Draft Environmental Impact Assessment. People s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project

Transcription

1 Draft Environmental Impact Assessment May 2017 People s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project Part 3 Prepared by the Heilongjiang Provincial Government for the Asian Development Bank.

2 293. JX 4.3 Gonggu Flyover: air quality. Table VI-24 presents the predicted maximum pollutant concentrations near the Gonggu Flyover boundary, with modeling results shown in Figure VI-13. The results indicate that the maximum CO and NO 2 ground-level concentration values will comply with Class II standard limits of Ambient Air Quality Standard (GB ) during future operation. Table VI-24: Maximum pollutant concentration projections for Gongqu Flyover (Jixi) Sensitive Pollutant Year Predicted value Contribution mg Baseline mg/m 3 Prediction Standard Receptor mg /m 3 /m 3 mg/m 3 mg/m 3 Baoquanwei NO2 Short term 1h (2022) 24h Annual Medium term 1h (2027) 24h Annual Long term 1h (2037) 24h Annual CO Short term 1h (2022) 24h Medium term 1h (2027) 24h Long term 1h (2037) 24h Maximum NO2 Short term 1h ground (2022) 24h concentration Annual location Medium term 1h (2027) 24h Annual Long term 1h (2037) 24h Annual CO Short term 1h (2022) 24h Medium term 1h (2027) 24h Long term 1h (2037) 24h

3 1h NO2 contour (short term) 1h CO contour (short term) 24h NO2 contour (short term) 24h CO contour (short term) Annual NO2 contour (short term) 1h CO contour (medium term) 1h NO2 contour (medium term) 24h CO contour (medium term)

4 24h NO2 contour (medium term) 1h contour (long term) Annual NO2 contour (medium term) 24h contour (long term) 1h NO2 contour (long term) Annual NO2 contour (long term) 24h NO2 contour (long term) Figure VI-13: Predicted air quality contours for Gonggu Flyover during operation 294. JX 4.3 Gonggu flyover: noise. There are 156 households in the Baonquanwei district within 200 m of Gonggu flyover right-of-way, including 60 households within 35 m of the road boundary. Table VI-25 presents the predicted noise levels at selected households, with modeling results shown in Figure VI-14. The predictions indicate that the noise levels will exceed the standards in short, medium and long term in nighttime for the Class 4a area. For the Class 2 area, the noise level will exceed standards for night time noise in the medium and

5 long term. To mitigate these impacts, noise insulation windows will be installed for affected households, which are predicted to reduce interior noise levels to below the relevant standards (Table VI-26). The total cost for the insulation windows is estimated at RMB 318,000, which is included in the total cost of Gongqu Bridge. The impacts on sensitive receivers will be tracked by PIU. If further exceedances are detected in the long term (due to increased traffic volume), further mitigation measures will be adopted.

6 Receptor Distance (m) Table VI-25: Predicted noise levels at sensitive receptors in Baonquanwei close to Gonggu flyover (without mitigation) (db) Short term (2020) Middle term (2026) Long term (2034) Applicable Time Baseline Standard Contribution Predicted Exceedance Increment Contribution Predicted Exceedance Increment Contribution Predicted Exceedance Increment Class 2 Class 4a Class 2 Class 4a Class 2 Class 4a Class 4a Class 2 Class 4a 60 Day Night Day Night Day Night Day Night Day Night Day Night Day Night Number of HH Table VI-26: Predicted noise levels at sensitive receptors in Baonquanwei close to Gonggu flyover (with mitigation) (db) Applicable Before mitigation After mitigation* Number sound Cost Time insulation standard Short Exceedance Medium Exceedance Short Medium windows (CNY)** 1 Class 2 Day Night Class 4a Day Night Class 4a Day Night Class 4a Day Night *Sound insulation window 25dB( A ). Interior sound will meet the code for sound insulation design of civil buildings (GB ) and indoor standards (day 45dB ( A ), night 37dB ( A )) **The cost for sound insulation window is 2000 CNY each window (assuming the area is 1.2 m 2 )

7 Noise contours at daytime (2020) Noise contours at night time (2020) Noise contours at daytime (2026) Noise contours at night time (2026) Noise contours at daytime (2034) Noise contours at night time (2034) Figure VI-14: Predicted noise contours for Gonggu flyover during operation c. Shuangyashan 295. SY 4.3 Southern ring road: air quality. Table VI-27 presents the predicted maximum pollutant concentrations near the Southern Ring road boundary, and Table VI-28 shows maximum pollutant concentrations at the closest sensitive receiver (Anshan Community). Modeling results are shown in Figure VI-15. The results indicate that the maximum CO and NO 2 ground-level concentration values will comply with Class II standard limits of Ambient Air Quality Standard (GB ) during future operation. 175

8 Pollutant Maximum ground concentration Table VI-27: Maximum pollutant concentration projections for Southern ring road Maximum Ground Year Concentration Contribution Baseline Predicted value Standard % of standard CO Short term 1h h Annual / / / Medium term 1h h Annual / / / Long term 1h h Annual / / / NO2 Short term 1h h Annual / Medium term 1h h Annual / Long term 1h h Annual /

9 Table VI-28: Maximum pollutant concentration projections at the nearest sensitive receiver (Anshan Community) to the for Southern ring road Pollutant Year Maximum Ground Contribution Baseline Predicted value Standard % of standard Concentration Anshan CO Short term 1h Community 24h Annual / / / Medium term 1h h Annual / / / Long term 1h h Annual / / / NO2 Short term 1h h Annual / Medium term 1h h Annual / Long term 1h h Annual /

10 1h NO2 contour (short term) 24h NO2 contour (short term) Annual NO2 contour (short term) 1h CO contour (short term) 24h CO contour (short term) Annual CO contour (short term) 1h NO2 contour (medium term) 24h NO2 contour (medium term) Annual NO2 contour (medium term) 1h CO contour (medium term) 24h CO contour (medium term) Annual CO contour (medium term) 178

11 1h NO2 contour (medium term) 24h NO2 contour (medium term) Annual NO2 contour (long term) 1h CO contour (long term) 24h CO contour (long term) Annual CO contour (long term) Figure VI-15: Predicted air quality contours for Southern ring road during operation 296. SY 4.3 Southern ring road: noise. Table VI-29 presents the predicted noise levels at selected sensitive receptors close to the southern ring road alignment, with modeling results shown in Figure VI-16. The modeling indicates that the noise levels will exceed relevant standards in the short, medium and long term in both the day and nighttime for some receptors. Additional modelling of vertical noise impact was conducted for the Anshan community, a typical residential development of four-storey buildings in the area. The vertical noise level predictions at Anshan community are presented in Table VI-30 and Figure VI-17. The predictions indicate that the noise levels at Anshan community will exceed the standard in short, medium and long terms during day and night time. 179

12 Sensitive point Anshan community Anshan community 4 floors building Riverside community Shuangyashan Social Welfare Institute Fu an village Table VI-29: Predicted noise levels at sensitive receptors along Southern Ring road (without mitigation) (db) Location / number Distance from Standard Time Baseline central Contribution Contribution Contribution Exceedance Exceedance Exceedance line value value value North of the Day / / / 37 4b railway Night / / / right side Day / / / of / K0+000 ~ 35 4b K0+344 South side of Night / / / the railway Day / Night left side of / K0+000~ K a Day / / / Night Day Night right side of / K0+826~ K a Day / / / Night Day Night left side of / K1+158~ K a Day / / / Night Day Night Day Left side of /K0+936 ~K Night left side of /K0+000 ~K left side of /K3+163 ~K left side of /K3+121 ~K a 85 2 Yaodi village right side of /K3+381~ K Day / / / Night / / / Day / / / Night / / Day / / / Night / / / Day / / Night Day / / / Night / / Affected HH / / / / / 7 / 180

13 Noise contours at daytime (2019) Noise contours at night time (2019) Noise contours at daytime (2025) Noise contours at night time (2026) Noise contours at daytime (2033) Noise contours at night time (2033) Figure VI-16: Predicted noise contours for Southern ring road during operation Table VI-30: Predicted vertical noise levels at the Anshan community during operation of the Sensitive targets Anshan community southern ring road (db) Prediction noise levels (db(a)) Floor Time Predicted Predicted Predicted Exceedance Exceedance Exceedance value value value 1 Day Night Day Night Day Night Day

14 Sensitive targets Floor Prediction noise levels (db(a)) Time Predicted Predicted Predicted Exceedance Exceedance Exceedance value value value Night Noise contours at daytime (2019) Noise contours at night time (2019) Noise contours at daytime (2025) Noise contours at night time (2026) Noise contours at daytime (2033) Noise contours at night time (2033) Figure VI-17: Predicted vertical noise levels at the Anshan community during operation of the southern ring road 297. To mitigate these impacts, (i) vehicle speed will be limited to 40 km/h along the section 182

15 near residential areas; and (ii) noise reducing pavement (which works by allowing air to dissipate more smoothly under vehicle tires, reducing noise by 3-5 db) will be used for road surfacing. The cost of these measures is included in the total cost of South ring road. As shown in Table VI-31, with the adoption of these measures, no further exceedance of relevant standards are expected. Table VI-31: Predicted noise levels at sensitive receptors close to the Southern ring road (with mitigation) (db) Predicted exceedance db(a) Sensitive Proposed After mitigation Standard receptor Location Standard Day Night Day Night mitigation Day Night Day Night Anshan community Right side/k0+000 ~K / Noise reducing pavement to 51.52~ ~ Left 4a / 2.71 / 3.51 reduce 3 db; 56.25~ ~ side/k0+000 Speed limits ~K to 40 km/h 53.16~ ~ Anshan community 4 floors building Fu an Village Right side/k0+826 ~K1+442 Left side/k1+158 ~K1+522 Left side/k0+936 ~K0+986 Left side/k3+121 ~K a / 2.43 / ~ ~ ~ ~ a / 2.28 / ~ ~ ~ ~ ~ ~ / 1.73 / 2.41 Noise reducing pavement to reduce 3 db 55.31~ ~ SY 4.3 Xingxing Avenue Flyover: Air Quality. Table VI-32 presents the predicted maximum pollutant concentrations at the closest sensitive receiver to the Xingxing Avenue flyover boundary. The results indicate that the maximum CO and NO 2 ground-level concentration values will comply with Class II standard limits of Ambient Air Quality Standard (GB ) during future operation. 183

16 Table VI-32: Maximum air pollutant concentration projections for Xingxing Avenue flyover Item Year Concentration type Contribution Baseline Predicted value Standard Total of the standard (%) Exceedance Zhongxinzhan CO Short term 1h Maximum Community (2020) ground 24h concentration Annual / / / / NO2 Medium term (2026) Long term (2034) Short term (2020) Medium term (2026) Long term (2034) 1h Maximum h ground concentration Annual / / / / 1h Maximum h ground concentration Annual / / / / 1h Maximum h ground concentration Annual / / 1h Maximum h ground concentration Annual / / 1h Maximum h ground concentration Annual / / 184

17 299. SY 4.3 Xinxing Avenue Flyover: Noise. The noise levels along the main road and ramp are predicted for short term (2020), medium term (2026) and long term (2034) as presented in Table VI-33 and Figure VI-18. The attenuation from buildings in the vicinity are not considered. The bridge will cross the railway of Shuangyashan Mining Affairs Bureau. The applicable standard for the area within 35 m to the railway boundary is class 4b. Table VI-33: Predicted noise levels adjacent to Xingxing Avenue flyover Predicted noise level at different distance to the road central line (db) Section Year Time 10m 20m 40m 60m 80m 100m 120m 140m 160m 180m 200m Main road K0+000~ K Day Night Day Night Day Night Main road K0+360~ K Day Night Day Night Day Night Ramp 2020 Day Night Day Night Day Night Main road section K0+000~K0+360 Noise contour during daytime (2020) Noise contour during nighttime (2020) 185

18 Noise contour during daytime (2026) Noise contour during nighttime (2026) Noise contour during daytime (2034) Noise contour during nighttime (2034) Main road section K0+360~K Noise contour during daytime (2020) Noise contour during nighttime (2020) Noise contour during daytime (2026) Noise contour during nighttime (2026) Noise contour during daytime (2034) Noise contour during nighttime (2034) Ramp 186

19 Noise contour during daytime (2020) Noise contour during nighttime (2020) Noise contour during daytime (2026) Noise contour during nighttime (2026) Noise contour during daytime (2034) Noise contour during nighttime (2034) Figure VI-18: Predicted horizontal noise contours for Xinxing Avenue 300. Vertical noise attenuation was predicted for the multi-story building near the flyover section by section: (1) Main road section K0+000 ~ K Noise levels at the eight storey building of Heilongjiang Coal Vocational Institute was forecast. This building is 4.5 m from the road boundary and 20 m from the road central line. The results indicate that the noise level could satisfy with the requirement of Class 4a during daytime in all prediction years but exceed the standard during nighttime. (2) Main road section K0+360~K Noise level at the seven storey building of Shuangkuang group community was forecast. This building is 58 m to the road boundary and 77 m to the road central line. The prediction results indicate that the noise level could satisfy with the requirement of Class 2 during daytime in short term (2020) but exceed the standard during nighttime in medium term (2026) and long term (2034) during night time. (3) Ramp. Noise level at the seven storey building of Heitudi community was forecast. This building is 6 m to the road boundary and 15 m to the road central line. The prediction results indicate that the noise level could satisfy with the requirement of Class 4a in all predicted years. 187

20 Table VI-34: Vertical noise level prediction at sensitive receptors for Xinxing Avenue Vertical noise attenuation prediction db(a) Sensitive receptor floor Item Day Night Day Night Day Night First row front 1 Prediction to the road of Heilongjiang Coal Standard Vocational Institute Exceedance / 1.62 / 2.61 / Prediction Standard Exceedance / 1.45 / 2.44 / Prediction Standard Exceedance / 0.94 / 1.93 / Prediction Standard Exceedance / 0.26 / 1.24 / 1.84 Shuangkuang group community 1 Prediction Standard Exceedance / / / 0.66 / Prediction Standard Exceedance / / / 0.65 / Prediction Standard Exceedance / / / 0.61 / Prediction Standard Exceedance / / / 0.53 / 1.31 Heitudi community 1 Prediction Standard Exceedance / / / / / / 3 Prediction Standard Exceedance / / / / / / 188

21 Vertical noise attenuation prediction db(a) Sensitive receptor floor Item Day Night Day Night Day Night 5 Prediction Standard Exceedance / / / / / / 7 Prediction Standard Exceedance / / / / / / 301. Table VI-35 presents the predicted noise levels at representative sensitive receivers. The predictions indicate that the noise levels exceed the standard in medium short, medium and long term during nighttime. Noise reducing pavement is recommended. The exceedance mainly occurs in the section of K0+010~K0+290 and K0+440~K1+330 with total length of 1170 m. Generally the noise reducing pavement could attenuate 3 d(b), which will effectively mitigate the maximum exceedance predicted in short and medium term of 2.93 db. The cost of noise reducing pavement is estimated to be 1.97 million, which is included in the total cost of Xinxing Avenue. 189

22 Table VI-35: Predicted noise levels at sensitive receptors along Xinxing Avenue Flyover (without mitigation) (db) Sensitive No. receptor 1 Zhongxin community 2 Heilongjiang Coal Vocational and Technical College 3 Urban Management Bureau Community 4 Shuangyashan mining group environmental protection monitoring stations 5 Transportation Division, Shuangyashan mining group 6 General Hospital of Coal Transport Branch Direction/ distance Chainage to midline K0+020 ~ K0+280 East 20m /4.5m East 50.5m /35m K0+070 ~ K0+090 East 20m /4.5m K0+020 ~ K0+090 West 72m /56.5m ZK0+020 ~ ZK0+100 East 34m /25m K0+170 ~ K0+180 West 20m /4.5m K0+230 ~ K0+290 West 20m /4.5m K0+260 ~ K0+280 West 91m /75.5m Applicable Contribution Contribution Contribution Standard Time value Exceedance value Exceedance value Exceedance 4a 70 Day Night Day Night a 70 Day Night Day Night a 70 Day Night a 70 Day Night a 70 Day Night a 70 Day Night ZK0+420 ~ ZK0+440 North 24m 4a 70 Day

23 No. Sensitive receptor 7 Beixiu Community 8 Beixiu Community 9 Shuangkuang group Chainage K0+450 ~ K0+880 The East and West 25m/6m ZK0+230 ~ ZK0+260 South 63m /54m K0+670 ~ K0+680 West 54m /35m K0+600 ~ K0+700 West 77m /58m 10 Fu an village K0+880 ~ K1+330 The East and West 25m/6m 11 Fu an village (Garden Road) 12 Shuangyashan Land and Resources Bureau 13 Shuangyashan Court 14 Shuangyashan Forestry Bureau 15 Heitu Garden Community 16 East pyramids potential training school (kindergarten) K0+990 ~ K1+110 West 54m /35m ZK0+030 ~ ZK0+040 East 24m /15m ZK0+050 ~ ZK0+070 ZK0+070 ~ ZK0+090 ZK0+020 ~ ZK0+100 ZK0+150 ~ ZK0+170 Direction/ distance Applicable Contribution Contribution Contribution to midline Standard Time value Exceedance value Exceedance value Exceedance /15m 55 Night East 24m /15m East 24m /15m West 15m /6m West 25m /16m 4a 70 Day Night a 70 Day Night Day Night Day Night a 70 Day Night Day Night a 70 Day Night a 70 Day Night a 70 Day Night a 70 Day Night a 70 Day Night

24 Sensitive No. receptor 17 Jinshan international community 18 Shuangyashan insurance agency 19 Zhongtian hospital Chainage ZK0+130 ~ ZK0+200 ZK0+120 ~ ZK0+125 ZK0+330 ~ ZK0+380 Direction/ distance to midline West 48m /39m East 12m /3m North 12m /3m Applicable Contribution Contribution Contribution Standard Time value Exceedance value Exceedance value Exceedance 2 60 Day Night a 70 Day Night a 70 Day Night

25 302. SY 4.3 Yungfeng Tunnel: Air Quality. Predicted CO and NO 2 concentration around the Yungfengshan Tunnel have been assessed using the AERMOD model developed by American Meteorological Society and the U.S. Environmental Protection Agency. The results are summarized in Table VI-36 and Figure VI

26 Table VI-36: Predicted air quality during operation of Yunfeng Tunnel Total of the Forecast project Time period Maximum Ground concentration Contribution Baseline Forecast value Standard standard (%) Exceedance Construction Plaza CO Short term 1 Hours Daily average Annual average / / / / Medium term 1 Hour Daily average Annual average / / / / Long-term 1 Hour Daily average Annual average / / / / / NO2 Short term 1 Hour Daily average Annual average / / 0.04 / / Medium term 1 Hour Daily average Annual average / / 0.04 / / Long-term 1 Hour Daily average Annual average / / 0.04 / / Yunfeng Community CO Short term 1 Hour Daily average Annual average / / / / / Medium term 1 Hour Daily average Annual average / / / / Long-term 1 Hour Daily average Annual average / / / / / NO2 Short term 1 Hour Daily average Annual average / / 0.04 / / Medium term 1 Hour Daily average Annual average / / 0.04 / / Long-term 1 Hour Daily average Annual average / / 0.04 / / Construction Bank CO Short term 1 Hour Community Daily average Annual average / / / / / Medium term 1 Hour Daily average

27 Forecast project Total of the Time period Maximum Ground concentration Contribution Baseline Forecast value Standard standard (%) Exceedance Annual average / / / / / Long-term 1 Hour Daily average Annual average / / / / / NO2 Short term 1 Hour Daily average Annual average / / 0.04 / / Medium term 1 Hour Daily average Annual average / / 0.04 / / Long-term 1 Hour Daily average Annual average / / 0.04 / / 195

28 1-hour NO2 contour (2020) 1-hour CO contour (2020) Daily NO2 contour (2020) Daily CO contour (2020) Annual average NO2 contour (2020) Annual average CO contour (2020) 196

29 1-hour NO2 contour (2026) 1-hour CO contour (2026) Hourly NO2 contour (2026) Daily CO contour (2026) Annual average NO2 contour (2026) Annual Average CO Contours (2026) 197

30 1-hour NO2 contour (2034) 1-hour Daily CO Contour (2034) Daily NO2 contour (2034) Daily CO Contours (2034) Annual average NO2 contour (2034) Annual Average CO Contours (2034) Figure VI-19: Predicted air quality during operation of Yunfeng Tunnel 303. Yunfeng Tunnel: noise. Predicted traffic volumes using the Yunfengshan Tunnel are 5349 pcu/d, 8805 pcu/d and pcu/day in 2020, 2026 and 2034 respectively. The results of noise level monitoring without consideration of attenuation from buildings is presented in Table VI-37 and Figure VI

31 Table VI-37: Predicted traffic noise during operation of Yunfeng Tunnel (db) Noise level horizontal from the road central line (db) Year Time 20m 40m 60m 70m 100m 120m 140m 160m 180m 200m 2020 Day Night Day Night Day Night Noise contours at daytime (2020) Noise contours at nighttime (2020) 199

32 Noise contours at daytime (2026) Noise contours at nighttime (2026) Noise contours at daytime (2034) Noise contours at nighttime (2034) Figure VI-20: Predicted noise contours for Yunfeng Tunnel 200

33 Noise contours at daytime (2020) Noise contours at night time (2020) Noise contours at daytime (2026) Noise contours at night time (2026) Noise contours at daytime (2034) Noise contours at night time (2034) Figure VI-21: Predicted vertical noise levels at Yunfeng Tunnel 304. Predicted noise levels at nearby receptors are shown in Table VI-38, taking into consideration the attenuation effects of buildings, green belt and ground. The analysis shows that for most receptors, the relevant noise standards are met during the daytime. However, 201

34 there would be night-time exceedances of 1.51 db (A) to 1.9 db (A) at the Construction Plaza and Construction Bank Community in the short-term; and night-time exceedances in the medium- to long-term of up to 5.38 db (A) at all receptors To mitigate noise impacts, use of noise reducing road surfacing and limiting the speed limit to 30 km/h would be adopted. With these measures, the relevant standards at all sensitive receptors will be met (Table VI-39). 202

35 Sensitive No. Receptor 1 Construction Plaza (1 st floor) Construction Plaza (3 rd floor) 2 Yunfeng Community (1st floor) Yunfeng Community (3rd floor) Yunfeng Community (5th floor) Yunfeng Community (7th floor) Yunfeng Community (9th floor) Yunfeng Community (11th floor) Yunfeng Community (13th floor) 3 Construction Bank Community (first row, 1 st floor) Table VI-38: Predicted noise levels at sensitive receptors close to Yufeng Tunnel (without mitigation) (db) Series Distance 2020 (short term) 2026 (medium-term) 2034 (long-term) number / to road Height boundary Baselin Contributio Forecas Contributio Forecas Contributio difference (m) Standard Time e n value t values Exceedance n value t values Exceedance n value Exceedance Exceedance north side of 28 Class 4a Day K0+000/2m Night north side of /K0+000/8m north side of K0+000/1m north side of / K0+000/7m north side of K0+000/13m north side of K0+000/19m north side of K0+000/25m north side K0+000/31m north side of K0+000/37m South side of K0+000/2m 80 Class 2 12 Class 4a Day Night Day Night Day Night Day Night Day Night Day Night Day Night Day Night Day Night Day

36 No. Sensitive Receptor Construction Bank Community (first row, 3rd floor) Construction Bank Community (first row, 5th floor) 4 Construction Bank Community (second row) Construction Bank Community (third row) Construction Bank Community (fourth row) Series number / Height difference South side of K0+000/8m Distance to road boundary (m) Standard Time Baselin e Contributio n value Night (short term) 2026 (medium-term) 2034 (long-term) Forecas t values Exceedance Contributio n value Forecas t values Exceedance Contributio n value Exceedance Exceedance South side of K0+000/14m Day South side of K0+000/0m South side K0+000/4m South side K0+000/6m 70 Class 2 Night Day Night Day Night Day Night Table VI-39: Predicted noise levels at selected sensitive receptors close to Yufeng Tunnel (with mitigation) (db) 204

37 Sensitive No. Receptor 1 Construction Plaza 2 Yunfeng Community 3 CCB compound (first building) 4 Construction Bank Community (second building) Construction Bank Community (third) Construction Bank Community (fourth) Location / Height difference north side of K0+000/2m north side ofk0+000/1m South side of K0+000/2m South side of K0+000/0m South side of K0+000/4m South side of K0+000/6m Distance to the central 2020 (short term) 2026 (Medium-term) 2034 (Long-term) line / red line ( m ) Standard Time Baseline Contribution value Forecast values Exceedance Contribution value Forecast values Exceedance Contribution value Forecast values Exceedance 48/28 4a Day Night /80 Class 2a Day Night /12 4a Day Night /70 Class 2a Day Night /72 Day Night /148 Day Night

38 8. Impacts Related to Electric Bus Operation 306. The 209 electric buses purchased under the project are expected to bring environmental benefits from reduced urban noise, air pollution and carbon emissions. However, the batteries used to power the buses only have a useful life of 6-8 years, and they contain a range of toxic substances such as lithium, nickel and various rare metals. If the batteries are not properly disposed of, they can cause soil and water contamination and associated risks to human health In the PRC, there is already a mechanism in place to manage used batteries from electric vehicles, with the vehicle manufacturer responsible for battery collection and recycling under China s latest Electric Vehicle Power Battery Recycling Technology Policy (2015). Standards for recycling and ultimate disposal of used batteries are provided in the New Energy Vehicle Waste Battery Comprehensive Utilization Industry Standard and its corresponding Interim Administrative Provisions, published by the Ministry of Industry and Information Technology in February F. Induced, Indirect and Cumulative Impacts 308. Induced impacts are adverse and/or beneficial impacts on areas and communities from unintended but predictable developments caused by a project which may occur later or at a different location. Indirect impacts are adverse and/or beneficial environmental impacts which cannot be immediately traced to a project activity but can be causally linked. Cumulative impacts are the combination of multiple impacts from existing projects, the proposed project, and anticipated future projects that may result in significant adverse and/or beneficial impacts that would not be expected in case of a stand-alone project. For the current project, one potential cumulative impact and one indirect impact have been identified Induced and cumulative impacts. The potential concern that the project may induce uncontrolled industrial development within the industrial parks will be addressed through the conduct of planning EIA for the industrial parks. The planning EIA for the Jiguan Industrial Park (Phase I) of Jixi was approved by Heilongjiang Province Environmental Protection Department in The planning EIA concludes that the Jiguan Industiral Park Phase I is feasible from an environment point of view, but defines clear requirements to safeguard the environment during industrial park development and operation, including: (i) industries introduced to the park must comply with national industry development policy, clean production and circular economy and master plan of the park; (ii) the introduction of high water consuming industries must be strictly controlled; and (iii) the park must avail of emergency preparedness and response plans. Planning EIAs for other industrial parks are under preparation and expected to be availabe by end of Tenants selection will also be regulated by the Catalog of Industrial Structure Adjustment issued by the National Development and Reform Comission. This catalog classified industrial sectors into three categories: i) encouraged industries; ii) restricted industries, which are prohibited to invest; and iii) outdated industries, which should take measures to upgrade or close within deadline Two potentially significant cumulative impacts resulting from the project have been identified, noise impacts resulting from road improvement and other infrastructure works, and impacts to water resources resulting from improvements to water supply infrastructure Cumulative Noise Impacts. There is potential for cumulative noise impacts in the construction phase, particularly in urban areas, due to infrastructure works conducted in adjacent areas at the same time. For example, in Shuangyashan, the Southern Ring Road improvement and Xinxing Avenue Flyover construction components will be adjacent at the southern end of the flyover alignment. Potential cumulative noise impacts can be largely 206

39 avoided through a review of construction schedules to minimize concomitant activities in adjacent areas. A project assurance has been included to review work schedules in the detailed design phase to address this issue. Furthermore, routine noise monitoring of construction sites will be conducted to ensure noise at each construction site boundary will be controlled to within the limits of 70 db (daytime) and 55 db (nighttime) as required by the Standard for Noise Emission from Construction Site (GB ). Therefore, the cumulative impact is expected to be minimal if all measures in EMP are implemented effectively to control the noise emission within the limits required by GB Cumulative impacts during the operation phase have already been considered in the models used to assess traffic noise impacts described earlier in this chapter If the above measures are not be able to reduce noise levels to comply with World Bank Group EHS guidelines, appropriate mitigation measures (i.e. improved windows, noise barriers) will be designed and implemented during the construction and operation phase as required Water Resources. In two of the project cities (Jixi and Qitaihe), enhanced water treatment and supply systems included in the project have the potential to affect regional water resources. A water balance analysis for both cities has been conducted (including components to be constructed under this project) and presented in the FSR. These are summarized in Tables VI-40 and VI-41. Table VI-40: Water balance in Jixi City (1000 m 3 /day) Year Hada Reservoir Water source Xingkai Lake Diversion Subtotal No.3 WTP (proposed under this Treatment project) Capacity Chaoyang WTP Subtotal Demand Demand Table VI-41: Water balance in Qitaihe City (1000 m 3 /day) Year Water source Taoshan Reservoir Subtotal Shenke WTP (proposed under this project) Treatment WDC WTP (proposed under this capacity project) Reclaimed water (From WWTP) Subtotal City water Demand Industrial park Subtotal (225*) *Assuming full use of reclaimed water by industrial park 315. From this assessment, it appears that sufficient water will be available to meet demand in both cities Indirect impact. Treated wastewater discharged from the upgraded Jiguan WWTP will have indirect beneficial impacts on the ecology of the Muling and Kuangling Rivers. This relatively clean water will increase base flow rates in receiving river throughout the year, 207

40 improving habitat conditions for aquatic communities. G. Community and Occupational Health and Safety 317. The objective of Occupational Health and Safety (OHS) is to provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease. It also covers the establishment of preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. It is therefore a combination of occupational health and safety of staff/workers at the component facilities and community health and safety of people living nearby or potentially affected by failures or poor operation of facilities Facility managers will implement precautions to protect the health and safety of workers. Occupational health and safety risks will be managed by applying measures in the following order of preference: avoiding, controlling, minimizing hazards, and providing adequate protective equipment. The following provisions for health and safety will be considered for each project component: 319. Personal protection equipment (PPE) appropriate to the job, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations, will be provided by for workers Emergency preparedness and response. An emergency response plan for accidents and emergencies, including environmental and public health emergencies associated with hazardous material spills and similar events will be prepared, and submitted to the IA for review and appraisal. A fully equipped first-aid base in each construction site will be provided Records management. A records management system will be established to document occupational accidents, diseases, and incidents, that: (a) includes a tracking system to ensure that incidents are followed-up; (b) can easily retrieve records; and (c) can be used during compliance monitoring and audits. The system will be backed up on at least one external hard drive to protect records against loss or damage Safety communication. Ensure that safety, rescue and industrial health matters are given a high degree of publicity to all persons regularly or occasionally at the work place. Posters drawing attention to safety, rescue and industrial health regulations will be made or obtained from the appropriate sources and will be displayed prominently in relevant areas Training, awareness and competence. Staff will be trained in basic sanitation and health care issues, health and safety, and the specific hazards of their work Road Safety. The project will include the improvement of existing and construction of new roads, as well as construction of new bus depots, bus stops and pedestrian facilities along major roads that could create increased risks to pedestrians. To address this potential impact, local Transport Bureaus will conduct a road safety audit of the preliminary designs of relevant components during detailed engineering design, to confirm proper design of signage, lighting, and intersections of the planned roads and sustainable transport features. With the proper implementation of the above measures, community and worker health and safety risks resulting the project will be effectively addressed. 208

41 H. Climate Change Impacts and Adaption Considerations 1. Climate Risk Vulnerability Assessment 325. A separate climate risk vulnerability assessment has been conducted for this project. The assessment is based on CMIP5 climate change projections for 2050 in comparison with baseline period of Based on such quantitative and other relevant information, adaption measures have been identified that enhance the sustainability of the project to climate change impacts by climate proofing risk sensitive components at the design and construction stages Climate projections. Climate projections were carried out for the east Heilongjiang region where the four cities are located. The projections included analyzing changes in extreme climate events and seasonal changes in temperature and precipitation. Those analyses are based on differences between the intergovernmental panel on climate change fifth assessment report (IPCC AR5) projections for 2050 ( ) with the baseline climate ( ) According to CMIP5 global climate model projections, the temperature and precipitation will increase 2.5 C and 3.3 C, and 9.8% and 11.5% in ~2050 in comparison with baseline period in east Heilongjiang sub-region under the low and high scenarios, respectively. The model also projected that the frequency and intensity of extreme weather events will also increase significantly. Those may include severe snow and rainfall storms, drought and floods caused by greater inter-annual and seasonal climate variability Climate risks and vulnerability of proposed project infrastructure. Climate change risks to components of this project relate mainly to increases in extreme precipitation, such as severe storms and snow falls that would result in damage to infrastructure and/or interruptions to services. Roads, rivers, drainage networks and water supplies may all be impacted. Structural proofing/adaptation measures are required in the final design of these components. Project components are considered in four categories according to climate change sensitivity as follows: Integrated river rehabilitation projects. River work projects are sensitive to increased flood levels resulting from severe storms. Water supply projects. Water supply projects are proposed in Qitaihe and Jixi. Changes in many climate variables can potentially affect water supply system, such as rising temperature, changed precipitation and extreme cold/heat waves. Other infrastructure. Other infrastructure, including roads, bridges, drainage pipelines and waste water treatment, are proposed in all four cities. Changes in temperature, precipitation, and climate extremes will also impose risks on those projects. Other projects, such as clean energy public transport, remediation of mine/waste rock dumpsite rehabilitation are normally considered as mitigation measures. However, there may also be some elements of the components subject to climate risks Adaptation measures. Possible climate proofing and adaptation include both structural and non-structural measures. The structural measures are to be integrated into the final engineering designs of proposed project components. The non-engineering measures are improving government policies and planning to reduce climate risks. Structural adaptation measures and relevant costs are summarized in Table VI

42 Table VI-42 Structural adaptation measures for project components and related climate finance investment Component Description Structural Proofing/Adaptation Measures Adaptation cost (US$m) Mitigation cost (US$m) Output 2: Key infrastructure and SME facilities in non-coal industrial parks HG Green Food, Green Energy and High-Tech Industrial Park - Roads km Adjust 10% increases for design road surface drain and culverts Road side trees and green belt. Design with light emitting diodes (LED) lights and walk path and non-motor transport to reduce emission Infrastructure and Service centre (floor space 8000 Design the building with sufficient green areas and effective Business Support m 2 ) measures for water/energy efficiency and reduce emission Facilities Water supply pipeline 6.25 km Design with consideration of increased water demand caused by - - rising temperature Drainage pipeline 6.25 km Adjust 10% increase for design drainage pipes to for increased stormwater caused by climate change Sewer pipeline 6.25 km Design the pipeline with consideration for increased wastewater caused by increased water consumption due to climate change. Heating pipeline km Design the pipeline with sufficient insulation to raise energy - - HG 2.2 Luobei County High-tech Graphite Industrial Park Infrastructure JX 2.1 Hengshan District High-Tech Graphite Based Materials and E- Mobility Industrial Park - Infrastructure and Business Support Facilities JX 2.2 Wastewater treatment and collection pipelines in the industrial park of Jiguan District QH 2.1 Green Food and Pharmaceutical Biofermentation Industrial Park Infrastructure and WWTP with capacity of 6000 m 3 /day Water reuse pipelines from WWTP km Stage I Ring Road - 3 km and new road 1.3 km to be built Sewerage collection network improvement Water and heating pipeline 1.37 km New WWTP (20,000 m 3 /day) Related collection pipelines (2.0 km, DN ) Road 2.1 km Water supply pipelines efficiency and reduce emission. Design with consideration for increased water use and wastewater volumes caused by climate change Adjust 10% increases for design road surface drain and culverts Road side trees and green belt. Design with LED lights and walk path and non-motor transport to reduce emission Drain increment of 10% and side conservation measures 0.92 Design with energy efficiency measures to reduce emission - - Design with consideration of increased wastewater volume due to climate change resultant increasing water consumption Adjust 10% increases for design road surface drain and culverts Road side trees and green belt. Design with LED lights and walk path and non-motor transport to reduce emission Design with consideration for increased water demands caused by climate change

43 Component Description Structural Proofing/Adaptation Measures Business Support drainage pipes - 39 km Adjust 10% increase for design drainage pipes and pumping capacity Adaptation cost (US$m) Mitigation cost (US$m) SY 2.1 Industrial parks- Infrastructure and Business Support Facilities Roads - around 9.3 km. water supply pipeline 4.4 km sewer pipeline 7 km Adjust 10% increases for design road surface drain and culverts Road side trees and green belt. Design with LED lights and walk path and non-motor transport to reduce emission Design with consideration of increased water demands caused by climate change Design with consideration of increased wastewater volume due to climate change resultant increasing water consumption Output 3 - Remediation and environmental cleanup of impacts from coal mining HG 3.1 Remediation of Open Pit Mine / Waste rock Dumpsite Rehabilitation The area will be filled with waste rock together with clay and graded, and trees are to be planted This is a dual benefit project for both adaptation and mitigation JX 3.1 Hengshan District Waste rock Dumpsite Remediation / Safe Closure and Management of Former Mines QH 3.1 Mining Remediation and Environmental Rehabilitation SY 3.1 Waste rock Dumpsite Remediation/ Safe Closure and Management of Former Mines HG 4.1 Integrated River Rehabilitation and Cleanup from Mining and Ecosystems Based Adaption site grading of 20.5 ha, reforestation of 69.2 ha Drainage interceptor ditch of 2,023 m, drainage ditch of 1,041 m, retaining wall of 287 m and fence of 571 m, and landscaping works. Remediate waste rock dumpsite sites and a mining subsidence area trees will be planted in both sites after remediation Remediate the construction land for farming and plant more trees on the forestry Shitou River rehabilitation 50 years flood recurrence period Heli River 50 years flood recurrence period Xiaoheli River 50 years flood recurrence period This is a dual benefit project for both adaptation and mitigation This is a dual benefit project for both adaptation and mitigation Adjust additional 0.1m in design flood height for the river dyke and 0.2m for bridges and/or 10% flood water volume. Develop river side green belt as conservation measures to protect the river system, which is a dual benefit measure for climate change

44 Component Description Structural Proofing/Adaptation Measures Qianjin Creek 20 years recurrence period HG 4.2 District Retrofication of 6.6 km primary pipe Heating System network and 65.2 km secondary Energy Efficiency pipe network. Improvements HG 4.3 Road rehabilitation, public and non-motorized transport improvements JX 4.1 Hengshan District Integrated Lake and Rivers Rehabilitation and Ecosystems Based Adaptation JX 4.2 Hengshan District Urban Regeneration, Community Facilites and Public Space Improvement JX 4.3 Hengshan District Beishan Road, Jiaotong Street and bypass bridge JX 4.4 Urban Regeneration and Urban Infrastructure ( water supply pipes, wastewater collection and rain water drainage) Bus lanes along two North-South arterials of about 13 km in the city, and another 18 km for potential roads. Other improvement of infrastructures, like roads resurfacing, bus bays, new drain pipes and intersections, and other relevant facilities and bus maintenance Anle Creek (750m) Huangni River Rehabilitation (7.7km) Design with insulation appropriate to local weather to raise energy efficiency so that reduce emission This is a main mitigation project that is improving public and nonmotor transport. It is also a major adaptation project to improve road drainage and adding trees and green belt where is feasible to protect the roads This is a main mitigation project that is improving public and nonmotor transport. It is also a major adaptation project to improve road drainage and adding trees and green belt where is feasible to protect the roads Adaptation cost (US$m) Mitigation cost (US$m) Hongqi Lake rehabilitation The total land area is 5.02 ha, including a library, a Gym, 2 public flush toilets, and a monitoring and training center (GFA 8000 m 2 ). Green belts and increased drainage capacity and other energy efficiency measures including insulation and LED lights etc Jiaotong Street: 0.41 km Adjust 10% increase for design road surface drain and culverts and develop road side conservation measures trees and green Flyover: around 330 m belt that is considered as dual benefit to climate change. Mitigation measures also need to be designed including walk and Water supply pipes of 16.8 km will be refurbishment to reduce leakage km sewage pipes will be built to separate sewage and rain water. Drainage pipes of 15.2 km, drainage trench of 10.1 km, and 4 sedimentation tanks non-motorized transport paths and adopt LED lighting system Drainage network design adjusted 10% increase to adapt increased storm water volumes caused by climate change. Water supply and sewer pipeline design take into account of increased water consumption caused by climate change

45 Component Description Structural Proofing/Adaptation Measures 3 sewer pumping stations and 1 drainage pumping station. JX 4.5 Jixi City Upgrade the existing water intake Design with consideration for increased water demands due to Water No.3 (84,000 m 3 /day) increased temperature caused by climate change, and trees and treatment plant Upgrade the water treatment facility grasses planted in the water plant upgrading and (50,000 m 3 /day). expanding QH 4.2 Water Treatment Plant Upgrading and Water Supply Distribution System Replacement and Expansion QH 4.3 Sustainable and Clean Fuel Public Transport Improvements SY 4.2 Urban Regeneration and Urban Infrastructure (Water Supply, wastewater collection and rain water drainage) SY 4.2 South Ring Road and Tunnel New advanced treatment units (80,000 m 3 /day) and sludge treatment facilities. Two water treatment plants will be updated (2 x 100,000 m 3 /day) Water saving sub-components Water supply distribution system upgrade Replace the old diesel buses with 209 new electric buses and supporting facilities 28.8 km of water supply main; three new pumping stations Related facilities include the drainage pipeline in the WTP, new laboratory, flow meters at key intersections and the SCADA system. Sewer network: 25.5 km in Lingdong District and 53 km in Jianshan District. Drainage: 61.6 km storm water pipeline in Jianshan District. South Ring of 3.75 km with red line of width of 50 m. Railway flyover of Xinxing Avenue: a total length of 1,47 km and bridge in km. Design with consideration for increased water demands due to increased temperature caused by climate change Water saving through replacement of aged water pipes is an adaptation Design with consideration for increased water demands due to increased temperature caused by climate change Electrical buses and related support systems will significantly Reduce emission Design with consideration for increased water demands due to increased temperature caused by climate change Sewer network designed with consideration for increased wastewater caused by climate change Adaptation cost (US$m) Mitigation cost (US$m) Adjust 10% increase in the drainage pipelines design Adjust 10% increase for design road surface drain and culverts and develop road side conservation measures trees and green belt that is considered as dual benefit to climate change. Mitigation measures also need to be designed including walk and non-motorized transport paths and adopt LED lighting system

46 330. Non-structural adaptation measures have also been incorporated into the project implementation plans, including effective land and water conservation measures in upstream catchments of the Taoshan reservoir to reduce the flood risks of the river systems and improve the water quality, effective road maintenance procedure and road site conservation measures to make the road more sustainable and reduce the flood damage risks. 2. Greenhouse Gas Emissions 331. Greenhouse gases. Project greenhouse gas (GHG) emissions will be generated from infrastructure construction and operation. Emissions during construction will derive from the use of energy, including gasoline, diesel and electricity, by construction machinery and vehicles and by consumption of construction materials. During the operation stage, GHG will be generated from increased traffic, energy used for road and bridge lighting and signals, operation of WWTP and WTP, management offices, and by equipment and vehicles. There will also be other energy uses such as heating for new buildings, including the service centre in Hegang and cultural plaza of Jixi. Energy consumption has been estimated based on information in the FSRs as well as other sources such as road construction adopted the World Bank national road construction standard (World Bank, 2010), and pipeline construction adopted the emission standard of SunWater of Queensland (SunWater and SKM, 2010) Carbon sequestration. In the PRC, annual carbon sequestration capacity of forest is estimated to be t C/ha depending on forest type, species, and age, as well as soil, water and weather (average annual sunshine hours, rainfall and temperature). Considering the climatic conditions of Heilongjiang Province and species typically used for reforestation (P. sylvestris), the value of 5.5 t/ha.yr was applied for the calculation of carbon sequestration for the project Estimated greenhouse gas emission and carbon sequestration resulting from the project are summarized in Table VI-43. Table VI-43: Project GHG emission and carbon sequestration Infrastructure Number of projects As tco2e Construction Phase (5 Years) Wastewater treatment plants (Hegang, Jixi) Roads and related infrastructure Mining sites remediation Water treatment and related pipelines Integrated rivers and lakes rehabilitation Heating system improvement Various pipelines Building and related facilities Public transport Total Emissions Annual average during the construction phase Operation Phase Items Quantity Unit As tco2e Electricity use - Wastewater treatment plants kw-hr/y Electricity use - Roads and related infrastructure kw-hr/y Increased traffic Pcu-km/y Electricity use - Mining sites remediation kw-hr/y Electricity use - Water treatment and pipelines kw-hr/y Electricity use Int. rivers and lakes rehabilitation kw-hr/y Electricity use - Building and related facilities kw-hr/y Electricity use - Public transport kw-hr/y

47 Infrastructure Number of projects As tco2e WWTP emissions Emission from other energy uses Total Emissions Tree Planting reduction ha Heating system improvement reduction Ton coal Public transport emission reduction Total estimated emission in operation phase The total annual emission estimated for the construction phase is 96,646 tco2e for all project components of the four cities. For the operation phase, there is a significant GHG reduction from tree planting, heating system improvement, and public transport improvement projects. A total of 419 ha of trees are planted in this project, including roadside conservation, mining sites remediation and all other small areas. The total annual emission in the operation phase is estimated as 30,962 tco2e for all project components in four cities. This is well below ADB s SPS threshold level of around 100,000 t/yr CO 2e per year. 215

48 VII. ANALYSIS OF ALTERNATIVES 335. During project preparation, alternative designs for were assessed in consideration of technical, economic, and energy efficiency and environmental and social impacts. These included a no project alternative; as well as various options for project components in each of the project cities, primarily river channel design and for water and wastewater treatment plant designs. A. No Project Alternative 336. If the project is not implemented, adverse environmental, social and economic impacts can be expected in the project cities. Existing issues with poor environmental quality and urban poverty would not be addressed. Moreover, these issues would become more severe without project implementation due to on-going deterioration in the socio-economic condition in the project cities. B. Hegang City 337. Alternative Alignments. The proposed river alignments and/or structures have been developed taking into consideration existing site conditions, including: (1) topography, (2) engineering geology, (3) hydrology, (4) river hydraulics, (5) existing flood management infrastructure, (6) physical interrelation between the main river channel and the floodplain, (7) flood protection immunity requirements, (8) the riverside eco-environmental development, greenbelt and landscaping sits for example, and (9) safeguard considerations, difficulty in resettlement for example, as per integrated floodplain management objective of the project The figures below show selection of alternative alignments by taking Qianjin Creek in Hegang as an example. Alternative 2 is recommended as plane layout of Qianjin Creek rehabilitation according to the local specific conditions and hydraulic efficiency (Figure VII-1). Alignment Option 1 Alignment Option 2 Figure VII-1: Qianjin Creek Alignment Options 339. River channel improvement works. The goal of channel works is to enhance flood control standards while at the same time improving ecological functioning and landscape values. The choice of alternative design options to meet these goals is contingent on various aspects of the project including structural performance, ecological and landscape value potential, cost and ease of construction. For the four river channels to be improved in Hegang 216

49 (as well as two channels in Jixi), three design alternatives for embankment improvements were considered, ecological retaining wall, grouted rubble retaining wall, and reinforced concrete retaining wall (Figures VII-2 to VII-4). A comparison is summarized in Table VII-1. For this project, ecological retaining wall was selected as the preferred option due to superior ecological and landscape value performance. Figure VII-2: Ecological embankment Figure VII-3: Grouted rubble retaining wall Figure VII-4: Reinforced concrete retaining wall Table VII-1: Alternative analysis for river channel retaining wall improvements Item Ecological Retaining Wall Grouted Rubble Retaining Wall Reinforced Concrete Structural performance Fair Moderate Good Landscape value Good Moderate Low Ecological enhancement potential Good Fair Low Capital Expenditure Low Low Moderate 217

50 Ease of construction Operational Expenditure Moderate, requires relatively complex treatment of backfill and involvement of various specialist technical staff. Good, Mature technology requiring skilled workers Good. Mature technology. High Low Very Low 340. From an engineering and maintenance perspective, traditional engineering designs are preferred. However, to meet the objectives of ecological and landscape enhancement, the ecological retaining wall is recommended given its obvious advantages, in addition to relatively low capital expenditure. C. Jixi City 341. Treatment process of Jixi No.3 WTP upgrading. For turbidity removal, traditional flocculation/sedimentation will still be used, with two options (grid flocculation tank and baffled flocculation tank) considered. The grid flocculation tank was recommended so as not to change the existing layout of the WTP For advanced treatment for ammonia and organic removal, the ozonation + biological activated carbon (BAC) process and membrane process (ultra-filtration) were compared. Ozonation + BAC has a higher ammonia removal efficiency, and it a commonly adopted treatment system already in PRC, and was therefore adopted in this instance Alternative de-watering methods were considered for the sludge treatment process, including framed filter presser, belt filter presser and centrifugal dewater machine. For this project component, dewatered sludge will be disposed of at a landfill requiring less than 60% water content. Only the framed filter presser de-watering method can achieve this efficiency, and so was selected here Drainage (sewer and storm water) system in Jixi. Pipe materials considered include reinforced concrete, PVC and HDPE. Though reinforced concrete pipe is heavy and therefore has higher transportation and installation costs, the comprehensive unit cost is the lowest. Therefore reinforced concrete piping was adopted Water distribution system in the old industrial area in Jixi. Three different pipe materials were compared: steel, ductile iron and polyethylene (PE). Because PE has significant advantage when the size is < DN150 mm, while ductile iron has significant advantage when the size is > DN150 mm, these two materials were recommended for different pipe sizes. This combined approach is very common in PRC Design of Jiaotong Road. For Jiaotong Street, four car lanes were originally considered to maximize the red line width of road and provide more space for vehicles, with green belts on both sides of the road reduced to 7.5 m. However, after local investigations, as well as consideration on traffic growth in future, two car lanes were considered sufficient for predicted traffic volume. Besides, more green reserve of road is better for a view of green and ecological city. Table VII-2: Widths comparison for roadway elements of Jiaotong Street (Meter) Design Green belt (L) Sidewalk (L) Car lanes Sidewalk (R) Green belt (R) Selected Alternative

51 347. Design of Gongqu Flyover. For Gongqu Flyover, alternative design chose a straight line for the bridge body. But after the approach in the north, a ground crossing will be created where traffic conflicts exist. Figure VII-5: Design of Gongqu Flyover (Alternative) Table VII-3: Comparison between two plans of Gongqu Flyover Items Selected Alternative Traffic organization at north side Interchange function Ground crossing without traffic conflicts Road Alignment Circular curve existed Full straight line Maximum Longitudinal Gradient (%) 5% 4% Cost High Medium 348. Comparing to alternative design of Gongqu Flyover, proposed plan performs better connecting current southern road into S206, which reflects from flowing aspects: (1) Higher capacity is designed for link with 4 lanes, and southern road receives benefit as well- it s also widened in order to match the lanes of link, (2) No ground conflict points will be created in the north where link lands, so higher efficiency of traffic flow both for south-north (flyover), and west-north (S206), (3) Right turning from west to south is open by new ramp, so closer connection for Hengshan district to southern area, (4) The current small bridge remains and will serve for left turning of S206 from west to north, meanwhile traffic from south to west can be available Although it has a higher cost due to higher capacity and a ramp, proposed plan performs like an interchange with many positive factors. 219

52 350. Alignment of Yunfeng Tunnel (SY 3.2). Three alternative alignments for the Yunfeng Tunnel were compared regarding the aspects of engineering difficulty, environment protection requirement and engineering cost. The three alignments are shown in Figure VII-6, and a summary of the comparison is provided in Table VII-4. Alternative A is selected because of low risk of construction and less destruction to greens. Figure VII-6: Alignment alternatives for Yunfeng Tunnel Table VII-4: Alternative analysis for Yufeng Tunnel alignment Construction Environmental Description Issues Issues Avoiding the Short approach adverse road- less geological destruction to area of greens and good Yunfeng Mt. for landscape Pass- low risk design of construction Alternative A total length 1395 m, with 940 m tunnel Ending at right anglegood for traffic Ending at open landeasy for construction B total length 1445 m, with 860 m tunnel Ending at right bevel angle- interferential to traffic Ending at open landeasy for construction C total length of 1595 m, with 1085 m in tunnel. Ending at curve of East Ring Road- negative influence to traffic Ending at limited landeasy for construction Crossing at the adverse geological area of Yunfeng Mt. Pass- shallow tunnel with high risk of construction Avoiding the adverse geological area of Yunfeng Mt. Pass- low risk of construction 220 Long approachbig destruction to greens Medium approachless destruction to greens Est. Cost RMB mill RMB mill RMB mill 351. Xinxing link. One alternative was considered with a different alignment starting from

53 East Parallel Road rather Xinxing Avenue, and same ending at South Ring Road. The total length is 1450 m with full straight line. But because of high volume of demolition work and high cost of it, it s not chosen. Detailed comparison between two plans refers to the table below. Figure VII-7: Design of Xinxing Link (Alternative) Table VII-5: Comparison between two plans of Xinxing Link Items Selected Alternative Network function Connecting to Xinxing Avenue (6 lanes) and matching well with current network Connecting to East Parallel Road (4 lanes) and less matching with current network Road Alignment One circular curve Full straight line existed Maximum Longitudinal Gradient (%) Cost Medium Medium Demolition Volume Less high D. Qitaihe City 352. Treatment process of WTP in Qitaihe. For the turbidity removal, traditional flocculation and sedimentation will still be used. Alternatives on pros and cons of propelled flocculation and baffled flocculation have been considered. It is found that baffled flocculation is more popular in modern WTPs as it requires less operation and maintenance needs. On the contrary, the propelled flocculation, as motorized equipment will be used, will consume more energy and need regular operation and maintenance for the propellers. However the mixing condition can be more easily controlled in propelled flocculation. As mixing condition is very important for the water with low temperature which is common for Qitaihe, it is recommended adding propellers in the flocculation tank For organic content removal, analyses on alternative pre-treatment process has been carried out. Traditional filters cannot remove organic content from the water, a pre-treatment process will be added to dose (1) ozone and (2) powdered activate carbon upfront will be added To further strengthen the organic removal, advanced treatment units are needed. The membrane filtration and the ozone + bio-filter treatment methods have been compared. However it is not a good comparison because these two methods are targeting at different pollutant though they are both considered advanced treatment unit. The membrane filtration has little effect on the removal of dissolved organics. On the other hand, ozone can help break down the large organic compound and form more biodegradable small compounds. And then the bio-filter, using activate carbon as media, will encourage biological activity on the surface of the carbon which will then degrade the small organic compounds The Ozone + biofilter process has been tested in Harbin Institute of Technology in 221

54 benchtop scale and pilot scale, and in Daqing and Jilin in full scale, and proved effective for low temperature and high organic raw water. However it is not tested with raw water from Taoshan Reservoir. Nonetheless it is recommended for the WTPs in this project Various disinfection methods have been considered, including chlorine, chloramine, chlorine dioxide, ozone, etc. Because additional treatment units will be used for organic removal, the risk of disinfection by product will be reduced. It is recommended continuing to use chlorine as disinfectant. Proposed dosages are 2 ppm for prior chlorination and 1 ppm for post chlorination. Residual chlorine levels will meet the Drinking Water Quality Standard (GB ) to ensure no less than 0.3 mg/l at WTP outlet and no less than 0.05 mg/l at end pipe Sludge Treatment for WTP in Qitaihe. Sludge treatment facilities considered includes framed filter presser, belted filter presser and centrifugal dewatering machine are compared. The comparisons are summarized in Table VII-6. Table VII-6: Alternative sludge dewatering facilities considered for Qitaihe WTP Centrifugal Dewatering Item Machine Framed Filter Presser Belt Filter Presser Solid content 20-25% 30-45% 12-20% Continuous Continuous Intermittent Continuous operation Footprint Compact Large Fair. Backwashing water Lowest Fairly large Largest Energy consumption High Medium Low Noise High Low Low Cost Medium High Low 358. Though belt filter presser has the lowest capital cost and operation cost, it requires the sludge be well condensed before being feed. The solid content of the de-watered sludge is lowest among them. It also requires a lot of water consumption for backwash. The centrifugal dewatering machine is recommended for the project Distribution system in Qitaihe. Pipe materials considered includes pre-stressed concrete cylinder pipe (PCCP), ductile iron, fiberglass, steel and PE. Different factors including pressure bearing capacity, weight, market availability, reliability, construction convenience, and cost etc. are considered. After comprehensive consideration, it is recommended to use PE with the pipe size is small (inclusive) than DN300. When the size is larger, it is recommended to use ductile iron. At places of river crossing or obstacle crossing, steel pipe is recommended. E. Shuangyashan City 360. Distribution system in Shuangyashan. Five different pipe materials are considered, including PCCP, ductile iron, fiberglass, steel and PE/UPVC. Different factors including pressure bearing capacity, weight, market availability, reliability, construction convenience, and cost etc. are considered. After comprehensive consideration, it is recommended to use PE with the pipe size is small (inclusive) than DN300 mm. When the size is larger, it is recommended to use ductile iron. At places of river crossing or obstacle crossing, steel pipe is recommended Sewer and drainage system. Analyses on alternative pipe materials have been carried out, including Steel - reinforced double-wall corrugated pipe, reinforced concrete, HDPE, PVCU, and fiberglass. Different factors including pressure bearing capacity, weight, market availability, reliability, construction convenience, and cost etc. are considered. After comprehensive consideration, it is recommended to use HDPE double-wall corrugated pipe for sewer and reinforced concrete for storm water. 222

55 VIII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION A. Legislative Framework 362. Meaningful participation and consultation in the evaluation of project planning, feasibility study, design and implementation are important environment safeguard requirements. Effective information disclosure and consultation directly influence public perception of environmental quality in the project s area of influence Relevant provisions in the Environmental Protection Law (EPL) and the EIA Law (amended in 2016) require that the construction unit shall be in accordance with relevant laws and regulations to solicit the opinions of units concerned and inhabitants of project construction site for the projects could cause significant environmental impacts. The new EPL (2015) requires that the local EPB shall disclose the full EISs to the public The ADB s Safeguard Policy Statement (2009) also has detailed and strict requirements on meaningful participation, consultation and information disclosure. The consultation process for this project therefore followed both PRC requirements and the ADB requirements Information disclosure and public consultation have been conducted during preparation of the domestic EISs and EITs, and this project EIA. Information disclosure and consultation included: disclosure on the internet, community posting, questionnaire surveys in the framework of the poverty and social assessment (PSA) and the DEIAs, and discussion forums attended by affected people and other concerned stakeholders. B. Information Disclosure and Public Consultation to Date 366. Two rounds of information disclosure for the proposed project were concluded by local EIA institutes. The first round of information disclosure was done seven days after the EIA institutes were appointed. The first round of information disclosure was designed to solicit public comments and suggestions on the project and on the terms of reference for the EIA. The contact details of the PMOs, PIUs and the EIA institutes, major procedures and scope of the EIA, and main aspects and approaches for public consultation were presented on the government website of each project city and community posters. The second round of information disclosure was undertaken once the draft EIA reports were available during March- April The purpose was to solicit public comments on the preliminary findings of the EIA. Figure VII-1 shows example of web-posting. Project information was also publicly posted in affected communities and in local newspapers (Figure VII-2). The announcement period was 10 working days for each disclosure stage. No comments or objection to the project were received. 223

56 First Round Hegang (Date: 16/01/2017) Shuangyashan (Date: 06/03/2017) dex/html/viewnews.jsp?newsid= Jixi (Date: 27/01/2017) Qitaihe (Date: 07/03/2017) = /t _ htm Second Round Hegang (19/04/2017) Shuangyashan (25/04/2017) /04/7535.htm ewnewsbm.jsp?newsid=

57 Jixi (07/04/2017) Qitaihe (24/03/2017) = /t _ htm Figure VIII-1: Information disclosure by posting on City Government Websites Shuangyashan Xinxing Avenue Shuangyashan Yunfeng Tunnel Jiguan Industrial WWTP Hegang mining rehabilitation 225

58 Qitaihe industrial park disclosure on Qitaihe Daily (2017/4/21) Shuangyashan Xinxing Avenue and Yunfeng tunnel disclosure on Shuangyashan Daily (2017/4/25) Gongqu Bridge disclosure on Jixi Daily Hengshan industrial park infrastructure (2017/3/27) disclosure on Jixi Daily (2017/3/27) Figure VIII-2: Other formats of information disclosure C. Socioeconomic Survey 367. In the framework of the PSA conducted by the PPTA, a household survey was conducted from December 2016 to February 2017, with 587 copies distributed and 585 valid copies received. There were 153 valid copies in Hegang City, 150 in Jixi City, 131 Qitaihe City and 151 in Shuangyashan City Most of the interviewees were between 40 to 60 years old. 21.5% received primary school education or below, 44.8% had received junior high school education, 17.3% had received senior high school and 16.4% had received college education or above The results of the questionnaire survey confirmed that most respondents strongly support the project and are willing to participate, because the project will benefit them and their family members. Only 14.6% of the respondents were satisfied with the existing heat 226

59 supply services because of low room temperatures, while 47.9% were dissatisfied % of respondents were dissatisfied with local water supply services. The major reason is the water was sometimes sandy with tiny white precipitation after boiling. 34.5% of respondents were dissatisfied with wastewater collection and treatment services. The major reason is the sewers are not collected to the wastewater treatment plant, and sewage is sometimes directly discharged into open ditches leading to odour impacts and health concerns. 42.2% of respondents believed local rivers were seriously polluted, 38.35% of respondents felt that the rivers smell badly, and 27.4% of respondents thought the mining has caused moderate to serious pollution. D. Questionnaire Survey for Domestic Environmental Impact Assessments 370. In the framework of the DEIA and in compliance with the PRC EIA requirements, the PIUs conducted questionnaire surveys for the PRC Category A components under the support of EIA institutes February to April Hegang 371. For the Luobei WWTP, public consultation was undertaken in the form of a questionnaire survey, which was conducted in March-April A total of 100 questionnaires were distributed and 94 copies were returned. Participants consisted of 88.3% males and 11.7% females, 60.6% respondents are at the ages of The questionnaire survey focused on the understanding of the project, and their view on the potential impacts on the environmental, social and economic developments. 100% respondents agreed with the project For the Hegang mining rehabilitation, a total of 82 questionnaires were distributed and 100% were returned. Participants consisted of 68% males and 32% females. 35% respondents are at the ages of 30-50, and 56% are at the ages older than % respondents agreed with the project if all mitigation measures proposed will implement properly. 2. Jixi 373. The questionnaire survey in Jixi was conducted for the Jiguan WWTP, road construction in Hengshan Graphite Industrial Park, and Gongqu Bridge For the Jiguan WWTP, a total of 76 questionnaires were distributed and 100% were returned. Participants consisted of 67.5% males and 32.5% females. 66.2% respondents are at the ages of 30-50, and 44.2% had received college education or above. 70.1% respondents agreed with the project and 24.7% had a neutral attitude to the project. The 5.2% participants from Dongtai Village who disagreed with the project due to concerns about impacts to groundwater quality. After explaining the seepage prevention measures that will be taken, these participants expressed support for the project For the Hengshan Graphite Industrial Park roads, total of 30 questionnaires were issued and 100% were returned. Participants consisted of 46.7% males and 53.3% females, with 66.7% above ages of % had received college education as major affected persons were from the enterprises and government agencies in the industrial park. 90% respondents were dissatisfied with the current road and transportation conditions. All respondents agreed to have the project. The main environmental concerns identified were dust (80%) and noise (60%) during construction and traffic noise (80%) and exhaust gas (86.67%). 227

60 376. For the Gongqu Bridge, total of 50 questionnaires were issued, including 45 individual respondents and 4 group respondents. 98% of participants viewed the project would be beneficial to local economy development. All respondents agreed to have the project. The major concerns are disturbance to local traffic (98%) during construction and traffic noise and exhaust gas (96%) during operation. 3. Qitaihe 377. For the Qitaihe industrial park road, a total of 70 questionnaires were distributed and 100% were returned. Participants consisted of 84% males and 16% females. 77% respondents are at the ages of % respondents agreed with the project if all mitigation measures proposed will implement properly. The main environmental concerns identified were dust (46%), noise (41%) and disturbance to traffic during construction and traffic noise (40%) and exhaust gas (56%). Four groups were also consulted, including Qitaihe Land Resources Bureau, Jinsha Farm Administration (the site is located in the Misha state owned farm), Urban-rural Planning Bureau and Housing and Construction Bureau. All groups consulted express support to the project. 4. Shuangyashan 378. For the South Ring road, a total of 93 questionnaires were issued and 100% were returned. Participants consisted of 48.39% males and 51.61% females % respondents were at the age of % has received high school education and 30.11% has received college education. Most concern (68.54%) during construction is the affects to traffic. Total of 65.26%% affected persons consulted consider traffic safety is the major issue of road during operation % respondents were supportive to the subcomponent and 3.51% has a neutral attitude to the subcomponent. Four groups in the affected areas were also consulted, including the Anshan Community Committee, Fu an Village Committee, Shuangyashan Welfare Center and Yaodi Community Committee. All groups consulted were supportive to the project For the Xinxing Avenue, a total of 80 questionnaire were issued and 100% were returned. Participants consisted of 72.5% males and 27.5% females. 50% respondents were at the age above % has received education of primary school. The remains have received education of high school. All affected persons consulted were supportive to the project. The most concern (41.25%) during construction is the affects to traffic. Total of 63.75% affected persons consulted consider traffic safety is the major issue of road during operation. Three groups in the affected areas were also consulted, including the Fu an Village Committee, Shuangkuang Hospital, and Shuangyashan Mining Company. All groups consulted were supportive to the project For the Yunfeng tunnel, a total of 58 questionnaires were issued and 100% were returned. Participants consisted of 63.8% males and 36.2% females, with 66.7% above the age of % had received college education. 90% respondents were dissatisfied with the current road and transportation conditions. 98.3% respondents agreed to have the project. The remains had a neutral attitude to the project. The main environmental concerns identified were loss of vegetation (42.1%) and disturbance to the traffic (17.2%) during construction and traffic noise (77.4%). The majority of respondents (69%) believed the project will not affect their daily life and 17.2% respondents thought the project will positive impact to their daily life, while 13.8% hold the attitude that the project will have negative impact to quality of life due to increased noise nuisance. In addition, six groups were consulted, including Shuangyashan Planning and Design Institute, Planning Bureau, Foreign Affairs and Tourism Bureau, Garden Bureau, Housing and Urban-rural Construction Bureau and Geological Survey Institute. All 228

61 groups consulted expressed support to the project. E. Public Consultation Meetings 381. The EIA institutes undertook public consultation meetings together with the PPTA environmental consultant in the four project cities during March 2017 with support of PMOs and PIUs. A total of 124 stakeholders (21 from Hegang, 49 from Jixi, 15 from Qitaihe and 39 from Shuangyashan), including representatives from residents near the construction sites, officers from local environmental bureaus, land resources bureau, water resources bureau, urban management bureaus attended the meetings. During the consultation meeting, PMOs and PIUs presented an overview of the project and the EIA institutes introduced the anticipated environmental impacts and mitigation measures to the participants. The PPTA environmental consultant explained the ADB SPS policy and the GRM (Figure VII-3). Hegang Jixi Qitaihe Shuangyashan Figure VII-3: Public Consultation Meetings at the Project Cities Conducted March No specific comment or concerned was raised by the forum participants in Hegang and Qitaihe. All participants fully supported the project In Jixi, villagers near the proposed of Jiguan WWTP expressed some concern about potential impacts to groundwater, as they reply on groundwater wells for water supply. The EIA institute explained all wastewater storage tanks of the treatment process will have antiseepage measures. The impact assessment results showed that after taking these measures, the potential risks to the groundwater is minimal. The Jixi EPB suggested the design of water supply pipes should consider local geological conditions, as there is long history coal mining in Jixi. It was explained the pipeline design will be reviewed by the land resources bureau, and that geological surveys will be conducted during detailed design stage In Shuangyashan city, residents near the tunnel entrance expressed concerns about 229

62 noise and dust disturbance during construction and noise during operation. It was explained during construction, a 2.5 m barrier will be installed to prevent dust and noise impacts, and construction during nighttime (22:00-6:00) will be forbidden. During operation, noise level modelling results showed that with suitable mitigation measures, noise levels during operation would satisfy relevant standards. The villagers near the proposed South Ring Road raised queries about potential traffic impacts during construction. It was explained that a traffic control and operation plan will be prepared together with the local traffic management authority prior to construction. The residents near the Xinxing Street expressed the concerns about vibration during road construction. It was explained that equipment with high noise and high vibration would not be used near residential areas, and that only low noise machinery or equipment with sound insulation will be employed in these areas. F. Future Plans for Public Consultation 385. Meaningful consultation to safeguard the environment and local residents will continue throughout construction and operation phases. The city PMOs and the PIUs will be responsible for organizing the public consultations, with the support of the LIEC and EEM. The contractors will be required to communicate and consult with the communities in the project area of influence, especially those near the project areas. Eye-catching public notice boards will be set at each work site to provide information on the purpose of the project activity, the duration of disturbance, the responsible entities on-site (contractor, PIUs), and the project level GRM. Contact information of all GRM entry points and the project complaint center hotline will be disclosed on the construction site information boards. Consultation will focus on public complaints about public nuisances from construction and operation activities, such as water quality, noise, asphalt fume nuisance, dust, odor, traffic disturbance, as well as public concerns about the environment and resettlement. Plans for future public consultation are summarized in Table VII-I. Table VII-1: Public consultation plan Organizer Format No. of Times Subject Attendees Budget Construction Stage PMOs, PIUs, LIEC PMOs, PIUs, LIEC Public consultation & site visits Expert workshop Operational Stage O&M units Public satisfaction survey O&M units Public consultation and site visits 4 times: 1 time before construction commences and 1 time each year during construction As needed based on public consultation At least once (at project completion stage) Once in the first year Adjusting of mitigation measures, if necessary; construction impact; comments and suggestions Comments and suggestions on mitigation measures, public opinions Effectiveness of mitigation measures, impacts of operation, comments and suggestions Effectiveness of mitigation measures, impacts of operation, comments and suggestions 230 Residents and other APs adjacent to components; contractors, CSCs Experts of various sectors, CSCs contractors Project beneficiaries Residents and other APs adjacent to component sites; CES. $2,000/city $ 500/city $ 400/city $ 400/city

63 Organizer Format No. of Times Subject Attendees Budget O&M units Expert $ 400/city workshop As needed based on public consultation Total budget: $14,800 ($3,700 each city) Comments and suggestions on mitigation measures, public opinions Representatives of residents and social sectors 386. Information disclosure relating to environment safeguards will continue throughout project implementation. The project s environmental information will be disclosed as follows: (i) Domestic EISs and EITs (in Chinese) were disclosed on the local EPB websites before approval by relevant municipal/county/district environmental protection authorities; (ii) The approval of domestic EISs and EITs were disclosed on the local EPB s websites. (iii) Copies of the domestic EISs and EITs (in Chinese) are available on request in the PMOs and PIUs. (iv) The draft EIA is disclosed on the project website at (v) All semiannual environmental monitoring reports during project implementation and annual environmental monitoring report during operation (first year)will be available at (vi) The environmental completion certificate report will be disclosed on local EPB s websites before approval by relevant municipal/county/district environmental protection authorities; (vii) The approval of environmental completion certificate will be disclosed on local EPB s websites. 231

64 IX. GRIEVANCE REDRESS MECHANISM 387. A GRM has been established as part of the project EMP to receive and manage any public environmental and/or social issues which may arise due to the project. The PMOs will ensure that potentially affected communities are informed about the GRM at an early stage of the project. During the project preparation phase, the PIUs, PMO and EPB of each project city have received training on the GRM from the PPTA team The project city PMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PMO environmental specialist (ES) coordinates the GRM and (i) instructs the PIUs and contractors on their responsibilities in the GRM (ii) establishes a simple registry system, to document and track grievances received (including forms to record complaints and how they have been resolved); and (iii) reports on progress of the GRM in the annual environmental monitoring and progress reports (ERM) to ADB Each PIU will assign a member of staff, who is responsible for implementation of the GRM and other relevant aspects of the EMP. This will be the PIU-ES. Tasks include keeping a record of complaints. At least two months before construction commences, these contacts will be disclosed to the public at each construction site and forwarded to local residents and villagers to ensure that entry points to the GRM are well known GRM readiness procedures prior to start of construction. To be successful and reduce the likelihood of public concerns, the following measures will be implemented before any construction: a. On-site procedures: (i) all contractors and Construction supervision company (CSC) staff will be briefed by the PMO-ES and PIU-ES on the GRM. Contractors and workers will be instructed to be courteous to local residents and, in the event they are approached by the general public with an issue, to immediately halt their work and report the issue to the foreman; (ii) at least one sign will be erected at each construction site providing the public with updated project information (the purpose of the project activity, the duration of disturbance, the responsible entities on-site), the GRM process, and contact names and details for the GRM entry points. b. Non-project agencies: prior to project construction, the PMO-ES will notify all relevant agencies about the project and GRM, so that if these agencies receive complaints, they know to contact PMO-ES and follow up as necessary. This will include, but not be limited to, the project city EPB, Urban Management Bureau, and traffic management authority The procedure and timeframe for the GRM is shown in Figure EMP-1, and is summarized as follows. (i) Stage 1 (maximum 10 working days): Affected persons can submit a written or oral complaint to the contractors, CSCs or PIUs. Complaints received by any other institutions will be referred back to the PIUs for action. The PIUs will notify the PMO-ES for the complaint within two days. The PMO-ES will enter the complaint in the Complaint Register. The contractor, in consultation with the PIU, attempts to resolve the issue directly with the affected person. Within five working days of receiving the complaint, the agency will provide clear advice to the affected person on the proposed corrective action and by when it will be taken. The corrective action will be implemented not later than 10 working days from receipt of the complaint. The PMO-ES will enter the resolution in the 232

65 Complaints Register. If quick corrective action is not possible, or the PIU is unsure how to proceed, or the complainant is not satisfied by the initial corrective action, then the complaint will be referred to the PMO-ES for Stage 2. (ii) (iii) Stage 2 (maximum 5 working days): For complaints not resolved in Stage 1, Stage 2 is initiated. The PMO-ES, contractor, CSC and PIU will meet with the affected person and together discuss the issue and identify possible solutions. At the meeting, a possible solution will be agreed upon. The contractor or PIU, as appropriate, will implement the agreed solution and report the outcome to the PMO-ES. Stage 3 (maximum 10 working days): If Stage 2 is unsuccessful (i.e. no solution can be identified or the affected person is not satisfied with the proposed solution) the PMO-ES will convene a multi-stakeholder meeting and involve the project leading group to ensure that any needed inputs from other agencies are coordinated. The workshop will identify on the outcome provide to the PMO and ADB The above steps related to the construction phase where most complaints will be directed in the first instance to the contractor, CSC or PIU. During initial operations, complaints will be received by the operation and maintenance (O&M) units of the facilities PMO will inform ADB of all complaints and actions under the GRM and include all relevant documents in its progress reports to ADB Any costs incurred to receive and document grievances will be paid by the PMO. The grievance procedures will remain valid throughout the duration of project construction and the first two years of project operation The tracking and documenting of grievance resolutions by the PMO will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) regular updating of the GRM database by the PMO-ES; (iii) processes for informing stakeholders about the status of a case; and (iv) a simple but effective filing system, so that data can be retrieved for reporting purposes, including reports to ADB. 233

66 396. If the above steps are unsuccessful, people adversely affected by the project may submit complaints to ADB s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADBassisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department (in this case, the ADB East Asia Department). Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism. 15 Figure IX-1: The Project Grievance Redress Mechanism Stakeholders involved will depend upon the nature of the complaint and will include as a minimum the affected person(s), city PMO, PIU and project city EPB. Other stakeholder agencies relevant to particular concerns can be called upon to contribute through the provincial PMO. Note: AP = affected person, EPB = environmental protection bureau, O&M = operation and maintenance, PMO =project management office; PIU=project implementation unit; PLG=project leading group. 15 See: 234

67 X. ENVIRONMENTAL MANAGEMENT PLAN 397. A project EMP has been prepared (Attachment 2). Development of the EMP drew on the domestic EIA reports, discussions with the PMO, implementing agencies, EPBs, other government agencies, and local communities. The EMP defines mitigation measures for the anticipated environmental impacts, institutional responsibilities, and mechanisms to monitor and ensure compliance with PRC s environmental laws, standards and regulations and ADB s SPS. The EMP specifies major environmental impacts and mitigation measures, roles and responsibilities, inspection, monitoring, and reporting arrangements, training, and the GRM. The EMP will be updated by the LIEC after detailed design, as needed. It will be included as separate annex in all biding documents for subcomponents involving civil works. Contractors will be required to develop site-emps that are fully responsive to the EMP. XI. PROJECT ASSURANCES 398. The project has no unusual technical risks and conventional engineering designs with proven reliability and performance will be adopted for all the engineering components. From an environment safeguards point of view, the main risk relates to the failure of the PMO, PIUs and O&M units to monitor environmental impacts and implement the EMP during construction and operational stages. This risk will be mitigated by (i) providing training in environmental management under the project; (ii) appointing qualified project implementation consultants and an external environment monitor, (iii) following appropriate project implementation monitoring and mitigation arrangements, (iv) ADB conducting regular project reviews; and (v) project assurances covenanted in the loan and project agreement with ADB. The following assurances will be included in the loan and project agreements (in addition to standard assurances) General. HPG shall ensure and shall cause the IAs to ensure that the preparation, design, construction, implementation, operation and decommissioning of all project facilities comply with (a) all applicable laws and regulations of the PRC relating to environment, health and safety; (b) the Environmental Safeguard Policy Statement; and (c) all measures and requirements set forth in the EIA, the EMP, and any corrective or preventative actions (i) set forth in a Safeguards Monitoring Report, or (ii) which are reasonably requested by ADB to ensure safeguards policy compliance HPG shall ensure and shall cause the IAs to ensure that throughout project implementation, (i) any changes to the project design that may potentially cause negative environmental impacts are reviewed; (ii) in consultation with ADB, environmental monitoring and mitigation measures are revised as necessary to assure full environmental compliance; and (iii) provide ADB within 60 days justification for any proposed changes to the mitigation measures required during design, construction and operation Cumulative noise impacts. HPG shall ensure and shall cause the IAs to ensure that construction schedules are reviewed during the detailed design to minimize concomitant component construction in adjacent areas River dredging. HPG shall ensure and cause the IAs to ensure that the dredged material generated in the course of implementation of the river rehabilitation component is tested and disposed of in accordance with national and local laws and regulations, and will not create significant risk of secondary pollution Wastewater treatment plants. HPG shall ensure and cause the IAs to a) conduct geological surveys during detailed design stage to inform project design and minimize potential groundwater contamination issues; b) ensure that the industries in Luobei County 235

68 High-tech Graphite Based Industrial Park and Jiguan Industrial Park contain adequate pretreatment processes; c) monitor and supervise the quality of wastewater discharged by upstream industries to ensure compliance with relevant standards; and d) the reclaimed water in Luobei County High-tech Graphite Based Industrial Park will be 100% reused Traffic noise. HPG shall ensure and cause the IAs to ensure that all measures described in this EMP for traffic noise mitigation will be implemented, including installation of noise insulation windows for affected households along the proposed urban roads, adopting of noise reducing surface and speed limits Industrial park planning. HPG shall ensure and cause the IAs to ensure all industrial parks involved in the Project will conduct planning environmental impact assessment and all stipulations of the planning EIA will be implemented, including but not limited to selection criteria for tenants and industrial park emergency response plan Borrow and spoil. HPG shall ensure and cause the IAs to ensure the detailed Soil Erosion Protection Plans (SEPPs) will be prepared prior to award of civil work contracts. HPG and the IAs will ensure that the contractors manage borrow and spoil disposal sites in accordance with the EMP and SEPPs Land remediation design. HPG shall cause the IAs to conduct geological and environmental surveys during detailed design for mine and waste rock dump rehabilitation components. The design of mining site/ waste rock dump site rehabilitation works will be reviewed by the mining specialist and environmental specialist contract through the loan implementation consulting services in consultation with ADB prior to awarding of civil work contracts. Associated and linked facilities. HPG shall ensure and cause the IAs to ensure facilities associated and/or linked to the project will be completed and operational before the completion of construction stage in this project Use of native plant species and landscape maintenance. HPG shall ensure and cause the IAs to cause the Design Institutes and Contractors to ensure that for all river embankments, reforestation works, landscaping, planting at wastewater treatment plants, and post-construction rehabilitation, only native plant species will be used and which are locally sourced. All landscaped/reforested areas will be subject to operation and maintenance procedures after planting, to ensure the planted vegetation is adequately protected and maintained Utilities provisions. HPG shall ensure and cause the IAs to ensure continuous heating, water and wastewater services should be provided during civil works related to the expansion/improvement of existing utilities Road safety. IAs will cause the local Transport Bureaus to ensure that a road safety audit of the preliminary design is conducted during detailed engineering design, to confirm proper design of signage, lighting, and intersections of the planned roads and sustainable transport features. 236

69 XII. CONCLUSIONS 411. The project will help the HPG improve water and environmental management in the four cities, facilitate future sustainable development, and enhance climate resilience. The project has been developed with reference to the approved Thirteenth Five-year Plan of Heilongjiang Province and the Transformation Development Planning of Coal Cities in Heilongjiang Province ( ), as well as the Thirteenth Five-year Economic and Social Development Plan and City Master Plans ( or varied by city) of the four cities Key potential construction phase impacts will include: (i) air quality impacts from PME used on various components and fugitive dust from earthworks; (ii) noise impacts from PME, transportation of fill materials for land remediation works, and also blasting required for construction of the Yufeng road tunnel; (iii) water quality impacts resulting from, river dredging and embankment works, as well as potential impacts to surface and ground water from land remediated under output 3.1 from leachate containing high levels of suspended sediment and potentially other contaminants. The majority of impacts can be controlled with good site practice and standard mitigation measures. Noise impacts from blasting works, although short in duration, will cause unavoidable impacts. Clear communication channels with local residents and businesses will be established to minimize inconvenience. Potential impacts to surface and ground water from land remediated under output 3.1 would be mitigated through the use of clay liners to contain leachate. Comprehensive leachate and groundwater monitoring programmes would be established to ensure the effectiveness of control measures Operational phase impacts would be largely beneficial. In particular, there will be substantial improvements in water quality, air quality, landscape and ecological value at the various land remediation sites included under output 3. Water and habitat quality in rehabilitated rivers and lakes will also be enhanced through the revegetation programme, ecological embankment construction, removal of polluted sediments and improved wastewater management. Potential negative noise impacts are expected from increased traffic on widened existing and newly constructed roads under output 4.3. However, these impacts can be controlled within relevant standards through implementation of common mitigation measures including imposition of speed limits along certain stretches of road, use of low-noise road surfaces, and providing double-glazing for properties close to the road alignments. Potential impacts to surface and ground water from land remediated under output 3.1 would be mitigated through the use of clay liners to contain leachate. Comprehensive leachate and groundwater monitoring programmes would be established to ensure the effectiveness of control measures Measures to avoid, minimize, and mitigate potential project impacts have been developed within the project EMP (Attachment 2). Meaningful public consultation has been conducted in accordance with PRC and ADB requirements. Public concerns have been integrated into the domestic FSR and project EMP. Public consultation will continue throughout project implementation. A project GRM has been developed and will be implemented at the county and site levels A CRVA was conducted for the project based on the projected climate changes assuming a project design life of years. Many of the project components and outputs will have significant positive effects and contributions to the climate change resilience of the project area. Key adaptation measures which have been included in the project design include revegetation, river habitat restoration, improved stormwater and wastewater management, enhanced wastewater treatment, promotion of sustainable transportation, and various structural measures to improve infrastructure resilience. 237

70 416. Based on the information presented in this EIA, and assuming full and effective implementation of the project EMP, training, and loan assurances, potential adverse environmental impacts are expected to be minimized and/or mitigated to within the standards applied in this EIA. 238

71 ATTACHMENT 1 OVERALL PROJECT IMPLEMENTATION PLAN Ta le : O erall Proje t I ple e tatio Pla I di ati e A ti ities Output : Ke i frastru ture a d SME fa ilities i o - oal i dustrial parks i proje t ities o stru ted Hega g.. I dustrial Park: Road i frastru ture a d SME fa ilities (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Luo ei I dustrial Park WWTP (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Pro ure goods (v) Co stru tio (vi) I spe tio, deli ery Ji i.. He gsha I dustrial Park: Road i frastru ture a d SME fa ilities (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Ji i Jigua Distri t WWTP i i dustrial park (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Pro ure goods (v) Co stru tio (vi) I spe tio, deli ery Qitaihe.. I dustrial Park: Road i frastru ture a d SME fa ilities (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks 216

72 I di ati e A ti ities (iv) Co stru tio (v) I spe tio, deli ery Shua g asha.. I dustrial park i frastru ture a d SME fa ilities (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Output. Re ediatio a d e iro e tal lea up fro i i g i pa ts i proje t ities i pro ed Hega g.. Re ediatio of ope pit i e (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Ji i.. He gsha astero k du psite re ediatio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Qitaihe.. Mi i g re ediatio a d e iro e tal reha ilitatio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Shua g asha.. Xiao isha astero k du psite re ediatio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks 217

73 I di ati e A ti ities (iv) Co stru tio (v) I spe tio, deli ery Output. I tegrated ur a i frastru ture a d ser i es i proje t ities i pro ed Hega g.. Hega g ri er reha ilitatio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Distri t heati g i pro e e t (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Road reha ilitatio, pu li, a d o - otorized tra sport (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Ji i.. He gsha ri ers a d lake reha ilitatio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. He gsha ur a rege eratio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery 218

74 I di ati e A ti ities.. He gsha roads (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Water suppl pipes, aste ater olle tio, a d drai age (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Ji i Water treat e t pla t No. upgradi g a d e pa sio (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Qitaihe.. Water treat e t pla ts upgradi g, ater suppl pipes (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery.. Sustai a le a d lea fuel pu li tra sport i pro e e ts (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Shua g asha.. Water suppl, aste ater olle tio, a d drai age (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks 219

75 I di ati e A ti ities (iv) Pro ure goods (v) Co stru tio (vi) I spe tio, deli ery.. Road o e tio s (i) E gi eeri g desig (ii) I ple e t RP (iii) Pro ure i il orks (iv) Co stru tio (v) I spe tio, deli ery Output : I lusi e apa it i usi ess de elop e t ser i es a d i tegrated proje t pla i g a d a age e t de eloped (i) Proje t a age e t support (ii) CDM (iii) CDM (iv) CDM (v) CDM (vi) CDM (vii) CDM (viii) CDM B. Ma age e t a ti ities Pro ure e t pla key a ti ities to pro ure o tra t pa kages E iro e t a age e t pla key a ti ities Ge der a tio pla key a ti ities Co u i atio strategy key a ti ities A ual a d/or idter re ie Proje t o pletio report CDM = apa ity de elop e t odule. Sour e: Asia De elop e t Ba k esti ates. 220

76 A May 2017 People s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project Attachment to the EIA: Environmental Management Plan Prepared by the Heilongjiang Provincial Government for the Asian Development Bank.

77 A 1. Introduction 1. This Environmental Management Plan (EMP) is developed for the Heilongjiang Coal-Rich Cities Redevelopment Project (the project) and defines all potential impacts of the project components and the mitigation measures and monitoring with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, information disclosure and public consultation including Grievance Redress Mechanism (GRM), procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the findings of the project environmental impact assessment (EIA), the domestic environmental impact statements (EIS) and environmental impact tables (EIT), technical studies and analyses by the project preparation technical assistance (PPTA) consultants, and ADB review mission discussions and agreements with the relevant government agencies. 2. The EMP will be reviewed and updated, as needed, at the end of the detailed design in order to be consistent with the final technical design. The final EMP, if updated, will be disclosed on the ADB project website and included in the Project Administration Manual (PAM). The EMP provides a list of environmental contract clauses that shall be included in all bidding and contract documents. The contractors will be made aware of their obligations to implement the EMP and to budget EMP implementation and monitoring costs in their proposals. 2. Institutional Responsibilities related to EMP implementation 3. As Executing Agency (EA), the Heilongjiang Provincial Government (HPG) will be responsible for the overall implementation and compliance with loan assurances and all requirements specified in the EMP. 4. HPG has designated Heilongjiang Development and Reform Commission (HDRC) and Heilongjiang Finance Department to guide and supervise the project preparation and implementation. 5. Four project cities (Hegang, Jixi, Qitaihe, and Shuangyashan) have established a Project Leading Group (PLG) respectively comprising of senior officials from relevant government agencies at municipal levels, to facilitate inter-agency coordination, and to resolve any institutional problems affecting project implementation at municipal, and district levels. 6. A Project Management Office (PMO) sits in the municipal DRC of each project city, will have the overall responsibility delegated by the city government for supervising the implementation of the EMP, coordinating the environment grievance redress mechanism (GRM) and reporting to ADB. The PMO will assign one of its full staff as EMP coordinator to take charge of (i) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans; (ii) coordinating the project level grievance redress mechanism (GRM); and (iii) coordinating implementation of the training and consultation plans defined in the EMP. 7. The local -level Project Implementation Units (PIUs), under the city governments, are shown in Table EMP-1. Each PIU will assign one staff to coordinate EMP implementation at local level, which will take charge of (i) coordinating the EMP 1

78 A implementation of the EMP; (ii) supervising the implementation of mitigation measures during project construction and operation (the PIU will hire construction supervision companies (CSCs)); (iii) act as local entry points to the GRM); (iv) report to PMO on EMP implementation progress; and (v) responding to any unforeseen adverse impact beyond those mentioned in the domestic EISs and EITs, the project EIA and the EMP. Table EMP-1: Details of PIUs and O&M Units Output Subcomponents PIUs O&M Unit Hegang HG 2.1 Green Food, Green Energy and High-Tech Industrial Park - Infrastructure and Business Support Facilities Hegang Economic Development Area Construction Limited Company Hegang Economic Development Area transfer O&M to different agencies: HG 2.2 HG 3.1 HG 4.1 HG 4.2 HG 4.3 Luobei County High-tech Graphite Based Materials and E-Mobility Industrial Park Infrastructure (WWTP) and Business Support Facilities Remediation of Open Pit Mine / Wasterock Dumpsite Rehabilitation Integrated River Rehabilitation and Cleanup from Mining and Ecosystems Based Adaption (Shitou River, Qianjin Creek, Heli River, Xiaoheli River) District Heating System Energy Efficiency Improvements Road rehabilitation, public and non-motorized transport improvements Liyun Investment & Development Ltd. Co. /Luobei County PMO Hegang Land Resources Bureau Hegang Water Affairs Bureau Hegang City Management & Administrative Enforcement Bureau Hegang City Management & Administrative Enforcement Bureau Water Supply: Hegang Sanli Water Affairs Limited Company; Road cleaning: different district governments based on the location; Road maintenance: Administrative Enforcement Bureau Heating pipelines: Hegang City Heating Company. To be decided and may outsource the operation Will be decided when the function of the land is confirmed. Hegang River Course and Small Reservoir Management Department Hegang City Management & Administrative Enforcement Bureau Road: Hegang City Public Transport Bureau Heating: Huisheng Water Supply and Heat Supply Ltd. Company; Jixi Drain pipes: Hegang Water Supply and Wastewater Management Department EMP 2

79 A Output Subcomponents PIUs O&M Unit JX 2.1 Hengshan District High- Tech Graphite Based Materials and E-Mobility Industrial Park - Infrastructure and Business Support Facilities Hengshan District PMO Administrative Office of Hengshan District Graphite Park JX 2.2 JX 3.1 JX 4.1 JX 4.2 JX 4.3 JX 4.4 JX 4.5 Jixi City Wastewater treatment and discharge infrastructure in the industrial park of Jiguan District Hengshan District Wasterock Dumpsite Remediation / Safe Closure and Management of Former Mines Hengshan District Integrated Lake and Rivers Rehabilitation and Ecosystems Based Adaptation (Hongqi Lake, Anle Gou Creek and Huangni Rivers) Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement (including plaza, facilities, residential environment upgrading) Hengshan District Beishan Road, Jiaotong Street and bypass bridge Urban Regeneration and Urban Infrastructure (water supply pipes, wastewater collection and rain water drainage) Jixi City Water No.3 treatment plant upgrading and expanding Qitaihe QH 2.1 Green Food and Pharmaceutical Biofermentation Industrial Park Infrastructure and Business Support Facilities QH 3.1 Mining Remediation and Environmental Rehabilitation QH 4.1 Water Treatment Plant Upgrading and Water Supply Distribution System Administrative Committee of Jiguan Non-public Scientific and Technological Enterprises Demonstration Park Hengshan District PMO Hengshan District PMO Hengshan District PMO Hengshan District PMO Jixi Lutong Municipal Engineering Ltd. Co. Jixi Water Supply Company Qitaihe Economic Development Area Administrative Committee Qitaihe Land Resources Bureau Qitaihe Water Affairs & Water Supply Company EMP 3 Administrative Committee of Jiguan Non-public Scientific and Technological Enterprises Demonstration Park Hengshan District Urban & Rural Construction Bureau Jixi Water Affairs Bureau Maintenance of the property will be outsourced by Hengshan District Government. Hengshan Education Bureau, Hengshan Civil Affairs Bureau, Hengshan Safety and Mine Bureau will be responsible for proper use of the facilities. Hengshan District Urban and Rural Construction Bureau Jixi Municipal Infrastructure Management Division Jixi Water Supply Company Qitaihe Economic Development Area Administrative Committee Transfer to Taoshan District Government Qitaihe Water Affairs & Water Supply Company (four departments)

80 A Output Subcomponents PIUs O&M Unit Replacement and Expansion QH 4.2 Sustainable and Clean Fuel Qitaihe Public Public Transport Transportation Improvements Company Shuangyashan SY 2.1 Industrial parks- Infrastructure and Business Support Facilities SY 3.1 Wasterock Dumpsite Remediation/ Safe Closure and Management of Former Mines SY 4.1 Urban Regeneration and Urban Infrastructure (Water Supply, wastewater collection and rain water drainage) SY 4.2 South Ring Road and Tunnel Shuangyashan Economic Development District Administrative Committee Jixian County Transportation Bureau (for road section in Jixian County Lingdong District PMO WS: Shuangyashan Water Supply Company WW & Drainage: Shuangyashan Municipal Facility Management Department South Ring Road: Shuangyashan Transport Bureau Qitaihe Public Transportation Company Shuangyashan Economic Development District Administrative Committee Jixian County Road Management Station (for road section in Jixian County Lingdong District Government WS: Shuangyashan Water Supply Company WW & Drainage: Shuangyashan Municipal Facility Management Department South Ring Road: Shuangyashan Transport Bureau Tunnel and Fly over: Shuangyashan City Construction Project Management Office Tunnel and Fly over: Shuangyashan Municipal Facility Management Department 8. Their capacity of PMOs of PIUs to implement the EMP, as well as the capacity of the O&M units to manage project facilities, will be strengthened through capacity building and training activities defined in the EMP. These will be supported by the loan implementation environmental consultant (LIEC). 9. Loan Implementation Environmental Consultant. Under the loan implementation project management consultancy services, a national environmental specialist (30 man-months) will be engaged under the project management and capacity building component. The LIEC will advise the PMOs, PIUs, CSCs and contractors on all aspects of environment and monitoring for the project. The LIEC will: (i) (ii) (iii) assess the project components environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-5; assist PMO and PIUs to update the EMP and environmental monitoring program; review the site-specific EMPs prepared by contractors; EMP 4

81 A (iv) (v) (vi) (vii) (viii) (ix) (x) assist the PMOs and PIUs to establish a Grievance Redress Mechanism (GRM), and provide training for all GRM access points; Conduct regular EMP compliance assessments, undertake site visits as required (together with PMO-ES), identify any environment-related implementation issues, propose necessary corrective actions, reflect these in a corrective action plan; Assist in preparation of environmental part of regular project progress reports; and help improve O&M plan if necessary; provide training to PMOs, PIUs and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance with the training plan defined in the EMP (Table EMP-6); assist the PMOs and PIUs in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities, GRM; assist the FIs establishment of ESMS and provide ESMS trainings; assist the FIs preparation of annual ESMS implementation report. 10. Environmental monitors (package CS-4). An external environment monitor (EEM) will be contracted by the LPMOs/IAs through CQS to oversee EMP implementation and monitoring.. The terms of references of external environment monitoring consultant (EEM) are attached as Appendix 1 of the EMP. (i) Contract a certificated environmental monitoring station or company (EMS) to conduct physical indicator monitoring as defined in the monitoring plan of Table EMP- 7; (ii) (iii) (iv) (v) Conduct independent verification of EMP implementation status and environmental to verify that issues reported in the internal environmental monitoring report and semiannual environmental progress report in compliance with ADB s safeguard policy statement (2009) and PRC regulations; Make recommendations to resolve any issues or problems on implementing the EMP and provide advice to city PMOs and PIUs; Compare the predicted with actual environmental impacts, assess the effectiveness of mitigation measures, and suggest enhancement measures, as required; and Submit external environmental monitoring verification report to ADB and HLG with quality acceptable to ADB on semiannual basis during project implementation period in both Chinese and English. 11. Construction Contractors. Construction contractors will be responsible for implementing relevant mitigation measures during construction under the supervision of the CSCs and PIUs. Contractors will develop site-specific EMPs based on the project EMP and will assign a person responsible for environment, construction site health and safety. After project completion, environmental management responsibilities will be handed over to the operators of the facilities. 12. Construction Supervision Companies (CSCs) will be selected through the PRC bidding procedure by the PIUs. The CSCs will be responsible for reviewing the sitespecific EMPs prepared by contractors; supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) conduct regular site inspection; (ii) supervise the contractor s EMP implementation performance; and (iii) prepare the contractor s environmental management performance section in monthly project progress reports submitted to the PIUs. EMP 5

82 A 13. O&M Units. During the operation phase, the local EPB will periodically verify and monitor the environmental management and implementation of mitigation measures by the operators (O&M Units) of the project components. These O&M units are listed in the Table EMP-1. The cost of mitigation measures in this phase will be borne by the relevant O&M Units. 3. Summary of Potential Impacts and Mitigation Measures 14. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified in the EIA as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table EMP- 2 to Mitigation or safeguard includes two types of environmental measures. Those that will permanently become part of the infrastructure such as noise reduction materials and odor removal facilities for the wastewater treatment plants. These will need to be included in the design of the facility by the LDIs, otherwise they won t be built. The costs of building and maintaining these systems have already been included in the infrastructure construction and operating costs and therefore will not be doublecounted as part of the EMP costs. 16. Those that are temporary measures particularly during the construction stage, such as dust suppression by watering and wheel washing, the use of quiet/low noise powered mechanical equipment and temporary noise barriers, flocculants used to facilitate sedimentation of suspended solids in construction site runoff, etc. These will need to be included in the tender documents, otherwise they not budgeted by the contractor and they won t be done. The costs for implementing these measures are included in the EMP. These budgets for implementing these measures in this project add up to the amount of $ 3.41 million for Hegang, $2.29 million for Jixi, $3.11 million for Qitaihe and $3.03 million for Shuangyashan respectively for the construction stage and $0.39 million for Hegang, $0.26 million for Jixi, $0.35 million for Qitaihe and $0.34 million for Shuangyashan respectively for the operation stage. The budget for construction stage represents the estimated amount above the business as usual scenario, which the contractors would put into their bid packages to satisfy the environmental contract clauses for implementing the mitigation measures in the EMP. This amount therefore will already be included in the construction contracts. The amount of operation stage would come out of the budgets of the O&M Units. 17. The mitigation measures defined in the EMP will be (i) checked and where necessary re-designed by the LDIs; (ii) incorporated into tender documents (where appropriate), construction contracts and operational management plans; and (iii) implemented by contractors, PIUs or PMO, as relevant. The effectiveness of these measures will be evaluated based on site supervisions by the CSCs, and through EMP compliance verification conducted by the PMO, PIUs, EEM, and LIEC. EMP 6

83 A Item Detailed Design Stage Design of roads (Component 2.1 and 4.3) Table EMP-2: Summary of Potential Impacts and Mitigation Measures during Design and Pre-construction Stage Potential Impact and/or Implementing Supervising Issues Mitigation Measures Entity Entity Safety of pedestrians and cyclists Noise disturbance -Design must ensure public health and safety with clearly marked and separate lanes for pedestrians and cyclist, and ensure barrier-free design for disabled people. -Ensure the noise reducing pavement will be employed for the section of Yunfeng tunnel and Xinxing Avenue near residential buildings; -Ensure the noise insulation window will be employed for the residents affected by Gongqu Bridge and South Ring road. Source of Funds LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts Design of river rehabilitation and flood risk management (Component 4.1) Extreme weather event due to climate change Embankment Disposal of dredged sediment Extreme storm events Impacts on downstream -Consider potential impacts from extreme weather events due to climate change in designing road surface and drainage system -Technical design of embankment shall be adequate and stable enough to withstand the strong force of heavy storm water flow but at the same time maximize the adoption of ecofriendly embankment designs. -Determine the temporarily storage site with design of drainage system and preliminary treatment system for the wastewater. Technical design of the food control function of the river channels shall take into consideration extreme storm events due to climate change. -Additional assessments on possible flood impacts and consultations with downstream communities will be conducted. If necessary, appropriate non-structural measures to mitigate flood risks will be introduced, implemented and supported by the concerned capacity development component of output 5, such as early warning systems and disaster management response mechanisms as required. LDI PMO, LIC LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts Design of utilities pipeline (Component 4.2) Pipe burst Technical design and construction method of the utilities pipelines must be adequate to prevent pipe burst. LDI PMO, LIC Included in design contracts Design of wastewater Odor removal Technical design of the WWTPs shall include facility and LDI PMO, LIC Included in EMP 7

84 A Item Detailed Design Stage treatment plant (Component 2.1) Design of water treatment plant upgrading (Component 4.2) Design of waste rock dump site rehabilitation (Component 3) Potential Impact and/or Issues Buffer distance Operational noise Water standard Sludge disposal quality-effluent Inadequate treatment Noise from WTPs WTP sludge disposal Pollution from leachate Mitigation Measures equipment to remove odor generated during plant operation. Technical design of the Jiguan WWTP shall include an environmental buffer distance of 100 m to the nearest environmental protection target for the potential negative environmental impact. Technical design of the WWTPs shall (1) contain the operational noise from pumps, blowers and other noisy equipment with proper acoustic design of these facilities. Technical design of the WWTPs shall achieve the desired treatment to meet Class 1A discharge standard and safety of plant operation, with dual power supply to avoid interruption to plant operation due to power failure. Technical design of the WWTPs shall include temporary sludge drying beds to produce sludge with water content of lower than 60%. -Technical design of the WTPs must achieve the desired PRC supply standards with dual power supply to avoid interruption to plant operation due to power failure. -Technical design of the WTPs must be able to contain the operational noises from pumps and other noisy equipment with proper acoustic design of these facilities. -Ensure proper sludge processing facilities to meet PRC sludge quality and moisture level standards; -Ensure the Qitaihe Taoshan sanitary landfill and Jixi Baochuan sanitary landfill is ready to receive WTP sludge. -Conduct waste rock composition test and analysis before detailed design. If any indicators exceed the thresholds defined in the Hazardous Waste Identification Standard (GB ), the waste rock is defined as Category II industrial waste, if not, it is defined as Category I industrial waste. The technical design shall comply with the Standard for pollution control of general industrial solid waste storage and disposal sites (GB ) for category I or category II industrial waste depending on the composition analysis results; Implementing Entity Supervising Entity Source of Funds design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts EMP 8

85 A Item Detailed Design Stage Potential Impact and/or Issues Underground fire Safety Mitigation Measures -Conduct soil quality test at the proposed site to check the pollution conditions. -Conduct groundwater quality monitoring three times at least, covering wet season, dry season and normal season. The pollution status of groundwater will be further assessed. Measures to prevent potential contamination and harm to people and water users will be designed and implemented. Policy dialogue with the government and responsible stakeholders will be carried out during project implementation to promote restoration of groundwater quality to acceptable levels if exceedance of groundwater quality standard is detected. -Drainage system shall be designed to divert the surface runoff timely in order to avoid generation of leachate and landslide. -The sulfur content of waste rock will be tested. If the sulfur content is greater than 1.5%, measures to prevent spontaneous combustion shall be designed in line with the Standard for Pollution Control on Storage and Disposal Site for General Industrial Solid Waste (GB ). - Conduct detailed geological survey and ensure design the profile of the site (e.g. height and slope angles) to ensure that the final structure is safe and stable against flood, erosion and subsidence Implementing Entity Supervising Entity Source of Funds LDI PMO, LIC Included in design contracts LDI PMO, LIC Included in design contracts Pre-construction stage Institutional strengthening Lack of environment management capacities within PMO Lack of environment management capacity within the PIUs -PMO to appoint qualified environmental specialist on its staff (PMO-ES); -PMO to contract loan implementation consultant (LIC); -LIEC to conduct environment management training -Each PIU to appoint qualified environment specialist on its staff; -LIEC to conduct environment management training. PMO ADB Included in loan implementation consulting services and IA operation budget PMO ADB Included in loan implementation consulting EMP 9

86 A Item Detailed Design Stage EMP update Grievance mechanisms redress Tender documents and works contracts Potential Impact and/or Issues External environment monitor (EEM) Lack of environment management capacities within the O&M units EMP shall reflect final technical design Lack of capacities of handling and resolving complaints Environmental for all tender clauses Construction traffic Construction vehicles causing traffic congestion Mitigation Measures -PMO to contract EEM to conduct independent verification of the project s environment performance and compliance with the approved EMP. -LIC to conduct environment management training -Review mitigation measures defined in this EMP, update as required to reflect the final detailed design, disclose updated EMP on project website, and include updated EMP in the bid documents -establish a GRM with complaint hotline, appoint a GRM coordinator within PMO; -brief and provide training to GRM access points; -disclose GRM to affected people before construction begins at the main entrance to each construction site; -maintain and update a Complaint Register to document all complaints. -put into tender documents and works contracts the respective environmental clauses in this EMP Plan transport routes for construction vehicles and specify in tender documents to forbid vehicles from using other roads and during peak traffic hours Implementing Entity Supervising Entity Source of Funds services and IA operation budget PMO ADB Included in loan implementation consulting services and IA operation PMO, O&M units, LIC PMO, assisted by LIEC budget ADB Included in loan implementation consulting services and IA operation budget ADB Included in loan implementation consulting services PMO, PIU, LIEC EEM, ADB Included in loan implementation consulting services and IA operation budget PIU, tender agent, LIEC PIU, LIEC, tender agent, local traffic management PMO, EEM Included in tendering agent s contract PMO, EEM Included in tendering agent s EMP 10

87 A Item Detailed Design Stage Potential Impact and/or Issues Mitigation Measures Implementing Entity authority Supervising Entity Source of Funds contract Table EMP-3: Summary of Potential Impacts and Mitigation Measures during Construction Stage Item Potential Impact and/or Issues Mitigation Measures Implementing Entity Supervising Entity General Mitigation Measures Applicable to All Components Impacts on air Dust (TSP, PM10) -provide dust masks to construction workers,; Contractor CSC, PIU, quality -build access and hauling roads at sufficient distance from residential PMO, LIEC, areas, particular, from local schools and hospitals; EEM -assign haulage routes and schedules to avoid transport occurring in the central areas, traffic intensive areas or residential areas; -Spray water regularly on unpaved haul roads and access roads (at least once a day) to suppress dust; and erect hoarding around dusty activities; -cover material stockpiles with dust shrouds or tarpaulin. For the earthwork management for backfill, measures will include surface press and periodical spraying and covering. The extra earth or dredged materials should be cleared from the project site in time to avoid long term stockpiling; -minimize the storage time of construction and demolition wastes on site by regularly removing them off site; -Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; -Keep construction vehicles and machinery in good working order, regularly service and turn off engines when not in use; -Vehicles with an open load-carrying case, which transport potentially dust-producing materials, shall have proper fitting sides and tail boards. Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with s strong tarpaulin; -In periods of high wind, dust generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be applied in the vicinity of sensitive receptors, such as schools, kindergartens and hospitals; -Site all dredged sediment temporary storage or disposal facilities at Source of Funds Included construction contract in EMP 11

88 A Item Noise Potential Impact and/or Issues Noise from PME and vehicles Mitigation Measures least 50 m from the nearest air quality protection target. -To avoid odor impacts caused by sediment dredging, transport dredged sediment in closed tank wagons to contain odor and prevent scattering along the way; -Unauthorized burning of construction and demolition waste materials and refuse shall be subject to penalties for the Contractor, and withholding of payment. -Noise levels from equipment and machinery shall conform to the PRC standard for Noise Limits for Construction Sites (GB ) and the WBG EHS standards, and properly maintain machinery to minimize noise; -Equipment with high noise and high vibration shall not be used near village or urban areas and only low noise machinery or the equipment with sound insulation is employed; -sites for concrete-mixing plants and similar activities will be located at 300 m away from the nearest noise protection target; -Temporary noise barriers or hoardings shall be installed around the equipment to shield residence when there are residence within 20 m of the noise source; -No construction shall be allowed between the night time hours of 22:00-06:00; -Regularly monitor noise levels at construction boundaries. If noise standards are exceeded by more than 3 Db, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation. -Provide the construction workers with suitable hearing protection (ear muffs) according to the worker health protection law of the PRC; -Control the speed of bulldozer, excavator, crusher and other transport vehicles travelling on site, adopt noise reduction measures on equipment, step up equipment repair and maintenance to keep them in good working condition; Limit the speed of vehicles travelling on site (less than 8 km/h); -Maintain continual communication with the villages and communities near the construction sites. -Construction noise will be examined by EEM against PRC regulation and World Bank Group EHS guidelines, if non-compliance is detected, further noise mitigation measures will be designed and implemented during construction and operation phases, including as Implementing Entity Supervising Entity Contractor CSC, PIU, PMO, LIEC, EEM Source of Funds Included construction contract in EMP 12

89 A Item Potential Impact and/or Issues Mitigation Measures necessary i.e. improved windows, and noise barriers. Implementing Entity Supervising Entity Source of Funds Vibration Excessive vibration, especially at night Surface water Solid waste, earthwork, soil erosion protection Uncontrolled wastewater and muddy runoff from construction sites and work camps. C&D waste, municipal solid waste, soil erosion, inadequate spoil storage, disposal and borrow site operation -Operation between 06:00-20:00 only and reach an agreement with nearby residents regarding the timing of heavy machinery work, to avoid excessive vibration impacts. -Portable toilets and small package wastewater treatment facilities shall be provided on construction sites and construction camps for the workers and canteens; if there are nearby public sewers, interim storage tanks and pipelines will be installed to convey wastewater to those sewers; -Construction machinery shall be repaired and washed at special repairing shops. No onsite machine repair and washing shall be allowed; -Storage facilities for fuels, oils, and other hazardous materials will be within secured areas on impermeable surface, and provided with bunds and cleanup kits. -The contractors fuel suppliers must be properly licensed, follow proper protocol for transferring fuel, and must be in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT ); -Material stockpiles will be protected against wind and runoff waters which might transport them to surface waters; -Spills shall be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated. Records must be handed over without delay to the PMO and project city EPB. -Establish enclosed waste collection points on site, with separation of domestic waste and construction & demolition (C&D) waste; -Set up centralized domestic waste collection point and transport offsite for disposal regularly by sanitation department; -Maximize the reuse of earth cut materials and C&D waste for filling and foundations of other construction works specified by municipal and planning departments, or transport in enclosed containers to designated C&D landfill site; -Confirm location of the borrow pit and temporary spoil storage and final disposal sites; -Develop borrow pit and spoil disposal site management and Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Included construction contract Included construction contract Included construction contract in in in EMP 13

90 A Item Impact ecological resources on Occupational health and safety Potential Impact and/or Issues Loss of habitats and wildlife Construction site sanitation, pest control Mitigation Measures restoration plan, to be approved by responsible authority; obtain permit for the clearance of excavated earthworks; -Construction intercepting ditches and drains to prevent runoff entering construction sites, and diverting runoff from sites to existing drainage; -Construction hoarding and sedimentation ponds to contain soil loss and runoff from the construction sites; -Limit construction and material handing during periods of rains and high winds; -Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on; -Stockpiles shall be sort-termed, placed in sheltered and guarded areas near the actual construction sites, covered with clean tarpaulins, and sprayed with water during dry and windy weather conditions; -All earthwork disturbance areas shall be stabilized with thatch cover within 30 days after earthworks have ceased at the sites; -immediately restore, level and plant landscape on temporary occupied land upon completion of construction works; - Siting of temporary works areas and access routes in low value habitats - Reinstatement of temporary works areas - All revegetation works to use native plant species -Each contractor shall provide adequate and functional systems for sanitary conditions, toilet facilities, waste management, labor dormitories and cooking facilities. -Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse piles and timely remove solid waste. -Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year. -Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection. -Work camp wastewater shall be discharged into the municipal sewer system or treated on-site with portable system. Implementing Entity Supervising Entity Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Source of Funds Included construction contract Included construction contract in in EMP 14

91 A Item Community Health and Safety Physical cultural resources Potential Impact and/or Issues Personal Protective Equipment (PPE) Food Safety Disease prevention and safety awareness Social conflicts Temporary traffic management Information disclosure Access to construction Mitigation Measures -Provide safety hats and shoes to all construction workers and enforce their use by the workers. -Provide goggles and respiratory masks to workers doing asphalt road paving and tunnel blasting. -Provide ear plugs to workers working near noisy PME. -Inspect and supervise food hygiene in canteen on site regularly. -Canteen workers must have valid health permits. -If food poisoning is discovered, implement effective control measures immediately to prevent it from spreading. -All contracted labor shall undergo a medical examination which should form the basis of an (obligatory) health/accident insurance and welfare provisions to be included in the work contracts; -The contractors shall maintain records of health and welfare conditions for each person contractually engaged; -Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents; -Specify (by the PIUs and contractors) the person responsible for health and epidemic prevention responsible for the education and propaganda on food hygiene and disease prevention to raise the awareness of workers. -Civil works contracts shall stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men, (iii) pay equal wages for work of equal value, and to pay women s wages directly to them; and (iv) not employ child or forced labor. -A traffic control and operation plan will be prepared together with the local traffic management authority prior to any construction. -The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance. -Inform residents and businesses in advance through media of the construction activities, given the dates and duration of expected disruption. -Place clear signs at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous Implementing Entity Supervising Entity Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, Source of Funds Included construction contract Included construction contract Included construction contract Included construction contract Included construction contract Included construction contract Included construction in in in in in in in EMP 15

92 A Potential Impact and/or Issues Item Mitigation Measures materials, excavations etc. and raising awareness on safety issues. -All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate. Utility services -Assess construction locations in advance for potential disruption to interruptions services and identify risks before starting construction; -If temporary disruption is unavoidable, develop a plan to minimize the disruption in collaboration with relevant local authorities such as power company, water supply company and communication company, and communicate the dates and duration in advance to all affected people. Destruction of cultural -Contractor shall comply with PRC's Cultural Relics Protection Law relics in stream bed and Cultural Relics Protection Law Implementation Regulations if and soil such relics are discovered, stop work immediately and notify the relevant authorities, adopt protection measures and notify the Security Bureau to protect the site. Specific Sector Related Impacts during Construction Stage Waste rock dump Leachate seepage into site rehabilitation groundwater (Component 3) -All remediated sites would be lined with compacted clay and/or geomembrane to prevent leachate entering groundwater or surface waters. To further reduce permeability, fill would be layered with bands of clay. Fill would be capped with a 300 mm thick sealing layer formed from clay material compacted to greater than 80 % standard proctor density. The sealing layer will be covered with top soil, with a total thickness of 400 mm, to protect the sealing layer and offer sufficient water holding capacity to support the vegetation and reduce direct infiltration. Implementing Entity Supervising Entity EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Source of Funds contract Included construction contract Included construction contract Included construction contract in in in Risk of subsidence - Monitoring of both the leachate and groundwater surrounding the sites will be conducted in the wet and dry seasons to ensure the effectiveness of this control measure. Leachate monitoring will be conducted by installing DN100 polyvinyl chloride (PVC) pipes into the site as it is being filled. -Fill compaction would be undertaken to reduce void ratios in the fill, which minimizes subsidence, and reduces the risk of underground fires. It is typically achieved through regulating the size of waste fragments used for fill, and applying fill to the site in layers, with fill placement by scrapers or trucks and the use of roller based compacting plant. Contractor CSC, PIU, PMO, LIEC, EEM Included construction contract in EMP 16

93 A Item River rehabilitation (Component 4.1) Potential Impact and/or Issues Odor from dredged sediment Disposal of dredged sediment Mitigation Measures -Conduct filed rolling test to check whether the compacting performance comply with design; -Installation of subsidence monitoring pile and conduct continuous monitoring; -Restrict any residents and livestock s access to the construction sites. -All dredged sediment storage or disposal facilities will be sited at least 50 m from the nearest air quality sensitive receptor. -Dredged sediment will be transported in closed tank wagons to contain odor and prevent leakage during transit. -The dredged materials should be cleared from the project site in time to avoid long term stockpiling; - To address potential contamination of dredged sediments, a precautionary measure assuming the potential exceedance of pollutant levels will be adopted, requiring the double lining of the soil surface of all (temporary) disposal sites to prevent contaminating the soil and groundwater, and treatment and testing of heavy metals and pesticides of the supernatant water prior to discharge.; -At Hegang, all dredged material will be disposed of at the local municipal landfill, with dredged material compliant with relevant standard for this disposal method (GB/T ). At Jixi, dredged material will be reused for landscaping works. Here, soil quality and leaching tests will be conducted on the dried dredged sediment prior to re-use. Dredged sediment failing the leaching test will not be re-used. The final disposal plan will be reviewed against the sediment quality test results. Implementing Entity Supervising Entity Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Source of Funds Included construction contract Included construction contract in in Pollution from dewatering water - River dredging (using a backhoe) and bank reconstruction works will be conducted in the dry by constructing a coffer dam around the works area. -Temporary storage of dredged sediments will be held in clearly demarcated storage sites for dewatering. -Wastewater from dewatering sites will be carefully controlled: water draining from these sites will be treated by sedimentation in consolidation tanks, with wastewater from these tanks returned back to the river only when suspended sediments (SS) are less than 20 Contractor CSC, PIU, PMO, LIEC, EEM Included construction contract in EMP 17

94 A Item Potential Impact and/or Issues Mitigation Measures mg/l (meeting Class I requirement of GB ). Implementing Entity Supervising Entity Source of Funds Roads, flyover and tunnel (Component 2.1 and 4.3) Blasting noise and vibration Asphalt smoke -The maximum weight of explosives can be used at the same time is 67.1 kg for tunnel construction to ensure compliance of with vibration standards at the nearest sensitive receptor; -Construction activities of Yunfeng tunnel shall be properly scheduled considering the life style of elderly people. -site asphalt mixing and concrete attaching stations at least 300 m downwind of the nearest air quality protection target; -equip asphalt, hot mix and batching plants with fabric filters and/or wet scrubbers to reduce the level of dust emissions. Contractor CSC, PIU, PMO, LIEC, EEM Contractor CSC, PIU, PMO, LIEC, EEM Included construction contract Included construction contract in in Item Operation Stage Luobei Industrial Park WWTP (Hegang) subcomponent and Jiguan Industrial Park WWTP (Jixi) subcomponent (Component 2.2) Table EMP-4: Summary of Potential Impacts and Mitigation Measures during Operation Stage Potential Impact and/or Issues Failure to control influent quality of wastewater at the new WWTPs Failure to operate the new WWTPs to meet design and discharge standard Odor at WWTP Improper management sludge Mitigation Measures -Ensure proper monitoring of pre-treatment system in place at all wastewater contributing industries; -Take action to enforce pre-treatment standards on all industries in the industrial park. -Ensure proper O&M systems are in place and equipment in good working order and also ensure backup power system available; -Provide operational training to WWTP staff. -Ensure that the WWTP deodorization facilities are operating properly; -Strengthen operation management -WWTP sludge should be regularly tested for heavy metals and other hazardous constituents as well as moisture content; -If sludge is non-hazardous, beneficial reuse will be explored. Until reuse plan can be developed, sludge that is non-hazardous and meeting PRC standards for Implementing Entity WWTP operator WWTP operator WWTP operator WWTP operator Supervising Entity Industry park management committee, PMO, EPB Industry park management committee, PMO, EPB Industry park management committee, PMO, EPB Industry park management committee, PMO, EPB Source of Funds Connected companies, EPB budget (for supervision and monitoring) WWTP operation budget WWTP operation budget WWTP operation budget EMP 18

95 A Item Potential Impact and/or Issues Risk of sewage leakage and pollution to groundwater Risks of accidental discharge, overload, emergency preparedness and response Wastewater (Luobei WWTP) reuse Occupational health and safety Mitigation Measures moisture content will be disposed at Baochuan sanitary landfill site of Jixi; -Ensure moisture content of the sludge complies with PRC s Disposal of Sludge from Municipal Wastewater Treatment Plant Quality Standard for Co-landfilling (GB/T ); -If the sludge is identified as hazardous waste sludge, it should be shipped to hazardous waste disposal center in Heilongjiang province for centralized disposal. - The impervious properties shall be no greater than cm / sec. HDPE film and anti-seepage concrete structure will be used. Other areas (i.e., offices area, internal roads) are considered general impermeable zone. The impermeability shall not be greater than cm / sec. A clay layer with thickness of 150 mm will be used for infiltration prevention. -establish a long-term groundwater monitoring system and emergency plan, monitoring data will be collected through wells to document any pollution incidents and determine the extent and range of such incidents to plan emergency measures and remedial actions; -Regular maintenance procedures for wastewater treatment and discharge facilities across the whole plant will be established. -Provision of dual power supply; -Spare parts of key components; -Regular inspection and proper maintenance of the WWTP; -Develop and implement an emergency preparedness and response plan for the WWTP. -Ensure 100% wastewater reuse by the project completion. -Use safety shoes or boots with non-slip soles; -Wear personal protective equipment and chemical resistant clothing to avoid exposure of skin or eyes to Implementing Entity WWTP operator WWTP operator WWTP operator WWTP operator Supervising Entity Industry park management committee, PMO, EPB Industry park management committee, PMO, EPB Industry park management committee, PMO, EPB Industry park management committee, Source of Funds WWTP operation budget WWTP operation budget WWTP operation budget WWTP operation budget EMP 19

96 A Item Water treatment plant upgrading subcomponents (Jixi No. 3 WTP, Qitaihe Shingle WTP and Water &Sewage Company s WTP Potential Impact and/or Issues Water Source Protection Zone Mitigation Measures corrosive and/or polluted solids, liquids or vapors; -Post safety instructions in each workshop regarding the storage, transport, handling or pouring of chemicals; -Check electrical equipment for safety before use; verify that all electric cables are properly insulated; take faulty or suspect electrical equipment to a qualified electricity technician for testing and repair; -Wear safety goggles in all cases where the eyes may be exposed to dusty, flying particles, or splashes of harmful liquids; -Wear respiratory mask in the sludge dewatering and deodor workshops and when moving and transporting sludge; -Obey all safety instructions concerning entry into confined spaces, e.g., check atmosphere for oxygen or for poisonous gases, use respiratory protection equipment if needed, have a co-worker stand guard in case of need for help, etc; -All workers will undergo periodic examinations by occupational physician to reveal early symptoms of possible chronic effects or allergies; and -Health and safety will be incorporated into the regular staff training programs. -Protection measures will be formally delineated for water source protection zones, including: (i) a Prohibited Zone (Grade I Zone), closest to the water source; and (ii) a Protection Zone (Grade II Zone), adjoining the Prohibited Zone. -Unauthorized personnel will be forbidden from entering the prohibited zone (to be achieved by fencing the zone (surrounding the water intake on the source water body, and providing signage notifying the public of water source protection zone). -In the Grade II zone, no new buildings or construction projects will be allowed that may drain pollutants to the water body. Implementing Entity Local EBP WAB, Supervising Entity PMO, EPB Jixi and Qitaihe government Source of Funds Sludge from WTPs -Sludge from WTPs will be shipped to the Qitaihe WTP operator EPB WTP operation Local EBP WAB, EMP 20

97 A Item River rehabilitation and flood control subcomponents (Component 4.1) Potential Impact and/or Issues Occupational health and safety Maintenance of vegetation and landscape Pollution from storm water and solid waste Embankment stability Mitigation Measures Taoshan Sanitary Landfill site and Baochuan Sanitary Landfill Site respectively for disposal. -Chemicals will be transported and managed in compliance with relevant state regulations on hazardous chemical substance management; -The chlorination room and chemical storage area will be equipped with automatic alarms, which will be triggered by chlorine dioxide leakage (Qitaihe WTPs) /liquid chlorine(jixi No.3 WTP); -The duty room will be equipped with gas masks, oxygen breathing apparatus and other rescue materials; -An emergency response plan will be developed and implemented. The plan will inform staff about the characteristics of chlorine dioxide/liquid chlorine and hydrochloric acid, describe potential health hazards, and define accident prevention measures and an evacuation plan. -Daily maintenance: manage vegetation including pruning, weeding and replacement of dead or dying trees and shrubs; -Pest control: the guiding principle will be prevention first followed by integrated treatment, no pesticide to avoid water pollution. -Routinely collect and properly dispose litter and debris from sidewalks, driveways, and parking lots near rivers and channels. -Install litter traps along waterways (small floating mesh traps attached to one bank) and regularly empty these. -Clean the roadside catch basins before rainy season to avoid surface water pollution by storm water runoff flushing debris and silt. -Regularly empty garbage bins and containers placed along the river channels; - Maintain storm-water retention facilities along the roads nearby the rivers. - Inspect all river embankment stabilization works for physical integrity. If signs of failure are discovered, a Implementing Entity Supervising Entity Source of Funds budgets O&M Unit PMO, IA O&M Unit budget O&M unit PMO, IA O&M unit operation budget O&M unit PMO, IA O&M unit operation EMP 21

98 A Item Road subcomponents (Component 2.1 and Component 4.3) Potential Impact and/or Issues Traffic noise Vehicle emissions Vegetation Traffic Safety Spills of dangerous goods Mitigation Measures repair program will be implemented immediately -Conduct follow up noise monitoring according to the domestic EIAs and this EMP (see Table EMP-5); If required, install additional sound insulation windows at affected protection targets- -Coordinate with traffic authority to limit the speed within 30 km/h at the entrance of Yunfeng tunnel; -Coordinate with traffic authority to limit the speed within 40km/h at the section near Anshan Community for south ring road; -Acoustic environment will be monitored at the sensitive receptors during environmental acceptance inspection organized by EPB and the first year of operation by EEM. If non-compliance against the PRC and World Bank Group EHS guidelines is detected, further noise mitigation measures will be i.e. improved windows, and noise barriers implemented. -Conduct periodic examination of emission of vehicle exhaust pollutants for each vehicle, including public buses, in accordance with PRC regulation (such as GB ); -Refuse registration to vehicles with excessive emissions; Routinely inspect and properly maintain all roadside trees, slope stabilization sites, and landscaping vegetation. Keep at least 98% of survival rate. -conduct traffic audit and separate traffic safety awareness campaigns. -Ensure that all trucks carrying hazardous materials are marked according to PRC norms. -Enforce traffic controls, and set speed limits for trucks carrying hazardous material. -Prepare a rapid spill response and clean up protocol so that in the event of a spill the appropriate people and Implementing Entity O&M unit; Local traffic authority EPB and traffic policies Supervising Entity Source of Funds budget PMO, IA O&M unit operation budget IA EPB and traffic policies operation budget O&M unit PMO, IA O&M unit operation budget O&M unit, PMO, IA Traffic policies traffic police, operation LIC budget, Package CS-1 budget O&M unit PMO, IA O&M unit operation budget EMP 22

99 A Item Waste rock dump site rehabilitation (Component 3) Potential Impact and/or Mitigation Measures Issues equipment are quickly notified and action can be taken. Vegetation -Daily maintenance: manage vegetation including pruning, weeding and replacement of dead or dying trees and shrubs; -Pest control: the guiding principle will be prevention first followed by integrated treatment, no pesticide to avoid water pollution; -Maintain the drainage facilities and ensure the storm water Risk of subsidence -conduct continuous subsidence monitoring; -restrict development of other land use before stability. -Significant signs should be posted in the site to prevent residents access before stable. -Daily maintenance should be conducted until stable. Air quality -All remediation sites will be examined on existing and future air emissions as well as on the risk of combustion from sulphur containing gases emitted from the sites. The site will be caped to prevent underground fire, Pollution risk on -All remediated sites would be lined with compacted clay groundwater and/or geomembrane; -Conduct period groundwater quality monitoring. Electric Bus (Component 4.3) Disposal of used batteries -The used batteries will be returned to the manufacturer under the regulation of Electric Vehicle Power Battery Recycling Technology Policy (2015). Implementing Entity Supervising Entity Source of Funds O&M unit PMO, IA O&M unit operation budget O&M unit PMO, IA O&M unit operation budget O&M unit PMO, IA O&M unit operation budget O&M unit PMO, IA O&M unit operation budget O&M unit PMO, IA O&M unit operation budget EMP 23

100 A 4. Monitoring and Reporting 18. Monitoring will include project readiness monitoring (to be conducted by the PMO with support of the local Environmental Monitoring Station (EMS) or certificated monitoring company to be contracted by the EEM; as well as by the contractors who will be required to conduct frequent noise and air quality monitoring around construction sites), and EMP compliance monitoring to verify EMP compliance during project implementation. Monitoring and reporting arrangements defined for this project are described below. 19. Assessment of project readiness. Before construction, the EEM will assess the project s readiness in terms of environmental management based on a set of indicators (Table EMP-5) and report it to ADB and the PMO. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met. Table EMP-5: Project Readiness Assessment Indicators Indicator Criteria Assessment EMP update The EMP is updated after technical detail Yes No design as needed, approved by ADB, and disclosed on the project website Compliance with loan The borrower complies with loan covenants Yes No covenants related to project design and environmental management planning Public involvement Meaningful consultation completed Yes No effectiveness GRM established with entry points Yes No Environmental supervision in place Bidding documents and contracts with environmental safeguards EMP financial support Environment specialist appointed by PMO Yes No Environment specialist appointed by PIUs Yes No EEM/EEM contracted by PMO Yes No Contractors have site-specific EMPs Yes No EEM contracted by LPMOs/IAs Yes No Environmental requirements of loan assurance and EMP are incorporated in bidding documents Environmental requirements of loan assurance and EMP are included in contract documents The required funds have been set aside by IAs, PMOs, PIUs, contractors and the O&M units to support the EMP implementation 20. Environmental impact monitoring. Table EMP-4 shows the environmental impact monitoring program specifically designed for this project. Environmental monitoring of air quality, noise and water quality during construction and operation will be conducted by the EMS. The cost for waste rock composition analysis will be covered by the design contract of LDI. 21. The environmental monitoring results will be compared with relevant PRC performance standards (Table EMP-6), and non-compliance with these standards will be highlighted in the monitoring reports. Monitoring results will be submitted by the EMS to PIU, PMO and EEM monthly, and will be reported in the semi-annual environmental monitoring reports by the EEM, see reporting plan in Table EMP-6. Yes Yes Yes No No No EMP 24

101 A Table EMP-6: Environmental Impact Monitoring Program Monitoring Frequency & Component Item Monitoring Parameters Monitoring Location Duration Pre-construction stage Component Soil quality ph, heavy metals Mining rehabilitation sites; Once before 3 construction Waste rock heavy metals, Fe2O3, Al2O3, Mining rehabilitation sites Once before composition CaO, MgO, total sulfur construction content, alkali content, manganese element, water content, chlorine Air quality Air quality At each of the four Once before boundaries for each construction mining rehabilitation sites Component 4 dredging materials ph, heavy metals SiO2, Dredging points of the Once before rehabilitated rivers construction Construction Stage All Noise LAeq Boundary of all Once per month components construction sites, at least during construction with civil three sensitive receptors period works for each subcomponent Ambient air quality TSP, PM10, SO2, NOx Boundary of all 1 day (24-hr construction sites, at least continuous three sensitive receptors sampling), for each subcomponent quarterly during Component 4.1, 4.2, 4.3 Water and soil conservation Surface quality water construction period Soil erosion all construction sites Weekly during construction period when there is construction activity SS Set up 2 monitoring stations at each of the following locations during construction: Monthly during construction period when there is construction activity Implementing Entity Supervising Entity EMS EEM, PIU, PMO LDI PIU, PMO EMS EMS PIU, PMO PIU, PMO EMS EEM, PIU, PMO EMS EEM, PIU, PMO Contractors, CSCs EEM, PMO PIU, EMS EEM, PIU, PMO EMP 25

102 A Component Item Monitoring Parameters Monitoring Location Bridge construction; Pipeline crossing river construction; River dredging point. Station 1: 50 m upstream of the location; Station 2: 100 m downstream of the location Component 3 Waste rock leachate ph, NH3-N, nitrate nitrite, Groundwater monitoring volatile phenols, cyanide, point at the four mining As, Hg, Cr 6+, total hardness, rehabilitation sites. The Pb, fluoride, Cd, Fe, Mn, sampling locations are set dissolved solids, I Mn, out in the FSRs. sulfates, and chlorides, coliforms Subsidence elevations Monitoring piles installed in line with the locations Component 4.1 Construction wastewater supernatant water from dredged sediment disposal sites Operation stage (the first year) Component 2.1 and 4.3 Monitoring Frequency & Duration Three times, once in wet season, once in normal season and once in dry season Continuous in one year set out in the FSRs SS, BOD5, COD, LAS etc all construction sites Weekly during construction period when there is construction activity Ambient air quality TSP, NO2, CO, PM10 Sensitive receptors along the project roads referring to the baseline monitoring locations Noise LAeq Sensitive receptors along the project road referring Implementing Entity Supervising Entity LDI EEM, PIU, PMO CSCs, LDI EEM, PIU, PMO,CSC Contractors, CSCs EEM, PMO PIU, Quarterly EMS O&M unit, EEM, PMO 2 times per day (day time and night EMS O&M unit, EEM, PMO EMP 26

103 A Component Item Monitoring Parameters Monitoring Location to the baseline monitoring locations Component Exhaust emissions Odor (H2S, NH3) At each of the boundaries of the Luobei WWTP and Jiguan Surface quality water WWTP influent and effluent Temp, ph, COD, BOD5, TP, TN, SS, TPH, surfactants, fecal coliforms Volume, Temp, ph, COD, BOD5, TP, TN, NH3-N, SS, TPH, surfactants, fecal coliforms WWTP sludge Moisture content (%), N, P, K, Cd, Pb, As, Cr WWTP Downstream of discharge point (Kuangling river for Jiguan WWTP) At Luobei WWTP and Jiguan WWTP inlet and outlet At WWTP sludge dewatering facility Monitoring Frequency & Duration time), quarterly Implementing Entity Supervising Entity quarterly EMS O&M unit, EEM, PMO Quarterly EMS O&M unit, EEM, PMO Monthly EMS O&M unit, EEM, PMO quarterly EMS O&M unit, EEM, PMO Noise LAeq At each of the 4 boundaries of the Luobei WWTP and Jiguan WWTP, 2 times per day (day time and night time), quarterly EMS O&M unit, EEM Groundwater quality ph, NH3-N, nitrate nitrite, volatile phenols, cyanide, As, Hg, Cr 6+, total hardness, Pb, fluoride, Cd, Fe, Mn, dissolved solids, I Mn, sulfates, and chlorides, coliforms Component 3 Groundwater quality ph, NH3-N, nitrate nitrite, volatile phenols, cyanide, As, Hg, Cr 6+, total hardness, Pb, fluoride, Cd, Fe, Mn, Three locations at each plant. One in the upstream, one in the plant site and one in the downstream Groundwater monitoring point at the four mining rehabilitation sites. The sampling locations are set Quarterly EMS O&M unit, EEM, PMO Three times, once in wet season, once in normal season and once in dry EMS O&M unit, EEM, PMO EMP 27

104 A Component Item Monitoring Parameters Monitoring Location dissolved solids, I Mn, out in the FSRs. sulfates, and chlorides, coliforms Subsidence elevations Monitoring piles installed in line with the locations set out in the FSRs. Air quality TSP, SO2 At each of the four boundaries for each mining rehabilitation sites Component Noise LAeq At each of the boundaries of the NO.3 WTP, Shengke WTP and Water Drainage Company s WTP WTP sludge quality Moisture content (%) At WTP sludge dewatering facility Monitoring Frequency & Duration season Continuous in one year Implementing Entity O&M unit Supervising Entity EEM, PMO Monthly EMS O&M unit, EEM, PMO 2 times per day (day time and night time), quarterly EMS O&M unit, EEM, PMO quarterly EMS O&M unit, EEM, PMO EMP 28

105 A Table EMP-7: Reference Monitoring Indicators and Applicable PRC Standards Period Indicator Standard Pre-construction TSP, PM10 Class II Ambient Air Quality and Standard (GB ) Construction Fume from asphalt mixing plant (SO2, NOx) Air Pollutant Integrated Emission Standard (GB ) Noise limits of PME at boundary of construction site Water quality during dredging and bridge construction (SS) Quality of soil, waste rock, dredged sediment for urban landscaping EMP 29 Emission Standard of Environmental Noise for Boundary of Construction Ambient Soil Quality Standard (GB ); Control Standards for Pollutants in Sledges for Gardens and Parks (GB/T ) Quality of wastewater from PRC s Integrated Wastewater construction sites and Discharge Standard (GB supernatant water from dredged 1996), Class I standard (for sediment disposal sites (SS, discharging into Category III water BOD5, COD, LAS etc) bodies). Soil erosion Class II Control Standards for Soil and Water Loss on Development and Construction Projects (GB ) Operation Odor from WWTP Emission Standards of Odor Pollutants (GB ) Noise from WWTP and WTP Emission Standard for Industrial Enterprises Noise at Boundary (GB ) Effluent discharge from WWTP Class 1A Discharge Standard of Pollutants for Municipal Wastewater treatment Plant (GB ) 22. EMP monitoring. EMP monitoring will be undertaken by the PMO, with verification by the EEM, who will report to ADB the project s adherence to the EMP, information on project implementation, environmental performance of the contractors, and environmental compliance through semi-annual environment progress reports (Table EMP-8). The reports should confirm the project s compliance with the EMP, local legislation such as PRC EIA requirements, and identify any environment related implementation issues and necessary corrective actions. The performance of the contractors in respect of environmental compliance will also be reported. The operation and performance of the project GRM, environmental institutional strengthening and training, and compliance with all covenants under the project will also be included in the report. The project quarterly progress report will also include environmental section on EMP implementation and monitoring verified by LIEC. 23. Environmental acceptance monitoring and reporting. Within three months after each component completion, or no later than 1 year with permission of the local EPB, environmental acceptance monitoring and audit reports of each component completion shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Management Method for Acceptance of Environmental Protection at Construction Project Completion (MEP, 2001), (ii) reviewed for approval of the official commencement of individual component operation by environmental authorities, and (iii) finally reported to ADB (Table EMP-8). The environmental

106 A acceptance reports of the component completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations. Table EMP-8: Reporting Plan Reports From To Construction Phase Progress reports Internal project progress Contractors, PIU by contractors report by contractors, CSCs including EMP monitoring results by CSCs. Progress reports by PIUs Environment impact monitoring report Reports to ADB and disclosed to APs Operation Phase Reports to ADB and disclosed to APs Internal project progress report including EMP implementation progress Environment quality monitoring report by licensed EMS (EEM contracted by LPMOs/IAs) Project progress report (including section on EMP implementation and monitoring) External environment monitoring reports EMP 30 Reporting Frequency Monthly PIU PMO Quarterly EMS PMO support LIEC EEM with of PMO, EEM ADB ADB, APs Quarterly Quarterly Semi-annual Project progress report PMO ADB Semi-annual (including section on EMP implementation and monitoring) External environment EEM ADB, Annual monitoring reports APs PCR Notes: ADB = Asian Development Bank; AP = affected people; EEM = external environmental monitor; EMS = Environment Monitoring Station; PCR = project completion report; PIU = Project Implementation Unit; PMO = Project Management Office. 5. Institutional Capacity Building and Training 24. The capacity of PMO, PIUs, O&M units and contractors staff responsible for EMP implementation and supervision will be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The project will address the lack of capacities and expertise in environmental management through (i) institutional capacity building, and (ii) training. 25. Institutional strengthening. The capacities of the PMOs and PIUs to coordinate environmental management will be strengthened through a set of measures: (i) The appointment of qualified environment specialists within the PMOs staff to be in charge of EMP coordination, including GRM and coordination of environmental impact monitoring, training, reporting, etc.; (ii) The contracting of specialists in mining remediation, road and traffic safety, industrial wastewater, river and green infrastructure, and non-revenue water under the loan implementation (package CS1); (iii) The contracting of an External Environmental Monitor (EEM) to guide and verify PMO and PIUs in implementing the EMP and ensure compliance with ADB s Safeguard Policy Statement (SPS 2009); until

107 A (iv) The appointment of environment specialists by the PIUs staff to conduct regular site inspections; and (v) The contracting of CSCs by the PIUs to verify environment performance of the project on construction sites; and (vi) LIEC under the loan implementation consultant service (package CS1) to guide PMOs and PIUs in implementing the EMP. 26. Training. The PMOs, PIUs, contractors and O&M Units will receive training in EMP implementation, supervision, reporting, and on the GRM (Table EMP-9). Trainings will be facilitated by the LIEC, EEM and experts under the loan implementation consulting services. EMP 31

108 A Table EMP-9: Tentative EMP-related Training Program Periods No. of Cost Total Topic Attendees Contents Times (days) persons ($/person/day) Cost EMP adjustment PMOs, PIUs, Development and Twice of each project 2*0.5 20/city and implementation contractors, adjustment of the city-once prior to, CSCs, project EMP roles and and once after one city EPBs responsibilities, year of project monitoring, implementation. supervision and reporting procedures, review of experiences (after 12 months) Grievance Redress PMOs, PIUs, Roles and Twice of each project 2*0.5 20/city Mechanism contractors, responsibilities, city-once prior to, CSCs, project procedures, review and once after one city EPBs of experience (after year of project 12 months) implementation. Environmental PMOs, PIUs, Monitoring Once of each project /city monitoring, contractors, methods, data city (at beginning of occupational health CSCs collection and project construction) & safety processing, reporting systems, occupational health & safety during construction Environmental PMOs, O&M Environmental Once of each project 1 15/city aspects of facilities units housekeeping, city during project operation sludge treatment operation and disposal process, safety operation, EMP 32

109 A emergency preparedness and breakdown response procedures, waste rock dump site management Total estimated cost: $12,500 ($3125 each city) EMP 33

110 A 6. Stakeholder Engagement and Information Disclosure 27. In addition to the public consultation conducted during project preparation (see section VIII), plans for public involvement during construction and operation stages have been developed during project preparation (Table EMP-10). PMO is responsible for public participation during project implementation. Affected communities will be involved and consulted site visits, workshops, investigation of specific issues, interviews, and public hearings. The budget for public consultation is estimated at approximately $14,800. Table EMP-10: Public Consultation Plan Organizer Format No. of Times Subject Attendees Budget Construction Stage PMOs, PIUs PMOs, PIUs Public consultation & site visits Expert workshop Operational Stage O&M units Public consultation and site visits O&M units Public workshop 4 times: 1 time before construction commences and 1 time each year during construction As needed based on public consultation Once in the first year As needed based on public consultation O&M units Public satisfaction survey At least once Total budget: $14,800 ($3,700 each city) Adjusting of mitigation measures, if necessary; construction impact; comments and suggestions Comments and suggestions on mitigation measures, public opinions Effectiveness of mitigation measures, impacts of operation, comments and suggestions Effects of mitigation measures, impacts of operation, comments and suggestions Comments and suggestions EMP 34 Residents adjacent to components; CSCs Experts of various sectors, CSCs Residents adjacent to component sites; CES. Representatives of residents and social sectors Project beneficiaries $2,000/city $ 500/city $ 400/city $ 400/city $ 400/city 28. Information Disclosure relating to environment safeguards will continue throughout project implementation. The project s environmental information will be disclosed as follows: (i) Domestic EISs and EITs (in Chinese) were disclosed on the local EPB websites before approval by relevant municipal/county/district environmental protection authorities; (ii) The approval of domestic EISs and EITs were disclosed on the local EPB s websites. (iii) Copies of the domestic EISs and EITs (in Chinese) are available on request in the PMOs and PIUs. (iv) The draft EIA is disclosed on the project website at (v) All semiannual environmental monitoring reports during project implementation and annual environmental monitoring report during

111 A (vi) (vii) operation (first year) will be available at The environmental completion certificate report will be disclosed on local EPB s websites before approval by relevant municipal/county/district environmental protection authorities; The approval of environmental completion certificate will be disclosed on local EPB s websites. 7. Grievance Redress Mechanism 29. A grievance redress mechanism (GRM) has been established as part of the project EMP to receive and manage any public environmental and/or social issues which may arise due to the project. The PMOs will ensure that potentially affected communities are informed about the GRM at an early stage of the project. During the project preparation phase, the PIUs, PMO and EPB of each project city have received training on the GRM from the PPTA team. 30. The project city PMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PMO-ES coordinates the GRM and (i) instructs the PIUs and contractors on their responsibilities in the GRM (ii) establishes a simple registry system, to document and track grievances received (including forms to record complaints and how they have been resolved); and (iii) reports on progress of the GRM in the annual environmental monitoring and progress reports (ERM) to ADB. 31. Each PIU will assign a member of staff, who is responsible for implementation of the GRM and other relevant aspects of the EMP. This will be the PIU-ES. Tasks include keeping a record of complaints. At least two months before construction commences, these contacts will be disclosed to the public at each construction site and forwarded to local residents and villagers to ensure that entry points to the GRM are well known. 32. GRM readiness procedures prior to start of construction. To be successful and reduce the likelihood of public concerns, the following measures will be implemented before any construction: a. On-site procedures: (i) all contractors and CSC staff will be briefed by the PMO- ES and PIU-ES on the GRM. Contractors and workers will be instructed to be courteous to local residents and, in the event they are approached by the general public with an issue, to immediately halt their work and report the issue to the foreman; (ii) at least one sign will be erected at each construction site providing the public with updated project information (the purpose of the project activity, the duration of disturbance, the responsible entities on-site), the GRM process, and contact names and details for the GRM entry points. b. Non-project agencies: prior to project construction, the PMO-ES will notify all relevant agencies about the project and GRM, so that if these agencies receive complaints, they know to contact PMO-ES and follow up as necessary. This will include, but not be limited to, the project city EPB, Urban Management Bureau, and traffic management authority. 8. The procedure and timeframe for the GRM is shown in Figure EMP-1, and is summarized as follows. (i) Stage 1 (maximum 10 working days): Affected persons can submit a written or EMP 35

112 A oral complaint to the contractors, CSCs or PIUs. Complaints received by any other institutions will be referred back to the PIUs for action. The PIUs will notify the PMO- ES for the complaint within two days. The PMO-ES will enter the complaint in the Complaint Register. The contractor, in consultation with the PIU, attempts to resolve the issue directly with the affected person. Within five working days of receiving the complaint, the agency will provide clear advice to the affected person on the proposed corrective action and by when it will be taken. The corrective action will be implemented not later than 10 working days from receipt of the complaint. The PMO-ES will enter the resolution in the Complaints Register. If quick corrective action is not possible, or the PIU is unsure how to proceed, or the complainant is not satisfied by the initial corrective action, then the complaint will be referred to the PMO-ES for Stage 2. (ii) Stage 2 (maximum 5 working days): For complaints not resolved in Stage 1, Stage 2 is initiated. The PMO-ES, contractor, CSC and PIU will meet with the affected person and together discuss the issue and identify possible solutions. At the meeting, a possible solution will be agreed upon. The contractor or PIU, as appropriate, will implement the agreed solution and report the outcome to the PMO-ES. (iii) Stage 3 (maximum 10 working days): If Stage 2 is unsuccessful (i.e. no solution can be identified or the affected person is not satisfied with the proposed solution) the PMO-ES will convene a multi-stakeholder meeting and involve the project leading group to ensure that any needed inputs from other agencies are coordinated. The workshop will identify on the outcome provide to the PMO and ADB. 33. The above steps related to the construction phase where most complaints will be directed in the first instance to the contractor, CSC or PIU. During initial operations, complaints will be received by the operation and maintenance (O&M) units of the facilities. 34. PMO will inform ADB of all complaints and actions under the GRM and include all relevant documents in its progress reports to ADB. 35. Any costs incurred to receive and document grievances will be paid by the PMO. The grievance procedures will remain valid throughout the duration of project construction and the first two years of project operation. 36. The tracking and documenting of grievance resolutions by the PMO will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) regular updating of the GRM database by the PMO-ES; (iii) processes for informing stakeholders about the status of a case; and (iv) a simple but effective filing system, so that data can be retrieved for reporting purposes, including reports to ADB. 37. If the above steps are unsuccessful, people adversely affected by the project may submit complaints to ADB s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB EMP 36

113 A operations department (in this case, the ADB East Asia Department). Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism. 1 Figure EMP-1: The Project Grievance Redress Mechanism Stakeholders involved will depend upon the nature of the complaint and will include as a minimum the affected person(s), city PMO, PIU and project city EPB. Other stakeholder agencies relevant to particular concerns can be called upon to contribute through the provincial PMO. Note: AP = affected person, EPB = environmental protection bureau, O&M = operation and maintenance, PMO =project management office; PIU=project implementation unit; PLG=project leading group. 9. Cost Estimates 38. Cost estimates for EMP implementation, including mitigation measures, environmental impact monitoring, public consultation and training as presented in Table are summarized in Table EMP-2, Table EMP-4, Table EMP-7 and Table EMP-8. Total budget for implementing these 4 items of the EMP is therefore $597,300. Excluded from cost estimates are infrastructure costs which relate to environment and public health but are already included in the project direct costs. Excluded are also capacity building packages, the remuneration costs for environment specialists who are stall members within PMOs and PIUs, and technical experts on equipment operation and maintenance, which are covered elsewhere in the project budget. The following costs are not included in the EMP cost: (i) noise reducing pavement for Yunfeng tunnel (CNY 500,000) and Xinxing Avenue (CNY1,900,000); (ii) sound in windows for South Ring road (CNY 440,000) and Gongqu Bridge(CNY 318,000). 1 See: EMP 37

114 A Table EMP-11: Estimated Budget for Environmental Management Plan Implementation Estimated EMP Item Cost Mitigation measures (noise mitigation cost of CNY3,198,000 not included) External monitoring by EEM $540,000 Training $12,500 Public consultation $14,800 Total $597, Mechanisms for Feedback and Adjustment 39. The EMP will be updated as needed by PMO with assistance from the LIEC and under supervision of the EEM when there are design changes, changes in construction methods and program, poor environmental monitoring results, and if mitigation measures prove to be ineffective or inadequate. Based on environmental monitoring and reporting systems in place, PIUs (with the support of the LIEC and the EEM) shall assess whether further mitigation measures or improvement in environmental management practices are required as corrective actions. PMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted by PMO to ADB for review and approval, and will be disclosed on the project website. EMP 38

115 A APPENDIX 1. DRAFT TERMS OF REFERENCE FOR ENVIRONMENTAL POSITIONS PMO ENVIRONMENT OFFICER BACKGROUND 1. Development projects supported by the Asian Development Bank (ADB) routinely include a Project management office (PMO). The PMO is responsible for project implementation and comprises the provincial and/or municipal agencies involved in the project. Compliance with the Loan and Project Agreements includes implementation of an Environment Management Plan (EMP), which is prepared as part of the project environment impact assessment. The EMP is the critical guiding document to manage, monitor, and report upon potential project environmental impacts. Implementation of the EMP is a full-time task. For this reason, the PMO assigns at least one full-time officer for this role. These terms of reference describe the requirements for this officer. SCOPE AND DURATION OF WORK 2. The officer will work on behalf of the PMO to implement the project EMP. The officer will report directly to the PMO. The position is for the entire project duration. QUALIFICATIONS 3. The officer will have: (i) an undergraduate degree or higher in environmental management or related field; (ii) at least five years of experience in environmental management, monitoring, and/or impact assessment; (iii) ability to communicate and work effectively with local communities, contractors, and government agencies; (iv) ability to analyze data and prepare technical reports; (v) willingness and health to regularly visit the project construction sites and in different seasons; and (vi) ideally, proficiency in spoken and written English. DETAILED TASKS 4. The PMO Environment Officer will have a detailed understanding of the project EMP and supporting documents, including the domestic environmental reports, the project EIA, and project environmental assurances. The officer will have the following tasks. (i) (ii) (iii) (iv) Assess whether the EMP requires updating due to any changes in project design which may have occurred after the EMP was prepared. Distribute the Chinese language version of the EMP to all relevant agencies, including the implementing agencies, provincial and municipal agencies for environment protection. This should occur within three months of project effectiveness Conduct meetings with agencies as necessary to ensure they understand their specific responsibilities described in the EMP. Ensure that relevant mitigation, monitoring and reporting measures in the EMP are included in the bidding documents, contracts and relevant construction plans. EMP 39

116 A (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) Confirm that the Implementing Agencies (IAs) responsible for the internal environment monitoring described in the EMP understand their tasks and will implement the monitoring in a timely fashion. Within two months of project effectiveness, establish and implement the project Grievance Redress Mechanism (GRM) described in the EMP. This will include: (a) prepare a simple table and budget identifying the type, number and cost of materials needed to inform local communities about the GRM and starting dates and scope of construction; (b) design, prepare and distribute these materials, and plan and conduct the community meetings; (c) prepare a form to record any public complaints; (d) prepare a summary table to record all complaints, including dates, issues, and how they were resolved; and (e) ensure that all relevant agencies, including contractors, understand their role in the GRM. Prior to construction, ensure that IAs and their contractors have informed their personnel, including all construction workers, of the EMP requirements. This will include all mitigation measures relating to impacts to air, water, noise, soil, sensitive sites, ecological values, cultural values, worker and community health and safety, respectful behavior when communicating with local communities, and responding to and reporting any complaints. During project construction, make regular site visits with LIEC to assess progress, meet with contractors and/or local communities, and assess compliance with the EMP. Ensure that all relevant agencies submit required progress reports and information, including environmental monitoring and reports of any issues or grievances. Compile, review, and store environmental progress reports from the IAs, records of any grievances, and any other relevant issues. Maintain digital copies of all information. When necessary, enter data into summary tables in digital format (e.g. to transfer records of grievances from hard copy forms). Ensure that all information is stored in the PMO filing system, backed up, and can be easily retrieved. Prepare semi-annual environment progress reports. Work closely with the PMO, IAs, loan implementation consultants, and other agencies and personnel as necessary to conduct these tasks. REPORTING REQUIREMENTS Semi-annual environment monitoring reports, using the template provided by ADB or a domestic format reviewed and approved by ADB. LOGISTICAL SUPPORT PROVIDED BY PMO TO THE ENVIRONMENT OFFICER (i) Provision of hard and soft copies of the project EMP, domestic and project environmental reports, feasibility study reports, loan and project agreements, maps, and other supporting materials as necessary to ensure the officer can implement the tasks. EMP 40

117 A (ii) (iii) Vehicle transport, office materials, and other logistical support as necessary for the officer to visit the project construction sites and local communities, arrange and conduct meetings, and prepare and distribute consultation materials. Overall coordination, including review of the draft semi-annual monitoring reports and final responsibility for submission of the monitoring reports to ADB. EMP 41

118 A LOAN IMPLEMENTATION ENVIRONMENTAL CONSULTANT I. BACKGROUND 1. The project will be coordinated by Project management offices (PMO), whose overall responsibility includes implementation of the project Environment Management Plan (EMP). At the field level, the project will be implemented by a Project Implementation Unit (PIU). The PMO and PIUs will be assisted by a Loan Implementation Consultant team. The Loan Implementation Environmental Consultant (LIEC) will be a part of this team and will support the PMO and PIUs to implement the project EMP. II. SCOPE AND DURATION OF WORK 2. This is an independent position (recruited as part of a consultant team or individually) which is not part of the PMO in-house environmental team. The specialist will report to the PMO. The position is for the entire project duration (intermittent over six years). The LIEC will be recruited as soon as possible after loan effectiveness, as the first task is to confirm project environmental readiness. III. QUALIFICATIONS 3. The specialist will have: (i) an undergraduate degree or higher in environmental management or related field; (ii) at least eight years of experience in environmental management, monitoring, and/or impact assessment; (iii) familiarity with ADB project management requirements and national environmental management procedures; (iv) ability to communicate and work effectively with local communities, contractors, and government agencies; (v) ability to analyze data and prepare technical reports; (vi) willingness and health to regularly visit the subproject sites; and (vii) proficiency in spoken and written English. IV. TASKS 4. Working closely with the PMO and PIU Environmental Officers, the LIEC will do the following. (i) (ii) (iii) (iv) (v) (vi) assess the project components environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-5; assist PMO and PIUs to update the EMP and environmental monitoring program; review the site-specific EMPs prepared by contractors; assist the PMOs and PIUs to establish a Grievance Redress Mechanism (GRM), and provide training for all GRM access points; Conduct regular EMP compliance assessments, undertake site visits as required (together with PMO-ES), identify any environment-related implementation issues, propose necessary corrective actions, reflect these in a corrective action plan; Assist in preparation of environmental part of regular project progress reports; and help improve O&M plan if necessary; (vii) provide training to PMOs, PIUs and contractors on environmental laws, regulations and policies, SPS 2009, EMP EMP 42

119 A (viii) (ix) (x) implementation, and GRM in accordance with the training plan defined in the EMP (Table EMP-6); assist the PMOs and PIUs in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities, GRM; assist the FIs establishment of ESMS and provide ESMS trainings; and assist the FIs preparation of annual ESMS implementation report. EMP 43

120 A EXTERNAL ENVIRONMENTAL MONITOR (EEM) I. BACKGROUND The project city PMO, Hegang, Jixi, Qitaihe and Shuangyashan, will engage a qualified external environmental monitor (EEM). The EEM will provide assistance to Heilongjiang Provincial Government (HPG, the executing agency), four city PMOs, and all PIUs in monitoring project implementation in compliance with the environmental management plan (EMP) and ADB s safeguard policy; verify the project s environmental performance; identify the necessary corrective actions, and reflect them in corrective action plan. II. SCOPE OF SERVICES An external environment monitor will be engaged intermittently for the entire duration of project implementation. The consultant firm with estimated total input of 20 personmonths of national consultants will be engaged. The EEM will: a) Contract a certificated environmental monitoring station or company (EEM) to conduct physical indicator monitoring as defined in the monitoring plan of Table EMP- 6; b) Conduct independent verification of EMP implementation status and environmental to verify that issues reported in the internal environmental monitoring report and semiannual environmental progress report in compliance with ADB s safeguard policy statement (2009) and PRC regulations; c) Make recommendations to resolve any issues or problems on implementing the EMP and provide advice to city PMOs and PIUs; d) Compare the predicted with actual environmental impacts, assess the effectiveness of mitigation measures, and suggest enhancement measures, as required; and e) Submit external environmental monitoring verification report to ADB and HLG with quality acceptable to ADB on semiannual basis during project implementation period in both Chinese and English. III. TEAM COMPOSITION & QUALIFICATION REQUIREMENTS FOR KEY EXPERTS Environment Management and Monitoring expert (team leader: national, 8 manmonths; deputy team leader, national, 12 man-months ): It is preferred that he/she has bachelor degree or above in environmental engineering with more than 10 year s relevant experience including 8 year s environmental impact assessment and management experience, or professional experience in international financial organization loan projects; familiarity with PRC and ADB requirements for environmental management; ability to prepare comprehensive environmental impact monitoring and assessment reports; relevant experiences in similar ADB projects in the PRC is preferred. 1) Team coordination and planning of external monitoring; 2) Monitor the internal EMP compliance; 3) Conduct routine inspection on EMP implementation; 4) Assure the environmental mitigation measures are well undertaken in construction and operation; 5) Review project progress and compliance with the EMP based on field visit, and review the environmental impact monitoring conducted by EMS. EMP 44

121 A IV. DELIVERABLES During service period, the consultant company shall prepare the semi-annual external environmental monitoring report to ADB and PMOs in the format agreed with ADB in both English and Chinese. EMP 45

122 A APPENDIX 2. ELEMENTS EMERGENCY PREPARADNESS AND RESPONSE PLAN An emergency is an unplanned event when a project operation loses control, or cloud lose control, of a situation that may result in risks to human health, property, or the environment, either within the facility or in the local community. The project facilities should have an Emergency Preparedness and Response Plan that is commensurate with the risks of the facility and includes the following basic elements in line with the Technical Guidelines for Environmental Risk Assessment on Project (HJ/T ) and international best practices : Administration (policy, purpose, distribution, definitions, etc.) Organization of emergency areas (command centers, medical stations, etc.) Roles and responsibilities; Communication systems Emergency response procedures Emergency resources Training and updating Checklists (role and action list and equipment checklist) Business continuity and contingency EMP 46

123 Financial Intermediary: Environmental and Social Management System Arrangement Project Number: Loan Number: LXXXX May 2017 People s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project

124 CURRENCY EQUIVALENTS (as of 12 May 2017) Currency unit = yuan (CNY) CNY1.00 = $ $1.00 = CNY ABBREVIATIONS ADB - Asian Development Bank CAP - corrective action plan DRC - development and reform commission EHS - environmental, health, and safety EIA - environmental impact assessment EMP - environmental management plan EMoP - environmental monitoring plan EPB - environmental protection bureau ESMS - environmental and social management system FIL - financial intermediation loan GRM - grievance redress mechanism HBC - Harbin Bank Corporation HFD - Heilongjiang Provincial Financial Department HDRC - Heilongjiang Development and Reform Commission HPG - Heilongjiang Province Government LBC - Longjiang Bank Corporation IEE - initial environmental examination LIEC - loan implementation environmental consultants MOF - Ministry of Finance PIAL - prohibited investment activities list PMO - project management office PRC - People s Republic of China SME - small and medium-sized enterprises SPS - safeguards policy statement NOTE In this report, "$" refers to US dollars. This environmental and social management system arrangement is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

125 TABLE OF CONTENTS I. INTRODUCTION... 1 II. A. THE PROJECT Project Description Project Implementation Arrangement... 3 B. ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM The purpose of the ESMS Environmental and Social Management Implementation Arrangement ENVIRONMENTAL AND SOCIAL MANAGEMENT POLICY AND APPLICABLE REQUIREMENTS 11 A. LONGJIANG BANK AND HARBIN BANK Longjiang Bank Harbin Bank Two Bank s General Loan Process B. CURRENT FINANCIAL INTERMEDIATION ESMS STATUS C. ENVIRONMENTAL AND SOCIAL MANAGEMENT POLICY AND APPLICABLE REQUIREMENTS Environmental and Social Management Policy ADB SPS Policy Financial Intermediation s Environmental and Social Safeguard Requirements PRC Legislative and Policy Framework... 2 III. ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURES... 3 A. ESMS INTEGRATED INTO FINANCIAL INTERMEDIATION OPERATIONAL PROCESS... 3 B. ENVIRONMENTAL AND SOCIAL SCREENING AND CATEGORIZATION... 2 C. DUE DILIGENCE... 3 D. COMPLIANCE MONITORING AND REPORTING... 7 E. ESMS REVIEW AND CONTINUOUS IMPROVEMENT... 7 F. EXTERNAL REPORT TO ADB... 8 IV. INSTITUTIONAL RESPONSIBILITY, RESOURCES, AND CAPACITY... 8 A. FINANCIAL INTERMEDIARY S ORGANIZATION AND RESPONSIBILITIES... 8 B. RESOURCES AND CAPABILITIES C. ESMS IMPLEMENTATION BUDGET AND TRAINING D. TIMELINE FOR FINANCIAL INTERMEDIATION ESTABLISHMENT AND IMPLEMENTATION OF ESMS E. SENIOR MANAGEMENT APPROVAL V. ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM IMPLEMENTATION VI. GRIEVANCE AND REDRESS MECHANISM APPENDIX 1: ASIAN DEVELOPMENT BANK PROHIBITED INVESTMENT ACTIVITIES LIST APPENDIX 2: MAJOR PRC LAWS AND REGULATIONS ON ENVIRONMENT AND SOCIAL ISSUES RELEVANT TO THE ESMS APPENDIX 3: ENVIRONMENTAL AND SOCIAL ASPECTS PRELIMINARY SCREENING CHECKLIST APPENDIX 4: ENVIRONMENTAL, INVOLUNTARY RESETTLEMENT, AND INDIGENOUS PEOPLES IMPACT CHECKLIST APPENDIX 5: SUBPROJECT SELECTION CRITERIA APPENDIX 6: SUGGEST OF ENVIRONMENTAL AND SOCIAL DUE DILIGENCE REPORT APPENDIX 7 SUGGESTED OUTLINE ANNUAL ENVIRONMENTAL AND SOCIAL MONITORING REPORT FOR SUBPROJECT COMPANY... 33

126 APPENDIX 8: SUGGESTED FORMAT OF ANNUAL ESMS PERFORMANCE REPORT TO ASIAN DEVELOPMENT BANK APPENDIX 9: ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM ARRANGEMENT CHECKLIST FOR SENIOR MANAGEMENT APPROVAL APPENDIX 10: SUMMARY OF THE FOUR POTENTIAL FINANCIAL INTERMEDIATION LOAN SUBPROJECTS... 42

127 I. INTRODUCTION A. The Project 1. Project Description 1. The project cities share a border with the Russian Federation to the east and to the north, and have a population of 5.2 million. They were an important coal mining and electricity production base in the PRC. 1 Their fundamental reliance on coal mining and related industries, makes local economies vulnerable and the significant fall of coal prices in 2013, and changing global and domestic energy and climate change policies resulted in rapid economic decline, increasing unemployment and urban poverty, declining wages, and population loss in the project cities. 2 In 2014, per capita gross domestic product in the project cities was 3% below Heilongjiang Province average which in turn was 16% below the national average. In 2015, trade in project cities collapsed, declining 40% for Jixi and Shuangyashan, and 89% for Qitaihe. Another key challenge to private sector development is a long tradition of large state-owned enterprises dominating local economies. Revitalization is challenging due to the lack of (i) effective programs for SME development, (ii) SME financing for investments and longer term working capital, (iii) competitive products, research and development investments, (iv) capacity to develop and expand businesses, (v) strategic workforce development, and (vi) attractive urban environments. 2. The project cities suffer from environmental loss and degradation (pollution of soil, water, and air) and poor urban livability, caused by more than 60 years of coal mining, inadequate urban infrastructure and services, including water supply, wastewater management, and drainage systems. District heating energy inefficiencies are serious due to aging pipes. Some key missing links in the roadway network lead to detours and traffic jams, especially in Shuangyashan. Project cities lack adequate road maintenance, public transport, bus lanes, bus stops, sidewalks, and urgently need road rehabilitation. Some rivers, especially in Hegang and Jixi, flood during heavy storms and snow melt in the Spring; and river courses are narrow and scattered with solid waste, and water is polluted from untreated discharge of domestic and industrial wastewater. 3. Impact and outcome. The project is aligned with the following impacts: (i) economy revitalized and diversified, and non-coal industries in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan developed; and (ii) living environment, safety, and public health in cities of Hegang, Jixi, Qitaihe, and Shuangyashan improved (footnote 7). The project will have the following outcome: non-coal economic activities and urban livability in project cities increased. 4. The project, through its comprehensive approach to urban and economic revitalization is expected to contribute to stopping and reversing a trend of out-migration of younger qualified workforce and attract and retain new residents, companies, and jobs in non-coal industries in more attractive cities. The project will directly benefit 2.73 million urban residents through (i) improved SME competitiveness creating new jobs in improved non-coal industrial parks; (ii) improved image through mining remediation; (iii) improved water supply, wastewater, district heating, flood protection, roads, road safety, and public transport; (iv) enhanced environmental, mining, and traffic safety awareness by public education programs; and (v) enhanced cooperation and coordination among the project cities, i.e. in tourism promotion, logistics and trade, supply chain integration, and SME support though smart city applications. 1 Heilongjiang Provincial Government Heilongjiang Statistical Yearbook 2015, Harbin. 2 After out-migration of 255,000 people between 2010 and 2015, the population declined by 4.7%.

128 5. Outputs. The project will have five outputs and detailed descriptions are included in the design and monitoring framework (Appendix 1) and in the project administration manual (PAM) Output 1: Sustainable SME investment and access to finance in project cities improved. A SMEFP will be established using the FIL modality to mobilize domestic financing offering three types of financial products: (i) cofinancing of SME investments with the cities taking the subordinated debt position, (ii) first loss cash collateral facility to mobilize commercial guarantees and facilitate access to commercial financing for investments and longer-term working capital of up to 3 years, and (iii) entrusted loan facility exclusively for high priority projects for local governments. The FIL will be strategically combined with BDS (output 5). 7. Output 2: Key infrastructure and SME facilities in non-coal industrial parks in project cities constructed. Key infrastructure and facilities will be constructed and operational, including (i) roads with a length of 18.4 kilometers (km) with advanced safety features, and associated utility pipes; (ii) industrial wastewater treatment plants with combined capacity of 26,000 cubic meters per day (m 3 /d); and (iii) multifunctional facilities for SMEs and startup offices, training, and business services with a total area of 56,000 square meters (m 2 ). 8. Output 3: Remediation and environmental cleanup from mining impacts in project cities improved. Mining remediation strategies will be developed, investment plans will be prepared, and pilot demonstration projects for replication will be implemented in all project cities: (i) Hegang: open pit mine (52.6 hectares [ha]) will be remediated, reclaimed, and reused as park and for light industry; (ii) Jixi: mining area and wasterock dumpsite will be remediated and afforested (89.7 ha) and a subsidence 4 monitoring center will be built and operated; and (iii) Qitaihe and Shuangyashan: wasterock dumpsites and subsidence areas (21.7 ha and 24.7 ha, respectively) will be remediated and reused as green open space and agricultural land. 9. Output 4: Integrated urban infrastructure and services in project cities improved. This output will enhance urban livability and attractiveness by improved, spatially integrated infrastructure and services: (i) Hegang: Focus is on river rehabilitation, improvements in drainage, sustainable urban and public transport, urban greening, and district heating; (ii) Jixi: Focus is on integrated improvements to core area of Hengshan District and West Jixi including river rehabilitation; and urban roads, water supply, and wastewater management and drainage system improvements; (iii) Qitaihe: Focus is on water supply, wastewater system, and public transport; and (iv) Shuangyashan: Focus is on sustainable urban transport constructing key missing road links, and on improvements to the water supply, sewer, and drainage management systems. 10. Output 5: Inclusive capacity in business development services and integrated project planning and management developed. This output will support project management, monitoring, and evaluation. Capacity development will include training, study tours, policy dialogue, and stakeholder consultation on (i) project planning and management, procurement, and financial management; (ii) BDS capacity development to SMEs and local SME bureaus; (iii) labor force assessment, and technical and vocational education and training; (iv) smart city cluster cooperation; (v) mining remediation planning and implementation; (vi) flood risk management, sponge city planning, 5 and urban climate resilience; (vii) water, wastewater, and 3 Project Administration Manual (accessible from the list of linked documents in Appendix 2). 4 Subsidence is lateral or vertical ground movement and failure, caused by the man-made underground coal mines. 5 Sponge city is a concept in which greenways, parks, and wetlands maximize ecosystem services, including water resource management and stormwater retention. In April 2015, the Ministry of Housing Urban and Rural Development announced that Pingxiang was selected as one of 16 pilot cities for the sponge city program. 2

129 11. drainage management system design, construction, management, operation, and tariff reform; and (viii) sustainable urban transport, road and traffic safety, and public transport management. 1.1 Project Implementation Arrangement 12. The Heilongjiang Provincial Government (HPG) is the executing agency for the project, and has established a mechanism of regular meetings to guide, supervise, coordinate, and manage the project. Parties include the Heilongjiang Development and Reform Commission (HDRC), Heilongjiang Finance Department (HFD), Heilongjiang Industrial and Information Technology Commission, and Heilongjiang Audit Department. HFD will manage the imprest account support financial management. Hegang, Jixi, Qitaihe, and Shuangyashan cities are the implementing agencies, and each has established (i) a project leading group headed by the Mayor or Vice-Mayor; (ii) a local project management office (PMO) under the municipal development and reform commission; and (iii) Project implementation units (PIUs) in the concerned local agencies, responsible for implementation of subcomponents. For the FIL component, the headquarters of Harbin Bank Corporation (HBC) and Longjiang Bank Corporation (LBC) will be the financial intermediaries for the project cities, and each bank has established PIUs for the implementation of the project. 13. For subprojects under the FIL component, Financial Intermediaries will be responsible for monitoring the implementation performance of subprojects, include monitoring their compliance with the terms and conditions of subproject agreements, requesting for remedial actions in the event of any noncompliance with respect to the implementation requirements of the environmental and social management system (ESMS). Using a competitive process agreed with ADB, Shuangyashan and Hegang cities selected Longjiang Bank Corporation (LBC), while Qitaihe city selected Harbin Bank Corporation (HBC) to act as its financial Intermediaries. Jixi selected both LBC and HBC as partner financial intermediary. Both financial intermediaries established a PIU with collaboration from key departments in their respective banks. 14. In addition, the provincial Guarantee Company Xinzheng Guarantee Company (XZGC) agreed to partner with the cities to offer guarantees conditional on cash collateral in form of a first loss facility from the cities in benefit of subprojects lacking sufficient collateral acceptable to commercial banks and, thus mobilize commercial funding for SMEs in the cities. 15. The roles and responsibilities of the different entities involved in project implementation and oversight are summarized in Table I-1 and described in detail in the project administration manual. Table : Roles and Responsibilities Project Implementation Organizations Heilongjiang Provincial Government Heilongjiang Development and Reform Commission (HDRC) Management Roles and Responsibilities Overall project sponsor and loan guarantor. In accordance with normal practices in the PRC, HPG has delegated oversight responsibility to the HDRC and HFD as set out below. HPG will also enter into Project Agreement with ADB and ensure that the cities will perform their obligations under the Project Agreement. Provide strategic guidance to city governments to ensure that the project activities are consistent with the provincial government s development objectives under 13th Five-Year Plan. Approves any required project management regulations regarding subproject selection and approval criteria. 3

130 Project Implementation Organizations Heilongjiang Provincial finance Department (HFD) Management Roles and Responsibilities Prepares and submits project foreign capital utilization plan for NDRC approval. Reviews and approves, on behalf of HPG, any changes in project scope. Participate in the overall PCR process Exercises oversight of project financial management arrangements. Enter into subsidiary Loan Agreement with MOF. Enters into an FIL On-lending agreement with the cities for the whole proceeds of the ADB loan. Establishes US dollar imprest (special) account to receive ADB loan proceeds and for on-lending to the cities in CNY. Approves project fund management regulations, covering on-lending, withdrawal, disbursement, repayment of project fund, and account management for the dedicated CNY Account. Reviews, endorses and submits withdrawal applications to ADB. Arranges for the annual audit of project, as stipulated in the Loan and Project Agreements entered into between PRC, HPG, the cities and ADB. Participate in the overall PCR process. Cities Project implementing agency of the loan. Establish the project leading group and PMO and provide staff resources with competence in technical, environmental and financial issues pertaining to the project implementation. Enter into Project Agreement with ADB and ensure ADB s requirements with respect to safeguards, financial management, anticorruption, and procurement during project implementation. Enters into Framework Cooperation Agreement with the respective financial Intermediary* to establish (i) Dedicated CNY Account for receiving ADB loan proceeds from the imprest (special) account, transferring the funds to Entrusted Loan accounts maintained at the respective financial Intermediary* as well as the Cash Collateral receiving the Guarantees from XZGC, (ii) Reflow Account for receiving the reflows (principal repayments and return of funds held in Cash Collateral to support Guarantees, and (iii) Interest Difference Account for receiving interest payments from Subprojects and payment of operating expenses of the PMO. Framework Cooperation Agreement will also specify roles and responsibilities of financial intermediaries in implementing the ESMS and the due diligence checks. Enter into Guarantee Framework Agreement with XZGC or another guarantee company to address the following (i) arrangements for the city government to provide Cash Collateral, and (ii) Collateral realization and sharing arrangements between Entrusted Loans and Guarantees. Enter into Entrusted Loan Agreements with Subborrowers and the designated financial intermediary. Enter into Subproject Agreements with the Subborrowers receiving Entrusted Loans or guaranteed co-financing loans to ensure the respective city government s obligations under the Project Agreement are implemented by the Subborrowers Coordinate BDS support to the selected borrowing SME during the project implementation via the PMOs Establish PMO and provide adequate staff, budget and training to city government and the respective PMO staff responsible for implementing the project. 4

131 A Use Project Leading Group Investment Decision making mechanism to approve the Subprojects based on the credit appraisal undertaken by the financial Intermediaries and after obtaining ADB s no objection. Establish a segregated IDA in the respective financial Intermediary to receive interest payments by the Subborrowers of Entrusted Loans and interest payments on Cash Collaterals supporting Guarantees by XZGC IDA funds may be used by the cities as directed by the Project Leading Group and suggested in para 58. Ensure that the PMO and the financial Intermediary implement the ESMS as agreed with ADB. Allocate adequate financing, to cover the operating expenses of the PMO until there are sufficient funds in the IDA. The project management expenses of the PMO would include; o Staff salaries and other routine expenses o Technical and environment due diligence of Subprojects. o Implementing the ESMS o Monitoring Subprojects during implementation. o Measurement and verification of energy savings achieved City PMO Reviews and screens Subproject applications according to the screening criteria and approval process for Subprojects described in the PAM. Prepare Subproject appraisal reports using the agreed format with ADB. Obtain ADB s no objection to the initial Subproject screening including safeguard categorization. After completing the Subproject appraisal, confirm the Subproject s compliance with the selection criteria with ADB. Monitors the implementation progress of Subprojects, including compliance with the terms and conditions of the Subproject Agreements. Request remedial actions in the event of any noncompliance with the obligations under Subproject Agreement with respect to ESMS implementation, financial management, anti-corruptions etc. Endorses Certifies the achievement of milestones mentioned in the respective subloan agreements for the purpose of subloan disbursement. Prepare the ADB loan withdrawal applications with the necessary supporting documents described in the disbursement section of this PAM and with support of the respective financial intermediary. Coordinate with the financial Intermediary and XZGC in the event of default by Subborrowers under any Subproject Agreement and initiate recovery of Entrusted Loans where a decision is made to accelerate recovery or exercise other remedies and payments made under the Guarantees. Prepares the operating procedures for IDA and utilizes the proceeds of IDA accordingly. Solicits proposals for candidates for subsequent batches of Subprojects. Submits all reporting requirements to ADB and retains supporting documentation. Represent the city government and coordinate the overall PCR process in Financial Intermediaries (LBC and HBC) conjunction with ADB Enters into Framework Cooperation Agreement with the respective cities as described under city government above. Maintain the Dedicated CNY Account of the respective city government to receive ADB loan proceeds and Reflow Account to receive reflows from the Subprojects to be on-lent to subsequent batches of Subprojects. Maintain a separate account (the IDA) for the respective city government to receive interest payments by the Subborrowers of Entrusted Loans, interest payments on Cash Collateral supporting Guarantees by XZGC. 5

132 Undertake the credit appraisal of assigned Subprojects including the market risk assessment, credit history check, financial assessment of the Subborrower Prepare credit appraisal reports for projects requiring Entrusted Loans or Guarantees for approval by the Project Leading Group of the respective cities. Propose to the respective city PMO / Project Leading Group how the debt financing to a particular Subproject can be split between Entrusted Loans and co-financing and whether Guarantees are required. Confirm that the Subprojects have required permits and approvals including environment approval and land allocation from local governments. Certifies the achievement of milestones mentioned in the respective subloan agreements for the purpose of subloan disbursement. Support the city PMO in preparing the ADB loan withdrawal applications with the necessary supporting documents described in the disbursement section of this PAM. Disburse the Entrusted Loans to Subborrowers within 3 days of receipt of ADB loan proceeds to the respective city s Entrusted Loan Account. Monitor interest payment and principal repayment of Entrusted Loans by the Subborrowers and report to the respective city any violations of the entrusted loan agreements or Subproject Agreements by the Subborrowers. Exercise remedies under Entrusted Loan Agreement [and co-financing agreement] on instructions from the respective city s Project Leading Group. Implements ESMS and ensures environmental and social safeguards compliance of all Subprojects under the project. Undertakes Subproject completion inspection and the preparation of evaluation reports on Subproject performance. Submits monthly reports to the respective city government and PMO on subloan disbursements and repayment. Prepare Consolidated Statement of Utilization of Funds of ADB loan proceeds for Entrusted Loans, Co-financing loans, and Cash Collateral using a template provided by ADB and provide the Statement of Utilization of Funds with supporting documents to external auditors. Prepare annual Statement of Utilization of Funds using a template to be provided by ADB to record the use of ADB loan funds for Entrusted Loans. Facilitate annual audit of statement of utilization of funds. Submit to ADB own externally audited financial statements. Use own credit risk management mechanism to monitor the respective city s exposure to credit risk, interest rate risk and exchange rate risk in connection with the project. Participate and facilitate PCR preparation For Subprojects that are supported only through a Cash Collateral and Guarantee for co-financing. 1) Enter into Guarantee Agreement with XZGC or another approved guarantee company and extend the co-financing. 2) Maintain in an escrow account the Cash Collateral provided by the respective city on behalf of XZGC to support the co-financing for Guarantees. For Subprojects receiving parallel Entrusted Loans and cofinancing secured separately, 3) Enter into Entrusted Loan Agreement with the respective city and Subborrower with cross default provisions to the Subproject Agreement between respective city and the Subborrower and to the co-financing loan where applicable. 6

133 A 4) Establish Entrusted Loan accounts in the name of the respective city for receiving funds from the Dedicated CNY Account to be on-lent to Subborrowers as Entrusted Loans. 5) Maintain collateral for Entrusted Loans distinct from the security of cofinancing loans and in the event of default by a Subborrower under the Entrusted Loan, liquidate the security on behalf of the respective city government. XZGC Enter into Guarantee Framework Agreement with the respective city government whereby the respective city government agrees to provide up to 20% of each guaranteed loan amount to XZGC to be used as Cash Collateral to support the Guarantees and XZGC agrees where a Subborrower has both an entrusted loan and guaranteed co-financing, to act as security agent for its Guarantee and the respective city government s Entrusted Loan, pari passu. Conduct detailed appraisal of the value of collateral offered by Subborrowers who seek Guarantees, and any other supplementary credit worthiness checks to those performed by the entrusted lender. Make a decision in consultation with the respective city government on the issuance of a Guarantee) where both XZGC and the respective city government consider loan risk or reward is reasonable. Act as the security agent for the Entrusted Loan and the Guarantee. Manage liquidation of collateral and distribution of proceeds to cover (pari passu [unless agreed otherwise with the consent of ADB]) the payments made under the Guarantee and any credit losses incurred by the respective city government with respect to its Entrusted Loan. Prepare a Statement of Utilization of Funds to record the Guarantees supported by Cash Collateral. Facilitate annual audit Furnish ADB with externally audited financial statement. Subborrowers (end borrowers of ADB Implement Subprojects in accordance with the subloan agreements and Subproject Agreement. funds) Ensure the Subprojects comply with the requirements assigned to Subborrowers under the ESMS. Undertake the procurement of goods and works in compliance with the procurement manual provided. Provide monitoring and evaluation information and participate in the completion review of the Subproject. ADB Development partner to HPG and supervises project implementation to ensure ADB interests are safeguarded. Disburses the loan in accordance with the agreed procedures upon receipt of duly authorized disbursement applications and necessary supporting documentation. Provides guidance to HPG and the cities to help resolve any implementation issues that arise. Reviews project progress reports and monitors implementation of ESMS. Reviews and endorses applications of new Subprojects wishing to use the Entrusted Loans or to receive Guarantees under the First batch and the Subprojects over the free limit to be agreed under the subsequent batches until the Loan Closing Date. Requires HPG and the cities to act on any non-compliance issues. Organizes the overall PCR, which is then jointly conducted with various agencies of HPG and related project stakeholders. ADB = Asian Development Bank, EIA = environmental impact assessment, ESMS = environmental and social management system, FIL = financial Intermediation Loan, HBC = Harbin Bank, HDRC = Heilongjiang Development and Reform Commission, HFD = Heilongjiang Provincial Department, HPG = Heilongjiang Provincial Government; LBC = Longjiang Bank, MOF = Ministry of finance, NDRC = National Development Reform Commission, PAM = 7

134 project administration manual, PCR = project completion report, PMO = project management office, PRC = People s Republic of China, REA = revolving escrow account, XZGC = Xinzheng Guarantee Company, SPS = ADB Safeguard Policy Statement Source: ADB MOU (24 March 7 April 2017) appendix (description of FIL component). 16. ADB loan proceeds will first flow into the main project account established by Heilongjiang Finance Department in the provincial level, and then will be converted from foreign currency into Renminbi and transferred to the revolving escrow account (REA) of each related city, which is to be established by the city s finance bureau within the related Financial Intermediary s local branch, for example, in LBC Hegang branch for Hegang s FIL component, and finally be extended to finance SME subprojects through three financing instruments: (i) entrusted loan, (ii) cofinancing loan (including entrusted loan and domestic bank s loan), and (iii) domestic debt financing (loan or loan guarantee) backed by Cash Collateral Facility (CCF), which is to be provided from part of the city s FIL proceeds. 8

135 A 17. A comprehensive fund flow chart is illustrated in Figure 1. Figure I-1 Integrated Fund Flow Chart ADB MOF On-lend Provincial Finance Dept. On-lend Municipal Proj. Leading Group credit enhancement A provincial bank as FI MFB's Escrow Acc. in local branch Open Municipal Finance Bur. Municipal PMO Approve EL Guarantee Co. or FI CCF CCF backed loan Cofinancing loan Entrusted loan Solicit and screen Project Pipeline (Renewed every round) Source: ADB Estimates B. Environmental and Social Management System 1. The purpose of the ESMS 18. Heilongjiang Green Urban and Economic Revitalization Project for the four coal-rich cities involving investment of ADB funds through LBC and HBC (financial intermediaries, both referred to as FI). Pursuant to ADB's Safeguard Policy Statement (2009) (SPS), each Financial Intermediary will be required to establish an appropriate environmental and social management system (ESMS) to be maintained as part of their overall management system to meet national legal framework and ADB's requirements for FIL using ADB funds. 19. The ESMS is a framework that integrates environmental and social risk management into Financial Intermediation s business processes, it will help two Financial Intermediaries to avoid and manage loans with potential environmental and social risks by conducting environmental and social due diligence prior to loan disbursement and adequate supervision of projects during the term of the loan agreement. These procedures can be written down in a stand-alone document or integrated in Financial Intermediation s existing risk management procedures. 20. The key components of the environmental and social management system that are assessed include: (i) environmental and social policies include as per ADB SPS specific to environmental, involuntary resettlement, indigenous peoples, and other social dimensions; (ii) 9

136 ADB prohibited investment activities list screening, project categorization, reviewing and approval procedure, consultation participation, disclosure requirements, and grievance redress mechanism; (iii) organizational capacity, include organizational structure, staffing, skills training, and competencies in environmental and social areas; and, (v) monitoring and reporting, may also include internal and external auditing requirements. 2. Environmental and Social Management Implementation Arrangement 21. According to the latest FIL arrangement, each city has established a PMO within the city s Development and Reform Commission for preparation and implementation of the entire ADB loan project. That PMO will undertake, on behalf of the related municipal government, the management functions for the FIL component. Candidate subprojects under the FIL component will be mainly solicited and be primarily checked for eligibility by the PMO of each city, and then referred to the Financial Intermediary for due diligence checks. 22. Two ESMS option being discussed. Based on the Aide Memoire of consultation mission and workshop conducted in January 2017 there were two level options for the establishment of ESMS, at each Financial Intermediary level or at each city s PMO level. A due diligence was conducted in the end of March 2017, involved the discussion of the preference of two options. All respondents interviewed expressed their preference of establishing Financial Intermediation cooperate level ESMS. 23. Based on most recent Financial Intermediation arrangement, two banks (LBC and HBC) are selected as the Financial Intermediaries for the project. Three out of the four cities has picked one bank for its Financial Intermediary, while Jixi selected both LBC and HBC as partner financial intermediary. It is noted that Hegang City and Shuangyashan City selected same bank (Longjiang) as its Financial Intermediary, while Qitaihe City selected Harbin Bank. 24. Establishment of corporate level (headquarter) Financial Intermediation ESMS is critical important. It was noticed that two Financial Intermediaries are state-owned banks, with ownership one (LBC) at provincial level and the other one (HBC) at city level. The different ownership level also represents different line of authorities and approving process and result in variation in decision making. It is therefore important to establish Financial Intermediation corporate level (headquarter) of ESMS to ensure the level of consistent in managing environmental and social risks and impacts among different Financial Intermediaries and its branches. During the ESMS implementation process, PMO major functions including: (i) as one of candidate subprojects resource, PMO will be responsible for reviewing and screening subproject applications then refer the subproject to the Financial Intermediary; (ii) at the project identification stage, if needed, PMO and the Financial Intermediary will work for a further rapid assessment of the subproject likely environmental, involuntary resettlement impacts, and effects on indigenous peoples of an investment.; and (iii) review and approve pre-selected subprojects from other resources. 10

137 A II. ENVIRONMENTAL AND SOCIAL MANAGEMENT POLICY AND APPLICABLE REQUIREMENTS 25. This chapter describes environmental and social management policies and applicable requirements that will be used for the LBC and HBC. The environmental and social management due diligence was conducted in the end of March This due diligence is to assess the environmental and social system of two banks which are selected as ADB s financial intermediaries for the implementation of the Heilongjiang Green Urban and Economic Revitalization Project in four coal-rich cities. 26. The focus of this due diligence is to assess the two Financial Intermediary Bank s system to manage the potential environmental and social impacts associated with their loans in line with ADB Safeguard Policy Statement and environmental and social requirements for Financial Intermediaries. A. Longjiang Bank and Harbin Bank 1. Longjiang Bank 27. LBC was founded in 2009 and is a Chinese provincial level bank. LBC headquartered in Harbin, administered 219 outlets, and covering the 13 cities in Heilongjiang province. Hegang City and Shuangyashan City selected LBC as its Financial Intermediary. 28. LBC s market position is facing the agriculture industry, for SMEs, and for the local economy. Its development strategies is taking the agricultural industrial finance as the pivot development direction, implementing the small microcredit, and performing well the community bank. 2. Harbin Bank 29. HBC was founded in 1997 and is a Chinese city level bank. It is a shareholding commercial bank listed in Hong Kong Stock Exchange. HBC headquartered in Harbin, administered 355 outlets, and has 17 branches in Tianjin, Chengdu, Shenyang, Dalian, Chongqing, etc., and 32 village and town banks in places like Beijing, Guangdong, Jilin, Gansu, and Heilongjiang. Qitaihe City selected HBC as its Financial Intermediary. 30. HBC insists on microcredit development strategy. By the end of 2016, the Bank s loans to small medium enterprises (SME) accounted for 83.2% of the Bank s total loans. 3. Two Bank s General Loan Process 31. Although the general loan process in both LBC and HBC are similar, the levels of approval authority are very different. For LBC, branch level has the authority to approval loan, while HBC requires all approvals at headquarter level. The general loan process flows follows: (i) receiving loan application; (ii) loan application client type selection; (iii) project assessment by bank s rating system and assessment modeling; (iv) internal pre-approval; (v) financial due diligence and investment report; (vi) risk assessment; (v) loan approval. 11

138 B. Current Financial Intermediation ESMS Status 32. All Financial Intermediaries have some knowledge about Green Credit Policy but have not developed ESMS following the voluntary Green Credit Guidelines. Financial Intermediaries received Green Credit Guidelines issued by China Banking Regulatory Commission (CBRC) in It is a macro level guidance for banks to adjust the credit structure, effectively prevent environmental and social risks, better serve the real economy, promote the transformation of the mode of economic development, and the adjustment of the economic structure. The guidance provide the definition of the term environmental and social risks as potential harm and risks related to energy consumption, pollution, land, health, safety, migrant relocation, ecological protection and climate change as business operation result of clients of banks. In article 4, it stated that Financial Intermediaries shall effectively identify, measure, monitor and control environmental and social risks in credit business activities, establish an environmental and social risk management system, and improve the relevant credit policies and systems and workflow management. 33. Financial Intermediaries have low level of awareness of ESMS. These Financial Intermediaries had limited or no experience working with international financial institution. Their awareness of international requirement for an ESMS is low. A formal ESMS include written policies, governing procedures were not developed. Although in Financial Intermediation s business operation system, some environmental and social are factored in their approving system. Their current environmental and social consideration is mainly focused on E&S permits, violation to laws or regulations through review of documents. C. Environmental and Social Management Policy and Applicable Requirements 1. Environmental and Social Management Policy 34. Each Financial Intermediary should prepare a written statement to commit its goal and efforts to manage environmental and social risk across its operations. The statement need to be approved by senior management and communicated to all relevant employees (operation staffs of two Financial Intermediaries) and clients. Suggested points to include in an environmental and social aspect in addition to any existing policy: (i) All activities undertaken by the Financial Intermediaries are consistent with its own environmental and social standards, as well as applicable requirements; (ii) All projects are reviewed against the applicable requirements; (iii) Projects are financed only when they are expected to be designed, built, operated and maintained in a manner consistent with the applicable requirements; (iv) Efforts are made to ensure that all projects are operated in compliance with the applicable requirements on an ongoing basis, while being financed by the Financial Institution; (v) Clients understand the ESMS policy commitments made by the Financial Intermediary in this area. 2. ADB SPS Policy 35. The ESMS includes ADB SPS (2009) policy objectives and principles for three areas: (i) the environment; (ii) involuntary resettlement; and (iii) indigenous peoples. 12

139 A a) Environmental Protection 36. The environmental objectives adopted for the project are to (i) ensure the environmental soundness and sustainability of subprojects and (ii) support the integration of environmental considerations into the subproject decision-making process. The environmental policy principles adopted for the project are as follows: (i) Use a screening process for each proposed subproject, as early as possible, to determine the appropriate extent and type of environmental assessment and/or audit required so that appropriate studies are undertaken commensurate with the significance of potential impacts and risks. (ii) Conduct an environmental assessment/audit for each proposed subproject to identify potential direct, indirect, cumulative, and induced impacts and risks to physical, biological, socioeconomic (including impacts on livelihood through environmental media, health and safety, vulnerable groups, and gender issues), and physical cultural resources in the context of the subproject s area of influence. Assess potential transboundary and global impacts, including climate change. (iii) Examine alternatives to the subproject s location, design, technology, and components and their potential environmental and social impacts and document the rationale for selecting the particular alternative proposed. Also consider the no subproject alternative. (iv) Avoid, and where avoidance is not possible, minimize, mitigate, and/or offset adverse impacts and enhance positive impacts by means of environmental planning and management. Prepare a corrective action plan (CAP) and/or an environmental management plan (EMP) that includes the proposed mitigation measures, environmental monitoring and reporting requirements, related institutional or organizational arrangements, capacity development and training measures, implementation schedule, cost estimates, and performance indicators. Key considerations for EMP preparation include mitigation of potential adverse impacts to the level of no significant harm to third parties, and the polluter pays principle. (v) Carry out meaningful consultation 6 with affected people and facilitate their informed participation. Ensure women s participation in consultation. Involve stakeholders, including affected people and concerned non-government organizations (NGOs), early in the subproject preparation process and ensure that their views and concerns are made known to and understood by decision makers and taken into account. Continue consultations with stakeholders throughout project implementation as necessary to address issues related to environmental assessment. Establish a grievance redress mechanism (GRM) to receive and facilitate resolution of the affected people s concerns and grievances regarding the subproject s environmental impact and performance. 6 Meaningful consultation is a process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. 13

140 (vi) Disclose a draft environmental assessment (including the EMP) in a timely manner, before subproject approval, in an accessible place and in a form and language(s) understandable to affected people and other stakeholders. Disclose the final environmental assessment, and its updates if any, to affected people and other stakeholders. (vii) Implement the EMP and monitor its effectiveness. Document monitoring results, including the development and implementation of corrective actions, and disclose monitoring reports. (viii) Do not implement subproject activities in areas of critical habitats or legally protected areas. In an area of natural habitats, there must be no significant conversion or degradation. Use a precautionary approach to the use, development, and management of renewable natural resources. (ix) Apply pollution prevention and control technologies and practices consistent with international good practices as reflected in internationally recognized standards such as the World Bank Group s Environmental, Health and Safety Guidelines. Adopt cleaner production processes and good energy efficiency practices. Avoid pollution, or, when avoidance is not possible, minimize or control the intensity or load of pollutant emissions and discharges, including direct and indirect greenhouse gases emissions, waste generation, and release of hazardous materials from their production, transportation, handling, and storage. Avoid the use of hazardous materials subject to international bans or phase-outs. Purchase, use, and manage pesticides based on integrated pest management approaches and reduce reliance on synthetic chemical pesticides. (x) Provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. (xi) To conserve physical cultural resources and avoid destroying or damaging them, do not implement subproject activities in areas that support physical cultural resources or in areas where chance-find physical cultural resources are expected to be found. b) Involuntary Resettlement 37. The involuntary resettlement policy objectives are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. The involuntary resettlement policy principles are: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their 14

141 A (iii) (iv) (v) (vi) entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. Improve, or at least restore, the livelihoods of all displaced persons through (i) landbased resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vii) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (viii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (ix) (x) Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other 15

142 (xi) stakeholders. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xii) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xiii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 38. The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons will be physically displaced from home or lose 10% or more of their productive or income-generating assets. c) Indigenous People (ethnic minorities) 39. The indigenous people policy objectives are to design and implement subprojects in a way that fosters full respect for ethnic minority peoples identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the ethnic minority communities themselves so that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of subprojects, and (iii) can participate actively in subprojects that affect them. The indigenous people policy principles include: (i) Screen early on to determine (i) whether Indigenous Peoples are present in, or have collective attachment to, the project area; and (ii) whether project impacts on Indigenous Peoples are likely. (ii) (iii) Undertake a culturally appropriate and gender-sensitive social impact assessment or use similar methods to assess potential project impacts, both positive and adverse, on Indigenous Peoples. Give full consideration to options the affected Indigenous Peoples prefer in relation to the provision of project benefits and the design of mitigation measures. Identify social and economic benefits for affected Indigenous Peoples that are culturally appropriate and gender and intergenerationally inclusive and develop measures to avoid, minimize, and/or mitigate adverse impacts on Indigenous Peoples. Undertake meaningful consultations with affected Indigenous Peoples communities and concerned Indigenous Peoples organizations to solicit their participation (i) in designing, implementing, and monitoring measures to avoid adverse impacts or, when avoidance is not possible, to minimize, mitigate, or compensate for such effects; and (ii) in tailoring project benefits for affected Indigenous Peoples communities in a culturally appropriate manner. To enhance Indigenous Peoples active participation, projects affecting them will provide for culturally appropriate and gender inclusive capacity development. Establish a culturally appropriate and gender inclusive grievance mechanism to receive and facilitate resolution of the Indigenous Peoples 16

143 A (iv) (v) (vi) concerns. Ascertain the consent of affected Indigenous Peoples communities to the following project activities: (i) commercial development of the cultural resources and knowledge of Indigenous Peoples; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of Indigenous Peoples. For the purposes of policy application, the consent of affected Indigenous Peoples communities refers to a collective expression by the affected Indigenous Peoples communities, through individuals and/or their recognized representatives, of broad community support for such project activities. Broad community support may exist even if some individuals or groups object to the project activities. Avoid, to the maximum extent possible, any restricted access to and physical displacement from protected areas and natural resources. Where avoidance is not possible, ensure that the affected Indigenous Peoples communities participate in the design, implementation, and monitoring and evaluation of management arrangements for such areas and natural resources and that their benefits are equitably shared. Prepare an Indigenous Peoples plan (IPP) that is based on the social impact assessment with the assistance of qualified and experienced experts and that draw on indigenous knowledge and participation by the affected Indigenous Peoples communities. The IPP includes a framework for continued consultation with the affected Indigenous Peoples communities during project implementation; specifies measures to ensure that Indigenous Peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures. (vii) Disclose a draft IPP, including documentation of the consultation process and the results of the social impact assessment in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected Indigenous Peoples communities and other stakeholders. The final IPP and its updates will also be disclosed to the affected Indigenous Peoples communities and other stakeholders. (viii) Prepare an action plan for legal recognition of customary rights to lands and territories or ancestral domains when the project involves (i) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples have traditionally owned or customarily used or occupied, or (ii) involuntary acquisition of such lands. (ix) Monitor implementation of the IPP using qualified and experienced experts; adopt a participatory monitoring approach, wherever possible; and assess whether the IPP s objective and desired outcome have been achieved, taking into account the baseline conditions and the results of IPP monitoring. Disclose monitoring reports 3. Financial Intermediation s Environmental and Social Safeguard Requirements 40. Financial Intermediation will ensure that:

144 (i) All subprojects using ADB funds are screened against the Prohibited Investment Activities List (PIAL) of the ADB Safeguard Policy Statement (Appendix 1), and that any subprojects involving activities included in the PIAL is not supported use the ADB funds; (ii) All subprojects with potentially significant environmental and/or social impacts are reviewed and evaluated against Safeguard Requirements 1-3 of the ADB s SPS (2009); (iii) All subprojects are reviewed and evaluated against the PRC laws, regulations, and standards on environment, occupational health, safety, involuntary resettlement and land acquisition, ethnic minorities, biodiversity, and physical cultural resources to confirm that they are in compliance; and (iv) All subprojects of future batches are screened against and meet the technical, financial, economic, environmental and social criteria presented in Appendix 5 of this ESMS. 4. PRC Legislative and Policy Framework 41. Subproject with ADB s fund will need to comply with all specific and relevant PRC national and local laws/policies and procedures. A list of major PRC laws and regulations on environment and social issues relevant to the ESMS summarized in Appendix 2. For the environment, these include environmental protection, planning, and impact assessment. For social issues, these include the management of land acquisition, involuntary resettlement, indigenous peoples, gender equality, anti-discrimination, labor issues (including employment opportunities and conditions, child labor), health and safety, impacts on communities, and establishment of grievance mechanism.

145 A III. ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURES 42. This ESMS sets out screening, categorization, and review procedures for subprojects that are being considered to be financed using ADB loan through Financial Intermediation. Subprojects that comply with all environmental and social requirements under the ESMS and meet other technical and financial requirements can be financed. This ESMS also establishes monitoring requirements for all subprojects to be financed by Financial Intermediation. A. ESMS Integrated into Financial Intermediation Operational Process 43. The bank loan assessment and approval procedures are mandated by Banking Regulation No.2 [General Rules for Loans] 1996, issued by the People's Bank of China. The main procedures as follows: 1) loan applications; 2) credit rating of a borrower; 3) investigation of loans; 4) examination and approval of loans; 5) entry into a loan contract; 6) provision of loans inspection after lending; and 7) repayment of a loan. 44. The ESMS must be integrated into Financial Intermediation s operational process. There is a clear four-phase credit process: i) application; ii) due diligence; iii) disbursement; and iv) follow-up. Each requires approval before proceeding to the next stage. The ESMS once established could be implemented in all phases of the credit process with identification, evaluation, mitigation, and monitoring. Figure III-1 ESMS Should Perfectly Match Financial Intermediation s Operational Process in Order to Be Effective Credit Process Credit application Due diligence Disbursement Follow-up ESMS Identification, including PMO review and screen if needed Prohibited Investment list Evaluation Mitigation Monitoring Revision of risk categorization Definition of loan conditions Evaluation of mitigation measures Client engagement E&S risk assessment Negotiation on mitigation measures Redefinition of mitigation measures Industry/client assessment Definition of mitigation measures Incorporation in loan agreement Preliminary risk categorization (A, B, C)

146 B. Environmental and Social Screening and Categorization 45. Candidate subprojects under the FIL component will be solicited from the following sources: (i) from the city government through the PMO, (ii) the financial intermediaries, (iii) the associated guarantee companies, or (iv) the business development services offices. Candidate projects will then be screened for eligibility by the respective financial intermediary. Once the applications from potential subprojects are received, the procedure described below will be followed for subproject screening and categorization. Does it involve an excluded activity as listed in the ADB prohibited investment activities list (see Appendix 1)? If yes, the project will NOT be considered for financing If no, the project CAN be considered for financing Does the project have a history of environmental and social incidents? If yes, the project will NOT be considered for financing If no, the project CAN be considered for financing 46. At the project identification stage, the assigned Financial Intermediary deal team/staffs (according two banks current credit process, usually by sub-branch bank Account Manager or Direct Business Team) will work with the subproject/subborrower to review industry sector and technical aspects of project, and conduct preliminary assessment of subproject E&S impacts. A checklist will be used to determine the significance of potential environmental and/or social impacts associated with the investment. The Environmental and Social Aspects Preliminary Screening Checklist is provided in Appendix 3. The completed checklist will provide to Financial Intermediation ESMS manager and PMO (if needed) for a further rapid assessment of the subproject likely environmental, involuntary resettlement impacts, and effects on indigenous peoples of an investment. The Environmental, Involuntary Resettlement and the Indigenous People Impact Checklists are provided in Appendix Once the checklists and the verification work are completed by the assigned Financial Intermediary deal team and ESMS manager, the subproject will be classified as one of the following categories: category A (with potential significant environmental and/or social impacts); category B (with less significant environmental and/or social impacts), and category C (with minimal or no impacts). IF the subproject was classified as Category A for any of the safeguard categories, it shall not be considered for financing by the ADB fund. The subproject categorization will be determined in accordance with the Environmental Impact Assessment Category List for Construction Project (Ministry of Environmental Protection, 2015) of PRC and approved by the environmental protection bureau. 48. As for environmental categorization, a potential subproject s category is determined by the category of its most environmentally sensitive component, including direct, indirect, cumulative, and induced impacts in the subproject s area of influence. Each proposed subproject is scrutinized as to its type, location, scale, and sensitivity and the magnitude of its current (if a subproject involves existing facilities) and potential environmental impacts. It shall be assigned to one of the following four categories according to SPS (2009): (i) Category A. A proposed subproject is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities

147 A (ii) subject to physical works. If the subproject was classified as environmental Category A, it shall not be considered for financing by the ADB fund. (iii) Category B. A proposed subproject is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination (IEE) is required for a category B project. (iv) Category C. A proposed subproject is classified as category C if it is likely to have minimal or no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed. (v) Category FI. Not applicable for this project. 49. For those involving involuntary resettlement, a resettlement plan is prepared that is commensurate with the extent and degree of the impacts: the scope of physical and economic displacement and the vulnerability of the affected persons. Projects are classified into the following four categories: (i) Category A. A proposed project is likely to have significant involuntary resettlement impacts. If the subproject was classified as involuntary resettlement Category A, it shall not be considered for financing by the ADB fund. (ii) Category B. A proposed project includes involuntary resettlement impacts that are not deemed significant. A resettlement plan, which includes assessment of social impacts, is required. (iii) Category C. A proposed project has no involuntary resettlement impacts. No further action is required. (iv) Category FI. Not applicable for this project. 50. The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons will be physically displaced from home or lose 10% or more of their productive or income-generating assets. 1. The impacts of an ADB-supported project on indigenous peoples is determined by assessing: the magnitude of impact in terms of customary rights of use and access to land and natural resources; socioeconomic status; cultural and communal integrity; health, education, livelihood, and social security status; and the recognition of indigenous knowledge; and the level of vulnerability of the affected Indigenous Peoples community. 51. The indigenous peoples impacts Projects are classified into the following four categories: (i) Category A. A proposed project is likely to have significant impacts on indigenous peoples. If the subproject was classified as indigenous people Category A, it shall not be considered for financing by the ADB fund. 1

148 (ii) Category B. A proposed project is likely to have limited impacts on indigenous peoples. An IPP, including assessment of social impacts, is required. (iii) Category C. A proposed project is not expected to have impacts on indigenous peoples. No further action is required. (iv) Category FI. Not applicable for this project. 52. The assigned Financial Intermediary deal team will ensure that the subproject company is fully aware of the applicable requirements as presented in Table III-1. For subprojects with potential impacts that are not deemed significant on environmental and/or social 7, the assigned deal team will advise the project company that (i) Safeguards 1-3 of the ADB Safeguard Policy Statement will apply including preparation of an initial environmental examination (IEE) report and environmental management plan (EMP), a social impact assessment (SIA), and/or an indigenous peoples plan (IPP), as well as public disclosure and/or stakeholder engagement plan if necessary; and (ii) the subproject company shall submit these reports to the Financial Intermediary deal team and ESMS manager for review. The Financial Intermediary will also submit these reports to ADB for review and clearance. Outlines for IEE and IPP report are shown in ADB SPS (2009). 53. When the FIL subproject involves greenfield (a totally new project) development or major extension, as it requires land acquisition and/or physical relocation, and likely to have significant environmental and/or social impacts, it shall not be considered for financing by the ADB fund. If subproject including incremental upgrades, rehabilitation and/or brownfield project (brownfield is maintenance or upgrading of existing assets without acquiring for additional land), Financial Intermediation should discreetly categorize such projects according to ADB s SPS as subproject may also involve high risk activities. Each subproject will have a separate category on environment, involuntary resettlement and indigenous peoples based on significance of impacts on each safeguard aspect. Financial Intermediation will ensure that necessary IEE report, EMP, SIA, IPP, and/or public disclosure and stakeholder engagement requirements have been fulfilled by the client. Categorize subproject includes reviewing IEE report (and its approval, if available) and other supporting documents, site visiting, as well as information/ data collection and verification. Category Risk Rating Table III-1 Environmental Safeguards Safeguard Requirements Involuntary Resettlement safeguards Indigenous Peoples Safeguards Category A (with potential Significant impacts) Exclude for ADB financing Exclude for ADB financing Exclude for ADB financing Category B (with less Significant impacts) Comply with national laws and ADB s PIAL Comply with national laws and ADB s PIAL Comply with national laws and ADB s PIA 7 If the subproject has significant impact and was classified as Category A, it shall not be considered for financing by the ADB fund 2

149 A Category Risk Rating Environmental Safeguards Involuntary Resettlement safeguards Indigenous Peoples Safeguards Category C Comply with national (with minimal laws and ADB s or no impacts) PIAL Source: Asian Development Bank Comply with national laws and ADB s PIAL Comply with national laws and ADB s PIAL 54. It will be the Financial Intermediary s task to appraise projects against detailed subproject selection criteria, covering technical, financial, and environmental and social safeguards adopted by the implementing agencies agreeable to ADB. 55. Once the safeguards categorizations are completed for the proposed subprojects, the specific selection criteria will be applied to the subproject to determine whether the subproject is qualified to be financed by Financial Intermediation (Appendix 5). As indicated in Appendix 5, any subproject that is (i) involve any land acquisition or housing demolition, (ii) had recently land acquisition and resettlement with outstanding issue, and (iii) cause labor retrenchment and redundancies will be excluded. Based on the subproject selection criteria, the Financial Intermediary deal team (or other designated staff), with support from the PMO (if needed) will present the pre-selection list of the potential subprojects and submit it to Financial Intermediary and PMO to review and approve the pre-selected subprojects. The ESMS manager (or other designated staff) at LBC or HBC shall inform ADB. C. Due Diligence 56. The Financial Intermediation ESMS manager (or other designated staff) should work with Financial Intermediation s deal team to undertake environmental and social due diligence. Depending on the complexity of the subproject, due diligence can be a desk review (for category C subprojects). For category B subprojects, these studies will be undertaken by an external agency/qualified person, and its scope and coverage will meet the requirements as embodied in national laws and regulations on environment and labor, as well as safeguard requirements of ADB. The due diligence for Category B subprojects will require an IEE to be conducted. This will include undertaking impact specific studies (environmental and social impact assessments), preparation of an Environmental and Social Management Plans (ESMP), including stand-alone Environmental Management Plan (EMP), as required, providing adequate capacities and resource to mitigate the impacts, ensure proper documentation, monitoring and reporting. The IEE, including EMP will be conducted by certificated environmental impact assessment institute contracted by the borrower and reviewed by local environmental protection bureau. The deal team should check the relevant certificate and approval and report to ESMS manager. 57. The subproject company must provide all requested information to the deal team, and should be able to demonstrate responsiveness with regard to the applicable environmental and social safeguard requirements. A due diligence report will be prepared for category B subprojects and the results of the due diligence will be reflected in the report to the Financial Intermediary, which will take into account these issues in clearance of the subproject. A suggested outline of an Environmental and Social Due Diligence Report will also be provided as Appendix The risk categorization result determines the evaluation process and follow up actions: Category C, B, A subprojects 3

150 Does the project comply with all applicable local, provincial/departmental and national laws on environment, health, and safety? If no, require the project to develop a plan for corrective actions (including periodic reporting and monitoring) within a reasonable timeframe to be included as a condition of disbursement in loan agreement Does the project have all the necessary permits? If yes, review copies of the permit and ensure that they are current valid If no, require project to obtain all necessary permits before proceeding with financing Category B, A subprojects Conduct site visit, using consultants as necessary Request action plan to address potential environmental and social risks (including periodic reporting and monitoring) within a reasonable timeframe Category A subprojects: if the project was classified as Category A for any of the safeguard categories, is shall not be considered for financing by the ADB fund. 59. All subproject investment agreements will contain appropriate environmental and social covenants requiring project to be in compliance in all material respects with the applicable environmental and social safeguard requirements as defined in above Table III-1. Moreover, the table below provides a sample E&S check list, Financial Intermediary should discuss with subborrower to check whether each items suitable for the subproject. If suitable, the E&S check list and relevant key performance indicator/requirements should be integrated into the investment agreement. Table III-2 Environmental and Social Check List 4

151 A Environmental and Social Check List Labour and working conditions Key Performance Indicator (KPI) / Major Requirements To collaborate standard of labour and working conditions in accordance with relevant ADB Social protection requirements; To promote fair treatment, non-discrimination and equal opportunities to workers (especially for female) in compliance with national employment and labour laws, regulations and other legal requirements; Improve an effective worker-management relationship. Occupational health and safety (OH &S) To minimize and prevent workplace incidents. To formulate subborrower s OH&S manual applicable for subproject use ADB fund. Compile and review site safety policy, inspections and reports to validate contractors are applying proposed rules. Land acquisition, resettlement, and livelihood restoration According to subproject screening criteria, the proposed subprojects must not involve any land acquisition or housing demolition; If identified project affected people suffer adverse impacts as a result of subprojects, compensation or other relief measures need to be implemented to mitigate negative impacts; The compensation packages should be designed to improve or at least restore the quality of life and livelihood of those affected people. 5

152 Environmental and Social Check List Indigenous people Stakeholder engagement Community grievance mechanisms and information disclosure Emergency preparedness and response Environmental and social requirements on contractors, subcontractors, and primary suppliers Pollution prevention Biodiversity management Resource efficiency and waste management Key Performance Indicator (KPI) / Major Requirements The subproject must not have any adverse impacts on indigenous people; Ensure affected indigenous people receive culturally appropriate social and economic benefits, and do not suffer adverse impacts as a result of subproject development. Continued stakeholder consultation will be undertaken during all phases of the subproject development; Local residents/stakeholders are aware of the subproject and in particular the planned schedule of activities most likely to affect them. Grievance procedures will be public noticed to stakeholders including details of the key contacts; Contractors and sub-contractors will be recommended to adopt the same system; Provide timely response and inform of the progress in dealing with complaint; Affected communities will be included in the ongoing reporting process to ensure that the community is knowledgeable about its resources. Reduce level of risk from emergencies; Eliminate adverse effects of emergencies and disasters at the workplace and community (including people, property, infrastructure, economy and environment); Contribute to the management of risks to enhance safety. Contractors and Sub-contractors are obligated to comply with E&S requirements, and applicable regulations relevant to project activities; Contractor must document and report occupational injuries, illnesses and fatalities. Compliance with relevant environmental procedures and regulations; Minimum emissions, such as noise, soil, air, water etc. If the subproject will lead to loss of biodiversity, project specific procedures must be developed with the aim to minimize impacts, habitat destruction, fragmentation, species isolation, and restoration of local ecological networks Subproject should develop and implement feasible measures for improving efficiency in consumption of energy, water and other material inputs; Used or damaged materials must be discharge according to the local rules and regulations; Subproject should conduct water resources assessment if involving new increased water demand and hold the approval for water abstraction issued by relevant water resources management authority 6

153 A Environmental and Social Check List Climate change risk assessment Key Performance Indicator (KPI) / Major Requirements If the proposed subproject will have varying degree of exposure to future climate change (e.g. increasing traffic or housing in areas that will be more prone to flooding, by encouraging settlement in earthquake zones). The subproject shall be initially screened for climate risk, and project designing will consider the results of the screenings. D. Compliance Monitoring and Reporting 60. After a category B subproject is approved, ESMS manager (or other designated staff) (i) communicates with the subproject company and confirms from time to time that the project company is undertaking the obligations of compliance with all applicable environmental and social safeguard requirements; and (ii) the Financial Intermediary will promptly report to ADB any actual or potential breach of the compliance requirements after becoming aware of it. The ESMS manager (or other designated staff) will visit the site to monitor the implementation of EMP, SIA, and/or Indigenous Peoples Plan if applicable. 61. Subproject s environmental and social performance will be evaluated on an annual basis. The benchmark for performance will be the ongoing compliance against the applicable environmental and social safeguard requirements. The Financial Intermediary will ensure that the subproject company prepares and submits an annual environmental and social monitoring report and will review and assess the subproject company s performance on environmental and social safeguard issues. 62. A suggested outline of an Annual Environmental and Social Monitoring Report for Subproject Company provided as Appendix Based on the review of the annual environmental and social monitoring reports for Category B subprojects prepared by the subproject company, the ESMS Manager will prepare an Annual ESMS Performance Report (Appendix 8) and submits it to ADB. E. ESMS Review and Continuous Improvement 64. The ESMS established by two Financial Intermediaries respectively needs to be reviewed periodically to ensure that it remains relevant and effective over time and incorporates a Financial Intermediation s evolving needs. This involves identifying potential difficulties with operational aspects of ESMS implementation and making changes as necessary; reviewing the scope of ESMS procedures to ensure that emerging environmental and social risks of projects are detected and identified during the due-diligence process; update ESMS to ensure that it remains relevant and effective over time and incorporates FI s evolving needs: Keep Senior Management informed on challenges, successes and other important issues associated with ESMS implementation Identify potential difficulties with operational aspects of ESMS implementation and make changes as necessary Review scope of ESMS procedures to ensure that emerging environmental and social risks of projects are detected and identified during due-diligence process Update ESMS to reflect revisions in applicable national laws on environment, social, as well as health and safety. 7

154 F. External Report to ADB 65. The Financial Intermediary should immediately report to ADB if subproject experience major accidents or incidents that have received media attention. 66. The Financial Intermediary should also inform ADB of any category A subprojects, and such category A subproject shall not be considered for financing by the ADB fund. 67. The Financial Intermediary will prepare an Annual ESMS Performance Report and submit to ADB (the suggested format provided as Appendix 8). This will be prepared based on (i) the environmental and social performance information provided by each subproject; (ii) Financial Intermediary front office staffs (whose job will involve collection and analysis the E&S related information, also post-loan client engagement) and/or ESMS manger s routinely subproject site inspection to check that all measures are being implemented (where this is not the case, corrective actions will be identified and checked for implementation at the next inspection); and (iii) Financial Intermediation ESMS manager undertake regular audits of compliance with the ESMS and overall implementation. The annual report including follow contents: Portfolio information Progress on ESMS implementation ESMS assessment procedures ESMS monitoring process Environmental and social issues associated with projects Non-compliance of projects and CAP(corrective action plan) IV. INSTITUTIONAL RESPONSIBILITY, RESOURCES, AND CAPACITY A. Financial Intermediary s Organization and Responsibilities 68. LBC and HBC will (i) have ultimate responsibility to implement the ESMS; (ii) oversight for environmental and social issues on all subprojects, (ii) ensure obtain adequate resources to undertake environmental and social management on all subprojects. 69. There are two layers of Financial Intermediary staffs who will be also responsible for the implementation of ESMS: 1) front office staffs whose job will involve collection and analysis the E&S related information, also post-loan client engagement; and 2) back office staffs who will make the determination on whether to proceed with a specific loan (mainly credit officers or risk controller). LBC and HBC both welcome the idea to designate an ESMS manager (preferably senior) at headquarter to oversight the ESMS implementation performance and also be the counterparty with ADB on E&S related issues. Financial Intermediaries should consider to retain external expertise to support at least at the initial stage of development. Table IV-1 Three Positions are Responsible for Financial Intermediation to Apply the ESMS 8

155 A Financial Intermediary Front office staffs Loan and credit officers Dialogue with client on E&S issues Evaluation of E&S risks at individual investment level Suggestion of E&S conditions for the client Monitoring of client s progress E&S Expertise (internal and/or external) Development/updating of procedures and documents Evaluation of E&S risks at portfolio level Assistance to loan and credit officers in evaluation and monitoring of clients Financial Intermediation ESMS Manager Commitment to policies and objectives Approval of suggested E&S conditions Internal and external communication 70. ESMS implementation could be integrated into Financial Intermediation s risk management and credit process procedures. LBC and HBC risk management and credit process illustrated as two figures below. As it was mentioned before, the general loan process in both banks are similar, but the levels of approval authority are very different. For LBC, branch level has the authority to approval loan, while HBC requires all approvals at headquarter level. 9

156 Figure IV-1 Longjiang Bank Risk Management and Credit Process Longjiang Bank Integrated Department Other Departments Credit Compliance & Risk Management Control Department Department Credit and Approval Committee Front Office: 4 Departments Rural, SME, Enterprise, Individual Departments Longjiang Bank City Branch Other Departments Enterprise Financial Department Beyond loan approval authority Compliance & Risk Control Department Branch Chief Manager One ticket veto Approval Technical Support Longjiang Bank Sub-branch Credit and Approval Committee Within loan approval authority Report Account Manager Due Deputy Chief Report Chief Manager diligenc Manager e Report Post-loan management Due Diligence Loan Application Subproject/ Subborrower Refer PMO Other Departments Legend Bank Department Committee Credit and approval process * The risk management and credit process might be slightly different in each branch Administration Source: ESMS Due diligence carried out from March 25 to , LBC headquarter, Hegang Branch and Shuangyashan Branch were interviewed. 10

157 A Figure IV-2 Harbin Bank Risk Management and Credit Process Harbin Bank Enterprise Department Risk Management Department Other Departments Credit Management Department Approval Technical Support Harbin Bank Qitaihe Branch Direct management Beyond loan approval authority Within loan approval authority Compliance & Risk Control Department Other Departments Enterprise Financial Department Report Credit and Approval Center Report Compliance & Risk Control Department Representatives from other Departments Credit and Approval Committee Harbin Bank Sub-branch Sales & Market Department Account Manager Due diligence Report Other Departments Legend Direct Business Team Bank Post-loan management Due Diligence Loan Application Subproject/ Subborrower Refer PMO Department Work Team/Committee Credit and approval process Administration Source: ESMS Due diligence carried out from March 25 to , HBC headquarter and Qitaihe Branch were interviewed 71. The ESMS Manager (or other designated staff) at Financial Intermediation will oversight environmental and social issues on all subprojects, and work with the management of Financial Intermediary to ensure adequate resources have been committed to allow for the effective implementation of the ESMS policy and procedures. Other roles and responsibilities for ESMS manager including: Communicate ESMS requirements; Ensure that all loan decisions are supported by appropriate environmental and social reviews; Participate in loan decision-making process Determine and include environment, health and safety covenants in loan agreements Report to ADB on accidents/incidents and on an annual basis ESMS performance report. 11

158 72. The Financial Intermediary will also ensure that the ADB is notified if and when the current ESMS Manager leaves that position, and will provide the ADB the name of the new ESMS manager. 73. Financial Intermediary s project director - The ESMS must be integrated into FIs operational process. There is a clear four-phase credit process: i) application; ii) due diligence; iii) disbursement; and iv) follow-up. Each requires approval before proceeding to the next stage. During the credit process, according to subproject industry classification, one corresponding Financial intermediary city branch front office department (for LBC, including Rural, SME, Enterprise or Individual Departments; while for HBC, it is Enterprise Financial Department) manager will be assigned as a project director to work together with ESMS manager at Financial Intermediary headquarter. The person s role and responsibility including supervise the loan process and subproject daily management, ensure subproject obtain all relevant licenses and permits, and responsible to ensure the subproject following the ESMS requirements. 74. Financial Intermediary s ESMS coordinator and safety person - To carry out the monitoring program of ESMS implementation for subproject, and is responsible to report the subproject environmental and social risks and impacts to Financial Intermediary s project director. Financial Intermediary s sub-branch staff will responsible for collection and analysis the E&S related information, also post-loan client engagement work. For LBC, it will be carried out by sub-branch Account Manager; for HBC, it is Direct Business Team combined by Sales & Market Department and Account Manager. The sub-branch staff also involved in the supervision of subproject s occupational health and safety issues by regular inspect whether subproject obtained or updated the relevant licenses and permits. 75. Financial Intermediary s ESMS technical support - the environmental and social risks, assessment, and management are still fairly new to two Chinese Financial Intermediaries. Financial Intermediary should consider to retain external expertise for the ESMS establishment and implementation, at least at initial stages. B. Resources and Capabilities 76. Both LBC and HBC should have and maintain a pool of qualified environmental and social consultants in Harbin (headquarter) and in cities be selected as Financial Intermediary, those consultant can be called upon to assist in conducting environmental and social reviews including conducting due diligence, risk assessment, provide recommendations on mitigation measures, and/or trainings, as appropriate. 77. Financial Intermediations standard loan agreement template will need to be revised to reflect Financial Intermediaries requirements on subproject E&S management. The Financial Intermediary s Legal Counsel will ensure that all loan agreements contain covenants requiring that projects are in compliance with applicable national laws on environment, health and safety. C. ESMS Implementation Budget and Training 78. To ensure effective ESMS implementation across the Financial Intermediation, it is necessary to allocate resources to prepare and distribute ESMS documentation and materials, to 12

159 A train staff on ESMS procedures, and to account for staff time to perform their ESMS responsibilities in their day-to-day duties. Budget resources and funds for ESMS Training on ESMS procedures, including training and capacity building need to provide skills on ADB categorization, and site selection procedures. Staff time for performing ESMS duties and responsibilities ESMS documentation and materials Organize ESMS training for staff, using consultants as needed, to explain: Purpose and ESMS overview Overview of investment portfolio by industry sector including environmental and social aspects of industry sectors ESMS procedures and specific staff expectations during implementation Updates/revisions to ESMS, as necessary D. Timeline for Financial Intermediation Establishment and Implementation of ESMS 79. The establishment of an integrated operation system and ESMS has been discussed and concluded as necessarily, feasible and appreciated cross all sections in the two Financial Intermediaries. However, the environmental and social risks, assessment, and management are still fairly new to Chinese Financial Intermediaries. The key to ensure timely completion are: 1) appropriate level of support/attention from senior management, a realistic completion date to be agreed upfront; 2) adequate of resources allocation, include resources to retain external expertise for the ESMS establishment and implementation, at least at initial stages; 3) designate an ESMS manager (preferably senior) at corporate level of each Financial Intermediary; 4) training program developed, tailored and delivered to front office staffs and back office staffs and corporate ESMS manager who involved in the implementation of the ESMS; and 5) consultation maintained with legal department for revision standard E&S language in the loan agreement. Key milestone for ESMS establishment and implementation are summarized in the follow table. In additional, ADB will also provide capacity development support for two Financial Intermediaries for the establishment of the ESMS, potential ADB sponsored or approved supporting areas including: i) external expertise for the ESMS establishment and implementation for two Financial Intermediaries; ii) on-the-job training for two Financial Intermediaries on environmental and social safeguard risk screening, categorization and assessment; and iii) subproject level training in order to facilitate the implementation of ESMS from subborrower aspect (including ESMS recordkeeping and reporting). 13

160 2. Table IV-2: Key Milestone for Financial Intermediation Establishment and Implementation ESMS Target/Completion Milestone Date Establishment of ESMS, including; -Commit ESMS policy and statements; -Designate an ESMS manager at senior level; -Allocate ESMS budget; -Incorporate the ESMS requirement in the standard loan agreement with borrower; Retain external expertise for the ESMS establishment and implementation (if needed) Development of ESMS training program and conduct ESMS training at headquarter and braches of the FIs Prior to first disbursement When necessary during ESMS implementation Within one month after establishment of ESMS Prepare Annual ESMS Performance Report and submit to ADB Annually during loan implementation E. Senior Management Approval 80. Finally, the entire ESMS, including the budget and training plan, should be reviewed and approved by Senior Management to ensure that it is integrated as part of the Financial Institution s standard operating procedures (see Appendix 9). 14

161 A V. ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM IMPLEMENTATION 81. To effectively implement an ESMS, Financial Intermediary will need to: Communicate across the bank the importance of the ESMS and its implementation Office memo/ , staff meeting, bulletin board, newsletter All staff take action in day-to-day duties Carry out ESMS responsibilities Apply ESMS procedures within risk management review and credit process for new loan applications if use ADB fund 3. ESMS implementation actions reference as the figure below. Figure V-1: ESMS Implementation Action New Subproject Involve activity on Prohibited Investment List? Yes, financing not considered No Had history of environmental and social incidents? Yes, financing not considered No Industry/client assessment Assign risk category (ADB SPS): Category A Category B Category C Due-diligence to evaluate environmental and social risks (compliance with national laws on environment, health and safety, site visits, and full-scale environmental and social impact review if necessary) Minimal environmental and social impact identified If category A, financing not considered Potential limited adverse environmental and social impacts identified Request action plan to address environmental and social risks Proceed with financing Evaluate environmental and social performance periodically 15

162 VI. GRIEVANCE AND REDRESS MECHANISM 82. The two FIs will establish a grievance redress mechanism (GRM) on site for handling environmental and social complaints, including complaint recording, consultation, issue investigation, mitigation action, follow-up, general timeframe for resolution and delegation of responsibilities. The ESMS manager will be responsible for (i) resolving appeals, complaints, and disputes concerning the environmental and social impacts of subprojects which have not been resolved by the front offices at branch level, and (ii) for coordinating, guiding and supervising the front offices in handling appeals, complaints, and disputes. 83. FIs will inform ADB of all complaints and actions under the GRM and include all relevant documents in its progress reports to ADB. 84. Any costs incurred to receive and document grievances will be paid by the FI. The grievance procedures will remain valid throughout the duration of project construction and the first two years of project operation. 85. The tracking and documenting of grievance resolutions by the FI will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) regular updating of the GRM database by the ESMS manager; (iii) processes for informing stakeholders about the status of a case; and (iv) a simple but effective filing system, so that data can be retrieved for reporting purposes, including reports to ADB. Figure VI-1 FI Grievance Redress Mechanism 16