RP: PRC: Songhua River Basin Water Pollution Control and

Resettlement Plan

June 2012

PRC: Songhua River Basin Water Pollution Control

and Management Project

Prepared by Mudanjiang Water Affairs Bureau assisted by Harbin International Engineering Consulting Center for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 8 June 2012)

Currency unit – (CNY) CNY1.00 = $0.16

$1.00 = CNY6.37

ABBREVIATIONS

ADB – Asian Development Bank AFs – Affected Families AHs – Affected Households APs – Affected Persons DI – Design Institute DMS – Detailed Measurement Survey EA – Executing Agency FSR – Feasibility Study Report GDP – Gross Domestic Product HHs – Households HIECC – Harbin International Engineering Consulting Center HLJ – Heilongjiang Province IA – Implementing Agency IMA – Independent Monitoring Agency LA – Land Acquisition LAR – Land Acquisition and Resettlement LRB – Land Recourses Bureau M&E – Monitoring and Evaluation MLG – Minimum Living Guarantee MWAB – Mudanjiang Water Affairs Bureau OP – Operational Procedures PMO – Project Management Office PRC – People’s Republic of China RIB – Resettlement Information Booklet ROW – Right of Ways RP – Resettlement Plan S&T – Science & Technology ToR – Terms of Reference VCs – Village Committees WF – Women’s Federation YDG – Yangming District Government

WEIGHTS AND MEASURES

km2 – kilometer mu – Chinese area measure for land, 1mu

= 1/15 ha (1 ha = 15 mu)

NOTE

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

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.

Mudanjiang Urban Wastewater Treatment Plant Phase

II and Intercepting Drainage Pipeline Network

Resettlement Plan

Mudanjiang Water Affairs Bureau Assisted by Harbin International Engineering Consulting Center

8 June 2012

ADB Financing Songhua River Basin Water Pollution Control and Management Project (Heilongjiang Province)

LETTER OF ENDORSEMENT The RPs for the Mudanjiang Sewerage Network Improvement Project and the Luobei Wastewater Treatment and Sewerage Network Improvement Project fully comply with requirements of the relevant laws, regulations and policies of People’s Republic of China, Heilongjiang Province, Mudanjiang Municipal Government and Luobei County Government and as well with ADB’s policy on involuntary resettlement. The Heilongjiang Provincial Project Management Office hereby affirms the contents of the Resettlement Plans and ensures that the resettlement will be made available as stipulated in the budget. The PMO has discussed the resettlement plan with relevant local officials and has obtained their concurrence. The Mudanjiang Municipal Government and Luobei County Government are authorized to manage the implementation of the Project and related resettlement activities.

Heilongjiang Provincial Project Management Office for and on behalf of Heilongjiang Provincial Government

3 July 2012

Table of Contents

ABBREVIATION AND MEASUREMENT UNIT ......................................................................... 1

1. Overview ............................................................................................................................ 1

1.1 Background ................................................................................................................ 1 1.2 Project Description ..................................................................................................... 1 1.3 Impacts of the LAR ..................................................................................................... 2 1.4 Preparation for the RP ................................................................................................ 2

2. Impacts of the LAR ............................................................................................................ 4

2.1 Measures Taken to Avoid or Minimize LAR Impacts ................................................. 4 2.2 Evaluation of the LAR Impacts ................................................................................... 4

2.2.1 Scope of the LAR Impacts .......................................................................................... 4

2.2.2 Summary of Land Acquisition ..................................................................................... 5

Figure 2-2: Layout Map of the Intercepting Drainage Pipeline Network.................................... 6

2.3 Summary of the AHs and APs ......................................................................................... 6 2.4 Evaluation of the Land Loss Impacts ......................................................................... 6 2.5 Impacts of Temporary Land Occupation .................................................................... 8

3. Socioeconomic Profile of the Affected Area and Population ............................................. 9

3.1 Socioeconomic Profile of Yangming District, Mudanjiang .......................................... 9 3.2 Socioeconomic Situation of the Affected Village and APs ......................................... 9

3.2.1 Demographic Features of the APs ................................................................... 10 3.2.2 Land Use ............................................................................................................ 11 3.2.3 Financial Situation of the Surveyed Households ............................................... 11 3.2.4 Vulnerable Groups ............................................................................................ 12 3.2.5 Gender Perspectives on Resettlement ............................................................. 12

4. Public Participation and Information Disclosure .............................................................. 14

4.1 Public Participation Strategy .................................................................................... 14 4.2 Methods and Measures of Public Participation ........................................................ 14 4.3 Public Participation during RP Preparation .............................................................. 14 4.4 Women’s Participation .............................................................................................. 15 4.5 Information Disclosure .............................................................................................. 15 4.6 Public Participation Plan during RP Implementation ................................................ 15

5. Appeal and Grievance Procedure .................................................................................... 18

6. Legal Frame and Policies ................................................................................................ 19

6.1 Applicable LAR Laws, Regulations and Policies ...................................................... 19 6.2 ADB’s Involuntary Resettlement Policies ................................................................. 19 6.3 Related Laws and Regulation of PRC ...................................................................... 21 6.4 Standards and Principles of Compensation ............................................................. 21

6.4.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land

6.5 Gaps between ADB and Chinese Policies ............................................................... 23 6.6 Compensation Criteria and Principles ...................................................................... 25

7. Entitlement Matrix ............................................................................................................ 26

8. Resettlement and Rehabilitation Plan .............................................................................. 28

8.1 Goals and Principles of RP ...................................................................................... 28 8.2 Resettlement Plan .................................................................................................... 28 8.3 Special Attention during Resettlement Process ....................................................... 32

9. Cost Estimate ................................................................................................................... 34

9.1 Compensation and Resettlement Estimate .............................................................. 34 9.2 Annual Budget .......................................................................................................... 34

10. LAR Implementation Schedule..................................................................................... 36

10.1 Principles .................................................................................................................. 36 10.2 LAR Implementation Schedule ................................................................................. 36

11. Institutional Framework ................................................................................................ 38

11.1 Project Resettlement Organizational Set-up ............................................................ 38 11.2 Responsibility ........................................................................................................... 41

12. Monitoring, Evaluation and Reporting .......................................................................... 43

12.1 Internal supervision .................................................................................................. 43 12.1 External Monitoring and Evaluation ......................................................................... 44

APPENDIX 1: Resettlement Information Booklet .................................................................... 47

APPENDIX 2: TOR for External Monitoring and Evaluation .................................................... 54

List of Tables Table 2-1 Comparison of Option I and Option II ........................................................................ 4 Table 2-2 Summary of Land Acquisition and Resettlement Impacts ......................................... 5 Table 2-3 Number of the AHs and APs (Unit: Number) ............................................................. 6 Table 2-4 Loss Analysis of the Permanently Land Acquisition .................................................. 7 Table 2-5 Impact Analysis of the AHs ........................................................................................ 8 Table 3-1 Economic Status of Affected Villages ........................................................................ 9 Table 3-2 Demographic Features of the Surveyed Populations ............................................... 11 Table 3-3 Average Financial Situation of AHs ......................................................................... 12 Table 3-4 Household Expenditures of the Surveyed Rural Households ................................. 12 Table 3-5 Opinions and Concerns of the APs on Resettlement .............................................. 13 Table 4-1 Public Consultation Plan and Process ..................................................................... 16 Table 4-2 Public Consultation Results ..................................................................................... 17 Table 6-1 Gaps between ADB and Chinese Policies ............................................................... 24 Table 6-2 Compensation Standards for the Permanent Land Loss ......................................... 26 Table 7-1 Entitlement Matrix on Project Compensation .......................................................... 27 Table 8-1 Analysis of Income Loss for AHs due to Permanent LA .......................................... 28 Table 8-2 APs’ Engagement in Tertiary Industry ...................................................................... 31 Table 9-1 Detailed Resettlement Cost Estimate ...................................................................... 34 Table 9-3 Annual Budget of Resettlement Cost ....................................................................... 35 Table 9-4 Flow of Funds .......................................................................................................... 35 Table 10-1 Resettlement Supervision Milestone ..................................................................... 37 Table 11-1 The Agencies and Personnel Related to the Resettlement ................................... 38 Table 11-2 The LA Resettlement Organization Structure ........................................................ 40 Table 11-3 Responsibility Agencies ......................................................................................... 41

Lists of Figures

Figure 1-1 Status of the Land to be Acquired ............................................................................ 2 Figure 2-1 Location Map of the WWTP ..................................................................................... 5

ABBREVIATION AND MEASUREMENT UNIT ADB Asian Development Bank AFs Affected Families AHs Affected Households APs Affected Persons DI Design Institute DMS Detailed Measurement Survey EA Executing Agency F Females FSR Feasibility Study Report GDP Gross Domestic Product HHs Households HIECC Harbin International Engineering Consulting Center HLJ Heilongjiang Province IA Implementing Agency IMA Independent Monitoring Agency LA Land Acquisition LAR Land Acquisition and Resettlement LRB Land Recourses Bureau M Males M&E Monitoring and Evaluation MLG Minimum Living Guarantee MWAB Mudanjiang Water Affairs Bureau OP Operational Procedures PMO Project Management Office PRC People’s Republic of China RIB Resettlement Information Booklet ROW Right of Ways RP Resettlement Plan S&T Science & Technology ToR Terms of Reference US$ United States Dollar VCs Village Committees WF Women’s Federation YDG Yangming District Government km2 Square Kilometer % Percentage mu Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu)

CNY Chinese Currency Yuan CNY 1=1/6.37$US ($US 1= CNY 6.37)

Resettlement Plan of Mudanjiang Urban Wastewater Treatment Plant Phase II and Intercepting Drainage Pipeline Network Project

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1. Overview 1.1 Background 1. Mudanjiang City’s Wastewater Treatment Plant Phase II and Intercepting Drainage Pipeline Network Project is one of the subprojects of the Songhua River Basin Water Pollution Control and Management Project funded by the ADB. The Project is located at the south of the Mudanjiang City’s Wastewater Treatment Plant (Phase I) and within the village of Yumin, 5 km downstream from the city. Adjacent to the Hegang-Daqing highway, the two plants are divided by a river called Beian. The place selected, in the downstream of the drainage system, is a planned reserve land for public facilities. 2. The city of Mudangjiang (44o20'-44o51'N,129 o17’-129o55'E) lies between the Zhangguangcai Ridge and the Laoye Ridge of the Changbai Mountain Range, belonging to the middle reaches of the Mudanjiang River Basin. Apart from the city itself, the city of Mudanjiang administrates the cities of Suifenhe, Hailin, Ningan, and Muling, and the counties of Linkou and Dongning, covering an area of 40,600 km2. The area of Mudanjiang consists of four districts which are the Dongan, Xian, Aimin and Yangming, plus its main city comprising the Old District and the Xinglong, totaling 1,351 km2. The Yumin village within which the project located is under the administration of the Yangmin District. 3. The drainage area is divided considering such factors as location of the main district, natural landform, rivers and railways, road networks, etc. Currently the city of Mudanjiang has 387 km of drainage pipelines (including the main line and branches), 40 km of which are dilapidated ones dating back to the Japanese Puppet Regime Period, seven pumping stations and 44 km2 of drainage facilities. Inside the dyke of the Mudanjiang River are 12 ponds using combined system and 8 drainage outlets, through which sewage in raining season is delivered into the Songhua River and takes its toll on the river. The drainage area is divided to the Tiebei area, whose sewage runs into the Beian river and the Tienan area, part of the sewage is collected by the drainage system and then comes by gravity flow discharge to the Wastewater Treatment Plant (Phase I) (100,000 m3 / d) for processing. 4. The existing wastewater treatment plant runs at its full capacity. The 1.5 × 1.5 m of double arterial drainage ditch inside the city constructed for war preparation in 1971 undertakes all the drainage transport of the Tienan drainage area. It has been heavily dilapidated and silts itself with sludge, hiding a possible trouble for the city. The 40 km of seriously damaged drainage pipelines dating back to the Japanese Puppet Regime Period often cause water logging inside the city with its poor drainage. The area along the Lianghua road has no drainage facilities at all. The flat terrain, crowded pipe networks and a failed attempt to enhance the drainage system in the main district combined leave its sewage pouring into the Mudanjiang River unprocessed, causing a serious pollution to the Mudanjiang River and even the waters of Songhua River. For the purpose of developing the economy of Mudanjiang and of improving the living standards of its people, the Project is fairly necessary. 1.2 Project Description 5. This project includes: a wastewater treatment plant with a capacity of 100,000 tons per day, its water quality reaching the Primary Standard of the Pollutant Discharge Standard for Municipal Wastewater Treatment Plants (GB18918-2002), and its treatment using carbon-added Modified A~2/O Process for Biological Phosphorus Removal and sludge dewatering machine approach; retention diverging drainage pipelines (D600—D1800 mm) along the roads and 100 m of reinforced concrete channel (2.8 m×2.0 m) totaling 40.345 km, and 679 inspection wells; 3 lifting pump stations. Once the project is completed, the


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intercepting drainage pipeline network will be enhanced significantly, with sewage treatment rate as high as 80%, reducing 15,330 tons of COD each year. The WWTP site covers an area of 9.24 ha or 138.6 mu. 6. The total investment for the project is: CNY161 million, including CNY 50 million subsidies by the State Government, CNY 80 million ADB loans and CNY 31 million self-financing. 1.3 Impacts of the LAR 7. The land within the ROW of the Mudanjiang City’s Wastewater Treatment Plant Phase II and Intercepting Drainage Pipeline Network Project is collective-owned arable land (dryland); and there is no structure on it within the red line. The affected area is determined with FSR and DMS conducted in March 2012. Only permanent LA is involved. 8. The project needs to acquire 9.24 ha (138.6 mu) of land, all of which is farmland (dryland). Given the LA is permanent, a total of 40 villagers from 15 households will be affected. However there is no temporary land occupation and house demolition to be involved and no ethnic minorities and vulnerable group to be affected. 9. The land to be acquired is the collective-owned farmland (dryland), accounting for 39.6% of the entire village collective-owned farmland. The impacts to the village collective land and farmland loss are relatively significant. However, the associated income will be lost due to land acquisition. For this reason, income rehabilitation measures have been taken into consideration in the RP.

Figure 1-1: Status of the Land to be Acquired

1.4 Preparation for the RP 10. In accordance with ADB’s Safeguard Policy Statement and relevant laws and regulations, the RP is compiled by the Harbin International Engineering Consulting Center. Its content is consistent with ADB's Policy on Involuntary Resettlement and the laws and regulations of the PRC and Heilongjiang Province.


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11. The Preparation of the RP is prepared based on the project and legal documents, and the results of public participation and consultation as follows: (1) Design Basis

(i) Feasibility Study Report; (ii) Statistical Yearbook of Mudanjiang City in 2009; (iii) Master Plan of Mudanjiang City Urban Development; (iv) 12th -Five Year Plan for the Integration of Rural and Urban Economy of the

Hegang City; and, (v) 12th -Five Year Plan Essentials for the Economic and Social Development of

the Yangming District (Draft) (2011-2015). 12. The RP is prepared based on the feasibility study report (FSR) and DMS, therefore, the LAR impacts have already been fixed and census conducted. If any design changes the impacts of LAR, the RP will be revised and submitted to ADB for approval. (2) Legal and Policy Basis

(i) Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;

(ii) Land Administration Law of the PRC, amended in 2004; (iii) Implementation Regulation for Land Administration Law of PRC; December

1998; (iv) Notification on Adjusting Newly Added Construction Land Use Fee Collection

issued by the Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];

(v) Provisional Regulations of the People’s Republic of China on Land Use Tax (2008);

(vi) Land Administration Law of PRC (2001); (vii) Sewage Fee Collection Standard Management Practices (State Order No. 31); (viii) Provisional Regulations on Land Use Tax (2008); (ix) Regulations on Land Administration of Heilongjiang Province; (x) ADB’s Policy on Involuntary Resettlement (Manila, 1995); (xi) ADB’s Handbook on Involuntary Resettlement (Manila, 1998); (xii) ADB’s Gender Issue in Resettlement (Manila, February 2003); and, (xiii) ADB Operations Manual: Bank Policies and Operational Procedures (Manila,

2006). (3) Public Participation and Community Consultation Activities

(i) Visited affected communities; (ii) Conducted a sample survey on the social economic situation of AHs from

August 2011 to September 2011; (iii) Conducted an information survey on the LAR from August to September,

2011; (iv) Held a consultation workshop on the environment and resettlement with the

Heilongjiang Development and Reform Commission and representatives of relocated persons in October 2011.

13. ADB’s Involuntary Resettlement Safeguard is aimed at: avoiding involuntary resettlement as much as possible; reducing the impact of involuntary resettlement to the least with alternative solutions; improving the living standards of the relocated persons or ensuring that their livelihood will be at least raised to the level before their resettlement; and improving the living standards of the relocated families living under the MLG and other vulnerable groups resettled.


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2. Impacts of the LAR 2.1 Measures Taken to Avoid or Minimize LAR Impacts 14. In order to reduce the impacts of land acquisition and resettlement to the least, the option for the project was carefully examined, and the most optimized one has been selected. Measures adopted to reduce the impacts of land acquisition and resettlement are as follow: i) controlling the land acquisition area strictly using coordinate mapping; ii) avoiding arable land acquisition and houses demolition as much as possible and protecting forest land and telecommunication lines. According to the Urban Master Plan of Mudanjiang City, it is required that the WWTP should be located at the end of the urban drainage system for the convenience of the wastewater collection and discharge of treated wastewater. Option I: The WWTP is located at the north corner of current WWTP and at the south of No. 2 Power Generation Plant. The disadvantage is that No. 2 Power Generation Plant is close to the residential houses of the Power Generation Plant, which cannot meet the regulated standards. In addition, there are ground attachments, land to be acquired is relatively big and the number of households and population to be affected is relatively larger. If the residential houses of the Power Plant need to be demolished, more investment is required for the Project. Option II: The WWTP is located at the south of the current WWTP. Between the current WWTP and proposed WWTP, Beian River passes by. Along the river, the land use id agricultural land (flooded land) without structures and ground attachments. The number of affected villagers is relatively smaller. The pipeline collecting with the WWTP and pipeline for treated wastewater discharge are relatively shorter. The transportation and supplies of electricity, water and heating is more convenient, which can reduce the total engineering investment. Option II is determined after the evaluation of the experts from Heilongjiang Provincial Development and Reform Commission. Table 2-1 illustrates how Option Two reduces the amount of LA from Option One. Option Two was ultimately selected for the project.

Table 2-1: Comparison of Option I and Option II

Item

Option I Option II

AHs APs

Buildings to Be

Demolished (m

2)

Land to Be

Acquired (mu)

AHs APs

Buildings to Be

Demolished (m

2)

Land to Be

Acquired (mu)

Mudanjiang Urban Wastewater Treatment Plant

20 65 430 152 15 40 0 138.6

Total 20 65 430 152 15 40 0 138.6

AH = affected households, AP = affected persons.

2.2 Evaluation of the LAR Impacts 2.2.1 Scope of the LAR Impacts 15. The affected area is decided primarily based on the data obtained from relevant government departments, questionnaires, on-site measurements of the affected persons’ field interviews, meetings, personal visits, etc. 16. Under the supervision of the Mudanjiang Water Affairs Bureau, the YDG and the village committee conducted a full property census and socio-economic survey from August to March 2012 in order to obtain the required data to prepare for the RP. The survey has provided basic information on the area to be affected, financial losses by the LAR, socio-economic impacts, APs’ plans to rehabilitate their livelihood, project budget, and the M&E.


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17. The project will mainly affect the land, but not involved houses and its auxiliaries, infrastructure and special facilities. The Yumin Village Committee and villagers’ representatives have consulted on questions of LAR compensation and LAR in the RP. 2.2.2 Summary of Land Acquisition 18. According to the affected area decided, only permanent LA is included; and there is no temporary land occupation, demolition of structures, infrastructures and special facilities involved. Table 2-2 provides the summary of the LAR impacts.

Table 2-2: Summary of Land Acquisition and Resettlement Impacts

Administrative Jurisdiction Permanent LA

AHs (No.)

APs (No.)

City Town/County Village Total Area

Collective-Owned Farmland (Dryland)

ha mu ha mu

Mudanjiang Yangming District

Yumin Village

9.24 138.6 9.24 138.6 15 40

Total 9.24 138.6 9.24 138.6 15 40


19. A total of 0.75 mu land will be used for the construction of the three pumping stations which will be on the planned and reserved land to be used for municipal infrastructures construction along the road in the urban district, and the land is always state-owned and vacant. The land will be transferred to Mudanjiang Water Affairs Bureau by the Mudanjiang Land Resources Bureau, thus no land acquisition and resettlement will be involved. The area of land to be used will be included in the impact assessment. The following figure provides the location map of the WWTP, affected village and three pumping stations.

Figure 2-1: Location Map of the WWTP


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Figure 2-2: Layout Map of the Intercepting Drainage Pipeline Network

2.3 Summary of the AHs and APs 20. A total of 15 AHs and 40 APs will be affected by permanent land acquisition in Yumin Village of Yangming District. In the affected area, no ethnic minorities will be affected; and among the AHs, no vulnerable group is involved. Table 2-3 summarizes the numbers of the AHs and APs.

Table 2-3: Number of the AHs and APs (Unit: Number)

Administrative Jurisdiction AHs and APs

City District Village AHs APs

Mudanjiang Yangming District Yumin Village 15 40

Total 15 40


2.4 Evaluation of the Land Loss Impacts 21. The project involves permanent acquisition of 9.24 ha (138 mu) of land. The APs in the Yumin Village will lose 81.1% of their farmland which is within the ROW. 22. The AHs will lose 81.1% of their farmland, which is a significant loss, accounting for 9.24 mu for each family. The average income loss due to land acquisition accounts for 70.8% of their household income, which is CNY 16,077.6 per year. It can be concluded that their loss from the LA are significant. The loss analysis of the permanent LA as presented in Table 2-4 and Table 2-5 which is based on the farmland and its associated income loss.

Layout Map of the Intercepting Drainage Pipeline Network


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Table 2-4: Loss Analysis of the Permanently Land Acquisition Village

Item

Impacts before the LA LA Impact of the Project % of Land Loss Remaining

Farmland (mu)

Total HHs (No.)

Total Popula

tion (No.)

Total Land Area (mu)

Farmland Area (mu)

Farmland Area of

AHs (mu)

AHs (No.)

APs (No.)

Land Loss

of AHs (mu)

Farmland

Loss of AHs (mu)

% of Village Land Loss

% of Village

Farmland Loss

% of AHs Farmland

Loss Village AHs

Yumin 293 610 350 350 171 15 40 138.6 138.6 39.6% 39.6% 81.1% 211.4 32.4

TOTAL 293 610 350 350 171 15 40 138.6 138.6 39.6% 39.6% 81.1% 211.4 32.4


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Table 2-5: Impact Analysis of the AHs

No. Item Yumin Village

I Impact

1 AHs (No.) 15

2 APs (No.) 40

4 LA (mu) 138.6

5 Land of the AHs per capita before the LA (mu) 4.28

6 Land of the AHs per capita s after the LA (mu) 0.81

7 Land loss per household (%) 81.1%

8 Income loss per household (%) 70.8%

II Source of income

9 Agriculture income per household (CNY) 19,836

Agriculture income as a percentage of totals (%) 87.3%

10 Average annual household income 22,720

III Land loss (%)- measured by AHs

11 < 10%

12 > 10% - 30%

13 > 30% - 50%

14 > 50% - 70%

15 > 70% - 90% 12

16 > 90%-100%

17 100% 3

18 Total 15

IV Land loss(%)-measured by APs

19 < 10%

20 > 10% -30%

21 > 30% - 50%

22 > 50%-70%

23 > 70% - 90% 33

24 > 90%-100%

25 100% 7

Total 40 Note: A total of 40 villagers in 15 households are affected by the permanent LA. The data above represents the AHs and APs only.

2.5 Impacts of Temporary Land Occupation

23. All pipeline engineering works will be constructed along the state-owned land (river bottom land and roads), no households and population will be affected. The construction will be carried out by sections, therefore the road will be affected only for one month to three months at maximum. It will only cause some inconveniences to local residents, shops and traffics. The use of pipe-jacking may cause disruption to businesses. The construction procedures/measures will be included in the contracts to: i) avoid disturbances; ii) minimize time in sensitive areas, not to exceeding 2 weeks; and iii) if longer than 2 weeks, compensation should be provided for disruption business. The cost is included in the engineering cost.


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3. Socioeconomic Profile of the Affected Area and Population 3.1 Socioeconomic Profile of Yangming District, Mudanjiang 24. The city of Mudanjiang is the political, economic, and cultural and information center of the southeastern Heilongjiang. As the core city of trade with Russia, it has entered a high speed growth stage of economic and social development, and has become one of the vibrant areas in Heilongjiang Province. The project is located in Yumin village which is under the jurisdiction of Yangming District, Mudanjiang. 25. The Yangming District has been determined by the provincial government as the major district of urban development jointly managed by the province and the city, and as provincial experimental area of sustainable development. The Yangming industry demonstration base is the first provincial development zone undertaken by a city district in Heilongjiang. In 2010, the GDP of the district achieved CNY 3.7 billion by a growth rate of 30.5% with per capita GDP reaching CNY 26,194. The fiscal revenue attained a growth of 33.8% at CNY 400 million. Investments play a significant role in pushing the growth with fixed investments reaching CNY 2.03 billion by annual rise of 89.1%. The strength of consumption in driving growth is also increasing. All major economic indicators of the district grew fivefold over the year. 26. In recent ten years, large amount of LA needed by the construction of the Russia-trade industry zone which has left the Yumin as a Village in City, and transferred almost all young people to urban household registration “Urban Hukou”. They are arranged with jobs in factories. The existing land of the village is dryland at large and a few vegetable sheds. The major food crops are corn and soybean. The annual output in Yumin Village is CNY 4.2 million, of which agricultural income accounts from CNY 1.2 million, only 28.6% of the total income; while CNY 3 million are non-agricultural income, which is 71.4%. 3.2 Socioeconomic Situation of the Affected Village and APs 27. From August to October 2011, the Yumin Village launched a survey on the socio-economic situation of AHs under the guidance of the Project IA (Mudanjiang Water Affairs Bureau). The main purposes of the survey are: i) preparation of the socio-economic information of APs losing their land and property because of the project; ii) information of the APs’ level of understanding on the project; and iii) identify the APs’ choices on LA and income restoration options. 28. This survey covers the permanent LA affected villages and households. A total of 15 (or 100% of the households affected by permanent LA) were surveyed. The economic conditions of the affected villages are shown in Table 3-1.

Table 3-1: Economic Status of Affected Villages

Item Yumin Village

Total Households (No.) 293

Total Population (No.) 610

Females (No.) 350

Agricultural Population (No.) 465

Non-Agricultural Population (No.) 145

Total Area of Farmland of Affected Village (mu) 350

Paddy land (mu) 0

Irrigated land (mu) 0

Dryland (mu) 280


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Item Yumin Village

Vegetable land (mu) 70

Wood land (mu) 0

Orchard land (mu) 0

Fish pond (mu) 0

Waste land (mu) 0

3.2.1 Demographic Features of the APs 29. The demographic features of the specifically surveyed APs are listed in Table 3-2, including age, demographic composition, gender differences in education and work. 30. All of the families and people surveyed are registered as rural households, including 20 women (50%). The average population per family is 2.5. Among the APs, 31 people are in labor force, which is 77.5% of the total. The survey on the age of the population shows that: age of the population is normally distributed: 7.5% of the total surveyed population is between 7 years old and 19; a majority of 52.5% is 20 years old to 50; people who are or older than 71 make up 2.5% of the total. Of the total population between the ages of 50 and 70 years old (37.5%), there are 13 persons in labor force, including 10 males and 3 females above 50 years old and under 60 years old. They are retired farmers are still registered as farmers in this village. 31. Over half of the APs received secondary school education or more, ranking first with a percentage of 55; 15% of them took only primary school education; 20% ended in high schools; 5% received junior college education or more; and there are no illiterate and child before school age. 32. The employment is characterized by: 25% of APs have jobs (construction and transportation), 75% are engaged in agriculture and sideline (e.g., livestock-raising). They use free time from agricultural production to work as migrant workers as one of their sources of income; some young people go out as seasonal labors.


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Table 3-2: Demographic Features of the Surveyed Populations

Item Male Female Total

Number % Number % Number %

Household:15 20 50.00% 20 50.00% 40 100.00%

Household Size: 2.7

Age

≤6

7-19 1 2.50% 2 5.00% 3 7.50%

20-35 2 5.00% 3 7.50% 5 12.50%

36-50 5 12.50% 11 27.50% 16 40.00%

51-60 10 25.00% 3 7.50% 13 32.50%

61-70 1 2.50% 1 2.50% 2 5.00%

≥71 1 2.50% 1 2.50%

Total 20 50% 20 50% 40 100.00%

Composition

Kids (<7 )

Students 1 2.50% 4 10.00% 5 12.50%

Labor Force 17 42.50% 14 35.00% 31 77.50%

*Retired 2 5.00% 2 5.00% 4 10.00%

Total 20 50.00% 20 50.00% 40 100.00%

Education

Illiterate

Primary School 4 10.00% 2 5.00% 6 15.00%

Middle School 11 27.50% 11 27.50% 22 55.00%

High School 4 10.00% 4 10.00% 8 20.00%

Vocational School

College 1 2.50% 1 2.50% 2 5.00%

University or Above 2 5.00% 2 5.00%

Total 20 50.00% 20 50.00% 40 100.00%

Vocation

Seasonal Labor 4 12.50% 4 12.50% 8 25%

Farmer 13 42.00% 10 33.00% 23 75%

Total 17 54.5% 14 45.5% 31 100.00%

Note: The retired person means female ≥55 years, male≥60 years. Data source: Socioeconomic survey of the RP between August and October, 2010.

3.2.2 Land Use 33. The farmland of the project affected village totals an area of 138.6 mu. Each of the 15 AHs has 11.4 mu of land and the AP has 5.06 mu per capita. The land is mainly dryland and vegetable land, and the main grains are corn and soybean. Because of the LAR, the affected village will lose 39.6% of its collective-owned land, and the AFs will lose 9.88% of their arable land. 3.2.3 Financial Situation of the Surveyed Households 34. According to the statistics of the survey, the average annual income of the respondent families is CNY 22,720, with an annual income of CNY 8,415 per capita, 13% of which comes from tertiary industry work (cook and hairdressing), 87% from agricultural production and the sideline. It can be seen that the farming is main income sources, which is quite lucrative. Therefore, the land loss impact is very serious. In the total income of one family, 56% is contributed by males, and the rest 44% by females. Table 3-3 presents the detailed average


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income of AFs classified by genders.

Table 3-3: Average Financial Situation of AHs

Source of Income Average Household Income

Total Income(CNY) % Male (CNY) % Female (CNY) %

Service industry 2,884.0 13% 1,800.0 8% 1,084.0 5%

Agriculture and sideline 19,836.0 87% 10,909.8 48% 8,926.2 39%

Total 22,720.0 100% 12,709.8 56% 10,010.2 44%

35. According to the survey, the average annual household expenditure is CNY 16,840, 50% of which is mainly spent on agriculture investment and food. Table 3-4 is a survey on monthly household expenditures of the farmers.

Table 3-4: Household Expenditures of the Surveyed Rural Households

Expenditure Average Annual Expenditure Per

Person(CNY)

Average Annual Expenditure Per

Household

% of the Total Household

Expenditure

Food 686 1,852.4 11%

Utilities 249 673.6 4%

Cloth 437 1,178.8 7%

Transportation 249 673.6 4%

Telecommunication 249 673.6 4%

Education 437 1,178.8 7%

Medical Service 873 2,357.6 14%

Gifts 437 1,178.8 7%

Agriculture Investment

2,432 6,567.6 39%

Others 187 505.2 3%

Average Household Expenditure

6,237 16,840.0 100%

3.2.4 Vulnerable Groups 36. According to the survey, no vulnerable group is involved. 3.2.5 Gender Perspectives on Resettlement 37. On the resettlement, the majority of male and female respondents requested a fair and reasonable compensation, employment, children's education, relevant compensation are in place on time. On the land issue, the affected villagers hope to get all the cash compensation and future employment. According to the 15 respondent families interviewed, some of them want to start a small business with the compensation or to master some skills through training, and women also want to work in enterprises, institutions or public service instead of farming. Table 3-5 provides the views and concerns of the APs for resettlement. All problems are integrated into planning and implementation of resettlement program, and relevant mitigation measures need to be clearly formulated and carried out.


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Table 3-5: Opinions and Concerns of the APs on Resettlement

Item % of Males % of Females

Fair Compensation 100 100

Availability of Replacement Houses

Timely Compensation 100 100

Employment 100 100

Obtaining Reconstruction Land

All Cash Compensation 100 100

Future Employment 100 100

Children’s Education 15 22.5

Assistance during Resettlement

Loss of Family Social Network

Others (Government’s Assistance)

38. In the total population of APs, there are 20 females, which accounts for 50%, including 14 female labors. More and more females are involved in agriculture and domestic work compared with men. Men’s income from the agriculture and sideline is 9% higher than women’s. Therefore, the impact of losing land is more serious to male than to females. The Mudanjiang City Government and Mudanjiang Water Affairs Bureau will provide both females and males specific training based on the actual situation of the affected households, such as training provision for women to open the businesses of beauty salon, food catering services and grocery store, and for men to open the businesses of transportation services, food catering services and grocery store, to increase the knowledge and skills required by their new jobs. These jobs will reduce the workload of the APs from the relatively heavy agricultural production activities, and meanwhile to increase their income through the development of service industry. 39. In addition to the above income rehabilitation measures, Yangming District Government will provide the APs with the social insurance, including pension, medical care and employment opportunities according to the relevant national regulations to ensure the livelihood of the farmers. Based on the “Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Heilongjiang Province”, Mudanjiang City Government has made clear regulation on the pension, medical care and minimum living guarantee for those farmers whose land is acquired, with 30% contribution from the local government and 70% contribution from rural collectives and farmers. As a result, the APs are willing to provide their land for the construction of the Project.


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4. Public Participation and Information Disclosure 4.1 Public Participation Strategy 40. During the preparation of the Project Plan and the Resettlement Plan, great importance was paid to the public participation, and consultation has been taken with the VCs, government organizations and the APs. 4.2 Methods and Measures of Public Participation 41. While preparing the project FSR, Mudanjiang Water Affairs Bureau had various meetings with the concerned organizations and villagers’ representatives to negotiate and discuss on the compensation and income rehabilitation plan. The RP has been prepared based on the above. 42. During the implementation stage of the project, public participation in LA, livelihood and income recovery will be encouraged. 4.3 Public Participation during RP Preparation 43. During the RP preparation, all relevant organizations and representatives have participated in the following activities:

(i) The survey on LA and resettlement from August to October 2011 was participated by all the concerned organizations and villagers’ representatives (including females). Basically all the activities had females attended and they studied the index of the final result of the survey.

(ii) Mudanjiang Water Affairs Bureau had several meetings which declared existing national, Heilongjiang provincial resettlement policies and the Disclosure of ADB’s Involuntary Resettlement Policy with regional leaders, representatives and APs from August to October, 2011. Getting suggestions and advices on reducing project impact, defining compensation rate and resettlement and livelihood rehabilitation plans from the participants had been done. By extensive consulting, the APs agreed on the compensation of cash or physical resettlement for their loss.

(iii) During the resettlement planning from August to October, 2011, the PMO, Mudanjiang Water Affairs Bureau, DI and other concerned organizations visited the villages and had meetings with village leaders and villager representatives on LAR, compensation policies and standards, RP and measures for income rehabilitations. These consultation conferences and surveys contributed a lot to the RP, compensation standards, compensation rights and income rehabilitation plans.

(iv) To increase the APs’ consciousness, the IA made a questionnaire survey to the affected communities and APs from August to October, 2011. The survey, which covered all the affected villages and households, provides wide representation. It is reliable, and reflects the willingness of the APs.

(v) Consultation conferences on environment and resettlement were held from August to October, 2011.

44. The APs’ willingness according to the consultations include: for the land loss, sufficient compensation in cash in full amount and jobs should be provided. Some of the interviewed APs want to start business with the compensation or to gain a skill through training courses and work in enterprises instead of the farmland. They want to rehabilitate the livelihood and income with the compensation for their land, such as: (i) to buy social


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insurance; (ii) to work in tertiary industry (catering industry, hair salon, waste collection, grocery stores, pharmacies, and transportations); and (iii) to pay for the education of their children. They want to find jobs in institutes, enterprises and commercial organizations after taking training courses. The APs are satisfied with the compensation, measures of livelihood restoration and social security. Yet, they also expressed their concerns on fair compensation and timely payment. 4.4 Women’s Participation 45. Females in this project have the same rights and interests with males, and they worked as an important part in the planning, designing and implementing of the project. In the field investigation, at least 75% of the female participated in the statistical work of LAR and physical index. Moreover, in the resettlement consultation conferences held by the local government, 50% of the attended APs are females, and they expressed their opinions in full representation of local females. Conclusively speaking, local female concerned more on fair compensation standards, timely payment, and government support during the LAR and preferences on professional training courses. 4.5 Information Disclosure 4.5.1 Resettlement Information Brochure

46. To help APs with a better understanding of LAR policies and their rights, the Mudanjiang Water Affairs Bureau have given every AH a Resettlement Information Handbook, which mainly includes: (1) General introduction of project and social economic performance (including target and site selection). (2) Project Impact. (3) Laws and regulations on LAR. (4) Basic rights and legal rights and interests of APs. (5) Compensation rate. (6) Resettlement and income rehabilitation plan as well as procedures of complain or appeal. (7) Implementation Plan. Meanwhile, RIB also informs APs how to raise grievances and appeal through different channels (including the VCs, Mudanjiang Water Affairs Bureau, Bureau of Land Resources, and court) in different ways (like appealing to the higher authorities for assistance, through mails or calls). 47. The draft RIB was distributed in January 2012. The revised RIB based on the Implementation Measures for Integrated Land Price for Land Acquisition in Heilongjiang Province” [Heizhengfa (2011) No. 51] (effective on 18th July, 2011) was re-distributed in May 2012. 4.5.2 Distribution of the Resettlement Plan

48. The revised RIB and RP was distributed to Yumin village with the approval of Mudanjiang City Government in May, 2012. Meanwhile, the RP will be posted on the website of ADB. 4.6 Public Participation Plan during RP Implementation 49. To properly and timely solve the problems and satisfy the requirements of the APs caused by LAR, the public consultation continued so that all the problems were solved. Mudanjiang Water Affairs Bureau arranged meetings on the LAR. Table 4-1 lists the plan and procedures of public consultation, and Table 4-2 lists the result of public consultation. To carry out the RP successfully, APs were encouraged to participate in various LAR activities.


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Table 4-1: Public Consultation Activities and Process

Meeting Purpose Meeting Form Time Implementing

Agencies Target Participants Remarks

1. Provide briefings to APs on Project & RP. Solicit comments from APs.

Community meetings and group discussions on problem solutions.

August to October 2011

PMO, Yumin VC, MWAB, HIECC

All of the APs of LAR (40 people of 15 households)

The meeting will be held in the affected Yumin Village.

2. Disclosure of RIB VC meetings and discussions of concerned APs.

January 2012 PMO, Yumin VC, LRB, MWAB


Resettlement Information Booklet Disclosure, discussion on issues concerned and suggestions on LAR

Accept discussion from all parties and request suggestions and advices

3. Present Draft Final RP to APs

Meetings in public and Community meetings with the discussion of key groups.

January 2012 PMO, Yumin VC, MWAB


Final draft report of LAR announcement to APs and discuss issues concerning LAR

Accept discussion from all parties and request suggestions and advices

4. DMS Field survey and residents visit.

March 2012 PMO, Yumin VC, LRB, MWAB, HIECC

All of the APs of LAR (40 people of15 households)

Index survey of LAR and physical property.

Collection of Socio-Economic data

5. Suggestions to APs on rights and interests date of payment.

Meetings in public January 2012 PMO, Yumin VC, MWAB

All the beneficiaries and APs of LAR.

Meeting with AFs on compensation and rights and interests.

6. Disclosure of revised RIB and RP before the submission of the RP to ADB.

Meetings in public and community meetings with the discussion of key groups.

May 2012 PMO, Yumin VC, MWAB, HIECC

All the participants of the project, beneficiaries and APs

Meeting with beneficiaries and APs

7. Monitoring APs and beneficiaries

Home interviews May 2012- December 2013

PMO, Yumin VC, MWAB, LRB, IMA

Random Sampling Advices provision

Monitoring plan


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Table 4-2: Public Consultation Results

Location Time Form Number of

participants

Major Topic of Discussion

Discussion Proposed by APs

Yumin Village

August 2011 Resettlement survey

55 Project Description, impact of LAR and measures to minimize it.

Support project construction, compensation of resettlement to be provided fairly and timely in LAR affected area.

Yumin Village

August to September 2011

Consultation conference

50 Compensation standards, rights, resettlement plans and income rehabilitation measures.

Agree with the compensation rate, to develop tertiary industry with the assistance of local government, priority of job opportunities given to APs with training, and fair land redistribution.

Yumin Village

October 2011 Group Discussion

55 Main contents of the RP (LAR impact, laws and regulations, compensation, rights, resettlement plans, livelihood and income rehabilitation plans, procedure of appeal, schedule, etc.)

Compensation to be paid on time, to develop tertiary industry with the assistance of local government, to improve and perfect the procedure of appeal.


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5. Appeal and Grievance Procedure 50. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through village committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps. Step 1: 51. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Step 2: 52. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the township government office after receiving the decision; the township government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 3: 53. If the aggrieved AP is still not satisfied with the decision of the township government office, he/she will appeal to the Project Management Office (PMO) or Land Resource Bureau (LRB) after receiving the decision. The PMO or LRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 4: 54. If the aggrieved AP is still unsatisfied with the decision of the PMO or Mudanjiang LRB, he/she will appeal to the Heilongjiang LRB after receiving the decision. The Heilongjiang LRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 5: 55. If the AP is still dissatisfied with the decision of the Heilongjiang LRB, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision from Heilongjiang LRB. The AP will be informed of the result via written notice. 56. The APs can take judicial proceedings on any aspect of the LAR including compensation standards and payments. If the APs want to complain, they can raise their issues to Mudanjiang City Land Resources Bureau. The person in charge is Section Chief, Mr. Jiang Dewen. The telephone number is: 0453—6277149. 57. PMO will employ IMA to be in charge of all the monitoring and evaluation in this project. In the resettlement, IMA will check and report the speed of resettlement as well as the organization of the PMO and different levels of institutional framework in the LAR.


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6. Legal Frame and Policies 6.1 Applicable LAR Laws, Regulations and Policies 58. The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and Heilongjiang regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Safeguard Policy Statement (2009). The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. 59. Land acquisition and resettlement of this Project will be implemented according to the laws and regulations of PRC, local government and ADB:

(i) Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;

(ii) Land Administration Law of the PRC, amended in 2004; (iii) Implementation Regulation for Land Administration Law of PRC;

December 1998; (iv) Notification on Adjusting Newly Added Construction Land Use Fee

Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]

(v) Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; (vi) Regulations on the Land Management of HLJ Province (2000); (vii) Implementation Measures for Integrated Land Price for Land

Acquisition in Heilongjiang Province” [Heizhengfa (2011) No. 51](effective on 18th July, 2011)

(viii) ADB’s Involuntary Resettlement Policy, 1995; (ix) Handbook on Resettlement: A Guide to Good Practice, ADB Manila,

1998; (x) Gender Checklist: Involuntary Resettlement, ADB Manila, February

2003; and, (xi) OM Section F2 - Operations Manual: Bank Policies (BP) and

Operational Procedures (OP), ADB, Manila, 2006. 6.2 ADB’s Involuntary Resettlement Policies 60. The ADB’s Involuntary Resettlement Policy, 1995 and Resettlement Operations Manual (OM, F2) have already specified the 3 important elements of the involuntary resettlement: (1) Compensation to replace lost assets, livelihood, and income; (2) assistance for relocation, including provision of relocation sites with appropriate facilities and services; (3) assistance for rehabilitation to achieve at least the same level of well-being with the Project as without it. Some or all of these factors may be present in a project involving involuntary resettlement. For any ADB project that relocation and resettlement is needed, the RP is an integral part of the project design, to be dealt with from the earliest stages of the Project cycle, taking into account the following basic principles:

(i) Involuntary resettlement should be avoided whenever feasible.

(ii) Where population displacement is unavoidable, it should be minimized

by providing viable livelihood options.


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(iii) Replacing what is lost. If individuals or a community must lose all or

part of their land, means of livelihood, or social support systems so that

the project can proceed, they will be compensated and assisted

through replacement of land, housing, infrastructure, resources,

income sources, and services, in cash or kind, so that their economic

and social circumstances will be at least restored to the pre-project

level. All compensation is based on the principle of replacement cost.

(iv) Involuntary resettlement is conceived and executed as part of a

development project or program. ADB and executing agencies or

project sponsors, during project preparation, assess opportunities for

affected people to share project benefits. The affected people need to

be provided with sufficient resources and opportunities to reestablish

their livelihoods and homes as soon as possible, with time-bound

action in coordination with the civil works.

(v) The affected people are to be fully informed and closely consulted.

Affected people are to be consulted on compensation and/or

resettlement options, including relocation sites, and socioeconomic

rehabilitation. Pertinent resettlement information is to be disclosed to

the affected people at key points, and specific opportunities provided

for them to participate in choosing, planning, and implementation

options. Grievance redress mechanisms for affected people are to be

established. Where adversely affected people are particularly

vulnerable groups, resettlement planning decisions will be preceded by

a social preparation phase to enhance their participation in negotiation,

planning, and implementation.

(vi) Social and cultural institutions. Institutions of the affected people, and,

where relevant, of their hosts, are to be protected and supported.

Affected people are to be assisted to integrate economically and

socially into host communities so that adverse impacts on the host

communities are minimized and social harmony is promoted.

(vii) No formal title. Indigenous groups, ethnic minorities, pastoralists,

people who claim for such land without formal legal rights, and others,

who may have usufruct or customary rights to affected land or other

resources, often have no formal legal title to their lands. The absence

of a formal legal title to land is not a bar to ADB policy entitlements.

(viii) Identification. Affected people are to be identified and recorded as early

as possible in order to establish their eligibility through a population

record or census that serves as an eligibility cutoff date, preferably at

the project identification stage, to prevent a subsequent influx of

encroachers or others who wish to take advantage of such benefits.


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(ix) The Poorest. Particular attention must be paid to the needs of the

poorest affected people, and vulnerable groups that may be at high risk

of impoverishment. This may include those without legal title to land or

other assets, households headed by females, the elderly or disabled

and other vulnerable groups, particularly ethnic minority groups.

Appropriate assistance must be provided to help them improve their

socio-economic status.

(x) The full resettlement costs are to be included in the presentation of

project costs and benefits. This includes costs of compensation,

relocation and rehabilitation, social preparation and livelihood programs

as well as the incremental benefits over the without-project situations

(which are included in the presentation of project costs and benefits).

The budget also includes costs for planning, management, supervision,

monitoring and evaluation, land taxes, land fees, and physical and

price contingencies. Where loans include subprojects, components or

investments prepared only after project approval and loans through

financial intermediaries that are likely to cause involuntary resettlement,

sufficient contingency allowance must be allocated for resettlement

prior to approval of the loan. Similarly, resettlement plans should also

reflect the timeframe for resettlement planning and implementation.

(xi) Eligible costs of compensation. Relocation and rehabilitation may be

considered for inclusion in ADB loan financing for the project, if

requested, to assure timely availability of the required resources and to

ensure compliance with involuntary resettlement procedures during

implementation.

6.3 Related Laws and Regulation of PRC 61. This Project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004, It also follows the relative clauses of other laws and regulations. 6.4 Standards and Principles of Compensation 6.4.1 Document 28: State Council Decision to Deepen Reform and Strictly

Enforce Land Administration, issued by State Council, October 2004 Article 12: Improving land acquisition compensation practice. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the


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resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. The people’s government in provinces, the autonomous regions and municipalities should establish and promulgate the unified annual production standard or regional comprehensive land prices, and make sure that the land acquisition compensation shall be kept identical for identical quality of land in the same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget. Article 13: Properly resettling farmers whose land is acquired. People’s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers. 6.4.2 PRC Land Administration Law 62. The Land Administration Law of the PRC was passed at the 16th session of the Sixth Standing Committee Meeting of the National People’s Congress on June 25, 1986. It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People’s Congress on August 29, 1998. The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People’s Congress. Article 47: Land acquired shall be compensated for on the basis of its original purpose of use. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and standing crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the


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highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land. Standards for compensation of attachments and standing crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. If land ccompensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition. 6.4.3 Land Administration Regulations of Heilongjiang Province

63. “Implementation Measures for Integrated Land Price for Land Acquisition in Heilongjiang Province” [Heizhengfa (2011) No. 51] which is effective on 18th July, 2011 Article 3: The compensation standard is based on the class of the areas. The Integrated land price is the compensation standard. The integrated land price doesn’t include the compensation for standing crops. Article 5: The integrated land price will be adjusted by the local government each 2-3 years and issued by the provincial government. Article 7: 70% of the integrated land price will be paid to the farmers and 30% will be reserved by the village. 6.5 Gaps between ADB and Chinese Policies 64. In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays.


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Table 6-1: Gaps between ADB and Chinese Policies

Differences Comparison Solutions

Land compensation

There are rules and regulations in PRC related to the relocation compensation. The rate of compensation is set by the local government. But compared to the equivalent policies of ADB, the transparent and consistent resettlement measures should be adopted to ensure the APs’ living standards could be kept as the previous level or improved.

Measures should be taken to guarantee that the APs can accept the rate of compensation through negotiation, and the compensation should be fair and enough .The IA and RO should guarantee that all of the people understand the policies, regulations and standards of the resettlement. Improved grievance redress and appeal procedure should be established for the APs, internal and external monitoring mechanism should be set up before the LA and organize monitoring activities during the implementation.

Consultation and Information Disclosure

According to the ADB’s requirements for RP and the close negotiation among the APs, local communities and related NGOs, the APs should be allowed to participate in and well informed of the negotiation and their rights and choices of resettlement. Ensure that the APs can participate in the planning, implementing, and monitoring and evaluation of the LAR activities. The Law on Land Management of PRC put forward the related requirements to provide consultancy services, but without detailed and concrete items. Usually there is no disclosure of consultancy and information before the LAR is approved in the practical operation because no official information about the LAR is completely confirmed during the preparation for the RP, besides, the land owners are not willing to inform the APs.

In order to meet the requirements of public consultancy and transparent services, the project does and will follow the procedures of ADB. In order to avoid the situation in which the IA and the local government are not willing to let the APs informed during the preparation of the RP, the DMS should be carried out and the government should make sure the deadline as early as possible. After the deadline is promulgated, the illegal land and temporary construction will not be compensated beyond the deadline. Photos and videos should be taken on the spot so as to prevent people from entering. And an efficient channel of communication should be made available for the APs.


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6.6 Compensation Criteria and Principles 6.6.1 Entitlement 65. If the APs are those whose (i) land is acquired or (ii) land of parks and protected areas established according to the laws is limited to be used or entered, so that they are forced to move (resettle, lose their inhabitance or living places) and/or are economically forced to transformation (loss of land, property and sources of income or living means). All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Mudanjiang Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated. 6.6.2 Compensation Principles 66. The principles of compensation set for the project should be improved or at least recovered to the previous living level. The compensation procedures should be developed on the basis of transparency, consistence and fairness to ensure an unchanged living level or a higher income for the APs. The detailed principles are as follows:

(i) “Cash” compensation for the land-loss families. (ii) Livelihood rehabilitation arrangement and social safeguard plan are as

follows: a) provision of social insurance to the land loss farmers, including pension, medical care and minimum living guarantee, with 30% contribution from the local government and 70% contribution from farmers and rural collectives; b) Based on the actual situation of the APs, specific training, guidance and support will be provided to the APs to develop and operate service industry, such as grocery store, pharmaceutical store, waste recycling, transportation, food catering services, and beauty salon); and c) provision of technical training to the APs to strengthen their labor skills to be employed in other enterprises and institutions.

(iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored.

(iv) The resettlement plan should be prepared and implemented in accordance with state’s land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration.

(v) The APs should be consulted for the development of the resettlement plan and for the compensation rates.

(vi) Women’s right and interests should be completely taken into consideration of the project.


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6.6.3 Compensation Rate 67. According to the “Implementation Measures for Integrated Land Price for Land Acquisition in Heilongjiang Province” [Heizhengfa (2011) No. 51] which is effective on 18th July, 2011, the standard of compensation for the land loss is carried out on the basis of the regulations above in different regions. The land to be acquired by the Project is river bottom land developed as dryland. Integrated land price for the acquired land is CNY 125 per square meters, which is equivalent to CNY 83,333 per mu. The compensation for standing cops is CNY 1,172 per mu. After discussion and negotiation between the Mudanjiang Water Affairs Bureau and the APs, the APs have accepted the compensation standards. The compensation rate has been confirmed and approved by the centralized land acquisition working station of Mudanjiang Land Resources Bureau. As the APs are not willing to engage in the agricultural production any more, they are happy to have cash compensation for the development of the tertiary industry. Standards of the compensation for the permanent land loss are as follows (Table 6-2). 70% of the integrated land price will be paid to the affected households and 30% will be paid to the affected villages. So for the AHs, they can get 58,333 CNY per mu, which is nearly 40 times of AAOV.

Table 6-2: Compensation Standards for the Permanent Land Loss

Serial No. Item

Compensation Standard

CNY/mu

1 Integrated land price 83,333

Village(30%) 25,000

AHs(70%) 58,333

2 Standing Crops 1,172

7. Entitlement Matrix 68. From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. The cut-off date of compensation is the completion of DMS.


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Table 7-1: Entitlement Matrix on Project Compensation

Type of Loss Impact Degree Compensation to the

APs Compensation Policy and Standard

Responsible Agencies

Permanent land acquisition (40 APs in 15 rural households)

Collective-Owned Land: 9.24 ha (138.6 mu) dryland owned by the collective will be acquired permanently for the Project.

“Cash” will be provided to all APs affected by permanent land acquisition of dryland. The compensation rate is 83,333 yuan/mu, and 70% will be paid to the individuals and 30% will be paid to the affected village. AH will get CNY 58,333 per mu and the village will get 25,000 per mu.

The following livelihood rehabilitation measures will be provided to the farmers who lost their land: 1) provide various employment opportunities to the APs during the construction an operation period, 2) develop the tertiary industry, 3) provide technical trainings to APs; and 4) provide social security to APs. In the project affected area, there is no vulnerable group identified. However, if there is vulnerable group to be identified during the DMS or project implementation period, the following income rehabilitation measures will be provided: 1) CNY200 of the minimum living guarantee will be provided, 2) provide the training at free of charge to improve their knowledge and technical skills, 3) provide social security, 4) provide employment and recruitment information to the APs, and 5) provide the small credit loan through the rural credit cooperatives and local banks to the APs. IA and local government will help APs access to the small credit loan from the local bank.

PMO, Yangming District Government, Mudanjiang Government, LRB, MWAB, VCs


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8. Resettlement and Rehabilitation Plan 8.1 Goals and Principles of RP 69. The general goal of RP is to offer a new opportunity of livelihood for the APs, to settle down the labor force properly, to improve their life and productive conditions which at least equivalent to the previous standard. The followings are the principles of RP and rehabilitation:

(i) “Cash” compensation for the land-loss families. (ii) Livelihood rehabilitation arrangement and social safeguard plan are as follows:

a) provision of social insurance to the land loss farmers, including pension, medical care and minimum living guarantee, with 30% contribution from the local government and 70% contribution from farmers and rural collectives; b) Based on the actual situation of the APs, specific training, guidance and support will be provided to the APs to develop and operate service industry, such as grocery store, pharmaceutical store, waste recycling, transportation, food catering services, and beauty salon); and c) provision of technical training to the APs to strengthen their labor skills to be employed in other enterprises and institutions.





8.2 Resettlement Plan

70. Yangming Industry Demonstration Base is the first provincial development zone constructed under the leadership of the city. Over the past ten years, large areas of lands were acquired due to the development and construction of the industrial trading park for Russia. Yumin, a village of Yangming District in Mudanjiang has become a village within the City. Many young people were registered as urban residents and take jobs in enterprises. With the acceleration of urbanization, the available collective-owned land in this village is on the transformation towards industrialization. According to the survey and consultation, all the 15 HHs will choose cash compensation. 71. The LA takes up 81.1% of the APs’ farmland and 70.8% of the affected households’ income (CNY16,077.6).Table 8-1 presents an analysis of income loss due to permanent LA for AHs.

Table 8-1: Analysis of Income Loss for AHs due to Permanent LA

Villages Total Land Area of AHs before

LA (mu)

Ratio of Land Loss of

AHs (%)

Income per HH of AHs

(CNY)

Annul Income Loss per HH of

AHs (CNY)

Ratio of Income

Loss (%)

Yumin Village

171 81.1% 22,720 16,077.6 70.8%


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72. Averagely, each HH will loose 9.24 mu land and will get 492,796 yuan. If they deposit this money in the bank, the annual interest is CNY 17,247, which is higher than the loss of 16,077 from the land. So this means even without any income restoration measures, the compensation is enough for AP’s lives. 73. The following income recovery measures will be used to improve the earning standard of APs: i) provide employment trainings, especially for the jobs which need numerous labors nearby; ii) according to the discussion and consultation, AHs prefer to operate small business with the compensation, so training will be provided to the APs based on their actual situation, in particular with focus on the capacity of small enterprises establishment to support the APs to develop service industry and tertiary industry (grocery, transportation, pharmaceutical stores, salvage collection, beauty salon and hair dressing, and food service); iii) providing of endowment insurance; iv) providing of employment opportunities during the project construction and operation periods, such as urban sanitation workers, household servants, and securities, etc. 8.2.1 Operating small business 74. The affected villagers prefer to operate new business in Mudanjiang City or Yangming Industry Demonstration Base. The affected village is located within the Yangming Industry Demonstration Base. During the recent years, it is developed rapidly. With the constant population inflow and urbanization, the demands for above mentioned service industries are increasing. Yangming District Government will provide any necessary assistance to them, including applying business license and tax registration certificate.

75. According to the result of survey and the consultation with the APs, the following small business will be operated, which include operating grocery stores (5 HHs/8 people), food service (1 HH/3 people), transportation (3HHs/5 people), beauty salon and hair dressing (2 HHs/5 people), pharmaceutical stores (1 HH/2 people) and salvage collection (3 HHs/8 people). AFs will get land compensation of CNY273,300 /household at average. The APs will use the compensation to establish a new business in 2 to 6 months. After opening business, the APs will get stable income from the new business in 2 months. They will utilize CNY10,000 to CNY30,000 of compensation to invest their new business and the rest will be used for improving their living condition by depositing in the bank for monthly interests earnings, and purchasing social insurance and children educational circulating fund..

76. The investment and return of each option is listed in Table 8-2. It indicates that the labors will benefit from the income recovery programs and their earning will be increased. The return is higher than the loss from the land. 77. The initial investment for opening grocery store is CNY30,000 which includes: CNY13,000 for purchase of goods, CNY5,000 for decoration, CNY12,000 for the annual rental cost. It is predicted that the quantity of customers is 18 people/day at least, the average lowest consumption is CNY15/day. As a result, the total annual gross income is CNY48,600. With deduction of the total annual expenditure of water and electricity bills at CNY6,000 (CNY500/month). All kinds of business taxes and other associated costs are CNY3,250 and the cost is CNY8,775. The estimation of the annual net income is CNY30,575 (CNY2,548/month). All the APs will choose the livelihood recovery measures at their preference and the compensation payment will be more than sufficient for them to invest in the livelihood recovery scheme.

78. For the “food catering service” (regular fast-food restaurants) employment, the initial investment is CNY40,000, of which half of them is used as rental cost, the decoration is CNY10,000, the equipment purchase is CNY6,000 and the circulating fund is CNY4,000. It is predicted that the quantity of customers is 80/day at least and the average consumption is CNY7/person per day. As a result, the total annual gross income is CNY102,000. With


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deduction of the investment cost at CNY40,000 and the water and electricity bill is CNY9,600 (800/month). All kinds of business taxes and other associated costs are CNY10,000 and the cost is CNY840.The annual net income is CNY42,400 (CNY3,533/month). All the APs will choose livelihood recovery measure at their preference and the compensation payment is more than sufficient for them to invest in the scheme.

79. For choosing the transportation employment, the initial investment is CNY 140,000, of which CNY 120,000 is used for buying vehicles, CNY12,000 for the business charge, CNY6,000 for the training fees. It is predicted that the annual gross income is CNY 96,000. The total consumption cost is CNY21,000 which consists of management expense at CNY 8,000, fuel oil expense at CNY 12,000, and the vehicles amortization cost at CNY24,000. The annual net income is CNY52,000 (CNY4,333/month). All the APs will choose livelihood recovery measure at their preference and the compensation is more than sufficient for them to invest in the scheme.

80. For choosing the “beauty salon and hair dressing” employment option, the initial investment is CNY30,000, of which CNY10,000 is used for space renting, CNY12,000 for the equipment purchase, CNY10,000 for the decoration and CNY4,000 for the circulating fund. It is predicted that the quantity of customers is 15/day at least, and the average consumption is CNY15/person per day. The annual gross income is CNY82,125. With deduction of the investment cost at CNY30,000 and the water and electricity bill at CNY7,200 (600/month), and all kinds of business taxes and other fees at CNY8000 (660/month), the annual net income is CNY36,925 (CNY3,000/month). All the APs will choose livelihood recovery measure at their preference and the compensation payment is more than sufficient for them to invest in the scheme.

81. For choosing the “pharmaceutical stores” employment, the initial investment is CNY50,000, of which CNY18,000 is used for space renting, CNY6,000 for the decoration, CNY6,000 for the training fees, and CNY24,000 for circulating fund. It is predicted that the quantity of consumers is 15/day at least and the average consumption is CNY30/person per day. The annual gross income is CNY81,000. With deduction of the investment cost at CNY16,200 and the water and electricity bills at CNY6,000 (500/month), all kinds of business taxes and other associated fees at CNY8,000 (660/month), the annual net income is CNY50,800 (CNY4,233/month). All the APs will choose livelihood recovery measure at their preference and the compensation is more than sufficient to invest in the scheme.

82. For choosing the “salvage collection” employment, the initial investment is CNY5,000, of which CNY3,000 is used for space renting and CNY2,000 for circulating fund. It is predicted that the annual gross income is CNY48,000. With deduction of various cost at CNY14,400, the annual net income is CNY33,600 (CNY2,800/month). All the APs will choose livelihood recovery measure at their preference and the compensation is more than sufficient for them to invest in the scheme.

83. For above the different livelihood recovery measures, the APs could use the compensation of resettlement subsidy and standing crops as initial funds. The compensation of AFs is more than sufficient for them to invest in new business. Thus, it is predicted that the living environment and quality of life will be improved than before.

84. For recovering the livelihood and income of the APs, Mudanjiang City Government will sign agreements with related departments, enterprises, labor and social security bureau and YDG to ensure the employment of the APs or to help APs to engage in tertiary industry. See Table 8-2.


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Table 8-2: APs’ Engagement in Tertiary Industry

Types of Tertiary Industry

Affected HHs to Be Engaged in This Industry (No. of

People)

Initial Investment (CNY)

Expected Net Income (CNY/year)

Grocery 5 (8) 30,000 30,575

Food Catering Service 1 (3 ) 40,000 42,400

Transportation 3 (5 ) 140,000 52,000

Beauty Salon and Hair Dressing 2 (5 ) 30,000 36,925

Pharmaceutical Stores 1 (2 ) 50,000 50,800

Salvage Collection 3 (8) 5,000 33,600

Total in Average 49,167 41,050

8.2.2 Social Pension Insurance

85. In addition to the above proposed income rehabilitation measures, Yangming District Government will provide pension security system for the AP. For the social insurance, 30% contribution will come from the local government and 70% from rural collective and farmers (with 70% contribution from farmers and 30% from rural collectives). The contribution of local government comes from income generated from the state-owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month over the age of 60. Based on the survey, the majority of the APs are willing to participate in social insurance program. The APs will receive CNY 260 per month per person and this will be adjusted according to the local living cost, and one-time payment to the social insurance program at CNY 50,148 per person. The compensation can cover this cost. 86. Elder farmers think they can benefit a lot from the pension insurance. Before land acquisition, they need to farm on the land. After land acquisition, they can get the pension, also they can take of the small shops operated by their children established by the compensation. 87. The Ahs have the right to choose if they participate in the pension insurance system. After discussion, all Ahs prefer to join it. And 12 HHs will be transferred to urban household registration and they can receive all the social benefits as urban residents, including residents’ basic medical care insurance, unemployment insurance. 8.2.3 Income Opportunities Related to the Project 88. During the period of the project construction, APs can look for some income generation opportunities which are mainly for providing service relating to the project construction. For example, if the APs own additional structures, they can provide them to the construction contractors as offices or living space for construction workers; Opening grocery pavilions to provide food, cigarettes, beer, beverage, etc. to the construction team. During the period of the Project construction, PMO and the Implementation Agency will provide 52 temporary jobs per year, such as excavation of water pipe pavement, and transportation of construction materials and sand, etc. Among the 31 labor force, these persons between 50-60 age as retired/elder farmers will have the priorities.

89. During the period of project operation, the APs who are qualified will be hired and receive on-the-job training. Mudanjiang Water Affairs Bureau will provide at least one job opportunity to each affected family. Women will be given priority to be employed by the Project. After the construction of the project, according to the discussion with the implementing agency, it is planned that 3 greening and maintenance jobs will be provided to the APs, 20 WWTP operation and maintenance, 10 security guard and 2 logistic cleaners,


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totaling about 35 public welfare positions. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,000 per month. Therefore, the APs will get access to additional income generation opportunities and additional income. 8.2.4 Skill Training on APs 90. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, Mudanjiang Water Affairs Bureau will cooperate with the departments of Mudanjiang Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the APs. The training of technical and management skills will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted. 91. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, Mudanjiang Water Affairs Bureau will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of about CNY 220 per person has been budgeted as training cost to cover the cost of training provided to the APs. Each AP will get one-time training for the field they choose. The female APs will enjoy the same training budget with the male APs at the training budget. 92. The training will be carried out twice a year, commenced from June 2012 and last till August 2013. The training will be implemented in association with the PMO, Yangming District Government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(i) Grocery store operation and management; (ii) Beauty and hairdressing; (iii) Operate, maintenance and repair of motorcycles and vehicles; (iv) Car decoration and management of cleaning and washing accessories; (v) Pharmaceutical store operation and management; (vi) Salvage collection and recycling; (vii) Food, catering and hotel services, and domestic servant services; (viii) Public security guard, cleaning, public aesthetic landscaping, maintenance of

public facilities, management of parking lot, and others; and, (ix) Sales of products, small business registration and operation; etc.

8.3 Special Attention during Resettlement Process 8.3.1 Gender Issues 93. The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women’s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project. 94. Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The compensation payment should belong to both wife and husband of a household. In order to protect the properties of the APs, both the


33

names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the relevant departments of Mudanjiang City Government will carry out explanation and propaganda work to the affected women and closely involve them in the resettlement process. 95. The Mudanjiang City Government, Mudanjiang Water Affairs Bureau, WF, and VC have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after land acquisition. 8.3.2 Assistance to the Vulnerable Families 96. No vulnerable groups have been identified during the measurement and socioeconomic surveys during the Project planning phase. If there is vulnerable group to be identified during the Project implementation phase, including the households living under five guarantees, households living under minimum living guarantee, disable families, and female-headed families, the local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for including these households into the social safeguard program. The local Civil Affair Bureau will provide CNY 200/month·per person to these vulnerable households. If the poor people could find jobs in the project affected area or they could find employment generated by the Project, CNY 670 per month salary (minimum salary standard) will be ensured. The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them by the local credit unions or local banks. Mudanjiang Water Affairs Bureau and the local government will assist the APs to get access to micro-credit from local banks. 97. During the resettlement stage, Mudanjiang Water Affairs Bureau and local government will provide in-kind assistance for the vulnerable groups in the following aspect:

(i) For the elderly or disabled, priority should be provided to them for the settlement of land acquisition;

(ii) Provide labor and transportation assistance to the vulnerable groups without charge.


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9. Cost Estimate

9.1 Compensation and Resettlement Estimate 98. Resettlement cost is included in the overall project budget. The total cost of the RP is expected to CNY22.549 million, equivalent to $3.538 million at the price of 2012. It includes 15% contingencies (physical and price contingencies). Detailed resettlement cost estimate is listed in Table 9-1 is the summary of resettlement cost.

Table 9-1: Detailed Resettlement Cost Estimate

No. Item Unit Quantity Unit Price (CNY)

Cost Estimate(CNY)

1 Permanent Land Acquisition (Collective Land) 11,555,125.00

1.1 Dryland mu 92441 125.00 11,555,125.00

To village 3,466,538

To AHs 8,088,587

2 Other Costs 9,260,748.47

2.1 Resettlement Plan Preparation 100,000 100,000.00

2.2 Management Cost 2.1% of LA compensation 242,657.63

2.3 Monitoring and Evaluation Cost 1.5% of LA compensation 173,326.88

2.4 Implementation Management Cost

3% of LA compensation 346,653.75

2.5 Training cost 8,800 8,800.00

2.6 compensation for standing crops m2 92,441 1.76 162,380.00

2.7 Land Reclamation Cost m2 92,441 3.00 277,323.00

2.8 fees charging newly land used for building

1

m2 92,441 48.00 4,437,168.00

2.9 Security Fee of Flood Control m2 92,441 1.00 92,441.00

2.10 Land registration, survey and others

3,419,998.21

3 Contingencies 1,733,268.75

4.1 Physical Contingency Cost 1,155,512.50

4.2 Price Contingency 577,756.25

Total 22,549,142

9.2 Annual Budget 99. According to the project schedule, the project construction date will be from July, 2012 to December, 2014, and the monitoring will continue until December 2014. The annual cash flow is expected to reach 77% of total or CNY15.7844 million in 2012, 10% of total or CNY2.2549 million in 2013, and 13% or CNY2.9314 million in 2014. Table 9-3 is the annual budget of the resettlement cost.

1 The implememting agency needs to pay this fee upfront to the municipal finance bureau to comply with

the domestic procedures. Then 30 % goes to the central government and 70% of the fee goes to the provincial financial bureau. As this is public municipal infrastructure project, the provincial finance bureau then sends it back to the municipal finance bureau who then transfers the amount back to the IA.


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Table 9-2: Annual Budget of Resettlement Cost

Item 2012 2013 2014 Total

Total Budget (CNY 10,000)) 1,578.44 225.49 293.14 2,254.91

Total Budget Ratio (%) 77% 10% 14% 100%

9.3 Flow of Funds

Table 9-3: Flow of Funds

Permanent Collective-owned Land Acquisition

→ MWAB → PMO VCs → APs

Survey and Design Cost

→ MWAB

→ DI

Management Cost → MWAB → IA of LAR

Training Cost → MWAB → Training Institution

Monitoring and Evaluation Cost

→ MWAB

→ IMA


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10. LAR Implementation Schedule 10.1 Principles 100. The resettlement schedule for land acquisition and resettlement for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of LAR and civil works construction tasks. 101. In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected village, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition will be established before LAR proceeds. The compensation payment should be sufficient. 10.2 LAR Implementation Schedule 102. The Project construction will start in July 2012. The resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between May 2012 and July 2012, and monitoring will last to December 2014. It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. “In place” means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction. 103. The LAR schedule has been divided into four stages: 1) Land Acquisition and Compensation Planning

(i) Apply for and receive “Planning Land Use Certificate”, and “Construction Land Use Certificate”;

(ii) Conduct detailed measurement surveys of the affected area to determine the specific losses eligible for payment of compensation;

(iii) Identify poor and vulnerable APs; (iv) Finalize compensation/resettlement strategies in consultation with the local

governments, APs and their representatives; (v) Conduct public information/consultations on RP; and, (vi) Sign contract.

2) Land Acquisition and Resettlement Activities

Provide compensation payment.


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3) Income Restoration

(i) Provision of employment opportunities during the Project construction and operation phases;

(ii) Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses;

(iii) Targeted training; (iv) Promotion and development of tertiary industry; and, (v) Special attention paid to the vulnerable groups.

4) Monitoring

- Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups;

and, - Conduct external evaluation of the Project.

104. The resettlement supervision milestone is presented in Table 10-1. Based on the project schedule of civil works, the land acquisition and resettlement are planned to commence in May of 2012 and complete in July 2012. The RP planning and implementation schedule with time bound activities is shown in Table 10-1.

Table 10-1: Resettlement Supervision Milestone

No. Resettlement Tasks Target Responsible

Agencies Deadline Status

1 Public Information

1.1 Resettlement Information Booklet

15 HHs IA (MWAB), PMO, HIECC

January, 2012 Completed

1.2 Resettlement Plan Approval

1 district and 1 village

Mudanjiang City Government, YDG, PMO

May, 2012 Completed

1.3 Revised RIB and RP disclosed to APs

15 HHs IA (MWAB), PMO, HIECC

May, 2012 Completed

1.4 RP posted on ADB Website

YDG,PMO, MWAB, ADB

June, 2012 Planned

2. RP and Budget Approval

Mudanjiang City Government, YDG, PMO

May, 2012 Completed

3. Agreement

3.1 Compensation 1 district and 1 village

Mudanjiang City Government, YDG, LRB, PMO, VCs, PMO, MWAB

June, 2012 Planned

3.2 HHs 40 APs of 15 HHs

PMO,YDG, VC June, 2012 Planned

3.3 Land provided for civil works

July,2012 Planned

4. Detailed plan

4.1 Village Rehabilitation Plan

1 village PMO, MWAB, DI May- December, 2012

on going

4.2 APs Training Plan To all APs PMO, MWAB, training institution

June, 2012 - December, 2013

Planned


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No. Resettlement Tasks Target Responsible

Agencies Deadline Status

5. Establishment of Implementation Capacity

PMO, Mudanjiang Water Affairs Bureau, LRB and others

August 2011 to - December, 2012

In process

6. Monitoring and Evaluation

7.1 Baseline Survey 15 HHs or 40 people

PMO, MWAB, DI March, 2012 Completed

7.2 Internal Monitoring Report

Quarterly PMO, MWAB May, 2012 to December, 2014

Planned

7.3 External Monitoring Report

Semi-Annual IMA December 2014

Planned

7.4 Resettlement Completion Report

1 report IMA December, 2014

Planned

8. Consultation Documentation PMO, MWAB, VC Ongoing

9. Appeal Documentation PMO, MWAB, VC Ongoing

10. Flow of Funds / Compensation

10.1 To IA MMG May 2012

10.2 To Affected Village Committee

PMO, MWAB May, 2012

10.3 To Affected HHs PMO, MWAB May, 2012

11. Institutional Framework 11.1 Project Resettlement Organizational Set-up 105. To ensure that the LA work is able to be implemented smoothly, MWAB and its local land resource bureau will appoint personnel to take in charge of the LAR implementation. The personnel who work for LAR will cooperate with the local village committee and the local land resources bureau closely and they will also be responsible to supervise and monitor the rules or regulations on LA and the RP. Table 11-1 is the organizational structure. 106. The Mudanjiang Water Affairs Bureau plays an important role during the RP implementation, the other related departments will also participate in this project. Table 11-1 and 11-2 list all the related agencies and staffing.

Table 11-1: The Agencies and Personnel Related to the Resettlement

Agency Staffing (No.)

Staffing Structure Male Female

Project Management Office 2 1

Civil Servant / The Deputy Director and the Department Supervisor of Yangming Development and Reform Commission with the experience, University education level or above.

Zhang Kunpeng Deputy Chief, Economic and Construction Section, Mudanjiang City Finance Bureau

Meng Fanping Deputy Researcher, Economic and Construction Section, Mudanjiang City Finance Bureau

Xu Liyan Chief, Environment and Resources Section, Mudanjiang City Finance Bureau

Mudanjiang Water Affairs Bureau

2 2 Technician with the experience, University education level or above.

Cui Zongping Director

Lin Hai Deputy Director

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Agency Staffing (No.)

Staffing Structure Male Female

Guo Changrui Chief, Water Supply and Wastewater Section

Li Weike Deputy Chief, Water Supply and Wastewater Section

Land Resources Bureau 2 Civil servant with the experience, University education level or above.

Hu Laichuan Deputy Director

Zhang Yifeng Deputy Chief, Farmland Protection Section

Affected Village Committee 2 1 Cadre and resettlement representative

Legal Advisor Office 1 Lawyer

Design Institute 2 1 intermediate engineer/senior economist

Yang Bo Chairman, Mudanjiang City Civil Works Engineering Design and Research Institute

Yu Bingyi Director, Mudanjiang City Civil Works Engineering Design and Research Institute

Fan Jun Senior Engineer

External Monitoring Agency 1 1 Resettlement expert

Total 12 6


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Table 11-2: The LA Resettlement Organization Structure

PMO

LRB

YDG

MWAB (IA) Legal

Advisor Office

DI

External Monitoring

Agency

Yumin Village

Committee

APs


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11.2 Responsibility

Table 11-3: Responsibility Agencies

Agency Responsibility

Project Management Office

Lead, organize, coordinate and formulate policies for the project;

Review the implementation of the RP;

Execute project coordination, and organize the project activities;

organize and coordinate the RP preparation;

Provide assistance to women and other vulnerable groups;

Coordinate with the ADB, PMO, MWAB and the other participating departments;

Conduct internal supervision and inspection;

Make decision for major problems during land acquisition and resettlement process.

Mudanjiang Water Affairs Bureau (IA)

Apply for Land Use Planning Certificate and Land Use Construction Certificate to the Land Resources Bureau;

Organize Socioeconomic Surveys;

Coordinate the local Government and the APs to sign the Land Acquisition and Resettlement Agreement;

Pay for the resettlement compensation and monitor the use of compensation fund;

Measurement survey of the land acquisition;

Conduct, coordinate and monitor the implementation of the RP milestone;

Manage the information about the LAR;

Organize and internally supervision; decide the external IMA and coordinate the external monitoring work;

Report to ADB regarding the LAR, use of compensation fund, and the regular execution;

Provide assistance to women and other vulnerable groups;

Coordinate and solve the problems during the project implementation;

Resolve the legal affairs during the LAR process;

Report the LAR implementation to the PMO.

Land Resources Bureau

Implement the relevant policies of the LA;

Participate in checking of the compensation standards for land acquisition and ground attachments;

Process and approve the LA;

Participate in the measurement and socioeconomic surveys;

Participate in the preparations of the RP;

Issue Land Use Planning Certificate and Land Use Construction Certificate;

Issue Public Notice of LA;

Guide, coordinate and supervise the implementation activities of the LAR;

Coordinate the handling of conflicts and the problems during the RP implementation.

Legal Advisor Office Provide legal consultancy during project implementation;

Provide legal assistance in case there is dispute during the process of LAR.

Yangming District Government

Assist the measurement and socioeconomic surveys;

Assist the preparations of the RP;

Supervise the village collective to implement resettlement plan and rehabilitation plan.

Village committee Participate in the measurement and socioeconomic survey and formulation of the resettlement and rehabilitation plan;

Participate in the preparation of the RP;

Organize public consultation, and publicize policies of LAR;

Consult the compensation payment and disbursement;

Organize the production and income restoration activities;

Organize the development of the tertiary industry;

Report the comments and suggestions of the APs to the organizations at upper level;


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Agency Responsibility

Provide assistance to women and vulnerable groups.

Design Institute Minimize the project impacts through optimizing engineering design;

Identify the scope of LAR impacts;

Conduct measurement and socioeconomic surveys;

Assist to prepare the RP;

Provide technical consulting of data collection and processing to the PMO and the implementation agency.

Independent Monitoring Agency

Provide technical consulting of LAWR;

Act as an independent monitoring agency, provide periodic monitoring for the implementation of the RP, and provide independent evaluation report to the PMO, IA and ADB.


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12. Monitoring, Evaluation and Reporting 107. The PMO and Mudanjiang Water Affairs Bureau will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by Mudanjiang Water Affairs Bureau and will be overseen by the PMO and Mudanjiang City Government to ensure that organizations involved in implementation of land acquisition and resettlement work comply with the principles and schedules of the Resettlement Plan (RP). 108. The aim of the internal supervision is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition and resettlement.

109. The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement. 110. Resettlement monitoring will focus on following two aspects:

(i) Progress of disbursement and provision of entitlements to APs. (ii) Comparison of APs and VC pre and post resettlement socioeconomic situation,

particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal supervision 111. Internal monitoring will be undertaken by the PMO, Land Resources Bureau, and Mudanjiang Water Affairs Bureau, to assure the concerned departments to comply with the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process. 112. The executive agency, the Mudanjiang City Government will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, budget, etc.

(i) Disbursement of entitlements to AP: compensation, employment, and necessary assistance as specified in the RP.

(ii) Social adaptability and cohesion: impacts with a gender perspective on APs

and vulnerable groups, public participation, non-government’s role, AP’s attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status.

(iii) Timing of land acquisition, livelihood and income restoration: disbursement of

compensation, moving, and updating of resettlement schedule and resettlement budget where required.

(iv) Public participation and consultation: Involvement of AP in resettlement

implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.


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(v) Assistance to vulnerable groups. 113. It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required. 12.1 External Monitoring and Evaluation 114. Required by ADB, the PMO will appoint an independent monitoring agency (IMA) to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Appendix 2.

12.2.1 Objectives and Requirements of M&E

Objectives 115. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

(i) Economic situation prior to and after displacement of land; (ii) Timely disbursement of funds; (iii) Environmental conditions; (iv) Social adaptability after resettlement; (v) Rehabilitation of the vulnerable groups if identified during implementation

process; (vi) Measures taken to restore affected production and livelihoods of the APs and

enterprises; and, (vii) Living conditions and economic status of APs following resettlement in

comparison to the non-affected household in the Project area. 116. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition, and the regular monitoring during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with MWAB, local officials, village leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups. Monitoring Indicators 117. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

(i) Disbursement of entitlements to affected households: compensation, employment, and necessary assistances as specified in the RP.

(ii) Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.

(iii) Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress


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will be reviewed and the speed and results of grievance redressal measures will be monitored.

(iv) Standard of living: Throughout the whole implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.

(v) Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

Special Considerations 118. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

(i) The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the PMO and MWAB in respect of women’s issues.

(ii) Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.

(iii) Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

119. The methodology of external monitoring and evaluation are listed as follows:

(i) Independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

(ii) Conduct group discussion and consultation with various groups of people from

government, non-government, village and affected people. (iii) Interview with key persons such as village leaders regarding resettlement

implementation. (iv) Village public meetings to collect various information on resettlement. (v) Make direct observation regarding progress of land acquisition and

resettlement and visit the individuals or groups. (vi) Informal investigation or interview by non-sampling means such as with the


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affected people and staff engaged with resettlement.

12.2.3 Major Tasks

120. The IMA will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, MWAB and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities. 121. External monitoring and evaluation will cover the quality assessment on following the aspects:

(i) Adequacy of compensation and timelines of payment; (ii) Situation of production and living environment pre and post resettlement; bear

in mind with a gender perspective; (iii) Livelihood restoration of APs; (iv) Operation and efficiency of the resettlement institutions.

12.2.4 Reporting Requirements

122. Internal monitoring reports will be submitted quarterly by project IA (MWAB) to the PMO and PMO will submit it in the progress report to Mudanjiang City Government and ADB. The external M&E reports will be submitted directly to PMO and ADB simultaneously every six months by the IMA. The external evaluation reports will be continued once every six months until the completion of the resettlement, and then the annual evaluation reports will also be prepared by the external monitor as following schedule: June 2012, December 2012, December 2013, and December 2014. Finally, after project completion, the PMO and Mudanjiang Water Affairs Bureau will prepare a resettlement completion report and submit to ADB.


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APPENDIX 1: Resettlement Information Booklet 1 Introduction 1. This project includes: a wastewater treatment plant with a capacity of 100,000 tons per day, its water quality reaching the Primary Standard of the Pollutant Discharge Standard for Municipal Wastewater Treatment Plants (GB18918-2002), and its treatment using carbon-added Modified A~2/O Process for Biological Phosphorus Removal and sludge dewatering machine approach; retention diverging drainage pipelines (D600—D1800 mm) along the roads and 100 m of reinforced concrete channel (2.8 m×2.0 m) totaling 40.345 km, and 679 inspection wells; 3 lifting pump stations. Once the project is completed, the intercepting drainage pipeline network will be enhanced significantly, with sewage treatment rate as high as 80%, reducing 15,330 tons of COD each year. The project covers an area of 9.24 ha or 138.6 mu. The owner of this project is the MWAB. 2 Impacts of the LAR 2. The project needs to acquire 9.24 ha (138.6 mu) of land, all of which is farmland (dryland). Given the LA is permanent, a total of 40 villages from 15 households will be affected. There is no temporary land occupation, structure demolition, and infrastructures and special facilities to be affected. No ethnic minorities and vulnerable group will be affected. Table 1 is summary of LAR impacts, and Table 2 the summary of affected households and populations.

Table 1: Summary of LAR Impacts

Administrative Jurisdiction Permanent LA AHs and APs

City Town/County Village Total Area

Collective-Owned Farmland (Dryland)

AHs (No.)

APs (No.)

Ha mu Ha mu

Mudanjiang Yangming District

Yumin Village

9.24 138.6 9.24 138.6 15 40

Total 9.24 138.6 9.24 138.6

15 40

Table 2: Summary of the AHs and APs (Unit: Number) Administrative Jurisdiction AHs and APs

City District Village AHs APs

Mudanjiang Yangming District Yumin Village 15 40

Total 15 40 Note: A total of 0.75 mu land will be used for the construction of the three pumping stations which is owned by the MWAB and will be included in the impact assessment.

3. All pipeline engineering works will be constructed along the roads, and will not involve temporary land occupation. The construction will be carried out by sections, therefore the road will be affected only for one month to three months at maximum and no residents will be affected. It will only cause some inconveniences to local residents, shops and traffics. The cost is included in the engineering cost.


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3 Appeal Procedure

4. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The basic appeal procedures include the following aspects:

Step 1: 5. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Step 2: 6. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the township government office after receiving the decision; the township government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 3: 7. If the aggrieved AP is still not satisfied with the decision of the township government office, he/she will appeal to the Project Management Office (PMO) or Land Resource Bureau (LRB) after receiving the decision. The PMO or LRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 4: 8. If the aggrieved AP is still unsatisfied with the decision of the PMO or Mudanjiang LRB, he/she will appeal to the Heilongjiang LRB after receiving the decision. The Heilongjiang LRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Step 5: 9. If the AP is still dissatisfied with the decision of the Heilongjiang LRB, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision from Heilongjiang LRB. The AP will be informed of the result via written notice. 10. The APs can take judicial proceedings on any aspect of the LAR including compensation standards and payments. If the APs want to complain, they can raise their issues to Mudanjiang City Land Resources Bureau. The person in charge is Section Chief, Mr. Jiang Dewen. The telephone number is: 0453—6277149. 11. PMO will employ IMA to be in charge of all the monitoring and evaluation in this project. In the resettlement, IMA will check and report the speed of resettlement as well as the organization of the PMO and different levels of institutional framework in the LAR. 4 Legal Frame and Policies

12. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. Land acquisition and resettlement of this Project will be implemented according to the laws and regulations of PRC, local government and ADB:


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(i) Document 28: State Council Decision to Deepen Reform and Strictly Enforce

Land Administration in October, 2004; (ii) Land Administration Law of the PRC, amended in 2004; (iii) Implementation Regulation for Land Administration Law of PRC; December

1998; (iv) Notification on Adjusting Newly Added Construction Land Use Fee Collection

issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]

(v) Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; (vi) Regulations on the Land Management of HLJ Province (2000); (vii) ADB’s Involuntary Resettlement Policy, 1995; (viii) Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; (ix) Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, (x) OM Section F2 - Operations Manual: Bank Policies (BP) and Operational

Procedures (OP), ADB, Manila, 2006. 4.1 Compensation Standards and Principles 13. The APs are those whose (i) land is acquired or (ii) land of parks and protected areas established according to the laws is limited to be used or entered, so that they are forced to move (resettle, lose their inhabitance or living places) and/or are economically forced to transformation (loss of land, property and sources of income or living means). All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Mudanjiang Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

14. The principles of compensation set for the project should be improved or at least recovered to the previous living level. The compensation procedures should be developed on the basis of transparency, consistence and fairness to ensure an unchanged living level or a higher income for the APs. The detailed principles are as follows:

(i) “Cash” compensation for the land-loss families. (ii) Livelihood rehabilitation arrangement and social safeguard plan are as follows:

a) provision of social insurance to the land loss farmers, including pension, medical care and minimum living guarantee, with 30% contribution from the local government and 70% contribution from farmers and rural collectives; b) Based on the actual situation of the APs, specific training, guidance and support will be provided to the APs to develop and operate service industry, such as grocery store, pharmaceutical store, waste recycling, transportation, food catering services, and beauty salon); and c) provision of technical training to the APs to strengthen their labor skills to be employed in other enterprises and institutions.




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4.2 Compensation Standards and Deserved Rights

15. According to the “Implementation Measures for Integrated Land Price for Land Acquisition in Heilongjiang Province” [Heizhengfa (2011) No. 51] which is effective on 18th July, 2011, the standard of compensation for the land loss is carried out on the basis of the regulations above in different regions. The land to be acquired by the Project is river bottom land developed as dryland. Integrated land price for the acquired land is CNY 125 per square meters, which is equivalent to CNY 83,333 per mu. The compensation for standing cops is CNY 1,172 per mu. After discussion and negotiation between the Mudanjiang Water Affairs Bureau and the APs, the APs have accepted the compensation standards. The compensation rate has been confirmed and approved by the centralized land acquisition working station of Mudanjiang Land Resources Bureau. As the APs are not willing to engage in the agricultural production any more, they are happy to have cash compensation for the development of the tertiary industry. Standards of the compensation for the permanent land loss are as follows (Table 3). 70% of the integrated land price will be paid to the affected households and 30% will be paid to the affected villages. So for the AHs, they can get 58,333 CNY per mu, which is nearly 40 times of AAOV.

Table 3: Compensation Standards for the Permanent Land Loss

Serial No. Item

Compensation Standard

CNY/mu

1 Integrated land price 83,333

Village(30%) 25,000

AHs(70%) 58,333

2 Standing Crops 1,172


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Table 4: Entitlement Matrix

Type of Loss Impact Degree Compensation to the

APs Compensation Policy and Standard Responsible

Agencies

Permanent land acquisition (40 APs in 15 rural households)

Collective-Owned Land: 9.24 ha (138.6 mu) dryland owned by the collective will be acquired permanently for the Project.

“Cash” will be provided to all APs affected by permanent land acquisition of dryland. The compensation rate is 83,333 yuan/mu, and 70% will be paid to the individuals and 30% will be paid to the affected village. AH will get CNY 58,333 per mu and the village will get 25,000 per mu.

The following livelihood rehabilitation measures will be provided to the farmers who lost their land: 1) provide various employment opportunities to the APs during the construction an operation period. 2) develop the tertiary industry. 3) provide technical trainings to APs; 4) provide social security to APs. In the project affected area, there is no vulnerable group identified. However, if there is vulnerable group to be identified during the DMS or project implementation period, the following income rehabilitation measures will be provided: 1) CNY200of the minimum living guarantee will be provided. 2) provide the training at free of charge to improve their knowledge and technical skills. 3) provide social security. 4) provide employment and recruitment information to the APs. 5) provide the small credit loan through the rural credit cooperatives and local banks to the APs. IA and local government will help APs access to the small credit loan from the local bank.

PMO, Yangming District Government, Mudanjiang Government, LRB, MWAB, VCs


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5 Resettlement and Rehabilitation Plan

16. The general goal of RP is to offer a new opportunity of livelihood for the APs, to settle down the labor force properly, to improve their life and productive conditions which at least equivalent to the previous standard. The basic principles of the resettlement and rehabilitation plan are as follows:

17. For the people who lost their land, “Cash” compensation will be provided to them. PMO, MWAB, resettlement office and local government will provide them with necessary assistance during the LAR process. Income recovery measures include: (1) during the project construction, PMO and MWAB will offer some temporary jobs, such as such as pipeline groove excavation, earthwork transportation, etc.. Mudanjiang City Water Authority plans to provide 52 temporary work opportunities for skilled and unskilled workers (including 14 women employed), and the APs will get CNY1,000 as salary every month. The ratio of men and women to be employed is 1:2. The salary is over CNY 1,000 per month. Priority will be given to women to be employed by the project. (2) develop service industry and tertiary industry (grocery, transportation, pharmaceutical stores, salvage collection, beauty salon and hair dressing, and food service). (3) provide the APs with social insurance, for which the government pays 30%, and rural collective and farmers pay 70%; (4) provide 10 APs with technical training to improve their competence in obtaining employment and make it easier for them to work in other institutions, enterprises and industry.

Income opportunity related with the project

18. During the period of the project construction, APs can look for some income generation opportunities which are mainly for providing service relating to the project construction. For example, if the APs own additional structures, they can provide them to the construction contractors as offices or living space for construction workers; Opening grocery pavilions to provide food, cigarettes, beer, beverage, etc. to the construction team. During the period of the Project construction, PMO and the Implementation Agency will provide 52 temporary jobs per year, such as excavation of water pipe pavement, and transportation of construction materials and sand, etc.

19. During the period of project operation, the APs who are qualified will be hired and receive on-the-job training. MWAB will provide at least one job opportunity to each affected family. Women will be given priority to be employed by the Project. After the construction of the project, according to the discussion with the implementing agency, it is planned that 3 greening and maintenance jobs will be provided to the APs, 20 WWTP operation and maintenance, 10 security guard and 2 logistic cleaners, totaling about 35 public welfare positions. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,000 per month. Therefore, the APs will get access to additional income generation opportunities and additional income. Thus, the APs will benefit from the resettlement of the project.

Skill Training for the APs

20. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, MWAB will cooperate with the departments of Mudanjiang Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the APs. The training of technical and management skills will be consistent with the district economic features, requirements of the labor market


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and the enterprises to ensure that the training is practical, efficient and targeted. 21. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, MWAB will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of about CNY 220 per person has been budgeted as training cost to cover the cost of training provided to the APs. Each AP will get one-time training for the field they choose. The female APs will enjoy the same training budget with the male APs at the training budget.

22. The training will be carried out twice a year, and will be commenced from June 2012 and last till December 2013. The training will be implemented in association with the PMO, Yangming District Government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(i) Grocery store operation and management; (ii) Beauty and hairdressing; (iii) Operate, maintenance and repair of motorcycles and vehicles; (iv) Car decoration and management of cleaning and washing

accessories; (v) Pharmaceutical store operation and management; (vi) Salvage collection and recycling; (vii) Food, catering and hotel services, and domestic servant services; (viii) Public security guard, cleaning, public aesthetic landscaping,

maintenance of public facilities, management of parking lot, and others; and,

(ix) Sales of products, small business registration and operation; etc..

6 Cost Evaluation

23. Resettlement cost is included in the overall project budget. The total cost of the RP is expected to CNY22.5491 million, equivalent to $3.538 million at the price of 2011. It includes 15% contingencies (physical and price contingencies). Cost estimate consists of collective land compensation, other expenses, land related taxes and contingencies. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between July 2012 and November 2014, and monitoring will last to December 2014. It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. “In place” means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction.


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APPENDIX 2: TOR for External Monitoring and Evaluation

1 Introduction 1. According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Project to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

2. An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues. Monitoring and evaluation will include, but not be limited to:

(i) Monitor the progress and effectiveness of RP implementation; and, (ii) Evaluate of income restoration and post-resettlement condition of the

APs and host communities. 2 Objectives and Requirements of Monitoring and Evaluation 3. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

(i) Economic situation prior to and after displacement of land; (ii) Timely disbursement of compensation funds; (iii) Environment condition; (iv) Social adaptability after resettlement; (v) Rehabilitation of the vulnerable groups; (vi) Measures taken to restore affected production and livelihood of the

APs; (vii) Living conditions and economic status of APs following resettlement in

comparison to the non-affected household in the Project area.

4. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with MWAB, local officials, village leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.


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3 Monitoring Indicators

5. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

(i) Disbursement of entitlements to affected households: compensation, employment, and necessary assistance as specified in the RP.

(ii) Development of economic productivity: job opportunities available to

APs, number of APs employed or unemployed. (iii) Level of AP’s satisfaction: level of APs’ satisfaction with various

aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored.

(iv) Standard of living: Throughout the implementation process, the trends

in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.

(v) Social adaptability and cohesion: impacts on children, the elderly and

other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

4 Special Considerations 6. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

(i) The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluation agency will also provide recommendations and assistance to the EA in respect of women’s issues.

(ii) Care and attention to vulnerable groups if identified during implementation process: closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.

(iii) Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.


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5 Contents and Distribution of Independent Monitoring Reports 7. A monitoring report will include, among other things:

(i) conclusion of investigation and evaluation; (ii) major existing and potential problems; (iii) recommended mitigation or prevention measures which will be

incorporated into a revised plan if necessary; and, (iv) assessment of previous follow-up actions.

8. Independent monitoring agencies will submit a copying-press of report to the ADB. PMO will also submit a resettlement completion report to the ADB and then submit to ADB the impact evaluation report after resettlement from the monitoring agencies. The report should provide more proof to confirm that many bad influences has been ceased; affected household's income has been restored to the same level with the residents being not affected at least. 6 Monitoring Plan 9. The Monitor will provide the ADB, PMO, MWAB, RO, and relevant departments with monitoring reports every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides resettlement monitoring and evaluation schedule schedule.

Table 1: Resettlement Monitoring and Evaluation Schedule

No. Monitoring and Evaluation Report Date

1 Baseline Survey of Socioeconomic Information March 31, 2012

2 First Monitoring Report June 30, 2012

3 Second Monitoring Report December 31, 2012

4 Third Monitoring Report December 31, 2013

5 Resettlement Completion Report December 31, 2014

Documents

RP: PRC: Songhua River Basin Water Pollution Control and