C. Project Description [from section 3 of PCN] The proposed project would comprise of the following three components:

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date ISDS Prepared/Updated: 02/17/2012 I. BASIC INFORMATION A. Basic Project Data INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC6626 Country: China Project ID: P Project Name: Shandong Renewable Energy Project Task Team Leader: iming Peng Estimated Appraisal Date: September 13, Estimated Board Date: January 11, Managing Unit: EASCS Lending Instrument: Specific Investment Loan Sector: Other Renewable Energy (100%) Theme: Climate change (100%) IBRD Amount (US$m.): 100 IDA Amount (US$m.): 0 GEF Amount (US$m.): 0 PCF Amount (US$m.): 0 Other financing amounts by source: Borrower Financing Gap B. Project Objectives [from section 2 of PCN] The proposed project would contribute to achieving Shandong Province s Renewable Energy (RE) targets and demonstrate potential contribution of the private sector in RE development. Achievement of the development objective will be assessed through the successful installation of the RE capacity (MW) and sales of electricity to the power grid (GWh) by the private companies. The project is expected to contribute certain percent towards the achievement of the 12th FYP target in Shandong Province. The project indicators will be quantified during the project preparation stage. C. Project Description [from section 3 of PCN] The proposed project would comprise of the following three components: a. Contribution to the financing of a privately owned 150 MW wind farm. The proposed component will support the design and construction of a wind farm of approximately 150 MW in Binzhou City, developed by the Shandong Chengkou Salt Chemical Company Ltd. The wind

2 turbines will be installed along the existing cofferdams or access roads in an existing brine pan. The electricity will be delivered to the grid through an about 15 km 220 kv line to substation, which will be commissioned by the end of 2012 to reinforce the provincial grid. The transmission line is part of the project to be financed by counterpart fund. b. Contribution to the financing of a privately owned 12 MW biomass power plant. This proposed subcomponent will support the design and construction of a 12 MW biomass power plant in Jiaxiang County of Jining City, developed by Jiaxiang County Jiaxing Thermal Power Cogeneration Company (also called, Jiaxing Company ). The envisaged main biomass fuels will be cotton straw to be collec in a km radius around the plant site. The electricity will be delivered to the grid through an existing transmission line to an existing substation located about 2 km from the plant. c. Technical assistance (TA) component. During project preparation, the need for training and capacity building of the sponsors, especially the wind developer, will be assessed. The program will most likely be linked to optimum use of resources, preparation of the feasibility study, environmental and social programs, and preparation and negotiation of legal agreements that meet good industry practices, as well as the sustainable operation and maintenance of the plant(s) during the project implementation period. D. Project location (if known) The Project consists of two investment components: one is an about 150 MW wind farm located in Mashanzi Town, Wudi County, Binzhou City; and the other is a 12 MW biomass power plant located in Jiaxiang Town, Jiaxiang County, Jining City. Wudi County is located in the north of Shandong province towards the Bohai Sea. Its area covers north latitude 37º41 ~38º16 a east longitude 117º31 ~118º4, with a total area of 1,998 square kilometers and population of 440,000. The proposed wind farm be built within the existing brine pan of Shandong Chengkou Salt Chemical Company, located in Beihai Development Zone of Wudi County. Jiaxiang County is located in southwest of Shandong Province with an area of 973 square kilometers. It is a large agricultural county including 8 towns and 7 townships with a total population of 870,000. The proposed biomass power plant will be built at a reserved site adjacent to the existing Jiaxing Thermal Power Plant. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN] Both companies have basic capacity to implement the safeguard policies, as they have experience in conducting EA and land acquisition procedures for other investment projects. The companies have been certified with the ISO Environmental Management System. However, both companies are new to the Bank safeguard requirements, with limited knowledge of Bank s safeguard policies, although Shandong Provincial Government have more experience in processing Bank funded projects. Each company will have a Project Management Office with designated staff to oversee and coordinate the preparation and implementation of its subproject. Their staff will receive necessary trainings to be provided by the Bank team on the Bank s safeguard policies in the early stage of preparation; and experienced consulting agencies will be selected to assist the borrowers to prepare required safeguard documents. Terms of Reference for hiring these consulting agencies will be reviewed by the Bank team. Additional TA will be

3 discussed with the companies to ensure their capacity for safeguards management will be in place. F. Environmental and Social Safeguards Specialists Mr Youxuan Zhu (EASCS) Mr Feng Ji (EASCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) Chengkou Wind Farm: The physical components of the subproject include the installation of about 150 MW wind turbines, associated civil and electrical works, and about 15 km 220 kv transmission line to connect the wind farm to power grid. Apart from the 15 km transmission line, the physical investments will be located within the boundary of the Shandong Chengkou Salt Chemical Company. The project area features fish ponds and shallow artificial brines ponds with which to produce salts from sea water. The ponds are separated by cofferdams (2-4 meter wide) and access roads which have space for wind farm development. The establishment of the wind farm may cause negative impacts, mainly dust, noise and vibration during the construction period, and noise and visual impacts during operation period.. Jiaxiang Biomass Power Plant: The physical components of the subproject consist of a 12 MW biomass-fired power plant, straw collection and storage facilities, and associated electrical works. The electricity will be delivered to the grid through an existing transmission line to an existing substation (about 2 km from the plant). Four straw collection stations may be set up in the vicinity of the project site according to the preliminary fuel supply plan. No plantation of energy crops will be involved for the operation of the biomass power plant. The generation of the heat from boilers of the biomass power plant will depend solely on biomass residues; no heat from external sources or use of fossil fuels is required; Based on the environmental screening, the biomass subproject is not located in any environmental sensitive area. The potential negative impacts include dust, noise and vibration during the constructurion period, and noise, atmospheric emissions(e.g particulates, NOx), waster water discharge and transport of biomass fuel into the plant during the operation period. None of the impacts are likely sensitive,diverse, or unprecedented. One major positive environmental impact of the Project is the avoided air pollutants from coal-fired thermal power, which will be partially replaced by the RE generation from this Project. Estimate of the amount of avoided air pollutants and associated environmental benefits will be conducted in both the feasiblitatiy study report and EA report. This EA policy is triggered. Considering the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts, the EA Category is proposed as B. An EA and EMP will be preared for the proposed wind fa and biomass plant

4 Safeguard Policies Triggered Yes No TBD subprojects respectively based on applicable Chinese EA regulations, industrial regulations and standards, World Bank Safeguards Policies, and IFC EHS Guidelines. Natural Habitats (OP/BP 4.04) Based on the information provided in the preliminary feasibility study, the wind farm project will be in the premise of Chengkou Salt Chemical Company, and the project site is neither on birds migratory flyways, nor within birds habitats areas. Though one natural reserve-binzhou Shell-Dyke Island and Wetland National Nature Reserve is located in the vicinity of the project area, Chengkou Company confirmed that its wind farm project is outside of the protected area of the Nature Reserve. Whether the OP4.04 is triggered will be assessed after the finding of the EA is available. Forests (OP/BP 4.36) The project will not (i) have impacts on the health and quality of forests; (ii) affect the rights and welfare of people and their level of dependence upon or interaction with forests; (iii) aim to bring about changes in the management, protection, or utilization of natural forests or plantations, whether they are publicly, privately, or communally owned. Pest Management (OP 4.09) The project will not procure any pesticides nor will any use of pesticides result from the project. Physical Cultural Resources (OP/BP 4.11) It is not expected that project activities will adversely affect any above-ground artifacts with archeological, historical, religious or unique natural values as defined under OP Chance finds during construction might occur and relevant clauses will be included in all construction contracts. Indigenous Peoples (OP/BP 4.10) In Shandong Province, the ethnic minority population accounts for only 0.6 percent and 80% of them are Hui nationalities. In the project areas, no ethnic minority communities have been identified. Therefore, the policy is not triggered. Involuntary Resettlement (OP/BP 4.12) Chengkou Wind Farm: The land where the wind turbines will be erected is located within the boundary of the brine pan operated by Chengkou Salt Chemical Company, no new land acquisition and resettlement is expected. The brine pan covers an area of about 150 km2, of which the Company has obtained the land use certificates for about 60% of the whole area. The remaining 40% of land areas, where most of 150 MW of wind farm will be located, are reclaimed sea areas, and are currently used by the company for salt production under temporary lease agreement with local governments. For this part, the Involuntary Resettlement Policy is not triggered since all the land is government land. Nevertheless, proper acquisition procedures still need to be followed for the affected temporarily leased land areas, which include getting land pre-examination approval from Shandong Provincial Land Resources Department, and paying relevant fees for obtaining the land use rights for the affected land areas. The construction of the associated 15 km 220kV transmission line might involve limited land acquisition and resettlement. The scope of impacts for the transmission component has not yet been identified due to unavailability of a grid connection scheme. Based on completion of the final grid connection scheme for the subproject, an abbreviated resettlement plan will be

5 Safeguard Policies Triggered Yes No TBD prepared for the construction of 220kV transmission line, which will be funded by the project sponsor and built by the local power grid company. Jiaxiang Biomass Power Plant: The proposed biomass power plant will involve permanent acquisition of about 130 mu or 8.7 ha of farmland. All these land areas belong to Jiaxiang Village. According to local county officials, these land areas are located in the recently zoned industrial areas, and the preexamination of land use has been conducted by the Shandong Provincial Land Resources Department for the Project. Following the most recent national laws and provincial regulations, adequate compensation and rehabilitation measures will be provided to the affected households, which will be handled by Jiaxiang County Land Resources Bureau. In addition to the power plant, four straw fuel collection stations would be built in a km radius around the plant site based on the preliminary fuel supply plan. The area of each station is about 40 mu, and about 160 mu in total. Most of them will use existing warehouse or closed factories with no new land acquisition required. According to the Bank policies on involuntary resettlement, a resettlement action plan (RAP) needs to be prepared based on detailed impact survey and extensive consultation with affected people. The RAP should also cover other potential impacts caused by related facilities, such as transmission line connection, fuel straw collection facilities and water supply pipelines. The proposed biomass power plant will bring considerable social, economic and environment benefits to local areas and communities, which include (i) increasing income for local farmers from selling the agricultural wastes to the power company, and participating in the process of straw fuel collection, transportation and processing, (ii) facilitating local government s efforts in reducing burning of agricultural wastes and improving environment, and (iii) promoting local economy growth by creating employment. These potential social benefits need to be identified through a social assessment. Following the social assessment, proper actions and measures will be identified to ensure that concerned communities will benefit as much as possible from the proposed project. Safety of Dams (OP/BP 4.37) The project will not finance construction or rehabilitation of any dams as defined under this policy. Projects on International Waterways (OP/BP 7.50) Not applicable. Projects in Disputed Areas (OP/BP 7.60) Not applicable. Environmental Category: B - Partial Assessment III. SAFEGUARD PREPARATION PLAN

6 A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: N/A B. For projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 09/17/2012 C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. Environmental Safeguards: EA and EMP will be undertaken by experienced EA consulting firms for each subproject, with first draft available before the next preparation mission (February 2012), draft final report to be completed by pre-appraisal (June 2012), and final report at appraisal (September 2012). Social Safeguards: Social Assessment for Jiaxiang Biomass Power Plant and RAPs for both Jiaxiang Biomass and Chengkou Wind Farm will be carried out by experienced consulting team from Shandong University. The first draft reports of relevant documents will be completed and submitted to the Bank for review by the end of February 2012, draft final reports to be completed by pre-appraisal (June 2012), and final reports at appraisal (September 2012). IV. APPROVALS Signed and submitted by: Task Team Leader: Mr iming Peng 01/10/2012 Approved by: Regional Safeguards Coordinator: Mr John R. Butler 02/17/2012 Comments: Acting Regional Safeguards Advisor Sector Manager: Mr Paul Kriss 02/10/2012 Comments: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.