication with stakeholders.

(iii) Sampling survey 6. The staff conducted a questionnaire survey on the APs. 3. DDR for Sewage Treatment Plants and Landfill Plants

3.1. Overview of Project Construction

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160

7. The 24 sewage treatment plants are distributed in 22 towns of Pingjiang County, and with a total area of 190.99 mu, and total treatment capacity of 20,950 tons/day to serve a population of 262,600. Among them, Changshou Township Sewage Treatment Plant, Anding Township Sewage Treatment Plant, Nanjiang Township Sewage Treatment Plant, Fushoushan Sewage Treatment Plant and Meixian Township Sewage Treatment Plant have been completed, and the remaining 19 projects are still under construction. 8. The Pingjiang County Domestic Waste Sanitary Landfill, located in Taxing Village, Wengjiang Township, covers a floor area of 132.8 mu and has a treatment capacity of 230 tons/day. It was completed in 2011 and is used for the treatment of domestic waste in Pingjiang County.

9. Table 1 summarizes the basic information of the above 25 existing facilities. Below are pictures of some project sites.

Changshou Township Sewage Treatment Plant

(constructed) Fushoushan Township Sewage Treatment Plant

(constructed)

Meixian Township Sewage Treatment Plant

(constructed) Anding Township Sewage Treatment Plant

(constructed)

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161

Longmen Township Sewage Treatment Plant

(under construction) Xiasha Market Town Sewage Treatment Plant in

Sanshi Township (under construction)

Mujin Township Sewage Treatment Plant (under

construction) Jiayi Market Town Sewage Treatment Plant

(under construction)

Xianzhong Market Town Sewage Treatment Plant in

Jiayi Township (under construction) Sanshi Township Sewage Treatment Plant

(under construction)

Appendix 5

162

Pingjiang County Domestic Waste Sanitary Landfill (constructed)

Appendix 5

163

Table 1: Basic Information of Existing Facilities

Construction status

No. Name Township Starting time Completion

time

Treatment capacity (ton/day)

Service area Service

population (person)

Constructed

1 Changshou Township Sewage

Treatment Plant Changshou Township

September 2013 April 2014 3000 Changshou Market Town 50,000

2 Anding Township Sewage

Treatment Plant Anding

Township January 2015

September 2016

2500 Anding Township 23,000

3 Nanjiang Township Sewage

Treatment Plant Nanjiang Township

January 2015 December

2016 3000 Nanjiang Market Town 40,000

4 Fushoushan Sewage

Treatment Plant Fushoushan January 2018 January 2019 300 Fushoushan Township 2,000

5 Meixian Township Sewage

Treatment Plant Meixian

Township July 2019 June 2020 1000 Meixian Market Town 12,000

Under construction

6 Wushi Township Sewage

Treatment Plant Wushi

Township January 2019

December 2020

2000 Market Town of Wushi Township 20,000

7 Sandun Township Sewage

Treatment Plant Sandun

Township November 2019

November 2020

300 Daishi Market Town, Zhongwu Village

and Zhonglong Village 4,600

8 Centralized Sewage

Treatment Project in Hongqiao Township

Hongqiao Township

March 2020 December

2020 600 Market Town of Hongqiao Township 12,000

9 Sewage Treatment Station in

Daping Market Town of Shiniuzhai Township

Shiniuzhai Township

June 2020 December

2020 300

Daping Village and Guilin Village in Shiniuzhai Township

2,840

10 Construction of Sewage

Treatment Plant Project in Tongshi Township

Tongshi Township

June 2020 December

2020 500

Tongshi Township (Residents’ Committee, Bangshang Village,

Paixing Village, Yizi Village) 8,600

11 Wukou Township Sewage

Treatment Plant Wukou

Township June 2020

December 2020

800 Wukou Market Town (Residents’

Committee, Wukou Village) 6,930

12 Wengjiang Township Sewage

Treatment Plant Wengjiang Township

June 2020 September

2020 500 Shuikouzui Central Market Town 6,000

13 Mujin Township Sewage

Treatment Plant Mujin

Township June 2020

December 2020

300 Mugua Market Town 3,216

14 Banjiang Township Sewage

Treatment Plant Banjiang Township

June 2020 December

2020 300 Banjiang Village, Qianshi Village 6,000

15 Jiayi Market Town Sewage

Treatment Plant in Jiayi Township

Jiayi Township

June 2020 December

2020 1000 Jiayi Market Town 8,200

16 Xianzhong Market Town

Sewage Treatment Plant in Jiayi Township

Jiayi Township

June 2020 September

2020 800 Jiayi Market Town 7,000

17 Dazhou Township Sewage

Treatment Plant Dazhou

Township June 2020

December 2020

200 Dazhou Market Town 2,200

18 Shangtashi Township Sewage

Treatment Plant Shangtashi Township

June 2020 September

2020 400 Market Town of Shangtashi Township 6,000

Appendix 5

164

Construction status

No. Name Township Starting time Completion

time

Treatment capacity (ton/day)

Service area Service

population (person)

19 Yuping Township Sewage

Treatment Plant Yuping

Township June 2020

September 2020

300 Yuping Market Town 10,000

20 Sanshi Township Sewage

Treatment Plant Sanshi

Township June 2020

September 2020

500 Sanshi Market Town 8,000

21 Xiasha Market Town Sewage

Treatment Plant in Sanshi Township

Sanshi Township

June 2020 September

2020 350 Xiasha Market Town 5,000

22 Xiangjia Township Sewage

Treatment Plant Xiangjia

Township June 2020

December 2020

600 Market Town of Xiangjia Township 7,000

23 Cenchuan Township Sewage

Treatment Plant Cenchuan Township

June 2020 December

2020 400 Market town range 4,000

24 Longmen Township Sewage

Treatment Plant Longmen Township

June 2020 September

2020 1000

Sanshidu Market Town, Longmen Township

8,000

Constructed 25 Pingjiang County Domestic

Waste Sanitary Landfill Wengjiang Township

2010 2011 230 Pingjiang County 1.1 million

Appendix 5

165

3.2. Land Acquisition and Resettlement Impact Land impact 10. A total of 190.99 mu collective land was acquired to build the 24 sewage treatment facilities, including 155.7 mu of cultivated land, 11.2 mu of garden land and 24.09 mu of forest land, affecting 103 households with 394 persons (including 155 females) in 25 villages of 22 townships (residents' committees). 11. A total of 132.83 mu land was acquired to build the Pingjiang County Domestic Waste Sanitary Landfill, including 41.88 mu of cultivated land and the rest are state-owned land. It affected 20 households with 118 persons, including 57 females, in 1 village of 1 township.

Table 2: Land Acquisition of Existing Facilities

Township Village Total Paddy field

Dry land

Garden land

Forest land

Unused land

Total 323.82 99.79 97.79 11.2 24.09 90.95

Changshou Township Zhifu Village 20.03 6 10.03 4

Anding Township Anyong Village 10.5 4.1 6.4

Nanjiang Township Gaonan Village 16.8 16.8

Fushoushan Dahe Village 2 2

Meixian Township Maoniling 9 9

Wushi Township Wugongshi Residents’

Committee 14.1 14.1

Sandun Township Daishi Village 7.2 7.2

Hongqiao Township 4.97

Jinji Village 2

Xiangyang Village 2.97

Shiniuzhai Township Daping Village 4.9 4.9

Tongshi Township Yizi Village 14.7 14.7

Wukou Township Wukou Village 5.44 5.44

Wengjiang Township Xinjian Village 7.2 7.2

Mujin Township Mugua Village 3.84 3.84

Banjiang Township Qianshi Village 3.95 3.95

Jiayi Township Jiayi Community 4.67 4.67

Jiayi Township Xianzhong Community 4.68 4.68

Dazhou Township Anquan Village 3.35 3.35

Shangtashi Township Hongxia Residents’

Committee 8.5 8.5

Yuping Township Yuping Community 6.99 6.99

Sanshi Township Feitian Village 4.63 4.63

Sanshi Township Xiasha Village 5.03 5.03

Xiangjia Township South Street Residents’

Committee 6.91 3 3.91

Cenchuan Township Xinsha Village 5.6 5.6

Longmen Township Sanshidu Village 16 3 13

Wengjiang Township Taxing Village 132.83 41.88 90.95

Table 3: Information of APs due to LA for Existing Facilities

No. Name AHHs APs Female

No. of households signed the Agreement

Applied for endowment insurance?

No. of people

applied for endowment insurance

1 Changshou Township Sewage

Treatment Plant 8 28 10 8 No 0

Appendix 5

166

No. Name AHHs APs Female

No. of households signed the Agreement

Applied for endowment insurance?

No. of people

applied for endowment insurance

2 Anding Township Sewage

Treatment Plant 5 19 9 5 Yes 19

3 Nanjiang Township Sewage

Treatment Plant 10 36 16 10 In progress 10

4 Fushoushan Sewage Treatment

Plant 2 7 3 2 Yes 7

5 Meixian Township Sewage

Treatment Plant 4 18 7 4 Yes 18

6 Wushi Township Sewage

Treatment Plant 7 28 10 7 No 0

7 Sandun Township Sewage

Treatment Plant 4 15 4 4 No 0

8 Centralized Sewage Treatment Project in Hongqiao Township

4 12 5 4 No 0

9 Sewage Treatment Station in

Daping Market Town of Shiniuzhai Township

3 11 5 3 In progress 0

10 Construction of Sewage

Treatment Plant Project in Tongshi Township

8 30 10 8 Yes 30

11 Wukou Township Sewage

Treatment Plant 3 12 3 3 In progress 0

12 Wengjiang Township Sewage

Treatment Plant 4 16 6 4 No 0

13 Mujin Township Sewage

Treatment Plant 2 7 3 2 In progress 0

14 Banjiang Township Sewage

Treatment Plant 1 6 2 1 Yes 6

15 Jiayi Market Town Sewage

Treatment Plant in Jiayi Township 3 11 4 3 In progress 0

16 Xianzhong Market Town Sewage Treatment Plant in Jiayi Township

3 10 5 3 In progress 0

17 Dazhou Township Sewage

Treatment Plant 2 7 3 2 In progress 0

18 Shangtashi Township Sewage

Treatment Plant 4 18 8 4 Yes 18

19 Yuping Township Sewage

Treatment Plant 4 15 7 4 No 0

20 Sanshi Township Sewage

Treatment Plant 3 11 4 3 No 0

21 Xiasha Market Town Sewage

Treatment Plant in Sanshi Township

3 12 4 3 Yes 10

22 Xiangjia Township Sewage

Treatment Plant 3 16 6 3 No 0

23 Cenchuan Township Sewage

Treatment Plant 8 35 13 8 No 0

24 Longmen Township Sewage

Treatment Plant 5 14 8 5 No 0

25 Pingjiang County Domestic

Waste Sanitary Landfill 20 118 57 20 Yes 118

Total 123 512 212 123 236

AHHs = affected households, APs = affected persons.

Appendix 5

167

Impact of house demolition 12. No house was demolished on the land acquired by 24 sewage treatment plants. Pingjiang County Domestic Waste Sanitary Landfill was completed in 2011, and no house was demolished within that project area. However, considering the adverse impact of the landfill on residents' lives, 20 households within 500 m from the landfill were demolished in 2014, with a total demolition area of 3,608.346 m2, involving 20 households with 118 people in Taxing Village, Wengjiang Town, Pingjiang County, including 57 women.

3.3. Land Acquisition Process 13. Since the construction period of these 24 sewage treatment plants and the landfill of Pingjiang County is different (2010 ~ 2020), the land acquisition time is different accordingly. The following activities were conducted:

• Mobilization meetings were held for land acquisition of all projects; • Information was publicized; • Communication and consultation were conducted on the project construction,

compensation standards with affected people; • Announcements on land acquisition and compensation were issued; and

• Compensation agreements were signed, and compensation funds were paid on time.

Table 4: Land Acquisition Process of the Project

No. Name Implementation time Time of the project

construction mobilization meeting

Time of issuing the LA

announcement

1 Changshou Town Sewage Treatment Plant May 2013 June 2013 July 2013

2 Anding Town Sewage Treatment Plant November 2014 November 2014 January 2015

3 Nanjiang Town Sewage Treatment Plant November 2014 January 2015 February 2015

4 Fushoushan Sewage Treatment Plant November 2016 December 2016 January 2017

5 Meixian Town Sewage Treatment Plant April 2019 May 2019 May 2019

6 Wushi Town Sewage Treatment Plant March 2018 May 2018 June 2018

7 Sandun Town Sewage Treatment Plant September 2019 October 2019 December 2019

8 Centralized Sewage Treatment Project in Hongqiao Town

December 2019 January 2020 December 2018

9 Sewage Treatment Station in Daping Market Town of Shiniuzhai Town

November 2019 November 2020 December 2019

10 Construction of Sewage Treatment Plant Project in Tongshi Town

November 2019 November 2019 December 2019

11 Wukou Town Sewage Treatment Plant October 2019 November 2019 December 2019

12 Wengjiang Town Sewage Treatment Plant June 2019 July 2019 August 2019

13 Mujinshan Town Sewage Treatment Plant July 2019 August 2019 September 2019

14 Banjiang Town Sewage Treatment Plant November 2019 November 2019 December 2019

Appendix 5

168

No. Name Implementation time Time of the project

construction mobilization meeting

Time of issuing the LA

announcement

15 Jiayi Market Town Sewage Treatment Plant in Jiayi Town

November 2019 November 2019 December 2019

16 Xianzhong Market Town Sewage Treatment Plant in Jiayi Town

November 2019 November 2019 December 2019

17 Dazhou Town Sewage Treatment Plant December 2019 January 2020 March 2020

18 Shangtashi Town Sewage Treatment Plant November 2019 November 2019 December 2019

19 Yuping Town Sewage Treatment Plant September 2019 October 2019 November 2019

20 Sanshi Town Sewage Treatment Plant December 2019 January 2020 March 2020

21 Xiasha Market Town Sewage Treatment Plant in Sanshi Town

March 2011 March 2011 April 2011

22 Xiangjia Town Sewage Treatment Plant September 2019 October 2019 November 2019

23 Cenchuan Town Sewage Treatment Plant July 2019 August 2019 September 2019

24 Longmen Town Sewage Treatment Plant January 2019 January 2019 March 2019

25 Pingjiang County Domestic Waste Sanitary Landfill 2010 2010 2011

14. However, the land use procedures of some project components lagged behind. The Table 4 summarizes land certificates status of these 25 facilities.

Table 4: Land Use Certificates Status

Construction status

No. Name of facilities Township Land area

(mu)

Handling of land

certificates

Constructed

1 Changshou Town Sewage Treatment Plant Changshou Town

18.9 Not

acquired

2 Anding Town Sewage Treatment Plant Anding Town 10.5 Acquired

3 Nanjiang Town Sewage Treatment Plant Nanjiang Town 16.86 Acquired 4 Fushoushan Sewage Treatment Plant Fushoushan 2 In progress

5 Meixian Town Sewage Treatment Plant Meixian Town 9 Acquired

Under construction

6 Wushi Town Sewage Treatment Plant Wushi Town 10.55 In progress

7 Sandun Town Sewage Treatment Plant Sandun Town 2.63 In progress

8 Centralized Sewage Treatment Project in Hongqiao

Town Hongqiao Town 5

Certificate for project

construction land has

been acquired

9 Sewage Treatment Station in Daping Market Town of

Shiniuzhai Town Shiniuzhai

Town 1.87

Not acquired

10 Construction of Sewage Treatment Plant Project in

Tongshi Town Tongshi Town 4.87 In progress

11 Wukou Town Sewage Treatment Plant Wukou Town 4.9 In progress

12 Wengjiang Town Sewage Treatment Plant Wengjiang Town

7.2 Not

acquired

13 Mujinshan Town Sewage Treatment Plant Mujin Town 3.84 In progress

14 Banjiang Town Sewage Treatment Plant Banjiang Town 3.95 In progress

15 Jiayi Market Town Sewage Treatment Plant in Jiayi

Town Jiayi Town 4.67 In progress

16 Xianzhong Market Town Sewage Treatment Plant in

Jiayi Town Jiayi Town 4.68 In progress

17 Dazhou Town Sewage Treatment Plant Dazhou Town 3.35 In progress

18 Sewage Treatment Station of Shangtashi Town Shangtashi

Town 8.5 Acquired

Appendix 5

169

Construction status

No. Name of facilities Township Land area

(mu)

Handling of land

certificates

19 Yuping Town Sewage Treatment Plant Yuping Town 6.99 Not

acquired

20 Sanshi Town Sewage Treatment Plant Sanshi Town 3.68 Not

acquired

21 Xiasha Market Town Sewage Treatment Plant in

Sanshi Town Sanshi Town 2.6

Not acquired

22 Xiangjia Town Sewage Treatment Plant Xiangjia Town 6.91 In progress

23 Cenchuan Town Sewage Treatment Plant Cenchuan Town

3.37 In progress

24 Longmen Town Sewage Treatment Plant Longmen Town 3.39 In progress

Constructed 25 Pingjiang County Domestic Waste Sanitary Landfill Wengjiang Town

132.83 Acquired

Appendix 5

170

3.4. Compensation and Resettlement for LA Land compensation standard 15. Due to the different construction time, the land compensation standards and basis adopted for the above-mentioned 25 facilities are different, as shown in Table 6.

Table 6: Compensation Standard for LA

Acquisition time

Content Applicable standard (CNY/mu)

Policy basis Paddy field

Dry land Forest land

2011 Pingjiang County Domestic Waste Sanitary Landfill 23,843 16,690 XZF [2009]

No. 43

2013-2017 Changshou Town Sewage Treatment Plant, Anding Town

Sewage Treatment Plant, Nanjiang Town Sewage Treatment Plant and Fushoushan Town Sewage Treatment Plant

41,900 33,520 XZF [2012]

No. 46

2018-2020 Other 20 sewage treatment plants 53,200 47,400 37,920 XZF [2018]

No. 5

16. It is observed that land compensation standards of relevant facilities in Item “2018-2020” are consistent with those of ADB-financed project facilities. According to the analysis of compensation unit price and replacement price in Section 4.5 of RP, the compensation standards can meet the requirements of replacement price. Progress of compensation and resettlement for LA

(1) Compensation mode 17. The monetary compensation and endowment insurance are combined for land acquisition of all these facilities.

(2) Progress of compensation payment 18. Based on the investigation, it was confirmed that land compensation agreements have been signed for all 25 facilities. The land acquisition has been completed, and all compensation expenses have been paid in place for sewage treatment plants of 21 towns and Pingjiang landfill. Most of land acquisition has been completed for sewage treatment plants of three towns, namely Wengjiang Town, Yuping Town and Sanshi Town. Table 7 summarizes the progress of land acquisition compensation under each facility.

Appendix 5

171

Table 7: Progress of Land Acquisition and Compensation for 25 existing facilities

Construction status

No. Name of facilities Land

acquisition time

Area of land acquisition

(mu)

Type of land to be acquired

Villages affected by

LA Affected groups AHHs

No. of households signed the Agreement (household)

Total compensation for LA (CNY

10,000)

Paid expenses

(CNY 10,000)

Completion progress

Constructed

1 Changshou Town

Sewage Treatment Plant

2013.3 20.03 Dryland and paddy field Zhifu Village Dayuan Group and Qiaobei

Group 8 8 67.7 67.7 100%

2 Anding Town

Sewage Treatment Plant

2014.1 10.5 Dryland and paddy field Anyong Village

Zhongwu Group 5 5 45 45 100%

3 Nanjiang Town

Sewage Treatment Plant

2015 16.8 Dryland and paddy field Gaonan Village

Group 3 10 10 80 80 100%

4 Fushoushan

Sewage Treatment Plant

2017.1 2 Paddy field Dahe Village Villagers'

Committee of Dahe Village

2 2 7.46 7.46 100%

5 Meixian Town

Sewage Treatment Plant

2019.5 9 Paddy field Maoniling Group 1 4 4 47 47 100%

Under construction

6 Wushi Town

Sewage Treatment Plant

2018.6 14.1 Dryland Wugongshi Residents’ Committee

Group 12 7 7 60 60 100%

7 Sandun Town

Sewage Treatment Plant

2019.12 7.2 Paddy field Daishi Village Huamen Group 4 4 45 45 100%

8

Centralized sewage

treatment project in Hongqiao

Town

2019 4.97 Paddy field and dryland

Jinji Village and

Xiangyang Village

Group 3 4 4 20 20 100%

9

Sewage Treatment

Station in Daping Market Town of Shiniuzhai Town

2019.12 4.9 Paddy field Daping Village

Changle Group 3 3 34.072 34.072 100%

10 Sewage

treatment plant in Tongshi Town

2019.12.6 14.7 Forest land Yizi Village

Zadou Group, Sizhou Group

and Duandshang Group

8 8 56.0078 56.0078 100%

11 Wukou Town

Sewage Treatment Plant

2019.12.3 5.44 Forest land Wukou Village

Group 8, 9, 10 3 3 31.99 31.99 100%

12 Wengjiang Town

Sewage Treatment Plant

2019.8 7.2 Garden land Xinjian Village

Jiupu Group 4 4 81 50 61.73%

13 Mujin Town

Sewage Treatment Plant

2019.9.25 3.84 Dryland Mugua Village

Xinwu Group 2 2 22.272 22.272 100%

Appendix 5

172

Construction status

No. Name of facilities Land

acquisition time

Area of land acquisition

(mu)

Type of land to be acquired

Villages affected by

LA Affected groups AHHs

No. of households signed the Agreement (household)

Total compensation for LA (CNY

10,000)

Paid expenses

(CNY 10,000)

Completion progress

14 Banjiang Town

Sewage Treatment Plant

2019.12.17 3.95 Forest land Qianshi Village

Lihua Group 1 1 17.185 17.185 100%

15

Jiayi Market Town Sewage

Treatment Plant in Jiayi Town

2019.12.6 4.67 Paddy field and dryland Jiayi

Community Shanshang

Group 3 3 26.152 26.152 100%

16

Xianzhong Market Town

Sewage Treatment Plant

in Jiayi Town

2019.12.6 4.68 Paddy field and dryland Xianzhong Community

Tiannan Group 3 3 26.263 26.263 100%

17 Dazhou Town

Sewage Treatment Plant

2020.03.26 3.35 Dryland Anquan Village

Wangyi Group 2 2 14.522 14.522 100%

18 Shangtashi Town

Sewage Treatment Plant

2019.12 8.5 Paddy field and dryland Hongxia

Residents’ Committee

Shuikou, Duanli, Hanshang and

Zuishang 4 4 49 49 100%

19 Yuping Town

Sewage Treatment Plant

2019.11 6.99 Paddy field Yuping

Community Tang’ao Group 4 4 52 43 82.69%

20 Sanshi Town

Sewage Treatment Plant

2020.3.10 4.63 Dry land Feitian Village

Qiujia Group and Zhuduan Group

3 3 22.7542 18.1542 79.78%

21

Xiasha Market Town Sewage

Treatment Plant in Sanshi Town

2011.4.28 5.03 Paddy field Xiasha Village

Qiaodong Group 3 3 14.9894 14.9894 100%

22 Xiangjia Town

Sewage Treatment Plant

2019 6.91 Paddy field, dry land South Street Residents’ Committee

Group 5 of Original South

Street Residents’ Committee

3 3 30.3739 30.3739 100%

23 Cenchuan Town

Sewage Treatment Plant

2019.9.9 5.6 Paddy field Xinsha Village

Zhongwu Group 8 8 31.808 31.808 100%

24 Longmen Town

Sewage Treatment Plant

2019.3 16 Paddy field and dryland Sanshidu

Village Tianyuanwan

Group 5 5 67 67 100%

Constructed 25 Pingjiang County Domestic Waste Sanitary Landfill

2011 132.83 Dryland and forest land Taxing Village Shuidui Group 19 19 305.509 305.509 100%

Appendix 5

173

(3) Handling of endowment insurance 19. There are 435 eligible endowment insurance persons in the Project. At present, endowment insurances have been provided for 194 people in 7 facilities, while another 7 facilities are being handled and 11 facilities have not yet started. Table 8 summarizes the status of endowment insurance under each facility.

Table 8: Status of Endowment Insurance Processing

No. Name of facilities AHHs APs (person)Endowment insurance

object (person)

Whether applied for endowment

insurance

No. of people applied for endowment

insurance (person)1 Changshou Town Sewage Treatment Plant 8 28 24 No

2 Anding Town Sewage Treatment Plant 5 19 16 applied 16

3 Nanjiang Town Sewage Treatment Plant 10 36 31 applied 31

4 Fushoushan Sewage Treatment Plant 2 7 6 applied 6

5 Meixian Town Sewage Treatment Plant 4 18 15 applied 15

6 Wushi Town Sewage Treatment Plant 7 28 24 No

7 Sandun Town Sewage Treatment Plant 4 15 13 No

8 Centralized Sewage Treatment Project in

Hongqiao Town, Pingjiang County 4 12 10 No

9 Sewage Treatment Station in Daping Market

Town of Shiniuzhai Town 3 11 9 In progress

10 Construction of Sewage Treatment Plant

Project in Tongshi Town 8 30 26 In progress

11 Wukou Town Sewage Treatment Plant 3 12 10 In progress

12 Wengjiang Town Sewage Treatment Plant 4 16 14 No

13 Mujinshan Town Sewage Treatment Plant 2 7 6 In progress

14 Banjiang Town Sewage Treatment Plant 1 6 5 In progress

15 Jiayi Market Town Sewage Treatment Plant in

Jiayi Town 3 11 9 In progress

16 Xianzhong Market Town Sewage Treatment

Plant in Jiayi Market Town 3 10 9 In progress

17 Dazhou Town Sewage Treatment Plant 2 7 6

18 Shangtashi Town Sewage Treatment Plant 4 18 15 applied 15

19 Wuping Town Sewage Treatment Plant 4 15 13 No

20 Sanshi Town Sewage Treatment Plant 3 11 9 No

21 Xiasha Market Town Sewage Treatment Plant

in Sanshi Town 3 12 10 applied 10

22 Xiangjia Town Sewage Treatment Plant 3 16 14 No

23 Cenchuan Town Sewage Treatment Plant 8 35 30 No

24 Longmen Town Sewage Treatment Plant 5 14 12 No

25 Pingjiang County Domestic Waste Sanitary

Landfill 19 118 100 applied 100

Total 122 512 435 194

3.5. AP training

20. Pingjiang County attaches great importance to the training of affected farmers. All projects would provide targeted employment support training for the APs. At present, 8 times skills trainings had been conducted in the affected villages and towns. Among the APs, 112 people participated in the training, including 45 female farmers. Table 9 shows the employment training of some land loss farmers.

Appendix 5

174

Table 9: Production Skills Training of APs

No. Time Place Subject Organizer No. of participants

affected by the Project (person)

Female (person)

1 2013.1 Zhifu Village,

Changshou Town Skill training Project Headquarters 14 4

2 2014.5 Anding Town Skill training Project Headquarters 11 2

3 2016.10 Nanjiang Town Workshop skill

training for female Government of Nanjiang Town

13 13

4 2018.8 Wushi Town Skill training Project Headquarters 14

5 2019.5 Water Company Skill training Project Headquarters 32 7

6 2019.11 Meixian Town Housekeeping

training People's Government

of Meixian Town 12 12

7 2020.5 Dazhou Town Skill training Project Headquarters 6 2

8 2020.5 Xiangjia Town Skill training Project Headquarters 10 5

Total 112 45

Skills training for Villagers of Dazhou Town

Sewage Treatment Plant Skills training for landless villagers of Xiangjia

Town

Workshop practice training for affected women

organized by Nanjiang Town Meixian Town conducts housekeeping training for

affected women

Appendix 5

175

3.6. Compensation and resettlement for house demolition and relocation Compensation standard 21. Only 1 of the 25 facilities involved house demolition. The construction of Pingjiang County Waste Sanitary Landfill started in 2010 and was completed in 2011. In 2014, the houses within 500 m around the landfill were demolished. The compensation was made according to the Compensation Measures for House Demolition on Collective Land in Yueyang City (YZF [2009] No.16).

Table 10: Compensation Standard for House Demolition and Relocation

Compensation category Grade Compensation standard

(CNY/m2) Remarks

House Rural house

Main house

Brick-concrete Main structure 580 -

Decoration 300 -

Brick-wood Main structure 490 -

Decoration 180 - Civil

engineering Main structure 320 -

Decoration 130 - Resettlement mode 22. The resettlement mode of 19 relocated households was centralized resettlement, self-demolition and self-construction. The compensation for house demolition and relocation was CNY 2,970,800, which had been fully paid by the end of 2014, and all the APs have built new houses and moved in.

Current residences of 19 relocated households that moved from domestic waste sanitary landfill

(photos taken in July 2020)

3.7. Information Disclosure and Participation Mechanism (1) Mobilization meeting 23. Before the implementation of land acquisition and house demolition of all facilities, a mobilization meeting was organized by the relevant village and group leaders and all APs to discuss the arrangement of land acquisition and house demolition. During the meeting, the project situation, scope of impact, possible economic losses suffered by APs and corresponding compensation standards were explained.

Appendix 5

176

Mobilization Meeting for Land Acquisition of

Longmen Town Sewage Treatment Plant Project Mobilization Meeting for Land Acquisition of Jiayi

Market Town Sewage Treatment Plant Project

Mobilization Meeting for Land Acquisition of Xianzhong Market Town Sewage Treatment Plant

Project

Mobilization Meeting for Land Acquisition of Tongshi Town Sewage Treatment Plant Project

(2) Announcement of land acquisition and house demolition 24. All projects have issued the land acquisition announcement (Box) before land acquisition. Box:

Announcement of the People's Government of Pingjiang County on Land Acquisition for Construction Project of Sewage Treatment Plant (Station) and Supporting Pipe Network in

Sanshi Town of Pingjiang County

PZNTZ [2020] No. 36

According to the Land Administration Law of the PRC and relevant laws and regulations, the matters concerning the proposed land acquisition are hereby notified as follows:

I. Scope of Land Acquisition: part of the collective land in Feitian Village, Sanshi Town, Pingjiang County; please refer to the boundary survey map for the specific location.

II. Purpose of Land Acquisition: the land to be acquired conforms to the overall land utilization planning and will be used for public facilities; the land is to be used for the construction of sewage treatment plant in Sanshi Town.

Appendix 5

177

III. Compensation Standards and Endowment insurance:

1. Standards of land compensation fee and resettlement subsidy: follow the Notice of the People's Government of Hunan Province on Adjusting the Compensation Standard for Land Acquisition in Hunan Province (XZF [2018] No. 5) and the Notice of Yueyang Municipal People's Government on Adjusting Compensation Standards for Land Acquisition in Yueyang City (YZF [2018] No. 8);

2. Compensation standards for young crops, agricultural auxiliary facilities and ground attachments: follow the Notice of Pingjiang County People's Government on Issuing the Measures for Implementing the Compensation and Resettlement of Collective Land Acquisition and House Demolition and Relocation in Pingjiang County (PZBF [2020] No. 2);

3. The endowment insurance for LLFs will be provided according to the Notice of PGPC on Issuing the Measures for Implementing the Endowment insurance for LLFs in Pingjiang County (PZBF [2018] No. 26).

IV. Work Schedule:

1. From June 20, 2020 to June 30, 2020, the people's government of the county organized relevant departments to investigate the current situation of land acquisition and assess the risk of social stability, and asked the rural collective economic organizations and relevant farmers to cooperate with the investigation and confirmation;

2. The people's government of the county shall organize relevant departments to prepare the compensation and land acquisition plan according to the results of land survey, and make a public announcement on land acquisition and compensation plan within the scope of the township, village and group where the land is to be acquired.

V. Other Matters:

1. From the date of announcement, it is not allowed to plant young crops and ground attachments within the scope of proposed land acquisition; otherwise, no compensation will be given for land acquisition;

2. If the relevant right holders have any objection to compensation standards, they can submit a written application for hearing to the people's government of the county within 5 working days from the date of informing the proposed land acquisition; if the application is not submitted within the time limit, it will be deemed as giving up the hearing.

(3) Consultation on compensation and resettlement

All projects have carried out policy publicity and consultation on compensation and resettlement with the affected households.

Appendix 5

178

Land Acquisition Consultation Meeting on Xiangjia

Town Sewage Treatment Plant Land Acquisition Consultation Meeting on Wukou

Town Sewage Treatment Plant

Land Acquisition Consultation Meeting on Longmen

Town Sewage Treatment Plant Land Acquisition Consultation Meeting on Wengjiang

Town Sewage Treatment Plant

3.8. Investigation and Interview 25. In order to objectively evaluate the implementation of land acquisition and house demolition in 25 facilities and the living conditions of the APs, the staff conducted an investigation and interview on the affected villages/groups and residents from June to July 2020. Selection of sample households 26. Among the 25 facilities, 7 facilities were implemented from 2011 to 2018 and 18 facilities were implemented after 2019. In order to make a comparative analysis on the income of the APs before and after land acquisition, the staff visited four villages and groups affected before 2019, namely Dayuan Group of Zhifu Village in Changshou Town, Shuidui Group of Taxing Village in Wengjiang Town, Group 12 of Wugongshi Neighborhood Committee in Wushi Town, Zhongwu Group of Anyong Village in Anding Town, totaling 19 affected households, including 5 households affected by house demolition. The villages visited accounted for 15.38% of all affected villages,

South Street Land Acquisition

Consultation Meeting

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179

the groups visited accounted for 10.81% of all affected groups, and the No. of households visited accounted for 15.45% of all affected households.

Table 11: Selection of Sample Households

No. Component Construction status

Town Village Group AHHs No. of

APs

No. of women affected

Vulnerable groups

Affected by the project

construction

1

Changshou Town

Sewage Treatment

Plant

Constructed Changshou

Town Zhifu

Village Dayuan Group

5 17 11 0 Acquisition of paddy

field

2

Pingjiang County

Domestic Waste

Sanitary Landfill

Constructed Wengjiang

Town Taxing Village

Shuidui Group

5 26 13 0

Land acquisition and house demolition

3

Wushi Town Sewage

Treatment Plant

Under construction

Wushi Town

Wugongshi Residents’ Committee

Group 12

5 20 13 0 Acquisition of dry land

4

Anding Town

sewage treatment

plant

Constructed Anding Town

Anyong Village

Zhongwu Group

4 15 7 0

Paddy field and dry

land acquisition

Total 4 towns 4 villages 4 groups 19 78 44 0

Income analysis of sample households 27. As the compensation for cultivated land occupation is one-time financial compensation, no land transfer and resettlement is carried out in the village. Therefore, the staff investigated the cultivated land loss of 14 sample households affected by land acquisition. According to the survey results, the 14 sample households lost a total of 16.51% of cultivated land. The survey results are shown in Table 12.

Table 12: Survey on Cultivated Land Loss of Sample Households

No. Town Village Group AHHs Affected

by

Original cultivated

land of sample

households (mu)

Existing cultivated

land of sample

households (mu)

Occupied cultivated land (mu)

Proportion

1 Changshou

Town Zhifu

Village Dayuan Group

5 Acquisition of paddy

field 23.8 20.3 3.5 14.71%

2 Wushi Town

Wugongshi Residents’ Committee

Group 12

5 Acquisition of dry land

34 28 6 17.65%

3 Anding Town

Anyong Village

Zhongwu Group

4

Paddy field and dry land

acquisition

28.5 23.5 5 17.54%

4 Wengjiang

Town Taxing Village

Shuidui Group

5 Acquisition of dry land

20.28 17.18 3.1 15.28

Total 14 106.58 88.98 17.6 16.51%

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28. According to the survey and statistics of income and expenditure of sample households before and after cultivated land acquisition, the results show that:

• Agricultural income: The agricultural income generally decreased after land acquisition; • Total income: The total income kept increasing after land acquisition, among which the

sample households whose land was acquired in 2011, 2013 and 2015 increased by 40.93%, 38.06% and 21.4% respectively;

• Net income: The per capita net income of the sample households whose land was acquired in 2011, 2013 and 2015 increased by 89.74%, 67.97 and 45.93% respectively.

29. It can be seen that the land acquisition has a certain impact on income. The shorter the land acquisition time is, the more obvious the impact will be. With the increase of land acquisition time, the income will slowly resume growth. Table 13, Table 14 and Table 15 are for the comparative analysis of income.

Table13: Annual Net Income of APs prior to LA (Unit: CNY/person)

Villages and

groups Year Total

income Agricultural

income Operating

income Work

income Other

income Total

expenditure Production expenditure

Living expenditure

Other expenditures

Net income

Shuidui Group, Taxing Village

2011 6,784 1,705 1,422 3,600 57 4,553 1,564 2,578 412 2,231

Zhongwu Group, Anyong Village

2013 7,620 1,388 1,533 4,400 299 4,773 1,461 2,896 417 2,847

Dayuan Group, Zhifu

Village

2015 8,130 1,862 1,676 4,432 160 4,864 1,769 3,089 6 3,266

Group 12, Wugongshi

Town 2018 9,268 1,610 2,138 5,430 90 5,504 1,874 3,522 108 3,764

Table14: Annual Net Income of APs after LA (Unit: CNY/person)

Villages and

groups Year Total

income Agricultural

income Operating

income Work

income Other

income Total

expenditure Production expenditure

Living expenditure

Other expenditures

Net income

Shuidui Group, Taxing Village

2019 9,561 878 1,909 6,621 153 5,328 975 3824 528 4,233

Zhongwu Group, Anyong Village

2019 10,520 829 2,124 7,420 147 5,738 1,034 4,208 496 4,782

Dayuan Group, Zhifu

Village

2019 9,876 1,091 1,988 6,520 277 5,110 1,078 3,950 82 4,766

Group 12, Wugongshi

Town 2019 9,522 1,074 2,232 6021 195 5,761 1,058 4,315 388 3,761

Table15: Income Comparison Before and After Land Acquisition (Unit: CNY/person)

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181

Villages and groups

Total income

Agricultural income

Operating income

Work income

Other income

Total expenditu

re

Production expenditure

Living expenditur

e

Other expenditur

es

Net incom

e

Net income Growth rate

(%) Shuidui Group, Taxing Village

2,777 -827 487 3,021 96 775 -588 1,246 117 2,002 89.74%

Zhongwu Group, Anyong Village

2,900 -559 591 3,020 -152 965 -427 1,312 80 1,935 67.97%

Dayuan Group, Zhifu

Village

1,746 -771 312 2,088 117 246 -691 861 76 1,500 45.93%

Group 12, Wugongshi

Town 254 -536 94 591 105 257 -816 793 280 -3 -0.08%

Guarantee of rights and interests of sample households 30. In June 2020, the staff conducted a survey to the project site and held meeting with sample households.

Project Investigation and Interview with Sample Households 31. The investigation results show that:

• 100% of the affected households indicated that they knew or basically understood the land acquisition policy;

• 100% of the affected households indicated that the land acquisition had been announced and negotiated;

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• 100% of the affected households indicated that women participated in the consultation and that women had the right to control the compensation;

• 100% of the affected households indicated that the compensation had been fully paid and there were no remaining problems;

• 63.2% of the APs said they knew about this ADB-financed project; and 36.8% of the APs said they were unclear.

32. It can be seen that the rights and interests of the affected households was well protected during the construction of the Project, and the opinions of women and the elderly were fully considered in the negotiation process. The APs are relatively satisfied with the land acquisition. However, it is indicated that publicity of the ADB-financed project needs to be further strengthened.

3.9. Conclusion and Corrective Action Plan Conclusion

1) Among the 25 existing facilities, the land acquisition has been completed, and all compensation expenses have been paid in place for sewage treatment plants of 21 towns and Pingjiang landfill, partial land acquisition has been completed for sewage treatment plants of three towns, namely Wengjiang Town, Yuping Town and Sanshi Town.

2) For project land, the agreement for land acquisition compensation has been concluded with the rural collective economic organizations, and relevant land acquisition procedures have been fulfilled; the public participation in land acquisition and information disclosure were conducted properly; the APs agreed with the land acquisition procedures and compensation, and no complaint about land acquisition was received.

3) The land acquisition of the project involves a small proportion of cultivated land. Although it has limited impact to the whole project area, certain impact on the income of the APs is identified. However, with the passage of time, the production and operation will gradually get recovered, and their income will also resume growth.

4) The local government is is implementing the endowment insurance measures for eligible LLFs, and has held related training for LLFs.

5) Women enjoy completely equal status with men, and the government attaches importance to women's rights and interests, and specially organizes skills training for land-loss women.

Corrective Action Plan (to be completed before RP update)

Problem Corrective Action Plan PIUs Budget Deadline

The state-owned land use

certificate lagged behind

Speed up the issuance of the state-owned land use certificate

PMO and related township

government

N/A By end of 2020

Endowment insurance for

landless farmers lagged behind

Speed up the implementation of endowment insurance process

PMO and related township

government

N/A By end of 2020

Payment of land compensation in a timely and full

manner

Speed up the pending payment of LA PMO and Piangjiang

Natural Resource Bureau

N/A By end of 2020

AP’s livelihood and income

restoration issue has not been

organize appropriate trainings on employability skills and take certain supporting measures for APs to help

PMO and related township

government

CNY 50,000, will be included in

the project contingencies

By end of 2020

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183

Problem Corrective Action Plan PIUs Budget Deadline

paid attention adequately

them in employment, income generation, livelihood and income recovery

The APs affected by LA conducted in 2017-2019 will be included into the monitoring scope of the project

PMO Included into the resettlement

monitoring cost

Whole project process

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4. Due Diligence of Yueyang Municipal Hazardous Waste Disposal LTD 33. As this project involves treatment of medical waste discharge from hospitals, a due diligence in relation to resettlement was conducted to identify the resettlement issue of the treatment plants which would handle the medical waste. According to the investigation, the medical sewage of this project will be collected and transported to the Yueyang Municipal Hazardous Waste Disposal LTD for appropriate treatment. 34. Based on the record, the Yueyang Municipal Hazardous Waste Disposal LTD was established in September 2003. It is located in Jingmai Industrial Park, Luxun Community, Lucheng Town, Yunxi District of Yueyang City. The site belongs to state-owned land which has been acquired for more than 20 years. As the handling of additional medical waste from the project could be accommodated and will not result to expansion of disposal site or trigger any LAR, and the land is state-owned land for more than 20 years, it will not cause any resettlement issues for the project.

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5. Due Diligence for Huangjindong Reservoir 35. The wetland for Subproject 2: Huangjin River National Wetland Park restoration and protection is located within the Huangjindong Reservoir catchment. 36. In June 2020, the Resettlement Department of PMO, together with TrTA Resettlement Specialist, RP-DI, and representatives from the Water Resource Bureau and other relevant government agencies conducted resettlement due diligence on Huangjindong Reservoir.

I. General Situation of Huangjindong Reservoir 37. Huangjindong Reservoir is located in Shiyan Village, Changshou Town, Pingjiang County. It was built in 1990 and put into operation in 1995. It is a comprehensive water conservancy project with irrigation as main and power generation and flood control. The storage capacity of the reservoir is 96 million m3, which is the largest medium-scale reservoir in Pingjiang County. In 2012, this reservoir became the water source under Pingjiang eastern water supply complex project, and it undertook the drinking water safety for 406,000 people in Pingjiang County. 38. The operation and management of the reservoir has been undertaken by the Huangjindong Reservoir Management Institute of Pingjiang County, which is a public welfare institution, with 7 authorized positions, including 1 Director, 1 Deputy Director, and 5 staff in total. II. General Situation of Huangjindong Reservoir APs

39. From 1990 to 1992, the land acquisition and house demolition for construction of Huangjindong Reservoir were carried out. The inundation impact of reservoir construction involved 8 villages in 1 town, with a total of 1,844 mu farmland and 2,564 mu mountain forest inundated, 90,925 m2 non-residential houses and 26,463 m2 residential houses demolished, 4,935 people from 1,175 households were affected, and 14 units affected. 40. The mode of production recovery is resettlement with land, which is resettled through cultivated land adjustment; the relocation resettlement is divided into three categories: rearward resettlement, centralized resettlement and monetary resettlement. 41. Since 2006, the APs of Huangjindong Reservoir have enjoyed the national post support policy. Each AP receives an annual subsidy of CNY 600, which is directly distributed to the AP's passbook. At the same time, according to the annual financial plan, Hunan Province Government allocates a certain amount of infrastructure construction expenses to improve the transpotation, electricity, water supply, communication and other infrastructures to improve living conditions of the APs in the area of Huangjindong Reservoir. 42. According to the data provided by Pingjiang Water Resource Bureau, capacity of the reservoir will not increase as such no LAR impacts will be caused on surrounding villages. There is no remaining issue for the resettlement of Huangjindong Reservoir.

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6. Due Diligence of Land for Dajiangdong Reservoir 43. The Subproject 4: Integrated water supply in urban and rural Pingjiang involves the construction of a water supply in northern Pingjiang County. Dajiangdong Reservoir will be the water sources. 44. In April 2020, the RP-DI, together with the Resettlement Department of PMO, conducted resettlement due diligence with representatives from Water Resource Bureau of Pingjiang County, Resettlement Bureau of Pingjiang County, Dajiangdong Reservoir Management Institute and other departments.

I. General Situation of Dajiangdong Reservoir 45. Dajiangdong Reservoir is located in Zhongping Village, Nanjiang Town, Pingjiang County, Yueyang City, Hunan Province. The dam site is located in the upper reach of Zhongdong tributary of the Miluo River in Dongting Lake water system in the Yangtze River drainage basin. The rainwater collecting area of the reservoir is 32.39 km2, including 12.6 km2 from outside, with annual average water yield of 38 million m3, total reservoir of 34.4 million m3, normal storage level of 377.20 m, check flood level of 379.42 m, maximum dam height of 61.7 m, as a reservoir subject to mean annual regulation. The reservoir is composed of the dam, flood spillway, water tunnel, power plant, etc., with design irrigation area of 13,000 mu and the installed capacity of 4,000 kW (Level II), which is a multi-purpose medium-sized water conservancy and hydropower project considering flood control, power generation, fish farming, etc. around irrigation. 46. The reservoir was officially commenced in September 1977, and completed and put into water accumulation and operation in November 1979. 47. The operation and management of the Dajiangdong Reservoir has been undertaken by the Dajiangdong Reservoir Management Institute of Pingjiang County, which is a public welfare institution, with 6 authorized positions, including 1 Director, 1 Deputy Director, and 5 staff in total. II. General Situation of Dajiangdong Reservoir APs

48. The submergence impact of Dajiangdong Reservoir mainly involved 2 townships (Nanjiang and Hongqiao), including 38 villages, totaling 2,217 APs designed and investment of CNY 3.6 million. The mode of APs relocation and resettlement was subject to move-back and scattered resettlement, and the mode of production resettlement was resettlement with land and grain subsidy. 49. The total current APs related to this reservoir is 4,312, from 47 villages in 7 townships (Nanjiang Town, Hongqiao Town, Jiayi Town, Longmen Town, Sandun Town, Banjiang Village and Shangta Town). 50. Since 2006, the APs of Huangjindong Reservoir have enjoyed the national post support policy. Each AP receives an annual subsidy of CNY 600, which is directly distributed to the AP's passbook. At the same time, according to the annual financial plan, Hunan Province Government allocates a certain amount of infrastructure construction expenses to improve the transporation, electricity, water supply, communication and other infrastructures to improve living conditions of the APs in the area of Huangjindong Reservoir.

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51. According to the data provided by Pingjiang Water Resource Bureau, capacity of the reservoir will not increase as such no LAR impacts will be caused on surrounding villages. There is no remaining issue for the resettlement of Dajiangdong Reservoir.