Environmental and Social Compliance Audit Report

Environmental and Social Compliance Audit Report

Final Report

December 2018

PRC: Geothermal District Heating Projects

Prepared by Stantec for Sinopec Green Energy Geothermal Development Co., Ltd. and the Asian

Development Bank

The environmental and social compliance audit 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. Your attention is directed to the “Terms of Use” section

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territory or area.

Environmental & Social Audit

Geothermal District Heating Projects

Shaanxi Province, China

December 2018

Environme nta l a nd Soc ia l Audit of

Ge othe rma l Distric t He a ting Proje c ts, Sha a nxi

Provinc e , China

FINAL REPORT

Clie nts Proje c t No :

87500485 Asia n De ve lopm e nt

Ba nk

Sinope c G re e n Ene rg y

G e o the rm a l

De ve lopm e nt Co ., Ltd.

(SG E)

Sum m a ry a nd ve rsion histo ry:

This p a g e is a re c o rd o f a ll re visio ns in this d o c ume nt.

All p re vio us issue s a re he re b y sup e rse d e d .

Da te : 11 De c e mb e r 2018

Ap p ro ve d b y:

_________________________________

Luke Lo ng , Pro je c t Dire c to r

(C hina C o untry Ma na g e r)

Re visio n De sc rip tio n By Re vie we d Ap p ro ve d Da te

V0 Dra ft Re p o rt Luke Lo ng

a nd Al Q ia o

Vo o nc ha i

C HIN

Luke Lo ng 22-O c t-18

V1 Fina l Re p o rt Luke Lo ng

a nd Al Q ia o

Vo o nc ha i

C HIN

Luke Lo ng 11-De c -18

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e ii

Corre c tive Ac tion Pla ns

The fo llo wing ta b le s summa rize ke y E&S issue s fo und fo r the site s visite d b y Sta nte c .

Ta ble 0 Finding s a nd Re c omme nde d CAP – Sha a nxi SG E

E&S Sa fe g ua rds Finding s/ Ga p Ana lysis Risk

Le ve l Re c omme nda tion

Re sponsible

Pe rsons

Comple ti

on

Timing 1

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

Ba se d o n inte rvie w with re p re se nta tive s o f

Sha a nxi SGE, c urre ntly the re a re

a p p ro xima te ly 200 p ro je c ts ma na g e d b y

the 7 Pro je c t Ma na g e me nt Offic e (PMO)

und e r Sha a nxi SGE. Ho we ve r, the re we re

o nly two d e d ic a te d p e rso nne l in He a lth,

Sa fe ty a nd Enviro nme nt De p a rtme nt

(HSED) o f Sha a nxi SGE, a nd o ne o f the m

ha s le ss tha n 6 mo nths o f e xp e rie nc e in HSE

ma na g e me nt. HSED is re spo nsib le fo r (1)

Co o rd ina tio n o f Enviro nme nta l Imp a c t

Asse ssme nt (EIA) p ro c e d ure s fo r a ll

p ro je c ts; (2) Imp le me nt a nd ma inta in the

inte rna l q ua lity ma na g e me nt syste m o f

Sha a nxi SGE; (3) Ove ra ll HSE sup e rvisio n a t

p ro je c t le ve l.

It is c o nsid e re d tha t the HSE re so urc e within

Sha a nxi SGE is a sse sse d a s no t suffic ie ntly

re so urc e d to ma na g e id e ntifie d imp a c ts

a nd risks.

M

Ap p o int a p p ro p ria te c a p a b le

so urc e s to HSED.

Sha a nxi SGE 9 mo nths MLC a nd

RWC:

Mg mt. time

Co st fo r

a d d itio na l

e mp lo yme

nt is no t

inc lud e d

a s no t

c le a r ye t

a t this

sta g e .

N/ A

1 Sug g e ste d c o mp le tio n time fra me fro m the sig ne d a g re e me nt o f the lo a n c o ntra c t.

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e iii



Re sponsible

Pe rsons

Comple ti

on

Timing 1

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Sta ke ho ld e r

e ng a g e me nt

SGE ha s no t c o nd uc te d sta ke ho ld e r

e ng a g e me nt a nd ke e p the re c o rd s.

M

SGE sho uld fo llo w the ESMS to

e sta b lish a me c ha nism to

id e ntify a nd e ng a g e

sta ke ho ld e rs, a nd ke e p the

re c o rd s.

Xia nya ng

PMO

3 mo nths Mg mt. time

a nd mino r

c o st

A sta ke ho ld e r

e ng a g e me nt

p la n in p la c e

La nd

Ac q uisitio n a nd

Invo lunta ry

Re se ttle me nt

It is a c o mmo n p ra c tic e tha t the p ro je c t

use s la nd fo r fre e p ro vid e d b y re a l e sta te

d e ve lo p e rs, ho we ve r, the re a re no

d o c ume nt sho wing this.

M

SGE sho uld p ut ‘ la nd p ro vid e d

b y re a l e sta te d e ve lo p e rs fo r

fre e ’ into the c o ntra c t with the

re a l e sta te d e ve lo p e rs.

Xia nya ng

PMO


a nd mino r

c o st

Co ntra c t with

re a l e sta te

d e ve lo p e rs

Grie va nc e

Re d re ss

The re is no syste m/ p ro c e d ure in p la c e to

re c o rd a nd tra c k the c o mp la ints ra ise d b y

the lo c a l c o mmunity. Thus, no re c o rd o f

p re vio us g rie va nc e s wa s a va ila b le fo r

re vie w, whic h is a no n-c o nfo rma nc e

a g a inst ADB sa fe g ua rd s.

L

De ve lo p a site -sp e c ific

g rie va nc e re d re ss p ro c e d ure to

c o lle c t a nd d o c ume nt a ny

c o mp la ints a nd g rie va nc e s

ra ise d b y the ne ig hb o ring

c o mmunity o f p ro je c t site , a s

we ll a s o the r sta ke ho ld e rs.

Xia nya ng

PMO

3 mo nths Mg mt. time A g rie va nc e

p ro c e d ure in

p la c e

La b o r a nd

So c ia l

Pro te c tio n

The wo rke rs a re p a id o ne a d d itio na l mo nth

o f sa la ry to o ffse t the c o mp e nsa tio n fo r

e xtra wo rking ho urs d uring the we e ke nd s,

whic h is a no n-c o mp lia nc e a g a inst le g a l

re g ula tio n.

M

The wo rke rs sho uld b e le g a lly

a nd a p p ro p ria te ly p a id fo r

o ve rtime wo rking (if a ny).

Xia nya ng

PMO


a nd mino r

c o st

Pa yro ll re c o rd s

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e iv

Ta ble 1 Finding s a nd Re c omme nde d CAP – Pro je c t JJYP



Re sponsible

Pe rsons

Comple ti

on

Timing 2

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t JJYP ha s no t d e ve lo p e d a

p ro je c t-sp e c ific c o mp re he nsive

e nviro nme nta l ma na g e me nt p la n. M

De ve lo p a p ro je c t-sp e c ific

c o mp re he nsive e nviro nme nta l

ma na g e me nt p la n.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t JJYP d id no t d o c ume nt/ mo nito r

the d isp o sa l o f the re ma ining d rilling

wa ste wa te r with mud a nd d rilling wa ste .

Re p o rte d ly the d rilling sub c o ntra c to r wa s

re sp o nsib le fo r the d isp o sa l a nd the

d e stina tio n o f the wa ste (whic h is no t

c a te g o rize d a s ha za rd o us wa ste a c c o rd ing

to the EIA d o c ume nts o f the p ro je c t) wa s a

munic ip a l la nd fill site a p p o inte d b y the

lo c a l g o ve rnme nt.

L

De ve lo p a nd imp le me nt a

p ro c e d ure fo c using o n wa ste

ha nd ling a c tivitie s c o nd uc te d

b y sub c o ntra c to r to p ro p e rly

sup e rvise , mo nito r a nd re c o rd

the wa ste d isp o sa l p ro c e ss.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e v



Re sponsible

Pe rsons

Comple ti

on

Timing 2

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

A p ro c e d ure fo r c o nd uc ting third -p a rty

c o nfirma to ry te sting o f ha za rd o us wa ste

c a te g o riza tio n o n the drilling wa ste a nd

se d ime nt fro m the vo rte x d e -sa nd e r is no t

in p la c e .

L


p ro c e d ure fo r c o nd uc ting third -

p a rty c o nfirma to ry te sting o f

ha za rd o us wa ste c a te g o riza tio n

o n the d rilling wa ste a nd

se d ime nt fro m the vo rte x d e -

sa nd e r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste

c a te g o riza tio n

He a lth a nd

Sa fe ty

At the time o f the site visit, o ne we ld e r d id

no t we a r ma sk whe n he wa s c o nd uc ting

we ld ing a c tivity. L

Enfo rc e the re g ula r HSE

sup e rvisio n c o nd uc te d a t the

c o mp a ny a nd PMO le ve l.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-

up / c o rre c tio n

re c o rd s

La b o r a nd

So c ia l

Pro te c tio n





re g ula tio n.

M




Xia nya ng

PMO


a nd mino r

c o st


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e vi



Re sponsible

Pe rsons

Comple ti

on

Timing 2

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Grie va nc e

Re d re ss







L








Xia nya ng

PMO


p ro c e d ure in

p la c e

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e vii

Ta ble 2 Finding s a nd Re c omme nde d CAP – Pro je c t YG SY



Re sponsible

Pe rsons

Comple ti

on

Timing 3

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t YGSY ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Re p o rte d ly the d rilling sub c o ntra c to r is

re sp o nsib le fo r the d isp o sa l o f the d rilling


Ho we ve r, Pro je c t YG SY ha s no me c ha nism

to tra c k/ mo nito r the d isp o sa l a nd

tra nsp o rta tio n p ro c e ss. M






the wa ste d isp o sa l p ro c e ss,

e sp e c ia lly fo r the mud a nd

d rilling wa ste d isp o sa l fo r the

Pro je c t YGSY.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r

;

c o rre sp o nding

re c o rd fo r the

d isp o sa l o f the

mud a nd

d rilling wa ste

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Ba se d o n the p ro je c t EIA d o c ume nt,

d o me stic wa ste wa te r sho uld me e t the

C la ss II limits o f Ye llo w Rive r Ba sin (Sha a nxi

Se c tio n) Inte g ra te Wa ste wa te r Disc ha rg e

Limit (DB 61/ 224-2011). Ho we ve r, b a se d o n

o nsite o b se rva tio n, d o me stic wa ste wa te r

wa s d ire c tly d isc ha rg e d into a p it with no

lining .

L

Re q uire the sub c o ntra c to r to

c o lle c te d a nd tre a t the

d o me stic wa ste wa te r p ro p e rly.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e viii



Re sponsible

Pe rsons

Comple ti

on

Timing 3

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste


Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Do me stic wa ste wa s re p o rte d ly c o lle c te d

b y lo c a l munic ip a l sa nita ry sta tio n o n a

re g ula r b a sis. Ho we ve r, d o me stic wa ste

wa s o b se rve d in the p it whic h a lso re c e ive s

d o me stic wa ste wa te r.

L



d o me stic wa ste p ro p e rly.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Wa ste c he mic a l (b e nto nite , Na 2CO3,

lub ric a nt, e tc . fo r d rilling fluid fo rma tio n)

p a c ka g ing ma te ria ls we re sto re d a t a n

unshe lte re d unp a ve d a re a with no

we a the r-p ro o f a nd sp ill c o ntro l fa c ilitie s.

L


p ro vid e we a the r-p ro o f a nd sp ill

c o ntro l fa c ilitie s (ind o o r a re a ) fo r

the wa ste c he mic a l p a c ka g ing

ma te ria ls.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e ix



Re sponsible

Pe rsons

Comple ti

on

Timing 3

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Lub ric a nt in d rums we re p la c e d a t a n


se c o nd a ry c o nta inme nt p ro visio n. L


p ro vid e se c o nd a ry c o nta inme nt

to the lub ric a nt sto ra g e a re a .

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

He a lth a nd

Sa fe ty

One we ld e r d id no t we a r ma sk whe n he

wa s c o nd uc ting we ld ing a c tivity.

L




HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

He a lth a nd

Sa fe ty

No e me rg e nc y re sp o nse d rill wa s

c o nd uc te d b y the d rilling sub c o ntra c to r

b e fo re c o mme nc e me nt o f the d rilling

a c tivity a s re q uire d b y Sha a nxi SGE.

L


c o nd uc t e me rg e nc y re sp o nse

d rill a t a time ly ma nne r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Drill re c o rd

Invo lunta ry

Re se ttle me nt

The re a re 48 m2 la nd fo r pro d uc tio n we lls

a nd re inje c tio n we lls p e rma ne ntly

a ffe c te d . Ho we ve r, the p ro je c t le a se d the

la nd inste a d o f a c q uire d the la nd .

Ne ithe r La nd Use Pre -a p p ro va l no r the

Co nstruc tio n La nd Use Ce rtific a te ha s no t

ye t b e e n o b ta ine d fo r the rura l g e o the rma l

he a ting p ro je c t, whic h is a no n-

c o mp lia nc e a g a inst PRC re g ula tio ns.

M

The p ro je c t ne e d s to fo llo w with

the lo c a l Bure a u o f La nd a nd

Re so urc e s (BOLAR) to o b ta in

La nd Use Pre -a p p ro va l a nd

Co nstruc tio n La nd Use

Ce rtific a te fo r the la nd

p e rma ne ntly a c q uire d .

Xia nya ng

PMO


a nd mino r

c o st

Re la te d

p e rmit o f la nd

a c q uisitio n o r

c o nfirma tio n

le tte r fro m

lo c a l BOLAR

o n no ne e d

fo r suc h

p e rmit.

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e x



Re sponsible

Pe rsons

Comple ti

on

Timing 3

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Sta ke ho ld e r

Eng a g e me nt

The re is no sta ke ho ld e r e ng a g e me nt

me c ha nism e sta b lishe d to o p e ra te .

Sp e c ific a lly, the re a re no e vid e nc e to sho w

the e ng a g e me nt with c o mmunity invo lve d

in la nd le a se , ne ithe r e ng a g e me nt with

lo c a l BOLAR re g a rd ing using la nd le a se

a p p ro a c h inste a d o f la nd a c q uisitio n.

M

The p ro je c t ne e d s to c o nd uc t

e ng a g e me nt with lo c a l

c o mmunitie s re g a rd ing la nd

le a se , a nd e ng a g e with lo c a l

BOLAR re g a rd ing la nd

a c q uisitio n.

Xia nya ng

PMO


a nd mino r

c o st

Re c o rd s a nd

d o c ume nta tio

n o f

e ng a g e me nt

p ro c e ss,

me e ting

minute s e tc .

Ta ble 3 Finding s a nd Re c omme nde d CAP – Pro je c t WSQ X



Re sponsible

Pe rsons

Comple ti

on

Timing 4

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pe rmit

The p ro je c t ma na g e me nt re p o rte d tha t

the Wa te r Ab stra c tio n Pe rmit wa s in

a p p lic a tio n p ro c e ss a t the time o f the site

visit a nd is e xp e c te d to b e issue d in

No ve mb e r.

M

Lia ise c lo se ly with the Xi’ a n

Wa te r Re so urc e Bure a u a nd

e nsure the Wa te r Ab stra c tio n

Pe rmit is o b ta ine d b e fo re the

o p e ra tio n o f the p ro je c t.

Linto ng PMO 3 mo nths MLC a nd

RWC:

Mg mt. time

Wa te r

Ab stra c tio n

Pe rmit

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t WSQX ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e xi



Re sponsible

Pe rsons

Comple ti

on

Timing 4

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t WSQX d id no t

d o c ume nt/ mo nito r the d ispo sa l o f the

re ma ining d rilling wa ste wa te r with mud

a nd d rilling wa ste . Re p o rte d ly the d rilling

sub c o ntra c to r wa s re sp o nsib le fo r the

d isp o sa l a nd the fina l d e stina tio n o f the

wa ste (whic h is no t c a te g o rize d a s

ha za rd o us wa ste a c c o rd ing to the EIA

d o c ume nts o f the p ro je c t) wa s a munic ip a l

la nd fill site a p p o inte d b y the lo c a l

g o ve rnme nt.

L







HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e xii

Ta ble 4 Finding s a nd Re c omme nde d CAP – Pro je c t BSW



Re sponsible

Pe rsons

Comple ti

on

Timing 5

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t BSW ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t BSW d id no t d o c ume nt/ mo nito r




re sp o nsib le fo r the d isp o sa l a nd the fina l






L







HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Pa g e xiii



Re sponsible

Pe rsons

Comple ti

on

Timing 5

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste


Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Page I

Ta ble o f C onte nts

1.0 Introduc tion .................................................................................................................. 1

1.1 Proje c t Ba c kg round .................................................................................... 1

1.2 The Compa ny .............................................................................................. 1

1.3 Obje c tive s of the Audit .............................................................................. 2

1.4 Re port Struc ture ........................................................................................... 2

1.5 Limita tions ..................................................................................................... 3

2.0 Sc ope a nd Me thodolog y ............................................................................................ 4

2.1 Applic a ble Sta nda rds ................................................................................ 4

2.2 Sc ope of the Audit ...................................................................................... 4

2.3 Approa c h ..................................................................................................... 6

2.4 Risk Ca te g oriza tion ..................................................................................... 7

3.0 Complia nc e Audit of Se le c te d Proje c ts .................................................................... 8

3.1 Ove rvie w ...................................................................................................... 8

3.2 Proje c t Le ve l He a lth, Sa fe ty a nd Environme nta l (HSE) a nd Soc ia l

Ma na g e me nt ............................................................................................................. 10

3.3 Proje c t Jing Ji Yi Pin (京基一品) ................................................................ 13

3.4 Proje c t Ya ng Gua ng Sha ng Yua n .......................................................... 25

3.5 Proje c t We i Shui Qu Xia ng (渭水曲项)..................................................... 36

3.6 Proje c t Bi Shui Wa n (碧水湾) ..................................................................... 46

3.7 Conc lusions a nd Ke y Finding s ................................................................ 57

4.0 Corre c tive Ac tion Pla n .............................................................................................. 62

4.1 Re c omme nde d CAP for Audite d Proje c ts ............................................ 62

Anne x A：List of Doc ume nts Re vie we d ................................................................ 74

Anne x B: List of Inte rvie we e s ................................................................................... 75

Anne x C: Photo Log for Proje c ts Visite d ................................................................ 76

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Page II

List o f Ta ble s a nd Fig ure s

Ta ble 1- 1 Summa ry of the Proje c ts .............................................................................. 2

Ta ble 2- 1 De finition for Risk Ca te g oriza tion ................................................................ 7

Ta ble 3- 1 Summa ry of Finding s by Proje c t ............................................................... 10

Ta ble 3- 2 Proje c t c ompone nts a nd sta tus a s of 9 Oc tobe r 2018 .. Error! Bookma rk

not de fine d.4

Ta ble 3- 3 Pe rmit Complia nc e Sta tus of the Proje c t JJYP ......... Error! Bookma rk not

de fine d.15

Ta ble 3- 4 Proje c t c ompone nts a nd sta tus a s of 9 Oc tobe r 2018 .......................... 26

Ta ble 3- 5 Pe rmit Complia nc e Sta tus of the Proje c t YGSY ....... Error! Bookma rk not

de fine d.26


Ta ble 3- 7 Pe rmit Complia nc e Sta tus of the Proje c t WSQX ...... Error! Bookma rk not

de fine d.Error! Bookma rk not de fine d.


Ta ble 3- 9 Pe rmit Complia nc e Sta tus of the Proje c t BSW ......... Error! Bookma rk not

de fine d.48Error! Bookma rk not de fine d.

Ta ble 3- 10 E&S Finding s ............................................................................................... 58

Ta ble 4- 0 Finding a nd Re c omme nde d CAP – Sha a nxi SGE ... Error! Bookma rk not


Ta ble 4- 1 Finding a nd Re c omme nde d CAP – Proje c t JJYP .... Error! Bookma rk not


Ta ble 4- 2 Finding a nd Re c omme nde d CAP – Proje c t Erro r! Bo o kma rk no t

d e fine d .YGSY .......................... Erro r! Bo o kma rk no t d e fine d .……………………….66


d e fine d .WSQX ............................................................ Error! Bookma rk not de fine d.69


d e fine d .BSW ............................................................... Error! Bookma rk not de fine d.71

Fig ure 3- 1 Proje c t Loc a tion ........................................................................................... 9

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Page III

Ac ronyms

Ac ro nym s De finition

ADB Asia n De ve lo p me nt Ba nk

ADB’ s SPS ADB Sa fe g ua rd Po lic y Sta te me nt

AG E Arc tic G re e n Ene rg y C hina Ehf.

AG EC PL Arc tic G re e n Ene rg y C o rp o ra tio n Pte . Limite d

C AI C o mp le tio n Ac c e p ta nc e Insp e c tio n

C AP C o rre c tive Ac tio n Pla n

HSE He a lth, Sa fe ty a nd Enviro nme nta l

HSES He a lth, Sa fe ty, Enviro nme nta l a nd So c ia l

EIA Enviro nme nta l Imp a c t Asse ssme nt

EPB Enviro nme nta l Pro te c tio n Bure a u

E&S Enviro nme nta l a nd So c ia l

ESMP Enviro nme nta l a nd So c ia l Ma na g e me nt Pla n

ESMS Enviro nme nta l a nd So c ia l Ma na g e me nt Syste m

HC s He a t C e ntra ls

HR Huma n Re so urc e

IFC Inte rna tio na l Fina nc e C o rp o ra tio n

ILO Inte rna tio na l La b o r O rg a niza tio n

ISO Inte rna tio na l Sta nd a rd iza tio n O rg a niza tio n

MLC Mo st Like ly C a se s

PPE Pe rso na l Pro te c tio n Eq uip me nt

PRC Pe o p le ’ s Re p ub lic o f C hina

Q HSE Q ua lity, He a lth, Sa fe ty a nd Enviro nme nta l

RMB Re nminb i

RWC Re a so na b ly Wo rst C a se s

SG E Sino p e c G re e n Ene rg y G e o the rma l De ve lo p me nt C o ., Ltd .

SIA So c ia l Imp a c t Asse ssme nt

SPS Sa fe g ua rd Po lic y Sta te me nt

Pro je c t Numb e r 87500485 11 De c e mb e r 2018 Page IV

Units

Ac ro nym s De finition

Mu 1 Chine se mu = 667 m2

Ha He c ta re

km Kilo me te r

km2 Sq ua re kilo me te rs

M Me te r

m2 Sq ua re me te rs

m3 Cub ic me te rs

sq m Sq ua re me te rs

Pro je c t Numb e r 87500485 11 De c e mb e r 2018

Pa g e 1

1.0 Introduc tion

1.1 Proje c t Ba c kg round

The Asia n De ve lo p me nt Ba nk (ADB) ha s a p p ro ve d a lo a n fo r Ge o the rma l Distric t

He a ting Pro je c ts d e ve lo p e d b y Sino pe c Gre e n Ene rg y Ge o the rma l De ve lo p me nt Co .,

Ltd . (“SGE”).⑥ The SGE Enviro nme nta l a nd So c ia l Ma na g e me nt Syste m (ESMS) re q uire s

it to und e rta ke a n Enviro nme nta l a nd So c ia l Aud it fo r the p ro p o se d p ro je c ts a he a d o f

the a p p lic a tio n to d ra wd o wn ADB fund s.

SGE ha s p ro p o se d a list o f p ro je c ts fo r the first d ra wd o wn o f ADB fund s. The p o te ntia l

fund ing will sup p o rt the c o nstruc tio n a nd the o p e ra tio n o f fo ur g e o the rma l he a ting

p ro je c ts (“ the Pro je c ts” ) in Xia nya ng C ity a nd Xi’ a n City, Sha a nxi Pro vinc e , Pe o p le ’ s

Re pub lic o f China (PRC). The d e ve lo p e r, Sha a nxi Sino p e c Gre e n Ene rg y Ge o the rma l

De ve lo p me nt Co ., Ltd . (“Sha a nxi SGE” o r “ the Co mp a ny” ), is a sub sid ia ry o f SGE.

In Oc to b e r 2018, Sta nte c Enviro nme nta l Eng ine e ring (Sha ng ha i) Co ., Ltd . (“Sta nte c ” )

wa s c o mmissio ne d b y ADB to c o nd uc t a n Enviro nme nta l a nd So c ia l a ud it a t the fo ur

g e o the rma l he a ting p ro je c ts a s p ro p o se d b y SGE. This re p o rt p re se nts the find ing s o f the

Enviro nme nta l a nd So c ia l a ud it (“ the Aud it” ) a t p ro je c t le ve l a g a inst SGE ESMS

re q uire me nts, PRC re g ula to ry E&S re q uire me nts a nd ADB’ s Sa fe g ua rd Po lic y Sta te me nt

(SPS).

1.2 The Compa ny

SGE is a jo int ve nture b e twe e n Sino pe c Sta r a nd Artic Gre e n Ene rg y China (AGE), whic h

wa s e sta b lishe d in 2006. SGE ha s se t up five sub sid ia rie s in Sha a nxi Pro vinc e , He b e i

Pro vinc e , Sha nd o ng Pro vinc e , Tia njin Munic ipa lity a nd Be ijing Munic ip a lity. SGE ho ld s a

le a d ing p o sitio n in the PRC ’ s g e o the rma l he a ting ma rke t.

Sha a nxi SGE is a who lly o wne d sub sid ia ry o f SGE. Sha a nxi SGE wa s e sta b lishe d in 2015

a nd ha s a to ta l o f 7 Pro je c t Ma na g e me nt Offic e s (PMOs) with a to ta l he a ting a re a o f

5.7 millio n sq ua re me te rs (m 2) a s o f 2017. The Pro je c ts a re lo c a te d in Xia nya ng City a nd

Xi’ a n City, a nd a re ma na g e d b y the Xia nya ng PMO, Xi’ a n C ity PMO a nd We ina n PMO,

⑥ Se e http s:/ / www.a d b .o rg / p ro je c ts/ 51186-001/ ma in.

https://www.adb.org/projects/51186-001/main


Pa g e 2

re sp e c tive ly. Ple a se re fe r to the ta b le b e lo w fo r a summa ry o f the Pro je c ts to whic h ADB

fund s will b e d ire c te d .

Ta ble 1- 1 Summa ry o f the Pro je c ts

Pro je c t Na me Lo c a tio n

No . o f

G e o the rma l

Pro duc tio n

We lls

No . o f

Re inje c tio n

we lls

No . o f He a t

Ce ntra ls

Pipe line s

(km)

Pro po se d

He a ting

Are a (m 2)

Jing Ji Yi Pin

(京基一品)

Xia nya ng

C ity 1 1 2 0.6 210,400

Ya ng G ua ng

Sha ng Yua n

(阳光尚苑)

Xia nya ng

C ity 2 2 2 2.5 253,300

We i Shui Q u Xia ng

(渭水曲项) Xi’ a n C ity 1 1 1 1 150,000

Bi Shui Wa n

(碧水湾) Xi’ a n C ity 1 1 1 0.5 250,000

1.3 Obje c tive s of the Audit

The o b je c tive o f the Aud it is to fulfil the re q uire me nt in SGE’ s Enviro nme nta l a nd So c ia l

Ma na g e me nt Syste ms (ESMS) in a c c o rd a nc e with ADB SPS 2009. On this b a sis, the Aud it

inc lud e s:

• E&S c o mp lia nc e c he c ks o f the Pro je c ts a g a inst PRC re g ula to ry E&S

re q uire me nts a nd ADB’ s Sa fe g ua rd Po lic y Sta te me nt;

• Id e ntific a tio n o f a ny E&S g a p s, issue s a nd risks tha t ma y ha ve a ma te ria l

influe nc e o n the p ro je c t p la nning , c o nstruc tio n a nd o p e ra tio n; a nd

• De ve lo p me nt o f a p p ro p ria te c o rre c tive a c tio n p la ns (C APs) fo r the Pro je c ts.

1.4 Re port Struc ture

The re ma inde r se c tio ns o f this re p o rt a re struc ture d a s fo llo ws:

Se c tio n 2: Sc o p e a nd me tho d o lo g y o f this Aud it;

Se c tio n 3: Ke y find ing s o f this Aud it; a nd

Se c tio n 4: C o rre c tive a c tio n p la ns.

This Aud it re p o rt is supp o rte d b y the fo llo wing a nne xure s:

Anne x A : List o f Do c ume nts Re vie we d ;


Pa g e 3

Anne x B: Ta b le o f Inte rvie we e s;

Anne x C : Pho to Lo g fo r Pro je c ts Visite d .

1.5 Limita tions

The a ud it re p o rt wa s p re p a re d in a c c o rd a nc e with a sc o p e o f wo rk a g re e d b y the ADB

a nd SGE. The re sults o f the a ud it a re b a se d o n c o nd itio ns a t the time o f o nsite visits a nd

d o c ume nts p ro vide d b y the p ro je c t c o mpa ny. A c ha ng e in a ny o f the se c o nd itio ns

ma y a lte r the find ing s, o b se rva tio ns a nd re p o rt c o nte nt p re se nte d he re in b y Sta nte c . A

site wa lkthro ug h, b y na ture , is limite d in its a b ility to fully a sse ss p o te ntia l Enviro nme nta l,

He a lth, Sa fe ty a nd So c ia l (HSE&S) lia b ilitie s o r c o nc e rns a sso c ia te d with a p ro pe rty o r

o p e ra tio n. Furthe r inve stig a tio ns wo uld b e re q uire d to id e ntify the p re se nc e o r a b se nc e

o f p o te ntia l HSE&S lia b ilitie s, b ut a re b e yo nd de te c tio n b y pe rfo rma nc e o f the sc o pe o f

this Aud it p ro je c t. La ws a nd re g ula tio ns, if re fe re nc e d in this re p o rt, a re p ro vide d fo r

info rma tio n purp o se s o nly a nd sho uld no t b e c o nstrue d a s le g a l o p inio n o r

re c o mme nda tio n.


Pa g e 4

2.0 Sc ope a nd Me thodolog y

2.1 Applic a ble Sta nda rds

This Aud it wa s unde rta ke n in a c c o rd a nc e with na tio na l a nd re le va nt inte rna tio na l

re g ula tio ns / tre a tie s / g uide line s a nd ADB’ s E&S Sa fe g ua rd s p o lic ie s, inc lud ing :

1) ADB Sa fe g ua rd Po lic y Sta te me nt (SPS) (inc lud ing SPS SR1, SR2, SR3 & SR4), June

2009;

2) ADB’ s Pro hib ite d Inve stme nt Ac tivitie s List (Ap p e nd ix 5 o f ADB SPS);

3) ADB’ s So c ia l Pro te c tio n Stra te g y, 2001;

4) ADB G e nd e r a nd De ve lo p me nt Po lic y, Ma y 1998;

5) ADB Pub lic C o mmunic a tio n Po lic y, O c to b e r 2011;

6) Ap p lic a b le Wo rld Ba nk G ro up ’ s Enviro nme nta l, He a lth a nd Sa fe ty G uid e line s

a nd Se c to r Sp e c ific G uid e line s. The se inc lud e b ut no t limite d : HSE G e ne ra l

G uid e line s a nd HSE G uid e line s fo r G e o the rma l Po we r G e ne ra tio n;

7) Ap p lic a b le na tio na l, p ro vinc ia l a nd lo c a l la ws a nd re g ula tio ns p e rta ining to

e nviro nme nt, so c ia l (inc lud ing la nd a c q uisitio n a nd re se ttle me nt), he a lth a nd

sa fe ty a nd la b o r in the PRC ; a nd

8) Re le va nt inte rna tio na l tre a tie s to whic h C hina is a sig na to ry suc h a s the UN

De c la ra tio n o n the Rig hts o f Ind ig e no us Pe o p le s, Inte rna tio na l C o ve na nt o n

Ec o no mic , C ultura l a nd So c ia l Rig hts. Ap p lic a b le inte rna tio na l c o nve ntio ns in

whic h the PRC is a sig na to ry to , inc lud ing the c o nve ntio ns o f the Inte rna tio na l

La b o r O rg a niza tio n whic h ha ve b e e n ra tifie d b y C hina :

• C 100 – Eq ua l Re mune ra tio n C o nve ntio n, 1951 (No . 100);

• C 111 – Disc rimina tio n (Emp lo yme nt a nd O c c up a tio n) C o nve ntio n, 1958

(No . 111);

• C 138 – Minimum Ag e C o nve ntio n, 1973 (No . 138) (minimum a g e

sp e c ifie d : 16 ye a rs); a nd

• C 182 – Wo rst Fo rms o f C hild La b o r C o nve ntio n, 1999 (No . 182).

2.2 Sc ope of the Audit

With re fe re nc e to the Te rms o f Re fe re nc e , the sc o p e o f wo rk o f the Aud it wa s to :


Pa g e 5

1) Re vie w a nd o p ine o n ke y p ro je c t a g re e me nts to e nsure c o mp lia nc e with the

PRC ’ s la ws a nd re g ula tio ns a nd ADB’ s SPS.

2) Asse ss the Pro je c ts’ c a p a b ility to c o mp ly with the a p p lic a b le Sta nd a rd s.

3) C o nd uc t a n EHS a ud it a t p ro je c t le ve ls. To b e sp e c ific , the EHS a ud it inc lud e s

b ut is no t limite d to EHS c a p a c ity, EHS p e rmits, p o lluta nt ma na g e me nt

(c o nstruc tio n a nd o p e ra tio n p ha se s), he a lth a nd sa fe ty ma na g e me nt

(c o nstruc tio n a nd o p e ra tio n p ha se s), imp a c t o n e c o syste m.

4) C o nd uc t a g e nd e r a na lysis o f c o nstruc tio n, inc lud ing a sse ssme nt o f

e mp lo yme nt (inc lud ing se x-d isa g g re g a tio n o f c urre nt e mp lo ye e s), inc o me

g e ne ra tio n o p p o rtunitie s o r c a p a c ity b uild ing / tra ining fo r wo me n, a nd la b o r

a sp e c ts. Re vie w a nd o p ine o n o c c up a tio na l a nd c o mmunity he a lth a nd

sa fe ty a sp e c ts.

5) Re vie w a ny p rio r la nd a c q uisitio n d o ne b y the sta te / p ro vinc ia l o r lo c a l

g o ve rnme nt fo r the fa c ilitie s a nd d e te rmine if the se we re und e rta ke n in

c o mp lia nc e with the Ap p lic a b le Sta nd a rd s.

6) De te rmine if PMO o p e ra tio ns ha ve a ny imp a c ts o n e thnic mino ritie s a nd a sse ss

whe the r the se ha ve b e e n a d d re sse d in a c c o rd a nc e with the a p p lic a b le

sta nd a rd s.

7) Asse ss a nd re vie w the e xte nt to whic h the c o ntra c to rs c o mp ly with

inte rna tio na lly re c o g nize d c o re la b o r sta nd a rd s.

8) Fo r a ny issue s id e ntifie d , p re p a re C o rre c tive Ac tio n Pla n (C AP) a t p ro je c t le ve ls.

The C AP will sp e c ify time -b o und me a sure s to a c hie ve a nd ma inta in

c o mp lia nc e with the o b je c tive s, p rinc ip le s, a nd re q uire me nts o f ADB’ s SPS a nd

o the r so c ia l re q uire me nts within a re a so na b le time fra me .

The Aud it sc o p e c a n the re fo re b e summa rize d a s two -fo ld , e nta iling :

1) An e nvironme nta l a nd soc ia l c omplia nc e c he c k o f the Pro je c ts to ve rify the

e xisting a nd p o te ntia l risks, a nd a re a s fo r imp ro ve me nt; a nd

2) A CAP fo r a d d re ssing ke y g a p s a nd find ing s.


Pa g e 6

2.3 Approa c h

An inte g ra te d a p p ro a c h with thre e ste p s wa s p ro p o se d b y Sta nte c a s sta te d b e lo w.

This a p p ro a c h wa s sub se q ue ntly a g re e d to b y ADB.

Ste p 1: Doc ume nt Re que st a nd De sktop- ba se d Re vie w:

Sta nte c re q ue ste d d o c ume nts fro m Sha a nxi SG E inc lud ing (i) SG E’ s p o lic ie s a nd

o ffic ia l c o mmitme nts re la te d to e nviro nme nta l, he a lth, sa fe ty a nd so c ia l sa fe g ua rd s,

p o lic ie s a nd p ro c e d ure s tha t a re b e ing imp le me nte d b y Sha a nxi SG E; (ii) Info rma tio n

a b o ut the syste m fo r p ro je c t p la nning to ma na g e e nviro nme nta l a nd so c ia l risks; (iii)

Info rma tio n a b o ut a ny d e p a rtme nts, d ivisio ns a nd / o r te a ms in Sha a nxi SG E wo rking

fo r e nviro nme nta l a nd so c ia l sa fe g ua rd s; (iv) Info rma tio n a b o ut the syste m to

ma na g e e nviro nme nta l a nd so c ia l sa fe g ua rd imp a c ts a nd risks a t c o mp a ny a nd

PMO le ve ls; (v) Info rma tio n a b o ut Sha a nxi SG E’ s tra ining syste m fo r sta ff re g a rd ing

e nviro nme nta l a nd so c ia l sa fe g ua rd s; (vi) Huma n re so urc e ma na g e me nt a nd

p ro c ure me nt p o lic ie s a nd p ro c e d ure s p lus g e nd e r d isa g g re g a te d info rma tio n a nd

a b o ut Sha a nxi SG E’ s sta ff a t c o rp o ra te he a d q ua rte rs a nd PMO s se p a ra te d b y

re sp o nsib ility le ve l; (vii) Info rma tio n a b o ut the Pro je c ts’ ma in sta ke ho ld e r g ro up s,

a c tivitie s thro ug h whic h the y a re e ng a g e d a nd c o nsulte d , a nd a ny g rie va nc e re d re ss

syste m a nd its re sults lo g ; a nd (viii) Info rma tio n a b o ut the e nviro nme nta l, he a lth,

sa fe ty a nd so c ia l mo nito ring a nd re p o rting syste m.

Anne x A lists the ke y d o c ume nts p ro vid e d b y Sha a nxi SG E a nd re vie we d b y Sta nte c

d uring this Aud it.

Ste p 2: O nsite Audit

Sta nte c c o nd uc te d o nsite visits to the fo ur p ro je c ts a s o rg a nize d b y Sha a nxi SG E

re p re se nta tive s. During the site visits, Sta nte c ’ s p e rso nne l:

• c o nd uc te d se le c te d inte rvie ws with p ro je c t ma na g e me nt (liste d in Anne x B);

• o n a n info rma l b a sis, c o nsulte d with the lo c a l p e o p le (liste d in Anne x B);

• c o nd uc te d a limite d re c o nna issa nc e a nd visua l o b se rva tio n o f the Pro je c ts

a nd imme d ia te c o nte xt; a nd

• re vie we d the imp le me nta tio n a nd c o mp lia nc e sta tus o f the e nviro nme nta l

a nd so c ia l mitig a tio n a nd ma na g e me nt me a sure s.

Anne x C p re se nts the p ho to lo g fo r the p ro je c ts visite d .


Pa g e 7

Ste p 3: G a p Ana lysis a nd Re porting

Ba se d o n the info rma tio n o b ta ine d d uring Ste p s 1-2, g a p s a g a inst the a p p lic a b le E&S

a ud it fra me wo rk in Se c tion 2.1 we re id e ntifie d a t p ro je c t le ve l. A C AP se tting o ut the

ste p s tha t wo uld b e re q uire d to c lo se the id e ntifie d g a p (s) is o utline d in Se c tion 4.0.

2.4 Risk Ca te g oriza tion

Risk le ve ls we re a d o p te d in e va lua ting id e ntifie d E&S risks a nd issue s a g a inst the

Ap p lic a b le Sta nd a rd s: “ Hig h” , “ Me d ium” a nd “ Lo w” risks a s d e fine d in Tab le 2- 1.

Ta ble 2- 1 De finition for Risk Ca te g oriza tion

Risk Le ve l De finition

Re d Fla g Trig g e r o f ADB SPS Pro hib ite d Ac tivitie s o r issue with p o te ntia l se ve re c o nse q ue nc e s

a nd limite d o p p o rtunitie s o f mitig a ting , le a d ing to o p e ra tio n shut d o wn (e .g .

c a ta stro p hic o r multip le -c a sua lty a c c id e nts; la rg e c o mmunity o r NG O p ro te st(s);

re p uta tio na l d a ma g e / p o ssib ilitie s o f sig nific a nt re p uta tio na l risks a rising in the future ;

imp a c ts to se nsitive e nviro nme nta l a nd so c ia l re c e p to rs inc lud ing c ritic a l ha b ita ts

a nd Ind ig e no us Pe o p le s/ Ethnic Mino ritie s/ Trib e s a nd c rimina l p ro c e e d ing s).

H Sig nific a nt no n-c o nfo rma nc e with the E&S Sa fe g ua rd s, whic h ma y re sult in o p e ra tio n

/ c o nstruc tio n inte rrup tio n; a nd / o r a ffe c t se nsitive re c e p to rs, a nd / o r ind uc e

c o mmunity o p p o sitio n tha t ma y d a ma g e O wne r’ s/ Inve sto r’ s re p uta tio n.

M No n-c o nfo rma nc e with the E&S Sa fe g ua rd s, whic h ma y re sult in re c tific a tio n c o st o r

fine , a nd is unlike ly to re sult in the sho rt-te rm b usine ss d isc o ntinuity in c urre nt

re g ula to ry e nfo rc e me nt c o nte xt.

L Mino r re g ula to ry o r sa fe g ua rd no n-c o mp lia nc e , whic h ma y re sult in limite d c o st o r

o nly re q uire ma na g e me nt time to a d d re ss the issue .

BP Be st p ra c tic e ; a p p ro a c h is c o nsid e re d p rud e nt b ut d o e s no t p o se a c o mp lia nc e

issue .


Pa g e 8

3.0 Complia nc e Audit of Se le c te d Proje c ts

3.1 Ove rvie w

As a g re e d with ADB a nd c o nfirme d b y SG E, fo ur g e o the rma l he a ting p ro je c ts, a s

ADB’ s first d ra wd o wn, we re se le c te d fo r the o nsite E&S c o mp lia nc e a ud it o f p a st a nd

p re se nt a c tivitie s to id e ntify c o nc e rns re la te d to imp a c ts o n the e nviro nme nt,

invo lunta ry re se ttle me nt, a nd Ind ig e no us Pe o p le s. The E&S p e rfo rma nc e a t PMO a nd

p ro je c t le ve l wa s e va lua te d a g a inst the a p p lic a b le sta nd a rd s (re fe r to Se c tion 2.1)

b a se d o n the o nsite visit, d o c ume nt re vie w a nd e ng a g e me nt with b o th inte rna l a nd

e xte rna l sta ke ho ld e rs (re fe r to Se c tion 2.3 fo r d e ta ils o f the me tho d o lo g y).


Pa g e 9

Fig ure 3- 1 Pro je c t Loc a tions

So urc e : G o o g le Ea rth Pro

Coordina te s:

Proje c t JJYP:

34°21 50 N

108°44 49 E

Proje c t YGSY:

34°21 18.1 N

108°40 49.5 E

Proje c t WSQX:

34º23’ 16.06”N

109º09’ 10.01”E

Proje c t BSW:

34º24’ 46.7”N

109º01’ 56.23”E


Pa g e 10

O ve ra ll, no re d fla g o r hig h-le ve l issue s a re id e ntifie d . The re a re no find ing s with

re g a rd s to a ny imp a c ts o n ind ig e no us p e o p le . Ta ble 3- 1 summa rize s the numb e r o f

me d ium a nd lo w risk find ing s id e ntifie d fo r the Pro je c ts a nd the d e ta ile d find ing s a re

p re se nte d in Se c tions 3.3 - 3.6.

Ta ble 3- 1 Summa ry o f Finding s by Pro je c t

Proje c t na m e

No . o f Finding s by Risk Le ve l

Environm e nt, He a lth

a nd Sa fe ty Re se ttle m e nt

O the r So c ia l Aspe c ts

Me dium

Risk Low Risk

Me dium

Risk Low Risk

Me dium

Risk Low Risk

Jing Ji Yi Pin

(京基一品) 1 2 0 0 1 1

Ya ng G ua ng

Sha ng Yua n

(阳光尚苑)

2 6 1 0 1 1

We i Shui Q u Xia ng

(渭水曲项) 2 1 0 0 1 1

Bi Shui Wa n

(碧水湾) 1 1 0 0 1 1

3.2 Proje c t Le ve l He a lth, Sa fe ty a nd Environme nta l (HSE) a nd Soc ia l

Ma na g e me nt

The Pro je c ts a re sub je c t to the HSE p o lic ie s a nd p ro c e d ure s o f Sha a nxi SG E, a nd

Sha a nxi SG E is sub je c t to the HSE p o lic ie s a nd p ro c e d ure s o f SG E HQ in Xio ng ’ a n. Ms.

Jia ng ma n Hu, Ma na g e r, He a lth, Sa fe ty a nd Enviro nme nta l De p a rtme nt (HSED) o f

Sha a nxi SG E, o ve rse e s a nd sup e rvise s the o ve ra ll HSE ma na g e me nt a nd p e rfo rma nc e

o f a ll PMO s ma na g e d b y Sha a nxi SG E, inc lud ing the Pro je c ts. Ms. Hu is a d e d ic a te d

HSE p e rso nne l within Sha a nxi SG E a nd ha s 6 ye a rs o f e xp e rie nc e in HSE ma na g e me nt.

Within HSED Ms. Hu is sup p o rte d b y o ne HSE e ng ine e r, Ms. Ying Liu, who ha s le ss tha n

6 mo nths o f e xp e rie nc e in HSE ma na g e me nt. Ma na g e rs o f the PMO s, a re re sp o nsib le

fo r g e ne ra l HSE ma na g e me nt o f the Pro je c ts, a ssiste d b y o ne p a rt time sa fe ty o ffic e r

(o ne e a c h fo r the PMO s) who is a lso re sp o nsib le fo r the sa fe ty ma na g e me nt a t a ll

p ro je c ts o f the PMO s. The a fo re me ntio ne d p e rso nne l ha d p a sse d the inte rna l 36-ho ur


Pa g e 11

He a lth, Sa fe ty a nd Enviro nme nt Tra ining p ro vid e d b y p a re nt c o mp a ny ma jo rity

sha re ho ld e r Sino p e c C o rp a nd o b ta ine d the c o rre sp o nd ing c e rtific a te s.

HSED is re sp o nsib le fo r:

• C o o rd ina tio n o f Enviro nme nta l Imp a c t Asse ssme nt (EIA) p ro c e d ure s fo r a ll

p ro je c ts;

• Imp le me nta tio n a nd ma inte na nc e o f the inte rna l q ua lity ma na g e me nt syste m

o f Sha a nxi SG E;

• O ve ra ll HSE sup e rvisio n a t p ro je c t le ve l.

At p ro je c t le ve l, Ma na g e rs o f the PMO s a re re sp o nsib le fo r:

• Ap p lic a tio n o f Wa te r Ab stra c tio n Pe rmit/ G e o the rma l Mining Pe rmit, a nd

he a lth a nd sa fe ty c e rtific a te s whe re ne e d e d ;

• Ro utine HSE ma na g e me nt o f the PMO s.

The p o lic ie s se t o ut in SG E’ s HSE Ma nua l a re a lso a p p lic a b le to Sha a nxi SG E a nd its

PMO s a nd c o rre sp o nd ing sub c o ntra c to rs. The HSE re q uire me nts a nd lia b ilitie s

a p p e nd ix is inc lud e d in the c o ntra c t sig ne d b e twe e n PMO s a nd sub c o ntra c to rs, a nd

a c o p y o f c o ntra c t with HSE re q uire me nt wa s p ro vid e d fo r re vie w d uring the site visit.

The sub c o ntra c to rs a re a lso re q uire d to d e ve lo p a he a lth a nd sa fe ty p la n p rio r to

c o mme nc ing fie ld wo rk a nd a rra ng e d e sig na te d sta ff to imp le me nt HSE re q uire me nt

a c c o rd ing ly.

At p ro je c t le ve l, a ll p ro je c t re c e ive s thre e -le ve l insp e c tio ns:

• C o rp o ra te -le ve l HSE insp e c tio n c o nd uc te d b y the p e rso nne l fro m the SG E

Q ua lity, He a lth, Sa fe ty a nd Enviro nme nt (Q HSE) De p a rtme nt o n a q ua rte rly

b a sis. The insp e c tio n re c o rd s we re re p o rte d ly ma inta ine d b y SG E a nd we re no t

a va ila b le fo r re vie w d uring the Aud it;

• C o mp a ny-le ve l HSE insp e c tio n c o nd uc te d b y SED o n a mo nthly b a sis with

a d d itio na l HSE insp e c tio n p rio r to c o mme nc e me nt o f

c o nstruc tio n/ e ng ine e ring wo rk. The c o rre sp o nd ing re c o rd s a nd e vid e nc e s o f

c o rre c tive a c tio n p la n imp le me nta tio n we re p ro vid e d fo r re vie w;


Pa g e 12

• Pro je c t-le ve l HSE insp e c tio n c o nd uc te d b y the Ma na g e rs o f the PMO s a nd p a rt

time sa fe ty o ffic e rs o n a we e kly b a sis. The c o rre sp o nd ing re c o rd s a nd

e vid e nc e s o f c o rre c tive a c tio n p la n imp le me nta tio n we re p ro vid e d fo r re vie w.

In a d d itio n, d e d ic a te d p e rso nne l fro m e a c h o f the PMO s c o nd uc ts d a ily insp e c tio n

a t a ll p ro je c ts. The insp e c tio n inc lud e s HSE to p ic s suc h a s c o nstruc tio n sa fe ty.

Re g a rd ing PMO a nd Pro je c t-le ve l So c ia l ma na g e me nt, Sha a nxi SG E ha s no

d e le g a te d te a m in this re g a rd , ho we ve r, Sha a nxi SG E’ s so c ia l ma na g e me nt c a n b e

d ivid e d b y fo llo wing two fo c use s:

1) Pro je c t re la te d la nd a c q uisitio n a nd invo lunta ry re se ttle me nt, a s we ll a s

c o mmunity re la tio nship : As c o nfirme d d uring the inte rvie w with Sha a nxi SG E’ s

PMO s inc lud ing Xia nya ng , Xi’ a n a nd Linto ng a t the p ro je c t o p e ning me e ting ,

the PMO is re sp o nsib le in this re g a rd , while in the ir mind , sinc e mo st o f the la nd

is sup p lie d fo r fre e b y the re a l e sta te d e ve lo p e rs a s mo st o f the p ro je c t

c o mp o ne nts a re lo c a te d in c o mme rc ia l re sid e ntia l p ro je c ts, the re a re no suc h

c o nc e rns, the re fo re , this ha s b e e n re g a rd e d b y the m a s no n-a p p lic a b le . While

this is no t in c o nfo rma nc e with PRC la w, wha t is b e ing p ra c tic e d is c o mmo n,

e sp e c ia lly fo r infra struc ture se rvic e s in la rg e d e ve lo p me nts. SG E sho uld wa tc h

c lo se ly o n the o p p o rtunitie s to no rma lize the la nd whe n a p p ro p ria te , while in

the me a nwhile , SG E ne e d s to sta te in the c o ntra c t with re a l-e sta te d e ve lo p e r

tha t the la nd is p ro vid e d b y the re a l-e sta te d e ve lo p e r fo r fre e fo r the

d e ve lo p me nt o f re le va nt fa c ilitie s. In rura l a re a , it is und e rsto o d tha t SG E re nt

the la nd fro m lo c a l c o mmunitie s fo r we ll d e ve lo p me nt, whic h is a lso no t in

c o nfo rma nc e with re la te d PRC la w. SG E ne e d s to c o nsult lo c a l Bure a u o f La nd

a nd Re so urc e s to ma ke sure the g o ve rnme nt a utho rity is c o mfo rta b le with this

p ra c tic e a nd se e k o p p o rtunitie s to no rma lize the la nd title .

2) Pro je c t c o nstruc tio n c o ntra c to r ma na g e me nt: Sha a nxi SG E’ s Huma n Re so urc e

De p a rtme nt is o nly in c ha rg e o f Sha a nxi SG E’ s d ire c t e mp lo yme nt, while the

PMO s a nd Sha a nxi HSED a re in c ha rg e o f the ma na g e me nt o f c o ntra c to rs’ HSE

a nd la b o r ma na g e me nt re la te d issue s. The ma na g e me nt is d o ne b y p ro vid ing

tra ining to the c o nstruc tio n c o ntra c to rs a s we ll a s irre g ula r o nsite mo nito ring .


Pa g e 13

During the inte rvie w, it wa s fo und tha t Sha a nxi SG E c o nsid e rs so c ia l re la te d

ma na g e me nt a s a sha re d re sp o nsib ility a mo ng Sha a nxi SG E HSED a nd the PMO s.

3.3 Proje c t Jing Ji Yi Pin (京基一品)

3.3.1 Loc a tion

The Jing Ji Yi Pin (京基一品) G e o the rma l Pro je c t (“ Pro je c t JJYP” ) is lo c a te d in the JJYP

Re sid e ntia l Pro je c t a t the junc tio n o f Wa ng xia n Ro a d a nd Hua xia n Ro a d in We ic he ng

Distric t, Xia nya ng C ity, Sha a nxi Pro vinc e . The JJYP Re sid e ntia l Pro je c t is a c o mme rc ia l

re sid e ntia l p ro je c t tha t will b e d e ve lo p e d in two p ha se s c o ve ring 12 hig h-rise

re sid e ntia l b uild ing s. At the time o f the site visit, the ma jo rity o f the Pha se I

d e ve lo p me nt o f the JJYP Re sid e ntia l Pro je c t c o ve ring five re sid e ntia l b uild ing s we re

c o mp le te d , while the la nd sc a p e d a re a , c a r p a rk a nd p la yg ro und we re still und e r

c o nstruc tio n. The p ro je c t ma na g e me nt o ffic e re p o rte d tha t the Pha se II

d e ve lo p me nt o f the JJYP Re sid e ntia l Pro je c t is e xp e c te d to b e c o mp le te d in 2020.

The Pha se I a nd II d e ve lo p me nts o f the JJYP Re sid e ntia l Pro je c t will p ro vid e 2,376

a p a rtme nts in to ta l.

We ic he ng Distric t is lo c a te d in the e a ste rn p o rtio n o f Xia nya ng C ity with a n a re a o f

a p p ro xima te ly 272 sq ua re kilo me te rs (km2). Ele va tio ns o f the d istric t ra ng e fro m 367-

514 me te rs (m) a b o ve se a le ve l. The g e o the rma l wa te r re so urc e in Xia nya ng C ity is

c o nsid e re d to b e ric h b e c a use (1) The a ntic ip a te d e xp lo ra b le g e o the rma l wa te r

re so urc e is 7.28*108 c ub ic me te rs (m 3); (2) The unit e xp lo ra b le a mo unt o f g e o the rma l

wa te r re so urc e is se ve ra l time s mo re tha n o the r no rthe rn c itie s in C hina suc h a s Xi’ a n

C ity, Be ijing Munic ip a lity a nd Tia njin Munic ip a lity; (3) ric h in the rma l so urc e s. This

a re a ’ s te rre stria l he a t flo w ra te is a p p ro xima te ly 20% hig he r tha n the g lo b a l he a t flo w

ra te .

We ic he ng Distric t is a tra d itio na l Ha n C hine se d o mina te d a re a . No e thnic mino rity

d o mina te d c o mmunitie s a re id e ntifie d e ithe r thro ug h a ne c d o te , inte rne t se a rc h o r

inte rvie ws with the Sha a nxi SG E ma na g e me nt.

No na tura lly p ro te c te d a re a s, b uffe r zo ne s o f p ro te c te d a re a s, we tla nd s, ma ng ro ve ,

e stua rine , o r c ultura l he rita g e a re id e ntifie d in the vic inity o f the p ro je c t a re a .


Pa g e 14

3.3.2 Proje c t De sc ription

The Pro je c t JJYP is ma na g e me nt b y the Xia nya ng PMO , Sha a nxi SG E. All p ro je c t

fa c ilitie s o f the Pro je c t JJYP will b e b uilt within the a re a o f the JJYP Re sid e ntia l Pro je c t.

The c usto me rs o f the he a t p ro vid ing se rvic e will b e the re sid e nts o f the JJYP

Re sid e ntia l Pro je c t.

O n 9 O c to b e r 2018, Sta nte c c o nd uc te d a site visit to the Pro je c t JJYP, whic h wa s still

und e r c o nstruc tio n. Ac c o rd ing to the p ro je c t ma na g e me nt, the c o nstruc tio n o f the

Pro je c t JJYP is e xp e c te d to b e c o mp le te d b y 15 No ve mb e r 2018. The p ro je c t

c o mp o ne nts a nd the ir sta tus a s o f 9 O c to b e r 2018 is summa rize d in the ta b le b e lo w.

Ta ble 3- 2 Pro je c t c ompone nts a nd sta tus a s o f 9 O c tobe r 2018

Com pone nt Sta tus o n 9 O c tobe r 2018 Expe c te d Com ple tion Da te

O ne p ro d uc tio n we ll C o mp le te d N/ A

O ne Re inje c tio n We ll C o mp le te d N/ A

Two He a t Tra nsfe r Sta tio ns C o nstruc tio n o f o ne o f the

he a t tra nsfe r sta tio ns wa s

c o mp le te d . The p ro je c t

ma na g e me nt re p o rte d tha t

the he a t tra nsfe r sta tio ns will

b e d e ve lo p e d in two p ha se s in

a c c o rd a nc e to the two -p ha se

d e ve lo p me nts o f the JJYP


The p ha se II d e ve lo p me nt o f the

JJYP Re sid e ntia l Pro je c t is

e xp e c te d to b e c o mp le te d in

2020 he nc e the se c o nd he a t

tra nsfe r sta tio n will b e c o nstruc te d

a nd p ut into use in 2020.

O ne Re inje c tio n Sta tio n Ho use C o nstruc tio n wa s no t

c o mme nc e d .

By 15 No ve mb e r 2018

Pip e line s (600 m) C o nstruc tio n wa s no t

c o mme nc e d .

By 15 No ve mb e r 2018

The d e sig ne d he a ting a re a is 210.4 tho usa nd sq ua re me te rs (m 2), c o ve ring the two -

p ha se d e ve lo p me nts o f the JJYP Re sid e ntia l Pro je c t. The we ll d rilling , infra struc ture

c o nstruc tio n a nd e q uip me nt insta lla tio n we re / will b e o utso urc e d to lic e nse d ve nd o rs

liste d in Sino p e c ’ s sub c o ntra c to r inve nto ry.


Pa g e 15

3.3.3 Environme nt Sa fe g ua rds

a . Environme nta l Asse ssme nt

The p e rmit c o mp lia nc e sta tus o f the Pro je c t JJYP is summa rize d a s fo llo ws in the ta b le :

Ta ble 3- 3 Pe rmit Complia nc e Sta tus o f the Pro je c t JJYP

Pe rm it Issuing

Authority Re m a rk

Pre - c onstruc tio n

EIA a nd

Ap p ro va l

Xia nya ng C ity

Enviro nme nta l

Pro te c tio n

Bure a u (EPB)

The EIA fo rm wa s p re p a re d b y a lic e nse d institute in Ma y 2018

a nd the c o rre sp o nd ing EIA a p p ro va l wa s issue d b y Xia nya ng C ity

EPB d a te d 26 June 2018. Ba se d o n o nsite o b se rva tio n a nd

inte rvie w with the p ro je c t ma na g e me nt, the Pro je c t JJYP’ s

a c tua l d e ve lo p me nt is c o nsiste nt with the EIA fo rm a nd

a p p ro va l.

Wa te r a nd So il

C o nse rva tio n

Ap p ro va l

No t a p p lic a b le The Wa te r a nd So il C o nse rva tio n Pla n a nd p e rtine nt a p p ro va l is

no t re q uire d b y lo c a l wa te r re so urc e b ure a u.

Ene rg y Sa ving

Asse ssme nt

No t a p p lic a b le Ene rg y Sa ving Asse ssme nt is no t re q uire d fo r this p ro je c t b y the


Wo rk Sa fe ty

Asse ssme nt

No t a p p lic a b le Ba se d o n C hine se re g ula tio ns, Wo rk Sa fe ty Asse ssme nt is no t

re q uire d fo r this typ e o f o p e ra tio n.

O c c up a tio na l

Dise a se a nd

Ha za rd s

Asse ssme nt

No t a p p lic a b le Ba se d o n C hine se re g ula tio ns, O c c up a tio na l Dise a se Ha za rd s

a sse ssme nt is no t re q uire d fo r this typ e o f o p e ra tio n.

Fire Pro te c tio n

De sig n

Ap p ro va l o r

Re g istra tio n

No t a p p lic a b le The p ro je c t ma na g e me nt o ffic e re p o rte d tha t g ive n the p ro je c t

is lo c a te d in the re sid e ntia l p ro je c t, the p ro je c t is inc lud e d a s p a rt

o f the re sid e ntia l p ro je c t’ s Fire Pro te c tio n De sig n Ap p ro va l whilst

no ind ivid ua l a p p ro va l is re q uire d sp e c ific a lly fo r the p ro je c t.

Wa te r

Ab stra c tio n

Pe rmit

No t a p p lic a b le Ac c o rd ing to ma na g e me nt inte rvie w, Wa te r Ab stra c tio n Pe rmit

is no t re q uire d fo r g e o the rma l p ro je c ts b y lo c a l wa te r a utho rity.

Inste a d g e o the rma l wa te r is d e e me d a s re so urc e s a nd

ma na g e d b y the lo c a l la nd re so urc e s b ure a u.

G e o the rma l

Mining Pe rmit

Xia nya ng C ity

La nd

Re so urc e s

Bure a u

The Mining Pe rmit fo r the Pro je c t JJYP wa s issue d b y the Xia nya ng

C ity La nd Re so urc e s Bure a u o n 29 Ma rc h 2018 a nd is va lid until

29 Ma rc h 2023.

La nd Use (p re )

Ap p ro va l

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the JJYP Re sid e ntia l

Pro je c t, no La nd Use Ap p ro va l is re q uire d p a rtic ula rly fo r the

Pro je c t JJYP. But it is a re c o mme nd e d p ra c tic e fo r p utting suc h

te rms in the c o ntra c t b e twe e n SG E a nd the re a l e sta te

d e ve lo p e r to sp e c ify ‘ the la nd is g ive n to SG E fo r fre e fo r the

p urp o se o f insta lling he a ting fa c ilitie s.


Pa g e 16

Pe rm it Issuing

Authority Re m a rk

Construc tion a nd O pe ra tio n

Enviro nme nta l

C o mp le tio n

Ac c e p ta nc e

Insp e c tio n

(C AI)

No t ye t

a p p lic a b le

G ive n the Pro je c t JJYP wa s still und e r c o nstruc tio n a t the time o f

the site visit, a n Enviro nme nta l C AI mo nito ring ha s no t ye t b e e n

c o nd uc te d .

Wa te r a nd So il

C o nse rva tio n

Pla n C AI

No t a p p lic a b le Wa te r a nd So il C o nse rva tio n Pla n C AI is no t re q uire d b y lo c a l

wa te r re so urc e b ure a u.

Wo rk Sa fe ty

C AI

No t a p p lic a b le Ba se d o n C hine se re g ula tio ns, Wo rk Sa fe ty C AI is no t re q uire d fo r

this typ e o f o p e ra tio n.

O c c up a tio na l

He a lth Fa c ility

C AI

No t a p p lic a b le Ba se d o n C hine se re g ula tio ns, O c c up a tio na l He a lth Fa c ility C AI

is no t re q uire d fo r this typ e o f o p e ra tio n.

Fire Pro te c tio n

C AI

No t a p p lic a b le The p ro je c t ma na g e me nt re p o rte d tha t g ive n the p ro je c t is

lo c a te d in the re sid e ntia l p ro je c t, the p ro je c t will b e inc lud e d a s

p a rt o f the re sid e ntia l p ro je c t’ s Fire Pro te c tio n C AI whilst no

ind ivid ua l a p p ro va l is re q uire d sp e c ific a lly fo r the p ro je c t.

La nd Use

C e rtific a te

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the JJYP Re sid e ntia l

Pro je c t, no La nd Use C e rtific a te is re q uire d p a rtic ula rly fo r the

Pro je c t JJYP.

The ma in e nviro nme nta l a sp e c ts d uring c o nstruc tio n a nd o p e ra tio n p e rio d o f the

Pro je c t JJYP a re summa rize d a s fo llo ws, to g e the r with re le va nt mitig a tio n me a sure s.

Construc tion Pe riod

Air Emissio n: Sp rinkling wa te r a nd c o ve ring b a re so il we re p e rfo rme d fo r c o ntro lling

d ust g e ne ra te d d uring the c o nstruc tio n. The d ust c o nc e ntra tio n is sub je c t to

Bo unda ry Dust Emissio n Limit fo r C o nstruc tio n Site (DB61/1078-2017). At the time o f the

site visit, the ma jo rity o f the Pha se I d e ve lo p me nt o f the JJYP Re sid e ntia l Pro je c t

c o ve ring five re sid e ntia l b uild ing s we re c o mp le te d , while the la nd sc a p e d a re a , c a r

p a rk a nd p la yg ro und we re still und e r c o nstruc tio n, whic h c o ntrib ute d the

b a c kg ro und d ust c o nc e ntra tio n. Thus, in b o th c o mp lia nc e a nd risk ma na g e me nt

p ro sp e c tive , b o und a ry d ust mo nito ring is no t ne e d e d in this c a se .

No ise : Eq uip me nt with lo we r no ise le ve l is use d to minimize the no ise e missio n. The

b o und a ry no ise le ve l d uring c o nstruc tio n p e rio d is sub je c t to C hine se Emissio n

Sta nda rd o f Enviro nme nt No ise fo r Bo unda ry o f C o nstruc tio n Site (G B12535-2011, i.e .


Pa g e 17

55 d B (A) a t nig ht a nd 70 d B (A) in d a y time ). At the time o f the site visit, the ma jo rity

o f the Pha se I d e ve lo p me nt o f the JJYP Re sid e ntia l Pro je c t c o ve ring five re sid e ntia l

b uild ing s we re c o mp le te d , while the la nd sc a p e d a re a , c a r p a rk a nd p la yg ro und

we re still und e r c o nstruc tio n, whic h c o ntrib ute d the b a c kg ro und no ise le ve l. Thus, in

b o th c o mp lia nc e a nd risk ma na g e me nt p ro sp e c tive , b o und a ry no ise mo nito ring is

no t ne e d e d in this c a se .

Wa ste wa te r: Drilling wa ste wa te r wa s sto re d in two o nsite mud p its a nd re use d fo r

d rilling mud c o nd itio ning . The mud p its we re c o nstruc te d with two imp e rme a b le

p o lye thyle ne she e ts a s re p o rte d b y the p ro je c t ma na g e me nt. The re ma ining d rilling

wa ste wa te r with mud wa s d isp o se d o f with d rilling wa ste to g e the r b y the d rilling

sub c o ntra c to r. Re p o rte d ly the fina l d e stina tio n o f the wa ste wa s a munic ip a l la nd fill

site a p p o inte d b y the lo c a l g o ve rnme nt, ho we ve r, no tra c k re c o rd s/ d e ta il

info rma tio n wa s p ro vid e d b y the p ro je c t ma na g e me nt. The wa ste is no t c a te g o rize d

a s ha za rd o us wa ste a s p e r the EIA d o c ume nt o f the p ro je c t. Ho we ve r, a p ro c e d ure

fo r c o nd uc ting third -p a rty c o nfirma to ry te sting o n the wa ste is no t in p la c e . Do me stic

wa ste wa te r wa s d isc ha rg e d to the munic ip a l se we r syste m.

So lid Wa ste : Do me stic wa ste wa s c o lle c te d b y lo c a l munic ip a l sa nita ry sta tio n o n a

re g ula r b a sis a s re p o rte d b y p ro je c t ma na g e me nt.

Ec o syste m : The d isturb e d a re a s will b e p a ve d with c o nc re te o r re -ve g e ta te d a fte r

the c o nstruc tio n in a time ly ma nne r.

O c c up a tio na l a nd c o mmunity he a lth a nd sa fe ty: The Pro je c t is sub je c t to the HSE

p o lic ie s a nd p ro c e d ure s o f Sha a nxi SG E, a nd Sha a nxi SG E is sub je c t to the HSE p o lic ie s

a nd p ro c e d ure s o f SG E HQ in Xio ng ’ a n. To b e sp e c ific , the imp le me nte d HSE

p ro c e d ure s inc lud e b ut no t limite d to sub c o ntra c to r ma na g e me nt, inc id e nt re c o rd

a nd inve stig a tio n, p e rmit to wo rk, e me rg e nc y re sp o nse p la ns c o ve ring b o th

c o nstruc tio n a nd o p e ra tio n p ha se . Pro je c t ma na g e me nt re p o rte d tha t no inc id e nts

we re ta ke n p la c e d uring the c o nstruc tio n o f the p ro je c t. Pro p e r a nd a d e q ua te

p e rso nne l p ro te c tio n e q uip me nt (PPE) inc lud ing he lme ts, sa fe ty g o g g le s, ma sks,

sa fe ty sho e s a nd e a r p lug s a re p ro vid e d fo r a ll e mp lo ye e s o f Sha a nxi SG E a nd

sub c o ntra c to rs. Ho we ve r, o ne we ld e r d id no t we a r ma sk whe n he wa s c o nd uc ting

we ld ing a c tivity. The c o nstruc tio n a re a s o f the Pro je c t JJYP a re lo c a te d within the


Pa g e 18

JJYP Re sid e ntia l Pro je c t, whic h wa s surro und e d b y wa lls with se c urity p ro visio n a t

e a c h o f the e ntra nc e .

O pe ra tiona l Pe riod

Wa ste wa te r: Ab stra c te d g ro und wa te r will b e re -inje c te d into the p ro d uc tio n la ye r

a fte r he a ting e xc ha ng e . The sa nita ry wa ste wa te r fro m the p ro je c t will b e d isc ha rg e d

into the munic ip a l se we r syste m.

Air Emissio n: No a ir e missio ns will b e g e ne ra te d d uring o p e ra tio n p e rio d .

No ise : G ive n the he a t tra nsfe r sta tio ns a re und e rg ro und , the no ise c o nd uc te d to

g ro und le ve l is e xp e c te d to b e minima l a nd will no t d isturb the re sid e nc e o f the

Pro je c t JJYP. De sp ite suc h, vib ra tio n c o ntro l me a sure s, suc h a s usa g e o f insula tio n

ma te ria l o n the wa ll, se le c tio n o f no ise -mitig a ting wind o ws, a re a lso p ro p o se d in the

p ro je c t EIA d o c ume nt. The p ro je c t b o und a ry no ise is sub je c t to the C la ss II limit o f

Emissio n Sta nda rd fo r Industria l Ente rp rise s No ise a t Bo unda ry (G B12348-2008 i.e . 50 d B

(A) a t nig ht a nd 60 d B (A) in d a y time ).

So lid Wa ste : The se d ime nt fro m vo rte x d e -sa nd e r, ma inly sa nd , a nd d o me stic wa ste

will b e c o lle c te d b y lo c a l munic ip a l sa nita ry sta tio n. It wa s sta te d b y the EIA

d o c ume nt tha t the se d ime nt fro m vo rte x d e -sa nd e r is no t a ntic ip a te d a s ha za rd o us

wa ste . Ho we ve r, a p ro c e d ure fo r c o nd uc ting third -p a rty c o nfirma to ry te sting o n the

se d ime nt is no t in p la c e . Wa ste filte r will b e re p la c e d a nd d isp o se d o f b y the filte r

sup p lie r o n a re g ula r b a sis.

Ec o syste m a nd g ro undwa te r: Ba se d o n the EIA d o c ume nt a nd inte rvie w with the

p ro je c t ma na g e me nt, the g e o the rma l wa te r will b e e xtra c te d , tra nsfe rre d a nd

re inje c te d within a c lo se -lo o p syste m a nd is no t e xp e c te d to d e c re a se the

g ro und wa te r le ve l. With the p ro p e r tre a tme nt o f the re inje c te d wa te r (two -ste p

filtra tio n fo r re mo va l o f susp e c te d so lid s) a s we ll a s the q ua lity a ssura nc e d uring the

we ll d e ve lo p me nt a nd imp le me nta tio n o f e me rg e nc y re sp o nse p la n, re inje c tio n is

no t e xp e c te d to c a use c o nta mina tio n o r ne g a tive imp a c t to the lo c a l g ro und wa te r

e nviro nme nt.





Pa g e 19

p ro c e d ure s inc lud e b ut no t limite d to inc id e nt re c o rd a nd inve stig a tio n, p e rmit to

wo rk, e me rg e nc y re sp o nse p la ns a nd risk id e ntific a tio n a nd c o ntro l. Pro p e r a nd

a d e q ua te p e rso nne l p ro te c tio n e q uip me nt (PPE) inc lud ing he lme ts, sa fe ty g o g g le s,

sa fe ty sho e s a nd e a r p lug s will b e p ro vid e d fo r a ll e mp lo ye e s o f Sha a nxi SG E. The

Eme rg e nc y Re sp o nse Pla n d e ve lo p e d a nd imp le me nte d b y SG E inc lud e s the lo c a l

c o mmunity, c o ve ring id e ntific a tio n o f c o mmunity ne a rb y, no tific a tio n o f

e me rg e nc ie s, a nd invita tio n o f d rill to the lo c a l c o mmunity.

Ac c o rd ing to d o c ume nt re vie w, the Pro je c t JJYP will re d uc e c a rb o n d io xid e e missio n

o f a p p ro xima te ly 3,932.41 to ns p e r ye a r, re sulting fro m re p la c ing c o a l fo r he a ting . In

a d d itio n, g e o the rma l he a ting will re d uc e a p p ro xima te ly e missio n o f sulfur d io xid e

a nd nitro g e n o xid e b y 54.79 to ns a nd 12.91 to ns p e r ye a r, re sp e c tive ly, whic h

sig nific a ntly c o ntrib ute s to imp ro ving a ir q ua lity in he a ting se a so n.

No ha za rd o us ma te ria ls, inc lud ing ma te ria ls c o nta ining a sb e sto s, p o lyc hlo rina te d

b ip he nyls, to xic sub sta nc e s a nd p e stic id e , we re o b se rve d o r re p o rte d to b e use d

d uring c o nstruc tio n a nd o p e ra tio n p e rio d o f the Pro je c t JJYP.

b. Environme nta l Ma na g e me nt Pla n

Eithe r Sha a nxi SG E, Xia nya ng PMO no r Pro je c t JJYP ha s d e ve lo p e d a sp e c ific

c o mp re he nsive Enviro nme nta l Ma na g e me nt Pla n (EMP).

The Pro je c t JJYP wa s und e r c o nstruc tio n a t the time o f the site visit. As p e r the p ro je c t

EIA d o c ume nt, d uring the o p e ra tio n p e rio d , a nnua l e nviro nme nta l mo nito ring is

p ro p o se d fo r re inje c tio n wa te r a nd b o und a ry no ise .

c . Ke y Finding s a nd Issue s on Environme nta l Sa fe g ua rds:

• The Pro je c t JJYP ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive

e nviro nme nta l ma na g e me nt p la n.

• The Pro je c t JJYP d id no t d o c ume nt/ mo nito r the d isp o sa l o f the re ma ining

d rilling wa ste wa te r with mud a nd d rilling wa ste . Re p o rte d ly the d rilling

sub c o ntra c to r wa s re sp o nsib le fo r the d isp o sa l a nd the fina l d e stina tio n o f the

wa ste (whic h is no t c a te g o rize d a s ha za rd o us wa ste a c c o rd ing to the EIA

d o c ume nts o f the p ro je c t) wa s a munic ip a l la nd fill site a p p o inte d b y the lo c a l

g o ve rnme nt.

• A p ro c e d ure fo r c o nd uc ting third -p a rty c o nfirma to ry te sting o f ha za rd o us

wa ste c a te g o riza tio n o n the d rilling wa ste a nd se d ime nt fro m the vo rte x d e -

sa nd e r is no t in p la c e .


Pa g e 20

• At the time o f the site visit, o ne we ld e r d id no t we a r ma sk whe n he wa s

c o nd uc ting we ld ing a c tivity.

3.3.4 Soc ia l Sa fe g ua rds

a . La nd Ac quisition a nd Re se ttle me nt

All p ro je c t fa c ilitie s o f the Pro je c t JJYP a re lo c a te d within the JJYP Re sid e ntia l Pro je c t.

• The he a t p ro d uc tio n we ll will b e lo c a te d within the JJYP Re sid e ntia l Pro je c t,

130 m to the no rth o f the ne a re st re sid e ntia l b uild ing s;

• The re inje c tio n we ll is lo c a te d to the e a st o f the he a t p ro d uc tio n we ll, a nd 135

m to the so uth o f the ne a re st re sid e ntia l b uild ing s;

• The first he a t tra nsfe r sta tio n a nd re inje c tio n sta tio n a re lo c a te d within the

und e rg ro und utility ro o m a t the b a se me nt o f # 1 re sid e ntia l b uild ing ;

• The se c o nd he a t tra nsfe r sta tio n will b e lo c a te d within the und e rg ro und utility

ro o m a t the b a se me nt o f # 9 re sid e ntia l b uild ing s.

Ac c o rd ing to the ma na g e me nt inte rvie w, the la nd a nd sp a c e a re p ro vid e d fo r fre e

b y the Re a l Esta te De ve lo p e r o f the JJYP Re sid e ntia l Pro je c t, na me d Xia nya ng Anju

Re a l Esta te De ve lo p me nt C o mp a ny. The re fo re , the re a re no la nd a c q uisitio n a nd

re se ttle me nt fo r the p ro je c t. The la nd wa s o b ta ine d b y the re a l e sta te d e ve lo p e rs

fro m the g o ve rnme nt ma na g e d la nd ma rke t thro ug h b id ing o r a uc tio n.

Ho we ve r, b a se d o n d o c ume nt re vie w, Sta nte c ha s no t fo und the re le va nt te rms o f

fre e use o f the la nd a nd a re a s in the He a t Sup p ly C o ntra c t b e twe e n the Xia nya ng

PMO a nd the re a l e sta te d e ve lo p e r. The p ro je c t wa s no t invo lve d in la nd a c q uisitio n

a nd d o e s no t ho ld a ny title fo r the la nd . It is sug g e ste d Xia nya ng PMO p ut re le va nt

te rms o f using the la nd o f re a l e sta te d e ve lo p e r fo r fre e into the c o ntra c t.

The p ip e line s will b e la id a lo ng the ro a d a nd d isturb e d la nd a re p ub lic munic ip a l la nd

a nd will b e re sto re d to its p re vio us c o nd itio ns. No p hysic a l o r e c o no mic d isp la c e me nt

will b e re sulte d fro m the p ip e line -la ying . The re fo re , ADB SR2 is no t trig g e re d fo r the

p ro je c t.

Ba se d o n c o nsulta tio n with the Site ma na g e me nt a nd o nsite visit o n 9 O c to b e r 2018,

it wa s c o nfirme d tha t no p hysic a l o r e c o no mic d isp la c e me nt is re q uire d fo r the


Pa g e 21

p ro je c t. O ve ra ll, the c a te g o riza tio n o f invo lunta ry re se ttle me nt fo r the Pro je c t JJYP is

a sse sse d a s Ca te g ory C .

b. Indig e nous Pe ople s

The p ro je c t is lo c a te d in a no n-e thnic mino rity d o mina te d a re a . Ma jo rity o f the

re sid e nts a t p ro je c t a re a a re Ha n C hine se . All g e o the rma l we lls a nd fa c ilitie s a re

lo c a te d within the Ha n C hine se c o mmunitie s. In a d d itio n, no e thnic mino rity is

e xp e c te d to b e imp a c te d b y the C o mp a ny’ s fo re se e a b le g e o the rma l d e ve lo p me nt

sc he me within the jurisd ic tio na l a re a o f Xia nya ng C ity. The re fo re , ADB SR3 is no t

trig g e re d fo r the p ro je c t a nd the c a te g o riza tio n fo r ind ig e no us p e o p le is a sse sse d a s

Ca te g ory C .

c . Monitoring a nd re porting on imple me nta tion o f Soc ia l Mitig a tion Me a sure s

The C o mp a ny o r the Xia nya ng PMO d o e s no t ha ve a n in p la c e p ro c e d ure to mo nito r

a nd re p o rt p ro je c t so c ia l mitig a tio n me a sure s, p e rfo rma nc e s a nd re p o rt p ro g re ss,

p ro b le ms a nd le sso ns le a rne d . No SIA wa s p e rfo rme d fo r the p ro je c t a nd no

mo nito ring o n imp le me nta tio n o f so c ia l mitig a tio n me a sure s wa s c o nd uc te d b y the

C o mp a ny. At the time o f o nsite visit, the c o nsulte d p ro je c t ma na g e me nt re p o rte d

g e o the rma l he a ting p ro je c ts b ring sig nific a nt b e ne fits to the lo c a l c o mmunity, whic h

ha s ve ry limite d imp a c ts p a rtic ula rly d uring o p e ra tio n.

SG E is re q uire d to me a sure a nd mo nito r the se “ sig nific a nt b e ne fits” so it ne e d s a

syste m to c o lle c t a nd re p o rt d a ta inc lud ing the numb e r o f c usto me rs, the numb e r o f

vulne ra b le ho use ho ld s, c o st o f he a ting p ro vid e d , the c o mp a riso n b e twe e n the c o st

with o the r c o mp a nie s, jo b s c re a te d a nd susta ine d (ma le / fe ma le ) thro ug h

c o ntra c to rs a nd thro ug ho ut sup p ly c ha in, c o mmunity d e ve lo p me nt a c tivitie s

c o nd uc te d , sta ke ho ld e r e ng a g e me nt e ve nts he ld , g rie va nc e s re c e ive d a nd

a d d re sse d .

3.3.5 Sta ke holde r Eng a g e me nt a nd Consulta tion

It is id e ntifie d no sta ke ho ld e r a na lysis wa s c o nd uc te d fo r p ro je c t a nd no d o c ume nt

re c o rd s re g a rd ing sta ke ho ld e r e ng a g e me nt we re a va ila b le fo r re vie w.

Ac c o rd ing to Sta nte c ’ s o nsite c o nsulta tio ns a s we ll a s simila r p ro je c t e xp e rie nc e s,

thre e ma jo r sta ke ho ld e r g ro up s a re id e ntifie d fo r the p ro je c t, inc lud ing (a ) munic ip a l

g o ve rnme nt a utho ritie s, (b ) re a l e sta te d e ve lo p e rs, a nd (c ) lo c a l c o mmunity


Pa g e 22

(g e o the rma l he a ting e nd use rs). It is und e rsto o d tha t e a c h PMO is re sp o nsib le fo r

lia iso n with lo c a l g o ve rnme nt, a nd c o mmunic a ting with re a l e sta te d e ve lo p e rs d uring

p ro je c t d e sig n a nd c o nstruc tio n, a s we ll a s future o p e ra tio n.

The p ro je c t is fo llo wing PRC ’ s la ws a nd re g ula tio ns. G ive n the sc a le a nd na ture o f the

p ro je c t, a n EIA fo rm is re q uire d fo r the p ro je c t a nd is to b e sub mitte d to the lo c a l EPB

fo r a p p ro va l. The lo c a l c o mmunitie s we re no t c o nsulte d d uring the p ro c e ss o f

p re p a ring the EIA fo rm. The p ro je c t EIA fo rm is a va ila b le fo r re vie w d uring the a ud it

a nd it is fo und tha t the imp a c ts a re q uite limite d . The PMO d id no t ha ve re c o rd s o f

e ng a g e me nt with sta ke ho ld e rs. It is sug g e ste d tha t PMO ne e d to fo llo w SG E’ s ESMS

to c o nd uc t sta ke ho ld e r e ng a g e me nt a nd ke e p re le va nt re c o rd s.

C urre ntly, the p ro je c t is und e r c o nstruc tio n. Re p o rte d ly, d uring o p e ra tio n, o p e ra to rs

o f the p ro je c t a re a c ting a s the fo c a l p o int with the lo c a l c o mmunitie s (e nd use rs).

The o p e ra to rs a re re sp o nsib le fo r e ng a g ing with the lo c a l c o mmunity in p ro ximity to

the p ro je c t a nd o ra lly re p o rt to the PMO o c c a sio na lly.

3.3.6 Grie va nc e Re dre ss

The p ro je c t ma na g e me nt re p o rte d tha t g rie va nc e s (if a ny) ra ise d b y lo c a l

c o mmunitie s d uring the p ro c e ss o f c o nstruc tio n we re ha nd le d b y the re a l e sta te

d e ve lo p e r a nd the p ro je c t wa s no t invo lve d in the p ro c e ss o f a d d re ssing g rie va nc e s

tha t the lo c a l c o mmunitie s ha d o n the p ro je c t. The c o nsulte d p ro je c t ma na g e me nt

o ffic e ha s no kno wle d g e a b o ut the c o nc e rns a nd g rie va nc e s a d d re sse d b y the

re sid e ntia l/ c o mme rc ia l d e ve lo p e r a s a t the time o f the a ud it. The re we re no re sid e nts

a t the p ro je c t site , ne ithe r re sid e nts living in the re sid e ntia l c o mp o und . The PMO

sho uld fo llo w the re q uire me nts o f SG E’ s ESMS to e sta b lish G rie va nc e Re d re ss

Me c ha nism a nd ma na g e g rie va nc e s o f sta ke ho ld e rs.

At the time o f a ud it, the p ro je c t is und e r c o nstruc tio n. It is id e ntifie d the re is no

g rie va nc e p ro c e d ure o r d e sig na te d p e o p le fo r ma na g ing the g rie va nc e s ra ise d b y

the lo c a l c o mmunitie s d uring the c o nstruc tio n. No re c o rd s o f g rie va nc e s a re

a va ila b le fo r re vie w. It is und e rsto o d tha t d istric t he a ting is we lc o me d b y the lo c a l

re sid e nts a nd the d isturb a nc e b e c a use o f imp a c t o n ro a d a c c e ss is c o nsid e re d

a c c e p ta b le .


Pa g e 23

The p ro je c t is c urre ntly a t c o nstruc tio n sta g e . The p la n is d uring o p e ra tio n, the

C o mp a ny’ s Ma inte na nc e C o ntro l Pro c e d ure (Q / SG E-Q P-08-2014) is trig g e re d fo r the

p ro je c t. G rie va nc e s ra ise d b y e nd use rs re g a rd ing d e live ry o f he a ting se rvic e s a re

ma na g e d b y the Ma rke ting De p a rtme nt o f the Xia nya ng PMO . A 24-ho ur ho tline is

e sta b lishe d a nd the re a re d e sig na te d re c e p tio nists fo r re g iste ring , re sp o nd ing to a nd

d o c ume nting the g rie va nc e s a nd p ro b le ms tha t the lo c a l c o mmunity ha ve o n the

Pro je c t. O utso urc e d ve nd o r is re sp o nsib le o f visiting the ho me o f the c la ima nts a nd

d e a ling issue s re q uiring ma inte na nc e / re p a ir.

Ke y Issue s a nd Finding s on G rie va nc e Re dre ss:

• The re is no syste m/ p ro c e d ure in p la c e to re c o rd a nd tra c k the c o mp la ints

ra ise d b y the lo c a l c o mmunity, e mp lo ye e s a nd c o nstruc tio n wo rke rs. Thus, no

re c o rd o f p re vio us g rie va nc e s wa s a va ila b le fo r re vie w, whic h is a no n-

c o nfo rma nc e a g a inst ADB sa fe g ua rd s.

3.3.7 La bor a nd Soc ia l Prote c tion

The Pro je c t JJYP a nd Pro je c t YG SY a re ma na g e d b y the Xia nya ng PMO . In to ta l, the re

a re 15 sta ff in the Xia nya ng PMO with e ig ht ma le sta ff a nd se ve n fe ma le sta ff. The re

a re 14 Ha n C hine se a nd 1 Hui C hine se . The ma le wo rke rs a re typ ic a lly e ng a g e d in

e ng ine e ring p o sitio ns, whilst the fe ma le s a re in no n-e ng ine e ring p o sitio ns suc h a s

a d ministra tio n a nd ma rke ting .

The p ro je c t a d o p ts a ll c o rp o ra te HR p o lic ie s a nd p ro c e d ure s. La b o r re la te d issue s

a re c e ntra lly ma na g e d b y the HR De p a rtme nt o f the Xia nya ng PMO . As re p o rte d b y

the HR ma na g e r, the Xia nya ng PMO ha s b e e n trying to hire p e o p le fro m surro und ing

a re a s to ma inta in sta ff sta b ility a nd re d uc e turno ve r ra te , a ltho ug h ne ithe r ha ve a

fo rma l lo c a l la b o r re c ruitme nt p o lic y.

The la b o r c o ntra c ts we re d ire c tly sig ne d b e twe e n the Xia nya ng PMO a nd the

ind ivid ua l e mp lo ye e s, a nd no c o lle c tive b a rg a ining a g re e me nts we re sig ne d .

Re p o rte d ly, the wo rke rs a re typ ic a lly wo rking five d a ys with 40 ho urs in o ne shift

b e twe e n Mo nd a y a nd Frid a y. Wa g e s a re p a id o n the la st wo rking d a y o f e a c h mo nth.

As c o nfirme d b y the c o nsulte d p ro je c t ma na g e me nt, the sta ff a re p a id with o ne

a d d itio na l mo nth o f sa la ry to o ffse t the c o mp e nsa tio n fo r e xtra wo rking ho urs d uring

the we e ke nd s a nd the y think it is re a so na b le a s the ir d a ily jo b is q uite fle xib le so the


Pa g e 24

c o nc e ntra tio n a t wo rk is limite d . Ho we ve r, this is still a no n-c o mp lia nc e a g a inst le g a l

re g ula tio n. No se xua l ha ra ssme nt o r d isc rimina tio n wa s id e ntifie d d uring wo rke r

inte rvie w.

Ma inte na nc e a nd o p e ra tio n sta ff a re c o ntra c te d via a third -p a rty la b o r

ma na g e me nt a g e nt. Ac c o rd ing to EIA fo rm a nd c o nfirma tio n fro m the c o nsulte d

p ro je c t ma na g e me nt, d uring the o p e ra tio n p e rio d o f the p ro je c t, the re will b e fo ur

wo rke rs wo rking a t the p ro je c t. The o nsite te a m le a d e r will b e wo rking thro ug ho ut the

ye a r. All the wo rke rs wo rking a t the p ro je c t will b e ma le . The o p e ra to rs will b e

g ro und e d into thre e te a ms a nd wo rking o n thre e shifts fo r ro ta tio n thro ug ho ut the

he a ting se a so n. The p ro je c t is c urre ntly a t c o nstruc tio n sta g e a nd the re we re no

o p e ra to rs a va ila b le fo r inte rvie w a t this sta g e . Xia nya ng PMO ne e d s to mo nito r a nd

c he c k the la b o r c o ntra c ts sig ne d b e twe e n the third -p a rty la b o r ma na g e me nt a g e nt

a nd the e mp lo ye e s o n the c o mp lia nc e a g a inst C hine se la b o r la w.

3.3.8 Ge nde r a nd De ve lopme nt

Altho ug h the re a re no sp e c ific p ro c e d ure s re g a rd ing g e nd e r a nd d e ve lo p me nt

id e ntifie d in a ny o f the C o mp a ny’ s e xisting p o lic ie s a nd p ro c e d ure s, no ind ic a tio n o f

g e nd e r ine q ua lity o r d isc rimina tio n is id e ntifie d fro m d o c ume nt re vie w a nd wo rke r

inte rvie w.

To d a te , 7 o ut the 15 d ire c t wo rke rs a t the Xia nya ng PMO a re fe ma le . The ma le s a re

skille d wo rke rs p rima rily fo c using o n e ng ine e ring , whilst fe ma le s a re o n no n-

e ng ine e ring p o sitio ns suc h a s a d ministra tio n, fina nc e a nd ma rke ting . Ho we ve r, it

sho uld b e no te d tha t the he a d o f the Xia nya ng PMO is fe ma le , while the SED

ma na g e r o f the Sha a nxi SG E is a lso a fe ma le . This is a c o nfirma tio n to the c o nsulta tio n

whe n the c o nsulte d fe ma le e mp lo ye e s sa id the y we re tre a te d e q ua lly in p a yme nt,

tra ining a nd p ro mo tio n. All the fe ma le e mp lo ye e s a t the p ro je c t a re e ntitle d to the

sa me sp e c ific b e ne fits (158 d a ys o f ma te rnity le a ve , wo me n’ s to ile ts, a nd b o o k

c o up o n o n Wo me n’ s Da y) a s o the r fe ma le s in the C o mp a ny. In c o nsid e ra tio n o f

fe a ture s o f sub c o ntra c te d p o sitio ns (i.e . nig ht shift, ma c hine o p e ra tio n, he a vy

ma nua l o p e ra tio n), a ll o p e ra to rs invo lving ma inte na nc e a nd o p e ra tio n a t the p ro je c t

d uring o p e ra tio n p e rio d will b e ma le .


Pa g e 25

No no n-c o mp lia nc e re g a rd ing g e nd e r a nd d e ve lo p me nt is id e ntifie d a g a inst e ithe r

the PRC re g ula tio ns o r ADB SPS fo r the p ro je c t. In a d d itio n, a c c o rd ing to c o nsulta tio n

with b o th p ro je c t ma na g e me nt a nd the ra nd o mly se le c te d wo rke rs, no

d isp ro p o rtio na te imp a c ts we re c a use d b y the p ro je c t o n wo me n.

3.4 Proje c t Ya ng Gua ng Sha ng Yua n

3.4.1 Loc a tion

The Ya ng G ua ng Sha ng Yua n (阳光尚苑 ) G e o the rma l Pro je c t (“ Pro je c t YG SY” ) is

lo c a te d in two a d ja c e nt lo c a tio ns:

• Pro d uc tio n we lls a nd re inje c tio n we lls a re lo c a te d a t junc tio n o f We nxing Ro a d

a nd No rth Xia nto ng Ro a d in Xia nya ng c ity, Sha a nxi Pro vinc e . The a re a is a

p a rc e l o f va c a nt la nd tha t the Xia nya ng PMO le a se d fro m the Sujia p u Villa g e ;

• He a t tra nsfe r sta tio ns a nd re inje c tio n sta tio n a re lo c a te d o n the B1 flo o r

(und e rg ro und c a r p a rk) in the Pha se I YG SY Re sid e ntia l Pro je c t. The Pha se I

YG SY Re sid e ntia l Pro je c t is a c o mme rc ia l re sid e ntia l p ro je c t c o ve ring 14 hig h-

rise re sid e ntia l b uild ing s.

Q ind u Distric t is the c e ntra l d istric t o f Xia nya ng C ity, with a n a re a o f a p p ro xima te ly

259.4 km 2. Ele va tio ns o f the d istric t ra ng e fro m 380-470 m a b o ve se a le ve l.

Q ind u Distric t is a tra d itio na l Ha n C hine se d o mina te d a re a . No e thnic mino rity

d o mina te d c o mmunitie s a re id e ntifie d e ithe r thro ug h a ne c d o te inte rne t se a rc h o r





The Pro je c t YG SY is ma na g e me nt b y the Xia nya ng , Sha a nxi SG E. The c usto me rs o f

the he a t p ro vid ing se rvic e will b e the re sid e nts o f the Pha se I YG SY Re sid e ntia l Pro je c t.

O n 9 O c to b e r 2018, Sta nte c c o nd uc te d a site visit to the Pro je c t YG SY, whic h wa s still


Pro je c t YG SY is e xp e c te d to b e c o mp le te d b y 15 No ve mb e r 2018. The YG SY

Re sid e ntia l Pro je c t will p ro vid e 5,000 a p a rtme nts in to ta l. The p ro je c t c o mp o ne nts

a nd the ir sta tus a s o f 9 O c to b e r 2018 is summa rize d in the ta b le b e lo w.


Pa g e 26


Com pone nt Sta tus o n 9 O c tobe r 2018 Loc a tion

Two p ro d uc tio n we lls O ne o f the p ro d uc tio n we lls

wa s und e r c o nstruc tio n.

C o nstruc tio n o f the o the r

p ro d uc tio n we ll wa s no t ye t

c o mme nc e d .

A p a rc e l o f va c a nt la nd lo c a te d

a t junc tio n o f We nxing Ro a d a nd

No rth Xia nto ng Ro a d

Two Re inje c tio n We lls C o nstruc tio n wa s no t

c o mme nc e d .

Two He a t Tra nsfe r Sta tio ns Und e r c o nstruc tio n.

Pha se I YG SY Re sid e ntia l Pro je c t O ne Re inje c tio n Sta tio n Und e r c o nstruc tio n.

Pip e line s (2,500 m) Und e r c o nstruc tio n.

The d e sig ne d he a ting a re a is 253.3 tho usa nd m 2 c o ve ring the Pha se I YG SY Re sid e ntia l

Pro je c t. The we ll d rilling , infra struc ture c o nstruc tio n a nd e q uip me nt insta lla tio n

we re / will b e o utso urc e d to lic e nse d ve nd o rs liste d in Sino p e c ’ s sub c o ntra c to r

inve nto ry.



The p e rmit c o mp lia nc e sta tus o f the Pro je c t YG SY is summa rize d a s fo llo ws in the ta b le :

Ta ble 3- 5 Pe rmit Complia nc e Sta tus o f the Pro je c t YG SY

Pe rm it Issuing

Authority Re m a rk


EIA a nd

Ap p ro va l

Xia nya ng C ity

EPB

The EIA fo rm wa s p re p a re d b y a lic e nse d institute in Ap ril 2018

a nd the c o rre sp o nd ing EIA a p p ro va l wa s issue d b y Xia nya ng C ity

EPB d a te d 18 Ma y 2018. Ba se d o n o nsite o b se rva tio n a nd

inte rvie w with the p ro je c t ma na g e me nt, the Pro je c t YG SY’ s

a c tua l d e ve lo p me nt is c o nsiste nt with the EIA fo rm a nd

a p p ro va l.

Wa te r a nd So il

C o nse rva tio n

Ap p ro va l



Ene rg y Sa ving

Asse ssme nt




Pa g e 27

Pe rm it Issuing

Authority Re m a rk

Wo rk Sa fe ty

Asse ssme nt



O c c up a tio na l

Dise a se a nd

Ha za rd s

Asse ssme nt



Fire Pro te c tio n

De sig n

Ap p ro va l o r

Re g istra tio n

No t a p p lic a b le The p ro je c t ma na g e me nt o ffic e re p o rte d tha t g ive n the HC s a re

lo c a te d in the re sid e ntia l p ro je c t, the HC s a re inc lud e d a s p a rt


no ind ivid ua l a p p ro va l is re q uire d sp e c ific a lly fo r the HC s. Suc h

a p p ro va l is no t re q uire d fo r the we lls.

Wa te r

Ab stra c tio n

Pe rmit

No t a p p lic a b le Ac c o rd ing to ma na g e me nt inte rvie w, Wa te r Ab stra c tio n Pe rmit

is no t re q uire d fo r g e o the rma l p ro je c ts b y lo c a l wa te r a utho rity.

Inste a d g e o the rma l wa te r is d e e me d a s re so urc e s a nd

ma na g e d b y the lo c a l la nd re so urc e s b ure a u.

G e o the rma l

Mining Pe rmit

Xia nya ng C ity

La nd

Re so urc e s

Bure a u

A Mining Rig ht Tra nsfe r a g re e me nt wa s sig ne d b e twe e n

Xia nya ng C ity La nd Re so urc e s Bure a u a nd Sha a nxi SG E o n 25

Fe b rua ry 2016 a nd is va lid fo r 30 ye a rs.

La nd Use (p re )

Ap p ro va l

No t a p p lic a b le Fo r p ro d uc tio n we lls a nd re inje c tio n we lls, a La nd Le a sing

a g re e me nt wa s sig ne d b e twe e n Sujia p u Villa g e a nd Sha a nxi

SG E o n 31 Ma y 2018, va lid until 30 Ma y 2038. The p ro je c t ne e d s

to fo llo w with the lo c a l Bure a u o f La nd a nd Re so urc e s (BO LAR)

to o b ta in La nd Use Pre -a p p ro va l fo r the la nd p e rma ne ntly

a c q uire d .

G ive n the he a t tra nsfe r sta tio n a nd re inje c tio n sta tio n a re

lo c a te d in the Pha se I YG SY Re sid e ntia l Pro je c t, no La nd Use

Ap p ro va l is re q uire d .


Enviro nme nta l

C AI

No t ye t

a p p lic a b le

G ive n the Pro je c t YG SY wa s still und e r c o nstruc tio n a t the time o f


c o nd uc te d .

Wa te r a nd So il

C o nse rva tio n

Pla n C AI



Wo rk Sa fe ty

C AI



O c c up a tio na l

He a lth Fa c ility

C AI




Pa g e 28

Pe rm it Issuing

Authority Re m a rk

Fire Pro te c tio n

C AI

No t a p p lic a b le The p ro je c t ma na g e me nt re p o rte d tha t g ive n the HC s a re

lo c a te d in the re sid e ntia l p ro je c t, the HC s will b e inc lud e d a s p a rt

o f the re sid e ntia l p ro je c t’ s Fire Pro te c tio n C AI whilst no ind ivid ua l

a p p ro va l is re q uire d sp e c ific a lly fo r the HC s. Suc h a p p ro va l is no t

re q uire d fo r the we lls.

La nd Use

C e rtific a te

No t a p p lic a b le Fo r p ro d uc tio n we lls a nd re inje c tio n we lls, a La nd Le a sing

a g re e me nt wa s sig ne d b e twe e n Sujia p u Villa g e a nd Sha a nxi

SG E o n 31 Ma y 2018, va lid until 30 Ma y 2038. The p ro je c t ne e d s

to fo llo w with the lo c a l BO LAR to o b ta in La nd Use C e rtific a te fo r

the la nd p e rma ne ntly a c q uire d .

G ive n the he a t tra nsfe r sta tio n a nd re inje c tio n sta tio n a re

lo c a te d in the Pha se I YG SY Re sid e ntia l Pro je c t, no La nd Use

C e rtific a te is re q uire d .


Pro je c t YG SY a re summa rize d a s fo llo ws, to g e the r with re le va nt mitig a tio n me a sure s.





site visit, the ma jo rity o f the YG SY Re sid e ntia l Pro je c t wa s c o mp le te d , while the

la nd sc a p e d a re a a nd c a r p a rk we re still und e r c o nstruc tio n, whic h c o ntrib ute d the







o f the YG SY Re sid e ntia l Pro je c t wa s c o mp le te d , while the la nd sc a p e d a re a a nd c a r

p a rk we re still und e r c o nstruc tio n, whic h c o ntrib ute d the b a c kg ro und no ise le ve l. Thus,

in b o th c o mp lia nc e a nd risk ma na g e me nt p ro sp e c tive , b o und a ry no ise mo nito ring is


Wa ste wa te r: Drilling wa ste wa te r wa s sto re d in o ne mud p it lo c a te d ne a r the d rilling

lo c a tio n. Re p o rte d ly the wa ste wa te r wa s re use d fo r d rilling mud c o nd itio ning . The


Pa g e 29

mud p it wa s p ro vid e d b y two imp e rme a b le p o lye thyle ne she e ts b a se d o n o nsite

o b se rva tio n. Ba se d o n inte rvie w with the p ro je c t ma na g e me nt a nd the p ro je c t EIA

d o c ume nt, mud a nd d rilling wa ste a re a lso sto re d in the mud p it. The p ro je c t

ma na g e me nt re p o rte d tha t the d rilling sub c o ntra c to r will b e re sp o nsib le fo r the

tre a tme nt o f the c o nte nt in the mud p it. The wa ste is no t c a te g o rize d a s ha za rd o us

wa ste a s p e r the EIA d o c ume nt o f the p ro je c t. Ho we ve r, a p ro c e d ure fo r c o nd uc ting

third -p a rty c o nfirma to ry te sting o n the wa ste is no t in p la c e . Do me stic wa ste wa te r

sho uld me e t the C la ss II limits o f Ye llo w Rive r Ba sin (Sha a nxi Se c tio n) Inte g ra te

Wa ste wa te r Disc ha rg e Limit (DB 61/ 224-2011). Ho we ve r, b a se d o n o nsite o b se rva tio n,

d o me stic wa ste wa te r wa s d ire c tly d isc ha rg e d into a p it with no lining .

So lid Wa ste : Do me stic wa ste wa s re p o rte d ly c o lle c te d b y lo c a l munic ip a l sa nita ry

sta tio n o n a re g ula r b a sis. Ho we ve r, d o me stic wa ste wa s o b se rve d in the p it whic h

a lso re c e ive s d o me stic wa ste wa te r. In a d d itio n, wa ste c he mic a l (b e nto nite , Na 2C O 3,

lub ric a nt, e tc . fo r d rilling fluid fo rma tio n) p a c ka g ing ma te ria ls we re sto re d a t a n

unshe lte re d unp a ve d a re a with no we a the r-p ro o f a nd sp ill c o ntro l fa c ilitie s. The

d rilling sub c o ntra c to r re p o rte d tha t the p a c ka g ing ma te ria ls will b e re mo ve d a fte r

c o mp le tio n o f the d rilling .












sub c o ntra c to rs. Ho we ve r:

• O ne we ld e r d id no t we a r ma sk whe n he wa s c o nd uc ting we ld ing a c tivity;

• No e me rg e nc y re sp o nse d rill wa s c o nd uc te d b y the d rilling sub c o ntra c to r

b e fo re c o mme nc e me nt o f the d rilling a c tivity a s re q uire d b y Sha a nxi SG E;


Pa g e 30

• Lub ric a nt in d rums we re p la c e d a t a n unshe lte re d unp a ve d a re a with no

se c o nd a ry c o nta inme nt p ro visio n.

The we ll d rilling site wa s p ro vid e d with fe nc e fo r se p a ra tio n. No o the r a c tivitie s

(c o nstruc tio n, fa rming , re sid e ntia l) we re o b se rve d in the vic inity o f the d rilling site . The

he a t tra nsfe r sta tio ns a nd re inje c tio n sta tio n a re lo c a te d within the Pha se I YG SY

Re sid e ntia l Pro je c t, whic h wa s surro und e d b y wa lls with se c urity p ro visio n a t e a c h o f

the e ntra nc e .









ma te ria l o n the wa ll, se le c tio n o f no ise -mitig a ting wind o ws, a re a lso p ro p o se d in the

p ro je c t EIA d o c ume nt. The p ro je c t b o und a ry no ise is sub je c t to the C la ss II limit o f

Emissio n Sta nda rd fo r Industria l Ente rp rise s No ise a t Bo unda ry (G B12348-2008 i.e . 50 d B

(A) a t nig ht a nd 60 d B (A) in d a y time ).














Pa g e 31


e nviro nme nt.











Ac c o rd ing to d o c ume nt re vie w, the Pro je c t YG SY will re d uc e c a rb o n d io xid e e missio n



a nd nitro g e n o xid e b y 61.34 to ns a nd 24.75 to ns p e r ye a r, re sp e c tive ly, whic h




d uring c o nstruc tio n a nd o p e ra tio n p e rio d o f the Pro je c t YG SY.


Eithe r Sha a nxi SG E, Xia nya ng PMO no r Pro je c t YG SY ha s d e ve lo p e d a sp e c ific


The Pro je c t YG SY wa s und e r c o nstruc tio n a t the time o f the site visit. As p e r the p ro je c t




• The Pro je c t YG SY ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


• Re p o rte d ly the d rilling sub c o ntra c to r is re sp o nsib le fo r the d isp o sa l o f the d rilling

wa ste wa te r with mud a nd d rilling wa ste . Ho we ve r, Pro je c t YG SY ha s no

me c ha nism to tra c k/ mo nito r the d isp o sa l a nd tra nsp o rta tio n p ro c e ss.


Pa g e 32




• Ba se d o n the p ro je c t EIA d o c ume nt, d o me stic wa ste wa te r sho uld me e t the

C la ss II limits o f Ye llo w Rive r Ba sin (Sha a nxi Se c tio n) Inte g ra te Wa ste wa te r

Disc ha rg e Limit (DB 61/ 224-2011). Ho we ve r, b a se d o n o nsite o b se rva tio n,

d o me stic wa ste wa te r wa s d ire c tly d isc ha rg e d into a p it with no lining .

• Do me stic wa ste wa s re p o rte d ly c o lle c te d b y lo c a l munic ip a l sa nita ry sta tio n

o n a re g ula r b a sis. Ho we ve r, d o me stic wa ste wa s o b se rve d in the p it whic h

a lso re c e ive s d o me stic wa ste wa te r.

• Wa ste c he mic a l (b e nto nite , Na 2C O 3, lub ric a nt, e tc . fo r d rilling fluid fo rma tio n)

p a c ka g ing ma te ria ls we re sto re d a t a n unshe lte re d unp a ve d a re a with no


• O ne we ld e r d id no t we a r ma sk whe n he wa s c o nd uc ting we ld ing a c tivity;

• No e me rg e nc y re sp o nse d rill wa s c o nd uc te d b y the d rilling sub c o ntra c to r

b e fo re c o mme nc e me nt o f the d rilling a c tivity a s re q uire d b y Sha a nxi SG E;

• Lub ric a nt in d rums we re p la c e d a t a n unshe lte re d unp a ve d a re a with no

se c o nd a ry c o nta inme nt p ro visio n.



The Pro je c t Le a se d 10 mu (a b o ut 6,660 sq m) la nd fro m Sujia p u villa g e fo r the

c o nstruc tio n o f p ro d uc tio n we lls a nd re inje c tio n we lls in 2017. As no tic e d d uring o nsite

visit a nd inte rvie w to Mr. Wu (the villa g e he a d ) a nd Mr. Su (G ro up le a d e r o f Villa g e

G ro up 2), the who le villa g e (thre e villa g e g ro up s, 1560 villa g e me mb e rs) sta rte d to

re c e ive la nd a c q uisitio n a nd re se ttle me nt sinc e 2014 d ue to urb a niza tio n. The re a re

re sid e ntia l c o mp o und s b e e n b uilt a nd so me a re still und e r c o nstruc tio n a t the villa g e .

The re fo re , the villa g e rs ha ve a ll b e e n re lo c a te d a nd no w the y a re a ll living in the

c o mp e nsa te d a p a rtme nts 3-5km a wa y fro m the o rig ina l villa g e . The re a re no fa rming

a c tivitie s o f the la nd sinc e the n.

The re nt is 80k C NY p e r ye a r p a id b y the p ro je c t fo r the la nd to b e use d fo r we lls.

Ac c o rd ing to the c o nsulta tio n with Mr. Wu a nd Mr. Su, the villa g e still ha ve so me

re ma ining la nd a nd a sse ts, fro m whic h the villa g e c o mmitte e is still a b le to c re a te


Pa g e 33

inc o me fo r the c o mmunity. The inc o me is d isb urse d to villa g e rs’ b a nk a c c o unt

re g ula rly a nd the re a re villa g e me e ting s b e fo re the d isb urse me nt. The re nt fo r the 10

mu la nd ha s a lso b e e n p ut into the inc o me p o o l fro m va rie s o f la nd re nt a nd b usine ss

a c tivitie s o f the villa g e fo r the d isb urse me nt. Sp e c ific a lly, the re nt will b e p a id to

G ro up 2 o f the Villa g e C o mmitte e a s the 10 mu la nd o rig ina lly b e lo ng s to G ro up 2

(524 villa g e me mb e rs).

Ho we ve r, the 48 m 2 la nd fo r p ro d uc tio n we lls a nd re inje c tio n we lls a re p e rma ne nt

la nd , while o the r la nd will b e te mp o ra rily o c c up ie d fo r the c o nstruc tio n o f the we lls.

The p ro je c t still le a se d a ll 10 mu la nd fo r 20 ye a rs a s p e r the re q ue st o f the villa g e , in

o rd e r to g e t the sup p o rt fro m lo c a l villa g e . It is fine fo r the la nd le a se fo r the te mp o ra ry

la nd use d uring c o nstruc tio n sta g e , ho we ve r, the p e rma ne nt la nd use ne e d s to g o

thro ug h la nd a c q uisitio n re g ula to ry p ro c e ss while the p ro je c t ha sn’ t. Ac c o rd ing to

the p ro je c t ma na g e me nt, the p la n is to c o ntinue to le a se the la nd a fte r 20 ye a rs o f

c urre nt la nd le a se c o ntra c t. The re wo uld b e no la nd a c q uisitio n fo r tho se la nd use d

fo r we lls. This isn’ t in c o mp lia nc e with C hine se re g ula to ry re q uire me nt. The risk is

c o nsid e re d a s no t sig nific a nt a s the la nd a re a isn’ t sig nific a nt, while the la nd is in a

sub urb a n a re a , with no live liho o d re la te d a c tivitie s.

The he a t c e nte rs a re lo c a te d within the Pha se I YG SY Re sid e ntia l Pro je c t. The p ro je c t

ma na g e me nt re p o rte d tha t the la nd fo r siting g e o the rma l we ll he a d s a nd HC s we re

p ro vid e d b y the re a l e sta te d e ve lo p e rs fo r fre e . The Pro je c t wa s no t invo lve d in la nd

a c q uisitio n a nd d o e s no t ho ld a ny title fo r the la nd . The p ip e line s wo uld b e la id a lo ng

the ro a d a nd d isturb e d la nd wo uld b e re sto re d to its p re vio us c o nd itio ns. No

e c o no mic d isp la c e me nt wa s a ffe c te d b y p ip e line -la ying . The re fo re , ADB SR2 is no t

trig g e re d fo r the p ro je c t a nd the c a te g o riza tio n fo r invo lunta ry re se ttle me nt is

c la ssifie d a s Ca te g ory C .


Ac c o rd ing to the p ro je c t ma na g e me nt a nd c o nsulte d villa g e le a d e rs, no e thnic

mino rity wa s imp a c te d b y the p ro je c t. The re fo re , the ADB SR3 is a lso no t trig g e re d fo r

the p ro je c t a nd the c a te g o riza tio n fo r ind ig e no us p e o p le is re c o g nize d a s Ca te g ory

C .


Pa g e 34


The C o mp a ny o r the Xia nya ng PMO d o e s no t ha ve a n in p la c e p ro c e d ure to mo nito r

a nd re p o rt p ro je c t so c ia l mitig a tio n me a sure s, p e rfo rma nc e s a nd re p o rt p ro g re ss,






Ke y Issue s a nd Finding s on La nd Ac quisitio n a nd Re se ttle me nt:

• The re a re 48 m 2 la nd fo r p ro d uc tio n we lls a nd re inje c tio n we lls p e rma ne ntly

a ffe c te d . Ho we ve r, the p ro je c t le a se d the la nd inste a d o f la nd a c q uisitio n.




Ac c o rd ing to Sta nte c ’ s o nsite c o nsulta tio ns a s we ll a s simila r p ro je c t e xp e rie nc e s, fo ur

ma jo r sta ke ho ld e r g ro up s a re id e ntifie d fo r the p ro je c t, inc lud ing (a ) munic ip a l

g o ve rnme nt a utho ritie s, (b ) re a l e sta te d e ve lo p e rs, (c ) lo c a l c o mmunity (g e o the rma l

he a ting e nd use rs), a nd (d ) lo c a l re sid e nts a ffe c te d b y te mp o ra ry la nd o c c up a tio n.

It is und e rsto o d e a c h p ro je c t ma na g e me nt o ffic e is re sp o nsib le fo r lia iso n with lo c a l

g o ve rnme nt, a nd c o mmunic a ting with re a l e sta te d e ve lo p e rs d uring p ro je c t d e sig n

a nd c o nstruc tio n, a s we ll a s future o p e ra tio n.



fo r a p p ro va l. Sinc e the re is no le g a l re q uire me nt re g a rd ing c o nsulta tio ns with lo c a l

c o mmunity fo r EIA fo rm, the lo c a l c o mmunitie s we re no t c o nsulte d d uring the p ro c e ss

o f p re p a ring the EIA fo rm. The p ro je c t EIA fo rm is a va ila b le fo r re vie w d uring the a ud it

a nd it is fo und tha t the imp a c ts a re q uite limite d .




Pa g e 35



Ke y Issue s a nd Finding s on Sta ke holde r Eng a g e me nt:

• The re is no sta ke ho ld e r a na lysis p rio r to la nd le a se , ne ithe r re c o rd s to sho w the

e ng a g e me nt with lo c a l c o mmunitie s re g a rd ing la nd le a se .






ha s no kno wle d g e a b o ut the c o nc e rns a nd g rie va nc e s a d d re sse d b y the

re sid e ntia l/ c o mme rc ia l d e ve lo p e r a s a t the time o f the a ud it the re we re no re sid e nts

a t the p ro je c t site , ne ithe r re sid e nts living in the re sid e ntia l c o mp o und .






a c c e p ta b le .




ma na g e d b y the Ma rke ting De p a rtme nt o f the Xia nya ng PMO . A 24-ho ur ho tline is

e sta b lishe d a nd the re a re d e sig na te d re c e p tio nists fo r re g iste ring , re sp o nd ing to a nd








Pa g e 36




The Pro je c t JJYP a nd Pro je c t YG SY a re ma na g e d b y the Xia nya ng PMO . Ple a se re fe r

to Se c tio n 3.3.7 fo r the c o nte nt o f this se c tio n.


The Pro je c t JJYP Pro je c t YG SY a re ma na g e d b y sa me Pro je c t Ma na g e me nt O ffic e .

Ple a se re fe r to Se c tio n 3.3.8 fo r the c o nte nt o f this se c tio n.

3.5 Proje c t We i Shui Qu Xia ng (渭水曲项)

3.5.1 Loc a tion

The We i Shui Q u Xia ng (渭水曲项) G e o the rma l Pro je c t (“ Pro je c t WSQ X” ) is lo c a te d in

the WSQ X Re sid e ntia l Pro je c t a t Q inha n Ave nue , Linto ng Distric t, Xi’ a n c ity, Sha a nxi

Pro vinc e . The WSQ X Re sid e ntia l Pro je c t is a c o mme rc ia l re sid e ntia l p ro je c t tha t c o ve rs

18 multi-sto re y re sid e ntia l b uild ing s. The WSQ X Re sid e ntia l Pro je c t will p ro vid e 522

a p a rtme nts in to ta l.

Linto ng Distric t is lo c a te d in the e a ste rn p o rtio n o f Xi’ a n C ity with a n a re a o f

a p p ro xima te ly 128.6 km 2. Ele va tio ns o f the d istric t ra ng e fro m 345-1302 me te rs (m)

a b o ve se a le ve l. Linto ng Distric t is a n a re a fa mo us fo r the ho t sp ring fo r tho usa nd

ye a rs in C hina .

Linto ng Distric t is a tra d itio na l Ha n C hine se d o mina te d a re a . No e thnic mino rity






Pa g e 37


The Pro je c t WSQ X is ma na g e me nt b y the Linto ng PMO , Sha a nxi SG E. All p ro je c t

fa c ilitie s o f the Pro je c t WSQ X will b e b uilt within the a re a o f the WSQ X Re sid e ntia l

Pro je c t. The c usto me rs o f the he a t p ro vid ing se rvic e will b e the re sid e nts o f the WSQ X


O n 10 O c to b e r 2018, Sta nte c c o nd uc te d a site visit to the Pro je c t WSQ X, whic h wa s

still und e r c o nstruc tio n. Ac c o rd ing to the p ro je c t ma na g e me nt, the c o nstruc tio n o f

the Pro je c t WSQ X is e xp e c te d to b e c o mp le te d b y 15 No ve mb e r 2018. The p ro je c t






O ne He a t Tra nsfe r a nd

Re inje c tio n Sta tio n

Und e r c o nstruc tio n. By 15 No ve mb e r 2018

Pip e line s (1,000 m) Und e r c o nstruc tio n. By 15 No ve mb e r 2018

The d e sig ne d he a ting a re a is 150 tho usa nd m 2, c o ve ring the who le WSQ X Re sid e ntia l



inve nto ry.



The p e rmit c o mp lia nc e sta tus o f the Pro je c t WSQ X is summa rize d a s fo llo ws in the

ta b le :

Ta ble 3- 7 Pe rmit Complia nc e Sta tus o f the Pro je c t WSQ X

Pe rm it Issuing

Authority Re m a rk



Pa g e 38

Pe rm it Issuing

Authority Re m a rk

EIA a nd

Ap p ro va l

Linto ng Bra nc h,

Xi’ a n C ity EPB

The EIA fo rm wa s p re p a re d b y a lic e nse d institute in Aug ust 2018

a nd the c o rre sp o nd ing EIA a p p ro va l wa s issue d b y Linto ng

Bra nc h, Xi’ a n C ity EPB d a te d 14 Se p te mb e r 2018. Ba se d o n o nsite

o b se rva tio n a nd inte rvie w with the p ro je c t ma na g e me nt, the

Pro je c t WSQ X’ s a c tua l d e ve lo p me nt is in c o nsiste nt with the EIA

fo rm a nd a p p ro va l.

Wa te r a nd So il

C o nse rva tio n

Ap p ro va l



Ene rg y Sa ving

Asse ssme nt



Wo rk Sa fe ty

Asse ssme nt



O c c up a tio na l

Dise a se a nd

Ha za rd s

Asse ssme nt



Fire Pro te c tio n

De sig n

Ap p ro va l o r

Re g istra tio n


lo c a te d in the re sid e ntia l p ro je c t, the p ro je c t is inc lud e d a s p a rt



Wa te r

Ab stra c tio n

Pe rmit

Xi’ a n C ity

Wa te r

Re so urc e

Bure a u

The p ro je c t ma na g e me nt re p o rte d tha t the Wa te r Ab stra c tio n

Pe rmit (WAP) wa s in a p p lic a tio n p ro c e ss a t the time o f the site

visit a nd is e xp e c te d to b e issue d in No ve mb e r.

G e o the rma l

Mining Pe rmit

No t a p p lic a b le Ac c o rd ing to ma na g e me nt inte rvie w, Mining Pe rmit is no t

re q uire d fo r g e o the rma l p ro je c ts b y lo c a l la nd re so urc e

a utho rity. Inste a d g e o the rma l wa te r is d e e me d a s wa te r

re so urc e s a nd ma na g e d b y the lo c a l wa te r a utho rity.

La nd Use (p re )

Ap p ro va l

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the WSQ X

Re sid e ntia l Pro je c t, no La nd Use Ap p ro va l is re q uire d p a rtic ula rly

fo r the Pro je c t WSQ X.


Enviro nme nta l

C AI

No t ye t

a p p lic a b le

G ive n the Pro je c t WSQ X wa s still und e r c o nstruc tio n a t the time

o f the site visit, a n Enviro nme nta l C AI mo nito ring ha s no t ye t

b e e n c o nd uc te d .

Wa te r a nd So il

C o nse rva tio n

Pla n C AI



Wo rk Sa fe ty

C AI




Pa g e 39

Pe rm it Issuing

Authority Re m a rk

O c c up a tio na l

He a lth Fa c ility

C AI



Fire Pro te c tio n

C AI





La nd Use

C e rtific a te

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the WSQ X

Re sid e ntia l Pro je c t, no La nd Use C e rtific a te is re q uire d

p a rtic ula rly fo r the Pro je c t WSQ X.


Pro je c t WSQ X a re summa rize d a s fo llo ws, to g e the r with re le va nt mitig a tio n me a sure s.





site visit, the ma jo rity o f the WSQ X Re sid e ntia l Pro je c t we re c o mp le te d , while the

la nd sc a p e d a re a wa s still und e r c o nstruc tio n, whic h c o ntrib ute d the b a c kg ro und

d ust c o nc e ntra tio n. Thus, in b o th c o mp lia nc e a nd risk ma na g e me nt p ro sp e c tive ,

b o und a ry d ust mo nito ring is no t ne e d e d in this c a se .





o f the WSQ X Re sid e ntia l Pro je c t we re c o mp le te d , while the la nd sc a p e d a re a wa s still

und e r c o nstruc tio n, whic h c o ntrib ute d the b a c kg ro und no ise le ve l. Thus, in b o th

c o mp lia nc e a nd risk ma na g e me nt p ro sp e c tive , b o und a ry no ise mo nito ring is no t

ne e d e d in this c a se .

Wa ste wa te r: Drilling wa ste wa te r wa s sto re d in two o nsite a b o ve g ro und wa ste wa te r

ho ld ing ta nks a nd re use d fo r d rilling mud c o nd itio ning . The re ma ining d rilling




Pa g e 40







re g ula r b a sis a s re p o rte d b y p ro je c t ma na g e me nt.












sub c o ntra c to rs. The c o nstruc tio n a re a s o f the Pro je c t WSQ X a re lo c a te d within the

WSQ X Re sid e ntia l Pro je c t, whic h wa s surro und e d b y wa lls with se c urity p ro visio n a t

e a c h o f the e ntra nc e .






No ise : Vib ra tio n c o ntro l me a sure s, suc h a s usa g e o f insula tio n ma te ria l o n the wa ll,

insta lla tio n o f g a ske ts, a re p ro p o se d in the p ro je c t EIA d o c ume nt. The p ro je c t

b o und a ry no ise is sub je c t to the C la ss II limit o f Emissio n Sta nda rd fo r Industria l

Ente rp rise s No ise a t Bo unda ry (G B12348-2008 i.e . 50 d B (A) a t nig ht a nd 60 d B (A) in

d a y time ).


Pa g e 41














e nviro nme nt.











Ac c o rd ing to d o c ume nt re vie w, the Pro je c t WSQ X will re d uc e c a rb o n d io xid e

e missio n o f a p p ro xima te ly 4,150.95 to ns p e r ye a r, re sulting fro m re p la c ing c o a l fo r

he a ting . In a d d itio n, g e o the rma l he a ting will re d uc e a p p ro xima te ly e missio n o f sulfur

d io xid e a nd nitro g e n o xid e with 10.69 to ns a nd 12.7 to ns p e r ye a r, re sp e c tive ly, whic h




d uring c o nstruc tio n a nd o p e ra tio n p e rio d o f the Pro je c t WSQ X.


Pa g e 42


Eithe r Sha a nxi SG E, Linto ng PMO no r Pro je c t WSQ X ha s d e ve lo p e d a sp e c ific


The Pro je c t WSQ X wa s und e r c o nstruc tio n a t the time o f the site visit. As p e r the

p ro je c t EIA d o c ume nt, d uring the o p e ra tio n p e rio d , a nnua l e nviro nme nta l mo nito ring

is p ro p o se d fo r re inje c tio n wa te r a nd b o und a ry no ise .


• The p ro je c t ma na g e me nt re p o rte d tha t the Wa te r Ab stra c tio n Pe rmit wa s in

a p p lic a tio n p ro c e ss a t the time o f the site visit a nd is e xp e c te d to b e issue d in

No ve mb e r.

• The Pro je c t WSQ X ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


• The Pro je c t WSQ X d id no t d o c ume nt/ mo nito r the d isp o sa l o f the re ma ining





g o ve rnme nt.






All p ro je c t fa c ilitie s o f Pro je c t WSQ X a re lo c a te d within the WSQ X Re sid e ntia l Pro je c t,

50 m to the we st o f the ne a re st re sid e ntia l b uild ing s (Build ing # 2).

Ac c o rd ing to the ma na g e me nt inte rvie w, the la nd a nd a re a s a re p ro vid e d fo r fre e

b y the Re a l Esta te De ve lo p e r. The re fo re , the re a re no la nd a c q uisitio n a nd

re se ttle me nt fo r the p ro je c t. The la nd wa s o b ta ine d b y the re a l e sta te d e ve lo p e rs

fro m the g o ve rnme nt ma na g e d la nd ma rke t thro ug h b id ing o r a uc tio n.


fre e use o f the la nd a nd a re a s in the He a t Sup p ly C o ntra c t b e twe e n the PMO a nd


Pa g e 43

the re a l e sta te d e ve lo p e r. The p ro je c t wa s no t invo lve d in la nd a c q uisitio n a nd d o e s

no t ho ld a ny title fo r the la nd .




p ro je c t.

Ba se d o n c o nsulta tio n with the p ro je c t ma na g e me nt a nd o nsite visit o n 10 O c to b e r

2018, no p hysic a l d isp la c e me nt is re q uire d fo r the p ro je c t, ne ithe r e c o no mic

d isp la c e me nt.

O ve ra ll, the c a te g o riza tio n o f invo lunta ry re se ttle me nt fo r the p ro je c t is c o nsid e re d

a s Ca te g ory C a s the re is no id e ntifie d e c o no mic d isp la c e me nt ne ithe r p hysic a l

d isp la c e me nt b e e n a nd to b e c o nd uc te d fo r the p ro je c t.






sc he me within the jurisd ic tio na l a re a o f Linto ng Distric t o f Xi’ a n C ity. The re fo re , ADB

SR3 is no t trig g e re d fo r the p ro je c t a nd the c a te g o riza tio n fo r ind ig e no us p e o p le is

c o nsid e re d a s Ca te g ory C .


The C o mp a ny o r the PMO d o e s no t ha ve a n in p la c e p ro c e d ure to mo nito r a nd

re p o rt p ro je c t so c ia l mitig a tio n me a sure s, p e rfo rma nc e s a nd re p o rt p ro g re ss,







Pa g e 44







(g e o the rma l he a ting e nd use rs. It is und e rsto o d e a c h p ro je c t ma na g e me nt o ffic e is

re sp o nsib le fo r lia iso n with lo c a l g o ve rnme nt, a nd c o mmunic a ting with re a l e sta te

d e ve lo p e rs d uring p ro je c t d e sig n a nd c o nstruc tio n, a s we ll a s future o p e ra tio n.






a nd it is fo und tha t the imp a c ts a re q uite limite d .

















Pa g e 45



a c c e p ta b le .




ma na g e d b y the Ma rke ting De p a rtme nt o f the PMO . A 24-ho ur ho tline is e sta b lishe d

a nd the re a re d e sig na te d re c e p tio nists fo r re g iste ring , re sp o nd ing to a nd










The Pro je c t a d o p ts a ll c o rp o ra te HR p o lic ie s a nd p ro c e d ure s. La b o r re la te d issue s a re

c e ntra lly ma na g e d b y the HR De p a rtme nt o f the Linto ng PMO . C urre ntly, the Pro je c t

ha s a to ta l o f 3 d ire c t sta ff. All the e mp lo ye e s a re Ha n C hine se a nd a re ma le

e mp lo ye e s. As re p o rte d b y the HR ma na g e r, the Linto ng PMO ha s b e e n trying to hire

p e o p le fro m surro und ing a re a s to ma inta in sta ff sta b ility a nd re d uc e turno ve r ra te ,

a ltho ug h ne ithe r ha ve a fo rma l lo c a l la b o r re c ruitme nt p o lic y.

The la b o r c o ntra c ts we re d ire c tly sig ne d b e twe e n the Linto ng PMO a nd the ind ivid ua l

e mp lo ye e s, a nd no c o lle c tive b a rg a ining a g re e me nts we re sig ne d . Re p o rte d ly, the

wo rke rs a re typ ic a lly wo rking five d a ys with 40 ho urs in o ne shift b e twe e n Mo nd a y

a nd Frid a y. Wa g e s a re p a id o n the la st wo rking d a y o f e a c h mo nth. As c o nfirme d b y

the c o nsulte d p ro je c t ma na g e me nt, the sta ff a re p a id with o ne a d d itio na l mo nth o f

sa la ry to o ffse t the c o mp e nsa tio n fo r e xtra wo rking ho urs d uring the we e ke nd s a nd

the y think it is re a so na b le a s the ir d a ily jo b is q uite fle xib le so the c o nc e ntra tio n a t


Pa g e 46

wo rk is limite d . Ho we ve r, this is still a no n-c o mp lia nc e a g a inst le g a l re g ula tio n. No

se xua l ha ra ssme nt o r d isc rimina tio n wa s id e ntifie d d uring wo rke r inte rvie w.








o p e ra to rs a va ila b le fo r inte rvie w a t this sta g e .


Altho ug h the re is no sp e c ific p ro c e d ure re g a rd ing g e nd e r a nd d e ve lo p me nt



inte rvie w.

Sinc e the re a re o nly thre e sta ff ha nd ling p ro je c t c o nstruc tio n, it is a c c e p ta b le to hire

ma le fo r suc h kind o f o nsite wo rk.

No no nc o mp lia nc e re g a rd ing g e nd e r a nd d e ve lo p me nt is id e ntifie d a g a inst e ithe r


with b o th p ro je c t ma na g e me nt a nd the ra nd o mly se le c te d wo rke rs, no

d isp ro p o rtio na te imp a c ts we re c a use d b y the p ro je c t o n wo me n.

3.6 Proje c t Bi Shui Wa n (碧水湾)

3.6.1 Loc a tion

The Bi Shui Wa n (碧水湾) G e o the rma l Pro je c t (“ Pro je c t BSW” ) is lo c a te d in the BSW

Re sid e ntia l Pro je c t a t Ba he Ea st Ro a d , Ba q ia o Distric t, Xi’ a n c ity, Sha a nxi Pro vinc e .

The BSW Re sid e ntia l Pro je c t is a c o mme rc ia l re sid e ntia l p ro je c t tha t c o ve rs 23 multi-

sto re y a nd hig h-rise re sid e ntia l b uild ing s. The BSW Re sid e ntia l Pro je c t will p ro vid e 1,080


Pa g e 47

a p a rtme nts in to ta l. Ba q ia o Distric t is lo c a te d in the e a ste rn p o rtio n o f Xi’ a n C ity with

a n a re a o f a p p ro xima te ly 332 km 2.

Ba q ia o Distric t is a tra d itio na l Ha n C hine se d o mina te d a re a . No e thnic mino rity






The Pro je c t BSW is ma na g e me nt b y the Xi’ a n PMO , Sha a nxi SG E. All p ro je c t fa c ilitie s

o f the Pro je c t BSW will b e b uilt within the a re a o f the BSW Re sid e ntia l Pro je c t. The

c usto me rs o f the he a t p ro vid ing se rvic e will b e the re sid e nts o f the BSW Re sid e ntia l

Pro je c t.

O n 10 O c to b e r 2018, Sta nte c c o nd uc te d a site visit to the Pro je c t BSW, whic h wa s still


Pro je c t BSW is e xp e c te d to b e c o mp le te d b y 15 No ve mb e r 2018. The p ro je c t






O ne He a t Tra nsfe r a nd

Re inje c tio n Sta tio n

Und e r c o nstruc tio n. By 15 No ve mb e r 2018

Pip e line s (500 m) Und e r c o nstruc tio n. By 15 No ve mb e r 2018

The d e sig ne d he a ting a re a is 250 tho usa nd m 2, c o ve ring the who le BSW Re sid e ntia l



inve nto ry.


Pa g e 48



The p e rmit c o mp lia nc e sta tus o f the Pro je c t BSW is summa rize d a s fo llo ws in the ta b le :

Ta ble 3- 9 Pe rmit Complia nc e Sta tus o f the Pro je c t BSW

Pe rm it Issuing

Authority Re m a rk


EIA a nd

Ap p ro va l

Inte rna tio na l

Ha rb o r Distric t

Bra nc h, Xi’ a n

C ity EPB

The EIA fo rm wa s p re p a re d b y a lic e nse d institute in Ma rc h 2018

a nd the c o rre sp o nd ing EIA a p p ro va l wa s issue d b y Inte rna tio na l

Ha rb o r Distric t Bra nc h, Xi’ a n C ity EPB d a te d 16 Ap ril 2018. Ba se d

o n o nsite o b se rva tio n a nd inte rvie w with the p ro je c t

ma na g e me nt, the Pro je c t BSW’ s a c tua l d e ve lo p me nt is

c o nsiste nt with the EIA fo rm a nd a p p ro va l.

Wa te r a nd So il

C o nse rva tio n

Ap p ro va l



Ene rg y Sa ving

Asse ssme nt



Wo rk Sa fe ty

Asse ssme nt



O c c up a tio na l

Dise a se a nd

Ha za rd s

Asse ssme nt



Fire Pro te c tio n

De sig n

Ap p ro va l o r

Re g istra tio n


lo c a te d in the re sid e ntia l p ro je c t, the p ro je c t is inc lud e d a s p a rt



Wa te r

Ab stra c tio n

Pe rmit

Xi’ a n C ity

Wa te r

Re so urc e

Bure a u

The Wa te r Ab stra c tio n Pe rmit wa s issue d b y Xi’ a n C ity Wa te r

Re so urc e Bure a u o n 12 Fe b rua ry 2018 a nd is va lid fo r thre e ye a rs.

The a p p ro ve d a nnua l wa te r a b stra c tio n a mo unt is 252 tho usa nd

m3.

G e o the rma l

Mining Pe rmit

No t a p p lic a b le Ac c o rd ing to ma na g e me nt inte rvie w, Mining Pe rmit is no t

re q uire d fo r g e o the rma l p ro je c ts b y lo c a l la nd re so urc e

a utho rity. Inste a d g e o the rma l wa te r is d e e me d a s wa te r

re so urc e s a nd ma na g e d b y the lo c a l wa te r a utho rity.

La nd Use (p re )

Ap p ro va l

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the BSW Re sid e ntia l

Pro je c t, no La nd Use Ap p ro va l is re q uire d p a rtic ula rly fo r the

Pro je c t BSW.



Pa g e 49

Pe rm it Issuing

Authority Re m a rk

Enviro nme nta l

C AI

No t ye t

a p p lic a b le

G ive n the Pro je c t BSW wa s still und e r c o nstruc tio n a t the time o f


c o nd uc te d .

Wa te r a nd So il

C o nse rva tio n

Pla n C AI



Wo rk Sa fe ty

C AI



O c c up a tio na l

He a lth Fa c ility

C AI



Fire Pro te c tio n

C AI





La nd Use

C e rtific a te

No t a p p lic a b le G ive n a ll p ro je c t c o mp o ne nts a re lo c a te d in the BSW Re sid e ntia l

Pro je c t, no La nd Use C e rtific a te is re q uire d p a rtic ula rly fo r the

Pro je c t BSW.


Pro je c t BSW a re summa rize d a s fo llo ws, to g e the r with re le va nt mitig a tio n me a sure s.





site visit, the ma jo rity o f the BSW Re sid e ntia l Pro je c t wa s c o mp le te d , while the

la nd sc a p e d a re a a nd c a r p a rk we re still und e r c o nstruc tio n, whic h c o ntrib ute d the







o f the BSW Re sid e ntia l Pro je c t wa s c o mp le te d , while the la nd sc a p e d a re a a nd c a r

p a rk we re still und e r c o nstruc tio n, whic h c o ntrib ute d the b a c kg ro und no ise le ve l. Thus,


Pa g e 50

in b o th c o mp lia nc e a nd risk ma na g e me nt p ro sp e c tive , b o und a ry no ise mo nito ring is


Wa ste wa te r: Drilling wa ste wa te r wa s sto re d in two o nsite mud p its a nd re use d fo r

d rilling mud c o nd itio ning . The mud p its we re p ro vid e d b y two imp e rme a b le

p o lye thyle ne she e ts a s re p o rte d b y the p ro je c t ma na g e me nt. The re ma ining d rilling









re g ula r b a sis.












sub c o ntra c to rs. The c o nstruc tio n a re a s o f the Pro je c t BSW a re lo c a te d within the BSW

Re sid e ntia l Pro je c t, whic h wa s surro und e d b y wa lls with se c urity p ro visio n a t e a c h o f

the e ntra nc e .






Pa g e 51





ma te ria l o n the wa ll, no wind o w insta lla tio n, a re a lso p ro p o se d in the p ro je c t EIA

d o c ume nt. The p ro je c t b o und a ry no ise is sub je c t to the C la ss II limit o f Emissio n

Sta nda rd fo r Industria l Ente rp rise s No ise a t Bo unda ry (G B12348-2008 i.e . 50 d B (A) a t

nig ht a nd 60 d B (A) in d a y time ).














e nviro nme nt.












Pa g e 52

Ac c o rd ing to d o c ume nt re vie w, the Pro je c t BSW will re d uc e c a rb o n d io xid e e missio n



a nd nitro g e n o xid e with 18.92 to ns a nd 22.47 to ns p e r ye a r, re sp e c tive ly, whic h




d uring c o nstruc tio n a nd o p e ra tio n p e rio d o f the Pro je c t WSQ X.


Eithe r Sha a nxi SG E, Xi’ a n PMO no r Pro je c t BSW ha s d e ve lo p e d a sp e c ific


The Pro je c t BSW wa s und e r c o nstruc tio n a t the time o f the site visit. As p e r the p ro je c t




• The Pro je c t BSW ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


• The Pro je c t BSW d id no t d o c ume nt/ mo nito r the d isp o sa l o f the re ma ining





g o ve rnme nt.






All p ro je c t fa c ilitie s o f Pro je c t BSW a re lo c a te d within the BSW Re sid e ntia l Pro je c t:

• The he a t p ro d uc tio n we ll a nd re inje c tio n we ll a re lo c a te d a t the g a rd e n a re a s;

• The re inje c tio n sta tio n will b e lo c a te d a t c e ntra l g a rd e n.


Pa g e 53

Ac c o rd ing to the ma na g e me nt inte rvie w, the la nd a nd a re a s a re p ro vid e d fo r fre e

b y the Re a l Esta te De ve lo p e r o f the BSW Re sid e ntia l Pro je c t. The re fo re , the re a re no

la nd a c q uisitio n a nd re se ttle me nt fo r the p ro je c t. The la nd wa s o b ta ine d b y the re a l

e sta te d e ve lo p e rs fro m the g o ve rnme nt ma na g e d la nd ma rke t thro ug h b id ing o r

a uc tio n.


fre e use o f the la nd a nd a re a s in the He a t Sup p ly C o ntra c t b e twe e n the PMO a nd

the re a l e sta te d e ve lo p e r. The Pro je c t wa s no t invo lve d in la nd a c q uisitio n a nd d o e s

no t ho ld a ny title fo r the la nd .




p ro je c t.

Ba se d o n c o nsulta tio n with the Site ma na g e me nt a nd o nsite visit o n 10 O c to b e r 2018,

no p hysic a l d isp la c e me nt is re q uire d fo r the p ro je c t, ne ithe r e c o no mic d isp la c e me nt.

O ve ra ll, the c a te g o riza tio n o f invo lunta ry re se ttle me nt fo r the Pro je c t BSW is

c o nsid e re d a s Ca te g ory C a s the re is no id e ntifie d e c o no mic d isp la c e me nt ne ithe r

p hysic a l d isp la c e me nt b e e n a nd to b e c o nd uc te d fo r the p ro je c t.

b . Indig e nous Pe ople s





sc he me within the jurisd ic tio na l a re a o f Xi’ a n C ity. The re fo re , ADB SR3 is no t trig g e re d

fo r the p ro je c t a nd the c a te g o riza tio n fo r ind ig e no us p e o p le is c o nsid e re d a s

Ca te g ory C .


The C o mp a ny o r the PMO d o e s no t ha ve a n in p la c e p ro c e d ure to mo nito r a nd

re p o rt p ro je c t so c ia l mitig a tio n me a sure s, p e rfo rma nc e s a nd re p o rt p ro g re ss,


Pa g e 54












(g e o the rma l he a ting e nd use rs. It is und e rsto o d e a c h p ro je c t ma na g e me nt o ffic e is

re sp o nsib le fo r lia iso n with lo c a l g o ve rnme nt, a nd c o mmunic a ting with re a l e sta te

d e ve lo p e rs d uring p ro je c t d e sig n a nd c o nstruc tio n, a s we ll a s future o p e ra tio n.






a nd it is fo und tha t the imp a c ts a re limite d .










Pa g e 55










a c c e p ta b le .




ma na g e d b y the Ma rke ting De p a rtme nt o f the PMO . A 24-ho ur ho tline is e sta b lishe d

a nd the re a re d e sig na te d re c e p tio nists fo r re g iste ring , re sp o nd ing to a nd










The Pro je c t a d o p ts a ll c o rp o ra te HR p o lic ie s a nd p ro c e d ure s. La b o r re la te d issue s a re

c e ntra lly ma na g e d b y the HR De p a rtme nt o f the Xi’ a n C o mp a ny. C urre ntly, the

p ro je c t ha s a to ta l o f 6 d ire c t sta ff. All the e mp lo ye e s a re Ha n C hine se . Five a re ma le

while o ne fe ma le sta ff. As re p o rte d b y the HR ma na g e r, the Xia n PMO ha s b e e n trying

to hire p e o p le fro m surro und ing a re a s to ma inta in sta ff sta b ility a nd re d uc e turno ve r

ra te , a ltho ug h ne ithe r ha ve a fo rma l lo c a l la b o r re c ruitme nt p o lic y.

The la b o r c o ntra c ts we re d ire c tly sig ne d b e twe e n the Xi’ a n PMO a nd the ind ivid ua l

e mp lo ye e s, a nd no c o lle c tive b a rg a ining a g re e me nts we re sig ne d . Re p o rte d ly, the


Pa g e 56

wo rke rs a re typ ic a lly wo rking five d a ys with 40 ho urs in o ne shift b e twe e n Mo nd a y

a nd Frid a y. Wa g e s a re p a id o n the la st wo rking d a y o f e a c h mo nth. As c o nfirme d b y

the c o nsulte d p ro je c t ma na g e me nt, the sta ff a re p a id with o ne a d d itio na l mo nth o f

sa la ry to o ffse t the c o mp e nsa tio n fo r e xtra wo rking ho urs d uring the we e ke nd s a nd

the y think it is re a so na b le a s the ir d a ily jo b is q uite fle xib le so the c o nc e ntra tio n a t

wo rk is limite d . Ho we ve r, this is still a no n-c o mp lia nc e a g a inst le g a l re g ula tio n. No

se xua l ha ra ssme nt o r d isc rimina tio n wa s id e ntifie d d uring wo rke r inte rvie w.








o p e ra to rs a va ila b le fo r inte rvie w a t this sta g e .


Altho ug h the re is no sp e c ific p ro c e d ure re g a rd ing g e nd e r a nd d e ve lo p me nt



inte rvie w.

No no nc o mp lia nc e re g a rd ing g e nd e r a nd d e ve lo p me nt is id e ntifie d a g a inst e ithe r


with b o th site ma na g e me nt a nd the ra nd o mly se le c te d wo rke rs, no d isp ro p o rtio na te

imp a c ts we re c a use d b y the p ro je c t o n wo me n.


Pa g e 57

3.7 Conc lusions a nd Ke y Finding s

3.7.1 Sa fe g ua rd Ca te g oriza tion a nd Ra tiona le

This Aud it a d d re sse s the Pro je c ts’ c urre nt E&S ma na g e me nt p ra c tic e s a g a inst ADB

E&S sa fe g ua rd s, a s we ll a s PRC la ws a nd re g ula tio ns. Do c ume nt re vie w ha s b e e n

und e rta ke n sinc e 8 O c to b e r 2018 to the d a te o f issuing this re p o rt.

Ba se d o n the mo st sig nific a nt imp a c ts fro m the ind ivid ua l p ro je c t, o ve ra ll the Pro je c ts

a re c la ssifie d a s:

• Ca te g ory B fo r e nviro nme nt;

• Ca te g ory C fo r invo lunta ry re se ttle me nt a nd ind ig e no us p e o p le .

Environme nta l: The p o te ntia l e nviro nme nta l imp a c ts wo uld b e re ve rsib le a nd

mitig a te d , a nd a re no t unp re c e d e nte d a nd d o no t fa ll into o ne o f the ADB PIAL.

Enviro nme nta l imp a c ts (wa ste wa te r, a ir e missio n, b o und a ry no ise , so lid wa ste s a nd

e c o syste m) we re id e ntifie d a nd a sse sse d a nd p e rtine nt mitig a tio n me a sure s we re

d e ve lo p e d . No ha za rd o us ma te ria ls, inc lud ing ma te ria ls c o nta ining a sb e sto s,

p o lyc hlo rina te d b ip he nyls, to xic sub sta nc e s a nd p e stic id e , we re o b se rve d o r

re p o rte d to ha ve b e e n use d a t the Pro je c ts. As o f re p o rting , no re d fla g o r hig h le ve l

e nviro nme nta l issue s a re id e ntifie d . The PMO s a re re q uire d to imp ro ve HSE

ma na g e me nt a nd sup e rvisio n o n sub c o ntra c to rs. Thus, o ve ra ll c a te g o riza tio n o f the

Pro je c ts fo r Enviro nme nt is re c o g nize d a s Ca te g ory B.

Involunta ry Re se ttle me nt: Imp a c ts fro m la nd a c q uisitio n a nd invo lunta ry re se ttle me nt

b y the C o mp a ny’ s g e o the rma l he a ting p ro je c ts a re a ntic ip a te d no t to b e sub sta ntia l.

It is id e ntifie d the re a re limite d p e rma ne nt la nd a c q uisitio n o r te mp o ra ry la nd

o c c up a tio n le a d ing to lo ss o f imp a c t o f live liho o d o r a sse t fo r the fo ur p ro je c ts

a ud ite d in O c t 2018. La nd fo r sitting g e o the rma l fa c ilitie s wa s typ ic a lly p ro vid e d b y

the re a l e sta te d e ve lo p e r. The re fo re , no a d d itio na l la nd wa s re q uire d fo r tho se

g e o the rma l p ro je c ts. Thus, o ve ra ll c a te g o riza tio n o f the a ud ite d thre e g e o the rma l

he a ting p ro je c ts (JJYP, WSQ X & BSW) a re re c o g nize d a s Ca te g ory C , while fo r Pro je c t

YG SY, it sho uld b e Ca te g ory B a s the re is 48m 2 la nd to b e a c q uire d .

Indig e nous Pe ople : The p o te ntia l imp a c t o n e thnic mino ritie s fro m the C o mp a ny’ s

fo ur p ro je c ts a re c o nsid e re d ne g lig ib le . This is b e c a use the Pro je c ts a re lo c a te d in the

Ha n C hine se d o mina te d a re a s. Thus, the Ind ig e no us Pe o p le s sa fe g ua rd s wa s no t


Pa g e 58

trig g e re d . Eve n in Sha a nxi Pro vinc e , the Pro je c ts ma y p o te ntia lly invo lve sp o ra d ic

e thnic Hui ho use ho ld s, b ut a ll fo ur a ud ite d p ro je c t ha s no imp a c ts to e thnic

c o mmunitie s b a se d o n the o nsite a sse ssme nt, a s we ll a s d o c ume nt re vie w. The re fo re ,

o ve ra ll c a te g o riza tio n o f the Pro je c ts fo r e thnic mino ritie s is re c o g nize d a s Ca te g ory

C .

3.7.2 Ke y Finding s – Proje c t Le ve l

The find ing s a nd issue s id e ntifie d d uring the Aud it o f the fo ur p ro je c ts a re summa rize d

in Ta ble 3- 10 b e lo w.

Ta ble 3- 10 E&S Finding s

Aspe c ts Finding s/ Issue s Le ve l of

Risk

Sha a nxi SGE

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

Ba se d o n inte rvie w with re p re se nta tive s o f Sha a nxi SGE, c urre ntly the re

a re a p p ro xima te ly 200 p ro je c ts ma na g e d b y the 7 PMO und e r Sha a nxi

SGE. Ho we ve r, the re we re o nly two d e d ic a te d p e rso nne l in HSED o f

Sha a nxi SGE, a nd o ne o f the m ha s le ss tha n 6 mo nths o f e xp e rie nc e in

HSE ma na g e me nt. HSED is re sp o nsib le fo r (1) Co o rd ina tio n o f

Enviro nme nta l Imp a c t Asse ssme nt (EIA) p ro c e d ure s fo r a ll p ro je c ts; (2)

Imp le me nt a nd ma inta in the inte rna l q ua lity ma na g e me nt syste m o f

Sha a nxi SGE; (3) Ove ra ll HSE sup e rvisio n a t p ro je c t le ve l.

The HSE re so urc e within Sha a nxi SGE is a sse sse d a s no t suffic ie ntly

re so urc e d to ma na g e id e ntifie d imp a c ts a nd risks.

M

Proje c t JJYP

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t JJYP ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

The Pro je c t JJYP d id no t d o c ume nt/ mo nito r the d isp o sa l o f the re ma ining


sub c o ntra c to r wa s re sp o nsib le fo r the d isp o sa l a nd the fina l d e stina tio n o f

the wa ste (whic h is no t c a te g o rize d a s ha za rd o us wa ste a c c o rd ing to the

EIA d o c ume nts o f the p ro je c t) wa s a munic ip a l la nd fill site a p p o inte d b y

the lo c a l g o ve rnme nt.

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

A p ro c e d ure fo r c o nd uc ting third -p a rty c o nfirma to ry te sting o f ha za rd o us

wa ste c a te g o riza tio n o n the d rilling wa ste a nd se d ime nt fro m the vo rte x

d e -sa nd e r is no t in p la c e .

L

He a lth a nd

Sa fe ty

At the time o f the site visit, o ne we ld e r d id no t we a r ma sk whe n he wa s

c o nd uc ting we ld ing a c tivity. L


Pa g e 59


Risk

La b o r a nd

So c ia l

Pro te c tio n

The wo rke rs a re p a id o ne a d d itio na l mo nth o f sa la ry to o ffse t the

c o mp e nsa tio n fo r e xtra wo rking ho urs d uring the we e ke nd s, whic h is a

no n-c o mp lia nc e a g a inst le g a l re g ula tio n.

M

Grie va nc e

Re d re ss

The re is no syste m/ p ro c e d ure in p la c e to re c o rd a nd tra c k the

c o mp la ints ra ise d b y the lo c a l c o mmunity. Thus, no re c o rd o f p re vio us

g rie va nc e s wa s a va ila b le fo r re vie w, whic h is a no n-c o nfo rma nc e a g a inst

ADB sa fe g ua rd s.

L

Proje c t YGSY

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t YGSY ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

Re p o rte d ly the d rilling sub c o ntra c to r is re sp o nsib le fo r the d isp o sa l o f the

d rilling wa ste wa te r with mud a nd d rilling wa ste . Ho we ve r, Pro je c t YG SY

ha s no me c ha nism to tra c k/ mo nito r the d isp o sa l a nd tra nsp o rta tio n

p ro c e ss.

M

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

Ba se d o n the p ro je c t EIA d o c ume nt, d o me stic wa ste wa te r sho uld me e t

the C la ss II limits o f Ye llo w Rive r Ba sin (Sha a nxi Se c tio n) Inte g ra te

Wa ste wa te r Disc ha rg e Limit (DB 61/ 224-2011). Ho we ve r, b a se d o n o nsite

o b se rva tio n, d o me stic wa ste wa te r wa s d ire c tly d isc ha rg e d into a p it with

no lining .

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt




L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

Do me stic wa ste wa s re p o rte d ly c o lle c te d b y lo c a l munic ip a l sa nita ry

sta tio n o n a re g ula r b a sis. Ho we ve r, d o me stic wa ste wa s o b se rve d in the

p it whic h a lso re c e ive s d o me stic wa ste wa te r.

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

Wa ste c he mic a l (b e nto nite , Na 2CO 3, lub ric a nt, e tc . fo r d rilling fluid

fo rma tio n) p a c ka g ing ma te ria ls we re sto re d a t a n unshe lte re d unp a ve d

a re a with no we a the r-p ro o f a nd sp ill c o ntro l fa c ilitie s.

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

Lub ric a nt in d rums we re p la c e d a t a n unshe lte re d unpa ve d a re a with no


He a lth a nd

Sa fe ty

One we ld e r d id no t we a r ma sk whe n he wa s c o nd uc ting we ld ing

a c tivity.

L

He a lth a nd

Sa fe ty

No e me rg e nc y re sp o nse d rill wa s c o nd uc te d b y the d rilling sub c o ntra c to r

b e fo re c o mme nc e me nt o f the d rilling a c tivity a s re q uire d b y Sha a nxi SGE.

L


Pa g e 60


Risk

Invo lunta ry

Re se ttle me nt

The re a re 48 m2 la nd fo r pro d uc tio n we lls a nd re inje c tio n we lls

p e rma ne ntly a ffe c te d . Ho we ve r, the p ro je c t le a se d the la nd inste a d o f

a c q uire d the la nd .

Ne ithe r La nd Use Pre -a p p ro va l no r the Co nstruc tio n La nd Use Ce rtific a te

ha s no t ye t b e e n o b ta ine d fo r the rura l g e o the rma l he a ting p ro je c t a s the

p ro je c t ha s no t fo llo we d the la nd a c q uisitio n p ro c e ss, whic h is a no n-


M

Sta ke ho ld e r

Eng a g e me nt

The re is no sta ke ho ld e r e ng a g e me nt me c ha nism e sta b lishe d to o p e ra te .

Sp e c ific a lly, the re a re no e vid e nc e to sho w the e ng a g e me nt with

c o mmunity invo lve d in la nd le a se , ne ithe r e ng a g e me nt with lo c a l BOLAR

re g a rd ing using la nd le a se a p p ro a c h inste a d o f la nd a c q uisitio n.

M

La b o r a nd

So c ia l

Pro te c tio n




M

Grie va nc e

Re d re ss





L

Proje c t WSQX

Enviro nme nta l

Pe rmit

The p ro je c t ma na g e me nt re p o rte d tha t the Wa te r Ab stra c tio n Pe rmit wa s

in a p p lic a tio n p ro c e ss a t the time o f the site visit a nd is e xp e c te d to b e

issue d in No ve mb e r.

M

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t WSQX ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

The Pro je c t WSQX d id no t d o c ume nt/ mo nito r the d isp o sa l o f the

re ma ining d rilling wa ste wa te r with mud a nd d rilling wa ste . Re p o rte d ly the

d rilling sub c o ntra c to r wa s re sp o nsib le fo r the d isp o sa l a nd the fina l

d e stina tio n o f the wa ste (whic h is no t c a te g o rize d a s ha za rd o us wa ste

a c c o rd ing to the EIA d o c ume nts o f the p ro je c t) wa s a munic ip a l la nd fill

site a p p o inte d b y the lo c a l g o ve rnme nt.

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt




L

La b o r a nd

So c ia l

Pro te c tio n




M

Grie va nc e

Re d re ss





L


Pa g e 61


Risk

Proje c t BSW

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t BSW ha s no t d e ve lo p e d a p ro je c t-sp e c ific c o mp re he nsive


Po llutio n

Pre ve ntio n

a nd

Ab a te me nt

The Pro je c t BSW d id no t d o c ume nt/ mo nito r the d isp o sa l o f the re ma ining


sub c o ntra c to r wa s re sp o nsib le fo r the d isp o sa l a nd the fina l d e stina tio n o f

the wa ste (whic h is no t c a te g o rize d a s ha za rd o us wa ste a c c o rd ing to the

EIA d o c ume nts o f the p ro je c t) wa s a munic ip a l la nd fill site a p p o inte d b y

the lo c a l g o ve rnme nt.

L

Po llutio n

Pre ve ntio n

a nd

Ab a te me nt




L

La b o r a nd

So c ia l

Pro te c tio n




M

Grie va nc e

Re d re ss





L


Pa g e 62

4.0 Corre c tive Ac tion Pla n

4.1 Re c omme nde d CAP for Audite d Proje c ts

The fo llo wing ta b le s summa rize ke y E&S issue s fo und fo r the Pro je c ts visite d b y Sta nte c .

Ta ble 4- 0 Finding s a nd Re c omme nde d CAP – Sha a nxi SG E



Re sponsible

Pe rsons

Comple ti

on

Timing 7

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

Ba se d o n inte rvie w with re p re se nta tive s o f

Sha a nxi SGE, c urre ntly the re a re

a p p ro xima te ly 200 p ro je c ts ma na g e d b y

the 7 PMO und e r Sha a nxi SGE. Ho we ve r,

the re we re o nly two d e d ic a te d p e rso nne l

in HSED o f Sha a nxi SGE, a nd o ne o f the m

ha s le ss tha n 6 mo nths o f e xp e rie nc e in HSE

ma na g e me nt. HSED is re spo nsib le fo r (1)

Co o rd ina tio n o f Enviro nme nta l Imp a c t

Asse ssme nt (EIA) p ro c e d ure s fo r a ll

p ro je c ts; (2) Imp le me nt a nd ma inta in the

inte rna l q ua lity ma na g e me nt syste m o f

Sha a nxi SGE; (3) Ove ra ll HSE sup e rvisio n a t

p ro je c t le ve l.

The HSE re so urc e within Sha a nxi SGE is

a sse sse d a s no t suffic ie ntly re so urc e d to

ma na g e id e ntifie d imp a c ts a nd risks.

M

Ap p o int a p p ro p ria te c a p a b le

so urc e s to HSED.

Sha a nxi SGE 9 mo nths MLC a nd

RWC:

Mg mt. time

Co st fo r

a d d itio na l

e mp lo yme

nt is no t

inc lud e d

a s no t

c le a r ye t

a t this

sta g e .

N/ A



Pa g e 63



Re sponsible

Pe rsons

Comple ti

on

Timing 7

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Sta ke ho ld e r

e ng a g e me nt

SGE ha s no t c o nd uc te d sta ke ho ld e r

e ng a g e me nt a nd ke e p the re c o rd s.

M

SGE sho uld fo llo w the ESMS to

e sta b lish a me c ha nism to

id e ntify a nd e ng a g e

sta ke ho ld e rs, a nd ke e p the

re c o rd s.

Xia nya ng

PMO


a nd mino r

c o st

A sta ke ho ld e r

e ng a g e me nt

p la n in p la c e

La nd

Ac q uisitio n a nd

Invo lunta ry

Re se ttle me nt

It is a c o mmo n p ra c tic e tha t the p ro je c t

use s la nd fo r fre e p ro vid e d b y re a l e sta te

d e ve lo p e rs, ho we ve r, the re a re no

d o c ume nt sho wing this.

M

SGE sho uld p ut ‘ la nd p ro vid e d

b y re a l e sta te d e ve lo p e rs fo r

fre e ’ into the c o ntra c t with the

re a l e sta te d e ve lo p e rs.

Xia nya ng

PMO


a nd mino r

c o st

Co ntra c t with

re a l e sta te

d e ve lo p e rs

Grie va nc e

Re d re ss







L








Xia nya ng

PMO


p ro c e d ure in

p la c e

La b o r a nd

So c ia l

Pro te c tio n





re g ula tio n.

M




Xia nya ng

PMO


a nd mino r

c o st



Pa g e 64

Ta ble 4- 1 Finding s a nd Re c omme nde d CAP – Pro je c t JJYP



Re sponsible

Pe rsons

Comple ti

on

Timing 8

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t JJYP ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t JJYP d id no t d o c ume nt/ mo nito r










L







HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r



Pa g e 65



Re sponsible

Pe rsons

Comple ti

on

Timing 8

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste


He a lth a nd

Sa fe ty

At the time o f the site visit, o ne we ld e r d id

no t we a r ma sk whe n he wa s c o nd uc ting

we ld ing a c tivity. L




HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s


Pa g e 66

Ta ble 4- 2 Finding s a nd Re c omme nde d CAP – Pro je c t YG SY



Re sponsible

Pe rsons

Comple ti

on

Timing 9

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t YGSY ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Re p o rte d ly the d rilling sub c o ntra c to r is

re sp o nsib le fo r the d isp o sa l o f the d rilling


Ho we ve r, Pro je c t YG SY ha s no me c ha nism

to tra c k/ mo nito r the d isp o sa l a nd

tra nsp o rta tio n p ro c e ss. M






the wa ste d isp o sa l p ro c e ss,

e sp e c ia lly fo r the mud a nd

d rilling wa ste d isp o sa l fo r the

Pro je c t YGSY.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r

;

c o rre sp o nding

re c o rd fo r the

d isp o sa l o f the

mud a nd

d rilling wa ste

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Ba se d o n the p ro je c t EIA d o c ume nt,

d o me stic wa ste wa te r sho uld me e t the

C la ss II limits o f Ye llo w Rive r Ba sin (Sha a nxi

Se c tio n) Inte g ra te Wa ste wa te r Disc ha rg e

Limit (DB 61/ 224-2011). Ho we ve r, b a se d o n

o nsite o b se rva tio n, d o me stic wa ste wa te r

wa s d ire c tly d isc ha rg e d into a p it with no

lining .

L



d o me stic wa ste wa te r p ro p e rly.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s



Pa g e 67



Re sponsible

Pe rsons

Comple ti

on

Timing 9

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste


Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Do me stic wa ste wa s re p o rte d ly c o lle c te d

b y lo c a l munic ip a l sa nita ry sta tio n o n a

re g ula r b a sis. Ho we ve r, d o me stic wa ste

wa s o b se rve d in the p it whic h a lso re c e ive s

d o me stic wa ste wa te r.

L



d o me stic wa ste p ro p e rly.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Wa ste c he mic a l (b e nto nite , Na 2CO3,

lub ric a nt, e tc . fo r d rilling fluid fo rma tio n)

p a c ka g ing ma te ria ls we re sto re d a t a n



L


p ro vid e we a the r-p ro o f a nd sp ill

c o ntro l fa c ilitie s (ind o o r a re a ) fo r

the wa ste c he mic a l p a c ka g ing

ma te ria ls.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s


Pa g e 68



Re sponsible

Pe rsons

Comple ti

on

Timing 9

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

Lub ric a nt in d rums we re p la c e d a t a n




p ro vid e se c o nd a ry c o nta inme nt

to the lub ric a nt sto ra g e a re a .

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

He a lth a nd

Sa fe ty

One we ld e r d id no t we a r ma sk whe n he

wa s c o nd uc ting we ld ing a c tivity.

L




HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMO

1 mo nth MLC a nd

RWC:

Mg mt. time

Insp e c tio n

re c o rd s a nd

c o rre sp o nding

fo llo w-


re c o rd s

He a lth a nd

Sa fe ty

No e me rg e nc y re sp o nse d rill wa s

c o nd uc te d b y the d rilling sub c o ntra c to r

b e fo re c o mme nc e me nt o f the d rilling

a c tivity a s re q uire d b y Sha a nxi SGE.

L


c o nd uc t e me rg e nc y re sp o nse

d rill a t a time ly ma nne r.

HSED,

Sha a nxi SGE

a nd

Xia nya ng

PMP

1 mo nth MLC a nd

RWC:

Mg mt. time

Drill re c o rd

Invo lunta ry

Re se ttle me nt

The re a re 48 m2 la nd fo r pro d uc tio n we lls

a nd re inje c tio n we lls p e rma ne ntly

a ffe c te d . Ho we ve r, the p ro je c t le a se d the

la nd inste a d o f a c q uire d the la nd .

Ne ithe r La nd Use Pre -a p p ro va l no r the

Co nstruc tio n La nd Use Ce rtific a te ha s no t

ye t b e e n o b ta ine d fo r the rura l g e o the rma l

he a ting p ro je c t, whic h is a no n-


M

The p ro je c t ne e d s to fo llo w with

the lo c a l Bure a u o f La nd a nd

Re so urc e s (BOLAR) to o b ta in

La nd Use Pre -a p p ro va l a nd

Co nstruc tio n La nd Use

Ce rtific a te fo r the la nd

p e rma ne ntly a c q uire d .

Xia nya ng

PMO


a nd mino r

c o st

Re la te d

p e rmit o f la nd

a c q uisitio n o r

c o nfirma tio n

le tte r fro m

lo c a l BOLAR

o n no ne e d

fo r suc h

p e rmit.


Pa g e 69



Re sponsible

Pe rsons

Comple ti

on

Timing 9

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Sta ke ho ld e r

Eng a g e me nt

The re is no sta ke ho ld e r e ng a g e me nt

me c ha nism e sta b lishe d to o p e ra te .

Sp e c ific a lly, the re a re no e vid e nc e to sho w

the e ng a g e me nt with c o mmunity invo lve d

in la nd le a se , ne ithe r e ng a g e me nt with

lo c a l BOLAR re g a rd ing using la nd le a se

a p p ro a c h inste a d o f la nd a c q uisitio n.

M

The p ro je c t ne e d s to c o nd uc t

e ng a g e me nt with lo c a l

c o mmunitie s re g a rd ing la nd

le a se , a nd e ng a g e with lo c a l

BOLAR re g a rd ing la nd

a c q uisitio n.

Xia nya ng

PMO


a nd mino r

c o st

Re c o rd s a nd

d o c ume nta tio

n o f

e ng a g e me nt

p ro c e ss,

me e ting

minute s e tc .

Ta ble 4- 3 Finding s a nd Re c omme nde d CAP – Pro je c t WSQ X



Re sponsible

Pe rsons

Comple ti

on

Timing 10

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pe rmit

The p ro je c t ma na g e me nt re p o rte d tha t

the Wa te r Ab stra c tio n Pe rmit wa s in

a p p lic a tio n p ro c e ss a t the time o f the site

visit a nd is e xp e c te d to b e issue d in

No ve mb e r.

M

Lia ise c lo se ly with the Xi’ a n

Wa te r Re so urc e Bure a u a nd

e nsure the Wa te r Ab stra c tio n

Pe rmit is o b ta ine d b e fo re the

o p e ra tio n o f the p ro je c t.

Linto ng PMO 3 mo nths MLC a nd

RWC:

Mg mt. time

Wa te r

Ab stra c tio n

Pe rmit

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t WSQX ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n



Pa g e 70



Re sponsible

Pe rsons

Comple ti

on

Timing 10

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t WSQX d id no t

d o c ume nt/ mo nito r the d ispo sa l o f the

re ma ining d rilling wa ste wa te r with mud

a nd d rilling wa ste . Re p o rte d ly the d rilling

sub c o ntra c to r wa s re sp o nsib le fo r the

d isp o sa l a nd the fina l d e stina tio n o f the

wa ste (whic h is no t c a te g o rize d a s

ha za rd o us wa ste a c c o rd ing to the EIA

d o c ume nts o f the p ro je c t) wa s a munic ip a l

la nd fill site a p p o inte d b y the lo c a l

g o ve rnme nt.

L







HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd Linto ng

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste



Pa g e 71

Ta ble 4- 4 Finding s a nd Re c omme nde d CAP – Pro je c t BSW



Re sponsible

Pe rsons

Comple ti

on

Timing 11

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Enviro nme nta l

Pla nning a nd

Ma na g e me nt

The Pro je c t BSW ha s no t d e ve lo p e d a






HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Enviro nme nta l

ma na g e me nt

p la n

Po llutio n

Pre ve ntio n a nd

Ab a te me nt

The Pro je c t BSW d id no t d o c ume nt/ mo nito r










L







HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC a nd

RWC:

Mg mt. time

Pro c e d ure fo r

wa ste d isp o sa l

b y

sub c o ntra c to r



Pa g e 72



Re sponsible

Pe rsons

Comple ti

on

Timing 11

Estima te d

Budg e t/ re s

ourc e s

Comple tion

Indic a tor

Po llutio n

Pre ve ntio n a nd

Ab a te me nt





in p la c e .

L







sa nd e r.

HSED,

Sha a nxi SGE

a nd Xi’ a n

PMO

3 mo nths MLC: USD

5-20 k fo r a

te sting

RWC:

a d d itio na l

ha za rd o us

wa ste

tre a tme nt

c o st

c a nno t b e

e stima te d

a t this

sta g e d ue

to la c k o f

d a ta

Pro c e d ure fo r

wa ste



Page 73

Anne xe s

The Anne xure inc lud e :

1) Anne x A : List o f Do c ume nts Re vie we d ;

2) Anne x B: List o f Inte rvie we e s;

3) Anne x B: Pho to Lo g fo r Pro je c ts Visite d .


Pa g e 74

Anne x A：List of Doc ume nts Re vie we d

Doc um e nt

No

Doc um e nt Title

1. Fe a sib ility Stud y re p o rt a nd the c o rre sp o nd ing p ro je c t se tup a p p ro va l fo r Pro je c t JJYP,

issue d b y the Xia nya ng C ity De ve lo p me nt a nd Re fo rm C o mmitte e in 2017

2. Enviro nme nta l Imp a c t Asse ssme nt (EIA) fo rm fo r Pro je c t JJYP, a nd the c o rre sp o nd ing EIA

a p p ro va l issue d b y the Xia nya ng Enviro nme nta l Pro te c tio n Bure a u (EPB) d a te d 2018

3. Mining Pe rmit fo r the Pro je c t JJYP issue d b y the Xia nya ng C ity La nd Re so urc e s Bure a u o n

29 Ma rc h 2018 a nd is va lid until 29 Ma rc h 2023.

4. He a t Sup p ly Ag re e me nt sig ne d b y the Xia nya ng PMO a nd the JJYP Re sid e ntia l Pro je c t in

No ve mb e r 2017

5. Fe a sib ility Stud y re p o rt a nd the c o rre sp o nd ing p ro je c t se tup a p p ro va l fo r Pro je c t YG SY,

issue d b y the Xia nya ng C ity De ve lo p me nt a nd Re fo rm C o mmitte e in 2017

6. EIA fo rm fo r Pro je c t YG SY, a nd the c o rre sp o nd ing EIA a p p ro va l issue d b y the Xia nya ng C ity

EPB d a te d 2018

7. Mining Rig ht Tra nsfe r a g re e me nt fo r Pro je c t YG SY, sig ne d b e twe e n Xia nya ng C ity La nd

Re so urc e s Bure a u a nd Sha a nxi SG E o n 25 Fe b rua ry 2016 a nd is va lid fo r 30 ye a rs

8. La nd Le a se C o ntra c t sig ne d b y Sha a nxi SG E a nd Sujia p u Villa g e , va lid until 2038

9. He a t Sup p ly Ag re e me nt sig ne d b y the Xia nya ng PMO a nd the YG SY Re sid e ntia l Pro je c t in

No ve mb e r 2017

10. Fe a sib ility Stud y re p o rt a nd the c o rre sp o nd ing p ro je c t se tup a p p ro va l fo r Pro je c t WSQ X,

issue d b y the Linto ng Distric t De ve lo p me nt a nd Re fo rm C o mmitte e in 2018

11. EIA fo rm fo r Pro je c t WSQ X, a nd the c o rre sp o nd ing EIA a p p ro va l issue d b y the Linto ng

Bra nc h, Xi’ a n C ity EPB d a te d 2018

12. Fe a sib ility Stud y re p o rt a nd the c o rre sp o nd ing p ro je c t se tup a p p ro va l fo r Pro je c t BSW,

issue d b y the Inte rna tio na l Ha rb o r Distric t De ve lo p me nt a nd Re fo rm C o mmitte e in 2018

13. EIA fo rm fo r Pro je c t BSW, a nd the c o rre sp o nd ing EIA a p p ro va l issue d b y the Inte rna tio na l

Ha rb o r Distric t Bra nc h, Xi’ a n C ity EPB d a te d 2018

14. Wa te r Ab stra c tio n Pe rmit fo r Pro je c t BSW issue d b y Xi’ a n C ity Wa te r Re so urc e Bure a u o n

12 Fe b rua ry 2018 a nd is va lid fo r thre e ye a rs

15. Xia nya ng C ity G e o the rma l Re so urc e De ve lo p me nt Pla n (2011 – 2020) p re p a re d b y

Xia nya ng C ity G e o the rma l Re so urc e De ve lo p me nt a nd Ad ministra tio n O ffic e in 2013

16. SG E HSE Ma na g e me nt Pro g ra ms a nd Pro c e d ure s

17. Ra nd o mly se le c te d mo nthly HSE insp e c tio n re c o rd s in 2018

18. Ra nd o mly se le c te d we e kly HSE insp e c tio n re c o rd s in 2018

19. Sa mp le HSE Tra ining C e rtific a te

20. Thre e la b o r c o ntra c ts o f o nsite HSE sta ff in 2018 (As p e r the HR, SG E p o lic y re stric ts e xte rna l

re vie w o f p riva c y re la te d d o c ume nts, the re fo re , no c o p ie s o r d e ta ile d info rma tio n ha ve

b e e n re c o rd e d / ke p t b y Sta nte c a s p e r SG E’ s re q ue st, ho we ve r, the c o nte nt o f d o c ume nts

ha ve b e e n fully re vie we d b y Sta nte c d uring o nsite a ud it)


Pa g e 75

Anne x B: List of Inte rvie we e s

No. Na m e De pa rtm e nt Title

1. Mr. Na n HU Fina nc ia l De p a rtme nt, Sha a nxi SGE Ma na g e r

2. Mr. De ji GUO Fina nc ia l De p a rtme nt, Sha a nxi SGE De p uty Ma na g e r

3. Ms. Jing JING Fina nc ia l De p a rtme nt, Sha a nxi SGE Ac c o unta nt

4. Mr. Jia c ha o WANG Fina nc ia l De p a rtme nt, Sha a nxi SGE Offic e r

5. Ms. Jia ng ma n HU HSED, Sha a nxi SGE Ma na g e r

6. Ms. Le ZHANG Op e ra tio n De p a rtme nt, Sha a nxi SGE Offic e r

7. Mr. Yukua ng ZHAO QHSE De p a rtme nt, SG E Sa fe ty Offic e r

8. Ms. We n WEN Xia nya ng PMO Ma na g e r

9. Mr. Zhijia n LU Linto ng PMO Ma na g e r

10. Mr. Pe ng WANG Xi’ a n PMP Ma na g e r

11. Mr. WU Sujia p u Villa g e (Pro je c t YGSY) Villa g e He a d

12. Mr. SU Sujia p u Villa g e (Pro je c t YGSY) Gro up Le a d e r o f Villa g e

Gro up 2


Pa g e 76

Anne x C: Photo Log for Proje c ts Visite d

Photo Log

Pho to 1 O ve rvie w o f the JJYP Re sid e ntia l Pro je c t Pho to 2 The p ro d uc tio n we ll o f the Pro je c t JJYP wa s

c o mp le te d

Pho to 3 The re inje c tio n we ll o f the Pro je c t JJYP wa s

c o mp le te d

Pho to 4 Mud a nd d rilling wa ste wa s re p o rte d ly

ha nd le d b y the d rilling sub c o ntra c to r

Pho to 5 O ve rvie w o f the YG SY Re sid e ntia l Pro je c t Pho to 6 The we lls a re lo c a te d in a va c a nt la nd

o wne d b y the lo c a l villa g e . The first p ro d uc tio n we ll

wa s und e r d e ve lo p me nt a t the time o f the a ud it


Pa g e 77

Photo Log

Pho to 7 Drilling wa ste wa te r a nd d rilling wa ste is

sto re d in a mud p it with imp e rme a b le c o ve r

p ro visio n

Pho to 8 Wa ste c he mic a l p a c ka g ing ma te ria ls we re

sto re d a t a n unshe lte re d unp a ve d a re a with no

we a the r-p ro o f a nd sp ill c o ntro l fa c ilitie s

Pho to 9 Do me stic wa ste wa s o b se rve d b e ing

d ump e d in the p it whic h a lso re c e ive s d o me stic

wa ste wa te r

Pho to 10 A we ld ing d id no t we a r ma sk whe n he wa s

c o nd uc ting we ld ing a c tivity

Pho to 11 O ve rvie w o f the WSQ X Re sid e ntia l Pro je c t Pho to 12 The p ro d uc tio n we ll a nd re inje c tio n we ll p f

the Pro je c t WSQ X we re d e ve lo p e d


Pa g e 78

Photo Log

Pho to 13 The he a t tra nsfe r a nd re inje c tio n sta tio n

wa s und e r c o nstruc tio n

Pho to 14 The p ip e line s we re und e r insta lla tio n

Pho to 15 O ve rvie w o f the BSW Re sid e ntia l Pro je c t Pho to 16 The c o nstruc tio n site wa s c o ve re d b y

sc re e n c lo th to p re ve nt d ust


Pa g e 79

Photo Log

Pho to 17 The p ro d uc tio n we ll o f the Pro je c t BSY wa s

c o mp le te d

Pho to 18 The re inje c tio n we ll o f the Pro je c t BSY wa s

c o mp le te d

Pho to 19 Mud a nd d rilling wa ste wa s re p o rte d ly

ha nd le d b y the d rilling sub c o ntra c to r

Pho to 20 The he a t tra nsfe r a nd re inje c tio n sta tio n

wa s und e r c o nstruc tio n

Environmental and Social Compliance Audit Report

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