External Resettlement and Social Development Monitoring and Evaluation Report

External Resettlement and Social Development Monitoring and Evaluation Report February 2018 People s Republic of China: Guiyang Integrated Water Resources Management (Sector) Project External Resettlement and Social Development Monitoring and Evaluation Report No. 3 for Hongyan Reservoir and Associated Waterworks Subproject Prepared by the National Research Center for Resettlement, Hohai University, for the Guiyang Municipal Government and the Asian Development Bank.

This external resettlement and social development monitoring and evaluation report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB-funded Guiyang Integrated Water Resources Management (Sector) Project Hongyan Reservoir Subproject in Huaxi District, Guiyang City External Resettlement and Social Development Monitoring and Evaluation Report (No.3) National Research Center for Resettlement, Hohai University, Nanjing, Jiangsu, China February 2018 I

Project leader : Chen Shaojun M&E staff : Zhao Yaoyang, Cao Xiuling, Zhu Yi Prepared by : Cao Xiuling, Zhu Yi, Zhao Yaoyang, Chen Shaojun M&E agency : National Research Center for Resettlement, Hohai University (NRCR) Address : No.8 Focheng West Road, Jiangning District, Nanjing, Jiangsu Postcode : 210098 Tel : 025-83786503 Fax : 025-83718914 Email : zhaoyaoyang@126.com shaojun_chen@126.com II

Contents Summary... 1 1.1 Introduction... 1 1.2 Latest Socioeconomic Profile of the Subproject Area... 3 1.2.1 Guiyang City... 3 1.2.2 Huaxi District... 4 1.2.3 Maling Xiang... 4 1.3 M&E... 4 1.3.1 Procedure... 4 1.3.2 Scope... 5 1.3.3 Methods... 6 1.3.4 Reporting... 6 2 Construction and Resettlement Progress... 7 2.1 Construction Progress... 7 2.2 Resettlement Progress... 10 2.2.1 LA... 10 2.2.2 HD... 11 2.2.3 Demolition of non-residential properties... 11 2.2.4 Ground attachments... 13 2.3 Evaluation... 14 3 Compensation Rates, and Fund Disbursement and Use... 15 3.1 Resettlement Policy Framework... 15 3.2 Compensation Rates... 15 3.3 Fund Disbursement... 16 3.4 Fund Distribution... 16 3.5 Evaluation... 17 4 Resettlement and Livelihood Restoration... 19 4.1 Resettlement and Livelihood Restoration... 19 4.2 Women... 22 4.2.1 Training... 22 4.2.2 Unskilled Jobs... 23 4.3 Vulnerable Groups... 23 4.4 Evaluation... 24 5 Public Participation, Information Disclosure and Grievance Redress... 25 5.1 Public Participation... 25 5.2 Information Disclosure... 27 5.3 Grievance Redress... 31 5.3.1 Procedure... 31 5.3.2 Appeal Handling... 32 5.4 Evaluation... 32 6 Sampling Survey... 33 6.1 Population... 33 6.2 Residential Conditions... 33 6.3 Land Utilization... 33 6.4 Annual Household Income and Expenditure... 33 6.5 Satisfaction Survey... 34 III

7 EMDP... 35 7.1 Overview... 35 7.1.1 Profile of Minority Population in the Beneficiary Area... 35 7.1.2 Profile of Minority Population in the Affected Area... 35 7.2 Evaluation of EMDP Implementation... 36 7.3 EMDP Implementation... 41 7.4 Suggestions... 42 8 Resettlement and Ethnic Minority Development IAs... 44 8.1 IAs... 44 8.2 Institutional Capacity Evaluation... 45 8.3 Supervision and Inspection... 45 8.4 Capacity Building... 45 8.5 Suggestions on Capacity Building... 46 9 Conclusions and Suggestions... 47 9.1 Conclusions... 47 9.1.1 Changes in Resettlement Impacts... 47 9.1.2 Resettlement Progress... 47 9.1.3 HD and Reconstruction... 47 9.1.4 Resettlement Agencies... 47 9.1.5 Public Participation and Information Disclosure... 47 9.1.6 Key issues in RAP and EMDP implementation... 47 9.2 Suggestions... 48 9.2.1 Accelerate the land approval formalities, and pay LA and HD compensation timely and fully.... 48 9.2.2 Pay attention to the livelihood restoration of the APs, and extra support for vulnerable groups.... 48 9.2.3 Accelerate resettlement site construction.... 48 9.2.4 Strengthen policy publicity.... 48 9.2.5 Further strengthen the capacity building of the PMO.... 48 9.2.6 Further strengthen information disclosure, public participation and grievance redress... 48 9.2.7 Implement LA and HD in strict conformity with the established procedures and ADB s policies.... 48 9.2.8 Strengthen support for ethnic minorities and vulnerable groups.... 49 Appendix 1 Notice of the Guiyang Municipal Government on Issuing and Implementing the Updated Uniform AAOV Rates and Location-based Composite Land Prices of Guiyang City... 50 Appendix 2 Reply of the Guizhou Provincial Land and Resources Department on the Land Application for the Subproject... 58 Appendix 3 Reply of the Guizhou Provincial Development and Reform Commission on the Feasibility Study Report of the Subproject... 59 Appendix 4 Reply of the Guizhou Provincial Development and Reform Commission on the Preliminary Design of the Subproject... 60 Appendix 5 Agreement on Resettlement House Confirmation... 61 Appendix 6 House Construction Entrustment Agreement... 62 Appendix 7 Land Use Agreement... 63 Appendix 8 Engagement Letter of AP Representatives... 64 Appendix 9 Opinion on Site Selection for Mengguan Waterworks... 65 IV

Appendix 10 LA Program for Mengguan Waterworks... 66 Appendix 11 Reply on the Land Used for Mengguan Waterworks... 68 Appendix 12 Design Effect of Mengguan Waterworks... 69 Appendix 13 Fund Disbursement Vouchers... 70 Appendix 14 Confirmation of Compensation for Land Price Difference... 71 Appendix 15 Reply to the Comments and Requirements on Land and House Compensation, and Resettlement in the Inundated Area (Geyue, Duimenhe, Datiankan and Gelou Groups)... 72 Appendix 16 Typical Interview Minutes Maling Xiang... 74 Appendix 17 Typical Interview Minutes Maling Village... 75 Appendix 18 Typical Interview Minutes Mengguan Waterworks... 76 Appendix 19 Typical Interview Minutes HDRB... 77 Appendix 20 Notice on Subsidies for AP Training and Purchase of Agricultural Implements... 78 Appendix 21 Guide to Employment and Business Startup Policies for Low-income Households... 80 Appendix 22 Employment Information for Poverty Reduction of Maling Xiang in 2017... 81 Appendix 23 Agricultural Restructuring of Maling Xiang... 83 Appendix 24 Households Needing Living Assistance in Maling Village, Maling Xiang... 84 Appendix 25 Health Education and Publicity... 85 List of Tables Table 1-1 Overview of the Subproject and Resettlement Impacts... 2 Table 1-2 Main Resettlement Impacts of the Subproject... 3 Table 1-3 Socioeconomic Profile of Maling Xiang... 4 Table 2-1 Summary of Contracts... 8 Table 2-2 Land Approval for the Subproject... 10 Table 2-3 Land Approval for Mengguan Waterworks... 10 Table 2-4 Statistics of LA and Compensation for Mengguan Waterworks... 11 Table 2-5 Collective land acquired / occupied for the Subproject (by group)... 12 Table 2-6 Collective land acquired / occupied for the Subproject (by component)... 13 Table 2-7 Affected Ground Attachments... 13 Table 3-1 LA Compensation Rates... 16 Table 3-2 Resettlement Budget and Fund Disbursement... 18 Table 4-1 Employment statistics... 23 Table 4-2 Statistics of Impacts on Vulnerable Groups... 23 Table 5-1 Key Public Participation Activities... 25 Table 6-1 Follow-up Survey on Income and Expenditure... 33 Table 7-1 Monitoring of EMDP Implementation... 37 Table 7-2 Summary of Minority Training Courses... 42 Table 8-1 Members of the Social and Environment Office... 44 Table 8-2 Staffing of Resettlement Agencies... 45 List of Figures Figure 2-1 Reservoir construction site... 7 Figure 2-2 Construction site of Mengguan Waterworks... 7 Figure 2-3 Residential houses to be demolished... 11 Figure 2-4 Non-residential Properties to be demolished... 12 V

Figure 4-1 Photo of e-business Training... 19 Figure 4-2 Photo of Job Fair... 20 Figure 4-3 Chinese cuisine training... 20 Figure 4-4 Pig raising training... 21 Figure 4-5 Plan of resettlement sites... 21 Figure 4-6 Current situation of the Dahuangdi and Shilang resettlement sites... 22 Figure 4-7 Photo of Embroidery... 22 Figure 4-8 Publicity on scientific family education... 23 Figure 5-1 Q&A on Subproject Policies... 26 Figure 5-2 Relocation mobilization meeting... 26 Figure 5-3 Village congress... 27 Figure 5-4 Photos of Three-time Disclosure... 27 Figure 5-5 Photos of Three-time Disclosure... 28 Figure 5-6 Villagers Reading Resettlement Policy Outlines... 28 Figure 5-7 Tomb Relocation Announcement... 28 Figure 5-8 List of Resettled Population (Duimenhe Group of Maling Village)... 29 Figure 5-9 List of AHs with resettlement house sizes confirmed... 29 Figure 5-10 Disclosure of resettlement house allocation... 30 Figure 5-11 Bulletin board of the Maling Xiang Women s Federation... 30 Figure 5-12 Announcement of construction blasting... 30 Figure 5-13 Bulletin board in a village group... 31 Figure 5-14 Grievance Redress Mechanism... 32 Figure 6-1 Per Capita Income Structure of APs... 34 Figure 6-2 Per Capita Expenditure Structure of APs... 34 Figure 7-1 Infrastructure Construction in Maling Xiang... 41 Figure 7-2 Outcomes of Beautiful Countryside Building... 42 Figure 7-3 Vocational Training for Minority Residents... 42 Figure 8-1 Organizational Chart for Resettlement and Social Development... 44 Abbreviations ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey EMDP - Ethnic Minority Development Plan FGD - Focus Group Discussion HD - House Demolition HDG Huaxi District Government HDRB - Huaxi District Resettlement Bureau LA - Land Acquisition M&E - Monitoring and evaluation MLS - Minimum Living Security MXG - Maling Xiang Government NRCR - National Research Center for Resettlement VI

PMO - Project Management Office RP - Resettlement Plan Zhushui - Guiyang Zhushui Water Resources Industrial Development Co., Ltd. Units Currency unit = Yuan (CNY) USD1.00 = CNY6 1 hectare = 15 mu VII

Summary 1.1 Introduction The Subproject is designed for urban water supply and irrigation mainly, and also for power generation. The Subproject consists of water source works (including the dam and reservoir), and other water works (including water delivery works, and irrigation works). 1. Water source works The water source works consist of the reservoir (inundated area) and dam (junction area). The dam is 3-4km below the Shanggelou water station on the Maling River, about 1.0km away from Hongyan Village. The catchment area above the dam is 152.5km 2, and the main watercourse is 26.2km long, with an average gradient of 10.6. The Subproject has a maximum dam height of 52.4m, a normal pool level of 1,070m, a storage capacity of 14.46 million m 3, an installed capacity of 800 kw, and an annual power supply capacity of 2.93 million kwh. It is a medium-sized Class III reservoir. 2. Other water works Other water works consist of the water delivery works and irrigation works. Water delivery works The water delivery works consist of a pump station, an elevated tank and water delivery pipelines, running from the pumping station (1,200m) to Mengguan Waterworks, with a full length of about 25km. After completion, the Subproject will supply 31.90 million m 3 /a of water to Guiyang City (P=95%). Irrigation works The irrigation works will pump water to the elevated tank (1,200m), and deliver water to the irrigation area via a main delivery pipeline and 3 branch pipelines. These pipelines have a total length of 5.65km, an irrigation water supply capacity of 1.09 million m 3 /a (P=80%), and a design irrigated area of 3,060 mu. See Error! Reference source not found.. According to the RP, LA for the Subproject affects 343 households with 1,498 persons in 43 groups of 10 villages, 3 townships (Maling Xiang, Qingyan Town and Mengguan Xiang) in Huaxi District, Guiyang City. 2,119.31 mu of land will be occupied permanently for the Subproject, including 1,873.2 mu of collective land and 246.11 mu of state-owned land; 631.91 mu of land will be occupied temporarily; rural residential houses of 46,527.54 m 2 and non-residential properties of 1,306.07 m 2 will be demolished. See Error! Reference source not found.. 1

Table 1-1 Overview of the Subproject and Resettlement Impacts No. Component Brief description Range of impact Main resettlement impacts Normal pool level 1,070m, storage capacity 14.46 million m 3 1 2 Water source works Other water works Reservoir Junction (dam) Water delivery works Irrigation works Including frequently inundated area below the normal pool level, and temporarily inundated area above the normal pool level Top level 1,072.4m, maximum height Land to be acquired permanently for water 52.4m, net top width 7m, top length retaining and releasing structures, and 145.23m; open spillway on the right bank, 3 permanently highways; occupied holes 6m wide each; water supply and temporarily for access road, living area, power generation systems on the left bank; stockyard, etc. diversion tunnel to be converted into a permanent emptying tunnel 2 running from the pumping station (1,200m) to Mengguan Waterworks, with a full length of about 25km, bottom width 1.8m, side slope 1:1, pipe diameter 1m Pumping water to the elevated tank (1,200m), and delivering water to the irrigation area via a main delivery pipeline and 3 branch pipelines, total length 5.65km, bottom width 0.8m, side slope 1: 1, pipe diameter 0.25m Land within 3.3m on both sides of the centerline, and land within construction area to be used temporarily, land to be occupied for the pump station and elevated tank Land within 1.5m on both sides of the centerline, and land within construction area to be used temporarily, land to be occupied for the pump station and elevated tank Acquiring 1,616.26 mu of collective land permanently, including 1,099.92 mu of cultivated land; occupying 234.72 mu of state-owned land (water surface) permanently, demolishing residential houses of 46,527.54 m 2 and non-residential properties of 1,306.07 m 2, affecting 291 households with 1,299 persons permanently 1 Acquiring 240.94 mu of collective land permanently, including 102.05 mu of cultivated land, occupying 11.39 mu of state-owned land permanently, occupying 271.99 mu of land temporarily, affecting 29 households with 113 persons permanently 3 Acquiring 16 mu of collective land permanently, including 15 mu of cultivated land, occupying 359.92 mu of land temporarily, affecting 23 households with 86 persons permanently 1 3 households with 11 persons will also be affected by junction construction, but are not included in the population affected by the reservoir. 2 The diversion tunnel broke ground in September 2014, and the occupied land has been compensated for. See the Due Diligence Report on the Diversion Tunnel. 3 29 households with 132 persons will also be affected by reservoir inundation, but are not included in the population affected by the dam. 2

Table 1-2 Main Resettlement Impacts of the Subproject Water source works Other water Component Reservoir Dam works Total City Guiyang District Huaxi Townships 1 1 3 3 Villages 2 1 9 10 Groups 15 6 28 43 Collective Subtotal 1616.26 240.94 16 1873.2 LA (mu) land Where: cultivated land 1099.92 102.05 15 1216.97 State-owned land 234.72 11.39 0 246.11 Total 1850.98 252.33 16 2119.31 Temporary land Total 0 271.99 359.92 631.91 occupation (mu) Where: cultivated land 0 128.94 341.27 470.21 HD (m2) Residential houses 46,527.54 0 0 46,527.54 Non-residential properties 1,306.07 0 0 1,306.065 Directly affected population HHs affected by LA only 118 29 23 170 Population affected by LA only 518 113 86 717 HHs affected by both LA and HD 173 0 0 173 Population affected by both LA and HD 781 0 0 781 HHs 291 29 23 343 Population 1299 113 86 1498 HHs 0 68 551 619 Population 0 299 2303 2602 Subtotal of directly affected population Temporarily affected population Note: In the affected population, 3 households with 11 persons in Haitangzhai Group will also be affected by junction construction, but are not included in the population affected by the reservoir; 29 households with 132 persons in Duimenhe Group will also be affected by reservoir inundation, but are not included in the population affected by the dam. In addition, the dam will also affect threshing grounds of 29,000.59m 2, enclosing walls of 2,057.97m 2, farmland protection works of 2,613.02 m 3, 42 cellars, 186 cooking ranges, 226 toilets, and tanks of 376.0m 3 ; agricultural and sideline facilities include tobacco curing rooms of 247.71m 2, one set of oil extraction equipment, 6 sets of liquor processing equipment, 3 sets of bean curd processing equipment, two sets of rice processing equipment, and one water mill; irrigation canals of 18.1km, 9 river dams, drinking pipelines of 12.2km, 220V power lines of 3.1km, and 380V power lines of 0.5km; 28,672 scattered trees, 336 tombs and steel greenhouses of 7,722m 2. Special facilities to be inundated by the reservoir include a Class 4 village highway (single lane) of 3.2km, group access roads of 3.62km, two pedestrian bridges, telecom cables of 5.9km, mobile communication cables of 9.7km, rural broadcast and TV lines 4.11km, 10kV power transmission lines of 7.8km, 4 transformers, one rural primary school and one timber processing plant. 1.2 Latest Socioeconomic Profile of the Subproject Area 4 1.2.1 Guiyang City Guiyang City is the capital of Guizhou Province, located in central Guizhou, being an important industrial, commercial and tourism city in southwestern China. The city governs 6 districts (Yunyan, Nanming, Xiaohe, Huaxi, Wudang and Baiyun), one city (Qingzhen) and 3 counties (Kaiyang, Xifeng and Xiuwen). At the end of 2015, the city had a population of 4.684 million, including a minority population of about 800,000, accounting for about 17%. In 2016, the city s GDP was 315.77 billion yuan, up 11.7% year on year, in which the added 4 The following data is abstracted from the latest economic and social development bulletins of local governments. 3

value of primary industries was 13.714 billion yuan, up 5.9% year on year; that of secondary industries 121.879 billion yuan, up 12.1%; and that of tertiary industries 180.177 billion yuan, accounting for 11.9%, and the ratio of primary, secondary and tertiary industries was 4.3:38.6:57.1. 1.2.2 Huaxi District Huaxi District is located in the south of Guiyang City, 17km away from the urban center, with a land area of 891.56 km 2, governing 16 townships and 167 villages (communities). At the end of 2016, the district s resident population was 652,100, in which minority population accounted for 33%. In 2016, the district s GDP was 49.497 billion yuan, up 15.2%, in which the added value of primary industries was 1.762 billion yuan, up 6.4%; that of secondary industries 29.501 billion yuan, up 11.2%; and that of tertiary industries 18.234 billion yuan, up 15.2%. Per capita GDP was 43,969 yuan. The per capita income of urban and rural residents reached 26,532 yuan and 12,414 yuan, up 8.9% and 9.6% respectively. In 2015, the sown area of food crops was 8,860 hectares, that of rapeseed 2,569 hectares and that of vegetables 16,860 hectares. 1.2.3 Maling Xiang Maling Buyi-Miao Xiang has a land area of 81.08 km 2, and a cultivated area of 9,657 mu (3,457 mu of irrigated land and 6,200 mu of non-irrigated land), and governs 8 villages and 77 village groups, with 2,264 households with 8,969 persons, and 6,830 laborers. The Xiang deals with farming mainly, with per capita net income of 6,600 yuan (in 2016). The Xiang is a province-level Class 2 poor Xiang and a city-level Class 1 poor Xiang. Table 1-3 Socioeconomic Profile of Maling Xiang Township Maling Xiang Number of villages 8 HHs 2264 Population 8969 Where: minority population 6009 Females 4036 Rural laborers 6830 Cultivated area (mu) 9657 Per capita cultivated area (mu) 1.08 Urban residents per capita disposable income (yuan) 19720 Rural residents per capita net income (yuan) 6600 1.3 M&E In order to monitor the implementation of the RP and the EMDP, and ensure that the living standard of the APs is not reduced, and the APs and benefit from the Subproject, the Guiyang PNO appointed the National Research Center for Resettlement (NRCR) at Hohai University to conduct external M&E on resettlement and social development in June 2016, especially existing and potential issues in EMDP implementation, and propose solutions accordingly. The focus of this round of M&E is to learn construction and resettlement progress, satisfaction with resettlement, grievance redress, EMDP implementation, etc. 1.3.1 Procedure Preparing the terms of reference of M&E Learning construction and resettlement progress Designing a sampling plan Baseline survey Basic information of local minority population Verifying resettlement progress, collecting resettlement policies, verifying DMS results and 4

compensation rates, and monitoring the disbursement of compensation fees Establishing an M&E information system Compiling and analyzing information Preparing M&E reports 1.3.2 Scope According to the survey, the main types of impacts of the Subproject are LA, HD, temporary land occupation, and demolition of ground attachments. Therefore, this round of M&E covers the following: a. Compliance monitoring during RP implementation Evaluating if compensation, support for and the resettlement of the APs, information disclosure, public participation and grievance redress comply with the principles and procedures specified in the RP; Reviewing if the objectives of the RP are fulfilled, especially if the living standard of the APs is improved or at least restored; Reviewing issues arising from RP implementation, and finding solutions in consultation with the IAs Some key M&E indicators are as follows: (a) Compliance of compensation and supporting materials In case of land replacement, if land size, location and output are equivalent; in case of cash compensation, if compensation is sufficient for replacement; If affected buildings are compensated for at replacement cost; If trees and crops are compensated for at market value; If all supporting measures specified in the RP have been provided to the APs (b) Compliance of information disclosure Have project documents disclosed to communities (Resettlement Policy Framework, RP, RIB, etc.)? Has relevant information been disclosed in public places (DMS results, applicable compensation rates, payment of compensation, etc.)? Have the APs been fully consulted on land restoration, compensation policies, resettlement, livelihood restoration, grievance redress channels, etc.? Have concerns and suggestions of the APs been addressed during resettlement? How? (c) Compliance of resettlement Conditions of the resettlement site, e.g., roads, power and water supply Resettlement planning and implementation: consultation of resettlement measures, participation in resettlement planning, disclosure of the RP, and support for the displaced households; Livelihood and production stability after resettlement: How will the APs stabilize their livelihoods and production? (d) Compliance of income restoration Adequacy and effectiveness of income restoration measures, e.g., training, credit support Income restoration problems facing the APs (e) Satisfaction of the APs Satisfaction with the process of loss identification; Satisfaction with the compensation rates and support provided; 5

Satisfaction with information disclosure and consultation; Satisfaction with the support for income and livelihood restoration; Satisfaction with the resettlement site (f) Compliance of grievance redress mechanism Efficiency of the grievance redress mechanism; Dispositions at different levels; Satisfaction with the grievance redress mechanism (g) For minority population or communities: Is information disclosure to minority population in culture and customs adequate? Is consultation with minority population in culture and customs adequate? Support for minority villages (see the EMDP), such as tomb relocation, livelihood restoration, infrastructure, etc. Training and subsidies mentioned in the EMDP; Concerns and suggestions of minority population about EMDP implementation If minority population is granted adequate rights and relevant policies have been adjusted so that the affected minority population is able to improve living standard rapidly b. EMDP compliance inspection Evaluating if project activities have alleviated negative impacts on local minority communities and fully meet the requirements in the EMDP; Supervising the community consultation and participation process of the affected minority population, and evaluating if the affected minority population receives culturally appropriate social and economic benefits; Identifying deficiencies in the EMDP and finding solutions 1.3.3 Methods This round of M&E was conducted during January 22-25, 2018. NRCR conducted a field survey on the Subproject with the assistance of the Guiyang and local PMOs, and the owner. The following methods were used: Literature review: learning the socioeconomic profile of the subproject area, and resettlement impacts of the Subproject by collecting relevant documents, local policies and statistics FGD: FGDs are divided into resident and organizational FGDs: 1) Resident FGDs: with seriously affected households, vulnerable households, and women; 2) Organizational FGDs: with IAs, township governments, village committees, affected enterprises, where not less than 40% of participants should be women. Interview interviewing with heads of township governments and village committees, and residents, with focus on needs and suggestions of vulnerable groups Field visit visiting project sites to identify potential impacts during construction, and resettlement sites to see if sound infrastructure is available Sampling survey A follow-up survey was conducted on 51 AHs in the junction area (29), inundated area (6), and water delivery and irrigation works area (6), accounting for 14.87% of all AHs, covering population, housing conditions, income and expenditure, etc. 1.3.4 Reporting The external resettlement M&E work of the Subproject is undertaken by NRCR. This is the No.3 External M&E Report of the Subproject, and aims to identify issues in resettlement implementation as of December 31, 2017, and propose solutions accordingly. 6

2 Construction and Resettlement Progress 2.1 Construction Progress 6 contracts involve resettlement, in which 5 are ADB-financed and one not. See Table 2-1 for details of these contacts as of December 31, 2017. Mengguan Waterworks involves 10 contracts. As of December 31, 2017, the surveying contract had been entered into, and the winning bidder was Central and Southern China Municipal Engineering Design & Institute Co., Ltd.; the design contract had been entered into, and the winning bidder was Central and Southern China Municipal Engineering Design & Institute Co., Ltd. The remaining 8 contracts will be bid for in February 2018. Figure 2-1 Reservoir construction site Figure 2-2 Construction site of Mengguan Waterworks 7

Table 2-1 Summary of Contracts No. Contract Final procurement plan (0,000 yuan) Unit (US$00m) 6.60 Contract amount (yuan) Procurement mode Prior ADB approval LA area LA completed HD area HD completed Tendering date (Q/Y) Winning tenderer Contract date Construction period Construction progress 1 Dam 10686 16.4 2 3 4 Diversion tunnels (not ADB-funde d) Left-bank anti-seepa ge curtain grouting Right-bank anti-seepa ge curtain grouting 1300 1.99 9302 14.27 67,693, 244.37 10,499, 977.55 87,496, 800 NCB No 311.547 311.547 None None 76.73 76.73 None None NCB No 0 0 None None NCB Yes 75.54 75.54 None None Q4/2015 Q1/2016 Q1/2016 Xinjiang Corps Water Resources & 2016. Hydropower 3.16 Group Co., Ltd. Qinghai Water 2016. Resources & 7.26 Hydropower Co., Ltd. China Gezhouba 2016. Group 7.20 Construction Co., Ltd. 24 months 16 months 20 months 1) The dam has been filled to a level of 1,036, with a cumulative filling amount of 88,600m 3 ; 2) Concrete casting for the right side wall of the discharge chute of the spillway has been completed, and concrete has been cast to the platform on the left (0+115~0+145); 3) Concrete has been cast to a level of 1,059.5 in the spillway control segment. The construction of this contract began in January 2016, and has been completed. The inspection of the entrance, body and exit has been completed. The inspection and file compilation of the unit works (contractual works) was completed in May 2017. Grouting and adit excavation support on the left bank for 26m, 463m completed in total 1) Grouting for the open-air segment on the right bank has been completed by 8,672.5m in total; 2) Excavation and support for 159m has been completed for the 1# branch tunnel in total; 3) Excavation and support for 334.5m has been completed for the 1# adit exit in total; 4) Excavation and support for 555m has been completed for the 2# adit entrance in total; 5) Excavation and support for 676m has been completed for 2# branch tunnel in total. 8

5 6 Pipeline civil works and installation Pump station and power station 3924 6.02 2060 3.16 26,997, 733.77 13,977, 580.02 NCB No 359 68.407 None None NCB No Q1/2016 Q1/2016 Shandong Water Resources Engineering Corp. 2016. 6.28 Mianyang JIacheng 2016. Construction 6.23 Co., Ltd. 16 months 16 months 1) Ground clearing for the Maling segment pipeline began in July 2017; 2) Ground clearing for the Maling segment pipeline was completed in August 2017 (except the land in Sinuo Village) 3) Water delivery pipeline installation has completed by 84m, 877m in total, and anchor block casting completed by 261.7m 3. 1) Excavation for the workshop of the power plant has been completed; 2) Excavation for the high-level water tank has been completed; 3) EL1070 steel pipe pile construction for the rear slope treatment of the pump house has been completed. 9

2.2 Resettlement Progress According to the applicable regulations, the examination and approval procedure for additional construction land consists of preliminary examination, project initiation, land use application, drafting, submission for approval, implementation, and land registration: The municipal/county land and resources bureau surveys the approved construction land according to the project and land approvals, and freezes the land to be acquired to prevent unauthorized use or development; An LA agreement is entered into with the proprietor of the acquired land; Disclose LA resettlement programs, LA policies and procedures, and compensation rates, and specify LA range and land use for public supervision; Pay compensation to the affected village collective and its members timely and fully, and resettle the APs properly. As of December 31, 2017, the land approval of the Subproject was shown in Table 2-2: Type Preliminary land examination Feasibility study report Preliminary design Land use application Resettlement implementation Type Preliminary land examination Feasibility study report Preliminary design Land use application Table 2-2 Land Approval for the Subproject Prepared Planned approval Approved by by time Actual approval time Zhushui Provincial land and resources department Feb. 2014 Feb. 8, 2014 Zhushui Provincial development and reform commission Jul. 2015 Jul. 14, 2015 Zhushui Provincial development and reform commission Dec. 2015 Dec. 16, 2015 Zhushui Ministry of Land and Resources Mar. 2018 The land use application is being drafted. HDRB HDRB Dec. 2018 Ongoing Table 2-3 Land Approval for Mengguan Waterworks Prepared Planned Approved by by approval time Actual approval time Zhushui Provincial land and resources department Oct. 2017 Jun. 30, 2017 Zhushui Provincial development and reform commission Dec. 2017 Sep. 28, 2017 Zhushui Provincial development and reform commission Mar. 2018 Ongoing Zhushui Provincial land and resources department Jun. 2018 The land use application has been drafted, pending approval due to the unavailability of land quota. 2.2.1 LA According to the RP, 1,873.2 mu of collective land will be acquired permanently and 631.91 mu of collective land occupied temporarily for the Subproject, including: 1) The dam (junction area) is planned to acquire 240.94 mu of collective land, including 102.05 mu of cultivated land, affecting 29 households with 113 persons, acquire 11.39 mu of state-owned land permanently, and occupy 271.99 mu of land temporarily, affecting 68 households with 299 persons temporarily. 2) 1,616.26 mu of collective land will be occupied permanently for the inundated and affected (reservoir) areas, including 1,099.92 mu of cultivated land; and 234.72 mu of state-owned land occupied permanently, affecting 118 households with 518 persons permanently. 3) 16 mu of collective land will be occupied permanently for the water delivery and irrigation works area, including 15 mu of cultivated land, 359.92 mu of land occupied temporarily, including 341.27 mu cultivated land, affecting 23 households with 86 persons permanently. As of December 31, 2017, 2,049.7408 mu of collective land in Maling Xiang had been acquired or occupied, including 1,246.3848 mu of cultivated land, 14.7494 mu of garden land, 597.1088 mu of woodland, 177.8028 mu of construction land, 11.985 mu of unused land, 0.1 mu of grassland and 10

1.61 mu of fishpond. The dam (junction area), reservoir (inundated and affected areas), and water delivery and irrigation works involved land acquisition/occupation; among the 173 AHs, 145 have entered into LA compensation agreements (see Appendix 7). See Tables 2-5 and 2-6. As of December 31, 2017, Mengguan Waterworks was at the DMS stage, and the amount of compensation was still unclear. Table 2-4 shows statistics of LA and compensation for Mengguan Waterworks covered by the survey as of December 31, 2017. Table 2-4 Statistics of LA and Compensation for Mengguan Waterworks No. Land type LA area (mu) Unit price (0,000 Investment Plant Access road Total yuan/mu) (0,000 yuan) 1 Non-irrigated land 52.488 4.247 56.735 11.73 665.50 2 Irrigated land 8.347 5.979 14.326 11.78 168.76 3 Non-cultivated land 0 4.700 4.700 9.60 45.12 4 Collective land for Mengguan 30.365 \ 30.365 11.78 357.70 Waterworks 5 Collective land for access road \ 49.874 49.874 11.78 587.52 6 Total 91.2 64.8 156 \ 1824.597 2.2.2 HD According to the RAP, Residential houses of 46,527.55 m 2 will be demolished for the Subproject, affecting 173 households with 781 persons in 5 groups. As of December 31, 2017, 161 out of the 179 households affected by HD had entered into HD compensation agreements (see Appendix 5), and HD had not begun. According to the RAP, HD and resettlement should be completed by December 31, 2016. However, due to the construction impediment in September 2016 (see Chapter 5 for details), HD and resettlement are behind schedule. Mengguan Waterworks does not involve the demolition of residential houses. Figure 2-3 Residential houses to be demolished 2.2.3 Demolition of non-residential properties Non-residential properties of 1,306.07 m 2 will be demolished for the Subproject, affecting the village committee, Geyue Primary School and a timber processing plant, all in the inundated area, with demolition areas of 0.31 mu, 3.68 mu and 1.17 mu respectively. As of December 31, 2017, appraisal had been completed, but demolition has not begun, because construction had not necessitated demolition. Mengguan Waterworks does not involve the demolition of non-residential properties. 11

Figure 2-4 Non-residential Properties to be demolished Table 2-5 Collective land acquired / occupied for the Subproject (by group) 5 Village Group Cultivated Garden Woodland Construction Unused Grassland Fishpond land (mu) land (mu) (mu) land (mu) land (mu) (mu) (mu) Total (mu) Duimenhe 137.41 5.22 117.34 24.17 0.43 0.00 0.00 242.41 Maojiao 107.35 0.44 35.37 4.79 0.00 0.00 0.00 147.95 Haizhaitang 81.50 4.87 227.44 3.36 2.36 3.86 0.00 323.39 Hongyan 8.31 1.53 9.27 2.57 3.36 0.10 0.00 25.14 Potoushang 0.69 0.00 0.64 0.05 0.10 0.00 0.00 1.48 Maling Wengdoushan 0.22 0.00 6.16 6.68 0.00 0.00 0.00 13.07 Village, Gelou 553.78 0.82 99.51 64.45 1.41 0.00 1.61 721.58 Maling Xiang Geyue 66.04 0.49 21.86 14.22 0.00 0.00 0.00 102.61 Datiankan 219.49 1.37 76.64 56.85 3.16 0.00 0.00 375.51 Zhongyuanshan 3.45 0.00 0.00 0.00 0.00 0.00 0.00 3.45 Baohechong 6.68 0.00 0.00 0.00 0.00 0.00 0.00 6.68 Doupengshan 50.63 0.00 2.88 0.66 1.17 0.00 0.00 55.34 Dahuangdi 10.84 0.00 0.00 0.00 0.00 0.00 0.00 10.84 Total (mu) 1246.38 14.75 597.11 177.80 11.99 0.10 1.61 2029.74 Since the Subproject has long-lasting and extensive impacts, the temporarily occupied land will be compensated for as acquired collective land through consultation with the APs. In Tables 2-1 and 2-5, permanently acquired and temporarily occupied land areas are summed up. 12

Table 2-6 Collective land acquired / occupied for the Subproject (by component) Planned Actual Percentage of completion Work Temporarily Temporarily Temporary LA area LA area occupied land occupied land Total LA land (mu) (mu) area (mu) area (mu) occupation Total Dam (junction area) 270.99 271.99 270.99 271.99 542.98 100% 100% 100% Inundated and affected 1850.98 / 1850.98 / 1850.98 100% / 100% (reservoir) areas Water delivery and irrigation works 16.98 359.92 16.98 90 16.98 100% 25% 28.38% Total 2138.95 631.91 2138.95 361.99 2500.91 100% 57.29% 90.25% 2.2.4 Ground attachments In the junction area (area), threshing grounds of 29,000.59m 2, enclosing walls of 2,057.97m 2, retaining walls of 2,613.02m 3, 42 cellars, 186 cooking ranges, 226 toilets, water tanks of 376.0m 3, 28,672 scattered trees, 336 tombs and steel greenhouses of 7,722m 2 will be affected. See Table 2-7. As of December 31, 2017, 208 tombs had been relocated and compensated for, including 156 in the inundated area, 29 in the junction area, 20 at the resettlement sites, and 3 on the reconstructed road. Ground attachments affected by Mengguan Waterworks are still unknown. Table 2-7 Affected Ground Attachments No. Item Unit Inundated area Junction area Other area Total I Attached structures 1 Threshing ground m 2 29000.59 0 0 29000.59 1.1 Hardened m 2 27278.57 0 0 27278.57 1.2 Earth m 2 1722.02 0 0 1722.02 2 Enclosing wall m 2 2057.97 0 0 2057.97 3 Retaining wall m 3 2613.02 0 0 2613.02 4 Cellar / 42 0 0 42 5 Cooking range / 186 0 0 186 6 Toilet / 226 0 0 226 7 TV receiver / 231 0 0 231 8 Water tank m 3 376 0 0 376 9 Parterre m 3 72.49 0 0 72.49 10 Well / 3 0 0 3 11 Solar device / 18 0 0 18 12 Waste dump m 3 50.778 0 0 50.778 13 House decoration m 2 449.4 0 0 449.4 14 Biogas tank / 142 0 0 142 15 Gatehouse / 9 0 0 9 16 Bulletin board m 2 31.21 0 0 31.21 II Agricultural and sideline facilities 1 Cured tobacco house m 2 247.71 0 0 247.71 1.1 Masonry timber structure m 2 42.62 0 0 42.62 1.2 Earth structure m 2 205.09 0 0 205.09 2 Oil extraction equipment / 1 0 0 1 3 Liquor curing equipment / 6 0 0 6 4 Tofu processing equipment / 3 0 0 3 5 Rice processing equipment / 2 0 0 2 6 Water mill / 1 0 0 1 III Scattered trees and tombs 1 Scattered tree / 22750 4705 1217 28672 1.1 Commercial tree / 5400 146 305 5851 13

1.1.1 Adult tree / 4353 146 305 4804 1.1.2 Young tree / 1047 0 0 1047 1.2 Timber tree / 3977 1850 597 6424 1.2.1 Adult tree / 3210 1578 597 5385 1.2.2 Young tree / 767 272 0 1039 1.3 Fruit tree / 13115 2709 289 16113 1.3.1 Non fruit bearing / 8530 2431 0 10961 1.3.2 Fruit bearing / 4585 278 289 5152 1.4 Bamboo / 258 0 26 284 3 Tomb / 237 30 69 336 3.1 Stone tomb with tablet / 14 0 42 56 3.1.1 Tablet for 3 or above persons / 4 0 4 3.1.2 Ordinary tablet / 10 0 42 52 3.2 Stone tomb without tablet / 76 0 27 103 3.3 Earth tomb with tablet / 31 13 0 44 3.3.1 Tablet for 3 or above persons / 3 0 0 3 3.3.2 Ordinary tablet / 28 13 0 41 3.4 Earth tomb without tablet / 116 17 0 133 4 Steel greenhouse m 2 7722 0 0 7722 2.3 Evaluation According to the fieldwork, the task force concludes that: 1) Land approval: According to the survey, the feasibility study report and the preliminary design were completed on schedule; preliminary land examination was scheduled for February 2014, and was approved in February 2014. As of December 31, 2017, the land use application had not been approved, which was expected to be approved in December 2018. Resettlement is expected to be completed in March 2018. The feasibility study report and preliminary design of Mengguan Waterworks were completed on schedule; the preliminary land examination was scheduled for October 2017, but actually approved in June 2017; the feasibility study report was scheduled for December 2017, but actually approved in September 2017; the preliminary design was scheduled for March 2018, and has been reviewed by the municipal development and reform commission but not approved. The land use application has been drafted, pending approval due to the unavailability of land quota. Approval is expected to be available in June 2018. 2) LA: According to the RP, 1,873.2 mu of collective land will be acquired permanently for the Subproject, including 240.94 mu for the dam (junction area), 1,616.26 mu of collective land for the inundated and affected (reservoir) areas, and 16 mu for the water delivery and irrigation works area. As of December 31, 2017, 2,049.7408 mu of collective land in Maling Xiang had been acquired or occupied, including 542.98 mu for the junction area, 1,850.98 mu for the inundated and affected (reservoir) areas, and 16.98 mu for the water delivery and irrigation works area. Mengguan Waterworks is at the DMS stage, and LA has not begun. The DMS is expected to be completed in April 2018. 3) HD: It is planned that residential houses of 46,527.54 m 2 and non-residential properties of 1,306.07 m 2 will be demolished. As of December 31, 2017, HD for the Subproject had not begun. Mengguan Waterworks does not involve HD. 4) The overall LA progress of the Subproject is behind schedule due to the new municipal LA compensation policy that became effective on January 1, 2017 (see Appendix 1). Through consultation with the APs, the PMO has decided to apply the new rates in a unified manner. The difference for the AHs who had received compensation before 2017 had been fully paid by the end of 2017 (see Appendix 14). In addition, some AHs think that the HD compensation rate of 1,450.5 yuan/m 2 is too low, and are unwilling to enter into agreements. Explanation and publicity should be strengthened to solve this issue. 14

3 Compensation Rates, and Fund Disbursement and Use 3.1 Resettlement Policy Framework The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of the PRC, Guizhou Province and ADB, including: Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004) Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (effective from October 21, 2004) Regulations on the Implementation of the Land Administration Law of the PRC (effective from January 1, 1999) Regulations on the Expropriation of Buildings on State-owned Land and Compensation Therefor (Decree No.590 of the State Council) Interim Regulations of the PRC on Farmland Occupation Tax (effective from April 1, 1987) Regulations on the Protection of Basic Farmland (effective from January 1, 1991) Regulations on Public Hearing on Land and Resources (effective from May 1, 2004) Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004) Administrative Measures for the Preliminary Examination of Land for Project Construction (Decree No.27 of the Ministry of Land and Resources) (effective from November 1, 2004) Measures for Announcement of Land Acquisition (effective from January 1, 2002) Notice of the Provincial Government on Strengthening the Land Acquisition Management of Key Construction Projects (GPG [2004] No.5) Notice of the General Office of the Guizhou Provincial Government on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (GPGO [2007] No.126) Measures of Guizhou Province for the Implementation of the Land Administration Law of the PRC (Amended) (July 1, 2004) Implementation Measures for Farmland Occupation Tax of Guizhou Province (GPG [1987] No.55) Administrative Measures for Compensation for Woodland of Guizhou Province (Decree No.124 of the Guizhou Provincial Government) Land Administration Regulations of Guizhou Province (effective from January 1, 2001) Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Updated Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition of Guiyang City (GMG [2016] No.28) Notice of the General Office of the Guizhou Provincial Government on the Connection between Old and New Compensation Rates for Land Acquisition (GPGO [2010] No.6) Handbook on Resettlement: A Guide to Good Practice, 1998 Safeguard Policy Statement (SPS), June 2009 ADB s Public Communications Policy, 2011 ADB s Accountability Mechanism Policy, 2012 According to the above laws, regulations and policies, the basic principles for resettlement of the Subproject are as follows: Adverse impacts should be minimized; If resettlement is inevitably, the affected villages and residents should be consulted to fix replacement costs and compensation rates; Necessary compensation and assistance should be provided to the affected population to improve or at least restore their income and living standard; The APs should receive sufficient information on compensation agreements, which should be prepared through adequate consultation with them; Special attention should be paid to vulnerable groups; Special attention should be paid to impacts on ethnic minorities and their restoration. 3.2 Compensation Rates The compensation rates for permanent LA under the Subproject are based on the applicable policies of Guizhou Province and Guiyang City, including the Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Uniform Annual Output Values and 15

Location-based Compensation Rates for Land Acquisition (GMG [2009] No.100), Notice of the General Office of the Guizhou Provincial Government on the Connection between Old and New Compensation Rates for Land Acquisition (GPGO [2010] No.6), etc., and by reference to land type, period of land use, etc. The compensation rates specified in the Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Updated Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition of Guiyang City (GMG [2016] No.28) (Appendix 1) apply to the Subproject and Mengguan Waterworks, being 54,200 yuan/mu for cultivated land and 21,680 yuan/mu for non-cultivated land. See Table 3-1. The difference in land compensation for Maling Xiang has been paid successively. See Appendix 14. Township Table 3-1 LA Compensation Rates Type of compensation Cultivated land compensation + Maling resettlement subsidy Xiang Uncultivated land compensation + resettlement subsidy Cultivated land compensation + Mengguan resettlement subsidy Xiang Uncultivated land compensation + resettlement subsidy Cultivated land compensation + Qingyan resettlement subsidy Town Uncultivated land compensation + resettlement subsidy Note: HD has not begun to date. Rate specified in the RP (yuan/mu) 43,800 yuan/mu 17520 yuan/mu Rate under the new policy (yuan/mu) 54,200 yuan/mu 21,680 yuan/mu Difference (yuan/mu) 10,400 4,160 95000 yuan/mu / / 38000 yuan/mu / / 74000 yuan/mu / / 28600 yuan/mu / / 3.3 Fund Disbursement Resettlement funds must be disbursed in strict conformity with the policies and compensation rates specified in this RP. In order that resettlement funds are available timely and fully to ensure the restoration of the production level and living standard of the AHs, the following measures will be taken: 1) All costs related to resettlement will be included in the general budget of the Subproject. 2) Land compensation fees and resettlement subsidies will be fully paid within 7 days after land supply by the AHs to ensure that all APs are resettled properly. 3) Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available. 4) The municipal and district finance and audit departments have the power to monitor and audit the use of special funds. As of December 31, 2017, rural resettlement costs of 127.4904 million yuan had been paid in Maling Xiang, Huaxi District, including land compensation 101.7464 million yuan, ground attachment compensation of 14.2908 million yuan, house compensation of 11.0233 million yuan, and resettlement subsidy of 425,300 yuan. See Table 3-2 and Appendix 13. As of December 31, 2017, Mengguan Waterworks was at the DMS stage, and the amount of compensation was still unclear. Land compensation is expected to be fully paid by the end of February 2018. According to this round of M&E, sufficient funds are available under the Subproject for current and future compensation and resettlement. 3.4 Fund Distribution According to the RAP, compensation for acquired collective land includes land compensation and resettlement subsidy, in which 8% will be withheld by the village collective and the balance paid to the AHs. HD compensation will be fully paid to the AHs. 16

3.5 Evaluation 1) The LA compensation rate of the Subproject specified in the RP is 43,800 yuan/mu, lower than the new rate of 54,200 yuan/mu that became effective on January 1, 2017. HDG decided in May 2017 that the new rate would apply to LA for the Subproject, and retroactively to Maling Xiang where LA had been completed. 2) As of December 31, 2017, the LA compensation based on 54,200 yuan/mu had been paid to the AHs timely and fully, and the difference from the new rate had been paid. See Appendix 14. The affected collective will withhold 8% of land compensation, and use it for public facility construction, such as roads and streetlamps, or industry development. Villagers generally accept this practice, but some think that the proportion should be lower. 17

Table 3-2 Resettlement Budget and Fund Disbursement Unit: 0,000 yuan Inundated area Junction area Water delivery and irrigation works No. Item overall Planned investment Actual investment Percent (%) Planned investment Actual investment Percent (%) Planned investment Actual investment Percent (%) Rural resettlement costs 16323.31 12128.44 8761.26 72.24% 1590.13 2637.88 165.89% 2604.74 780 30% Land compensation and resettlement subsidy 5515.24 5515.24 6283.28 113.93% 1533.33 2588.98 168.85% 2578.26 780 30.25% HD and attachment compensation 3806.17 3806.17 2377.99 62.48% / / / / 0 0 1 Compensation for agricultural and sideline facilities 26.6 26.60 10 37.59% / / / / 0 0 Compensation for scattered trees and tombs 114.67 114.67 62.4 54.42% 16.47 13.62 100% 18.31 13.83 76% Compensation for trees 53.38 53.38 27.59 51.67% 40.33 35.28 87.48% 8.17 0 0 Other costs 2807.03 2807.03 0 0 / / / / 0 / 3 Restoration costs of special facilities 2587.62 2587.62 694.43 27% / / / / 0 / 4 Reservoir or site clean-up costs 197.17 197.17 0 0 / / / / 0 / 5 Other costs 2594.18 1998.5 303.389 15% 225.8 / / 369.88 0 0 6 Taxes 4543.78 3925.86 2700 68% 181.59 / / 52.59 0 0 7 Basic contingencies 4096.72 3617.67 2000 55% 565.33 / / 297.46 0 0 8 Gross investment 30342.78 24455.26 0 0 2562.85 1596.81 62.30% 3324.67 780 23.46% Where: 18

4 Resettlement and Livelihood Restoration 4.1 Resettlement and Livelihood Restoration 4.1.1 Basic information of Maling Village and socioeconomic impacts Maling, Geyue and Shapo Villages affected by the Subproject merged into Maling Village after the beginning of the Subproject in 2013. Maling Village is located in central Maling Xiang, and governs 9 groups. The village has 1,300 households with 4,330 persons, including a minority population of 900, composed mainly of Miao (600) and Buyi (300) people, and 7,856 mu of cultivated land, 1.81 mu per capita. The village is a poor village due to insufficient land and backward production. In 2017, the village s gross output value was 15 million yuan, and farmers per capita disposable income about 7,000 yuan. In the village, vegetable cultivation has been developed greatly since 2007, with a vegetable cultivation area of over 500 mu in 2015. A standard vegetable base has been established and an aquaculture project introduced, further accelerating industry restructuring and new countryside building. In January 2018, MXG decided to implement agricultural restructuring (see Appendix 20), where vegetables, tealeaf, fruit trees, flowers, characteristic farm product processing, and rural tourism services would be developed. 4.1.2 Socioeconomic impacts and resettlement measures As of December 31, 2017, 2,049.7408 mu of collective land in Maling Xiang had been acquired or occupied, including 1,246.3848 mu of cultivated land, 14.7494 mu of garden land, 597.1088 mu of woodland, 177.8028 mu of construction land, 11.985 mu of unused land, 0.1 mu of grassland and 1.61 mu of fishpond. According to the survey, the compensation for the land acquired in Maling Village (for the dam area) has been paid to the AHs. In addition, HDG has granted a moving subsidy of 30,000 yuan to each AH, and any AH with difficulty in house construction will be entitled to a resettlement house size of 25m 2 per capita. LA has affected the agricultural income of the APs to some extent (their main income sources are farming, outside employment, and small business, in which agricultural income accounts for 50%). Training and employment guidance has been offered to villagers in Maling Xiang, including: In January 2016, the first rural e-business training course of Huaxi District was offered in Mengguan Xiang by the Huaxi District Labor and Social Security Bureau, and the Mengguan Xiang Government. There were 35 trainees, including 8 females, accounting for 22.9%. The training focused on the rural e-business service platform Qianjishi, and taught how to run online stores to sell farm products. Figure 4-1 Photo of e-business Training 19

In June 2016, the Huaxi District Labor and Social Security Bureau organized a special job fair for rural low-income residents on Huanghe Road, at which 23 enterprises offered over 400 unskilled jobs, including waiter, security guard, driver, cleaner and courier. Through assistance and guidance, over 100 rural residents found jobs. At the job fair, publicity on employment and business startup was also conducted. Figure 4-2 Photo of Job Fair In October 2017, the Huaxi District Labor and Social Security Bureau, Maling Xiang Women s Federation, and Guiyang Electronic Vocational School offered 50-day skills training on Chinese cuisine to 60 women in Maling Xiang. The trainees learned how to prepare over 100 dishes, and passed the examination successfully. Figure 4-3 Chinese cuisine training In November 2017, the Maling Xiang Labor and Social Security Center invited professionals to train farmers on pig raising and quarantine, involving 59 out of the 95 low-income households affected by the Subproject, accounting for 62.11%. 20

Figure 4-4 Pig raising training In addition, the Guiyang Municipal Government and HDG have approved 20 million yuan for the livelihood restoration of all farmers affected by various projects in Huaxi District. HDG offers employment and business startup assistance to eligible low-income rural households (see Appendixes 18 and 19). These measures have promoted the livelihood restoration of the APs in the Subproject to some extent. 4.1.3 Endowment insurance for LEFs According to the survey, the endowment insurance policy for LEFs of this subproject are based on the Notice of the Guiyang Municipal Government on Issuing Opinions on Social Endowment Insurance for LEFs, and the Implementation Plan of Huaxi County for the Employment and Social Security of LEFs. Since the subsequent support policy for LEFs overlaps with social security, and the state has not enacted any applicable policy, endowment insurance for LEFs had not been covered as of December 31, 2017. 4.1.4 Resettlement site construction The APs under the Subproject are subject to centralized resettlement, As of December 31, 2017, The infrastructure construction of the Shilang resettlement site had been completed, while that of the Dahuangdi resettlement site was underway, and was expected to be completed by the end of January 2018. House construction and handover is scheduled for April 2018 (before the flood period) for both resettlement sites. Figure 4-5 Plan of resettlement sites 21

Figure 4-6 Current situation of the Dahuangdi and Shilang resettlement sites 4.2 Women The affected population includes 690 females, accounting for 46%. According to the survey, local women enjoy high status, and major family matters are decided jointly by couples. Although men are the family backbone and attend village meetings, they would consider their wives opinions before attending meetings. Women do housework and some manageable farm work mainly, while men mostly do farm work and work outside. 4.2.1 Training In 2015, two training courses were offered in Maling Village, including an embroidery course for 40 women in the first half year, and a crop cultivation and pest control course for 60 trainees (35 women, accounting for 58.3%) in the second half year. In August 2015, officials of grass-root women s federations in Huaxi District were trained in order to protect the rights and interests of women and children practically, and promote social harmony and stability. In May 2016, mushroom cultivation training was offered in Maling Village to 30 trainees, including 10 females, accounting for 33.3%. In July 2016, the Huaxi District Women s Federation organized a minority embroidery experience event through work exhibition and on-site demonstration, introducing the history, features and skills of Huaxi minority embroidery to visitors, and also generating more employment and business startup opportunities for local women. In February 2017, the Huaxi District Women s Federation, the Maling Xiang Women s Federation, and the Maling Xiang Labor and Social Security Service Center offered an embroidery training course to over 50 minority women together with Guiyang Tingting Vocational Training School. In April 2017, the Maling Xiang Women s Federation gave publicity on family education to kids and parents together with Maling Xing Central Kindergarten. Figure 4-7 Photo of Embroidery 22

Figure 4-8 Publicity on scientific family education 4.2.2 Unskilled Jobs As of December 31, 2017, some unskilled jobs generated by the Subproject had been offered to local laborers (material handling, cooking, security, etc.). See Table 4-1. Table 4-1 Employment statistics Locally employed Women Vulnerable groups Persons Project employed Jobs Persons Monthly Jobs Persons Monthly Jobs Persons Monthly pay pay pay Subproject 30 20 20 2000 10 10 2000 0 0 0 4.3 Vulnerable Groups For the purpose of the Subproject, vulnerable groups include the disabled, five-guarantee households, widows, low-income or poor population, and ethnic minorities. Among the affected population, 26 households with 90 persons fall into vulnerable groups. See Error! Reference source not found.. Table 4-2 Statistics of Impacts on Vulnerable Groups Component Village group Head of vulnerable Household household population Vulnerable group Haitangzhai YXL 7 Disability / MLS Dam area Haitangzhai QDG 4 Disability / MLS Haitangzhai YDY 3 Disability / MLS Haitangzhai YMY 4 Disability / MLS Duimenhe YXG 4 Disability / MLS Duimenhe CLY 4 Disability / MLS Duimenhe DAL 4 Disability / MLS Geyue HYG 5 Disability / MLS Datiankan LKX 2 Disability / MLS Datiankan CDX 3 Disability / MLS Datiankan PYM 3 Disability / MLS Reservoir Maojiao YZF 5 Disability / MLS area Maojiao YWF 6 Disability / MLS Maojiao YWQ 3 Disability / MLS Gelou TJQ 1 Disability / MLS Gelou YXG 6 Disability / MLS Gelou YQC 4 Disability / MLS Gelou YDS 2 Disability / MLS Gelou YLY 1 Disability / MLS Gelou YXY 6 Disability / MLS 23

Gelou YXA 2 Disability / MLS Gelou YCW 4 Disability / MLS Gelou WXX 1 Disability / MLS Gelou WXS 1 Disability / MLS Gelou LGC 3 Disability / MLS Gelou YCK 2 Disability / MLS Subtotal 26 households 90 The vulnerable households affected by the Subproject are entitled to all benefits specified in the Law of the People s Republic of China on the Protection of the Disabled, where MLS households receive a rural MLS benefit of 160 yuan/month per capita, households affected by disability receive 110% of the local rural MLS benefit, and old people aged above 70 years receive 120% of the local rural MLS benefit. According to the Notice on Raising Urban and Rural MLS Standards of Huaxi District in 2017 issued in December 2016, the rural MLS standard of Huaxi District has risen to 3,840 yuan per capita per annum. In addition, the Guiyang PMO, IAs and HDRB will pay special attention to vulnerable groups together with the civil affairs authority: 1) Establish a special fund to support vulnerable groups, specifically as living subsidies during relocation and in the early stage of resettlement. Fixed-amount compensation for poor and difficult households has risen from 360 yuan per month to 500 yuan per month, and these households would be granted daily necessities for free on holidays (see Appendix 21). 2) The PMO will assist households in difficulty in obtaining loans from local credit cooperatives with collective guarantee. 3) Offer vocational training to laborers in vulnerable households, and employment information and guidance during implementation to increase their job opportunities; offer means of production to poor population for free. 4) HDG offers employment skills training, business startup subsidies and loans, etc. to low-income rural households. 5) HDG has granted a moving subsidy of 30,000 yuan to each AH, and any AH with difficulty in house construction will be entitled to a resettlement house size of 25m 2 per capita. 4.4 Evaluation 1) LA has affected farmers to some extent, and reduced their land-based income. Currently, most land-expropriated farmers are making a living by working outside or doing small business. Reemployment training has been offered in Maling Xiang for APs, such as crop cultivation, stockbreeding, cooking, Internet and embroidery, and recognized extensively by villagers. 2) The government attaches great importance to the development of vulnerable groups, and provides necessary living and production support to them. MLS benefits have been paid on schedule. 3) Local minority residents enjoy the same rights in LA and HD compensation and resettlement as Han residents, and priority in employment and skills training under the Subproject. 24

5 Public Participation, Information Disclosure and Grievance Redress 5.1 Public Participation Public participation is an important means to ensure the successful implementation of resettlement. At the feasibility study, RP preparation and implementation stages, the PMO conducted a series of activities to involve the APs in the Subproject. See Table 5-1. Table 5-1 Key Public Participation Activities Purpose Mode Time Agencies Participants Topics Disclosing subproject information to APs, and collecting their opinions and comments Field visit Mar. 2012 Feb. 2013 Guiyang PMO, IA All APs Scope of construction DMS Communicating resettlement policies, conducting a socioeconomic survey, discussing resettlement programs and compensation rates Discussing restoration measures, resettlement sites, special facility compensation and reconstruction, etc. Three-time disclosure of DMS results Publicity on project policies Communicating resettlement impacts and policies, grievance redress mechanism, etc. Solving issues reported by APs Village bulletin board, meeting, congress Village bulletin board, meeting, congress Village bulletin board, meeting, congress Bulletin board Mar. Nov. 2013 Mar. Nov. 2013 Apr. 2013 Jun. 2014 Design agency, Guiyang PMO, Zhushui, HDG, agencies concerned All APs Resettlement impacts HDG, MXG All APs Information disclosure, resettlement and compensation HDG, MXG All APs Information disclosure, livelihood restoration, HD resettlement Oct. Dec. 2015 Training Jul. 2016 HDRB Resettlement staff, township officials RIB distribution Document issue MXG All APs DMS results 25 Resettlement publicity and training Aug. 2016 MXG All APs Impacts, resettlement policies, rights protection, information disclosure Nov. 2016 Hongyan Reservoir Construction Headquarters All APs Reply to the Comments and Requirements on Land and House Compensation, and Resettlement in the Inundated Area (Geyue, Duimenhe, Datiankan and Gelou Groups) At the resettlement planning stage, great importance was paid to public participation and consultation. During the feasibility study, the PMO and design agency collected comments on the subproject design from the local government, agencies concerned and APs extensively. At the implementation stage, the PMO also held FGDs with officials of local government agencies and village committees regularly. From March 2012 to February 2013, when the design agency conducted the field survey, the Guiyang PMO and IA communicated the scope of construction and possible impacts of the Subproject to local residents, and solicited their comments.

During March-November 2013, Hydrochina Guiyang Engineering Corp., the Guiyang PMO, Zhushui, HDG, and district departments concerned organized a joint task force, which conducted a DMS. During the DMS, the measuring staff measured the houses to be demolished, and notified measuring results to the AHs for verification. During March-November 2013, HDG and MXG communicated resettlement policies to the APs, and conducted a socioeconomic survey and consultation on compensation rates. From January 2013 to June 2014, HDG and MXG consulted on livelihood restoration measures, resettlement site selection, special facility compensation and reconstruction, etc. with the APs. In October 2015, the DMS was conducted. During October-December 2015, MXG organized 3 rounds of disclosure in each village group. In July 2016, HDRB held a resettlement publicity and training meeting, involving 10 attendees (4 females), including staff members of the PMO and IAs, and township officials. Figure 5-1 Q&A on Subproject Policies In August 2016, MXG distributed the RIB to the AHs. In November 2016, the Hongyan Reservoir Construction Headquarters issued the Reply to the Comments and Requirements on Land and House Compensation, and Resettlement in the Inundated Area (Geyue, Duimenhe, Datiankan and Gelou Groups). 8% of land compensation withheld by the collective has been used for public facility construction, such as roads and streetlamps, or industry development. A square has been built to meet women s need for dancing. Figure 5-2 Relocation mobilization meeting 26

Figure 5-3 Village congress 5.2 Information Disclosure The village-level DMS of the Subproject was completed in mid June 2013. MXG conducted the first round of disclosure on July 20, 2013. Afterwards, 109 applications for verification were received. On August 6, 2013, the handling of these applications began. On September 9, 2013, MXG conducted the second round of disclosure for 7 days, during which ownership disputes that had not been settled were identified. On November 6, 2013, MXG conducted the third and final round of disclosure. Figure 5-4 Photos of Three-time Disclosure The group-level DMS of the Subproject was completed in mid October 2015. During October-December 2015, MXG organized 3 rounds of disclosure in each village group. 27

Figure 5-5 Photos of Three-time Disclosure Figure 5-6 Villagers Reading Resettlement Policy Outlines Figure 5-7 Tomb Relocation Announcement 28

Figure 5-8 List of Resettled Population (Duimenhe Group of Maling Village) In December 2017, MXG disclosed resettlement house sizes confirmed by AHs. Figure 5-9 List of AHs with resettlement house sizes confirmed In December 2017, resettlement house allocation was disclosed in the affected village groups for 5 days. 29

Figure 5-10 Disclosure of resettlement house allocation The APs are highly satisfied with information disclosure, which is conducted by means of brochure, bulletin board, etc. Figure 5-11 Bulletin board of the Maling Xiang Women s Federation Figure 5-12 Announcement of construction blasting 30

Figure 5-13 Bulletin board in a village group 5.3 Grievance Redress 5.3.1 Procedure A grievance redress mechanism has been established to ensure the successful implementation of LA and resettlement. Stage 1: If any AP is dissatisfied with the RP, he/she can file an oral or written appeal to the village committee or township resettlement office orally or in writing. In case of an oral appeal, the village committee or township resettlement office shall handle such appeal and keep written records. Such appeal should be solved within one week. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to HDRB after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to Zhushui after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to the Guiyang PMO after receiving such disposition, which shall make a disposition within two weeks. At any stage, an AP may bring a suit in a civil court directly if he/she is dissatisfied with the grievance redress procedure or disposition. All grievances, oral or written, will be reported to ADB in internal and external resettlement monitoring reports. If any AP may also file an appeal with the Office of the Special Facilitator or Compliance Review Panel of ADB in accordance with ADB s accountability mechanism 6. HDRB had distributed the RIB to MXG by the end of July 2016, which distributed the RIB to the AHs in early August, so that the APs can learn the above appeal channel through the RIB. 6 See http://www.adb.org/accountability-mechanism/default.asp. 31

Figure 5-14 Grievance Redress Mechanism 5.3.2 Appeal Handling As of December 31, 2017, the grievances and appeals accepted by the IAs involved DMS results, compensation rates, etc., as detailed in Appendix 15. Special attention will be paid to grievances and appeals in future M&E, and handling results will be submitted to ADB. 5.4 Evaluation 1) Great importance has been attached to information disclosure at all stages of the Subproject, and extensive consultation conducted with the APs, social organizations and government agencies to collect their opinions, and involve them in resettlement and restoration. 2) The DMS results have been disclosed 3 times, and resettlement house allocation information disclosed; the APs are highly satisfied with information disclose. 3) The agencies concerned have paid close attention to grievances and appeals, and handled grievances and appeals timely and properly to the satisfaction of the APs. 32

6 Sampling Survey During January 22-25, 2018, the task force conducted a baseline survey on 51 households out of the 343 AHs in the subproject area, with a sampling rate of 14.87%, including 29 in the junction area, 6 in the inundated area, and 6 in the water delivery and irrigation area, covering population, residential conditions, household income and expenditure, etc. See Appendixes 16, 17, 18 and 19 for interview minutes. 6.1 Population The 51 sample households have 231 persons in total; including 113 females, accounting for 48.9%; 127 laborers, accounting for 55.0%; 44 supported/old people, accounting for 19.1%; and 58 underage people/schoolchildren, accounting for 25.1%. The 231 samples include 161 Han people, accounting for 69.7%; 46 Miao people, accounting for 19.9%; and 24 Buyi people, accounting for 10.4%. 6.2 Residential Conditions The houses of the 51 sample households are in masonry concrete and timber structures mainly, with an average size of 181.0 m 2 per household. 6.3 Land Utilization Among the 51 sample households, average cultivated area is 4.90 mu per household or 1.08 mu per capita. The main crops are paddy rice, rape, corn and cowpea. 6.4 Annual Household Income and Expenditure In 2017, the per capita income of the sample households was 9,582.6 yuan, including agricultural income of 2,487.2 yuan, sideline income of 1,846.3 yuan, employment income of 4,623.5 yuan, and other income of 625.5 yuan. In 2017, the per capita expenditure of the sample households was 5,228.6 yuan, and the top 3 expenditure items was non-staple food (2,328.6 yuan), communication (656.4 yuan), and education (483.6 yuan). In 2016, per capita net income was 7,646.2 yuan. Table 6-1 Follow-up Survey on Income and Expenditure Item Amount (yuan) Per capita in Percent 2017 (yuan) (%) Annual income 43409.22 9582.61 100% Agricultural income 11267.11 2487.22 25.96% Sideline income 8363.83 1846.32 19.27% Employment income 20944.59 4623.53 48.25% Other income 2833.70 625.54 6.53% Annual expenditure 23685.42 5228.57 100% 1) Seeds 550.67 121.56 2.32% 2) Pesticides and fertilizers 647.16 142.86 2.73% 3) Mechanized farming 718.32 158.57 3.03% 4) Irrigation 572.23 126.32 2.42% Productive expenditure 2488.38 549.31 10.51% 5) Electricity 1164.86 257.14 4.92% 6) Domestic water 347.32 76.67 1.47% 7) Communication 2973.51 656.40 12.55% 8) Education 2190.84 483.63 9.25% 9) Medical care 1645.48 363.24 6.95% 33

10) Fuel 554.34 122.37 2.34% 11) Non-staple food 10548.42 2328.57 44.54% 12) Other 1772.27 391.23 7.48% Nonproductive expenditure 21197.04 4679.25 89.49% Balance 19723.8 4354.05 / Net income 40920.84 9033.3 / 7% 26% 农业收入 48% 副业收入 打工收入 其他收入 19% Figure 6-1 Per Capita Income Structure of APs 11% 生产性支出 消费性支出 89% Figure 6-2 Per Capita Expenditure Structure of APs 6.5 Satisfaction Survey 1) The APs have known about the Subproject by means of village meeting, government leaflet and neighborhood discussion, are generally satisfied with the DMS results, and are aware of the resettlement policies and compensation rates. 2) The APs think that information disclosure is adequate, but that the compensation rates should be increased, and the proportion of 8% of collective withholding is slightly high. 3) The APs support the Subproject, because it is beneficial to all people, and are satisfied with the role of village organizations during resettlement planning and implementation. Their opinions and suggestions are partly adopted by competent authorities. 34

7.1 Overview 7 EMDP The main ethnic minorities affected by the Subproject are Miao and Buyi. The junction construction area has a minority population of 61, accounting for 10.99% of gross population; the minority population includes 31 Miao people, accounting for 50.82%; and 30 Buyi people, accounting for 49.18%. The inundated area has a minority population of 429, accounting for 21.13% of gross population; the minority population includes 156 Miao people, accounting for 36.36%; and 273 Buyi people, accounting for 63.63%. The minority APs enjoy the same social and economic status as local Han people. All local ethnic groups intermarry and use Chinese. The local ethnic minorities show no difference from Han people except for ethnic festivals. 7.1.1 Profile of Minority Population in the Beneficiary Area 1) Water supply area According to the feasibility study report, the Subproject will supply water to southern Guiyang, which had a population of 523,600 in 2010, including an urban population of 329,500 (including a 5% floating population), and a rural population of 194,100, with an urbanization rate of 62.9%. Mengguan and Qingyan Towns, and University Cluster Zone in Huaxi District, and Ergezhai Town and Xiaomeng Industrial Park in Nanming District are main areas of central water supply. In the water supply area, University Cluster Zone has a planned population of 135,000 in Phase 1 and 145,000 in Phase 2, totaling 280,000; Xiaomeng Industrial Park has a planned population of 85,000. To date, Mengguan, Qingyan and Ergezhai Towns have 24,478 households with 103,323 persons in total, including 49,937 women, accounting for 48.33%; and a minority population of 20,094, accounting for 19.45%. In minority population, there are 5,597 Miao people, accounting for 27.85% of minority population; and 8,317 Buyi people, accounting for 41.39%. 2) Irrigation area According to the feasibility study report, the irrigation area involves Maling Village, Maling Xiang only. Its mode of irrigation will be gravity irrigation from an elevated water tank at the level of 1,200m, and its range of irrigation will be 1,200m-1,080m around the water tank. The Subproject has a designed irrigated area of 3,060 mu, including 2,499 mu of irrigated land and 561 mu of non-irrigated land. Maling Village is located in the center of Maling Xiang, and has 1,214 households with 4,956 persons, including 345 minority households with 1,325 persons, mostly Buyi and Miao people, which account for 95% of minority population. 7.1.2 Profile of Minority Population in the Affected Area According to the feasibility study report, the inundated area and junction construction area all occupy land in Maling Xiang. Maling Xiang is located in southwestern Huaxi District, governs 8 administrative villages and 77 village groups, and has 1,938 households with 8,585 persons, including a minority population of 4,421, accounting for 52.4%. Maling Xiang is one of the 7 minority townships of Huaxi District, inhabited by Buyi and Miao people, who maintain ethnic characteristics in production and lifestyle. 1) Inundated area The inundated area affects 518 households with 2,030 persons in 15 village groups of two natural villages in Maling Village, including 933 women, accounting for 45.96%; and 429 minority residents, accounting for 21.13%. In minority population, there are 156 Miao people, accounting for 36.36%; and 273 Buyi people, accounting for 63.63%. 2) Junction construction area The junction construction area affects 152 households with 555 persons in 6 village groups of 35

Geyue Group of Maling Village, including 254 females, accounting for 45.77%; and 61 minority residents, accounting for 10.99%. Minority population includes 31 Miao people, accounting for 50.82%; and 30 Buyi people, accounting for 49.18%. 7.2 Evaluation of EMDP Implementation The Subproject will have both positive and negative impacts on local minority residents across multiple dimensions, as detailed in Table 7-1. 36

Table 7-1 Monitoring of EMDP Implementation Action Population Implemented by Stage Actions Funding Monitoring indicators Implementation I. Measures to Enhance Positive Benefits 1. Allocating job opportunities rationally Project budget, special funds of agencies 1) Proportion of APs placed to unskilled jobs 2) Men-times of local vulnerable groups placed concerned; to unskilled jobs 0.2 million. 2. Strengthening training and education, and developing characteristic minority industries 4,956 persons in Maling Village, including 2,100 Buyi people and 1,210 Miao people; 700 laborers needed, accounting for 14.12% 4,956 persons in Maling Village, including 2,100 Buyi people and 1,210 Miao people; 3,200 men-times trained, accounting for 64.6% PMO, construction agency, women s federation, ethnic and religious affairs bureau, township governments, village committees, Zhushui PMO, Zhushui, agriculture bureau, ethnic and religious affairs bureau, women s federation, township governments, village committees II. Measures to Reduce Potential Risks Construction Construction 1) Jobs generated by the Subproject will be first made available to households affected by LA and HD. 2) At the construction stage, not less than of 30% unskilled jobs will be first made available to local vulnerable groups, including ethnic minorities, women and the poor. During employment, the provisions of the labor law on remuneration and personal safety will be complied with. 3) Local women are encouraged to offer catering and other services to increase income. 1) Beautiful countryside building: In the Subproject, special funds for beautiful countryside building may be coordinated to develop local natural resources and rural tourism. 2) Minority handicrafts training: Traditional Buyi dyeing and other similar training will be offered to promote the development of rural tourism and increase women s income. 3) Crop cultivation and management training: Training on the cultivation of commercial crops, crop cultivation and management, pest control, etc. will be offered. 4) The time, place, form and language of training will be suitable for minority residents. Funds of agriculture bureau, women s federation, ethnic and religious affairs bureau; 1.5 million 1) Progress of beautiful countryside building 2) Training records 3) Frequency and scope of training, number of trainees, and proportion of minority residents and women trained 4) Times, places and modes of training 1) About 30 unskilled jobs are offered (see Table 4-1); 2) About 100 men-times of vulnerable groups are placed to unskilled jobs under the Subproject, mostly cooking and property management. 1) Beautiful countryside building includes planting and natural forest conservation; 2) Training covers animal breeding and epidemic prevention, minority embroidery and cooking, with 53% of trainees being minority residents (see Table 7-2); 3) A minority handicrafts studio has employed 3 APs. 37

1. Developing livelihood and income restoration programs to reduce LA and HD risks 2. Strengthening publicity to ensure construction safety, and protecting local residents lives from construction 184 households with 731 persons in Geyue Group in the inundated area 4,956 persons in Maling Village, including 855 Buyi people and 570 Miao people PMO, Zhushui, design agency, township governments, village committees PMO, Zhushui, design agency, construction agency, township governments, village committees Construction & operation Construction 1) LA and HD will be minimized in project design and implementation, and full compensation provided to the APs; 2) Livelihood and income restoration measures will be taken to minimize resettlement impacts; 3) Resettlement programs will be based on the APs comments and suggestions; 4) Women will have the right to receive LA and HD compensation fees as men do; 5) Characteristic minority tourism will be developed in combination with the natural landscape around the reservoir. 1) During construction, the construction staff will respect local minority customs to avoid conflicts; The construction camp will be separated from civil residences to reduce living and entertainment overlapping. Minority workers customs will be respected, and a separate cooking range may be set up for them. The construction camp will be managed properly, overnight outing avoided where possible, and wastewater and solid waste collected timely and disposed of properly to avoid pollution to the local environment. 2) The construction agency will take noise reduction measures, set up non-horning signs in villages, and minimize overnight construction; 3) Construction information will be notified to local residents in advance, and safety protection measures taken; 4) Safety signs will be set up on important road segments; 5) Construction safety management will be included in the construction contract, and Project budget, special funds of agriculture bureau, women s federation, ethnic and religious affairs bureau, etc.; 1 million Project budget; 0.2 million 1) Have the APs received full compensation? 2) Participation in the Subproject 3) Comments on resettlement programs 4) Can women receive LA and HD compensation fees? 5) Livelihood and income restoration measures 1) Records of conflicts between the construction agency and local residents 2) Noise reduction measures taken 3) Frequency of overnight construction 4) Noise standard 5) Number of non-horning signs 6) Disclosure of construction information and safety management 1) Full compensation has been granted; 2) Adequate public participation is ensured through extensive publicity, consultation and disclosure since 2013 (See Section 5.1); 3) The APs expect minority squares, industrial buildings and landscaping; 4) Women can receive compensation; 5) APs have received employment training, covering animal breeding and epidemic prevention, minority embroidery and cooking. 1) No dispute between the construction staff and local minority residents has occurred; the construction staff fully respects local customs; 2) Non-horning signs had been set up near villages; 3) Overnight construction is avoided; 4) Construction has no environmental impact; 5) Construction information has been disclosed to villagers in advance (see Figure 5-12). 38

3. Maintaining the health of the construction camp to avoid infectious diseases 4. Meeting downstream water demand 5. Taking measures to avoid water pollution 6. Alleviating environmental 4,956 persons in Maling Village, including 855 Buyi people and 570 Miao people Residents downstream the reservoir Residents around the reservoir 4,956 persons in PMO, Zhushui, construction agency, disease control center, township governments, village committees PMO, Zhushui, design agency PMO, Zhushui, design agency, construction agency, township governments, village committees PMO, Zhushui, Construction Construction & operation Construction & operation Const ructio n safety education on the construction staff strengthened. 1) The construction agency will keep the ambient environment clean; 2) The construction staff will be subject to initial physical checkup to prevent infectious diseases; 3) Health monitoring files will be established for the construction staff; 4) The disease control center will give publicity and education on the construction site; 5) Construction workers will be examined on the awareness of AIDS prevention and dissemination. 1) During construction, diversion tunnels will be constructed to ensure the domestic and irrigation water demand of downstream residents; 2) At the early stage of water storage, an adequate and stable river discharge will be maintained to meet environmental water demand; 3) At the operation stage, the dependability of ecological water will be increased. 1) The reservoir bottom will be cleaned up thoroughly before water storage; 2) Domestic waste will be disposed of and transferred regularly, and related publicity and education strengthened to ensure that domestic waste is not dumped at will; 3) The PMO and agriculture bureau will work closely to give publicity and education on environmental protection to local residents, thereby reducing the use of fertilizers and pesticides, and control pollution. 1) The EMP will be implemented strictly to minimize potential environmental risks; Project budget, special funds of disease control center, etc.; 0.6 million Project budget Project budget, special funds of agriculture bureau, etc.; 1.97 million Project budget, EMP 1) Frequency of cleaning 2) Initial physical checkup for the construction staff 3) Establishment of health monitoring files 4) Publicity by the disease control center 5) Examination on disease knowledge 1) Availability of diversion tunnels 2) Downstream discharge at the early stage of water storage 3) Downstream discharge at the construction stage 4) Feedback from downstream residents 5) Downstream ecological changes 1) Inspection on reservoir cleanup 2) Discharge of domestic wastewater 3) Disposal of domestic waste 4) Frequency of publicity and education on environmental protection, and number of participants 1) EMP implementation 2) Conflicts between the 1) Sprinkling vehicles are available at most construction sites, and construction and domestic waste was transferred by well-covered trucks to the designated landfill; 2) The construction staff is subject to an induction health checkup; 3) Posters on disease prevention have been posted at village committees (see Appendix 25). 1) Two diversion tunnels are constructed; 2) Downstream discharge at the early stage of water storage 3) Downstream discharge at the construction stage 4) There is no feedback yet; 5) There is no downstream ecological change yet. 1) A 6,800m sewer network has been completed in Maling Xiang, realizing central wastewater treatment effectively. 2) No wastewater is discharged to the reservoir area. 1) There is no dispute between the construction staff and local 39

and public security pressure from floating population 7.Alleviating impacts on traditional culture and enhancing community cohesion Maling Village, including 855 Buyi people and 570 Miao people 4,956 persons in Maling Village, including 855 Buyi people and 570 Miao people construction agency, public security bureau PMO, Zhushui, township governments, village committees Construction & operation 2) A good construction environment will be created; 3) The owner and construction agency will strengthen publicity and education, and handle relations between the construction staff and local residents, especially minority residents. 1) Traditional culture will be preserved through publicity, education and minority activities; 2) During resettlement, special consideration will be given to APs to be relocated with family members in order to protect existing family relations; 3) Adequate consultation will be conducted with families relocated as a whole, especially with prestigious elders; 4) The village committees should will treat APs and non-aps equally in employment, training and education; and 5) The allocation of public resources, such as land and public services, will be handled fairly. budget, special funds of the public security bureau, etc.0.3 million. Project budget, special funds of the Ethnic and Religious bureau, etc.0.3 million. construction staff and local residents 3) Types and frequency of publicity and education, and number of participants 4) Comments on the construction agency and staff from local residents 1) Frequency of culture publicity and education activities, and number of participants; 2) If opinions and suggestions of family members are respected during resettlement; 3) If APs and non-aps are treated equally in employment, training and education; and 4) If public resources are allocated fairly. residents; 3) Over 10 publicity sessions have been conducted, involving every household; 4) Local residents, especially minority residents, think highly of the construction agency and staff. 1) Not less than 8 activities have been conducted, involving over 500 men-times; 2) Minority opinions an d suggestions are respected during resettlement; 3) There is little difference in employment, education and training between APs and non-aps; 4) Public resources are allocated fairly. 40

7.3 EMDP Implementation According to the survey, the Subproject has almost no negative impact on local minority residents production and livelihoods, but will benefit local minority residents greatly after its completion, as shown in water supply, irrigation and power generation. Local minority residents enjoy the same rights in LA and HD compensation and resettlement as Han residents, and priority in employment and skills training under the Subproject. There is almost no negative impact on minority population, which will benefit greatly from the Subproject from domestic and irrigation water supply. The construction staff fully respects local customs. As of December 31, 2017, no dispute between the construction staff and local minority residents had occurred. 1) There is little impact on local minority residents livelihoods. As of December 31, 2017, no dispute over construction had been received. Non-horning signs had been set up near villages, sprinkling vehicles were available at most construction sites, and construction and domestic waste was transferred by well-covered trucks to the designated landfill. Construction had no environmental impact. The construction staff respected local customs. However, safety facilities were inadequate on most construction sites. 2) Infrastructure construction is strengthened and the living environment improved significantly. As of December 31, 2017, relevant development plans of Maling Xiang on minority village building had been completed, and the local infrastructure improved greatly, such as road pavement hardening, roadside façade reconstruction, road landscaping, environmental management and financial services. Figure 7-1 Infrastructure Construction in Maling Xiang 2) A wastewater treatment system was established to solve drinking water supply and irrigation problems. The opportunity of becoming a state-level hygienic township was taken to improve the rural environment, including road improvement, waste and wastewater collection and treatment, and river dredging and embankment landscaping. A 6,800m sewer network has been completed. 4) The living environment is improved. The forest coverage of Maling Xiang has been increased to 65% through planting and natural forest conservation, which are combined with fruit and flower cultivation, and water head area protection. 41

Figure 7-2 Outcomes of Beautiful Countryside Building 5) Community development is promoted, and more job opportunities generated. In order to enhance minority development capacity, the Xiang poverty relief station, district agricultural service center, and Xiang social security agency have organized relevant training. See Table 7-2. Table 7-2 Summary of Minority Training Courses No. Training Time Venue # of trainees Percentage of minority trainees 01 Black-hair pig breeding 2017.11.20 118 58% 02 Agricultural technology 2016.7.12 83 53% Floor 4 meeting Spring/fall animal Spring/fall Stockbreeding 03 room of the 54% epidemic prevention 2017 households Maling Xiang 04 Minority embroidery 2016.8 30 62% Government 05 Minority cooking 2017.5 80 60% 06 Scientific family education 2017.4.27 100 55% Figure 7-3 Vocational Training for Minority Residents 7.4 Suggestions 1) Strengthen the safety protection of the construction area, and improve the construction environment to minimize impacts on local residents livelihoods. 2) Continue to offer vocational training to minority residents, and generate more jobs locally. 3) Pay attention to local environmental rehabilitation, dispose of construction waste timely, and strengthen publicity on environmental protection. 4) Further strengthen publicity on the prevention of AIDS and other diseases, and environmental protection to improve the village environment. 5) The agencies concerned should keep records on EMDP implementation properly. 42

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8 Resettlement and Ethnic Minority Development IAs 8.1 IAs In order to strengthen the supervision over and coordination of resettlement, and conduct resettlement properly, the Guiyang PMO has been established, which is responsible for leading and coordinating resettlement, organizing local PMOs to prepare internal monitoring reports, coordinating external resettlement M&E, conducting public participation, information disclosure and grievance redress, and leading and coordinating ethnic minority and social development activities. A social, environment and resettlement office with 4 members (including two women) has been established under the Guiyang PMO to lead and coordinate resettlement. See Error! Reference source not found.1. Table 8-1 Members of the Social and Environment Office Name Agency Tel E-mail Meng Jianjian (female) Guiyang PMO 13595115511 guiyangpmo@vip.163.com He Ying (female) Guiyang PMO 15985123603 guiyangpmo@vip.163.com Yuan Weikai Guiyang PMO 18785086775 guiyangpmo@vip.163.com Local PMOs have been established in the subproject areas, responsible for the coordination of subproject preparation and implementation, headed by district or county heads, and composed of experienced leaders from the district or county departments concerned. The local PMOs have resettlement offices that have one or two persons responsible specifically for resettlement and social development. Figure 8-1 Organizational Chart for Resettlement and Social Development The main responsibilities of the local PMOs are: 1) preparing and updating the RPs; 2) 44

implementing the RPs; 3) disbursing and managing resettlement funds; 4) conducting internal supervision, supervision and organizational coordination; 5) preparing internal monitoring reports regularly; and 6) implementing the EMDPs and social development plans of the subprojects. See Table 8-2. Table 8-2 Staffing of Resettlement Agencies Agency Workforce Females Composition Guiyang PMO 3 2 Management, technical, financial and social experts Zhushui 4 1 Resettlement staff HDRB 3 1 Civil servants Township governments 4-6 2-3 Government officials Village committees 3 1 Officials and AP representatives Supervising agency 3-6 1-2 Supervisors External M&E agency 4-8 2-4 Resettlement experts Total 25-34 10-14 8.2 Institutional Capacity Evaluation The local PMOs and owners have rich experience in domestic projects, are familiar with the ADB policies, and support external M&E very well. By the time of this report, the relevant staff had been trained many times effectively. The external M&E team advises that the local PMO staff should be further trained in resettlement policies and practices in such forms as theoretical study, visit and exchange, especially visiting completed or ongoing ADB-funded projects, in order to further improve institutional efficiency and capacity. 8.3 Supervision and Inspection The PMO implements an internal supervision mechanism to supervise resettlement activities and EMDPs. During resettlement, the PMO and the owner have specially appointed persons who conduct supervision and inspection on resettlement progress, fund use, house reconstruction, and income restoration, and solve issues in consultation with the APs timely. The resettlement IAs should report resettlement progress to the subproject owners monthly, which should report resettlement progress to ADB and the external M&E agency semiannually. Monthly and quarterly reports on resettlement progress, fund use, house construction, income restoration, etc. have been prepared timely, and internal monitoring conducted orderly. In addition, the Guiyang PMO has appointed NRCR to conduct external M&E on resettlement progress, resettlement policies and their implementation, livelihood impacts and restoration, support for vulnerable groups, information disclosure, public participation, grievance redress, social and ethnic minority development, etc. to see if ADB s safeguard policies are complied with. 8.4 Capacity Building In May 2016, the Guiyang PMO organized a visit to the Yudongxia Reservoir to draw on resettlement experience, involving 14 resettlement staff members of the PMOs of the Jinlong, Jiancaogou, Maozhulin and Hongyan Subprojects, including 6 females. In June 2016, the PMO invited NRCR to train relevant staff on the ADB policies and state regulations on reservoir resettlement, involving 25 trainees, including 11 females. During the training, NRCR introduced new ADB concerns, with focus on the nature, purpose, methods and indicators of resettlement M&E, and materials to be collected. 45

8.5 Suggestions on Capacity Building The Guiyang PMO will take the following measures to strengthen institutional capacity: 1) Leadership responsibility system: establishing a leading team headed by the leader in charge of the district government and composed of leaders from departments concerned 2) Well-trained staff: All resettlement agencies are provided with staff experienced and proficient in policies and operations. 3) Definition of responsibilities: The responsibilities of all resettlement agencies have been defined in accordance with ADB s requirements, and the applicable state laws and regulations. 4) Staff training: The resettlement staff will be trained on resettlement policies and file management. 5) Public supervision: All resettlement information should be disclosed to the public for supervision. 6) Resettlement disclosure meetings are held irregularly and relevant information is disclosed as briefs. 7) The resettlement IAs will be provided with necessary vehicles and office facilities. 46

9 Conclusions and Suggestions 9.1 Conclusions 9.1.1 Changes in Resettlement Impacts 2,119.31 mu of land will be occupied permanently for the Subproject, including 1,873.2 mu of collective land and 246.11 mu of state-owned land; 631.91 mu of land will be occupied temporarily; rural residential houses of 46,527.54 m 2 and non-residential properties of 1,306.07 m 2 will be demolished. Since there is no change in the scope of construction as compared to the RP, there is no change in resettlement impacts as compared from the previous report. 9.1.2 Resettlement Progress As of December 31, 2017, 2,049.7408 mu of collective land in Maling Xiang had been acquired or occupied, including 1,246.3848 mu of cultivated land, 14.7494 mu of garden land, 597.1088 mu of woodland, 177.8028 mu of construction land, 11.985 mu of unused land, 0.1 mu of grassland and 1.61 mu of fishpond; rural resettlement costs of 127.4904 million yuan had been paid, including land compensation 101.7464 million yuan, ground attachment compensation of 14.2908 million yuan, house compensation of 11.0233 million yuan, and resettlement subsidy of 425,300 yuan. 9.1.3 HD and Reconstruction The demolition of residential houses for the Subproject is caused by reservoir inundation mainly, involving 173 households with 781 persons in 5 groups of Geyue Village, Maling Xiang, Huaxi District. Residential houses of 46,527.55 m 2 ; and non-residential properties of 1,306.07 m 2 will be demolished for the Subproject, affecting the village committee, Geyue Primary School and a timber processing plant. As of December 31, 2017, HD had not begun, and the construction of the resettlement sites was behind schedule. The infrastructure construction of the Shilang resettlement site had been completed, while that of the Dahuangdi resettlement site was underway, and was expected to be completed by the end of January 2018. House construction and handover is scheduled for April 2018 (before the flood period) for both resettlement sites. 9.1.4 Resettlement Agencies The organizational structure for resettlement is sound, duties clearly defined, and the relevant staff trained. The PMO staff is experienced and proficient in resettlement, and has good relations with the APs. The resettlement agencies are well established, and their duties clearly defined. However, the capacity of the local PMOs has to be further strengthened. 9.1.5 Public Participation and Information Disclosure The IAs complied with the applicable state policies during LA very well, including announcement, notification and registration. Consultation was conducted with the APs effectively, ensuring the openness and fairness of LA. 9.1.6 Key issues in RAP and EMDP implementation The construction of the resettlement sites is behind schedule. At the implementation stage, voluntary labor skills training courses were offered to minority residents, involving forest and fruit tree cultivation, pest control, etc., generating good economic and social benefits. Existing issues include wastewater discharge into the reservoir area by few minority households, inability to dispose of domestic waste, and inadequate publicity and education on environmental protection. 47

9.2 Suggestions 9.2.1 Accelerate the land approval formalities, and pay LA and HD compensation timely and fully. Land approval had not been completed by the time of this report, and is expected to be completed in March 2018. The resettlement sites have not been completed, and their construction should be accelerated in hopes of resettling the APs before the flood period. Compensation agreements should be entered into as soon as possible, and the payment of compensation accelerated. 9.2.2 Pay attention to the livelihood restoration of the APs, and extra support for vulnerable groups. The PMO should take the livelihood restoration and social security measures specified in the RP timely. The support for the APs and vulnerable groups is being offered as planned. This is also a focus in future M&E. 9.2.3 Accelerate resettlement site construction. Since October is within the flood period, it was formerly planned to store water in early November 2017, but HD in the inundated area has not begun, and the APs have not been relocated. As of December 31, 2017, the infrastructure construction of the Shilang resettlement site had been completed, while that of the Dahuangdi resettlement site was underway, and was expected to be completed by the end of January 2018. Their construction progress is behind schedule in general. MXG should enter into compensation agreements with AHs, and complete housing land allocation as soon as possible to ensure smooth resettlement. 9.2.4 Strengthen policy publicity. HDG and the competent authorities should strengthen the publicity of the resettlement policies and the new LA compensation rates. For 8% of land compensation withheld by the collective, adequate explanation and consultation should be conducted to ensure that such funds are used openly and transparently. 9.2.5 Further strengthen the capacity building of the PMO. Further strengthen the training of the staff of the PMO and IAs, and improve the mechanisms for LA and HD compensation, and livelihood restoration. In addition, sound mechanisms on information disclosure, public participation and grievance redress should be established. The PMO should have dedicated staff responsible for this for higher efficiency. In addition, all agencies should strengthen filing. 9.2.6 Further strengthen information disclosure, public participation and grievance redress. The IAs should strengthen file management on information disclosure, public participation and grievance redress, and prepare relevant materials properly to provide a basis for future M&E. For grievance redress, the IAs should designate dedicated staff members to collect and record grievances, progress, dispositions, etc., give written replies to appellants directly for specific grievances, and convene a village/community meeting to address common grievances. In future project implementation, the IAs should register and manage grievances and dispositions properly, and submit relevant materials to the Guiyang PMO monthly. The Guiyang PMO will inspect the registration of grievances and appeals regularly together with the external M&E agency. The grievance registration form should cover accepting agency, time and location of acceptance, appellant, appeal, proposed solution, actual disposition, signature, etc. 9.2.7 Implement LA and HD in strict conformity with the established procedures and ADB s policies. Currently, the policies and procedures on LA and HD are increasingly sophisticated, and 48

administrative provisions on HD appraisal, ruling, public hearing, etc. are in place. It is advised to comply strictly with these procedures in subsequent LA and HD. 9.2.8 Strengthen support for ethnic minorities and vulnerable groups. Priority should be given to ethnic minorities and vulnerable groups affected by the Subproject in training and employment, such as labor skills training for minority residents covering forest and fruit tree cultivation, pest control, etc., and publicity and education on environmental protection for minority farmers. Minority needs should be fully considered in the planning and construction of the resettlement sites and relevant facilities. 49

Appendix 1 Notice of the Guiyang Municipal Government on Issuing and Implementing the Updated Uniform AAOV Rates and Location-based Composite Land Prices of Guiyang City 50

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Appendix 2 Reply of the Guizhou Provincial Land and Resources Department on the Land Application for the Subproject 58

Appendix 3 Reply of the Guizhou Provincial Development and Reform Commission on the Feasibility Study Report of the Subproject 59

Appendix 4 Reply of the Guizhou Provincial Development and Reform Commission on the Preliminary Design of the Subproject 60

Appendix 5 Agreement on Resettlement House Confirmation 61

Appendix 6 House Construction Entrustment Agreement 62

Appendix 7 Land Use Agreement 63

Appendix 8 Engagement Letter of AP Representatives 64

Appendix 9 Opinion on Site Selection for Mengguan Waterworks 65