WORLD BANK – GLOBAL ENVIRONMENT FACILITY China: Reduction/Phase-Out of PFOS in Priority Sectors Project Hubei Hengxin Chemical Co., Ltd. Conversion Project Resettlement Action Plan September 2019 1 Content 1 Project Overview ............................................................................................................. 4 1-1 Project Background ........................................................................................................................ 4 1-2 The Content of the Project.............................................................................................................. 6 1-3 Overview of Economic and Social Development in the Affected Areas .......................................... 7 1-3-1 Overview of Economic and Social Development of Yingcheng City........................................ 7 1-3-2 Overview of Saifu Industrial Park of Changjiangbu ................................................................. 9 1-3-3 Overview of Linchu Village .................................................................................................... 11 1-4 Overview of the Affected Company .............................................................................................. 11 1-5 Measures to Minimize Resettlement ............................................................................................ 12 2 Project Impact Analysis ............................................................................................... 14 2-1 Resettlement Terminology............................................................................................................ 14 2-2 Project Impact Analysis ................................................................................................................ 15 2-3 Type and Quantity of the Acquired Property ................................................................................ 17 2-4 Analysis of Land Acquisition Type and Impact Degree................................................................. 18 2-5 Affected Households and Population by the Project ..................................................................... 20 2-6 Types and Quantity of Affected Land Attachment ........................................................................ 21 2-7 Affected Enterprise and Workers .................................................................................................. 21 3. Resettlement Laws, Policies and Compensation Standards .................................. 25 3-1 Laws, Regulations and Policies for Project Resettlement............................................................. 25 3-1-1 National Laws and Policies ................................................................................................... 25 3-1-2 Local Regulations and Policies ............................................................................................. 26 3-1-2 World Bank’s Policies on Involuntary Resettlement .............................................................. 27 3-1-3 Analysis on Policy Difference between China and the World Bank....................................... 27 3-1-4 Resettlement Principles for the Project ................................................................................. 29 3-2 Compensation Standards for the Project Land Acquisition ........................................................... 30 4. Income Restoration and Enterprise Relocation Scheme ........................................ 32 4-1 DPs’ Income Restoration Measures ............................................................................................. 32 4-1-1 Analysis of the Impact of Land Acquisition on Production Conditions and Farmers' Income 32 4-1-2 Analysis of the Impact of Enterprise Relocation on Employees' Income ............................... 33 4-2 Scheme and Measures for Income Restoration ........................................................................... 33 4-2-1 Prompt and Sufficient Cash Compensation .......................................................................... 34 4-2-2 Providing Social Insurance for the Farmers Who Lost Land ................................................. 34 4-2-3 Share the Project-related Benefits ........................................................................................ 36 4-2-4 Develop Skills Training to Enhance the Ability of DPs .......................................................... 37 4-2-5 Resettle Vulnerable Groups Combining Rural Poverty Alleviation ........................................ 37 4-3 Resettlement Plan and Measures for Employees of Relocated Enterprises ................................. 37 5 Public Participation and Resettlement Information Disclosure .............................. 40 5-1 Focuses of Public Consultation and Participation ......................................................................... 40 5-2 Way of Public Consultation and Participation ............................................................................... 42 5-3 Resettlement Information Disclosure ............................................................................................ 44 6 DPs’ Grievances and Complaints ............................................................................... 47 6-1 Methods to Collect Grievances and Complaints ........................................................................... 47 6-2 Procedures for Dealing with Grievances and Complaints............................................................. 48 6-3 Collection and Dealing with DPs’ Complaints ............................................................................... 50 7 Resettlement Organizations and Institutional Arrangement ................................... 52 7-1 Resettlement Organizations Network ........................................................................................... 52 7-2 Responsibilities of ROs ................................................................................................................ 53 7-3 Arrangements for Resettlement Implementation .......................................................................... 54 8 Resettlement Cost Budget........................................................................................... 56 8-1 Classification of Resettlement Cost .............................................................................................. 56 2 8-2 Estimation of Resettlement Costs ................................................................................................ 57 8-3 Disbursement Procedures for Resettlement Funds ...................................................................... 58 9 Resettlement Monitoring and Evaluation................................................................... 60 9-1 Purpose of Resettlement Monitoring & Evaluation ....................................................................... 60 9-2 Internal Resettlement Monitoring .................................................................................................. 61 9-2-1 Contents of Internal Monitoring ............................................................................................. 61 9-2-2 Internal Monitoring Methods ................................................................................................. 63 9-3 External Resettlement Monitoring &Evaluation ............................................................................ 64 9-3-1 Contents of External Monitoring ............................................................................................ 64 9-3-2 Methods of Independent Monitoring &Evaluation.................................................................. 65 9-4 Resettlement Monitoring Report System ...................................................................................... 65 9-4-1 Internal Resettlement Monitoring Report System.................................................................. 65 9-4-2 External Resettlement Monitoring Report System ................................................................ 66 10 PAPs ’ Entitlement Matrix and Schedule for Resettlement Implementation ................ 67 10-1 PAPs ’ Rights and Entitlement Matrix ......................................................................................... 67 10-2 Schedule for Main Activities of Resettlement ............................................................................. 68 3 1 Project Overview 1-1 Project Background PFOS and its derivatives are important raw materials for the synthesis of various fluorosurfactants, and are widely used in daily life, industrial production and other fields. However, PFOS has durability that is difficult to degrade, accumulation in organisms, long-range mobility and uncertainty about human harm. In May 2009, the Fourth Conference of the Parties to the Stockholm Convention on Persistent Organic Pollutants (POPs) decided to include PFOS/PFOSF in Annex B of the Convention (restricted category). On March 25, 2014, China’s Ministry of Environmental Protection and other 12 ministries jointly issued a ban on PFOS, PFOS and PFOSF’s production, distribution, use and import and export except for specific exemptions. For specific exempted uses, all eliminations should be made before the exemption expires; for acceptable uses, management should be strengthened and phased out. In November 2017, The Global Environment Facility - China: Reduction / Phase - out of PFOS in Priority Sectors Project (PFOS Project), developed jointly by the World Bank and the Foreign Economic Cooperation Office (FECO) under Ministry of Environmental Protection (MEP) was officially launched. The project which is in the field of chemical management aims at ensuring that China would fulfill its mandatory obligation of reducing PFOS as was stipulated in the Stockholm Convention on Persistent Organic Pollutants. It urges the uttermost replacement/reduction/phase-out of PFOS by manufacturing, electroplating, farm chemical, and fire-fighting industries, and minimizes the production and use of PFOS, reduces environmental risks, improves the regulatory capacity of relevant regulatory agencies, increases the public's awareness of reducing the use of persistent organic pollutants, and brings overall environmental benefits. The overall cost of the project is 145.3 4 million USD, of which 24.25 million is donated by GEF. The National Project Office (FECO of the Ministry of Environmental Protection, FECO) and the Provincial Project Office (PPMO), determine the primary producers (about 12) and secondary producers (about 14 companies) of PFOSF from the alternative projects to fund their reduction/phase-out of PFOSF according to the following screening criteria: Criteria 1: The industry belongs to the priority industries of this project, they are using or applying PFOS and its products and its production process is typical. Criteria 2: The Company has legal and effective environmental permits and approvals, such as environmental impact assessment report are prepared and approved. Criteria Standard 3: The Company’s sewage discharge is basically up to standard discharge, and there is no major environmental pollution incident. Hubei Hengxin Chemical Company as a major manufacturer of PFOS raw materials has a capacity of 30 tons/year. With the dates of the international ban on PFOS\PFOSF approached, Hubei Hengxin Chemical Company conducted research and development of PFOS substitutes, some great progress have been made in the process technology of PFBS and PFES and some identification results and patents are obtained. At the same time, The Company also actively participated in the “Finnish Convention PFOS/PFOA Industry Seminar� held by the Ministry of Environm ental Protection, “Investigation on the Application of PFOS Substances in China's Electroplating Industry�, and the work on “The Investigation of the Production and Application of PFOS� organized by China Fluorosilicon Organic Materials Industry Association. The company is in compliance with the criteria of the PFOS Project and its change production and phase out production plans are included in the PFOS project. 5 1-2 The Content of the Project Hubei Hengxin Chemical Company currently has a capacity of 30 tons/year of PFOSF. The content of Hubei Hengxin Chemical Company conversion and replacement projects include: (1) Conversion project: The 30 ton/year PFOSF production line was converted into a PFBSF production line of 80 tons/year through technical transformation. (2) Substitute project: A new 60 ton/year DPEBSF production line is used as an alternative to electroplating chrome fog inhibitors. Hubei Hengxin Chemical Company is located in the provincial industrial park-Yingcheng Economic and Technological Development Zone. In order to achieve the PFOS conversion and replacement goals, the Company will build new plants in the new park and update equipment. After the new plant is completed, the Company will close the original production workshop and relocate to the new plant and plans to transform the old factory and office facilities into warehousing and develop logistics services. The warehousing facilities after the renovation will not discharge pollution, nor will affect the living of the surrounding residents, and it conforms to the industrial planning and development direction of Yingcheng Economic and Technological Development Zone. According to the company's "PFOS product conversion and replacement project plan", Hubei Hengxin Chemical Company will build a new 4000m 2 standard factory building, 1 new finished product warehouse, 1 raw material warehouse, 1 packaging barrel warehouse, and total new warehouse area is 3000m2. The new frozen room, power distribution room, gas boiler room and other shared facilities with 3000m2 will also be constructed. The new factory zone was selected in Saifu Industrial Park of Yingcheng City. The construction needs to requisition 35.34 mu of land in Linchu Village of Changjiangbu Street office. Table 1-1 The content of project construction Land Budget of No Construction project The content of construction acquisition investment （mu） （yuan） 6 The 30 ton/year PFOSF Land Conversion production line was converted into purchase project a 80 ton/year PSF production line budget is 12.5 Production 1 through technical transformation million RMB; project Substitute A new 60 ton/year DPEBSF Production project production line is constructed equipment 35.34 mu purchase Factory a new 4000m2 standard factory land of budget is 9.51 building building will be built. Linchu million RMB; 1 new finished product warehouse, Village will Environmental 1 raw material warehouse, 1 be protection, fire Civil Warehouse packaging barrel warehouse, and expropriated protection and 2 engineering total 3000m2 new warehouse area other project is built. equipment Shared facilities with 3000m2 will purchase Shared also be constructed for frozen budget is facilities room, power distribution room, gas 35.16 million boiler room etc. RMB. 1-3 Overview of Economic and Social Development in the Affected Areas The new plant of Hubei Hengxin Chemical Company is located in Linchu Village of Yingjiang District, Yingcheng City. The area belongs to the Saifu Industrial Park, which is a key industrial park of Yingcheng City. 1-3-1 Overview of Economic and Social Development of Yingcheng City Yingcheng City is a county-level city directly under the jurisdiction of Hubei Province and administered by Xiaogan City, and is an important part of Wuhan City Circle. At the end of 2018, the total registered population of the city was 652,200, with a total land area of 1.643 million Mu, including 974,400 mu of cultivated land, the cultivated land per capita is about 1.5 Mu. Yingcheng City is located in the transitional zone between the hills of Hubei and the Jianghan Plain. The city's natural resources are abundant. The main minerals found in the territory are gypsum, rock salt, strontium, quartz and kaolin. The reserves of gypsum and rock salt are the most abundant. The gypsum reserves are 510 million tons, of which the first-grade fiber gypsum with calcium sulfate dihydrate content greater than 95% accounts for 82.24% 7 of the total reserves, accounting for more than 82% of the national high-quality fiber gypsum reserves. The rock salt deposits have a distribution of about 140 square kilometers and a reserve of 28 billion tons. The sodium chloride content is generally 63.4%~88.5%, and the highest is 95%. Yingcheng City is known as the "paste of salt sea". In recent years, Yingcheng City has gradually overcome the downward pressure of the economy. In 2018, the city achieved GDP of 31.579 billion RMB, an increase of 8.6% over the previous year. Among them, the first industry realized an added value of 4.839 billion RMB, an increase of 3.2%; The added value of the secondary industry reached 17.77 billion RMB, an increase of 8.7%; the tertiary industry realized an added value of 8.763 billion RMB, an increase of 11.9% (Figure 1-1). Figure1-1 Economic Growth Trend of Yingcheng City 12 350 10 300 9.7 9.5 8.6 250 8 7.8 200 6 6 315.79 150 287.1 239.08 259.83 4 220.6 100 2 50 0 0 2014 2015 2016 2017 2018 GDP(100 million RMB） GDP growth rate（%） Yingcheng City is an industrial-oriented city. Since the 1970s and 1980s, it has formed an industrial structure with salt chemical, gypsum building materials and fine chemicals as its main industries. The proportion of the secondary industry in the industrial structure has been above 56%. In recent years, with the introduction of a large number of industrial projects, the proportion of the secondary industry is still increasing. The industrial structures 8 were adjusted from 18.2:56.3:25.5 in 2014 to 15.3:56.9:27.8 (Figure1-2). The per capita income of all residents of the city is 26,902 RMB. Among them, the per capita income of urban permanent residents is 33,777 RMB; the per capita income of rural permanent residents is 19,103 RMB. Industrial Structure of Yingcheng City in 2014 25.5 18.2 56.3 Primary industry Secondary industry Tertiary industry Figure 1-2 The evolution of industrial structure of Yingcheng City 1-3-2 Overview of Saifu Industrial Park of Changjiangbu Changjiangbu also known as Changjiang Town, is located at the intersection of Yingcheng, Yunmeng and Hanchuan counties. It is an old town with more than 400 years of history. The town is full of merchants, active trade, and outstanding people. It may take about 2 hours to drive from Wuhan City and is known as the "Little Hankou". The current population is 29,306 people, covering an area of 18.7 square kilometers. It has jurisdiction over 3 neighborhood committees and 14 village committees. The Saifu Industrial Park is one of the “five bases and six major parks� for the petrochemical industry in Hubei Province. It is a planned large-scale fine chemical industry base by Hubei Province. In 1997, the land use plan of Yincheng City was adjusted, and the planned land area of the Saifu Industrial Park was determined to be 260.48 hectares. According to the progress of the development of the Park, the Yangtze River Street Office will implement land 9 acquisition in each year and transform rural collective land into state-owned construction land. Enterprises or companies that move into the park may obtain land use rights and pay land fees according to the relevant laws and regulations such as “Land Administration Law of the People's Republic of China� and “Regulations on the Use of State-owned Construction Land for Bidding, Auction and Listing�. The payment of the price is determined by the auction through the “bidding and auction� method. The Park began construction in 2000. In 2005, it was awarded the “National Torch Plan Yingcheng Fine Chemical New Material Industry Base� by the Ministry of Science and Technology. At present, the Changjiangbu Saifu Industrial Park has developed into a large-scale fine chemical park with 58 enterprises of various types, including 36 enterprises above designated size, 7 high-tech enterprises, 3 new three-board and four-plate listed enterprises. The output value is 14.1 billion RMB and the tax revenue is 130 million RMB in 2015. In 2016, Changjiangbu Saifu Industrial Park successfully passed the review of the Ministry of Science and Technology and continued to retain the national honor of “National Torch Plan Yingcheng Fine Chemical New Material Industrial Base�, it becomes the only industrial park of the same type in Hubei Province. In recent years, Saifu Industrial Park has continuously optimized its business environment and improved its infrastructure. At present, the Yangtze River Street Office and Wuhan Jinghong Company have adopted the BOT method to build a sewage treatment plant with a daily processing capacity of 5,000 tons, and a water supply pipe network of 16.8 kilometers is being laid in the park. After the industrial sewage treatment plant is put into operation, the enterprises in the park will operate in a closed operation, and the treated water will be recycled in the park to improve the utilization rate of water resources. While improving the infrastructure, Changjiangbu Street Office has also strengthened cooperation with universities and colleges, intensified product research and development, and focused on new projects with high science 10 and technology or high value-added, and actively engaged in absorbing investment in the park. With the industrial attractiveness of the park has been continuously enhanced, a number of projects with large investment, broad prospects and obvious product advantages have settled in the park, which has injected new vitality into the local economic and social development. 1-3-3 Overview of Linchu Village The directly affected area of the project by land acquisition is Linyi Village, Changjiangbu Street office, Yingcheng City, Hubei Province. The village is located at the northern end of the Yangtze River. There are 309 households with a population of 1,556 and a labor force of 860 in the village. The total cultivated area of the village is 1,143 Mu, the forest land is 57 mu, and the water surface is 62 Mu. In the past, the crop industry and aquaculture industry were the leading industries. In recent years, with the development of industrialization and urbanization, a large number of labor forces have been transferred from the agricultural sector to the non-agricultural sector. Among the 860 laborers in the village, the number of laborers who have been working in the cities has reached 650, accounting for 76% of the total labor force. The proportion of agricultural income in the village to total income is about 5%. The Village is a rapidly urbanizing area. 1-4 Overview of the Affected Company Hubei Hengxin Chemical Company is legally registered in the People's Republic of China and it is a independent corporate. The company is a private high-tech enterprise specializing in chemical products. It is a member of China FO Industry Association and also the research base of Huazhong University of Science & Technology, Huazhong Normal University, Wuhan University of Science & Technology. In November 2005, it was recognized as a high-tech enterprise by the Science and Technology Department of Hubei Province; in October 2008, it was awarded the Outstanding Award of China FO Materials 11 Industry Association; in December 2009, it became a member of China Printing and Dyeing Industry Association; in April 2010, it was recognized by Hubei Science as the key science and technology SMEs in Hubei Province. In June 2012, the Company was recognized as a national high-tech enterprise by the Ministry of Science and Technology of China. 1-5 Measures to Minimize Resettlement The new plant of Hubei Hengxin Chemical Company is located in the Saifu Industrial Park of Changjiangbu, which is a large-scale fine chemical industrial base planned and constructed in Hubei Province. The land acquisition for the construction of the plant is within the planned land use of the park, and the red line of land has been determined. The land for factory construction will be firstly requisitioned from Linchu Village and will be transformed into state-owned construction land, and then the land use right was transferred to Hengxin Chemical Company through land auction. The total land acquisition is only 35.34 Mu, among the requisitioned land, only 2.5 Mu of land is still being cultivated, and other land is no longer cultivated, but has evolved into a shrub land. Land acquisition has a slight impact on local production, living conditions and the environment. In order to reduce the negative impact of project construction and land acquisition and minimize the amount of land acquisition, the local government will adopt the following policy measures during project design and implementation. (1) Optimize project design and reduce the number of land 12 acquisition and demolition. The design organization plans and designs the new plant in accordance with the principle of saving land, less land and not occupying good land, minimizes the occupation of cultivated land and improves land use efficiency. The newly established construction site of the new plant avoids sensitive points such as villages, schools and hospitals. The land occupied is mainly shrub land, and the impact of land acquisition on affected families is slight. (2) Strengthen construction management and reduce the interference of project construction on the production and life of local residents. During the construction of new factory construction, Hengxin Chemical Company will strengthen the construction management, and shall not arbitrarily cut down trees, reduce the dust and soil erosion caused by soil and spoil, and the bare land formed in the construction area should be timely restored with engineering or plant measures. The construction unit shall also timely clean up the domestic waste at the construction site in accordance with the requirements of the local sanitation department to minimize the adverse impact on the local environment. (3) Reasonably arrange land acquisition time and construction period. The Street Office will consult with the affected farmers and inform the land requisition information in a timely manner. After signing the land acquisition compensation agreement with the farmers, the Street Office plans to implement land clearing after the farmers' crops are harvested in September 2019 so as to reduce the loss of crops. After the land is requisitioned and cleaned up, the land use right will be transferred to Hengxin Chemical Company through the “bidding and auctioning� to build a new factory. 13 2 Project Impact Analysis 2-1 Resettlement Terminology 1. Definition of “Resettlement�. In World Bank terminology, “Resettlement� covers all direct economic and social losses resulting from land taking and restriction of access, together with the consequent compensatory and remedial measures. Resettlement is not restricted to its usual meaning—physical relocation. Resettlement can, depending on the case, include (a) acquisition of land and physical structures on the land, including businesses; (b) physical relocation; and (c) economic rehabilitation of displaced persons (DPs), to improve (or at least restore) incomes and living standards. 2. Definition of “Displaced Persons� or “Project-Affected Persons�. “Displaced Persons� are defined as the people or entities directly affected by a project through the loss of land and the resulting loss of residences, other structures, businesses, or other assets. The word thus connotes all those people who lose land or the right to use land or who lose access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods. The term “displaced persons� is synonymous with “project-affected persons� and is not limited to those subjected to physical displacement. 3．Definition of “Stakeholders of the Project�. “Stakeholders of the project� is a broad term that covers all parties affected by or interested in a project or a specific issue. In other words, all parties who have a stake in a particular issue or initiative are included in stakeholders. The stakeholders can be classified into “primary stakeholder� and “secondary stakeholders�: primary stakeholders are those most directly affected; the population that loses property or income because of the project and host communities. Secondary stakeholders are the people who have an interest in the project such as the 14 project authority itself, the beneficiaries and interested NGOs. 4．Definition of “Replace Cost�. “Replacement cost� is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account. In the countries or regions where markets provide reliable information about prices, replacement cost is equivalent to market cost plus transaction costs (for example, all preparation and transfer fees). 5 ． Definition of “Vulnerable Populations�. Vulnerable populations often refer to the social groups who are susceptible to hardship, lack of adaptability to social changes and may be less able than other groups to reconstruct their lives after resettlement. The extent, nature, and severity of their vulnerabilities may vary significantly. Identification of the project-affected vulnerable population will be undertaken by local government based on national policy and actual factors in the project-affected areas. Vulnerable populations affected by the project mainly include the poor, women, and ethnic minorities; those less able to care for themselves (children, the elderly, and the disabled); and other groups whose interests are not protected by national land compensation law. 6 ． Definition of “Project-Affected Family�. “Project-affected family� refers to any family (household) that loses a home, land, or business interests because of land acquisition. 2-2 Project Impact Analysis According to the requirements of the World Bank on involuntary resettlement policies, Hubei Hengxin Chemical Company worked with the Changjiangbu Street Office of Yingcheng City to confirm the new site of Hubei Hengxin Chemical Company during April-May 2019. On-the-spot investigation about the land acquisition of the new site was carried out. The purpose of the 15 survey is to collect comprehensive information on the type and quantity of land acquisition, the situation of affected households and population, and the socio-economic development status of the affected areas, in order to assess the impact of project land acquisition on the income of affected households and optimize engineering design, minimize the amount of land acquisition and demolition. At the same time, through field investigations, the affected population can also be informed of the progress of the project in a timely manner, achieve the purpose of information disclosure, and obtain opinions and suggestions from the local government and affected persons so as to formulate a suitable resettlement action plan, ensure that the living standards of the affected persons will be restored and improved. The scope of the project survey covers the land, trees and other properties within the red line of the project as well as the affected families and population. The content of this survey can be divided into the following sections. (1) Estimation of the type and quantity of the affected property. The investigation team estimates the various types of property within the scope of project land acquisition. These properties include the acquired land, the affected land attachments, and the affected various infrastructures. (2) Survey of the basic situation of affected families and communities. The investigation team mainly conducts on-the-spot investigations on the degree of impact on the affected households' income and consumption levels; the basic situation of the affected household population; the socio-economic status of the affected communities and the degree of impact. (3) Public consultation and resettlement willingness survey. The investigation team consulted with the workers of Hubei Hengxin Chemical Company and some representatives of the population affected by land acquisition were interviewed and their suggestions on resettlement policies and recovery plans were consulted. 16 (4) Policy and regulation materials and literature collection. The investigation team held a discussion with the relevant departments responsible for land acquisition and demolition in the Changjiangbu Street Office of Yingcheng City, collected local regulations and policies on land acquisition and house demolition, and social and economic statistics and historical documents from the relevant departments. (5) Survey of employees' willingness before the relocation of enterprises. Hubei Hengxin Chemical Company has 54 employees, including 16 technicians. The company will be relocated from Yingcheng Economic and Technological Development Zone to Changjiangbu Saifu Industrial Park. After the new plant is completed, the old factory will be closed and all employees will be relocated to the new factory. The investigation team has negotiated with all employees to fully understand the wishes of the employees and formulate solutions to address the worries of employees. 2-3 Type and Quantity of the Acquired Property According to Conversion and Replacement of PFOS Plan, Hubei Hengxin Chemical Company will build a new 4000m 2 standard factory building in Changjiangbu Street Office. 1 new finished product warehouse, 1 raw material warehouse, 1 packaging barrel warehouse will be newly built. The total warehouse area is 3,000 square meters, and some new shared facilities with 3,000 square meters such as a freezer room, a power distribution room, and a gas boiler room will be built. The company will shut down the PFOS production line and replaced by new product when the new plant is completed. According to the survey, the construction of the new plant of Hubei Hengxin Chemical Company requires the acquisition of 3 mu of collective land of Linchu Village of Changjiangbu Street Office and 32.34 mu of land for 25 households, with a total land acquisition area of 35.34 mu. It is necessary to relocate 16 graves and 2122 trees of different calibers. These trees are still unfamiliar shrubs, and no buildings need to be demolished. The types and 17 quantities of land acquisition are shown in Table 2-1. Table 2-1 Types and quantities of land acquisition Non-cultivated land Cultivated land（mu） Land attachment Affecte （mu） Affected d Tomb Tree Households Padd Dry Orchar Construction Waste Village （each （each） y field land d land land ） Chu Damao 1.13 0 0 0 0 0 67 Chu Yuxi 1.13 0 0 0 0 0 68 Chu Weihua 1.13 0 0 0 0 0 69 Chu Yucai 1.80 0 0 0 0 1 110 Chu Wanghua 1.80 0 0 0 0 1 107 Chu Yuxiong 1.80 0 0 0 0 1 108 Chu Xingzhong 1.50 0 0 0 0 0 89 Zheng Guigui 0.90 0 0 0 0 0 53 Chu Weiming 1.20 0 0 0 0 1 72 Chu Yuhua 1.20 0 0 0 0 1 71 Chu Guanting 1.50 0 0 0 0 1 89 Lin Lichao 0.75 0 0 0 0 0 45 Lin Dayang 1.50 0 0 0 0 1 91 Linchu Chu Hanfu 3.00 0 0 0 0 2 178 Village Lin Fengshun 1.65 0 0 0 0 1 98 Chu Xionghong 1.50 0 0 0 0 1 89 Chu Shantao 1.50 0 0 0 0 1 87 Chu Sifu 1.35 0 0 0 0 1 80 Lin Jinquan 2.25 0 0 0 0 2 134 Lin Huowei 1.50 0 0 0 0 1 89 Lin Guoqi 0.45 0 0 0 0 0 32 Chu 0 0.45 0 0 0 0 31 Guansheng Chu Guandian 0.45 0 0 0 0 0 31 Chu Huoping 0.45 0 0 0 0 0 27 Chu Dingyou 0.45 0 0 0 0 0 28 Village 0 3 0 0 0 0 178 Total 32.34 3 0 0 0 16 2122 2-4 Analysis of Land Acquisition Type and Impact Degree According to the site survey of the occupied land, when the land occupied by the new plant of Hubei Hengxin Chemical Company was originally contracted to the farmers, it was also identified as cultivated land. However, most of the village labor force has been transferred to the non-agricultural sector for employment. The area has also been planned to be chemical industrial park. The original land is only 2.5 acres and is still being cultivated. Other land is no longer cultivated and has evolved into a shrub land. The current status of occupied land is shown in Figure 2-1 and Figure 2-2. According to the survey, there are 309 households in Linchu Village with a 18 population of 1,556, an area of 1,143 mu of arable land, 57 Mu of forest land, 62 mu of water surface, and 0.74 Mu of cultivated land per capita. Among the 860 laborers, the number of migrant workers is 650. The proportion of agricultural income in the whole village to total income is about 5%. The requisition of 35.34 mu of cultivated land only accounts for 2.83% of the cultivated land in the village. Moreover, of the land currently requisitioned, only 2.5 Mu is still being cultivated, and the other 32.84 Mu of land is already shrub land, and 95% of the income of affected households comes from the non-agricultural sector (Table 2-2).The impact of land acquisition on the income of local residents is small. Figure 2-1 Status of the acquired land 图 2-2 Status of the acquired land In summary, the area of land acquisition for this project is only 35.34 Mu, 19 and only 2.5 mu of cultivated land is still being cultivated. The impact of land acquisition on the income of affected households is extremely slight. There are 25 households affected by land acquisition and 150 affected people. According to the World Bank's OP4.12 on involuntary resettlement and the “China PFOS Priority Industry Reduction and Phase-out Project� and the “Environmental and Social Safeguard Framework�, this project is a minor impact project. 2-5 Affected Households and Population by the Project There are 25 households affected by land acquisition, and 150 affected people, including 82 males and 68 females. From the income source structure of affected households, the income of affected households mainly comes from non-agricultural income, and the proportion of agricultural income to total household income is 2.71% on average. The majority of household agricultural income accounts for less than 5% of total household income (Table 2-2). The impact of land acquisition on the income of affected families is small. Table 2-2 The affected households and population and its income source Affected population Annual income of affected households（RMB） Affected Affected Agricultural non-agricultural Agricultural Village Household Total Male Female income income income ratio Chu Damao 9 5 4 1500 90000 1.67% Chu Yuxi 4 2 2 1500 40000 3.75% Chu Weihua 4 2 2 1500 40000 3.75% Chu Yucai 5 3 2 2000 50000 4.00% Chu Wanghua 9 7 2 2000 80000 2.50% Chu Yuxiong 6 3 3 2000 60000 3.33% Chu Xingzhong 5 2 3 1800 45000 4.00% Zheng Guigui 3 2 1 1500 40000 3.75% Chu Weiming 7 5 2 1600 70000 2.29% Chu Yuhua 5 3 2 1600 50000 3.20% Chu Guanting 18 9 9 1800 150000 1.20% Linchu Lin Lichao 2 1 1 800 40000 2.00% Village Lin Dayang 4 2 2 1800 50000 3.60% Chu Hanfu 8 4 4 3500 80000 4.38% Lin Fengshun 6 3 3 2200 50000 4.40% Chu Xionghong 4 3 1 1800 60000 3.00% Chu Shantao 6 3 3 1800 50000 3.60% Chu Sifu 5 2 3 1500 40000 3.75% Lin Jinquan 5 2 3 2500 40000 6.25% Lin Huowei 7 4 3 1800 60000 3.00% Lin Guoqi 8 3 5 600 80000 0.75% Chu Guansheng 6 3 3 600 55000 1.00 % Chu Guandian 4 3 1 600 40000 1.50% 20 Chu Huoping 6 3 3 600 55000 1.09% Chu Dingyou 4 3 1 600 40000 1.50% Total 150 82 68 39500 1455000 2.71% 2-6 Types and Quantity of Affected Land Attachment The new factory of Hubei Hengxin Chemical Company is located in the chemical industry park in accordance with the Yingcheng City’s urban planning. The land of the park belongs to Linchu Village. The type of land acquisition is 32.34 mu paddy field and 3 mu collective dry lands. Only 2.5 mu of these lands are still planting rice, while 32.84 mu (93%) of the other land has not been cultivated for many years and has changed into shrub forest land. The main attachments on the land are 2122 trees and 16 tombs. Table 2-3 Types and quantities of affected land attachments Village Owner Tomb Tree Chu Damao 0 67 Chu Yuxi 0 68 Chu Weihua 0 69 Chu Yucai 1 110 Chu Wanghua 1 107 Chu Yuxiong 1 108 Chu Xingzhong 0 89 Zheng Guigui 0 53 Chu Weiming 1 72 Chu Yuhua 1 71 Chu Guanting 1 89 Lin Lichao 0 45 Lin Dayang 1 91 Linchu Chu Hanfu 2 178 Lin Fengshun 1 98 Chu Xionghong 1 89 Chu Shantao 1 87 Chu Sifu 1 80 Lin Jinquan 2 134 Lin Huowei 1 89 Lin Guoqi 0 32 Chu Guansheng 0 31 Chu Guandian 0 31 Chu Huoping 0 27 Chu Dingyou 0 28 Village community 0 178 Total 16 2122 2-7 Affected Enterprise and Workers After the conversion project of PFOS of Hubei Hengxin Chemical 21 Company has been incorporated into the World Bank-Global Environment Facility-funded PFOS priority industry reduction and phase-out project in China, the 30 tons/year production line of PFOS will be closed and converted to 80 tons/year production line of PFBSF, and a new 60 tons/year production line of DPEBSF. In order to achieve the conversion and replacement of PFOS, the Company will build new plant and update equipment. After the completion of the new plant, the Company will relocate to the new plant. According to the survey, the company has 54 employees, including 16 technicians. After relocation of the company and the start-up of new production line, the Company planned to increase the number of employees to about 120. The Company will not only not lay off employees, but also need to expand production capacity and employ more than 60 new employees. The wage and welfare of employees will not be reduced. However, after the company moved to a new factory, the distance between most employees' work places and their places of residence increased by about 20 kilometers. In order to solve the problem of employees commuting to work, Hubei Hengxin Chemical Company through consultation with the staff, decided to buy some buses for the pick-up and drop-off. The employees can still pick up and drop off at the existing work place. Changes in the workplace will not have serious adverse effects on employees going to and from work. The basic situation of employees in affected enterprises is shown in tables 2-4. Table 2-4 Basic information of employees in affected enterprises Social Gende Birth Education Address of Employ No Name Duty security r Date Degree household Date status Gao Yueyuan District 1 Male 1955.04 Undergraduate Chairman 2004.04 Retire Baoguo of Yingcheng City General 2 Li Shutao Male 1947.10 Junior College Wuhan City 2004.04 Retire manager Guangming Vice Gao Social 3 Male 1972.10 Undergraduate Market of general 2004.04 Chaohui security Yingcheng City manager Vice Yueyuan District Social 4 Gao Wei Male 1980.01 Undergraduate general 2004.10 of Yingcheng City security manager Shuixian Gard of Director of 5 Xiong Keyi Male 1965.1 Undergraduate 2011.03 Retire Yingcheng City Office 22 Social Gende Birth Education Address of Employ No Name Duty security r Date Degree household Date status Wang Femal Center of 6 1955.03 Junior College Accountant 2011.08 Retire Kaifang e Yingcheng Finance Femal Center of Social 7 Chen Lu 1992.12 Junior College manageme 2015.01 e Yingcheng security nt Center of Social 8 Song Wei Male 1978.11 Junior College Driver 2018.04 Yingcheng security Zhou 9 Male 1951 High school Wuhan Driver 2008.12 Retire Yanyun Chen Junior middle 10 Male 1955.08 Chenta Village Guard 2004.10 Retire Guoxiang school Junior middle Yueyuan District Storekeepe 11 Li Dongqin Male 1949.12 2006.02 Retire school of Yingcheng City r Femal Guangming Storekeepe Social 12 Tao Feng 1979.7 High school 2013.08 e Street 89-2 r security Chen Femal Junior middle Electrolysis 13 1963.11 Xinghe Village 2007.03 Retire Qiumei e school workshop Song Social 14 Male 1962.07 High school Xinghe Village Minister 2010.03 Dongyuan security Yuan Femal Chengnan Road 2007.02. Social 15 1984.10 Undergraduate Marketing Tianting e 145 25 security Chen Junior middle Repair Social 16 Male 1965.08 Xitou Village 2010.05 Hualin school worker security Huang Junior middle Repair Social 17 Male 1981.11 Xiaowan Village 9 2007.07 Hannian school worker security Chen Junior middle Repair Social 18 Male 1968.01 Chenta Village 2006.10 Zhongxin school worker security Wan Repair Social 19 Male 1966.04 High schoo Puyang Road 51 2011.02 HUaping worker security Boiler Social 20 Xia Xinguo Male 1964.06 High schoo Wanjiatai District 2005.02 worker security Chen Junior middle Boiler Social 21 Male 1976.08 Chenta Village 2007.05 Zhijun school worker security Junior middle Repair Social 22 Chne Linan Male 1961.12 Chenta Village 2006.07 school worker security Chen Repair Social 23 Male 1971.1 High school Yanghe Village 2016.02 Xiang worker security Yang Social 24 Male 1966.10 Undergraduate Yueyuan Village Engineer 2010.06 Xiangyou security Yang Femal Fuhua Gard of Social 25 1977.02 High school Analyst 2005.08 Huqiong e Yingcheng City security Gao Junior middle Social 26 Male 1976.04 Chenta Village Analyst 2004.10 Yufeng school security Chen Junior middle Director of Social 27 Male 1972.07 Chenta Village 2006.02 Weihua school workshop security Xiao West Road 53-36 Sulfonation Social 28 Male 1959.07 High school 2010.03 Qiguang of Yingcheng City workshop security Chen Junior middle Sulfonation Social 29 Male 1963.12. Chenta Village 2007.05 Zhiwen school workshop security Song Junior middle Sulfonation Social 30 Male 1961.11 Hongtang Village 2011.02 Minzhou school workshop security Chen Junior middle Sulfonation Social 31 Male 1965.05 Chenta Village 2012.02 Zhongan school workshop security Tian Junior middle Sulfonation Social 32 Male 1966.01 Guoguang Village 2011.03 Sanniu school workshop security Chen Junior middle Sulfonation Social 33 Male 1970.09 Chenta Village 2013.09 Quanxuan school workshop security 34 Chen Male 1967.02 Junior middle Center of Sulfonation 2015.08 Social 23 Social Gende Birth Education Address of Employ No Name Duty security r Date Degree household Date status Guoan school Yingcheng workshop security Junior middle Center of Sulfonation Social 35 Li Jiandong Male 1963.12 2015.08 school Yingcheng workshop security Ren Junior middle Sulfonation Social 36 Male 1980.01 Silipeng 2015.08 Xinhua school workshop security Junior middle Sulfonation Social 37 Gao Yuhe Male 1975.05 Yangling 2016.02 school workshop security Junior middle Director of Social 38 Chen Gang Male 1975.08 Chenta Village 2006.10 school workshop security Femal Junior middle Electrolysis Social 39 Lu Qiuhua 1969.10 Chenta Village 2006.11 e school workshop security Zhu Electrolysis Social 40 Male 1961.04 High school Minjiaxiang 2004.10 Jianhong workshop security Zhang Femal Junior middle Electrolysis Social 41 1976.05 Chenta Village 2004.10 Huaxiang e school workshop security Tian Femal Junior middle Electrolysis 42 1966.10 Chenta Village 2005.06 Retire Minghua e school workshop Yang Femal Junior middle Electrolysis 43 1965.08 Chenta Village 2004.10 Retire Qiaozhen e school workshop Chen Femal Junior middle Electrolysis Social 44 1983.03 Chenta Village 2008.07 Fengxia e school workshop security Guangming Road Electrolysis Social 45 Lu Tao Male 1984.07 Junior College 2007.09 50 workshop security Sun Electrolysis Social 46 Male 1965.05 High schoo Chenta Village 2004.10 Weiming workshop security Femal Electrolysis Social 47 Xu Yanli 1972.11 High school Baiyang 2006.11 e workshop security Femal Junior middle Electrolysis Social 48 Chu YInjun 1971.07 Changjiang 2004.08 e school workshop security Femal Center of Sulfonation Social 49 Chu Sihui High school 2012.11 e Yingcheng workshop security Chen Electrolysis Social 50 Male 1974.02 High school Chenhe Town 2015.03 Junnian workshop security Chen Junior middle Electrolysis Social 51 Male 1965.1 Chenhe Town 2015.12 Dongqing school workshop security Junior middle Electrolysis Social 52 LI Zhuqing Male 1969.03 Huangtan 2016.03 school workshop security Chen Femal Junior middle Electrolysis Social 53 Chenta Village 2011.04 Xiaoping e school workshop security Zhao Junior middle Center of Electrolysis Social 54 Male 1984.04 2018.04 Guang school Yingcheng workshop security 24 3. Resettlement Laws, Policies and Compensation Standards The resettlement work of this project will strictly follow the national relevant laws, regulations and policies of the People’s Republic of China and local governments. Meanwhile, the planning and implementation of the Resettlement Action Plan (RAP) will fully comply with the involuntary resettlement policies of the World Bank. 3-1 Laws, Regulations and Policies for Project Resettlement 3-1-1 National Laws and Policies (1) The Land Administration Law of the People’s Republic of China (revised on August 28, 2004) (2) Regulations on the Implementation of the Land Administration Law of the People's Republic of China (July 29, 2004) (3) Real Right Law of the People's Republic of China (October 1, 2007) (4) Law of the People's Republic of China on Land Contract in Rural Areas (December 29, 2018) (5) Agriculture Law of the People's Republic of China (January 1, 2013) (6) Labor Contract Law of the People's Republic of China (revised in December 29, 2018) (7) Labor Contract Law of the People's Republic of China (adopted on December 28, 2012) (8) Social Insurance Law of the People's Republic of China (revised in December 29, 2018) (9) Decision of the State Council on Deepening the Reform on Strict Management to Land (October 21, 2004) 25 (10) Guiding Opinions on Further Improving Policies on Land Acquisition Compensation and Resettlement (November 3, 2004) (11) Measures for the Administration of Annual Plans on the Utilization of Land (revised in May 10, 2016) (12) Measures of the Ministry of Land and Resources on Pre-examination and Management of Land for Construction Projects (implemented since November 25, 2016) (13) Regulations on Special Labor Protection for Female Workers (Decree No. 619 of the State Council, effective from 2012) (14) Law of the People's Republic of China on Labor Dispute Mediation and Arbitration (adopted on December 29, 2007) 3-1-2 Local Regulations and Policies (1) Measures for the Implementation of Housing Expropriation and Compensation on State-owned Land in Hubei Province (implemented on September 1, 2015) (2) Measures for the Implementation of Land Management in Hubei Province (implemented since September 25, 2014) (3) Notice of the People's Government of Hubei Province on Publishing the Uniform Annual Output Value Standard for Land Expropriation in Hubei Province and the Comprehensive Land Price (effective 1 April 2014). (4) “Guiding Opinions on Handling New Rural Social Insurance in Hubei Province� (implemented on November 12, 2016) (5) “Guiding Opinions of Hubei Provincial People's Government on Participation of Basic Endowment Insurance for Land-expropriated Farmers� (Hubei Provincial Government Document [2014] No. 53) (implemented on January 1, 2015) (6) Notice on Strengthening Housing Expropriation and Compensation on Yingcheng State-owned Land promulgated by the People's Government of Yingcheng (October 24, 2018) 26 (7) Opinions of the People's Government of Yingcheng on the Implementation of Basic Old-age Insurance for Land-expropriated Farmers (from March 2, 2016) (8) Notice on Issues Relevant to Enterprise Reporting on Staff Reduction Program (Hubei Labor and Social Security Department 2009) 3-1-2 World Bank’s Policies on Involuntary Resettlement The project aims to realize the following objectives stipulated in the World Bank’s OP 4.12 on involuntary resettlement: (1) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. During project construction, if involuntary resettlement cannot be avoided, it should be minimized, so as its adverse impacts. (2) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (3) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-project levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 3-1-3 Analysis on Policy Difference between China and the World Bank China's national laws require land expropriators to provide land compensation and resettlement subsidies in order to ensure that the income level of the PAPs who lost the land is restored. This is basically consistent with the World Bank's principles for involuntary resettlement policy OP 4.12 – that resettlement measures should provide PAPs with an opportunity to increase or 27 at least restore their income and living standards. But the two kinds of policies show some differences, which are shown in the following aspects: (1)The World Bank requires the project owner providing direct asset replacement or compensating at replacement cost to the PAPs, and depreciation of house or other assets are not allowed. But China doesn’t have the land market, so there is no land price. The current land compensation price is based on the government's estimated comprehensive land price. (2) Chinese law usually only provides compensation to owners and users of legal property, but the World Bank requires that the project owner provide compensation or other forms of resettlement for those who are owners of the land or resources customarily, not legally (including those who have occupied the land or resources without legal basis but also without any dispute). (3) The World Bank requires that if the project involves land acquisition and house relocation, the project owner needs to prepare a comprehensive Resettlement Action Plan and conduct social impact assessment, and the Resettlement Action Plan and Social Impact Assessment Report shall be deemed as a prerequisite for project evaluation and approval, but China's laws do not make the preparation of the Resettlement Action Plan and the Social Impact Assessment Report as prerequisites for project approval. (4) The World Bank requires a baseline survey of the income of affected households and conducts continuous monitoring to ensure the livelihood restoration of the affected population. The land acquisition compensation standard and income recovery plan shall be determined after full consultation with the affected population. China pays more attention to the compensation of affected households. It only requires the owners to make timely and full compensation. It does not require consultation on the livelihood and income recovery of affected households, formulate plans, and conduct continuous monitoring. (5) The World Bank requires the project owner establishing the internal and external monitoring and evaluation system in the course of resettlement 28 implementation. The internal monitoring shall be organized and conducted by resettlement offices, and the external monitoring shall be conducted by independent monitoring organization with expertise and rich experiences. The monitoring report prepared by PMO and IMO shall be delivered to the World Bank for evaluation from resettlement experts. But monitoring work of resettlement activities in China mainly depends on internal monitoring system; the project owner is not required to employ IMO to conduct independent monitoring. 3-1-4 Resettlement Principles for the Project The basic resettlement principles of the Project are identified as follows: (1) Ensure that the DPs are provided with prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project; and DPs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them. (2) Ensure that the DPs are consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; all legal or illegal affected persons are to be considered and to be included in the resettlement scheme and rehabilitation plan. (3) Ensure that all the PAPs are informed timely of the relevant qualification requirements, compensation rates and standards, production rehabilitation plan, and project implementation schedule; informed about their options and rights pertaining to resettlement. (4) Acquisition of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to DPs. (5) PAPs should be provided with development assistance in addition to compensation measures, such as training, or job opportunities or favorable loans, etc. (6) Ensure that effective and transparent procedures are established to 29 collect and deal with the DPs’ complaints and appeals, so as to ensure that the problems appeared in the project implementation can be solved as soon as possible. 3-2 Compensation Standards for the Project Land Acquisition In 2004, the State Council promulgated the "Decision on Deepening Reform and Strict Land Management", requiring the people's governments of all provinces directly under the Central Government to formulate and publish unified annual output value standards or comprehensive land prices for land acquisition in cities and counties. The unified annual output value standard of land acquisition and the comprehensive land price of the district have become the main basis for land acquisition compensation in China. When formulating the comprehensive land price for the land acquisition, the local government comprehensively considered various factors such as land type, output value, location, agricultural land grade, per capita cultivated land, land supply and demand, local economic development level and minimum living standard for urban residents. The comprehensive land price is similar to the “replacement cost price� in the land market. Table 3-1 Compensation Standards for Land Acquisition Compensation Standards（Yuan/Mu） Category Tea Zone Cultivat Vegeta Orcha Fish Woodla Unused of Zone garde ed land ble field rd pond nd land n City Street Offices of Category Center Cit, Economic 4488 4488 4488 37400 44880 29920 18700 I and Technological 0 0 0 Development Zone North Street Office, Silipeng Street Office, Category Dongmafang Street 4158 4158 4158 34650 41580 27696 17325 II Office, Changjiangbu 0 0 0 Street Office, Huangtan Town Tiandian Town, Category Yanghe Town, Sanhe 3820 3820 3820 32000 38200 25600 16000 III Town, Langjun Town, 0 0 0 Swan Town, Chenhe 30 Town, Yihe Town, Yangling Town, Tangchi Town, Nanyuan Seed Farm According to Notice of the People's Government of Hubei Province on Publishing the Unified Annual Output Value Standard for Land Expropriation and the Comprehensive Land Price in Hubei Province, the land of Yingcheng City should be divided into three types of zones, each of which has formulated a comprehensive compensation standard for land. The area affected by the project belongs to the second category in Yingcheng City. The compensation standard for land acquisition in this area is shown in Table 3-1. According to the survey, there are only two types of land attachments affected by the project: graves and trees. The local graves belong to the simple tomb. The village committee has planned the place where the graves are concentrated. The affected grave owners can transfer the tombs to the planned cemetery after receiving compensation. The trees are mainly shrubs, the caliber is not large, and there are no precious trees. After obtaining compensation, the owners of the trees can cut down or transplant. The compensation rates for these two types of land attachments are shown in Table 3-2. Table 3-2 Compensation standards for land attachments Compensation No. Type of Attachment Unit standard (Yuan) 1 Grave Each 800 2 Tree Each 15 31 4. Income Restoration and Enterprise Relocation Scheme 4-1 DPs’ Income Restoration Measures 4-1-1 Analysis of the Impact of Land Acquisition on Production Conditions and Farmers' Income According to the survey, the new factory construction of Hubei Hengxin Chemical Company needs to expropriate 35.34 mu land of Linchu village of Changjiangbu Street Office, among them, 3 mu lands belong to the village and 32.34 mu lands belong to 25 households. No buildings need to be demolished. After evaluation, the impact of land acquisition on farmers' production conditions and income is very slight. (1) The impact rate of land acquisition is very small. The project land acquisition only accounts for 2.83% of the total cultivated land area of the village. Land acquisition affects 25 farmers, and the impact of land acquisition on the whole village and individual households is very small. (2) 93% of the acquired land is shrubbery land. Now most of the affected village's labor force has been transferred to non-agricultural sectors for employment and the affected area has also been planned as an industrial park due to urbanization. When the acquired land was contracted to farmers, it was recognized as cultivated land, however the acquired land has transformed into shrub forest land. Of the 35.34 acquired land, only 2.5 Mu is still cultivated, while the other 32.84 mu (93%) is no longer cultivated. (3) Income from land accounts for only 2.7% of the income of affected households. According to the income source structure of the affected households, the income of the affected households mainly comes from non-agricultural income, and the average proportion of agricultural income in the total household income is 2.71%. Moreover, of the requisitioned 32 land, only 2.5 mu of land is still being cultivated. Land acquisition only affects the income of four households. Land acquisition has little impact on the income of affected households. 4-1-2 Analysis of the Impact of Enterprise Relocation on Employees' Income Hubei Hengxin Chemical Company will carry out technical transformation through this project to realize the conversion. The implementation of the project will enable the company to expand its production capacity and upgrade its products. According to the company's development plan, after the project is completed, the company's new production line needs to increase the number of employees to about 120 people. Therefore, during the implementation of the project, the company will not lay off employees. On the contrary, it plans to increase the number of employees of 60 people, and the company's profit expectations will increase significantly. The income and benefits of employees will not be affected. However, as the company will be relocated from the Yingcheng Economic and Technological Development Zone to the Saifu Industrial Park in Changjianbu Street Office, the distance between most employees' work places and their residences will increase by about 20 kilometers. For the convenience of employees to work, the Company plans to purchase large buses for picking up and dropping off workers. Workers can still gather at the existing work place and take a bus to the new factory to work. The Company's relocation will not seriously affect the welfare of the employees, and will not cause inconvenience to their life. 4-2 Scheme and Measures for Income Restoration Income restoration is the core objectives of the resettlement plan of this project. According to the nature and characteristics of the project, PMO have designed the income rehabilitation scheme for PAPs and formulated detailed measures for income restoration. 33 4-2-1 Prompt and Sufficient Cash Compensation The area affected by the project is a region where non-agricultural industries are growing rapidly, and it is also a region with a tradition of doing business. There are many development opportunities in the local area. In the past, farmers were unable to seize these opportunities for development because of the lack of funds. After the land is acquired, the government will pay the land acquisition compensation to the affected population in full and on time, and they can start and expand their own individual business. This is the best way to recover and increase PAPs’ income. The project compensation funds must be paid in full and timely, because the timely and partial compensation cannot guarantee DPs to use the compensation funds for productive investment, and if the compensation payment is seriously delayed, the DPs may suffer losses caused by inflation. 4-2-2 Providing Social Insurance for the PAPs The local government provides three forms of social pension security for farmers affected by land acquisition. (1) Let all affected farmers participate in the new rural social pension security. In order to guarantee the basic living of urban and rural elderly residents, Hubei Province has established a system of urban and rural residents' endowment insurance that combines individual contributions and government subsidies in accordance with the state's requirements for establishing new rural endowment insurance, and has achieved full coverage of urban and rural residents. In accordance with the provisions of the "Guiding Opinions on Handling New Rural Social Endowment Insurance in Hubei Province", any urban and rural resident who has a household registration of urban and rural residents in Hubei Province, who is at least 16 years old (excluding students in school) and who does not participate in other social endowment insurance, may voluntarily participate in social pension insurance for urban and rural residents. The social pension insurance fund for urban and 34 rural residents is mainly composed of individual contributions and government subsidies. The Human Resources and Social Security Department has established a life-long record of the personal pension account for each person who participates in the social endowment insurance for urban and rural residents. According to the survey, the rural residents who are affected by the project and are 16 years old or older all have already participated in the new rural social endowment insurance. (2) Purchase urban employee social endowment insurance for newly hired employees. Hengxin Chemical Company will established new factory and hire new employees in the affected areas, and these employment opportunities will be given priority to the affected labors. As long as the affected labor force is willing to work in Hengxin Chemical Company, the company will purchase urban social pension insurance for them, and they may enjoy the same social pension insurance treatment as employees of Hexin Chemical Co., Ltd. (3) Providing pension insurance subsidies for PAPs. According to the “Guiding Opinions on the Participation of Land-expropriated Farmers in Basic Endowment Insurance� issued by the People's Government of Hubei Province in 2014, land-expropriated farmers who meet the following five conditions will be included in the land-expropriated farmers' social security. (a)The contracted land shall be acquired according to law by the people's government at or above the county level; (b) The “Land Contract for Rural Land Contract� or the “Certificate of Rural Land Contractual Management Right� shall be held when the land is acquired; (c) After the land acquisition, the per capita cultivated land area of the family is less than 0.3 mu (including 0.3 mu); (d) At least 16 years of age. The Yingcheng people's government shall provide the one-time pension insurance subsidy for the PAPs, and the subsidy standard is 24,000 yuan/person. For those who are over 60 years old (including 60 years old) at the time of land acquisition, they shall be fully subsidized according to the 35 one-time pension insurance subsidy standard; for those who are under 60 years of age (59 to 16 years old) at the time of land acquisition, the age is reduced by one year. The compensation rate is reduced by 1% of the full subsidy. Those who have reached the age of 60 at the time of land acquisition will be added a personal account pension according to the endowment insurance subsidy funds for the PAPs in addition to enjoying the pension benefits of the original urban and rural residents. Before the land acquisition is submitted for approval, the Yingcheng people's government shall pre-store the compensation funds for the endowment insurance of the land-expropriated farmers in the financial security fund special account opened by the local financial department, and the financial department shall issue the pre-existing funds to the account. The land acquisition approval authority will not approve the land acquisition for the land acquisition project in which the compensation fund for the endowment insurance for PAPs is not implemented. The subsidy fund for the endowment insurance for land-expropriated farmers is included in the cost of land acquisition, and the local government shall give priority to the subsidy from income of state-owned land use rights, and may not be exempted. 4-2-3 Share the Project-related Benefits After the relocation of Hubei Hengxin Chemical Company to the new plant, a 60-ton/year DPOSF production line will be built. At the same time, the 30 tons/year PFOS production line was technically modified to form a 80 ton/year PFBSF production line. The Company will expand production capacity and increase new employees. If the affected labor force is willing to come to the enterprise for employment, Hubei Hengxin Chemical Company will give priority to recruiting them, creating a new source of income for the affected labor, and letting the DPs share the benefits related to the project. 36 4-2-4 Develop Skills Training to Enhance the Ability of DPs In the future, the skill and human capital will be the most important wealth for the affected laborers. So skill development through training may be more useful for the DPs than cash compensation. Local government and PMO will work together to train DPs. The first training program is to provide DPs with agricultural technology and improve the skills of local farmers, support the DPs to take advantage of road upgrading to develop higher value-added agriculture. The second training program is to provide employment training. The skill training program is designed based on demand of DPs and labor marketing needs. After skills training, local government will help them obtain jobs in the cities, and create new income sources for the DPs. 4-2-5 Resettle Vulnerable Groups Combining Rural Poverty Alleviation In recent years, Yingcheng City has implemented the central government's decision-making arrangements for poverty alleviation, build a mechanism for the provinces, counties, and villages to work together to help the poor, establish the responsibility system at different levels, and adopt various poverty alleviation methods to gradually lift all types of poor people out of poverty. The project will combine rural poverty alleviation work to implement the responsibility of vulnerable groups to departments and individuals to ensure that all vulnerable groups can cope with change and get rid of poverty. The local government will focus on health and poverty alleviation work, conduct cancers screening and health checks for women, reduce the burden on women and effectively solve the problem of "being poor due to illness" and "returning to poverty due to illness". 4-3 Resettlement Plan and Measures for Employees of Relocated Enterprises Hubei Hengxin Chemical Company is a Sino-foreign joint venture, high-tech limited company, it located in the provincial industrial park—Yingcheng Economic and Technological Development Zone. The company covers an area of more than 30 acres and has 54 employees, 37 including 16 technicians. At present, the total investment has reached 20 million Yuan. There are more than 40 sets of precision chemical production precision equipment, and the workshop covers an area of 5,000 square meters. At the same time, it has a modern office building and a R&D building of 1,600 square meters. The equipments such as product development, analysis and testing are perfect. The company has produced and operated well in the past three years, and the annual tax payment is about 4 million Yuan. Since its establishment in 2006, the company has earnestly implemented the Labor Protection Law. Every employee has signed a labor contract, purchased insurances, and provided labor protection products in place. Every year, health examinations are carried out for every worker, and wages are paid in full monthly. No violation of the Labor Protection Law occurs, and the legal rights of employees are guaranteed. During the period of relocation, the company will take the following measures to protect the legitimate rights and interests of employees. (1) During relocation period, the company does not lay off employees. Although the company will close the original 30 tons / year PFOS production line, the company will be transformed into a 80 tons / year PFSSF production line through technical improvement, and a new 60 tons / year DPFESF production line will be bulit. The company will not only lay off employees, but also need to expand production capacity and hire more than 60 new employees. After the company's conversion and relocation, the planned number of employees will increase to about 120. (2) The company has established a strict personnel management system and corresponding personnel recruitment policies and procedures in accordance with the company law, and established a standardized salary system. The salaries of employees include: basic salary, post salary, working age salary, overtime pay, and holiday rewards, technical confidential wages, etc. During the company's conversion and relocation, employees' wages and 38 benefits will not be reduced. (3) After the new plant is completed, the company will relocate to the new zone, the working place of employees has changed. In order to facilitate employees to go to work, the company plans to buy buses, pick up and drop off employees to work, and relieve the worries of employees. (4) The company signed a labor contract with each employee, purchased “five-type insurances�, and provided labor protection products in place. Every year, health examinations were carried out, and wages and benefits were paid in full monthly. No violation of the Labor Protection Law occurs, and the legal rights of employees are guaranteed. For female employees, there is a health care subsidy and a “March 8� festival fee. 39 5 Public Participation and Resettlement Information Disclosure According to the World Bank Involuntary Resettlement Policies, “displaced persons should be meaningfully consulted and should have opportunities to participate in the planning and implementation of resettlement programs.� and “the resettlement plan or resettlement policy framework shall include measures to ensure that the DPs learn about technically and economically feasible resettlement options, participate in the consultation, and have right to choose.� The resettlement scheme is designed on the basis of consultation with DPs and their representatives. During the planning, designing and implementation of the project, PMO and local ROs at all levels will also widely disclose resettlement policy through various means and ask for comments from all kinds of stakeholders. 5-1 Focuses of Public Consultation and Participation Public participation and consultation is mainly divided into two dimensions: information exchange and decision-making. Information exchange consists of publication (refers to one-way transfer of information from the project staff to DPs) and consultation (refers to two-way transfer of information, or joint discussion between project staff and DPs who is featured with idea sharing). Decision-making comprises collaboration and extension of choice of affected individuals, households and communities; ensure the DPs and their representatives not only are consulted but also have a voice in decision-making. Public participation and consultation shall continue throughout the whole project cycle. In different project stage, the emphasis and form of public participation and consultation may be different, So PMO arrange various consultation activities based on the key concerns in different project stage. 1. Identify and identify project stakeholders and assess project 40 impact. After determining the new plant area of Hengxin Chemical Company, the local government determined the red line of land acquisition, identified the stakeholders of the project, and evaluated the impact of the project on all stakeholders. Moreover, PMO should fully consider the opinions of local towns and villages and various stakeholders, listen to their voices, pay attention to their interests, and formulate compensation plans for land acquisition on this basis. 2. Listen to the opinions of DPs and determine the compensation policy for land acquisition and the plan for enterprise relocation. In recent years, the Chinese government has continued to reform the land acquisition compensation system to regulate the procedures and improve the compensation standards for land acquisition and demolition, which is conducive to protect the interests of farmers. However, the compensation standards and policies for agricultural land acquisition are frequently adjusted. It has also led to the gradual increase in land compensation standards for farmers, which has brought new problems to the land acquisition and demolition of the project. The local government maintains continuous communication with the Land and Resources Management Department, adopts the latest compensation standard for land acquisition compensation, and conducts full consultation with DPs or their representatives to take the participation of DPs as an important means to improve the resettlement plan. As Hengxin Chemical Company needs to relocate to a new factory during the conversion process, the working place of employees changes. Hengxin Chemical Company has held a number of employee consultation meetings to understand the opinions and requirements of employees on the relocation of enterprises, and to answer the concerns of employees. The company guarantees that employees will not be laid off during the transition period, and will not reduce wages and other benefits, and will purchase buses to provide the means of transportation for employees to and from work so as to relieve the worries of employees. Through consultations, the employees' emotions 41 were stabilized and the legitimate rights and interests of employees were guaranteed. 3. Monitor the implementation of resettlement compensation standards and the payment of resettlement funds. In the project implementation stage, the public is most concerned about whether the land acquisition compensation is paid in full to DPs in time. Therefore, in the project implementation stage, the local government will establish a public participation supervision mechanism even if the land acquisition compensation standard and land acquisition fee payment information are publicized, and timely check the payment progress of land acquisition compensation funds through resettlement internal and external monitoring institutions and networks. 4. Assessment of the living standards of DPs. During the implementation of the project, the local government will also conduct a sample survey of the living standards of DPs to assess the recovery of the living standards of DPs. These assessment activities are mainly carried out by independent monitoring agencies. The goal is to assess the recovery of DPs’ income and their satisfaction with resettlement work through field surveys of DPs. 5. Investigation and negotiation of resettlement willingness of relocated workers. During the relocation of Hubei Hengxin Chemical Company, the working place of the employees was changed, and the distance to and from work was different. Hubei Hengxin Chemical Company conducted a willingness investigation and negotiation for each employee, and decided to purchase a bus to pick up and drop off employees to work and solve the problems that employees are concerned about. 5-2 Way of Public Consultation and Participation In addition to notifying the affected villages and DPs of the land acquisition information, the local government also consults with the public through the following methods. Temporarily conduct a social impact assessment of the 42 project so that the project planner and decision makers can identify the needs of the residents in the affected area, especially the needs of the vulnerable groups in the project affected areas. To protect the legitimate rights and interests of DPs, avoid social risks in project implementation, ensure that DPs can obtain development opportunities and benefits from the project. The second way is to hold a face-to-face meet with DPs, fully understand the requirements of resettlement compensation for DPs, and solicit opinions from the employees of the relocated enterprises, in order to formulate a more realistic plan for production recovery and employee resettlement (Figure 5-1). Figure 5-1 Negotiation and Willingness Survey Record for Hengxin Company Staff During the implementation of the project, the main concerns of the affected employees are as follows: (1) Will their own jobs be abolished? (2) Will your skills adapt to new job requirements? (3) Will your income and benefits be affected? (4) Is the new work environment safe? (5) Is it convenient to go to work in a new factory? In response to the problems reflected by the employees, Hubei Hengxin Chemical Company conducted serious research and made commitments to the affected employees in the following aspects. (1) After the company realizes the conversion, the production capacity will 43 further expand, and more than 60 employees need to be added. The Company will not cut existing employees. (2) The Company's new production line has no major changes to the production skills requirements of employees. The skills of employees can be qualified for new positions. Individual positions require new skills. The Company will also provide staff skills through training, and no employees will be dismissed because of the Company’s conversion. (3) The Company will build a new production workshop in the new plant area, the working environment and safety facilities will be better, and the working environment of the employees will be improved. (4) After the new production line is put into production, the Company expects a large increase in profits, and the income and welfare of employees will not decrease. (5) Due to the change of the Company's work place, the distance between the work and place of residence place for most employees has increased by nearly 20 roads. In order to facilitate employees to go to work, the Company plans to purchase bus buses and pick up and drop off workers to and from work. After consulting with the employees, the employees’ worries were alleviated, and the Company’s measures to buy buses to pick up and drop off workers to work were also agreed. The employees are also willing to go to work in the new factory. 5-3 Resettlement Information Disclosure Resettlement information disclosure is an important method to establish trust relationship between the governments and DPs; it also can create favorable environment for resettlement implementation. In order to safeguard the DPs’ rights to obtain information about resettlement options, compensation standard and rehabilitation measures, PMO will take the following measures to disclose the information. 44 1. Disclosing resettlement information by announcement. PMO requires that all resettlement information (such as the amount of Land requisition for every household, resettlement policy, compensation standards, and the total cash compensation for every household) shall be disclosed on the bulletin of the project-affected villages. In September 2019, after Resettlement Action Plan was approved by the World Bank and local governments, the PMO published the Resettlement Action Plan on the official website (Figure 5-2). The project's stakeholders can access the Resettlement Action Plan online. Figure 5-2 Information disclosure of the Resettlement Action Plan 2. Disclosing resettlement information through media. PMO will select suitable media such as TV or newspaper to disclose resettlement information, which make the stakeholders of the project know the project implementation timely, so that they may arrange their living better and avoid some potential conflicts. 3. Send resettlement information to affected households via SMS, WeChat etc. PMO will use mobile phone text messages and WeChat to send resettlement information to affected families. The information includes the 45 World Bank's resettlement policy, the resettlement method determined by the project, the amount of land acquisition and house demolition, the cash compensation paid to each affected household, and the time schedule for resettlement implementation. 46 6 DPs’ Grievances and Complaints During the project implementation, it is inevitable that some DPs may think they are being unfairly treated, so the World Bank requires PMO should establish a simple, convenient and effective channel for treating PDs’ grievances and appeals. The establishment of such channel can reduce the likelihood that the DPs openly resist the project. Furthermore, through collecting and analyzing the DPs’ grievances and appeals, ROs can eliminate many potential social conflicts in advance; It is also an important method to improve the resettlement program and promote the resettlement successfully. For the purposes of guarantee the interests of DPs, PMO will establish a highly transparent and fair procedure to collect and deal with the grievances and complaints so as to ensure that the DPs’ grievances may be handled objectively, justly, timely and efficiently. 6-1 Methods to Collect Grievances and Complaints PMO will take the following methods to collect the DPs’ grievances or complaints: (1) The ROs at every level are the main channels to collect the DPs’ grievances or complaints. In every local resettlement office, at least one full-time personnel will be responsible for receiving and dealing with the DPs’ grievances and complaints. The resettlement office at every level should record and save the files about the DPs’ grievances and complaints and regularly report to superiors. The format of recording files about collecting and dealing with the DPs’ grievances and complaints is shown as Table 6 -1. (2) The relevant departments of government such as Petition, Auditing, and Supervise Department are also the important organizations for receiving the DPs’ grievan ces and complaints. PMO will establish a linkage and connected networks with these organizations. 47 (3) The interview and survey undertake by IMO is also an important channel for collecting DP’s grievances and complaints. PMO will pay more attention to the issues reported by IMO. (4) PRO will accept the DP’s letters or have interview with DPs, directly receive DPs’ grievances or complaints. Table 10-1 Format of the DPs’ Grievances and Complaints Basic Information the Complainant Name Gender Address Telephone number Name of the staff Name of the and organization recorder The content of the DP’s grievances and complaints Date of grievance Brief description of the DP’s grievances The requirements of DPs Treatment advice Legal basis of treatment 6-2 Procedures for Dealing with Grievances and Complaints The procedures for handling PAPs’ complaints in this project are divided into two categories: one is the procedures for the employees of Hubei Hengxin Chemical Company; the other is the procedures for PAPs. 1. Procedures for Hubei Hengxin Chemical Company Employee’s complaint The first stage: If a worker has a labor dispute with the Company, and the laborer negotiates with the employer, the trade union or a third party may also 48 consult with the employer to reach a settlement agreement. The second stage: if a labor dispute arises and the parties are unwilling to negotiate, fail to negotiate, or fail to perform after the settlement agreement, they may apply to the mediation organization for mediation; The third stage: if you are unwilling to mediate, mediate or fail to fulfill the mediation agreement, you can apply to the labor dispute arbitration committee for arbitration; The fourth stage: If you are dissatisfied with the arbitral award, you can file a lawsuit in the people's court. 2. Procedures for the PAPs’ complaints Resettlement offices at all levels should conduct field investigation on the DP’s grievances or complaints, carefully hear the voices of the displaced persons and fully consult with DPs; and put forward treatment advice objectively and fairly based on the national resettlement laws or policies. If the DP’s grievances are beyond the authority of the local resettlement office, local resettlement office should report to the superiors timely. The detailed procedures for dealing with grievances and complaints are as follows: 1. The First Stage. DPs may present their grievances to the village committee or the local resettlement office orally or in a written form. For oral grievances, the village committee or the local PRO must keep a written record and provide a clear reply within two weeks. When it involves serious problems needing to be reported to the RO at a higher level, the village committee or the local resettlement office must endeavor to obtain a reply from the PRO at the higher level within two weeks. 2. The Second Stage. In case that reply at the First Stage does not satisfy the complainants, the complainants may appeal to the Street Office within one month after receiving the reply at the first stage. The Street Office must make a decision within three weeks. 3. The Third Stage. In the event that DPs are not satisfied with the reply of the PROs at district level, they may appeal to Land Management Bureau of 49 Yingcheng City within one month after receiving reply at the second stage. The Land Management Bureau of Yingcheng City shall make a reply within four weeks. 4. The Fourth Stage. In case that DPs are not satisfied with the reply at the third stage, they may appeal to the civil court within 15 days after receiving the reply from Land Management Bureau of Yingcheng City. 6-3 Collection and Dealing with DPs’ Complaints The ROs at all levels must investigate and study the complaints and grievances from DPs. After full consultation with DPs, they should submit their opinions in an objective and fair manner in accordance with the principles and standards stipulated by the national laws and RAP. If DPs appeal problem exceeds the authority of ROs at the same level, it must be promptly reported to the higher RO and assist in the investigation. Table 6-2 Notice of reply to DP’s grievances and complaints Name of the complainant Address of the complainant A brief content of the complaints or the requirements of complainant A brief description of the complaints-resolved process Results of fact-investigation and proposals for dealing with the DPs’ complaints The policy basis of treatment Name of the Address of the organization Telephone number If the DPs are not satisfied with organization the reply, he/she can continue to appeal to Name of organization Date of reply responsible for this reply During the resettlement implementation, women may have their special 50 complaints or appeals, so PMO has planned to hire at least one female staff for each resettlement team. This female staff is responsible for dealing with the women’s complaints. The local government and NGOs such as Women’s Association or The Association for the Disabled will also monitor the resettlement activities. They may accept the women and the disabled persons’ appeals and committee to safeguard the vulnerable groups’ rights. If DPs’ grievances or complaints have been treated by ROs based on investigation and national resettlement policy, RO shall promptly inform the complainer himself the treatment result and have an obligation to explain the treatment. RO shall reply to the complainer in written form. The reply notice shall be duplicated into two files. One copy file shall be delivered to the complainer himself, another file shall be stored in RO as archival materials. The format of reply notice is shown in table 6-2. 51 7 Resettlement Organizations and Institutional Arrangement Effective resettlement depends on the commitment and capacity of organizations responsible for resettlement preparation and implementation. For the purpose of successful implementation of the project’s resettlement, resettlement organizations at every level have been established in Yingcheng City. PMO will take measures to improve resettlement agency networks, train the staffs and strengthen the capacity of the ROs at every level. 7-1 Resettlement Organizations Network In order to ensure the resettlement work is implemented successfully, National PMO and local PMO at province level have been established. Since the land acquisition and demolition is mainly carried out by the local government, Yingcheng City has also establish ROs at all levels to implement the land acquisition for the project. The organization network of the project is shown in Figure 7-1. National PMO （ECC of EPM） RO at Province Level （EPD of Hubei） Land Management Bureau of Yincheng City Street Office of Changjiangbu IMO Hengxin Linchu Village Committee Company Figure7-1 the Network of ROs 52 7-2 Responsibilities of ROs 1. National PMO. The National PMO is the Environmental External Cooperation Center (FECO) of the Ministry of Environmental Protection and is responsible for the project management, supervise the implementation of RAP of the project and report the implementation progress to the World Bank. 2. Local PMO at Province Level. Supervise the local government to implement the project, review RAP and resettlement monitoring report submitted by ROs of Yincheng City, assist the National PMO and the World Bank in verification and supervision; submit resettlement monitoring report to national PMO on a regular basis, and are responsible for providing skill training to staff of ROs at all levels. 3. Land and Resources Bureau of Yingcheng City. Responsible for determining the scope of land acquisition for the project, check and disclose compensation plan for land acquisition of the project, and review the land acquisition compensation policy. 4. Changjiangbu Street Office. Organize the survey and measurement of the land acquisition area, confirm the type and quantity of land acquisition with the village committee and affected households, formulate a land acquisition compensation plan, and be responsible for implementing the land acquisition of the project. Negotiate with DPs, sign the land acquisition compensation agreement with the farmers, and be responsible for raising resettlement funds and timely reimbursement of compensation funds to DPs according to the resettlement progress. 5. Linchu Village Committee. Assist Street Office to measure the land, confirm the type and area of land acquisition for each household, negotiate with the villagers, assist in formulating compensation plans for land acquisition, and implement compensation and resettlement for land acquisition. Timely collect complaints and grievances from DPs during the resettlement implementation, and be responsible for timely disclosure of resettlement 53 compensation standards and resettlement methods, rights and obligations of DPs, and the schedule of project implementation. 6. Hubei Hengxin Chemical Company. Negotiate with employees, formulate resettlement plans for enterprise employees, assist local governments to implement RAP, and accept monitoring and evaluation from PMO. 7. Independent Monitoring Organization. During the implementation of the project, PMO at the province level will entrust professional institutions with rich experience to carry out external monitoring of the project. IMO will use its own method to conduct continuous follow-up monitoring of the project resettlement implementation and objectively evaluate the effect of resettlement. Its main responsibilities include: responsible for monitoring the compensation standards for resettlement and the cashing of compensation funds to ensure that the resettlement activities of the project follow RAP. Through the sample survey, the living standard of DPs will be investigated, and the project resettlement effect will be comprehensively and objectively evaluated. Be responsible for submitting an independent monitoring report to the World Bank every six months during the resettlement implementation period. 7-3 Arrangements for Resettlement Implementation The project will accept the “resettlement implemented mainly by local governments� model. Under this model, National PMO and Local PMO at the province level are mainly responsible for the resettlement planning and macro management, and the specific resettlement implementation activities are implemented by the local grassroots government. The detailed institution arrangements for resettlement implementation are: (1) National Project Office and Local PMO shall guide and supervise the local government to formulate RAP in accordance with the requirements of the World Bank, contact and communicate with the World Bank in a timely manner, 54 and submit the project resettlement implementation to the World Bank in a timely manner. (2) Land and Resources Bureau of Yingcheng City and Changjiangbu Street Office shall be responsible for formulating detailed land acquisition compensation plans according to national and local laws and policies, conducting measurement, registration and verification of land acquisition and demolition quantity, and negotiating with DPs to sign compensation agreements. Raise the compensation funds for land acquisition and timely cash them to DPs. (3) Linchu Village Committee is responsible for organizing consultations with the villagers. After measuring the land area, it is responsible for the compensation information disclosure within the village. Assist the street office to pay compensation for land acquisition, and timely collect and reflect complaints and appeals from DPs. 55 8 Resettlement Cost Budget In order to accurately and transparently reflect all resettlement costs and incorporate all of these costs into project costs, local government has prepared budget for the resettlement activities. The budget includes estimates of resettlement costs, sources of funds, procedures for disbursement of funds, and plans for annual use of funds. 8-1 Classification of Resettlement Cost The resettlement costs of the project can be divided into four types: the compensation for land acquisition, the costs for land attachment, the cost for resettlement organization operation and the cost for the contingencies. 1. Compensation cost for farmland acquisition. The compensation costs are mainly the fees paid for the acquisition of cultivated land (including young crops). According to the requirements of the World Bank, the acquisition of property is subject to compensation at the replacement cost. Once the scope of land acquisition is determined, local government should pay the compensation in time, which helps to avoid the cost increase caused by inflation. 2. Compensation for land attachments. This part of the cost is mainly for the compensation of trees and graves on the acquired land. These compensation fees are paid directly to DPs. 3. Pension subsidies for land-expropriated farmers. After the land acquisition, the per capita arable land area of the family is less than 0.3 mu (including 0.3 mu), and the farmers who have reached the age of 16 are included in the endowment insurance for land-losing farmers. The project has been confirmed by the local government and there are 20 qualified candidates. The Yingcheng People's Government granted a one-time subsidy of 24,000 yuan to the land-expropriated farmers. The compensation fund for the 56 endowment insurance for land-expropriated farmers totals 480,000 yuan. The subsidy fund is included in the cost of land acquisition and cannot be reduced or exempted. 4. The Cost for ROs operation and management. The cost for ROs operation and management include all operating expenses incurred during resettlement preparation and implementation. It includes the cost of paying personnel and equipment at all levels of ROs, the costs for RAP, the training cost for the staff in ROs, the cost for capacity strength and consulting services, and the cost for internal and external resettlement monitoring. 5. The cost for the contingencies. During the implementation of the project, unpredictable impacts and responsibilities may make the resettlement costs exceed the original estimates. Underestimation of resettlement costs often leads to cost overruns. These financial problems will only occur during the implementation process. Therefore, adequate cost for the contingencies is very important for resettlement. If the estimated cost is insufficient, any best budget will only have a small value. There are many reasons for under-estimation of resettlement cost, such as cost increase of land acquisition due to inflation or change in design. In such cases, if the implementation is carried under the previous budget, there will be financial problems that may lead to unsuccessful implementation of resettlement. For this reason, based on inflation expectations during project implementation period and other unpredictable factors, the contingencies for this project are calculated by 10% of the land acquisition cost. 8-2 Estimation of Resettlement Costs According to the preliminary calculation of the cost for land acquisition of the project, according to the current price, the total budget cost for resettlement of the project is RMB 2,105,756 Yuan. The total budget and cost type is shown in Table 8-1. 57 Table 8-1 Resettlement Cost Budget Compensation Quantity of land Compensation No Type of resettlement cost standard acquisition fee (Yuan) A The cost for land compensation 1228531 1 Cultivated land acquisition cost 34650(Yuan/Mu) 35.34Mu 1224531 2 The cost for young crops 1600(Yuan/Mu) 2.5Mu 4000 B The cost for land attachment 44300 3 The cost for tombs 800(Yuan/Each) 16 12800 4 The cost for trees 15(Yuan/Each) 2100 31500 C Pension subsidies for land-expropriated farmers 480000 Pension subsidies for 5 24000Yuan/person 20 person 480000 land-expropriated farmers Total basic cost of land acquisition 1752831 The cost for ROs operation D 177642 and Training 5% of basic cost of 5 The cost for ROs operation 87642 land acquisition 6 Resettlement monitoring cost 80000 7 Training cost 10000 10% of basic cost of E The cost for the contingencies. 175283 land acquisition Total Resettlement Cost 2,105,756 8-3 Disbursement Procedures for Resettlement Funds The land acquisition compensation fund of this project will be strictly implemented in accordance with the following fund disbursement process, and will be implemented by the Changjiangbu Street Office. The land compensation payment process and the land property transfer path are shown in Figure 8-1. 1. The Changjiangbu Street Office shall pay the compensation for land acquisition to Linchu Village Committee in accordance with the land acquisition compensation standard determined by RAP. The village committee will pay the young crop fee and 90% of the land compensation fee to DPs. Then through land acquisition, agricultural land is converted into construction land, and rural collective land is transformed into state-owned land. The village committee will retain 10% of the land compensation fee and use them for the public infrastructure construction in the village. 58 2. After land acquisition has completed, Changjiangbu Street Office will construct roads and other infrastructure according to the requirements of the park planning. The land will be transferred to Hubei Hengxin Chemical Company through tendering, and the company will pay the land purchase fee to the Changjiangbu Street Office according to the bidding price, the Company obtained the use right of state-owned construction land. Hubei Hengxin Chemical Company Land property transfer Land compensation fund payment Land auction The Company obtain The Company land use rights paid land fee Changjiangbu Street Office Conversion of farmland Land acquisition Linchu Village obtain into construction land land compensation Linchu Village Committee Affected Households DPs Affected Households Figure 8-1 Payment of land acquisition compensation funds and transfer of property rights 59 9 Resettlement Monitoring and Evaluation 9-1 Purpose of Resettlement Monitoring & Evaluation According to World Bank’s OP 4.12 on Involuntary Resettlement, PMO shall establish an internal and external resettlement monitoring and evaluation system and continuously monitor resettlement activities so as to ensure the resettlement activities is carried out in accordance with the policies or principles identified in RAP, and when resettlement has been completed, PMO shall evaluate the living standards of PAPs in order to safeguard the objectives established in RAP can be achieved. Monitoring and evaluation is the main management mechanism to correct wrong approaches appeared in the process of resettlement implementation. The aim of resettlement monitoring is to realize the existed problems or successful experiences in the process of resettlement implementation as soon as possible so as to adjust resettlement scheme promptly. According to requirements of World Bank, PMO shall establish an internal and external resettlement monitoring and evaluation system. The internal monitoring is organized and performed by the ROs, while the external monitoring is implemented by independent monitoring organization with rich expertise and relevant experiences. The purpose of internal monitoring is to regulate and guide the resettlement activities of all ROs, and ensure the resettlement activities are carried out in accordance with RAP, so as to safeguard resettlement works progress orderly and efficiently. It also aimed to ensure ROs be able to grasp actual progress of resettlement promptly and realize and then solve the problems appeared in the process of resettlement implementation. The purpose of external monitoring and evaluation is to monitor and evaluate whether the target of the land acquisition, structure relocation are 60 realized and through external monitoring, IMO shall put forward opinions or suggests about land acquisition, structure relocation and income rehabilitation, and provide recommendations to PMO so as to take timely actions to guarantee the objectives of resettlement policies can be achieved. 9-2 Internal Resettlement Monitoring Internal monitoring system is a constant monitoring system on the implementation of RAP. This system is performed by the internal management organizations of PIU. The aim of this system is to make PIU has a full, instant and precise control on the resettlement progress, and can promptly identify and solve problems appeared in the process of resettlement. 9-2-1 Contents of Internal Monitoring 1. Checking and Verify the Amount of Land Acquisition The internal monitoring organizations together with local governments will investigate and check the amount of land acquisition or structure relocation. It is a basis for resettlement and compensation; it is also an important responsibility of internal monitoring organization. 2. Monitoring on the Progress of Resettlement Activities The internal monitoring system will mainly grasp the progress of the overall schedule and annual plan of resettlement, progress of the staffs and equipment allocation of resettlement organization; implementation progress of permanent land acquisition; implementation progress of distribution of resettlement compensation; progress of production rehabilitation or public facilities; industrial enterprises relocation and construction progress, labor employment arrangement progress and progress of other resettlement activities. 3. Monitoring on Implementation of Resettlement Policies and Compensation Rates. The internal monitoring organization shall monitor fulfillment of the 61 resettlement policies and compensation rates. The key is to monitor establishment and implementation of resettlement policies, and the compensation rates for various assets affected by the project. The internal monitoring organizations shall focus on whether compensation is paid in accordance with compensation rates identified in the RAP. If the compensation rates have changed, the internal monitoring organization shall explain the reason. 4. Monitoring Resettlement Budget and Budget Execution The main task is to monitor the amount and time of resettlement fund appropriation, collect the information about resettlement fund use and management, the progress of land compensation paid to land owners, the use plan of resettlement fund at the village level, and supervision the use of resettlement fund. 5. Monitoring on Production Rehabilitation and Employment Arrangement for DPs The internal monitoring organizations shall monitor the major means of production rehabilitation, the status of the DPs employed, the production rehabilitation of relocated enterprises, the income rehabilitation of the vulnerable groups (including ethnic minority, women, the elderly, the disabled persons, and the poor household, etc.), the results of production and income rehabilitation. 6. Monitoring on Rehabilitation and Reconstruction of Enterprises The internal monitoring organizations shall continuously monitor on production rehabilitation of all affected enterprises, and the labors employment. 7. Monitoring on Collection and Solution of Complaints, Appeals from Displaced Persons The PO shall establish the channels, procedures and organizations to deal with the displaced persons’ complaints or appeals. The internal monitoring organizations shall record and analyze the complaints or appeals 62 from the displaced persons. If the problems collected from the displaced persons are the common problems and can be resolved only by ways of policy adjustment, it is necessary to report to the government promptly, so as to formulate new policy to deal with the problems. At the same time, the PO shall prepare Resettlement Information Booklet and disclose the resettlement information to the displaced persons. 8. Dealing with the Problems Reported from IMO. The internal monitoring organization shall review the report from IMO timely, maintain communication with IMO and develop solutions to the problems. If the new policy to solve resettlement problem is beyond the scope of PRO’s authority, PRO shall report to the higher level of government and formulate or implement new policies. 9-2-2 Internal Monitoring Methods The following methods are adopted in the Internal Monitoring of the Project based on the project implementation status: 1. Standardized Statistics Report System The PMO will adopt standardized statistics report system according to the needs of resettlement works. The content of includes progress of completion of land acquisition and structure relocation, progress of resettlement fund appropriation and the main complaints or appeals from the displaced persons. 2. Regular or Occasional Report System PMO shall adopt various forms to exchange resettlement information between IMO and the resettlement organizations at all level. The resettlement organizations and IMO shall discuss and analyze together the problems appeared in the process of resettlement implementation and present solutions to deal with the problems. 3. Site Inspection The PRO will perform routine and non-routine field inspections of the resettlement work, solve resettlement problems on the spot and monitor the 63 resettlement schedule and execution status of the resettlement policies. 4. Exchange Information with IMO The PMO will keep frequent communication and information exchange with IMO; promptly report the findings and results from IMO to the leaders. PRO is also responsible for coordinating resettlement organizations at all levels, and dealing with the problems reported from IMO. 9-3 External Resettlement Monitoring &Evaluation In the process of project implementation, an external monitoring organization that is experienced in resettlement shall be employed to monitor resettlement activities regularly and evaluate the effect of resettlement. The external monitoring organization is also responsible for evaluating the change of the DPs’ income before and after resettlement. 9-3-1 Contents of External Monitoring 1. Monitoring on Compensation Standards and Payment of Compensation Through field survey and interview with the affected persons, IMO will check and verify the resettlement works. The emphasis of monitoring is whether the compensation standards are executed in accordance with RAP or RPF, whether the compensation is paid to the DPs timely. 2. Monitoring on Rehabilitation of Income and Living Standard IMO will conduct survey before and after project implementation so as to evaluate the variation in the DPs’ living standards or their income. The emphasis of evaluation is to monitor and analyze the change of income sources and assess whether the DPs’ income is restored or improved. 3. Providing Suggestions to Improving Resettlement Works The IMO shall provide opinions and suggestions to resettlement organizations on time according to the results of external resettlement 64 monitoring and evaluation so as to improve the resettlement works. 4. Providing Training for Resettlement Organizations The IMO is responsible to provide technical assistance and training for resettlement organizations so as to make the workers of resettlement organization fully understand the World Bank’s resettlement policy and procedure. 9-3-2 Methods of Independent Monitoring &Evaluation 1. Household Interview The IMO will conduct face-to-face interview with the affected households to give audience to the complaints, grievances and suggestions of the DPs; and inform the information about resettlement to the displaced persons, IMO is also responsible to explain the relevant national policies or World Bank’s resettlement policies for the DPs. 2. Occasional Seminars Occasional Seminars are held with the affected persons in regions where the affected persons are concentrated. The representatives of displaced persons, local officers and the workers of resettlement organizations will be invited to take part in the seminar. They can express their opinions freely in the seminar. Such seminars may be formal or informal. 3. Baseline Living Survey The IMO will perform continual monitoring on the change of their income levels and income structures. IMO will evaluate objectively the degree of income and living standard rehabilitation of the displaced persons by way of comparing the displaced persons’ living standards before and after the land acquisition. 9-4 Resettlement Monitoring Report System 9-4-1 Internal Resettlement Monitoring Report System Internal resettlement monitoring is a continuous process. After the project 65 starts, the internal monitoring organization shall compile internal progress reports and submit it to World Bank half a year. 9-4-2 External Resettlement Monitoring Report System The IMO compiles external monitoring reports based on the observation and survey data, and will report independently to the PMO and World Bank. The reporting cycles to World Bank and PMO are as follows: (1) The semi-annual external resettlement monitoring report shall be submitted to World Bank and PMO before 30, June every year. (2) The annual evaluation report shall be submitted to World Bank and PMO before 31, December every year. (3) When all resettlement activities have been finished, a resettlement Post-evaluation Report will be submitted to World Bank by IMO. 66 10 PAPs ’ Entitlement Matrix and Schedule for Resettlement Implementation 10-1 PAPs ’ Rights and Entitlement Matrix In the process of resettlement, the rights enjoyed by all types of property owners should be fully protected. These rights are listed in the Entitlement Matrix (Table 10-1). Table 10-1 Entitlement Matrix Type of Entitled Entitlements loss persons (1) Affected villages will receive compensation for cultivated land. 90% of the land compensation fees are paid to the contractors, and 10% of the land compensation fees are paid to the village, it will be used for public welfare of the village. (2) The affected population will receive compensation for young crops directly. (3) Hexin Chemical Company will give priority to the project-related employment opportunities for the PAPs. If the affected labor force is willing to work in Hengxin Chemical Company, The company will purchase urban social pension insurance for them, and they may enjoy the same treatment as employees of Hengxin Chemical Company. (4) All PAPs have already participated in the new rural social endowment Affected Permanent insurance, and the Human Resources and Social Security Department has villages/ land established a life-recorded personal pension account for each person who groups or acquisition participates in the social endowment insurance. Those who participate in the persons social endowment insurance may receive pensions on a monthly basis when they are 60 years old, and do not enjoy the basic pension insurance for urban workers, or other pensions prescribed by the state and the province, （5） For the contracted households whose land has been expropriated, the per capita cultivated land area of the households after land acquisition is less than 0.3 mu (including 0.3 mu) and the age of 16 years old. The Yingcheng People's Government will provide a one-time subsidy of 24,000 yuan for the land-expropriated farmers. The compensation fund for endowment insurance for land-expropriated farmers is included in the cost of land acquisition and may not be reduced or exempted. (6) The project owner gives priority to providing technical training to the PAPs. Ground Property attachment All ground attachments will be compensated at replacement cost in cash owner s (1) The affected enterprise does not lay off any employees, and the wages Affected Affected and welfare of employees do not decrease. enterprises workers (2) Hengxin Chemical Company will buy buses to transport employees to work and home after relocating to the new plant. 67 Type of Entitled Entitlements loss persons (1) The collective-owned land is not redistributed within the village, not less than 90% of total land compensation will be paid directly to PAPs to restore their income and living standard. (2) PAPs have the right to choice the options of income rehabilitation, the income restore program should be negotiated with PAPs and approved by PAPs. Income (3) The project owner will provide preferential employment opportunities and rehabilitati All PAPs technical training for the affected persons on measures (4) Affected laborers can get same wages as before land acquisition. (5) Persons over 60 years old (including 60 years old) at the time of land expropriation shall be fully compensated according to the standard of one-time old-age insurance compensation; for those under 60 years old (59 to 16 years old) at the time of land expropriation, the standard of compensation shall be reduced by 1% of the total compensation for each reduction in age of one year. (1) All resettlement plans must take into account the special needs of women Special and minorities, and women should have a broad right to know. support 2) Give priority to providing employment opportunities for vulnerable groups, All vulnerable policies for especially women and the poor. groups vulnerable 5) Local government will establish a formal social security system for the groups affected population whose land is completely requisitioned or lose their ability to work, so that they can obtain stable and sustained income. (1) All PAPs have the right to appeal to resettlement agencies at all levels and the local government. The resettlement agencies and local governments must PAPs’ All PAPs with give clear answers. If the PAPs is dissatisfied with the response, they can go complaints complaints to court. and about land grievances acquisition 2) All resettlement agencies need to employ at least one female staff member to handle complaints and appeals from women. 3) Exemption from various fees for PAPs’ complaints and complaints. Informati The Resettlement Action Plan will be published on the Internet to facilitate on PAPs enquiries; documents such as resettlement plan, land acquisition and All PAPs disclosur demolition quantity and compensation standards should be disclosed to all e PAPs. 10-2 Schedule for Main Activities of Resettlement The red line of the project land acquisition has planned to be determined in May-June 2019. Local government will negotiate with PAPs in July-August, sign land requisition agreement, and carry out land tendering in September 2019. The construction of new plant will start in October 2019, and enterprise relocation plan to be completed, production conversion will be realized in 2021. According to the overall implementation schedule of the project, the main resettlement activities of the project are shown in Table 10-1. Figure 10-1 Schedule for the main resettlement activities 2019 2020 2021 No Resettlement Activities 5 7 9 11 12 1 3 5 9 12 1 3 6 12 1 Establishment of ROs Resettlement Consultation 2 and Policy Training 3 Land Acquisition Survey 68 2019 2020 2021 No Resettlement Activities 5 7 9 11 12 1 3 5 9 12 1 3 6 12 and Impact Assessment Consultation with Local 4 Governments and PAPs on Compensation Policies 5 Preparation for RAP Conduct on-site Survey to Determine the Quantity of 6 Land Acquisition and Demolition Negotiating with PAPs and Signing Compensation 7 Agreement for Land Acquisition Paid Compensation to the 8 Village and PAPs Removal of Land Attachments and 9 Transferring Land for Construction 10 Engineering Construction External and Independent 11 Resettlement Monitoring Post-resettlement 12 Assessment 69