RP People's Republic of China Hebei Small Cities and Towns

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RP People's Republic of China Hebei Small Cities and Towns Powered By Docstoc
					     Asian Development Bank (ADB)
             Loan:2574-PRC
Hebei Small Cities and Towns Development
      Demonstration Sector Project




                 Weichang County Urban Area District Heating Project (Phase II)
                                  of Chengde Municipality




                              Updated Short Resettlement Plan
                               and Due Diligence Assessment




                   Weichang Manchu & Mongolian Ethnic Autonomous County Heating Company

                                                 May 2011
I
                             Letter of Commitment

Through Ministry of Finance, Hebei Provincial Government (HPG) is applying for the loan
from the Asian Development Bank (ADB) to finance the present project. Therefore, the
implementation of the present project should conform to ADB’s policies of Social Safeguards.
This Resettlement Plan represents a key requirement of the ADB and is the key basis for land
acquisition, house demolition and resettlement in the present project. This Resettlement Plan
also complies with the laws of the People’s Republic of China and local regulations.
Additional measures and arrangements for implementation and monitoring have been
adopted to obtain better resettlement result.

HPG hereby approves the contents of this Resettlement Plan and guarantees that
resettlement budget has been included in the whole project budget and it will be made
available as stipulated. HPG has discussed the draft Resettlement Plan with relevant
departments and the latter have confirmed their acceptance. HPG authorizes Hebei ADB
Project Management Office (HPMO) to be responsible for all project implementation and
relevant resettlement activities. Related local governments take charge of actual subproject
implementation and executing relevant resettlement.


                                                       WeiChang Country Government

                                                          ________________(signature)

                                                                            (    )
                                                            ________________(date)




                                             II
                                                      Table of Contents
       LETTER OF COMMITMENT .................................................................................................................. I
TABLE OF CONTENTS ...................................................................................................................................... I
EXECUTIVE SUMMARY .................................................................................................................................. I
GLOSSARY OR TERMINOLOGY ................................................................................................................... 1
LIST OF ACRONYMS AND MEASURES ........................................................................................................ 2
1      PROJECT DESCRIPTION ......................................................................................................................... 3

    1.1       INTRODUCTION .............................................................................................................. 3
    1.2       PROJECT BACKGROUND ................................................................................................ 3
    1.3       PROJECT CONTENTS AND RESETTLEMENT IMPACT.......................................................... 4
    1.4       COST ESTIMATE AND IMPLEMENTATION PLAN ................................................................. 5
2      IMPACT OF LAND ACQUISITION AND RESETTLEMENT ................................................................ 6

    2.1    MEASURES TO MINIMIZE LAND ACQUISITION AND RESETTLEMENT.................................... 6
      2.1.1   Principles Regarding Project Design and Location Selection .............................................. 6
      2.1.2   Project Scheme Comparison..................................................................................................... 6
    2.2       IMPACT OF LAND ACQUISITION ....................................................................................... 6
    2.3       PROJECT AFFECTED POPULATION.................................................................................. 7

3      SOCIO-ECONOMIC PROFILE AND IMPACT ASSESSMENT............................................................ 8

    3.1       BRIEF OF WEICHANG MANCHU & MOGOLIAN AUTONOMOUS COUNTY............................... 8
    3.2       CURRENT SOCIAL AND ECONOMIC STATUS OF AFFECTED VILLAGES ................................ 8
    3.3    PROJECT LAND ACQUISITION IMPACT ANALYSIS .............................................................. 9
      3.3.1    Permanent Collective-Owned Land Acquisition & Impacts Analysis ................................... 9
      3.3.2    Temporary Land Occupation & Impact Analysis ................................................................... 10
      3.3.3    Infrastructure & Ground-Attached Properties ....................................................................... 11
4      PARTICIPATION, CONSULTATION AND GRIEVANCE ..................................................................... 12

    4.1       INTRODUCTION ............................................................................................................ 12
    4.2       PUBLIC PARTICIPATION DURING PROJECT PREPARATION .............................................. 12
    4.3       PARTICIPATION & CONSULTATION PLAN DURING PROJECT IMPLEMENTATION ................. 13
    4.4       APPEALS AND GRIEVANCE REDRESS ............................................................................ 14

5      LEGAL FRAMEWORK AND RESETTLEMENT POLICIES .............................................................. 16

    5.1       INTRODUCTION ............................................................................................................ 16
    5.2       COMPENSATION PRINCIPLES FOR THE PROJECT ........................................................... 17
    5.3       COMPENSATION ELIGIBILITY CUT-OFF DATE ................................................................. 17
    5.4    COMPENSATION STANDARD ......................................................................................... 18
      5.4.1   Principles for Determination of Compensation Standard .................................................... 18
      5.4.2   Methodology for Determination of Compensation Standard............................................... 18
      5.4.3   Collective-owned Land Acquisition ......................................................................................... 18
      5.4.4   Temporary Land Occupation Compensation ........................................................................ 21
      5.4.5   Other Compensation standard ................................................................................................ 21
      5.4.6   Adequacy of Compensation Standards ................................................................................. 21
    5.5       COMPENSATION FUNDS DISBURSEMENT AND TIMING .................................................... 22

                                                                         I
    5.6       COMPENSATION ENTITLEMENT MATRIX ........................................................................ 23

6      INCOME RESTORATION PLAN ............................................................................................................ 24

    6.1       BACKGROUND ............................................................................................................. 24
    6.2    RESTORATION MEASURES FOR PERMANENT ACQUISITION OF COLLECTIVE LAND ........... 24
      6.2.1    Cash Compensation ................................................................................................................. 25
      6.2.2    Affected Persons Training ........................................................................................................ 25
      6.2.3    Project Employment ................................................................................................................. 26
    6.3       WOMEN RIGHTS .......................................................................................................... 26
    6.4       RESTORATION OF TEMPORARILY OCCUPIED LAND ........................................................ 26

7      INSTITUTION FRAMEWORK ................................................................................................................. 27

    7.1       RESPONSIBILITY OF INSTITUTIONS ................................................................................ 27
    7.2       STAFFING OF INSTITUTIONS ......................................................................................... 28
    7.3    RESETTLEMENT FRAMEWORK ...................................................................................... 28
      7.3.1    Institutional Framework ............................................................................................................ 28
      7.3.2    Training Plan .............................................................................................................................. 29
    7.4       INSTITUTIONAL CAPACITY STRENGTHENING .................................................................. 29
8      RESETTLEMENT BUDGET .................................................................................................................... 31

    8.1       RESETTLEMENT BUDGET CALCULATION........................................................................ 31
    8.2       RESETTLEMENT FINANCING AND DISBURSEMENT PLAN ................................................. 32
    8.3       RESETTLEMENT FUND MANAGEMENT AND DISBURSEMENT ............................................ 32
9      IMPLEMENTATION SCHEDULE............................................................................................................ 33

    9.1       ACTIVITIES PRIOR TO RESETTLEMENT .......................................................................... 33
    9.2       ACTIVITIES DURING RESETTLEMENT ............................................................................. 33
    9.3       ACTIVITIES AFTER RESETTLEMENT ............................................................................... 33
    9.4       RESETTLEMENT IMPLEMENTATION SCHEDULE................ERROR! BOOKMARK NOT DEFINED.
                                                                  E
10         MONITORING, EVALUATION AND REPORTING .......................................................................... 35

    10.1 INTERNAL MONITORING ............................................................................................... 35
      10.1.1 Objectives .................................................................................................................................. 35
      10.1.2 Major Tasks of Internal Monitoring ......................................................................................... 36
    10.2 EXTERNAL MONITORING .............................................................................................. 36
      10.2.1 Objectives .................................................................................................................................. 36
      10.2.2 Methodology .............................................................................................................................. 36
      10.2.3 Major Tasks ................................................................................................................................ 37
    10.3      REPORTING REQUIREMENTS ........................................................................................ 37




                                                                          II
ANNEX 1. TOR FOR EXTERNAL MONITORING & EVALUATION ........................................................ 38


ANNEX 2. INVESTIGATION SHEET FOR LAND ACQUISITION COMPENSATION DISTRIBUTION
............................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ANNEX 3.
REDUNDANT STAFF RESETTLEMENT PLAN FOR SSB CLOSEDOWN ............................................. 46




                                                                 III
                                      EXECUTIVE SUMMARY
Weichang County Urban Area District Heating Project (Phase II) of Chengde Municipality is
one of the subprojects of Hebei Small Cities & Towns Development Demonstration Sector
Project,a proposed ADB loan project. Weichang County Urban Area District Heating Project
(Phase II) comprises 3 parts: heating plant, primary heating pipeline, and heating supply
stations.

The beneficiary area is the urban area of Weichang County east to the Yixun River. The
construction of the Project can improve municipal infrastructures, enhance modernization level of
the urban area, create necessary conditions for sustainable development of Weichang County,
promote energy resource utilization efficiency, and save energy, alleviate air pollution and
improve environmental quality, and also help to realize scientific management and promote
heating quality.

The total cost estimation of Weichang County Urban Area District Heating Project (Phase II)
is CNY64.30million, including USD4.50million utilizing ADB loan. The resettlement cost is
CNY4,270,855, which takes up 6.64% of the total investment. The Project has been
scheduled to start construction in August 2011, and finish in December 2012, with the total
construction period of 17 months.

The project site is located in the east part of the urban area of Weichang County, on the south
bank of the Hu Si-tai River. According to the Project Application Report, the construction involves
permanent acquisition of 65mu collective forestry land belonging to 1st Group, Huzi Village. Here
we need to state that the original plant site for the Project is located in the southeast corner of the
urban area of Weichang County, on the west bank of the Yixun River, south to the Phase I
heating plant. A short resettlement plan document was compiled on this site in June 2008. In
2010, due to modification of the urban plan, the planned site was changed to the present site,
which is on the south bank of the Hu Si-tai River. The land acquisition and compensation has
been implemented by Weichang County Heating Company (WCHHC), the Project
implementation agency (IA), in June 2010. The location change was approved by HDRC in July
2010(JIFAGAIWAIZI [2010] No. 775). This short RP includes due diligence assessment of the
resettlement activities that had already been implemented in 2010 as well as the current status of
resettlement.

The primary heating pipeline construction needs temporary land occupation of 67.75mu, which is
river shoal land or state-owned motor or non-motor lanes. Temporary land use has no impacts on
people’s livelihood.

The construction of heat exchange stations will make use of existing and planned boiler houses
in the residential areas, and requires no demolition and land acquisition.

In order to avoid or reduce the negative impacts of land acquisition, during the detailed
design phase, discussions and participations have been conducted with the affected villages
and the APs on site selection. The best plan has been selected after multi-scheme
comparison and optimization.

This Resettlement Plan is based on the Land Administration Law of the People’s Republic of
China (2004), State Council Circular on the Decisions of Deepening Reform and Administrating
Land Strictly (Ref. No. GF [2004] 28), related policies of Hebei Province, ADB’s Policy on
Involuntary Resettlement (1995), and other relevant policies for social security. Also through

                                                 I
negotiation with local government and APs, the principles for preparation of this Resettlement
Plan have been determined: (i) involuntary resettlement should be avoided or minimized where
feasible; (ii) compensation and entitlements provided for the APs should be able to at least
maintain, or improve their “pre-project” standard of living;(iii) no matter whether they have legal
entitlements, all APs will be compensated and assisted; (iv) where land per capita after land
acquisition is not sufficient to maintain livelihood, compensation by cash or through land
replacement and other income-generating activities will be provided; (v) all APs will be
adequately informed on eligibility, compensation mode and standards, livelihood and income
restoration plans, project timing, and will be involved in RP implementation; (vi) no land
acquisition will take place unless replacement land or sufficient compensation are given to APs;
(vii) the EA and independent/ third party monitoring agency will monitor compensation and
resettlement operations; (viii) vulnerable groups will receive special assistance or treatment to
ensure them to better off. APs should have the opportunities to benefit from the Project; (ix) RP
should be combined with the local general plan; and (x) RP budget should be adequate and
cover full aspects.

The compensation standard for land acquisition shall abide by the “Notice on Enforcement of
Sectional Prices of Land Acquisition by Hebei Provincial Government” (Ji Administrative Doc. No.
[2008]132), as well as stipulations in “Implementation Method for Land Acquisition
Compensation of Weichang Manchu & Mongolian Autonomous County Heating Resource Plant
Second-stage Project”. As stipulated in the above document, the sectional land compensation
price has been determined as CNY 46,000/mu, totally CNY2,990,000.

The land acquisition involved in the Project, totally 65mu, is all collective-owned hilly forestry land,
and can be classified into 2 parts as the following:

The first part is 1 mu household plot allocated to the family of Liu Cheng, a villager of Group 1,
Huzi Village. The land compensation fund will be CNY46,000. The village collective will reserve
20% of the fund, which is about CNY9,200, while the household headed by Liu Cheng will obtain
the rest 80%, roughly CNY36,800.The land attachments include mainly poplar and pine trees,
altogether about 450 plants. Based on consultation and negotiation with the AP, the Project IA will
pay a lump-sum compensation of CNY 8, 931, which will be issued to Liucheng in full.

The rest is 64mu unutilized forestry land of the village collective, which has been contracted to
Sun Jin-rong, also villager of Group 1, Huzi Village, to plant trees in 1982. There are altogether
4,100 plantings by the end of April, 2010, including poplars and pines. After consultation, the
Project will pay CNY300,000 for the ground attached plants to Sun Jin-rong, while the land
compensation fund for the 64mu land, totally CNY2,944,000, will be paid to and reserved by the
village collective. Furthermore, because the contract between the Sun Jin-rong and the village
committee is still in its term of validity, on the basis of full consultation, the village committee will
allocate CNY50,000 from the CNY2,944,000 fund to Sun Jin-rong, as an compensation for early
determination of the contract.

Considering the fact that the 64mu forestry land is unutilized forestry land reserved by the village
collective, and the reserved collective land belongs to all villagers of the village. So the
distribution method of the compensation fund is to divide the remainder fundtotally
CNY2,894,000, equally among the villagers in Huzi Village. According to consultation among
villagers, the detailed distribution method had been determined as the following:

First, considering the fact that the land involved in permanent acquisition belongs to collective
land of 1st Group of Huzi Village, 20% of the total sum, about CNY578,800, will be divided

                                                 II
among villagers of the 1st Group. The qualification of distribution was determined as formally
registered agricultural-status collective-landowners by April 2010, altogether 43 HHs, 130
persons. The fund was divided evenly, about CNY4,452 for each person.

Secondly, 40% of the total sum, about CNY 1,157,600 will be divided among villagers of the Huzi
Village (including 1st Group villagers). The qualification of distribution was determined as
formally registered agricultural-status collective-landowners by April 2010, altogether 107 HHs,
341 persons. The fund was divided evenly, about CNY3,395 for each person.

Finally, the remainder 40% of the total sum, about CNY 1,157,600, will be reserved by the village
committee, mainly as special fund for villagers’ welfare, construction and maintenance of
collective infrastructures such as road, drainage, and lighting etc.
Each person in Huzi Village can obtain at least CNY 3,395 for land compensation.

As for villagers in the 1st Group of Huzi Village, due to the secondary distribution chance for
them, the land compensation for each person will be CNY4,452 plus CNY3,395, totally
CNY7,847.

The income restoration measures include cash compensation, technical training and Project
employment priority. According to the consultation and agreement with the village committee,
the compensation fee for the new acquisition of 26.34mu collective-owned land will be kept
by the group collective for expense of the construction of Farmers’ Apartment Project in 1st
Group of Qianjin, villagers’ welfare expense and technical training of local labors. WCCPMO
and WCCHC also allocate CNY50,000 to the affected labor force (including 50% women
labor) for technical training.

Through different ways, such as, meetings, interviews and group discussions, public
participations and negotiations within communities, all the affected persons were informed of
the key content of the resettlement plan. Villagers have participated in the project and their
opinions were included in the plan. The Resettlement Plan was handed out to the affected
persons and villages in April 2011 2011. The first draft of the Resettlement Plan will also be
publicized on the ADB’s official website by the end of June 2011. The grievance redress
channel has been established for the affected persons. Each relevant agency should process
the complaint and grievance redress from the affected persons without charge, and the
reasonable fee resulted will be covered by the contingencies.

According to survey of the resettlement effect performed on the spot, the APs are all satisfied
with the compensation and resettlement, and no one raised complaints and appeals. The
resettlement project has achieved very good results.

WCCHC is the implementation agency of the project. It set up a special Resettlement Office
to carry out the specific responsibility for implementation of the Resettlement Plan. To ensure
the implementation of the rehabilitation measures are effective, besides internal monitoring,
WCCPMO will entrust independent monitoring agency for external monitoring and evaluation
every six months. The monitoring and evaluation fee will be covered in the resettlement
budget.




                                             III
                            Glossary or Terminology
Affected person (or household): People (households) affected by project-related
changes in use of land, water or other natural resources.
Compensation: Money or payment in kind to which the people affected are entitled in order
to replace the lost asset, resource or income.
Entitlement: Range of measures comprising compensation, income restoration, transfer
assistance, income substitution, and relocation which are due to affected people, depending
on the nature of their losses, to restore their economic and social base.
Replacement Cost: Replacement Cost refers to a method of asset evaluation that uses
market price to replace lost property or uses its closet equivalent, adding any
transaction cost, for example, administration cost, tax, registry fee and the cost for
gaining (owning or using) qualification. If the standard is not stipulated in any national law,
a replacement cost is necessary to be complemented to it. The replacement cost is
determined on the basis of the higher one of the current market price and the market
price prior to property lost. In the absence of the functional market, a compensation
structure shall be used to make the living level of affect persons recover at least to the
level when losing property, moving or limiting use (of the property).
Income restoration: Reestablishing income sources and livelihoods of people affected
Relocation: Rebuilding housing, assets, including productive land, and public infrastructure
in another location.
Resettlement effect: Loss of physical and non-physical assets, including homes,
communities, productive land, income-earning assets and sources, subsistence, resources,
cultural sites, social structures, networks and ties, cultural identity, and mutual help
mechanisms.
Resettlement plan: A time-bound action plan with budget setting out resettlement strategy,
objectives, entitlement, actions, responsibilities, monitoring and evaluation.
Vulnerable groups: Distinct groups of people who might suffer disproportionately from
resettlement effects.
Allocation of the land use right: Allocation of the land use right refers to acts that,
after the land user has paid compensation and expenses for resettlement, etc. with the
law, allocate the land to the land user or gratuitously allocate the land-use right to the
land user.
Transfer of the Land Use Right: Transfer of the Land Use Right refers to the acts that
the State grants land users the right to use the state-owned land for a certain number of
years on condition that the users shall pay the State a transfer fee for the land-use right.

Basic Farmland: Basic Farmland generally means the fertile land used for agricultural
production which is strictly protected by the general plan.




                                            1
              LIST OF ACRONYMS AND MEASURES

AAOV     Average Annual Output Value
ADB      Asian Development Bank
AP       Affected Person
WCCDRO   Weichang County Demolition & Resettlement Office
WCCLAB   Weichang County Land Administration Bureau
WCCPMO   Weichang County ADB Project Management Office
WCCHC    Weichang County Heating Company
CRC      Community Residents Committee
DI       Design Institute
DMS      Detailed Measurement Survey
EA       Executing Agency
EIA      Environmental Impact Assessment
EPB      Environmental Protection Bureau
FB       Finance Bureau
GDP      Gross Domestic Product
FSR      Feasibility Study Report
Ha       Hectare
HDRC     Hebei Development and Reform Committee
HPG      Hebei Provincial Government
HPMO     Hebei Project Management Office
IA       Implementing Agency
LAB      Land Administration Bureau
LSSL     Least Subsistence Security Line
M&E      Monitoring and Evaluation
NGO      Non Governmental Organizations
PMO      Project Management Office
PPTA     Project Preparatory Technical Assistance
PRA      Participatory Rapid Appraisal
PRC      Peoples Republic of China
RO       Resettlement Office
RP       Resettlement Plan
TA       Technical Assistance
TSECC    Tianjin Saiying Engineering Construction Consultancy Management Co. Ltd.
ToR      Terms of Reference
WTP      Water Treatment Plant
US$      United States Dollar
km2      square kilometer
mm       Millimeters
m3/d     Cubic Meters per day
≤        Less than or equal to
≥        Greater than or equal to
mu       Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu)
CNY      Chinese currency Yuan, 1 Yuan = 1/7.0 $US ( $US1=CNY 7.0)




                                         2
 1     Project Description
 1.1 Introduction

The Resettlement Plan (RP) report is prepared in accordance with the following: ADB’s
Involuntary Resettlement Policy (1995); and Chinese laws and regulations, local by-laws and
policies, which provide a policy framework for mitigating negative impact of the proposed
sub-component and also provides a basis for measures to recover the income of the affected
persons (APs). Additionally, ADB’s Resettlement Handbook-A Guide to Good Practice and
Gender Dimension of Resettlement (Gender Checklist: Resettlement, March, 2003) has been
also used as a guide to prepare this resettlement plan.

For both ADB and the PRC government, the over-riding objective of the RP is to ensure
people, whose land or property is unavoidably lost due to the Project, receive assistance so
that they would be at least as well-off as they would have been in the absence of the Project,
and get benefits from the project. All the policies, plans and compensation measures in this RP
have been made just for the above purpose. Weichang County government has made it clear
that Weichang County Project Management Office (WCCPMO) will work as the executing
agency (EA) and Weichang County Heating Company (WCHHC) as the implementation
agency (IA). The IA will be responsible for routine operation of the Project.

The RP is prepared on the basis of the following: (i) relevant project reports, especially the
feasibility study report (FSR) and the detailed design document of the project,
environmental impact assessment (EIA) report; (ii) the results of discussion with the EA, IA,
and authors of the above reports; (iii) field surveys to proposed construction site and social
economic census; and (iv) consultation with APs, local government, township/village leaders.

Engineering data for this RP mainly comes from the detailed design of Weichang County
Urban Area District Heating Project (Phase II) of Chengde Municipality. The RP has been
endorsed by Hebei Provincial Government (HPG). The RP was disclosed to the affected
village in April 2011 and will be sent to the ADB and uploaded to the website by June 15th,
2011.


 1.2 Project Background

Weichang County Urban Area District Heating Project (Phase II) of Chengde Municipality is
one of the subprojects of Hebei Small Cities & Towns Development Demonstration Sector
Project,a proposed ADB loan project. Weichang County Urban Area District Heating Project
(Phase II) comprises 3 parts: heating plant, primary heating pipeline, and heating supply
stations.

The Project beneficiary area is the urban area of Weichang County east to the Yixun River.
The existing heating area in the service scope of Phase II Project region is about 550,000m2,
which has been planned to increase to 1,500,000 m2 in 2013. Therefore, construction of the
expanded district heating system is an urgent requirement for social development of the
County. It can be expected that construction of the Project will bring the following social and
economic benefits: (i) improve municipal infrastructures, enhance modernization level of the
urban area, and create necessary conditions for sustainable development of Weichang County;


                                             3
(ii) promote energy resource utilization efficiency, and save energy; (iii) enable installation of high
chimneys and smog cleaning facilities, which will help to eliminate smog discharge, alleviate air
pollution and improve environmental quality; (iv) save a lot of areas for distributed small-scale
heating boiler stations and piling yards for fuel and ash; (v) The Project can reduce the amount of
stoker staff, which can be transferred to maintenance and service positions, reduce
transportation and operation expense (Annex 3). and (vi) help to realize scientific management
and promote heating quality.

1.3    Project Contents and Resettlement Impact

Weichang County Urban Area District Heating Project (Phase II) comprises 3 parts: heating
plant, primary heating pipeline, and heating supply stations. The project site is located in the
east part of the urban area of Weichang County, on the south bank of the Hu Si-tai River.
According to the Project Application Report, the construction involves permanent acquisition of
65mu collective forestry land belonging to 1st Group, Huzi Village. The original plant site for the
Project is located in the southeast corner of the urban area of Weichang County, on the west
bank of the Yixun River, south to the Phase I heating plant. A draft short resettlement plan
document was compiled on this site in June 2008. In 2010, due to modification of the urban plan,
the planned site was changed to the present site, which is on the south bank of the Hu Si-tai
River. The land acquisition, compensation and AP resettlement has been implemented by
Weichang County Heating Company (WCHHC), the Project implementation agency (IA), in
June 2010. The location change was approved by HDRC in July 2010(JIFAGAIWAIZI [2010] No.
775). A due diligence assessment was conducted for the resettlement activities that had already
been implemented in 2010.
The following Table 1 shows basic information of the Project:

                                   Table 1 Project Description
Contents of
                            Brief Description                   Land Acquisition & Resettlement
  Project
                                                              The project site is located in the east
                                                              part of the urban area of Weichang
                                                              County, on the south bank of the Hu
                                                              Si-tai River. According to the Project
               Total installation capacity of the heating     Application Report, the construction
               plant is 116MW ( 2×58MW ) . New                involves permanent acquisition of 65mu
Construction   production buildings include the main          collective forestry land belonging to 1st
 of heating    workshop, power distribution room, pump        Group, Huzi Village. The land
    plant      house,     subsidiary     workshop,   ash      acquisition compensation has been
               sedimentation tank, ash drying yard, dry       implemented by Weichang County
               coal shed, clear water tank, etc.              Heating Company (WCHHC), the
                                                              Project implementation agency (IA).
                                                              The due diligence was conducted for
                                                              the resettlement activities conducted in
                                                              2010.
               The total length of the primary heating
Construction                                                  The Project construction involves
               pipeline is 6754m, including hot water
 of primary                                                   temporary land occupation of 67.80mu,
               supply and return pipeline, with the
  heating                                                     all river shoal land or state-owned
               diameter of DN200 ~ DN500. All the
  network                                                     non-motor lanes.
               pipeline will adopt ductile iron pipe



                                                 4
Contents of
                          Brief Description                  Land Acquisition & Resettlement
  Project


Construction   The Project will build 7 heat exchange      The construction will make use of
  of heat      stations, with the service area of          existing and planned boiler houses in
 exchange      170,000~255,000 m2, and the heat loads of   the residential areas, and requires no
  stations     10.44~23.39MW。                              demolition and land acquisition.




1.4    Cost Estimate and Implementation Plan

The total cost estimation of Weichang County Urban Area District Heating Project (Phase II)
is CNY64.30million, including CNY4,270,855 for resettlement, which takes up 6.64% of the
total.

The Project has been scheduled to start construction in August 2011, and finish in December
2012, with the total construction period of 17 months. The land acquisition, compensation
and resettlement plan has started execution in June 2010.




                                              5
2         Impact of Land Acquisition and Resettlement
2.1       Measures to Minimize Land Acquisition and Resettlement

2.1.1 Principles Regarding Project Design and Location Selection

In the phase of project design, in consideration of minimizing the impact of acquisition and
resettlement, the following principles shall be adopted:

      •   Avoid or reduce the occupation of the present and planning residential districts;
      •   Avoid or reduce the occupation of high-quality cultivated land;
      •   Utilize existing national or local roads available to the project site;
      •   Avoid or reduce the occupation of the environmentally sensitive area.

2.1.2 Project Scheme Comparison

The project construction scheme has been determined on the basis of comprehensive
comparison and evaluation on technical viability, economical feasibility, and implementing
feasibility on site selection, pipe alignment, construction plan, heat exchange process, etc.

The project site is located in the east part of the urban area of Weichang County, on the south
bank of the Hu Si-tai River. Most of the site can make use of the collective hilly forestry land
belonging to 1st Group, Huzi Village and takes less farmland. The site is convenient in
transportation and management, and makes less impact on the environment of the
surrounding area. It is suitable for construction of the heating plant. Two schemes have been
made for comparison during the course of design in the feasibility study stage.

In Scheme I, three sets of 29kW boilers and subsidiary equipment to be installed, with the
gross capacity of 87kW.

In Scheme II, two sets of 46kW boilers and subsidiary equipment to be installed, with the
gross capacity of 92kW.

After techno-economic comparison considering all factors including land acquisition, it was
concluded that the two schemes provide almost the same heating capacity. Scheme II has
higher single-equipment capacity, with less equipment, less land occupation, and higher
heating efficiency. There is lower investment requirement for the boilers and subsidiary
equipment, with shorter construction period, less operation & maintenance staff, and lower
operation cost.

According to the result of the above-mentioned comparison, Scheme II enjoys obvious
techno-economic advantages, with less land occupation, which can reduce the impact from
land acquisition. The project will be performed according to Scheme II.

2.2       Impact of Land Acquisition

The resettlement impact of the Project is mainly permanent land acquisition, which involves
no demolition of residential houses and enterprise properties.

The project site is located in the east part of the urban area of Weichang County, on the south
bank of the Hu Si-tai River. According to the Project Application Report, the construction
involves permanent acquisition of 65mu collective forestry land belonging to 1st Group, Huzi
Village. The original plant site for the Project is located in the southeast corner of the urban
area of Weichang County, on the west bank of the Yixun River, south to the Phase I heating

                                              6
plant. A short resettlement plan document was compiled on this site in June 2008. But the
resettlement and land acquisition was not executed. In 2010, due to modification of the urban
plan, the planned site was changed to the present site, which is on the south bank of the Hu
Si-tai River. The land acquisition, compensation and AP resettlement has been implemented
by Weichang County Heating Company (WCHHC), the Project implementation agency (IA),
in April 2010.

The primary heating pipeline construction needs temporary land occupation of 67.75mu,
which is river shoal land or state-owned motor or non-motor lanes. Temporary land use has no
impacts on people livelihood.

The construction of heat exchange stations will make use of existing and planned boiler
houses in the residential areas, and requires no demolition and land acquisition. However, 65
old boliers will be closed and the workers will be shifted to various operations within the
company (see details of the re-employment plan in Annex 3)

2.3    Project Affected Population

In May 2010, in order to know the impact condition and according to the requirement of ADB,
the IA, WCHHC, and the resettlement plan preparation agency, TSECC, conducted surveys
in affected villages and groups with the coordination of local cadres and villagers.

The land acquisition involves registered land-owners of 107HHs, 341 persons in Huzi Village,
including 2HHs, 5 persons directly affected by the Project land acquisition (refer to Annex 2).
Of all the 65mu land involved in permanent acquisition, 1mu is household plot allocated to the
family of Liu Cheng, a villager of Group 1, Huzi Village. The remained 64mu is unutilized
forestry land of the village collective, which has been contracted to Sun Jin-rong, also villager
of Group 1, Huzi Village, to plant trees in 1982. The agricultural collective, Group 1 of Huzi
Village, enjoys the ownership of all the above-mentioned land.




                                              7
3      Socio-Economic Profile And Impact Assessment
3.1    Brief of Weichang Manchu & Mongolian Autonomous County

Weichang Manchu & Mongolian Autonomous County (herein after referred as Weichang
County) is located in the north end of Hebei Province. The County is bordering with the Inner
Mongolia Autonomous Area in the east, west, and north, adjacent to Fengning County and
Longhua County in the southwest and south. The territory of is 130km long in the east-west
direction, and 118km width in the south-north width, with the total area of about 9219.72 km2,
which tops in Hebei Province. There are 37 townships, 312 administrative villages under
administrative jurisdiction of the County, with the population of 526,000. There are about
290,000 ethnic minorities, mainly Manchu and Mongolian, which takes up 56.2% of the total
population. The urban area is about 185.75 km2, with the population of about 72,000.

The County has convenient traffic communications, with the State Rd.111 running across the
area. There are 4 provincial main roads including Beijing-Weichang, Tianjin-Weichang,
Chengde-Weichang, and Weichang-Duolun. There are 4 specialized railway freight stations.

Weichang County has rich natural resources, mineral resources, and tourism resources. The
county is the main agricultural county and the state-famous “township-of-potato-planting”.
The total potato-planting area is about 400,000mu, with the annual output of 0.65 billion
kilograms. In recent years, with the rapid development in agriculture, industries and tourism,
the County has formed its six leading industries, which are potato, cow, vegetable, electricity,
mineral, and tourism.

The total GDP of Weichang County in 2009 was CNY4.12 billion, including CNY1.52 billion of
agricultural output, CNY1.14 billion of industrial output, and CNY1.46 billion of tertiary
industrial output. The financial income of the County was CNY215 million, with the society
fixed asset investment of CNY3.94 billion. The per capita disposable income of urban
residents was CNY9,890. The per capita net income of local farmers was CNY2,607.

3.2    Current Social and Economic Status of Affected Villages

The permanent acquisition of collective farmland for the Project involves 1st Group of Huzi
Village, which is located adjacent to Weichang urban area, with obvious location merits. In
recent years, with the rapid development of Weichang economy, the non-agricultural
economy of the village has increased rapidly. The surplus laborers have been attracted to
jobs in urban areas. At present, although farming output is still the main income resource of
the villagers, more and more people are working on non-farm activities, such as migrant
laborers or in local agricultural products trading, restaurants, and hotel businesses. These
has also become one of the main income resources of local people, which takes up about
45% of their family income.

In 2009, there are altogether 131 households in Huzi Village, with the total population of 372,
including 202 males and 170 females, all agricultural status. The labor population is 255, with
the employment structure of 190 in agriculture, 62 in industry and other fields such as
commercial trading, transportation, and service trades. Of all the population, there are 366
people of Han nationality, 6 of Manchu nationality. There are altogether 650mu arable
farmlands in the village, or 1.75mu per capita in average, with potato and corn as the main
crops. Besides, there are 8,900mu forestry land, and 18,000mu unutilized land in the village.
The GDP of Huzi Village in 2009 was CNY1,1 million, in which the gross agriculture product
was CNY0.90 million, the gross industry product was CNY0.10 million and the gross product
of tertiary industry was CNY0.10 million. The financial income of the village was CNY10,000.


                                             8
The per capita net income of the villagers was CNY2500. As for welfare, the village offers
CNY16 per month for each villager in “low-income” households.

In 2009, there are altogether 43 households in 1st Group of Huzi Village, with the total
population of 130, including 76 males and 54 females, all agricultural status and Han
nationality. There is altogether 246mu arable farmland in the village, with potato and corn as
the main crops. Besides, there are 3,000mu forestry land, and 6,000mu unutilized land in the
village. The GDP of 1st Group, Huzi Village in 2009 was CNY400,000. As for welfare, the
group offers an extra subsidy of CNY8 per month for each villager in “low-income”
households on the basis of the aid from the village.


3.3     Project Land Acquisition Impact Analysis


The resettlement impact of the Project is mainly permanent land acquisition and temporary
land occupation, which involves no demolition of residential houses and enterprise
properties.

The primary heating pipeline construction needs temporary land occupation of 67.75mu,
which is river shoal land or state-owned motor or non-motor lanes.

The construction of heat exchange stations will make use of existing and planned boiler
houses in the residential areas, and requires no demolition and land acquisition.

3.3.1   Permanent Collective-Owned Land Acquisition & Impacts Analysis

The proposed project site is located in the east part of the urban area of Weichang County,
on the south bank of the Hu Si-tai River. According to the Project Application Report, the
construction involves permanent acquisition of 65mu collective forestry land belonging to 1st
Group, Huzi Village. The land acquisition compensation has been implemented by Weichang
County Heating Company (WCHHC), the Project implementation agency (IA) in June 2010.
The land acquisition involves registered land-owners of 107HHs, 341 persons in HUzi Village,
including 2HHs, 5 persons directly affected by the Project land acquisition. Of all the 65mu
land involved in permanent acquisition, 1mu is household plot allocated to the family of Liu
Cheng, a villager of Group 1, Huzi Village. The remained 64mu is unutilized forestry land of
the village collective, which has been contracted to Sun Jin-rong, also villager of Group 1,
Huzi Village, to plant trees in 1982. The agricultural collective, Group 1 of Huzi Village, enjoys
the ownership of all the above-mentioned land.

The compensation standard for land acquisition shall abide by the “Notice on Enforcement of
Sectional Prices of Land Acquisition by Hebei Provincial Government” (Ji Administrative Doc.
No. [2008]132), as well as stipulations in “Implementation Method for Land Acquisition
Compensation of Weichang Manchu & Mongolian Autonomous County Heating Resource
Plant Second-stage Project”. As stipulated in the above document, the sectional land
compensation price has been determined as CNY 46,000/mu, totally CNY2,990,000.
The land acquisition involved in the Project, totally 65mu, is all collective-owned hilly forestry
land, and can be classified into 2 parts as the following:

The first part is 1 mu household plot allocated to the family of Liu Cheng, a villager of Group 1,
Huzi Village. The land compensation fund will be CNY46,000. The village collective will
reserve 20% of the fund, which is about CNY9,200, while the household headed by Liu
Cheng will obtain the rest 80%, roughly CNY36,800. The land attachments include mainly
poplar and pine trees, altogether about 450 plants. Based on consultation and negotiation
with the AP, the Project IA will pay a lump-sum compensation of CNY 8,931, which will be

                                              9
issued to Liucheng in full.

The rest part is 64mu unutilized forestry land of the village collective, which has been
contracted to Sun Jin-rong, also villager of Group 1, Huzi Village, to plant trees in 1982. There
are altogether 4,100 plantings by the end of April, 2010, including poplars and pines. After
consultation, the Project will pay CNY300,000 for the ground attached plants to Sun Jin-rong,
while the land compensation fund for the 64mu land, totally CNY2,944,000, will be reserved
by the village collective. Furthermore, because the contract between the Sun Jin-rong and
the village committee is still in its term of validity, on the basis of full consultation, the village
committee will allocate CNY50,000 from the CNY2,944,000 fund to Sun Jin-rong, as
compensation for early determination of the contract.




                                                Figure 3-1 Existing Conditions of Proposed
                                                               Heating plant



3.3.2   Temporary Land Occupation & Impact Analysis

According to the temporary land occupation scheme, the main temporarily occupied land of
the project is the areas used for construction of the primary heating pipeline. The total
temporarily occupied state-owned land area is 67.75mu, which is all state-owned river shoal
land or motor/non-motor vehicle lanes of state-owned roads. The proposed occupation period
is less than 6 months. The pipeline construction involves no demolition, and will bring no
impact on the livelihood of local households.

At the same time, the engineering and environmental protective measures should avoid or
reduce disturbance to surrounding environment, and construction monitoring should be
adopted during implementation. Before construction, relevant information should be
publicized in advance (at least one month), with consultation of opinions from the affected
persons to ensure the smooth and fast implementation. Engineering and environmental


                                               10
protective measures such as watering, paving temporary paths, etc. shall be taken so as to
avoid dust-blowing, traffic jam and other adverse impacts. In the mean time, construction of
pipeline will be divided into several flexible sections, with the construction period of each
section controlled within about two weeks. During implementation, temporary access
pavement and guiding signs will be needed to reduce or minimize the impacts. Refer to Table
3-3 for temporary land occupation condition.

                            Table 3-3 Temporary Land Occupation
             Pipe    Pipe       Width of     Width of                   Temporary
 Project                                                Temporary
             Dia.   Length     Excavation    Occup.              2      Occupation      Remarks
  Item                                                  Occup. (m )
            (mm)      (m)         (m)          (m)                         (mu)
                                                                                       River shoal/
             200      360          1.4          6.5         2340            3.51       non-motor
                                                                                          lanes
                                                                                       River shoal/
             250     2170         1.45          6.5        14105           21.16       non-motor
                                                                                          lanes
                                                                                       River shoal/
 Primary     300     1360          1.5          6.8         9248           13.87       non-motor
 Heating                                                                                  lanes
 Pipeline                                                                              River shoal/
             400      782          1.6          6.8        5317.6           7.98       non-motor
                                                                                          lanes
             450     1352          1.7          6.8        9193.6          13.79       River shoal

             500      730          1.7          6.8         4964            7.45       River shoal

  Total              6754                                  45168.2         67.75



3.3.3   Infrastructure & Ground-Attached Properties

According to site investigation, the land acquisition involved in the Project, totally 65mu, is all
collective-owned hilly forestry land, and can be classified into 2 parts as the following:

The first part is 1 mu household plot allocated to the family of Liu Cheng, a villager of Group 1,
Huzi Village. The land attachments include mainly poplar and pine trees, altogether about
450 plants.

The rest part is 64mu unutilized forestry land of the village collective, which has been
contracted to Sun Jin-rong, also villager of Group 1, Huzi Village, to plant trees in 1982. There
are altogether 4,100 plantings by the end of April, 2010, including poplars and pines.

The Project has no other impact on infrastructure or ground-attached property.




                                              11
4     Participation, Consultation and Grievance Redress
4.1 Introduction

Public participation and consultation activities have been conducted according to ADB
resettlement policies and related laws/regulations of Chinese government. The goal is
to ensure project implementation by collecting comments from all interested parties and
included in the RP. The comments or concerns from APs will be taken into the
consideration and resolved during the implementation of land acquisition and
resettlement.

WCCPMO and WCCHC have conducted extensive discussion and consultation in
line with ADB’s resettlement policies and Chinese laws/regulations since December of
2009 with support from TA consultants and concerned departments, so as to make
affected peoples fully understand the compensation standards and entitlements for land
acquisition.

4.2 Public Participation During Project Preparation

According to ADB, the affected people should be fully informed and closely consulted on
resettlement and compensation options. An inappropriate policy without any consultation
may lead to poverty and extreme hardships suffered by the APs. During the process of
RP compilation and implementation, public participation and consultation have been or
will be carried out so as to ensure that the needs and comments of APs are considered
and the legal rights of affected entities and individuals are protected. APs should be
thoroughly aware of the policy, standards, and grievance process about resettlement so
that complaints and grievances on the resettlement will be possibly avoided and
reduced through implementation of the consultation processes, thus smoothly achieve
the goals of resettlement.

Since December 2009, with the assistance of WCCPMO,WCCHC and the FSR design
institute, the RP compiler, TSECC, has conducted series socio-economic investigations
and public consultations in which 50% of the participants are women. Widely spread
consultation has been carried out during the project preparation period on land acquisition
and resettlement of this project. Table 4-1 summarized the consultation records. The
comments collected from meetings and feedbacks from surveys are very useful in the
preparation of RP, particularly in the aspects of compensation rates, land reallocation,
direct disbursement, training and income restoration policies.

              Table 4-1 Public Participation During Project Preparation
                                       Number
Department    Date      Participants     of           Aim                 Major Advice or Contents
                                       People
                                                   Preliminary            Introduce background of
WCCPMO/                                         investigation of          project and aim of the project
                        APs, Village
WCCHC/                                               project              Project site selection should
             2009/12      Carders,       6
  Design                                         feasibility, field       avoid cultivated land
                        technicians
 Institute                                         survey and             acquisition as much as
                                                project impacts           possible
                                                                          support the project & survey
                        APs, Village
 WCCHC/                                         Data collection           understand the attitudes of
             2010/4     Carders, RP      10
 TJSECC                                             for RP                APs
                         Compiler
                                                                           collect basic data
 WCCHC/      2010/4      concerned       11            RP             •     assist the project impacts

                                          12
                                         Number
Department     Date     Participants       of          Aim             Major Advice or Contents
                                         People
 TJSECC                  government                 preparation,         investigation
                         and village              investigation of •     The village representatives
                       representatives              resettlement         strongly expressed the
                                                    impacts and          necessity of the project
                                                  socioeconomic •        socioeconomic
                                                      situation          investigation and affected
                                                                         households investigation
                                                                   •     suggestions for
                          concerned               Preparation of         compensation standards of
 WCCHC/                  government                  Income              land acquisition;
              2010/4                       70
 TSECC                   and village               Restoration     •     suggestions for
                       representatives                 Plan              resettlement management
                                                                         and livelihood
WCCPMO/
                                                                   •     Publicize compensation
WCCHC/
              2011/4        APs                    Publicize RP          rate and grievance redress
  Design
                                                                         channel, etc.
 Institute
   ADB                                             Publicize the
              2011/6
 Website                                           updated RP

4.3 Participation & Consultation Plan During Project Implementation

Notwithstanding the amount of public consultation already carried out, the EA/IA and
local government fully accept that after the PPTA and during the implementation of
resettlement and land acquisition, additional consultations was carried out. The principal
activities to be undertaken are: (i) publication and dissemination of policies, entitlements,
compensation standards, and grievance procedures; (ii) holding           formal        village
meetings to ratify the options to compensation disbursement and utilization, and (iii)
conducting Detailed Measurement Survey (DMS) in the field to measure and agree the
final requirements for land, property and other acquisition, from each affected
household/shop/enterprise. Table 4-2 lists consultation that was done prior to land
acquisition. The activities of the consultation plan and more information are also shown
in the implementation schedule in Table 9.1.




                                            13
   Table 4-2 Public Consultation Participation Completed Prior to Land Acquisition
        Aim             Means   Time     Department       Participants          Topic
                     village                                            Publicize land
                                      WCCPMO/WCCLAB
                     notice                                             acquisition area,
Land Acquisition                          /WCCHC
                     board and 2010/4                       All APs     resettlement rate
Announcement                          /Township & village
                     villager                                           and resettlement
                                           carders
                     meeting                                            means
Announcement of      village
                                      WCCPMO/WCCLAB
land Acquisition     notice
                                          /WCCHC                        compensation rate &
Compensation and     board and 2010/4                       All APs
                                      /Township & village               disbursement
Resettlement         villager
                                           carders
Scheme               meeting
                                                                       • inventory of all assets
                                                                         and land holdings;
                                      WCCPMO/WCCLAB
Conduct DMS,                                                           • Create definitive list
                     field                /WCCHC
recheck resettlement           2010/4                       All APs      of APs;
                     survey           /Township & village
Physical Index                                                         • Prepare
                                           carders
                                                                         compensation
                                                                         agreement
                                                                        discuss final income
                     villager         WCCPMO/WCCLAB
Confirm Income                                                          restoration program
                     meeting              /WCCHC
Restoration Program            2010/4                       All APs     and compensation
                     (several         /Township & village
and Implementation                                                      fund disbursement
                     times)                carders
                                                                        scheme

 4.4 Appeals and Grievance Redress

 Public participation is encouraged in both the preparing and the implementing process
 of the resettlement action plan, so there should not be immense controversies to incur.
 However, in the whole process, some unforeseeable problems may happen. In order to
 effectively solve the problems and guarantee the successful land acquisition and
 project implementation, a transparent and effective grievance redress channel is to be
 set up in the project. In case APs are dissatisfied with compensation arrangements
 made by the resettlement staff, or they feel unfairly or unreasonably treated, they can
 seek settlement through grievance or appeal redress procedures.

 The basic solution procedures are as follows:

 - Stage 1: If the rights of the affected households are infringed in any respect of the land
 acquisition and resettlement, the affected households can complain or appeal to
 Villagers’ Representative Committee in oral or written form. If an oral appeal is made, the
 VRC must record it on paper and respond to it. The appeal of the AP shall be handled
 within one week. The person responsible for resettlement appeals in the VRC of Huzi
 Village is Zhangde, whose cell-phone number is 13832408051.

 - Stage 2: If the AP is not satisfied with the decision in stage 1, he/she can, after receiving
 the solution, appeal progressively to the Implementation Agency (IA) of the Project,
 Weichang County Heating Company (WCCHC). The IA shall make a solution within one
 week. The person responsible for resettlement appeals in WCCHC is Ji Rong-wei, whose
 cell-phone number is 13903149351. His office is located at No.6, Litang-beijie, Weichang
 Town, Weichang County.

 - Stage 3: After receiving the solution from the IA in stage 2, if the AP is not satisfied with
 the decision, he/she can appeal to Weichang County Project Management Office
 (WCCPMO) or Weichang County Land Resources Bureau (WCCLAB) for administrative
 arbitration. WCCPMO or WCCLAB who accepted the appeal shall make a solution within

                                              14
ten days. The person responsible for resettlement appeals in WCCPMO is Yang Yong-li,
whose cell-phone number is 13831416088. His office is in the Financial Bureau of
Weichang County. The person responsible for resettlement appeals in WCCLAB is Dai
Mu-fei, whose cell-phone number is 13483861358. His office is in the first floor of the
WCCLAB.

- Stage 4: if the AP is still dissatisfied with the arbitration result, he/she can appeal to the
civil court according to civil litigation law after receiving the final arbitration solution. The
APs can make appeals on any respect of the resettlement, such as compensation rates,
etc.

All of the institutions shall accept the appeals and grievance of the affected persons free
of charge, while the proper expenses occurred thereof will be paid in the contingencies of
this project. The grievance redress procedures will be valid in the whole construction
period, so that the affected persons may apply them to solve relevant problems.




                                             15
5       Legal Framework and Resettlement Policies
5.1 Introduction

Both ADB and the PRC government have much attention in resettlement of Project
construction. There are series of laws, regulations, and policies on resettlement and
compensation issued, mainly including the following:

ADB Policies

    •   Involuntary Resettlement Policy, Asia Development Bank (ADB), Manila, 1995;
    •   Handbook on Resettlement: A Guide to Good Practice, ADB Manila,1998;
    •   Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;

Laws and Regulations of PRC

         •   Land Administration Law of the People’s Republic of China (effective as of
             August 28th, 2004)
         •   State Council Circular on the Decisions of Deepening Reform and
             Administrating Land Strictly (State Council [2004] No. 28, effective as of
             October 21st, 2004) (Ref. No.GF[2004]28)
         •   State Council Circular on Problems in Strengthening Land Regulation and
             Control (State Council [2006] No. 31).
         •   Provisions of Public Hearings on Land and Resources (MLR, effective as of
             May 1st, 2004)
         •   Guiding Opinions on Improving Compensation and Restoration System for
             Land Acquisition (No. 238 Decree and issued by Ministry of Land and
             Resources in 2004) (Ref. No.GTZF[2004]238)
         •   Pre-examination Management Methods of Land for Construction Project
             (Document 27 in 2004, MLR)
         •   Public Announcement Methods on Land Requisition (MLR, effective as of
             January 1st, 2002)
         •   Regulations on Land Administration of Hebei Province (effective as of May 27th,
             2005)
         •   Circular on implementation opinions of Deepening Reform and Administrating
             Land Strictly(Document 151 in 2004, Hebei Provincial Peoples’ Government)
             (JZ[2004]151)
         •   Regulations on Land Contracting Administration of Hebei Province
         •   Hebei Provincial Government Circular on Strengthening Land Acquisition and
             Establishing Basic Life Insurance System for Land-lost Farmers
         •   Hebei Provincial Government the “Circular on Enforcement of Sectional Prices
             of Land Acquisition” (Ji Administrative Doc. No. [2008]132),




                                            16
5.2 Compensation Principles for the Project

The principles of compensation and entitlement for this project are decided
according to the regulations and policies of Chinese government and the Asian
Development Bank (ADB), which aim at ensuring the access of the APs to
enough compensation and support, at least to ensure the restoration of their
living standard prior to the project. Refer to Table 5-3 for the resettlement
principles of the project.

                 Table 5-3: Resettlement Principles of the Project.
                                             Principles
  1     Involuntary resettlement should be avoided or minimized where feasible;
        Compensation and entitlements provided for the APs should be able to at least
  2
        maintain, or improve their “pre-project” standard of living;
        No matter whether they have legal entitlements will All APs be compensated and
  3
        assisted;
        Where land per capita after land acquisition is not sufficient to maintain livelihood,
  4     compensation by cash or through land replacement and other income-generating
        activities will provided for;
        All Aps will be adequately informed on eligibility, compensation mode and
  5     standards, livelihood and income restoration program, project timing, and will be
        involved in RP implementation;
        No land acquisition will take place unless replacement land or sufficient
  6
        compensation are given to APs;
        The EA and independent/ third party will monitor compensation and resettlement
  7
        operations;
        Vulnerable groups will receive special assistance or treatment to ensure then to
  8
        better off. APs should have the opportunities to benefit from the Project;
  9     RP should be combined with overall county planning;
  10    RP budget should be adequate and cover full aspects.


5.3 Compensation Eligibility Cut-off Date

Weichang City Government announced the eligibility cut-off date as 10ht April,
2010. After the date, the settlement in the affected areas, newly cultivated land,
newly built houses as well as any newly planted trees or newly added facilities of
the affected persons aimed at extra compensation are excluded from the range
of compensation and subsidy.




                                            17
 5.4 Compensation Standard

 5.4.1 Principles for Determination of Compensation Standard

 The compensation standard for lost property is based on the replacement
 principle as follows: (i) Compensation fees will be paid before land and property
 acquisition. (ii) Training and assistance should be provided to the APs so as to
 create more employment opportunities and maintain their living level. (iii)
 Compensation for crops, trees and ground-attached properties are paid
 according to their market prices. (iv) Project management should be
 strengthened to shorten construction period and reduce negative impacts, and
 (v) Compensation funds for resettlement subsidies will be paid to the affected
 labor force so that they can continue their existing job or develop other individual
 business after they get the subsidies.

 5.4.2 Methodology for Determination of Compensation Standard

 The basis of formulating the compensation rates are extensive consultations
 with relevant agencies, e.g., LAB, county/district government, and negotiations
 among IA, EA, affected townships, villages and representatives from potential
 APs. According to site survey made by TSECC, the RP preparation agency, and
 related departments, based on adequate consultation with WCCLAB and APs,
 the compensation rate for the Project has been determined in the following
 subsection.

 5.4.3 Collective-owned Land Acquisition

The compensation standard for land acquisition shall abide by the “Notice on
Enforcement of Sectional Prices of Land Acquisition by Hebei Provincial Government”
(Ji Administrative Doc. No. [2008]132), as well as stipulations in “Implementation
Method for Land Acquisition Compensation of Weichang Manchu & Mongolian
Autonomous County Heating Resource Plant Second-stage Project”. As stipulated in
the above document, the sectional land compensation price has been determined as
CNY 46,000/mu, totally CNY2,990,000.

The land acquisition involved in the Project, totally 65mu, is all collective-owned hilly
forestry land, and can be classified into 2 parts as the following:

The first part is 1 mu household plot allocated to the family of Liu Cheng, a villager of
Group 1, Huzi Village. The land compensation fund will be CNY46,000. The village
collective will reserve 20% of the fund, which is about CNY9,200, while the household
headed by Liu Cheng will obtain the rest 80%, roughly CNY36,800.The land
attachments include mainly poplar and pine trees, altogether about 450 plants. Based
on consultation and negotiation with the AP, the Project IA will pay a lump-sum
compensation of CNY 8, 931, which will be issued to Liucheng in full.


                                         18
The rest part is 64mu unutilized forestry land of the village collective, which has been
contracted to Sun Jin-rong, also villager of Group 1, Huzi Village, to plant trees in
1982. There are altogether 4,100 plantings by the end of April, 2010, including poplars
and pines. After consultation, the Project will pay CNY300,000 for the ground attached
plants to Sun Jin-rong, while the land compensation fund for the 64mu land, totally
CNY2,944,000, will be reserved by the village collective. Furthermore, because the
contract between the Sun Jin-rong and the village committee is still in its term of
validity, on the basis of full consultation, the village committee will allocate CNY50,000
from the CNY2,944,000 fund to Sun Jin-rong, as compensation for early
determination of the contract.

Considering the fact that the 64mu forestry land is unutilized forestry land reserved by
the village collective, and the reserved collective land belongs to all villagers of the
village. So the distribution method of the compensation fund is to divide the remainder
fund, totally CNY2,894,000, equally among the villagers in Huzi Village. According to
consultation among villagers, the detailed distribution method had been determined
as the following:

First, considering the fact that the land involved in permanent acquisition belong to
collective land of 1st Group of Huzi Village, 20% of the total sum, about CNY578,800,
will be divided among villagers of the 1st Group. The qualification of distribution was
determined as formally registered agricultural-status collective-land-owners by April
2010, altogether 43 HHs, 130 persons. The fund was divided evenly, about CNY4,452
for each person.

Secondly, 40% of the total sum, about CNY 1,157,600 will be divided among villagers
of the Huzi Village (including 1st Group villagers). The qualification of distribution was
determined as formally registered agricultural-status collective-land-owners by April
2010, altogether 107 HHs, 341 persons. The fund was divided evenly, about
CNY3,395 for each person.

Finally, the remainder 40% of the total sum, about CNY 1,157,600, will be reserved by
the village committee, mainly as special fund for villagers’ welfare, construction and
maintenance of collective infrastructures such as road, drainage, and lighting etc.
Each person in Huzi Village can obtain at least CNY 3,395 for land compensation.

As for villagers in the 1st Group of Huzi Village, due to the secondary distribution
chance for them, the land compensation for each person will be CNY4,452 plus
CNY3,395, totally CNY7,847.

For details of compensation fund calculation, please refer to Table 5-4.




                                          19
                            Table 5-4 Compensation Fund Calculation of Permanent Land Acquisition


                                                                    Compensation Fund for Land Acquisition
                                                                       Standard of      Amount of
No.          ITem                      APs                                                              Distributable Fund
                                                                      Compensation Compensation
                                                      Qty   Unit
                                                                          CNY/unit          CNY                CNY
                                    Liucheng,
        Household plot                                                                                            36800
1                                                      1     mu            46000             46000
      allocated to farmer
                                 Village collective                                                                9200
        Village collective       Village collective                                                             2894000
2                                                     64     mu            46000           2944000
      -owned forestry land         Sun Jin-rong                                                                   50000
3     Trees compensation             Liucheng         —     Trees            —                8931                 8931
4     Trees compensation           Sun Jin-rong       —     Trees            —              300000               300000
              Total                Huzi Village                                            3298931              3298931




                                                            20
(2) Resettlement Method


 5.4.4 Temporary Land Occupation Compensation

 The primary heating pipeline construction needs temporary land occupation of 67.75mu,
 which is all river shoal land, or motor/non-motor vehicle lane of state-owned roads, with
 the occupation period of 6 months. According to local stipulations in Weichang City, for
 municipal construction projects, there are no road excavation fees, traffic management
 fees, nor land occupation fees required. But, the implementation agency of the Project
 needs to restore the road to original standard. Therefore, there will be no temporary
 land occupation fee for this part listed in the Resettlement Budget. Upon the
 complementation of the pipeline network construction, the construction contractor will
 restore them according to their original scales and standards. This item of cost will be
 included in the project cost and implementation will be closely monitored.


 5.4.5 Other Compensation standard

Refer to Table 5-5 for other compensation rate of the project resettlement.

                  Table 5-5 Taxes & Fees Standard for Project Resettlement
No.           Item                Standard                    Basis              Recipient
                                                        Implementation
                                                                                 Land and
       New Construction                                Regulation of Land
 1                              CNY 6667/mu                                      Resources
        Land Use Fee                                  Administration Law for
                                                                                  Bureau
                                                        Hebei Province
          Forest Plantings
 2                              CNY 4000/mu                                    Forestry Bureau
          Reclamation Fee
         Land Acquisition
                             4% of the basic land
 3        Administration
                             acquisition expense
               Fee
        Reconnaissance,
                            0.2% of the basic land
 4    Design and Research
                             acquisition expense
               Fee
        Implementation      0.25% of the basic land
 5
       Management Fee        acquisition expense t
         Technical Training 0.5% of the basic land
 6
                 Fee          acquisition expense
             Internal
                            0.2% of the basic land
 7        Monitoring and
                              acquisition expense
          Evaluation Fee
             External
                            0.4% of the basic land
 8        Monitoring and
                              acquisition expense
          Evaluation Fee
                            5% of the sum of basic
          Contingencies
 9                           and subsidiary land
                              acquisition expense


 5.4.6 Adequacy of Compensation Standards

 The l a n d compensation rate for the Project has been determined on the base of
 extensive consultation and discussions with local stakeholders.

Although agricultural income still takes an important proportion in the total income, the
project land acquisition involves only hilly forestry land, with rather lower economic value,

                                               21
which has considerably small impact on livelihood of affected farmers.

Some of the villagers have utilized the resettlement compensation to run their business,
which has brought them higher income than farming. Therefore, the APs are satisfied with
the land acquisition and resettlement compensation policy. Some families have used the
compensatory payment in vegetable wholesale activities, or running small family-run stores.
Some families have bought taxi cars with the compensation payment and realized
employment. Some families have used the money to purchase private cars or other
consuming goods, which improved their life quality. And some families kept the money as
education and pension funds. Besides, the project will provide more 40 job opportunities
for which the affected villagers enjoy priority.

According to survey of the resettlement effect performed on the spot, the APs are all
satisfied with the compensation and resettlement, and no one raised complaints and
appeals. The resettlement project has achieved very good results.

The 6 Manchu APs enjoys the same distribution right of the compensation fund, which has
fully guaranteed the rights and interests of minorities.

To summarize, the compensation rate for the Project is adequate.

 5.5 Compensation Funds Disbursement and Timing

 WCCHC is responsible for the compensation funds disbursement. According to Article
 52 of Regulations on the Implementation of the Land Administration Law of the PRC,
 payment of various expenses for land requisition should be effected in full within 3
 months starting from the date of approval of the Resettlement Plan. The disbursement
 will abide with the agreement signed between IA and the affected parts. Figure 5-1
 showed the flow of compensation fund.



                                       WCCPMO (IA)

                                           WCCHC
                                            (EA)

                    Weichang Land Resource                        Governmental Tax
                     Administrative Bureau                       Administrative Dept.


       Affected Persons                      Land Owner


                      Figure 5-1 Flow Chart of Compensation Flow

The land acquisition for the 65mu forestry in the 1st Group of Huzi Village started in April,
2010.
The land was originally collectively-owned hilly forestry land. 1mu land is household plot
allocated to the family of Liu Cheng, a villager of Group 1, Huzi Village. The remained 64mu
land is unutilized forestry land of the village collective, which has been contracted to Sun
Jin-rong, also villager of Group 1, Huzi Village, to plant trees in 1982.

In December 2009, WCCHC has started project preparation investigation and consultation.

                                           22
The village cadres visited the affected households. On April 12th, 2010, organized by the
village committee, a villagers’ representative meeting was held. Altogether 16 representatives
attended the meeting, including Zhang De, Zhang Hai-li, Yang Guo-hua, Sun Jin-rong, Liu
Cheng, LiuZhen-he, Yan Chao and other villagers. On the meeting, all the representatives
agreed the land acquisition to support the and also discussed about the project.
compensation standard and distribution plan. On April 22nd, 2010, on the basis of full
investigation and participation of the villagers, Weichang County Land Resources
Administrative Bureau, WCCLAB signed a 3-sided agreement with the Huzi Village collective
and the 2 directly affected households, which has clarified the quantity and location of land
acquisition, and standard of compensation. On April 22nd 2010, the land compensation fund
from WCCHC was paid to the Weichang County Finance Payment Center, and transferred to
Huzi Village Committee. During April 2010 to June 2010, the committee has allocated the
land compensation fee to all the 341 APs, including 6 APs of the Manchu minority. The APs
are all satisfied with the compensation and resettlement. The affected village/group handed
out the land by April, 2010. The 6 Manchu villagers in Huzi Village enjoy the same distribution
right of the compensation fund, which has fully guaranteed the rights and interests of
minorities.

Thus the land acquisition of the 65mu collective-owned forestry land of Huzi Village has
finished in June 2010.

  5.6 Compensation Entitlement Matrix

The entitlement matrix is designed according to the relevant policies in this chapter. Refer to
Table 5-6.。

                              Table 5-6: Compensation Entitlement Matrix
                                                                                                            Policy / Rate
Type     of                               Entitled
              Impact Degree                                             Entitlements                        of
Loss                                      Persons
                                                                                                            Compensation
Permanent     The land acquisition
loss of       involves registered
land          land-owners of 107HHs,
(Already      341 persons in HUzi                                                                           Total
                                                      1. The village committee will keep 40% of the
finished      Village, including 2HHs, 5                                                                    Compensation
                                                      compensation. While the other 60% to be divided
Land          persons directly affected                                                                     Rate for Land
                                                      among villagers. The 2 directly affected HHs will
Acquisition   by the Project land                                                                           Acquisition:
                                                      get the trees compensation.
in May,       acquisition. Of all the         All                                                           CNY46000
                                                      2. In the process of the construction, laborers in
2008))        65mu land involved in       villagers                                                         /mu;
                                                      the affected households will be given the priority
              permanent acquisition,       of Huzi                                                          Trees
                                                      for taking part in the construction, working at the
              1mu is household plot        Village                                                          compensation
                                                      non-technical posts. When the project is
              allocated to the family of  (107 HH                                                           for Liu Cheng:
                                                      completed, they will be granted with five to ten
              Liu Cheng, a villager of    and 341                                                           CNY8971.
                                                      temporary posts. The qualified persons will be
              Group 1, Huzi Village.      persons)
                                                      employed for technical job such as technician and
              The remained 64mu is                                                                          Trees
                                                      operator in priority.
              unutilized forestry land of                                                                   compensation
                                                      3. WCCPMO will provide a special fund of
              the village collective,                                                                       for       Sun
                                                      CNY50,000 for technical training. The planned
              which has been                                                                                Jin-rong:
                                                      training person-time is 80.
              contracted to Sun                                                                             CNY300,000.
              Jin-rong, also villager of
              Group 1, Huzi Village, to
              plant trees in 1982.
              Temporary land
Temporary     occupation 67.75mu for                                                                        The IA is
land          primary heating pipeline        None    /                                                     responsible for
occupation    construction, all of which                                                                    the restoration.
              is river shoal area, motor

                                                          23
                                                                                                       Policy / Rate
Type    of                          Entitled
             Impact Degree                                        Entitlements                         of
Loss                                Persons
                                                                                                       Compensation
             or non-motor vehicle
             lanes of state-owned
             road.
                                               1. The percentage of women given employment
                                               priority should not be less than 30%.
                                               2. Women will have the priority in the free
                                    Women
                                               technical training. The total training person-time is
                                    in the
Women        None                              80, and women workers should not be less than
                                    age of
                                               40 person-times (about 50%).
                                    16~60
                                               3. Women will be assured of their access to the
                                               relevant information and the consultation of the
                                               resettlement.



 6      Income Restoration Plan
 6.1 Background

The overall objective of income restoration is to ensure that all APs losing their means of
livelihood (in this case their land) to the project are able to at least maintain their
pre-project levels of income and living standards.

The Project involves only permanent acquisition collective-owned farmland and temporary
occupation of state-owned shoaly area or motor/non-motor lanes. Although there is only slight
impact on local APs, to realize above purpose, series income restoration measure shall be
taken in the RP, so as to ensure the APs benefit from the Project.

Current laws and regulations provide flexibility for villages to determine how to use the land
compensation fee, with the condition that, directly or indirectly, it benefits the affected
farmers.

 6.2 Restoration Measures for Permanent Acquisition of Collective Land

According to the feasibility study, the project construction involves permanent land acquisition
of 89.2105mu, all collective-owned land of 1st Group, Qianjin Village, including 62.87mu of
farm land, and 26.34mu of river shoal land. The Project IA has finished land acquisition and
compensation for 62.87mu farmland in April 2008. The expense was listed in the project
investment. For details on payments, refer to Appendix 2.

The remained land acquisition involves 26.34mu of unutilized collective-owned land of 1st
Group, Qianjin Village. The land is river shoal land, and had once been used as piling yard of
the domestic rubbish generated from the urban area. Later the land was filled and covered by
the 1st Group of Qianjin Village. Now it is still not arable and has there is no crops.

Based on the opinion survey and consultation with the affected village committees, the
villager representatives, the slot of land is still under the re-cultivation stage, with no arable
conditions, and the villagers cannot benefit from the land. Therefore, the land acquisition
makes no impact on the livelihood of the villagers. When the village committee receives
the compensation fund, the money will mainly be invested in the Farmers’ Apartment
construction, with a small fraction to be used for infrastructure improvement, labor training,
and villagers’ welfare.


                                                  24
 6.2.1 Cash Compensation

The region involved in land acquisition is located close to the center of the urban area, with
more individual, private enterprises, and job opportunities. Part of middle-aged and young
labor force have engaged in business employment, transportation and other services.
Although agricultural income still takes an important proportion in the total income, the project
land acquisition involves only hilly forestry land, with rather lower economic value, which has
considerably small impact on livelihood of affected farmers.

The total compensation fund for land acquisition of the 65mu forestry land, altogether
CNY3,298,931 has been paid to Huzi Village by WCCHC. Based on consultation between
committee and villagers, 40% of the land compensation fund will be reserved in the village
group mainly as special fund for collective infrastructures maintenance, villagers’ welfare
and surplus labor transfer training, while the rest 60% has been divided among the
affected villagers. .

After land acquisition, the affected APs in the village has received a sum of land
compensation fund of at least CNY3,395. As for villagers in the 1st Group of Huzi Village, due
to the secondary distribution chance for them, the land compensation for each person will be
CNY4,452 plus CNY3,395, totally CNY7,847. The 2 directly-affected HHs in the resettlement,
besides their shares in group and village compensation, Liu Cheng has obtained CNY36,800
for household plot land compensation and CNY8,931 for trees compensation. Sun Jin-rong
has obtained CNY 350,000 for trees compensation. Some of the villagers have utilized the
resettlement compensation to run their business, which has brought them higher income than
farming.

Therefore, the APs are satisfied with the land acquisition and resettlement compensation
policy. Some families have used the compensatory payment in vegetable wholesale
activities, or running small family-run stores. Some families have bought taxi cars with the
compensation payment and realized employment. Some families have used the money to
purchase private cars or other consuming goods, which improved their life quality. And some
families kept the money as education and pension funds. Besides, the project will provide
more 40 job opportunities for which the affected villagers enjoy priority.

According to survey of the resettlement effect performed on the spot, the APs are all satisfied
with the compensation and resettlement, and no one raised complaints and appeals. The
resettlement project has achieved very good results.

 6.2.2 Affected Persons Training

To help the APs to change their traditional employment idea, set up correct sense of career
and master necessary working skills, WCCHC will arrange a special fund of CNY50,000 for
APs training. The job training will be carried out by WCCHC along with the women’ union,
labor and security bureau, and occupational training centre of Weichang County. It includes
pre-employment training and professional skill training. The pre-employment training mainly
consists of lectures on the state employment situation, employment policy, laborer rights and
interests safeguard and professional moral. The professional skill training will be held flexibly
according to the post requirements. It consists mainly of non-agricultural technical training
such as steel-wood furniture processing skill, cosmetology and hairdressing, catering industry
and so on. The training will promote skills of local people, improve their income structure, and
increase their income level. Refer to Table 6-1 for the training plan.




                                             25
                         Table 6-1 Technical Training Plan for APs
                                                                                      Funds
                                      Number of
     Time             Trainee                           Training Contents          Arrangement
                                     Participants
                                                                                      (CNY)
                    the affected
    2011.08                               20         pre-employment training          10,000
                    households
                    the affected                     professional skill training
    2011.12                               60                                          40,000
                    households                       (non-agricultural )

 6.2.3 Project Employment

The construction of this project will create certain temporary construction work chances which
include material transportation, earthwork project and food provision, etc. Laborers in the
affected households will enjoy the priority of taking part in the construction, working at the
non-technical posts so as to increase their income and improve their living standard.

When the project is finished, there will be 82 vacancies in the plant. Under equal conditions,
the households affected by the land acquisition will enjoy the priority of obtaining working
chances. After consultation with WCCHC, they have agreed that when the plant is built, they
will recruit from the affected households at lease 5~10 low skill workers who will be
responsible for the coal & ash transportation, landscaping protection, tidiness and security for
the plant. Additional qualified persons can be employed in priority for positions as technicians,
operators for pipeline maintenance or heating plant/stations operation.

 6.3 Women Rights

In the plan preparation stage, the investigation group organized the women villagers to
actively take part in the investigation of the project impacts and collected their thoughts
about the income restoration program. They approved construction of the project, thinking
that the construction of the public heating system is good for improving the environment,
and the land acquisition will have less impact on their life. They wish to get cash
compensation and training on clothes sewing skills, catering service and so on.

In the light of these women’s will, the affected women will be given priority in taking
technical training courses so that their economic status will not be impaired. Altogether the
training person-time will be 80, in which women laborers should not be less than 40
person-times (50%). The women-headed households among the indirectly affected
villagers, if any, will enjoy priority in employment and training. In addition, for those
non-skill jobs provided by the Project, no less than 30% of them will be provided to women
in the group.

 6.4 Restoration of Temporarily Occupied Land

According to the temporary land occupation plan of this project, the temporary land
occupation refers mainly to the land excavated for pipeline construction. According to the
temporary land occupation scheme, the main temporarily occupied land of the project is the
areas used for primary heating pipeline construction. The total temporarily occupied
state-owned land area is 67.75mu, all river shoal land or motor/non-motor vehicle lane of
state-owned roads. The proposed occupation period is 6 months. The pipeline construction
involves no demolition, and will bring very little impact on the livelihood of local households
and shops along the pipeline. There is no directly affected person of pipeline temporary land
occupation. There is no compensation for temporary land occupation of water distribution
pipeline construction. When the project is finished, the construction contractor will be
responsible for the restoration of the vehicle and no-vehicle lanes to their original scale and
standard. This cost will be included in the budget of the whole project.

                                               26
7      Institution Framework
7.1    Responsibility of Institutions

Weichang County Government has organized a Project Leading Group for Weichang
County Urban Area District Heating Project (Phase II). The leading group has made it clear
that Weichang County Project Management Office (WCCPMO) will work as the execution
agency (EA) and Weichang County Heating Company (WCHHC) as the implementation
agency (IA). The IA will be responsible for routine operation of the Project. Besides, the
implementation of resettlement will involve several other agencies to participate in the
whole course. The responsibilities of each agency are stated in the following Table 7-1.

                        Table 7-1     Responsibility of Institutions

Institutions                                  Responsibilities
               •   Preparing the RP and organizing the implementation of the RP
               •   Supervising the resettlement fund usage
               •   Coordinating and supervising the resettlement activities and progress
               •   Coordinating monitoring and evaluation/supervision activities, including
                   contracting an external monitor for the overall Project
 WCCPMO        •   Submitting progress report to the ADB
               •   Coordinating and dealing with conflicts and problems during project
                   implementation
               •   Preparing detailed income restoration plans
               •   Recruitment of external monitoring agency
               •   Engaging a consulting institution to assess the impact of the project
               •   Be responsible for social-economic surveys
               •   Applying for "the permission of land use " from Weichang County Land
                   Administration Bureau
               •   Applying for "House Demolition Permission"
    WCCHC      •   Managing the displacement of facilities in the city
               •   Scheduling the RP implementation
               •   Entrusting the Weichang County Land Administration Bureau to contract land
                   acquisition and displacement and pay resettlement funds in accordance with
                   the agreement
               •   Conducting monitoring and evaluation
               •   Carrying out the related laws and regulations relating to the management of
                   construction land use
               •   Participating in the review of the compensation rates and resettlement
                   schemes
               •   Dealing with the formalities of land acquisition
               •   Participating in the social-economic surveys
               •   Participating in the preparation of the RP and reviewing the RP
    WCCLAB     •   Issuing permission of land used for construction
               •   Directing, coordinating and supervising land acquisition and resettlement
                   activities
               •   Coordinating and dealing with the conflicts and problems in the process of land
                   acquisition and allocation
               •   Registering land acquisition and making announcements
               •   Organizing public participation and public hearings, if required
               •   Proceeding with resettlement and compensation disbursement
 Weichang      •   Revise red line of permanent land acquisition and temporary occupation
  County       •   Issuing the land use license based on spatial planning
 Planning
Department



                                             27
 Institutions                                     Responsibilities
                 •   Assisting in social economic survey
  Weichang       •   Assisting in the preparation of resettlement options and the RP
   County        •   Supervising CRCs/village committees on resettlement and the income
 Demolition &        restoration of APs.
 Resettlement
                 •   Reporting to the higher level institutions about the comments and suggestions
    Office
                     of affected people
                 •   Assisting in social economic survey
                 •   Assisting in the preparation of resettlement options and the RP
 District/Town   •   Supervising village committees on resettlement and income restoration of APs.
 Government      •   Reporting to the higher level institutions about the comments and suggestions
                     of affected people
                 •   Participating in the social economic survey
                 •   Participating in the preparation of the RP and resettlement scheme
                 •   Assisting in the public consultation and conducting information dissemination of
                     displacement policies
 Town/ Village •     Consulting on allocation of land compensation fee and payment of resettlement
  committees •       Organizing income-generating activities after land acquisition and restoring the
                     income of the APs.
                 •   Reporting to higher level authorities about grievances and suggestions of APs
                     a
                 •   Providing assistance to the households with special difficulties
                 •   Minimizing resettlement impacts through optimized design schemes
  Consulting
                 •   Proposing/Finalizing the impact scope of land acquisition and demolition
     and
                 •   Assisting EA/IA in RP preparation
  designing
                 •   Providing technical service in the aspects of collection and processing of
   institute
                     information and data
   External      •   Providing technical assistance in land acquisition and resettlement
  monitoring     •   Working as independent monitoring agency, supervising the implementation
   agency        •   of the RP, and reporting to the EA and the ADB



 7.2    Staffing of Institutions

 The IA will play a key role during the resettlement process. However, besides the IA, there
 will be some other related institutions unavoidably involved in the resettlement tasks. All
 these institutions and the staffing are presented in Table 7-2.

                                           :
                                  Table 7-2:Staffing of Resettlement Agency
              Institutions                Staffing      Gender            Qualifications
            WCCPMO (EA)                     1            male           College Education
             WCCHC (IA)                     2      1 male 1 female      College Education
Weichang County Land Administration          2      1 male 1 female     College Education
                Bureau
  WEichang County Planning Bureau             1              male              College Education
            Qianjin Village                   2              male              College education
         st
        1 Group Committees                    4         2 male 2 female     College and High School
      Legal consulting agency                 1              male              Technician Expert
            Design Institute                  1              male               Technical Expert
     External Monitoring Agency               2         1 male 1 female      Resettlement Expert

 7.3    Resettlement Management

 7.3.1 Institutional Framework


                                                28
                      Weichang County Project Management Office
                                   WCCPMO(EA)(


                                Weichang County Heating Company)
                                          WCCHC (IA)




            Engineering         Resettlement             Plan & Finance       Administrative
                                   Office                   Section
              Section                                                             Section




                Weichang County Land Resource Administrative Bureau
                                    -WCCLAB



                      Affected Communities                   Affected Persons


                            Figure 7-1 Resettlement Organization Structure


7.3.2 Training Plan

In the implementation process of the RP, it has been planned to organize training to key
staff members engaged in the Resettlement Plan. The training may include study visit to
domestic ADB projects, resettlement policy courses and project implementation skills
training. This training will be organized by ADB HPMO of Hebei Province in Shijiazhuang.
Refer to Table 7-2 for the training plan.

                            Table 7-2 Resettlement Staff Training Plan
                                                                                         Cost Estimate
No.         Training Content            Trainee              Time            Place
                                                                                            (RMB)
             Study visit to ADB     key resettlement
 1                                                         June 2011        in China         7,000
            Resettlement Project     staff members
               Resettlement
 2                                  resettlement staff     Oct. 2011      Shijiazhuang       3,000
          Implementation Training

7.4        Institutional Capacity Strengthening

A variety of measures will be taken to support capacity building and ensure effective
implementation and control of the RP. These include:

      •    The PMO should have sufficient funds and equipment to assure the efficiency of the
           work;
      •    A computer information system should be established to guarantee the smooth flow of

                                                  29
    information between the authority, agency and the lower levels;
•   The IA will set up a reporting system, to report to EA once a month;
•   Horizontal linking agencies, such as WCCLAB, Weichang County spatial planning
    department, etc, will gathered by WCCHC to hold coordination meetings once a
    quarter to enhance information exchange;
•   Issues put forward by the APs will be reported and disseminated through the
    resettlement offices at each level;
•   Issues which occur during construction will be reported by the site engineer, first to
    his/her organizational level and then, if necessary, upwards through each of the
    hierarchical levels;
•   Disciplinary measures will be introduced to constrain individuals from shifting
    responsibilities onto others and from delaying the resettlement process. People
    responsible for causing trouble will be punished, and those with good performance will
    be rewarded.




                                        30
8         Resettlement Budget
8.1       Resettlement Budget Calculation

All the expenditures concerning land acquisition and resettlement will be considered in the
Project budget. Calculated according to related laws and regulations, the resettlement cost
estimation totals CNY4,270,855, in which the basic resettlement expense including
permanent collective land acquisition and temporary land occupation cost is CNY3,298,931,
accounting for 77.24% of the total; subsidiary resettlement cost is CNY54,432, accounting
for 1.27% of the total; miscellaneous taxes and fees is CNY749,824, accounting for 17.56%
of the total; the contingencies is CNY167,668, accounting for 3.93% of the total. Refer to
Table 8-1 for the overall schedule of resettlement investment estimate.

                              Table 8-1 Project Resettlement Budget Estimation
                                                                    Village
Serial                                     Compensation        Collective-owned
                                                                                  State-Owned            Total
                  Item             Unit       Rate                                                                        Ratio
 No.                                                                       Cost          Ratio                    Cost
                                           (CNY/Unit)          Qty.               Qty.            Qty.
                                                                          (CNY)                                  (CNY)
  A                                                       Basic Resettlement Expense
         Collective-
         Collective-owned
                                                               65      2990000                     65        2990000     70.01%
         Farmland
         Contracted
A1.1     Forestry Land              mu      46000              64      2944000                     64        2944000     68.93%
         Compensation
         Household Plot Land
A1.2                                mu      46000              1        46000                      1             46000   1.08%
         Compensation
         Temporary Land
 A3      Occupation
                                    mu                         0           0      67.8     /      67.8            0      0.00%
A3.1     State-owned Land           mu        0                0           0      67.8     /      67.8            0      0.00%
         Infrastructures &
 A4                                                                     308931                               308931      7.23%
         Ground-Attachmen
         Ground-Attachments
         Contracted
A4.1     Forestry Land Trees       plant     450                         8931                                    8931    0.21%
         Compensation
         Household Plot Land
A4.2                               plant     4100                       300000                               300000      7.02%
         Trees Compensation
         Subtotal of A               /                                 3298931                               3298931     77.24%
  B      Subsidiary Resettlement Expense
         Reconnaissance,
 B1      Design and Research       CNY      0.20%       3298931          6598                                    6598    0.15%
         Fee
         Implementation
 B2      Management Fee
                                   CNY      0.25%       3298931          8247                                    8247    0.19%
 B3      Skill Training Fee        CNY      0.50%       3298931         16495                                    16495   0.39%
         Internal Monitoring
 B4      and Evaluation Fee
                                   CNY      0.20%       3298931          6598                                    6598    0.15%
         External Monitoring
 B5      and Evaluation Fee
                                   CNY      0.50%       3298931         16495                                    16495   0.39%
         Subtotal of B               /                                  54432                                    54432   1.27%
  C                                                     Miscellaneous Taxes and Fees
         Forest Plantings
 C1                                 mu       4000              65       11200                      65            11200   0.26%
         Reclamation Fee
         New       Construction
 C2      Land Use Fee
                                    mu       9333              65       606667                     65        606667      14.20%
         Land acquisition
 C3      administration fee
                                   CNY      4.00%       3298931         131957                   3298931     131957      3.09%
         Subtotal of C                                                  749824                               749824      17.56%
  D      Contingency


                                                          31
                                                                Village
Serial                                 Compensation        Collective-owned
                                                                              State-Owned           Total
                   Item         Unit      Rate                                                                       Ratio
 No.                                                                   Cost          Ratio                   Cost
                                       (CNY/Unit)          Qty.               Qty.           Qty.
                                                                      (CNY)                                 (CNY)
 D1      Contingency            CNY     5.00%       3353363         167668                              167668      3.93%
               Total                                               4270855                              4270855     100.00%
               Ratio                                               100.00%                              100.00%


8.2      Resettlement Financing and Disbursement Plan

The resettlement is financed by local counterpart investment. The IA will fill any fund
deficiency during implementation of resettlement.

The Project has been scheduled to start construction in August 2011, and finish in December
2012, with the total construction period of 12 months. To ensure production and living
conditions of the APs, the resettlement capital shall be allocated in one time before
resettlement implementation.

To ensure resettlement progress and AP’s benefit, the IA will pay all the compensation and
resettlement expense in time.


8.3 Resettlement Fund Management and Disbursement

The use of the land compensation fees and resettlement subsidies should be decided on
adequate consultation of APs’ opinions. The land compensation fee, resettlement subsidies,
and vulnerable aid fund, etc. should be paid directly to the affected persons. The
compensation for ground attachments and infrastructures should be paid to the concerned unit or
individual.

To ensure timely and full-sum availability of the fund, restoration of livelihood and income of
affected persons, WCCPMO and WCCWSC will adopt the following measures:

           •      All the fees concerning demolition, land acquisition and resettlement will be
                  considered in the project total budget.
           •      All the demolition and land compensation fee and resettlement subsidies should
                  be paid prior to land acquisition and house demolition so as to ensure all the
                  affected persons receive well-arranged resettlement.
           •      For smooth implementation of land acquisition and resettlement, financial and
                  supervisory institutions of all levels should be established to ensure all the funds
                  be disbursed in due time.
           •      The budget in the RP is the estimation of resettlement cost, which may increase
                  by certain amount due to actual changes of the project, practical affected
                  properties determined by compensation modification and inflation, etc.
                  Nonetheless, WCCPMO and WCCHC promise to pay the compensation and
                  cover any shortfall of funds that may occur. The contingencies should be taken
                  into account of budget which can be used and modified according to actual
                  conditions.




                                                      32
9      Implementation Schedule
9.1    Activities Prior to Resettlement

A. Determination of Resettlement Scope

The red line for demolition or land acquisition was determined according to the design layout
of the Project, so as to identify scope of resettlement. Related resettlement information was
publicized to the villages of resettlement area by means of meetings and resettlement notice.
The EA organized investigation and registration of the status of land, households,
subsidiaries, and land attached properties within the pegged area.

B. Field check of land acquisition and demolition

After receiving the land acquisition application report submitted by the IA, WCCLAB sent out
their appropriate staff to visit the affected site, check and register the conditions of land,
houses, attached properties, facilities, equipment etc, investigate and determine the nature
and ownership of infrastructures. All the related information were recorded in detail.

C. Compilation of budgeted land acquisition & resettlement plan

According to findings of investigation, WCCLAB and the IA prepared the compilation of the
land acquisition & resettlement plan with related budget based on relevant policies and
regulations, and then submit to Weichang County Government for review.

D. Contract signing

Under the coordination and guidance of WCCPMO, the EA, a lump sum land acquisition and
resettlement agreement was signed between WCCHC and WCCLAB.


9.2    Activities during Resettlement

The concerned LAB disbursed the land compensation fees to the communities/villagers
according to the signed agreement. Villages agreed by 2/3 villagers, to allocate some funds
directly to villagers and to use some of the funds to adjust income structure, increase
villagers’ income and provide social security.

The dismantling of facilities and utilities affected by the Project will be supervised by the EA.
The project IA, WCCHC, will disburse compensation fees to the proprietor, then the proprietor
will arrange displacement, restoration and reconstruction of these facilities and utilities.

Internal monitoring will be responsibility of the local IA, who will prepare and submit a
monitoring report to the EA every 6 months. External monitoring will be the responsibility of
the EA, who will contract this work to an independent consultant and will submit monitoring
reports every year to the ADB. The external monitoring targets will be focused on the AP’s
income restoration and maintenance of their livelihood after land acquisition and demolition.
In case the targets are not achieved, constraints should be identified and reported.

9.3    Activities after Resettlement


The external monitoring in the Project will start from the day of signing the agreement, which
is proposed to be June 2011 and last until the end of the year 2013 with the duration of 26


                                             33
months.

When resettlement work is completed, the responsible persons will submit the resettlement
completion report, which is to be reviewed and filed by the IA.




                                         34
10         Monitoring, Evaluation And Reporting
The PMO and IA 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 the project leading group, PMO and the IA to
ensure that organizations involved in implementation of land acquisition and resettlement
work abide by principles and schedules of the RP. The aim of internal monitoring is to
encourage the concerned organizations to carry out good performance while the external
monitoring and evaluation will be conducted by an independent agency regularly on the
activities of land acquisition, demolition and resettlement.

Usually monitoring on resettlement is conducted by covering data collection, analysis,
reporting, physical target and financial target, entitlement of APs. Resettlement monitoring
will focus on the following two aspects:

Socio-economic status comparison of APs and villages before and after project resettlement
and rehabilitation measures. Background socio-economic data collected during the AP
inventory and census will be used in this assessment.

10.1     Internal Monitoring

    Internal monitoring and evaluation will be undertaken by the WCCPMO, WCCLAB and
WCCHC, to assure the concerned departments abide by the RP. Internal monitoring and
evaluation aims at the well performance during the resettlement process.

10.1.1 Objectives

     The objectives of internal monitoring are:

     •   To assure the smooth communication channel between project managerial staff and
         affected people.
     •   To assure timely full disbursement of compensation.
     •   To assure timely settlement of appeals by affected people.
     •   To assure that the compensation disbursed is legally appropriate and that corruption
         is prevented.




                                             35
10.1.2 Major Tasks of Internal Monitoring

The EA will take major responsibility for Internal monitoring, covering the activities of APs,
entitlement, advice, grievance, problems, efficiency, timing, and budget, etc.

   •   Disbursement of entitlements to AP: compensation, cultivated land, and employment
       as specified in the RP.
   •   Social adaptability and cohesion: impacts with a gender perspective on APs and
       vulnerable groups, public participation, non-government’s role, AP’s attitudes and
       commons after resettlement, number of complaints and appeal procedures,
       implementation of preferential policies and income restoration measures, and
       improvements in women’s status in villages.
   •   Restoration of community facilities and services: timely restoration of community
       facilities and services and ensuring that mitigation measures to minimize impacts are
       implemented.
   •   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.
   •   Assistance to vulnerable groups.

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,
revisions of the resettlement schedule and disbursement of budget where required.

10.2   External Monitoring

Required by the ADB, WCCPMO will appoint an independent agency to carry out the external
monitoring and evaluation on resettlement. The independent agency should have a good
reputation, be well experienced and fully understand ADB’s policy and requirements on
resettlement. WCCPMO will sign a contract with this agency. The terms of reference (TOR)
for the independent evaluator are listed in Annex 1.

10.2.1 Objectives

The objectives of external monitoring and evaluation are as follows:

   •   Certify the level of APs’ livelihood restoration after land acquisition and resettlement.
   •   Identify the causes of any problems with the policies or implementation in case
       restoration is not fully made.
   •   Assess the performance, effect, and impacts of resettlement, including the response
       of APs, resettlement policies, and sustainability.
   •   Evaluate whether AP’s living conditions, livelihoods and incomes have been fully
       restored.

10.2.2 Methodology

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

   •   The investigation about production and AP’s living conditions will be made every year
       to measure the change since 2011. A sample trace investigation will be adopted.
       Irregular interview or site visits will be made to acquire sufficient data for evaluation.
   •   Group discussion and consultation with various groups of people from government,
       non-government, community and APs.
   •   Interview with key persons such as local CRC leaders and village heads regarding

                                             36
       resettlement implementation.
   •   Community public meetings to collect further information about resettlement.
   •   Purposeful direct observations regarding progress of replacement and visits to the
       individuals or groups.
   •   Informal investigation or interview by non-sampling means such as with the APs,
       villagers and staff engaged with resettlement.

10.2.3 Major Tasks

The independent monitoring agency will monitor and evaluate the resettlement relative with
the project and consolidate their findings and assessment into a report to ADB, EA and other
concerned departments. These reports can be helpful in the policy-making by these
concerned departments. The APs and NGO’s and communities will participate in the activities
of assessment.

    Monitoring and assessment will cover the following:

   •   Progress of land acquisition;
   •   Progress of resettlement of APs;
   •   The compensation fee being paid and used;
   •   Livelihood restoration of APs;
   •   The operation and efficiency of the resettlement institutions.


10.3   Reporting Requirements

Internal monitoring and assessment reports will be submitted quarterly by the project EA to
the IA while the external monitoring & evaluation (M&E) reports will be submitted every six
months by the external monitor. The external M&E reports will be continued once every six
months after the completion of the resettlement until the construction works are completed or
until the APs livelihood is fully rehabilitated, whichever the latter. These reports will also be
submitted to ADB every six months and uploaded onto the ADB website. Annual evaluation
reports will also be prepared by the external monitor once every 12 months until Project
completion.




                                             37
Annex 1. TOR for External Monitoring & Evaluation1

A      Objectives of External M&E

According to the requirements of ADB’s resettlement policy, external monitoring and
evaluation will be conducted during Weichang County Urban Area District Heating Project
(Phase II) resettlement implementation. The follow-up evaluation will be conducted during
the land acquisition and resettlement through checking the progress, fund and management
of land acquisition and resettlement and through analyzing and comparing the changes and
restoration of production and living standards of those affected persons. Apart from the
regular submission of report to ADB, WCCPMO and concerned department (twice a year in
the resettlement implementation), information and advice are also provided for every
department to make decision as a reference. Through the external monitoring and evaluation,
Asian Development Bank and departments in charge of the program get sufficient information
about whether the land acquisition and resettlement are implemented in time and up to the
requirements. Moreover, problems are pointed out and suggestions for the work improvement
are given.

B      Tasks of M&E

The external M&E of resettlement shall mainly fulfill the following tasks:
        M&E on land acquisition progress, including:
             Permanent land acquisition progress;
             Temporary land occupation progress.
        M&E on fund utilization progress, including:
                 Fund raising or allocation progress;
                 Compensation disbursement progress (planned and actual).
            APs living level M&E, including:
                APs living level prior to resettlement;
                APs living level after resettlement;
                Comparison & analysis of APs employment and living level before & after
            resettlement.
            Monitoring on the mechanisms and efficiency of grievance procedures;
            Monitoring on availability of compensation, rehabilitation and reconstruction of public
            facilities and progress of construction;
            AP’s participation in the processes of preparation of RP, land acquisition and resettlement
            and income restoration;
            Collection of monitoring data and establishment of a data file;
            Comparison & Analysis;
            Report Submission.

C      Technical Procedures

The external M&E of the Project shall follow the procedures stated below:

Prepare RP evaluation outline; prepare questions and tables for investigation; prepare the
scheme of random sampling; base investigation; set up information management system;
supervise survey; establish data files; compare analysis and make assessment; prepare
monitoring report; check the completion of monitoring; draw conclusions.

D      External M&E Agency



1
    This is a standard TOR adopted for the whole project.

                                                      38
The external monitoring and evaluation will be undertaken by an external monitoring
agency authorized by WCCPMO and acceptable to the ADB.

E   Organizations and Responsibilities

        WCCPMO will entrust the external monitoring agency with the specific investigation,
        data collection, calculation and analysis of monitoring and evaluation, as well as the
        examination of their results.
        The external monitoring agency will set up the resettlement M&E group of the
        Weichang County Urban Area District Heating Project (Phase II), which will be
        responsible for M&E of project resettlement, formulation of M&E outline,
        establishment of monitoring sites, field survey and in-door analysis of monitoring, as
        well as preparation of resettlement M&E report, according to ADB Involuntary
        Resettlement Policy.
        WCCPMO shall provide assistance to the external M&E agency, particularly in the
        aspects of field survey, staffing and logistics.

F   M&E Methodology

        The monitoring and evaluation adopts a combined method of field investigation,
        calculation & analysis, and comprehensive assessment by experts.
        The investigation is to be conducted in the way of a combination of the key parts
        with the whole project. There should be a overall investigation of the resettlement
        implementation progress, funds, institutions and management. And a sample
        investigation should be carried out among affected households.
        The sample investigation adopts random sampling and other methods to make
        follow-up investigation for the typical sampling households in resettlement project.
        The overall investigation adopts the forms of table investigation, forum discussion,
        inquiring of documents and archives.
        Photos, audio and video records and objects should be collected apart from written
        materials.

G   Report of M&E

The external monitoring agency should submit a resettlement monitoring report every six
months, and an annual resettlement evaluation report to WCCPMO and ADB.

                  Contract an independent evaluator, prepare the working outline; prepare
                  monitoring plan such as outline of survey, tables, establishment of
    June 2011
                  monitoring system, define assignment, and selection of monitoring
                  samples;
    June 2011      Conduct baseline and first survey, submit monitoring report No.1;
    Dec.2011       Conduct second survey, submit monitoring report No.2;
    Dec.2012       Conduct third survey, submit evaluation report No.1;
    Dec.2013       Conduct fourth survey, submit evaluation report No.2;




                                           39
Annex 2       Investigation Sheet for Land Acquisition Compensation Distribution
                                        Per Capita                    Trees     Total                          Life affected            Income affected         Satisfied        Any other
                                                        HH Land                          Received your
                                          Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.        HH ID        Pop.   Group                  Compensation                       compensation?                                                                                          Remarks
                                       Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                      Fund(CNY)
                                                          (   )
                                         (CNY)
                                             )                       (CNY)
                                                                         )     (CNY)
                                                                                   )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
1        Liu Cheng       2       1         7847          15694        45731     61425      √             √                          √                          √                         √
2       Sun Jin-rong     3       1         7847          23541       350000    373541      √             √                          √                          √                         √
3     Duan Fu-sheng      4       1         7847          31388          0       31388      √                         √                         √               √                         √
4      Duan Fu-xiang     4       1         7847          31388          0       31388      √                         √                         √               √                         √
5      Duan Qing-fu      4       1         7847          31388          0       31388      √                         √                         √               √                         √
6     Duan Qing-shan     5       1         7847          39235          0       39235      √                         √                         √               √                         √
7      Duan qing-yu      2       1         7847          15694          0       15694      √                         √                         √               √                         √
8      Feng Yu-rong      2       1         7847          15694          0       15694      √                         √                         √               √                         √
9        Jin Yu-qin      1       1         7847           7847          0       7847       √                         √                         √               √                         √
10       Li Cheng        2       1         7847          15694          0       15694      √                         √                         √               √                         √
11      Li Hai-chao      4       1         7847          31388          0       31388      √                         √                         √               √                         √
12     Li Sheng-rong     1       1         7847           7847          0       7847       √                         √                         √               √                         √
13       Li Yan-jun      2       1         7847          15694          0       15694      √                         √                         √               √                         √
14          Li Yi        5       1         7847          39235          0       39235      √                         √                         √               √                         √
15      Li Zhong-lin     2       1         7847          15694          0       15694      √                         √                         √               √                         √
16     Li Zhong-xue      5       1         7847          39235          0       39235      √                         √                         √               √                         √
17     Liu Feng-ping     5       1         7847          39235          0       39235      √                         √                         √               √                         √
18       Liu Su-lin      4       1         7847          31388          0       31388      √                         √                         √               √                         √
19    Meng Xian-zhong    3       1         7847          23541          0       23541      √                         √                         √               √                         √
20    Meng Zhao-xiang    2       1         7847          15694          0       15694      √                         √                         √               √                         √




                                                                                  40
                                       Per Capita                    Trees     Total                          Life affected          Income affected           Satisfied        Any other
                                                       HH Land                          Received your
                                         Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.       HH ID        Pop.   Group                  Compensation                       compensation?                                                                                          Remarks
                                      Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                     Fund(CNY)
                                                         (   )
                                        (CNY)
                                            )                       (CNY)
                                                                        )     (CNY)
                                                                                  )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
21      Sun Bao-li      1       1         7847           7847          0       7847       √                         √                         √               √                         √
22     Sun Bao-qin      1       1         7847           7847          0       7847       √                         √                         √               √                         √
23    Sun Bao-shan      3       1         7847          23541          0       23541      √                         √                         √               √                         √
24       Sun Hao        3       1         7847          23541          0       23541      √                         √                         √               √                         √
25     Yan Bao-cai      5       1         7847          39235          0       39235      √                         √                         √               √                         √
26     Yan Bao-lin      3       1         7847          23541          0       23541      √                         √                         √               √                         √
27    Yan Bao-xiang     3       1         7847          23541          0       23541      √                         √                         √               √                         √
28      Yan Chao        3       1         7847          23541          0       23541      √                         √                         √               √                         √
29     Yan De-you       2       1         7847          15694          0       15694      √                         √                         √               √                         √
30     Yan Fu-ping      3       1         7847          23541          0       23541      √                         √                         √               √                         √
31        Yan Li        3       1         7847          23541          0       23541      √                         √                         √               √                         √
32      Yan Liang       2       1         7847          15694          0       15694      √                         √                         √               √                         √
33      Yan Zhong       4       1         7847          31388          0       31388      √                         √                         √               √                         √
34     Yin Gui-you      6       1         7847          47082          0       47082      √                         √                         √               √                         √
35      Zhang De        5       1         7847          39235          0       39235      √                         √                         √               √                         √
36       Zhang Li       4       1         7847          31388          0       31388      √                         √                         √               √                         √
37      Zhang Lin       2       1         7847          15694          0       15694      √                         √                         √               √                         √
38     Zhang Xiang      2       1         7847          15694          0       15694      √                         √                         √               √                         √
39    Zhang Zhen-bo     2       1         7847          15694          0       15694      √                         √                         √               √                         √
40    Zhang Zhen-jie    4       1         7847          31388          0       31388      √                         √                         √               √                         √
41    Zhang Zhen-jun    4       1         7847          31388          0       31388      √                         √                         √               √                         √




                                                                                 41
                                        Per Capita                    Trees     Total                          Life affected          Income affected           Satisfied        Any other
                                                        HH Land                          Received your
                                          Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.       HH ID         Pop.   Group                  Compensation                       compensation?                                                                                          Remarks
                                       Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                      Fund(CNY)
                                                          (   )
                                         (CNY)
                                             )                       (CNY)
                                                                         )     (CNY)
                                                                                   )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
42    Zhang Zhen-min     1       1         7847           7847          0       7847       √                         √                         √               √                         √
43    Zhang Zhen-ming    2       1         7847          15694          0       15694      √                         √                         √               √                         √
44     Bao De-quan       4       2         3395          13579          0       13579      √                         √                         √               √                         √
45    Bao Quan-sheng     4       2         3395          13579          0       13579      √                         √                         √               √                         √
46       Gao Jun         4       2         3395          13579          0       13579      √                         √                         √               √                         √
47      Gao Shu-lin      4       2         3395          13579          0       13579      √                         √                         √               √                         √
48      Guo Rui-hua      4       2         3395          13579          0       13579      √                         √                         √               √                         √
49     Huang Guang       2       2         3395           6789          0       6789       √                         √                         √               √                         √
50       Huang Jie       5       2         3395          16974          0       16974      √                         √                         √               √                         √
51      Huang Jun        4       2         3395          13579          0       13579      √                         √                         √               √                         √
52       Huang Li        3       2         3395          10184          0       10184      √                         √                         √               √                         √
53    Huang Shu-juan     2       2         3395           6789          0       6789       √                         √                         √               √                         √
54      Huang Xue        2       2         3395           6789          0       6789       √                         √                         √               √                         √
55    Huang Zhen-lin     2       2         3395           6789          0       6789       √                         √                         √               √                         √
56     Huo Rui-chen      4       2         3395          13579          0       13579      √                         √                         √               √                         √
57     Huo Rui-feng      4       2         3395          13579          0       13579      √                         √                         √               √                         √
58      Huo Rui-min      4       2         3395          13579          0       13579      √                         √                         √               √                         √
59     Huo Rui-qing      2       2         3395           6789          0       6789       √                         √                         √               √                         √
60      Huo Rui-wen      2       2         3395           6789          0       6789       √                         √                         √               √                         √
61    Huo Yong-wang      5       2         3395          16974          0       16974      √                         √                         √               √                         √
62      Li Shu-fang      1       2         3395           3395          0       3395       √                         √                         √               √                         √




                                                                                  42
                                      Per Capita                    Trees     Total                          Life affected          Income affected           Satisfied        Any other
                                                      HH Land                          Received your
                                        Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.      HH ID        Pop.   Group                  Compensation                       compensation?                                                                                          Remarks
                                     Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                    Fund(CNY)
                                                        (   )
                                       (CNY)
                                           )                       (CNY)
                                                                       )     (CNY)
                                                                                 )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
63     Liu Gui-lan     1       2         3395           3395          0       3395       √                         √                         √               √                         √
64     Liu Shu-fen     1       2         3395           3395          0       3395       √                         √                         √               √                         √
65    Liu Yan-feng     1       2         3395           3395          0       3395       √                         √                         √               √                         √
66      Liu Yu-fen     2       2         3395           6789          0       6789       √                         √                         √               √                         √
67    Liu Zheng-hai    5       2         3395          16974          0       16974      √                         √                         √               √                         √
68    Liu Zheng-he     5       2         3395          16974          0       16974      √                         √                         √               √                         √
69      Tong Jun       3       2         3395          10184          0       10184      √                         √                         √               √                         √
70       Tong Li       4       2         3395          13579          0       13579      √                         √                         √               √                         √
71      Tong Xue       5       2         3395          16974          0       16974      √                         √                         √               √                         √
72       Tong Yi       6       2         3395          20368          0       20368      √                         √                         √               √                         √
73      Tong Zhi       4       2         3395          13579          0       13579      √                         √                         √               √                         √
74    Wang Li-ming     5       2         3395          16974          0       16974      √                         √                         √               √                         √
75    Xue Lian-shan    1       2         3395           3395          0       3395       √                         √                         √               √                         √
76     Xue Lian-fu     4       2         3395          13579          0       13579      √                         √                         √               √                         √
77     Xue Xiang       2       2         3395           6789          0       6789       √                         √                         √               √                         √
78     Yang Fang       5       2         3395          16974          0       16974      √                         √                         √               √                         √
79    Yang Yong-li     2       2         3395           6789          0       6789       √                         √                         √               √                         √
80      Yin Li-wu      4       2         3395          13579          0       13579      √                         √                         √               √                         √
81      Yu Yan-lin     4       2         3395          13579          0       13579      √                         √                         √               √                         √
82     Yu Zhen-cai     4       2         3395          13579          0       13579      √                         √                         √               √                         √
83     Yu Zhen-fa      2       2         3395           6789          0       6789       √                         √                         √               √                         √




                                                                                43
                                       Per Capita                    Trees     Total                          Life affected          Income affected           Satisfied        Any other
                                                       HH Land                          Received your
                                         Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.       HH ID        Pop.   Group                  Compensation                       compensation?                                                                                          Remarks
                                      Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                     Fund(CNY)
                                                         (   )
                                        (CNY)
                                            )                       (CNY)
                                                                        )     (CNY)
                                                                                  )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
84    Yuan Zhi-guang    7       2         3395          23763          0       23763      √                         √                         √               √                         √
85    Yuan Zhi-xiang    6       2         3395          20368          0       20368      √                         √                         √               √                         √
85      Yuan Zhi-yi     4       2         3395          13579          0       13579      √                         √                         √               √                         √
85    Zhang Bao-shan    4       2         3395          13579          0       13579      √                         √                         √               √                         √
85     Zhang Xian-li    2       2         3395           6789          0       6789       √                         √                         √               √                         √
85     Zhang Xian-yi    1       2         3395           3395          0       3395       √                         √                         √               √                         √
85     Zhu Jin-xiang    5       2         3395          16974          0       16974      √                         √                         √               √                         √
85      Jiang Jun       3       3         3395          10184          0       10184      √                         √                         √               √                         √
85      Li Jin-hua      4       3         3395          13579          0       13579      √                         √                         √               √                         √
85        Liu Xi        3       3         3395          10184          0       10184      √                         √                         √               √                         √
85      Li Zeng-kai     1       3         3395           3395          0       3395       √                         √                         √               √                         √
85    Yang Guo-qiang    3       3         3395          10184          0       10184      √                         √                         √               √                         √
85    Jiang Wan-shu     3       3         3395          10184          0       10184      √                         √                         √               √                         √
85    Wang Yong-tian    2       3         3395           6789          0       6789       √                         √                         √               √                         √
85    Jiang Wan-ming    4       3         3395          13579          0       13579      √                         √                         √               √                         √
85       Yang De        3       3         3395          10184          0       10184      √                         √                         √               √                         √
85    Yang Guo-hua      5       3         3395          16974          0       16974      √                         √                         √               √                         √
85    Yang Guo-xiang    3       3         3395          10184          0       10184      √                         √                         √               √                         √
85       Jiang He       4       3         3395          13579          0       13579      √                         √                         √               √                         √
85    Jiang Wan-min     4       3         3395          13579          0       13579      √                         √                         √               √                         √
85     Leng Su-zhi      1       3         3395           3395          0       3395       √                         √                         √               √                         √




                                                                                 44
                                            Per Capita                    Trees     Total                          Life affected          Income affected           Satisfied        Any other
                                                            HH Land                          Received your
                                              Land                       Compen-   Compen-                           by land                    by land                 with        complains on
No.         HH ID         Pop.   Group                    Compensation                       compensation?                                                                                          Remarks
                                           Compensation                   sation    sation                         acquisition?               acquisition?        compensation?     resettlement?
                                                          Fund(CNY)
                                                              (   )
                                             (CNY)
                                                 )                       (CNY)
                                                                             )     (CNY)
                                                                                       )     Yes□    No □    Yes     Scarcely      No   Yes     Scarcely     No   Yes          No   Yes     No
85         Sun Lin         3       3           3395          10184          0       10184      √                         √                         √               √                         √
85      Jiang Ming-yue     2       3           3395           6789          0       6789       √                         √                                         √                         √
85        Jiang Quan       2       3           3395           6789          0       6789       √                         √                         √               √                         √
 Sub-total for Villager
                          341                                                      2132131
      compensation
  Village Committee               Huzi
                          341                                                      1166800     √             √                                                     √                         √
      Reservation                Village
         Total                                                                     3298931




                                                                                      45
Annex 3

     Redundant Staff Resettlement Plan for SSB Closedown


According to survey on current conditions of heating load in the urban area of
Weichang County, the present heating area covers most of the urban area. The
existing civil residential houses and enterprises within the scope of the Stage II
Heating Project totals 550,000m2. The heating service is provided by the heating
system distribution network, with more than 60 small-scale boilers (SSB) as the
heating sources.

With the construction of the new heating plant and exchange stations in the Phase II
Heating Project, the urban area of Weichang County will completely realize
concentrated heating. There will be 60 small-scale boilers to be closed down, which
will affect 78 employees, all males. The heating service trade has obvious seasonal
character. The annual heating period is 150 days, about 5 months. Therefore, the
employment also has obvious seasonal character. Of all the 78 affected staff, only 35
person are regular full employees of the Heating Company. While the other 43 person
are temporary workers in different units, who work as stokers in heating seasons, and
as cleaning or security staff in the estate management department of the original units.
They are also employed by the heating company for the whole year. Table 5 shows
the situations of the affected staff, including 35 regular employees with the average
monthly salary of CNY2,000, and 43 seasonal stokers, with the average monthly
wages of CNY1,200.

      Table 5 Number of Affected Staff by Closedown Small-Scale Boilers
                                                                     Affected Staff
                                     Number of Small-scale
         Name of Project                                      Regular     Seasonal
                                     Boilers to Close-down                            Total
                                                             Employee     Workers
Weichang County Urban Area
District Heating Project (Phase               60                35           43        78
II) of Chengde Municipality

                   Table 6 Age Distribution of Affected Staff
   Gender           Below 35              -
                                        35-50            above 50            Total
    Male               26                 43                9                 78

The Project Execution Unit, Weichang County Heating Company, has worked out
special re-employment plan of the affected workers after closedown of small-scale
boilers. According to the plan, all the seasonal stokers, altogether 43 persons, will be
allocated to estate management department in various units of the Heating Company,
engaged in full-time job such as security, cleaning, piping and electrical facilities

                                         46
repairing, etc. As for the 35 regular employees, 28 will be allocated to the 7 new
exchange stations, and the other 7 persons will be allocated to the heating plant.
Table 3 shows the details for target of re-employment.

Table 7     Resettlement Measures for Re-employment of Affected Staff
                                                 Number of Staff          Salary
          Target of Resettlement
                                                   Re-settled          (CNY/month)
   Estate Management Department of
                                                        43                 1200
              original unit
     13 heating exchange stations                       28                 2000
        Heating Resource Plant                          7                  2000
                  Total                                 78

To summarize, the closedown of the 60 small-scale boilers caused by the Project
construction will not bring any adverse impact on the present employed workers. The
Project Execution Agency will make more effort to prepare the execution plan, the
safety measures and environmental protection measures, etc. for dismantling of the
small-scale boilers, so as to ensure staff safety, and reduce adverse impact on local
society and environment. Besides, related local authorities will be in charge of
resettlement and professional training, to help the affected workers adapt themselves
to the new circumstance and realize re-employment.




                                       47