Social Safeguard Systems Assessment

Social Safeguard Systems Assessment Project Number: 50201 November 2016 PRC: Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei

ABBREVIATIONS ADB Asian Development Bank ECS elderly care services HBCS home-based and community-based service PRC People s Republic of China PPP public-private partnership PSA poverty and social analysis YCAB Yichang Civil Affairs Bureau YMG Yichang Municipal Government

Table of Contents I. Introduction 1 II. Program Sites 3 III. Legal Status of Land and Buildings Allocated to the Program 5 IV. Legal Framework for Involuntary Resettlement 9 V. Safeguard Policy Principles Triggered 10 VI. Indigenous Peoples (Ethnic Minorities) in Yichang City 16 VII. Legal Framework for Ethnic Minorities 17 VIII. Application of the Legal Framework to the Program 18 IX. Requirements of the Ethnic Minority Elders 19 X. Indigenous Peoples Safeguard Policy Principles Triggered 21 XI. Assessment of Indigenous Peoples Inclusiveness and Program Design 23

I. Introduction 1. This social safeguard system assessment (SSSA) is prepared for the proposed Results-Based Loan for the Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang City in Hubei Province (the program). 2. The program s impact will be socially inclusive delivery of social services using PPPs. The outcome of the program is quality ECS using PPPs by local governments delivered. The program has two outputs: (i) Local government capacity to design, procure manage, and deliver effective services through ECS PPPs developed. This output includes capacity building to systematically address the challenges faced by local governments to optimize PPP design and implementation within the national regulatory framework. This will help manage the risk of using PPPs to introduce advanced elderly care concepts, ensuring that the local government has PPP systems in place to (a) introduce innovative and elderly and environmentally sustainable design features in the ECS facilities; (b) develop key performance indicators that take account of international ECS standards and are compatible with national guidelines; (c) develop the PPP structure and financing model, including sustainability and social inclusion strategy; (d) provide transaction support to design and procure the PPP concession contracts with ECS service providers (PPP contracts); (e) perform integrity, financial viability and safeguards due diligence of relevant key stakeholders; (f) develop and deliver a PPP training plan for relevant YMG staff; (g) develop and implement PPP contracts and program monitoring systems in the delivery of services; and (h) disseminate lessons from ECS PPP implementation. (ii) A socially inclusive PPP demonstration program for the ECS sector in Yichang successfully implemented: Financing will be provided to enable YMG to meet agreed key performance indicators and output targets for well-designed PPPs at four integrated ECS facilities (ECS facilities) incorporating inclusive and best design features. Given the risks associated with introducing a more complex PPP in a third-tier city and to attract service providers rather than developers, the government will provide the land and undertake basic construction of the ECS facilities with appropriate design parameters, and the PPP contract(s) with be executed with the private sector to fully equip, operate and maintain the ECS facilities. The program will support YMG to meet care needs of the majority of its elders which comprise the lower-middle and the middle income range of pensioners and are the principal target beneficiaries of this program. The facilities will include residential, medical, and non-medical services and provide outreach services to support community- and home-based care. Community- and home-based care provisions will be included within the PPP contracts. The services to be

provided by the concessionaires to residents and the local community of elderly will cover different levels of care needs (from mildly to fully dependent elderly) and will include, but not be limited to the following: nursing care, skilled cognitive care, day care, social counseling, recreational activities and support for activities of daily living such as walking, bathing, dressing, toileting/incontinence, brushing teeth and eating. Home-based care will include a range of services such as housekeeping, shopping support, preparation of meals, routine medical check-ups, and physiotherapy, among others. Every reasonable effort will be made during the PPP procurement process to encourage innovative approaches (such as telemedicine and multi-skilling of care providers) to ECS provision. 2. The SSSA objectives are to: (i) describe the program sites and their current status; (ii) examine whether the program will generate any adverse impacts on the people who live in the program areas; (iii) check whether the PRC s social regulatory systems is capable of managing the social risks identified; (iii) verify whether any ADB s social safeguard policy principles are triggered, and if triggered, how they will be addressed, and (iv) what specific program actions are in place to facilitate program benefits are shared by all groups of people who live in Yichang City. 2

II. Program Sites 3. The program will have 4 sites in Xiling District of Yichang City. The sites are: a. Yichang Art School site at the intersection of Xinghuo Road and Qixiangtai Road: b. Yichang Business School site on Desheng Street c. Gezhouba Tourism School site on YemingzhuJiawan Road d. Xiling Branch of Yichang Municipal Public Security Bureau located next to the Yichang Art School 4. Table 1 summarizes the land area of each site. It also indicates when the land was obtained from Yichang Municipality Government (YMG) to establish the institutions on the sites. Table 1: Land Areas of the 4 Sites Number Program Sites Area The year land was allocated by YMG 1 Gezhouba Tourism School 59,536.11 89.3 2008 2 Yichang Business School 9,360.03 14.04 1984 3 Yichang Art School 1,672.10 2.51 1993 4 Xiling Branch, Yichang Municipal Public Security Bureau M 2 Mu 1,543.7 2.32 1995 Total 72,111.94 108.17 5. Table 2 describes the legal status of the buildings at each site, its area, and the quality of the buildings. Table 2: Existing Buildings at the 4 Sites Sites Gezhouba Tourism School Yichang Business School Xiling Branch, Yichang Municipal Public No of Certificate of House Ownership Housing area(m 2 ) Structure YSFCZ 1296 124.86 Brick concrete YSFCZ 11298 805.29 Brick concrete YSFCZ 11293 5,399.24 Brick concrete YSFCZ 11299 95.49 Brick concrete Not available 4,105.00 Brick concrete Not available 349.20 Brick concrete YSFCZ 23909 3,939.56 Brick concrete YSFCZ 16917 1,656.00 Brick concrete YSFCZ 16915 1,522.02 Brick concrete Not available 814.48 Brick concrete Not available 280.00 Brick concrete YSFCZ 0058781 121.60 Brick concrete Not available 2,485.00 Brick concrete 3

Sites Security Bureau Yichang Art School No of Certificate of House Ownership Housing area(m 2 ) Structure YSFCZ-XLZ 0018835 4,358.81 Brick concrete YSFCZ-XLZ 0018838 261.17 Brick concrete YSFCZ-XLZ 0018835 468.06 Brick concrete Total 26,785.78 6. The 4 sites are located in a consolidated urban area of Xiling District of YMG. Currently, the buildings located at the sites are not in operation and are lying vacant. Figure 1 shows the location of the 4 program sites. 7. In March 2011, YMG established the Three Gorges Secondary Specialized School in Yichang Vocational Education Park. The Gezhouba Tourism School, the Yichang Business School, and the Yichang Art School together with 2 more schools were relocated to this new site. YMG allocated funds and land to build the new campus at Three Gorges Secondary Specialized School to accommodate the 5 schools. The Xiling Branch of Yichang Municipal Public Security Bureau was established in 1995 and was relocated in 2013. All the land and buildings of the 5 schools and the public security bureau at their old sites belong to YMG. Figure 1. Location of the Four Project Sites 8. The total area of 108.17 mu (72,111.94 m 2 ) of the state-owned land at the 4 sites are reserved by YMG for the program. The program will not acquire any additional rural collective land or urban land for its facilities. It will also not acquire or demolish any residential buildings. The program will have land transactions which are limited to state-owned land granting/transfer/allocation processes which will have no impact on any person or household or community. As a result, there will be no APs who will lose land or access to land or income sources or livelihoods because of the program. Therefore, the program activities will not trigger ADB s involuntary resettlement safeguard policy requirements. 4

III. Legal Status of Land and Buildings Allocated to the Program 9. Gezhouba Tourism School was established in 2009 close to the YemingzhuJiawan Road of Xiling District. Some of its buildings will be retained and remodeled for the program. A few buildings will be demolished (Figure 2). The program will build new buildings and ancillary facilities at the site. In 2008, YMG allocated state-owned to the school through free land allocation scheme. Based on the Certificate of State-owned Land Using Right (Yishiguoyong (2011) No.020103395-1), the total land area is 89.30 mu (59,536.11m 2 ) (Figure 3). Figure 2. The old sites of Gezhouba Tourism School Entrance to tourism school site Vacated building on site School building close-up 5

Figure 3. Certificate of State-owned Land Using Right 10. The school moved to the new site of Three Gorges Secondary Specialized School in 2014. The land of the old school site is now kept as vacant land after re-registering the state-owned land at the Yichang Land Reservation Center of Yichang Land Resource Bureau. 11. Yichang Business School was established in 1985 at Desheng Street in Xiling District. Some buildings will be retained and remodeled, or demolished. New buildings and ancillary facilities will be constructed. YMG in 1984 provided state-owned land to the school through free land allocation scheme. The total allocated land area is 14.04 mu (9,360.03 m 2 ) as per the Certificate of State-owned Land Using Right, issued in 2011 (Yishiguoyong (2011) No.080403147-3). Figure 4 shows the old sites of the school, and figure 5 shows the Certificate of State-owned Land Using Right. Figure 4. The Old sites of the Yichang Business School Entrance to business school site Vacated school building 6

Vacated building on site Figure 5. Certificate of State-owned Land Using 12. The school moved to the new site of Three Gorges Secondary Specialized School in 2014. The land and buildings at the old school site reverted to YMG. The land of the old school site was reregistered in 2011 at the Yichang land Reservation Center of Yichang Land Resource Bureau. 13. Yichang Art School was established in 1998 at Xinghuo Road in Xiling District. The school obtained state-owned land from YMG through free land allocation in 1993. The total allocated land area is 2.51 mu (1,672.10 m 2 ) according to the Certificate of State-land Using Right issued in 1993 (Yishiguoyong (1993) No.00057). Figure 6 shows the old sites of the school and figure 7shows the Certificate of State-owned Land Using Right. The school buildings will be remodeled by the program. The school moved to the new site of Three Gorges Secondary Specialized School in 2013. Figure 6. The old site of the Yichang Art School 7

Entrance of the school Vacated internal site Vacated internal site Figure7. Vacated ground floor site Certificate of State-owned Land Using Right 8

14. Xiling Branch of Yichang Municipal Public Security Bureau was established in August 1995. The 2.32mu (1,543.7 m 2 ) land was purchased by the bureau in 1995 from YMG. The program will remodel the buildings. In January 2013, Land Reserve Center withdrew the state-owned land using right from the bureau. Land Reserve Center paid compensation to the Xiling Branch of YMG Public Security Bureau. In February 2013, the bureau moved to the new workplace a thuanghe road of Xiling District. IV. Legal Framework for Involuntary Resettlement 15. PRC has established a comprehensive legal and regulatory framework for land acquisition and resettlement actions of development projects and programs. It consists of laws, regulations and administrative decrees, issued by the State Council and the Ministry of Land Resource (MOLR). The main aspects of the legal system include the collective land acquisition, the procedures for transferring collective land to state-owned land, house demolition on collective land in rural areas and house demolition on state-owned land in urban areas. These activities create project-affected persons (PAPs), legal requirements for compensating the impacts of such activities, resettlement and income restoration of PAPs. The program will not include any of such activities. Therefore, the program will have no involuntary resettlement impacts. 16. The proposed program will be subjected to transfer of state-owned land, land grant and land allocation among bureaus. These procedural issues relating to state land and its use will not trigger any ADB s social safeguard policy requirements. The list below includes the related laws and regulations related to land transfer, grant, allocation, especially for ECS programs at the state-level and YMG-level. 9

17. Land Laws and Regulations Land Administration Law of the People s Republic of China (effected from January 1 of 1999, revised on August 28, 2004). Regulations of Urban Real Estate Management of People s Republic of China. (effected from Jan 1 of 1999, revised on July 29, 2014) Administration Measures of Granting and Transferring the State-owned Land in the Urban Area. (effected from May29 of 1990) Program for the Construction of Old-age Social Service System (2011-2015) (No. 60 [2011], General Office of the State Council. Implementation Opinions on Encouraging and Guiding Private Capital's Entry into Elder care Service Sector (No. 129 [2012], Ministry of Civil Affairs). Several Opinions of the State Council on Accelerating the Development of the Elder Care Service Industry (No. 35 [2013], State Council) Several Opinions of the State Council on Promoting the Development of the Health Service Industry (No. 40 [2013], State Council) Circular on the Issuance of the Guiding Opinions on Land Use and Facilities for Elder Care Services (No. 11 [2014], Office of Land and Resources) Provisions on the Transfer of State-owned Construction Land Use Right through Bid Invitation, Auction and Quotation (No. 39, Ministry of Land and Resources, November 2007) Circular of the Ministry of Land and Resources on Issuance of the Several Opinions on Specification of State-owned Land Lease (No. 222 [1999], Ministry of Land and Resources). Land Policies of Hubei Province and Yichang City 18. The program relevant land policies of Hubei Province and Yichang City are: Regulations of Hubei Province on Land Administration, effective from 3 August 1983; revised in 2010. Implementation Measures of Granting and Transferring the State-owned Land in the Urban Area of Hubei Province, effective from 17 June 1993. Notice of Strengthening the State-owned Land Assets and Standardized the Land Market in Hubei Province, effective from 7 Dec 2011. Implementation Guidance on Strengthening the Eldercare Service in Hubei Province, effective from 29 June 2014. Interim Regulations of Land Reservation in the Urban Area of Yichang, effective from 5 Apr 2000; revised in Oct 2011. Circular on the Issuance of the Guiding Opinions on Land Use and Facilities for Elder Care Services (No. 11 [2014], Office of Land and Resources). According to the Circular, profit-making eldercare service facilities can be provided with state land though land granting or land leasing. 10

V. Safeguard Policy Principles Triggered 19. The program facilities will be built on the program s land which is state-owned land. The buildings at the 4 sites belong to YMG. New land acquisition or relocation of people will not be permitted under the program. As a result, the program activities will not trigger ADB s social safeguard policy principles or the PRC s legal framework. Therefore the need for an assessment of equivalence between domestic laws and regulations and ADB s SPS involuntary resettlement safeguard principles, and for a diagnostic assessment of institutional capacity for resettlement planning and implementation does not arise. The matrix below elaborates this conclusion, and indicates that no action with regard to involuntary resettlement safeguards is needed. 11

ADB Safeguard Policy Statement Corresponding Legal Provisions Description Safeguards Program Actions Policy Principle 1: Screen the project early on to identify past, National legislation has no similar Program agreement establishes that No action required. present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. requirements. Lower levels of government generally are responsible for determining project preparation processes, but do not specifically require an early screening process. no land acquisition or resettlement will occur. Policy Principle 2: Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. According to the Land Administration Law of the People s Republic of China, once a plan for compensation and resettlement subsidies for requisitioned land is decided, the concerned local people s government will make it known to the general public and solicit their comments, and suggestions from the collective economic organizations. State council [2004] number 28 states that (1) information on land acquisition, compensation rates, resettlement plans should be made known to the people; (2) the result of land acquisition surveys be affirmed; (3) an evidentiary hearing, if is necessary, is organized; (4) a reciprocal mechanism of resettlement disputes is established. Ministry of Land and Resources [2004] 238 Not Triggered No action required. 12

ADB Safeguard Policy Statement Corresponding Legal Provisions Description Safeguards Program Actions reiterate the above. Policy Principle 3: Improve, or at least restore, the livelihoods State Council [2004] number 28 states that (1) Not Triggered No action required. of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. projects should bring about stable profit and farmers use land use right as shares; (2) it is necessary to plan in an urban area, a system of employment and security improvement to benefit PAPs; (3) the project will complete land resettlement and employment resettlement; and (4) carry out employment training programs. Policy Principle 4: Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with Ministry of Land and Resources [2004] 238 requires (1) agricultural production improvement and resettlement; (2) reemployment of PAPS at resettlement comparable access to employment and production location; and (3) using the land as shares of opportunities, integration of resettled persons economically the project. and socially into their host communities, and extension of Not triggered No action required project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. National legislation relating to urban housing provides for independent valuation, compensation at market value, or provision of replacement housing of equivalent value at the request of PAPs. (See State Council Regulations on Collection and Compensation 13

ADB Safeguard Policy Statement Corresponding Legal Provisions Description Safeguards Program Actions for Houses on State-Owned Land, 2011.) Arrangements generally assure the security of tenure. Compensation rates are administratively determined through the application of prescribed valuation processes. Policy Principle 5: Improve the standards of living of the According to the Guidelines of Employment Not Triggered.No action required. displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. and Social Security for the Farmers Affected by Land Acquisition issued by Guizhou Government (QFF[2011]26), for those farmers who become poor after land acquisition, it is necessary to provide them with a minimum living guarantee system. Policy Principle 7: Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. No similar requirements; legislation restricts compensation to those legally entitled. Not Triggered No action required. 14

ADB Safeguard Policy Statement Corresponding Legal Provisions Description Safeguards Program Actions Policy Principle 8: Prepare a resettlement plan (RP) Except for large-scale water sector projects, Not Triggered No action required. elaborating on displaced persons entitlements, the income there are no specific requirements to prepare and livelihood restoration strategy, institutional a resettlement plan. arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Policy Principle 9: Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. Policy Principle 10: Conceive and execute involuntary Refer to Article 12 of No.28 Decree. The total No action required. resettlement as part of a development project or program. resettlement cost should be included in the Include the full costs of resettlement in the presentation of total project cost estimate. All compensation project s costs and benefits. For a project with significant and administrative costs are included. Some involuntary resettlement impacts, consider implementing the rehabilitation measures are covered by the involuntary resettlement component of the project as a local government. There is no requirement or stand-alone operation. budget for external monitoring. Policy Principle 11: Pay compensation and provide other Regulations generally require compensation Not Triggered No action required. resettlement entitlements before physical or economic and other financial forms of resettlement displacement. Implement the resettlement plan under close assistance to be paid before physical or supervision throughout project implementation. economic displacement. 15

ADB Safeguard Policy Statement Corresponding Legal Provisions Description Safeguards Program Actions There are no systematic resettlement supervisions throughout the project implementation period. Policy Principle 12: Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. Except for large-scale water projects, there is no requirement to monitor and evaluate outcomes, including impacts on standards of living of displaced persons. There is no requirement for internal and external reporting and for disclosing monitoring results. Not Triggered No action required. 16

VI. Indigenous Peoples (Ethnic Minorities) in Yichang City 20. According to the 6th National Census, there are 45 ethnic minority groups in Yichang Municipality with a population of 472,000. They account for 12% of the total municipal population. Tujia is the largest ethnic minority group in Yichang municipality, and their population is about 11% of the municipality population. Table 3 shows the structure of the ethnic minority population in Yichang Municipality. Table 3: The Distribution of Ethnic Minority Population in Yichang Municipality Ethnic Minority Group Population Tujia 464,000 Miao 2,420 Hui 2,175 Man 908 Zhuang 664 Others (40),833 Total 472,000 Source: the 6th National Census, http://baike.baidu.com 21. The total number of ethnic minority elders in Yichang municipality is 1426 (Table 4). About 70% belong to Tujia ethnic minority group. Table 4: The Distribution of Ethnic Minority Elderly Population in Yichang Municipality by Age Category and Ethnic Minority Group Age Total Ethnic Minority Group Tujia Hui Man Miao Other EMs 60 70 920 683 131 38 29 39 70 80 346 225 67 26 9 19 80 90 150 82 26 19 3 20 90 100 10 6 4 0 0 0 >100 0 0 0 0 0 0 Total 1,426 996 228 83 41 78 Source:YMG Smart Office Data Center Statistics, May 2016; EM = ethnic minorities 22. Each minority group has its own language, cultural functions, rituals, festivals, and customs. Hui and several other ethnic minority groups such as Uygur and Salar comprise a group of Yichang residents who are Muslims 17

VII. Legal Framework for Ethnic Minorities 23. The national and Yichang Municipality laws, regulations, and guidelines on ethnic minorities mainly focus on ethnic ID registrations religious social organization registrations ethnic regional autonomy religious activity space and religious beliefs minority issues, ethnic solidarity, and national harmony dispersed minority and ethnic township working regulations 24. The relevant laws, rules and regulations with regard ethnic minorities are: PRC Citizens Ethnic ID Registration Administration Measures, issued on 16 Jun. 2015 and effective from 01 January 2016 Religious Social Organization Registration Administration Measures of 6 May 1991 PRC Ethnic Regional Autonomy Law revised on 28 February 2001 PRC State Council Mandate No. 426 enforced on 01 March 2005 Working Regulations on Urban Ethnic Groups of 15 September 1993 Hubei Provisional Dispersed Minority Working Regulations revised in September 2007 1 25. Overall, freedom of religious belief in the PRC is guaranteed by law. Also, the PRC has instituted a system of regional autonomy in ethnic minority areas (where ethnic minorities live), and ethnic county or townships are a supplement to the system of regional autonomy. In Yichang municipality, Wufeng county and Changyang county have practiced Tujia Ethnic Autonomy Rules. 1 Sources: State Ethnic Affairs Commission of the PRC, http://www.seac.gov.cn/art/2011/6/29/art_4901_128707.html and Yichang bureau of Ethnic & Religious Affairshttp://www.ycmzj.net/list-30364-1.html. 18

VIII. Application of the Legal Framework to the Program 26. With particular reference to the program, YMG: encourages enterprises to hire ethnic minority employees; sets up halal restaurants and food manufacturing, processing and supplying centers, and support related investments, and provides loan employment for minority employees and management executives; protects ethnic minority's language, custom and / or customs; sets up libraries and cultural stations with ethnic features; and establishes minority hospitals and medicine research institutes. IX. Requirements of Ethnic Minority Elders 27. The need for halal canteens and Muslim pray rooms were two key discussion topics at the focus group consultations held with Hui and Hanyi ethnic minority elders (Table 5). At one focus group, several Uygur migrants participated in discussions. They were originally from Xinjiang and at present, they are residents of Yichang Municipality. They earn their living by selling raisin and fruits on the street. They do not intend to live in Yichang when they are old, and look forward to returning to their original villages to spend their old age. 28. The poverty and social analysis conducted in the program areas found that the majority of ethnic minority elders (who are 60 years or more of age) in Yichang City share similar life chances with Han group. Most of them engaged in enterprises and public service prior to their retirement and now receive a pension (Table 5). Table 5: FGDs Findings Regarding Ethnic Minorities in Yichang City (2016) No. Gender Age Ethnic Retired from Pension Remark 1 F 63 Hui enterprise 2,100 Halal/Muslim 2 M 75 Tujia enterprise 3,100 Similar to Han 3 F 74 Hui Public 3,500 Halal/Muslim 4 F 74 Tujia Public 3,500 Similar to Han 5 F 63 Tujia Public 3,000 Similar to Han 6 M 78 Bai Public 5,000 Similar to Han 29. Table 6 shows the distribution of ethnic minority elders in the program facility areas. It shows how many ethnic minority elders live within 3km from each program ECS facility. (3km is considered as the distance an elder could walk to obtain ECS from a facility.) In the vicinity of the Tourism School, there are 229 ethnic minority elders. In the vicinity of the Business School, there are 712 elders. There are 843 elders in the vicinity of Art School and the public security bureau. Table 6: The Distribution of Ethnic Minority alongside Program Sites (2016) 19

Ethnic Minority Age Total Tujia Hui Man Miao Others Tourism School (3km Radius) 50 60 289 219 34 15 5 16 60 70 130 88 28 6 4 4 70 80 72 39 17 7 3 6 80 90 26 11 5 6 0 4 90 100 1 0 1 0 0 0 >100 0 0 0 0 0 0 Total 518 357 85 34 12 30 excluding 50 60 229 138 51 19 7 14 Business School (3km Radius) 50 60 848 660 104 30 16 38 60 70 440 314 83 17 8 18 70 80 189 120 43 15 5 6 80 90 76 43 15 8 1 9 90 100 7 4 3 0 0 0 >100 0 0 0 0 0 0 Total 1,560 1,141 248 70 30 71 excluding 50 60 712 481 144 40 14 33 Art School/Public Security Bureau (3km Radius) 50 60 1,040 815 123 39 16 47 60 70 519 374 92 22 9 22 70 80 224 143 50 16 5 10 80 90 92 56 16 9 1 10 90 100 8 5 3 0 0 0 >100 0 0 0 0 0 0 Total 1,883 1,393 284 86 31 89 excluding 50 60 843 578 161 47 15 42 Source:YMG Smart Office Data Center Statistics, Jul. 2016. 20

X. Indigenous Peoples Safeguard Policy Principles Triggered 30. The program will have no impact on the identity, ancestral domains, language, and on socio-cultural rights of ethnic minorities who live in Yichang City. It will not physically or economically displace any ethnic minority person or community, and will not usurp their indigenous knowledge or their right to use natural resources, if any. The program will have no negative impact on their livelihoods and sources income; but some of them will benefit from preferential employment at the program s construction sites, and also as professional EC providers at the program facilities. Elders together with other poor and vulnerable elders in the City will benefit from the program because of its social inclusive approach which targets ethnic minorities among others (Table 7). Table 7: Ethnic minority Policy Principles Triggered Indigenous Peoples/Ethnic Minority Safeguard Policy Principles 1. Screen to identify ethnic minorities, check whether they have collective attachment to the project area, and whether the project impacts on them 2. Assess potential positive and negative impacts of the Program on them 3. Conduct meaningful consultations on design and tailoring Program benefits in a culturally appropriate manner. Establish a GRM to address their grievances 4. Ascertain consent from the affected indigenous peoples for commercial development of the cultural resources and knowledge; physical displacement; commercial development of natural resources within customary land Description Triggered. PSA identified groups of EMs as program beneficiaries and found that they do not have collective attachment to land of the project area. Program will positively impact on them. Triggered. Identified positive impacts: (i) preferential employment opportunities and (ii) guaranteed access to ECS as vulnerable and poor persons. The negative impact is that IA might overlook their ECS requirements and deny them employment opportunities. The Program has provided targeted benefits for urban poor and vulnerable including ethnic minorities to avoid such risks. Triggered. Focus group discussions and personal interviews conducted to identify their views and recommendations on construction and implementation of ECS facilities. The need to obtain their consent for the program does not arise. GRM will address their grievances. Not triggered. Therefore, seeking their consent for the program is not necessary. 21

Indigenous Peoples/Ethnic Minority Safeguard Policy Principles 5. Avoid any restricted access and physical displacement from protected area and natural resources 6. Prepare an IPP with a framework for continuous consultation and specifies measures to ensure IPs receive culturally-appropriate benefits and grievance procedures Not triggered. Description Not triggered. The program s positive impacts on ethnic minorities are fully recognized, and the safeguard program actions of PSSA and PAP ensure that they will receive project benefits as much as other program beneficiaries will do. 7. Disclose the IPP to all stakeholders Not triggered 8. Prepare an action plan for legal recognition of customary rights to lands and territories Not triggered 9. Monitor implementation of IPP. Not triggered 22

XI. Assessment of Indigenous Peoples Inclusiveness and Program Design 31. According to the social inclusiveness approach of the program, special attention will be paid to (a) super-age (especially persons with dementia), (b) female service seekers, (c) ethnic minority groups, (d) disabled, (e) empty-nested elders, (f) elders living in old blocks with poor housing conditions, and (g) elders with basic living allowances, who are in need of RC and home-based care services. These are the vulnerable groups who will benefit from the program. Elders of ethnic minorities in Yichang city are specifically considered in preparing the program action plan. 32. The program highlights 9 components of ECS: nursing care; senior apartments; clinic and pharmacy; telemedicine and telecare; halal canteens; prayer rooms and recreational actives; special care for women; friendly design for elders with disabilities; and gardening, music and speech therapy. Halal canteens and prayer rooms specifically target the Muslim ethnic minorities by paying special attention to their cultural and religious sentiments. 33. The following EC components will directly benefit elders. Elders of ethnic minority groups are identified as a group that needs special elderly care and services: over 1000 elders who are in the waiting list for social welfare housing; middle-income elders who desire for quality EC services; low-income elders who are in need of good EC services but cannot afford to pay the market price; elderly households living on minimum subsistence allowances who need EC services; single, divorced elders or widows with no family support but in need of ECS; ethnic minority elders who need EC services but like to maintain their own cultural identity; Persons with disabilities in the age category of 50 to 60 years; empty-nested elders who are in need of EC services; old persons suffering from dementia; elders who live in old apartments; elders who are in need of ECS but prefer home-based care services to residential care services 34. Employment opportunities generated by the program facilities during their construction and operation phases will provide preferential employment opportunities to vulnerable and poor persons, and among them are the ethnic minority group members as a sub category. As poor and vulnerable persons, they will become eligible for such benefits. 23

35. Table 8 highlights some key issues identified regarding gender, social, and poverty issues in the EC sector and how the program plans to address them through the EC PPP project. The program emphasizes the importance of providing culturally-appropriate, affordable ECS to elders of ethnic minorities (see key issue # 6). The matrix reflects the current thinking of the policy and legal formulators on these issues. Table 8: Key Findings of Poverty & Social Issues and Proposed Solutions No. Key Issues Proposed Actions to establish vocational training curriculum for EC care workers (either working with vocational training institute or set up EC University) to develop care worker career pathway by working with HR & Social Security People's Bureau, Civil affairs Bureau, and Health & Family Planning Commission 1 willingness to engage as EC to initiate time bank and credit or point system for care workers and/or volunteers care workers to hire retired professionals, laid-off workers, and people living on minimum guarantee for EC HR planning to improve social status and social welfare of care professionals /workers in combination with the above action plans 2 People's willingness to accept EC services to integrate residential care, home care and community support together with HR, operation and service effectiveness and efficiency to launch EC campaigns with governmental authorities (from the grass-roots to the municipal level) to showcase modern EC facilities and service standards and procedures to partner with Community College for the Elderly (Laonian Daxue), family associations, community committees / street office 3 People's willingness to pay for EC services to develop flexible EC product/service bundle to differentiate intangible components of EC services in terms of medi-care, health-care, age-care, social care, personal care, informal care and special care etc. to differentiate the tangible components of EC products which would be presented in facility design in terms of room features, furniture, home appliance, communal area, and food supply. to help introduce and reform long-term care insurance regime in Yichang City for both the state and the commercial sector to launch EC charity and / or research hub and / or foundations to improve the social security system to mitigate the boomerang kid phenomenon 24

to ensure provision of rooms for the single divorced old women and widows who 4 women's physical and psychological vulnerability live alone in Yichang City with different levels of impairment. to initiate the Care for Women campaign to introduce counselors or therapists exclusively for women ECS receivers to propose a specialized EC University for Women to have a special point accumulation system (or time bank) for female care workers 5 Difficulties of people with disabilities in accessing EC services to establish strategic alliance with the Disabled Association to introduce Braille and sign language and speech therapists to deploy Braille tiles, sound and color as indicated solutions for vision and hearing/speech disability to launch special campaigns for the disabled of the age bracket of 50-60 years to access EC services to set up Halal Special Treatment and / or Muslim Canteen and special pray 6 Ethnic diversity in cultural beliefs room for the Muslim people in an EC facility to launch recreational activities and cultural events for Tujia, Bai and other ethnic groups. 7 empty-nested elders' to introduce social workers and volunteer care scheme to set social aid program for empty-nested elders elders living in to develop social housing / senior living studio or apartment at EC facilities. old apartments to initiate an exchange scheme or a replacement plan for the old 8 with difficulties in accessing EC apartments and new senior living studios services Elders living on minimum to propose governmental subsidies 9 subsistence allowances and to propose a mixed pay scheme with contributions from individuals, family and government other low-income to recruit a proportion of them as volunteers or care workers elders 25