Environmental Assessment Report Summary Environmental Impact Assessment Project Number: 40051 June 2007

People’s Republic of China: Gansu Baiyin Urban Development Project

Prepared by the Gansu Baiyin municipal government for the Asian Development Bank (ADB)

The summary environmental impact assessment 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.

CURRENCY EQUIVALENTS (as of 1 June 2007)

Currency Unit – yuan (CNY)

CNY1.00 = $0.1307 $1.00 = CNY7.653

ABBREVIATIONS

ADB – Asian Development Bank AP – affected person BEMC – Baiyin Environment Monitoring Center BEPB – Baiyin Environmental Protection Bureau BHTIP – Baiyin Hi-tech Industrial Park BMG – Baiyin municipal government BNMC – Baiyin Nonferrous Metal Corporation COD – chemical oxygen demand DH – district heating EA – executing agency EIA – environmental impact assessment EMAP – environmental management action plan EMP – environmental management plan EMS – environmental management system EPB – environmental protection bureau GDP – gross domestic product GEPB – Gansu Environmental Protection Bureau IA – implementing agency LIEMC – loan implementation environment management consultants MDHC – Minyue District Heating Corporation NH3-N – ammonia nitrogen NOx – nitrogen oxide PMO – project management office PPTA – project preparatory technical assistance PRC – People’s Republic of China REIA – regional environmental impact assessment SBI – southern Baiyin infrastructure (project component) SBIZ – southern Baiyin industrial zone SEIA – summary environmental impact assessment SEPA – State Environmental Protection Administration SOEPB – Satellite Office of Baiyin Environmental Protection Bureau TEMG – tenant’s environmental management group TSP – total suspended particulates URI – urban road improvement WWTP – wastewater treatment plant

WEIGHTS AND MEASURES

ha – hectare km – kilometer

km2 – square kilometer m – meter m2 – square meter m3 – cubic meter m3/a – cubic meters per annum mg/l – milligrams per liter mg/m3 – milligram per cubic meter mm – millimeter t/a – tons per annum

CONTENTS

Page Maps

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 2 A. Southern Baiyin Infrastructure 3 B. District Heating (DH) Services 3 C. Baiyin Road Improvements (URI) 3 D. Pingchuan Road Improvements 3 E. Capacity Development and Institutional Strengthening 3

III. DESCRIPTION OF THE ENVIRONMENT 4 A. Topography and Geology 4 B. Climate and Air Quality 4 C. Hydrology 5 D. Ecological Resources 5 E. Water Quality 5 F. Status of Pollution 6 G. The Existing BHTIP 7 H. Socioeconomic Conditions 7

IV. ALTERNATIVES 9 A. Alternatives for District Heating Component 9 B. Alternatives for SBI Improvement Component 10

V. ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 11 A. Positive Impact and Environmental Benefits 11 B. Balances of Water Supply and Wastewater Treatment 12 C. Environmental Impact and Mitigation Measures during Construction 13 D. Impact and Mitigation Measures during Operation 18

VI. ECONOMIC ASSESSMENT 22

VII. ENVIRONMENTAL MANAGEMENT PLAN 24 A. Institutional Requirements 24 B. Environmental Management 25 C. Environmental Management System 25 D. Environmental Monitoring 26

VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 27 A. Public Consultation 27 B. Information Disclosure 29

IX. CONCLUSIONS 29

Appendixes 1. References 31 2. Environmental Management Plan 33

Xiahe

HezhengKangle

Guanghe

Lintan

ZhuoniMin

Zhang

Longxi

Weiyuan

Lintao

Wushan

Luqu

Hezuo

Tianshui

Li

Kihe

Cheng

Wudou

Kang

Dangchang

Chuangu

Gangu

Wen

Maqu

Huating

Zhuanglang

QinanQingshui

Beidao

Liangdang

Lingtai

Zhenyuan

Pingliang Luohandong

JingchuChongxin

GaozhaiHuiningPingfeng

Dingxi

LANZHOU

Yuzhong Chankou

Guochengyi

Baiyin Jingyuan

Gaolan

Honggu

XiguYongjing

Linxia

Linxia

Anning

Gulang

Yongdeng

Wuwei

Tianzhu ZangzaZizhixian

Pingchuan

Tongwei

Houjiachuan

Zizhixian

Dongxiang

Qilihe

Huan Huachi

Qingyang

HeshuiQing

Zhengning

NingJingning

Zhangjiachuan

Hui

Diebu

Yumen

Zhangye

Wuwei

LANZHOULinxia

Baiyin

Tianshui

Pingliang

to Urumqi

S H A A N X I

Q I N G H A I

S I C H U A N

G A N S U

N I N G X I A

I N N E R M O N G O L I A

I NN ER M O N GO L I A

Q I N GH AI

XINJIANGUYGUR

AUTONOMOUSREGION

N IN GX IA

S HA AN XI

S IC HU AN

MONGOLIA

Project Area

Provincial Capital

City/Town

County Seat

National Highway

Other Road

Railway

River

Prefecture Boundary

Provincial Boundary

International Boundary

Boundaries are not necessarily authoritative.

GANSU BAIYINURBAN DEVELOPMENT PROJECT

IN THEPEOPLE'S REPUBLIC OF CHINA

0 25 50 75 100

Kilometers

N

07

-19

71

a H

R

Ma

p 1106 00'Eo

106 00'Eo

102 00'Eo

102 00'Eo

34 00'No 34 00'N

o

38 00'No

38 00'No

40 00'No

96 00'Eo

96 00'Eo

106 00'Eo

106 00'Eo

34 00'No

34 00'No

40 00'No

DISTRICT HEATING(Boiler House)

INDUSTRIAL ZONE

(ADB) SOUTHERN BAIYININFRASTRUCTURE COMPONENTS

Components Baiyin District

Expressway

National Highway

Other Road

River

GANSU BAIYIN URBAN DEVELOPMENT PROJECTLOCATIONS OF THE COMPONENTS BAIYIN DISTRICT

IN THEPEOPLE'S REPUBLIC OF CHINA

0 500 1000 1500 2000

Meters

N

07

-19

71

b H

R

Ma

p 2

Yello

w Rive

r

Tulongchuan

Gaolan

Zhujiayao

Hongshaxian

Baiyin

Liuchuan

The Industrial Zone

Silongkou

Dijiatai

Gaoya

Wijiachuan

Dongchanggoukou

G A N S U

Gong He RoadNo. 1 Bridge

Gong He RoadNo. 2 Bridge

Gong He RoadRR Bridge

PINGCHUAN BEI RD.

GONG HE RD.

GONG HE RD.

CHANG ZHENG DONG RD.

KA

I FA

R

D.

No.

1

RD

.

CI YAO RD.

Industrial Zone

City/Town

National Road

Railway

River

Gong He Road Bridge

National Highway

National Road

Other Road

River

GANSU BAIYIN URBAN DEVELOPMENT PROJECTPINGCHUAN ROAD IMPROVEMENT

IN THEPEOPLE' REPUBLIC OF CHINA

GANSU BAIYIN URBAN DEVELOPMENT PROJECTLOCATION OF INDUSTRIAL ZONE AND YELLOW RIVER

IN THEPEOPLE' REPUBLIC OF CHINA

N

N

07-1971c HR

Map 3

I. INTRODUCTION

1. This summary environmental impact assessment (SEIA) was prepared for the Gansu Baiyin Urban Development Project (the Project) in the People’s Republic of China (PRC). The Project has four physical components and one capacity development and institutional strengthening component in the city of Baiyin, a medium-sized city in the province of Gansu (Map 1), which is one of 12 less-developed western provinces and autonomous regions in the PRC. Capacity building is also included in the Project. 2. Baiyin city has a total land area of 21,200 square kilometers (km2) and a population of 1.7457 million (2005), 475,000 of these living in the urban areas. The city comprises two urban districts, Baiyin and Pingchuan, and the three counties of Huining, Jingtai, and Jingyuan. The Project covers the two urban districts. Baiyin district has a population of 279,000 and a land area of 1,373 km2 and is the seat of the Baiyin municipal government (BMG). Pingchuan district has a population of 196,300 and an area of 2,106 km2. The two districts are 87 kilometers (km) apart and are connected by a new expressway. 3. Baiyin municipality was established in the 1950s under the planning economy primarily to support the production and development of the Baiyin Nonferrous Metal Corporation (BNMC). BNMC was the PRC’s top copper mining company for 18 years, accounting for about one third of its copper production. The city is also an important energy center in Gansu province in coal mining and power generation. It has both coal-based thermal power plants and Yellow River–based hydropower stations. 4. The most acute challenge facing the city is the need to diversify its economic base in view of its diminishing mining resources after decades of exploitation. Two main copper mines of BNMC have already been exhausted and abandoned, and the mining of other associated minerals is also dwindling and a closure in less than two decades is projected. Baiyin city is one of 18 major “resource-exhausted” mining cities in the PRC that receive special support as a national priority under the approved 11th Five-Year Development Plan 1 to facilitate their economic diversification and transformation. The Project will be the first urban development project in Gansu province to be financed by a multilateral development bank. 5. Baiyin municipal government (BMG) has set the goal of continued and inclusive growth through economic diversification and transformation to support long-term and sustainable economic and social development. It plans to establish a southern Baiyin industrial zone (SBIZ) encompassing both the proposed 6 km2 area of the Asian Development Bank (ADB)–financed southern Baiyin infrastructure (SBI) component and the existing Baiyin High-Tech Industrial Park (BHTIP) by transforming an uncultivated, undeveloped wild mountainous region with basic infrastructure including roads, water supply, drainage, heating, landscaping, and power supply facilities. BMG is determined to provide an attractive environment to encourage investors—public and private, local and international—to achieve economic transformation mainly by extending and diversifying the production chains for nonferrous metal processing, chemical production, and agro-processing. 6. Continued growth and expansion in Baiyin has stretched the capabilities of the urban infrastructure, especially the urban transport network, to the limit. Insufficiency of roads and 1 The Five-Year Plan for National Economic and Social Development arranges national key projects, manages the

distribution of productive forces and individual sector contributions to the national economy, maps the direction of future development, and sets targets. The 11th Five-Year Plan, for 2006–2010, was approved by the People’s Congress on 14 March 2006.

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bridges often causes traffic congestion during rush hours. Some roads are poorly paved and lack traffic management facilities. These drawbacks create severe social and environmental problems that affect not only the quality of life of local residents but also the prospects for future economic development in the area. 7. BMG also places a high priority on improving the coverage and efficiency of district heating services in Baiyin district. Many urban residents still rely on low-efficiency, highly polluting family stoves and small coal-fired boilers for their heating needs. 8. The Project involves three investment activities: (i) road and bridge construction, including drainage, lighting, landscaping, and traffic management facilities; (ii) district heating, including the installation of new boilers and pipelines; and (iii) land leveling and infrastructures for the SBIZ. The Project will also address these major issues: (i) the serious problem of air pollution from the countless small coal-fired boilers and family stoves, (ii) insufficiency of roads and bridges as well as traffic management facilities and the associated obstacles to residents’ daily travel and economic development, (iii) soil erosion caused by construction activities in an ecologically vulnerable area, and (iii) the urgent need for economic diversification and transformation in a resource-exhausted mining city. 9. This SEIA is based on four documents, three project environmental impact assessment (EIA) reports and a regional EIA (REIA) 2 report prepared by the Northwest Mining and Metallurgy Research Institute and the Environmental Assessment Research Center of Lanzhou University. Three levels of environmental impact—direct, associated, and induced—were assessed in the EIAs. Due diligence was performed during project preparation. As required by PRC regulations, the REIA for SBIZ was prepared by the Environmental Assessment Research Center of Lanzhou University to address induced impacts of SBIZ. The EIAs and the REIA contain information about the environment, ecology, industries, and socioeconomic conditions in the city; the environmental impact of the Project during its construction and operation; and the corresponding mitigation measures. The REIA and the EIAs also incorporated majority of the environmental management plan (EMP) clauses. The remaining EMP items were developed by the project preparatory technical assistance (PPTA) consultants in conjunction with aforementioned EIA institutes. The EMP is an essential legal document to ensure implementation of mitigation measures for protecting the environment of the project area. The EMP builds on the project documents and also contains an environmental management system (EMS), which may have a demonstration effect for environment management beyond the scope of the project. The EIAs, the REIA, and the feasibility study reports went through several iterations based on the inputs and suggestions of the PPTA consultants. 10. This SEIA concluded that after implementation of the mitigation measures specified in the EMP, the adverse impacts on the physical and natural environment during both the construction and operational stages of the Project will be largely insignificant.

II. DESCRIPTION OF THE PROJECT

11. This Project has five components, including capacity development and institutional strengthening, each of which is described below and its location is shown on Maps 2 and 3.

2 The REIA, also known as a strategic EIA, evaluates the reasonableness and feasibility of development in a specific

area. It is a key step toward sustainable development and can remedy some deficiencies of project EIAs.

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A. Southern Baiyin Infrastructure

12. This is part of SBIZ with the area of 6 km2 (the other part of SBIZ is the existing BHTIP with the area of 8 km2). The proposed area is uncultivated, undeveloped wild land and mountains. The component consists of (i) constructing 10 roads with a total length of 24.87 km; (ii) laying 32.93 km of stormwater pipelines and 29.463 km of wastewater pipelines (the wastewaters will discharge to the Baiyin municipal Wastewater Treatment Plant [WWTP]) after pre-treated to reach the discharge standards); (iii) laying 48.372 km water supply pipelines; (iv) laying 34.1 km district heating pipelines; (v) building one 110 kilo volt (kV) transformer substation, 5 switching stations and 50 network cabinets, as well as laying 53.2 km of 100 kV power transmission cables, 35 km of 10 kV and 7 km of 35 kV power supply lines; and (vi) leveling of 6 km2 of land with a total earthwork of approximately 4.5 million cubic meters (m3). Map 3 indicates the project component location. B. District Heating (DH) Services

13. Four 58-megawatt hot-water boilers and 29 heat exchange stations will be built and installed, and 12.55 km of heating pipelines (150–800 millimeters [mm] in diameter) will be laid. The total area served will be 3.20 million square meters (m2). C. Baiyin Road Improvements (URI)

14. Twelve urban roads with a total length of 29.223 km will be built or upgraded. This component will also include the installation of drainage (both storm-water and domestic wastewater pipelines), lighting, landscaping, traffic signs, markings, and signals, as well as the construction of 10 canal-crossing bridges, four road-railway underpasses, and six culverts. D. Pingchuan Road Improvements

15. The component includes (i) the construction or upgrading of eight urban roads with a total length of 16.144 km including drainage (storm-water and domestic wastewater pipelines), lighting, landscaping, traffic signs, markings, and signals; (ii) the laying of 16.03 km of storm-water drainage pipelines, 15.6 km of sewer pipelines, and 16.14 km of water supply pipelines; and (iii) the construction of two crossing-canal bridges, a road-railway underpass, and 11 culverts. E. Capacity Development and Institutional Strengthening

16. The Project will also provide consulting services and financial support to BMG in the following areas: (i) designing and introducing an environmental management system for the SBIZ, (ii) developing a system for urban planning and road and bridge management based on the geographical information system (GIS) to facilitate integrated urban transport planning and management, (iii) implementing the Project, and (iv) carrying out the institutional strengthening of the project management office (PMO) for project implementation management.

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III. DESCRIPTION OF THE ENVIRONMENT

A. Topography and Geology

17. Baiyin municipality lies on a loess plateau near the upper reaches of the Yellow River. This area of Gansu province in northern PRC is one of the most massive accumulations of loess in the world. The loess sequence is typically an alternation of silty or sandy loess with more clay-rich paleosols. The urban area of Baiyin is on a basin plain with an area of 10 km2, amid barren mountains and hills. The basin, at an elevation of 1,670–1,750 meters (m) above sea level, is relatively flat and susceptible to the cut-and-fill cycles of the fluvial system. The hypsography of Baiyin slopes 1.2–1.5% from the northwest to southeast. Soil erosion in the proposed area, caused by wind and water, is extreme and affects 95% of the land. The annual erosion in the area is 3,160 tons per km2. B. Climate and Air Quality

18. Baiyin city is in the typical inland continental climate zone controlled by Mongolian high-pressure systems. Its region is arid, with an average of only 239 mm of annual precipitation, 66.0% of this falling during the summer season from July to September. The sun’s radiation in this area is very strong: the average annual evaporation rate of 2,004 mm results in a net loss of 1,765 mm. The winters are long and very cold. January is the coldest month, with an average temperature of -8°C, and July, when the average temperature is 22°C, is the hottest. The annual average temperature is 8.2°C. The prevailing winds are from the northwest. The no-wind frequency is 37%, and the annual average wind speed is 1.9 meters per second (m/s). 19. Recent monitoring data on ambient air quality indicate that air quality in the project area does not meet the Class II standard (air quality is classified into five classes in the PRC, with Class V being the worst). Sulfur dioxide at its highest concentration exceeded the Class II standard by 52%, total suspended particulates (TSP) by 221%, and particulate matter smaller than 10 micrometers (PM10) by 154%, according to the data collected by the Baiyin Environment Monitoring Center (BEMC) on 20–24 November 2006. 20. Baiyin city is attempting to strictly enforce an inspection and maintenance program for all vehicles in the city, including annual emission checks and roadside testing. Emission control devices must be repaired, updated, and installed if the vehicle does not meet the required standards. 21. Expanding cleaner fuel supplies (e.g., clean natural gas) in the city and implementing strategies for reducing vehicle emissions to decrease nitrogen oxide. National and local policies already emphasize the reduction of vehicle emission pollutants through a combination of cleaner fuels, improved vehicle emission controls, traffic demand management, and clean-fuel public transportation. 22. Enforcing stricter emission standards, including Step III of GB 18352-3-2005 and GB 17691-2005 by July of 2007, and Step IV by July of 2010. Adopting Step III means reducing emissions from new vehicles by as much as 50%, and Step IV by 30%, under the current standards, which are equal to Step II of the European standards.

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C. Hydrology

23. The project area is in the upper reaches of the Yellow River, which flows 214 km west to east through the municipality with the valley covering an area of 200 km2. The river is 26 km from Baiyin district and 7 km from Pingchuan district. The annual average flow of the Yellow River is 1,040 cubic meters per second (m3/s), the lowest flow is 67.9 m3/s, the average flood peak is 5,236 m3/s, and the average silt content is 6.28 kilogram (kg) per cubic meter. 24. Baiyin district has two seasonal tributaries—the 38 km long Dongdagou and the 30 km Xidagou. These flow from the northern mountainous region, receiving most of the area’s storm water and domestic and industrial wastewater in the catchment area, and then run south into the Yellow River at Silong and Shuichuan. 25. Pingchuan district has three seasonal tributaries—the 13 km long Dashuitou Shahe, the 13 km Huangshuigou Shahe, and the 15 km Xianquan Shahe—which cross the district collecting storm water in the summer and domestic sewage in their drainage basins before flowing into the Yellow River. 26. The project area, with the water table at depths of 4–8 m, lacks significant groundwater resources. D. Ecological Resources

27. The project area is confined to desert grassland with sparse drought-enduring wild shrubs and herbs, as well as planted forests and crops. The vegetation coverage rate is less than 10%. The population of wild birds and animals is relatively small. The main species of wild birds are the goshawk, swift, sparrow, crow, pintail sandgrouse, magpie, and chough. The main species of mammals are the corsac, hare, bat, blue sheep, and field mouse. The natural fish species present in the Yellow River are carp, crucian carp, grass carp, silver carp, and northern bronze gudgeon (Coreius septentrionalis). 28. No rare, threatened, or endangered species have been recorded in the project areas. The Project is not expected to encroach on cultural heritage sites. E. Water Quality

29. In 2005 Baiyin city generated 25.67 million m3 of wastewater, 52.7% of this industrial wastewater. The wastewater was handled by two WWTPs and their associated wastewater collection systems. 30. The water quality objectives for the Yellow River are Class II at the section of Qingcheng Bridge and Class III at the sections of Jingyuan Bridge and Wufuo Temple. However, monitoring data in 2005 indicated that the appropriate standards were not reached. The data showed ammonia nitrogen (NH3-N), total phosphorus (TP), total nitrogen (TN), and fecal coliform exceeding the standards. 31. The water quality objective for the tributaries Dongdagou and Xidagou is Class I of the Integrated Wastewater Discharge Standard (GB8978-1996). According to 2005 monitoring data, the standard was not reached. Wastewater discharged from Baiyin showed concentrations of suspended solids, chemical oxygen demand (COD), mercury (Hg), NH3-N, and TP in excess of the standard. To address this problem, in addition to enforcing industrial pre-treatment to control

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pollutants discharges, BMG is also implementing 10 environmental improvement projects, including increasing 40,000 cubic meters per day (m3/d) wastewater treatment capacity, as well as other industrial wastewater treatment facilities in Baiyin Nonferrous Metal Co., Gansu Rare Earth Co. and Yinguang Co. After completion of the projects, the discharges of COD and heavy metals acidic wastewater will be reduced by 1,500 ton/annum and 2.29 million m3/annum, respectively. F. Status of Pollution

32. The total amounts of wastewater, waste gas, and solid waste discharged in Baiyin are listed in Table 1.

Table 1: Total Amounts of Pollutants Discharged in Baiyin Type Pollutant Amount of Pollutant

Industrial waste gases 27.46 billion (m3/a) SO2 136,217 (t/a)

Flue dust 11,675 (t/a)

Waste gas

Industrial dust 13,279 (t/a) Wastewater 25.67 million (m3/a)

COD 3,996 (t/a) Hg 0.11 (t/a) Cd 13.48 (t/a) Cr 0.04 (t/a) Pb 32.94 (t/a) As 107.56 (t/a)

Volatile phenol 0.09 (t/a)

Wastewater

Petroleum 14.33 (t/a) Solid waste 2.98 million (t/a) As = arsenic, Cd = cadmium, COD = chemical oxygen demand, Cr = chromium, Hg = mercury, m3/a = cubic meters per annum, Pb = lead, SO2 = sulfur dioxide, t/a = tons per annum. Source: Environmental impact assessments. 33. Apart from the proposed project for ADB financing support, Baiyin has initiated a number of environmental improvement projects with funding support from the national and provincial governments. Below are a few major ongoing interventions and a summary of their links to BMG’s efforts to achieve the mandatory environmental control targets set by the Government for 2007. 34. Major Ongoing Domestically-funded Environmental Improvement Projects:

• Baiyin Nonferrous Metal Corporation Environment Improvement Project: Total investment: CNY250 million (about $33 million); Purpose: to upgrade the processing technology, thus increasing the sulfur utilization rate from 60% to 90% and reducing annual sulfur emission by 50,000 tons, reducing annual discharge of acid industrial wastewater by 660,000 tons, and reducing the discharge of heavy metal pollutants including copper, lead, arsenic. by 300 tons;

• Gansu Rare Earth Corporation Industrial Wastewater Treatment Project Phase II:

Total investment: CNY7.21 million (about $950,000 at current exchange rate); Purpose: to establish an industrial wastewater treatment pond with a capacity of 3 million m3 which will collect all the industrial wastewater from the rare earth processing, thus achieving “zero discharge” by this industry to Yellow River,

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reducing annual discharge of industrial waste water by 600,000 tons and decreasing COD and chemical pollutant discharge by 2,502 tons per annum; and

• Baiyin Municipal WWTP Project: Total investment: CNY101 million ($13 million at

current exchange rate); Purpose: to increase the municipal wastewater treatment capacity by 40,000 tons/day and to install wastewater recycling facilities to use the recycled wastewater and stop direct discharging of municipal wastewater to Yellow River.

35. Baiyin Mandatory Pollution Control Targets and Actions for their Achievement:

• Under the 11th Five Year Development Program for 2006-2010, PRC Government has set 10% reduction of SO2 emission and 10% reduction of COD discharge as the mandatory pollution control target for the national as a whole. These national targets have been assigned from the central government to sub-national entities from provincial governments, city governments, and county governments as their annual mandatory targets for pollution control and environmental improvement. In Baiyin, the targets specified for 2007 are reduction of SO2 emission by 33,000 tons and reduction by COD discharge by 1500 tons. These targets will be mainly by the domestically funded projects above mentioned.

• Reduction of SO2 Emission by 33,000 Tons. This target is to be achieved by a

set of environmental improvement projects including Item (i) above mentioned which is to be in initial operation to reduce SO2 emission by 30,000 tons and the desulfurization device to be installed at four coal-fired power plants;

• Reduction of COD Discharge by 1500 Tons. This is to be achieved by the

items (ii) and (iii) above mentioned, which will start to reduce COD discharge by 300 tons and 1,200 ton respectively this year.

G. The Existing BHTIP

36. The existing BHTIP is located on south of the urban area of Baiyin with the total area of 8 km2, downwind direction of the Baiyin urban area. By February 2007, BHTIP has attracted 43 enterprises with a total investment of CNY3.36 billion. Ten of the enterprises have started productions and operations. The industrial sectors include commodity and fine chemicals, non-ferrous metals, new energy materials, medical equipment and medicines, foods and other manufacturing industries. The total industrial output is CNY1,033 million in 2006. The REIA of the SBIZ including the BHTIP has been approved by Gansu Provincial Environmental Protection Bureau (EPB), which requires all the tenants must pre-treat their own wastewaters to meet the national standards. Air emissions must comply with the national standards and the ambient air in the BHTIP must meet Class II of the national ambient air standards. Also some tenants in the BHTIP have begun to conduct cleaner production audits based on relevant national and the province plan and procedures. H. Socioeconomic Conditions

37. Baiyin is one of the most important energy bases in northwest PRC. Its installed power generation capacity is 1.7 million kilowatts (kW), 24% of the capacity of Gansu province. After more coal-based thermal power plants and hydropower stations are built as planned, the

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installed power generation capacity of the municipality will reach 10 million kW, enough to sustain industrial zone needs over the long term. Baiyin is also rich in coal resources, with annual coal production exceeding 6 million tons and proven reserves of 1.5 billion tons. 38. The city is home to numerous historical and cultural features including the Banshan Culture relic, the Silk Road, the Great Wall of the Ming Dynasty, Yellow River Stone Forest, Faquansi Cave, Wulang Mountain, Tiemu Mountain, Taohua Mountain, and the memorial commemorating the joining of the Red Army forces after the Long March. The Project will not affect the culture relics and nature landscapes, according to the EIAs. 39. Over the past two decades, Baiyin has experienced strong economic growth, with gross domestic product (GDP) reaching CNY14.654 billion. There is evidence that the fruits of this economic growth are being passed on to Baiyin residents, as GDP per capita has increased by 12.68% in 2006 from the previous year to CNY8,395. 40. No cultural, historical, or archaeological sites have been identified in the project areas. The key social indicators for the project areas are summarized in Table 2.

Table 2: Key Social Indicators for Baiyin City Item Indicator Population Total population: 1.7455 million. Nonagricultural population: 0.5252 million. Agricultural

population: 1.2203 million. Population growth rate: 0.629%. Land Total area: 21,200 km2. Urban area: 50.5 km2. Economy GDP: CNY14.654 billion ($1.8787 billion). Per capita GDP: CNY8,395 ($1,076.28). Education 151 middle schools with total enrollment of 186,090; 996 primary schools with total enrollment

of 237,424; 10 vocational schools with total enrollment of 6,011; and 142 kindergartens with total enrollment of 25,036.

Culture 6 libraries, 2 museums, 5 cultural centers, 2 art ensembles, 1 television station, and 4 broadcasting stations.

Medical Service 26 hospitals with 4,968 beds; 782 clinics and medical stations; 1,699 licensed doctors. Communication Total number of telephone subscribers: 324,500 including 91,500 rural users. Total number of

cell-phone subscribers: 289,300. GDP = gross domestic product, km2 = square kilometer. Source: Environmental impact assessments and Gansu 2005 Yearbook. 41. Baiyin is a major transportation hub in the province, with highways and railways connecting to other cities within and outside the province. The highway system in the city includes the national roads 109, 312, and 309, as well as the provincial roads of Haigu, Jingtian, and Yinglan, and 15 county roads. The urban roads in the municipality are 264.87 km in total length and encompass a total area of 3.7253 million m2. Two railways—Baotou to Lanzhou and Baiyin to Baojinshan—and 29 railway stations transect the municipality. 42. Important industries of the city are copper, aluminum, lead, zinc, chloride rare earth metals, cryolite, explosives, and building pottery. The large enterprises include BNMC, Yinguang Chemical Corporation, Gansu Rare Earth Corporation, and Jingyuan Mining Bureau. 43. With the abundant water resources of the Yellow River, Baiyin’s agriculture sector has developed high-lift irrigation practices and has since irrigated an area of 1.2324 million mu (82,160 hectares [ha]). The major crops grown in the city include wheat, corn, beans, cotton, and oil-bearing crops. Commercial agriculture products include Daban black melon seeds, fish, beer barley, red jujube, Tibetan sheep fur, and melons and other fruits.

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IV. ALTERNATIVES

A. Alternatives for District Heating Component

44. Natural gas fired boiler technologies are typically more efficient and cleaner combustion technologies comparing to oil and coal fired technologies. The PRC has a plan to install natural gas pipelines in northwest part of PRC which is likely to pass Baiyin city. However, there is no pipeline natural gas available in Baiyin right now to support the proposed district heating subcomponent. 45. Electric hot water storage boiler option was considered during the feasibility study as Baiyin is an electricity generation center for Gansu province and it has abundant electricity supply locally. The overall boiler efficiency, however, is low due to the conversion of electricity to thermal energy. This option also demands significant more initial capital investment. Thus it’s eliminated from consideration. 46. Oil fired boiler technologies were also considered. However, there are no reliable oil sources in Baiyin area to support large oil-fired boilers. In addition, using oil as the primary fuel is not economical comparing with burning local coal. Thus, coal is selected as the fuel for the district heating subcomponent. 47. Three types of coal-fired boiler technologies were evaluated during the feasibility study. They are circulating fluidized bed (CFB) boiler, pulverized coal boiler and chain grate stoker boiler. One of main advantages of CFB technologies is that it reduces SO2 emissions through adding limestone to the boiler. However, the local coal has relative low sulfur content (<0.3% sulfur). Fro pulverized coal boiler, more particulate matters are generated using this technology. Thus it requires expensive dust control devices to reduce emissions. This type boiler also requires high level maintenance. Stoker boiler technology is reliable, easy to operate and maintain, and widely used in PRC. It requires the lowest capital investment among all options. Emissions from new stoker boilers can meet the national air emission standards. 48. Based on above analyses, it is concluded that chain grate stoker boiler technologies is the most economical and suitable option for the district heating subcomponent. 49. Two locations for the new heating station were considered. After the planning, technical, management, and coal and slag transport issues were evaluated, Alternative 1, the site of the existing district heating station of Minyue District Heating Corporation (MDHC), was selected. The selection of this site conforms to the city’s planning strategy: no land acquisition, a lower budget, use of existing storage facilities for coal and slag, increased efficiency of management, and overall less of an environmental impact in the city. Table 3 shows the advantages and disadvantages of each site.

Table 3: Alternative District Heating Station Sites Compared Alternative Advantages Disadvantages Alternative 1 (existing site of DH station of Minyue DH Co.)

• Meets planning requirements • No land acquisition • Convenient for coal and slag transport • Existing water supply, drainage, and

communication facilities can be used • Shorter distance for connecting power

• Located in urban area; tall chimney affects urban scenery

• Construction of more heat exchange stations will require more demolition

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Alternative Advantages Disadvantages supply

• Little earthwork, easy for construction • CNY6 million cheaper than Alternative 2 • Only requires enlarging existing storage

facilities for coal and slag, not building new ones

• Convenient for management, more efficient control and monitoring of pollutants

Alternative 2 (500 m south of Baiyin Municipal Party School)

• Fewer heat exchange stations, resulting in less demolition

• Good geological conditions • Far from downtown area, less noise impact

on residents • Shorter distance to residential areas to be

served

• Acquisition of 30 ha of land • Does not meet planning requirement • Power and water supply connections

needed • Additional earthworks • Budget higher than that for Alternative 1 • New boiler stack and storage facilities for

coal and slag needed • Stack close to high-voltage wires and poles,

may affect safety of high-voltage power transmission

• Far from company headquarters, less efficient for management

• Increases need for environmental monitoring for emissions, noise, wastewater, etc.

DH = district heating, ha = hectare, m = meter. Source: Environmental impact assessment report. B. Alternatives for SBI Improvement Component

50. Two locations for the SBIZ were considered (Table 4). Alternative 1 is a 5 km2 area south of the Lanzhou–Baiyin Highway, west of Gongyuan Road, and east of Southern Binhe Road; Alternative 2 is a 6 km2 area south of the Southern Three Ring Road, west of Yinguang Road, and east of Gongyuan Road. Alternative 2 was selected as it requires no land acquisition and resettlement and will have less impact on the surrounding environment even though the cost of land leveling will be higher.

Table 4: Alternative Southern Baiyin Industrial Zone Locations Compared

Alternative Advantages Disadvantages Alternative 1 • Closer to the urban area

• Flat landform, less earthwork • Conforms to city’s development plan • Wastewater easily discharged into the municipal

WWTP • Closer to Lanzhou–Baiyin Highway, convenient

for transportation

• Occupies 53.3 ha of farmland, 200 ha of woodland; requires resettlement of 400 families (1,500 persons)

• Dense high-voltage power grids resulting in limited usable land

• Additional impact on surrounding environment

Alternative 2 • Requires no land acquisition and resettlement

• Close to Yinguang Corporation; therefore, the remaining resources of the company can be used

• Natural gas pipeline will be laid near the area; convenient for obtaining energy

• More earthwork for land leveling (3.5 million m3)

• Low-lying land makes wastewater discharge into the WWTP difficult

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Alternative Advantages Disadvantages • No environmentally sensitive point • Public consultation indicated positive attitude

toward this site ha = hectare, m3 = cubic meter, WWTP = wastewater treatment plant. Source: Environmental impact assessment report. 51. The feasibility study offers no alternatives for the alignment of roads. For road pavement materials, asphalt-concrete, cement-concrete, and low-noise asphalt-concrete were considered. An asphalt-concrete pavement was selected on the basis of its lower cost, pavement intensity, and good anti-skid performance. 52. For the wastewater collection networks, three types of systems were evaluated: separate-flow drainage, combined drainage, and separate system with early storm-water collection (SSESC). The SSESC was selected because of its significant environmental benefits. The SSESC requires factories to treat all industrial wastewater under the supervision of the Baiyin Environmental Protection Bureau (BEPB) to the specified standard before discharge into the municipal WWTP.

V. ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES

A. Positive Impact and Environmental Benefits

53. The DH component will significantly improve local air quality by using environmentally friendly high-efficiency boilers with advanced emission control equipment that consume less coal, and by decommissioning 63 small, inefficient coal-fired boilers and replacing thousands of single-family heating stoves. The reduction of the single-family stoves, a point source for indoor air pollution, will have a significant positive impact on residents’ health and well-being. Water and soil pollution will indirectly improve as a result of the reduction of particulate matter emissions, mercury, and the harmful compounds that contribute to acid rain and decreased crop production and water pollution. The DH, along with the closure of the small coal-fired boilers, will (i) increase the urban coverage of DH services and reduce coal consumption and emissions associated with indoor heating and cooking; (ii) reduce the traffic hazards caused by coal transport vehicles in urban areas; and (iii) improve public health and the living environment in areas now affected by emissions, noise, and flue dust from small boilers. The projected reductions in coal usage and emissions are summarized in Table 5.

Table 5: Estimated Reductions in Emissions and Coal Consumption as a Result of the District Heating Component

Item Reduction (t/a) Coal savings 5,694 SO2 emission reduction 185 Flue dust emission reduction 8,946 NO2 emission reduction 195 Greenhouse gas emission reduction (CO2 equivalent) 6,074

CO2 = carbon dioxide, NO2 = nitrogen dioxide, SO2 = sulfur dioxide, t/a = tons per annum. Source: Environmental impact assessment report. 54. The URI component will help the city establish an efficient, safe, and sustainable urban transport system. The regional economy and local residents are expected to benefit from improved transport facilities and efficiency. The URI will also contribute to reductions in motor

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vehicle emissions, resulting in better ambient air quality through more efficient motor vehicle operation, and shorter travel time. The construction and expansion of the wastewater collection network in conjunction with the road construction will provide for more efficient separation, collection, and transportation of storm water and municipal wastewater in the city. All municipal wastewater generated by the Project will be treated at the Baiyin municipal WWTP. To control erosion, the URI component proposes to revegetate about 206,907 m2 of grassland and plant 17,453 trees on roadsides and medians accounting for 15% of the total proposed road area. The component will significantly improve the urban infrastructure and, as a result, attract outside investments and promote the city’s economic and industrial diversification and transformation. 55. The SBI component will significantly improve the city’s socioeconomic status by establishing a sustainable SBIZ, creating new jobs, and reducing unemployment during construction and operation, thus increasing the local residents’ income and improving their quality of life, and by taking the necessary steps to protect the environment, such as the planting of 10,189 trees and 56,382 m2 of vegetation along roads and medians. The SBI will also set an example by developing a sustainable and environmentally friendly industrial zone. If successfully implemented, it could be replicated region-wide in the PRC. The SBI will increase appreciation of the surrounding uncultivated wildlands and mountainous regions, and will indirectly promote developments in education, research, and science and technology, and the industrial growth of the entire city. B. Balances of Water Supply and Wastewater Treatment

56. The State Yellow River Conservancy Commission and Gansu Provincial Water Resource Department has established water withdraw quota from the Yellow River for Baiyin. The allowable water withdrawal for Baiyin city is 100.25 million m3/annum (274,700 m3/day), including 25 m3/annum for domestic use and 75.25 million m3/annum for industrial use. Table 6 summarizes the water supply balance for Baiyin. It’s concluded that there is enough water to sustain the Project. A similar assessment was performed for wastewater discharge and treatment capacity (see Table 7). It is also conclude that there will be enough wastewater treatment capacity to treat all wastewater generated by enterprises in the SBIZ without considering the amount of recycled water in the SBIZ. In addition, according to SBIZ’s investment promotion plan, the estimated occupancy rate on the proposed ADB financed industrial land will reach about 30% by 2010, 40% by 2011, 50% by 2012, and 80% by 2015. That means the capacities of both water supply and wastewater treatment are far exceed the expected demands.

Table 6: Water Supply Balance Item Amount Year Water Supply

Capacity 205,000 m3/day 2007 Current consumption 184,500 m3/day 2007 Surplus 20,500 m3/day 2007 Planned capacity increase 50,000 m3/day 2010

Water Saved

From closure of factories and mines by end of August 2007

18.1 million m3/a (49,600 m3/day)

2010

Increase in Water Consumption due to SBIZ Estimated maximum water consumption of SBIZ by 2015

114,000 m3/day 2010

Planned consumption of existing industrial park 20,700 m3/day 2010

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Item Amount Year Increase in consumption by 2015 93,300 m3/day 2010

Water Supply Balance 50,000 + 20,500 + 49,600 - 93,300

= 26,800 m3/day 2010

m3 = cubic meter, m3/a = cubic meters per annum, SBIZ = southern Baiyin industrial zone. Source: PPTA consultants.

Table 7: Wastewater Treatment Balance Item Amount

40,000 m3/day (will increase to 80,000 m3/day by 2010)

Municipal WWTP Treatment capacity Current amount treated (80% of domestic) 12,000 m3/day Surplus by 2010 68,000 m3/day

15,000 m3/day (will increase to 30,000 m3/day by 2010)

Yinguang WWTP

Treatment capacity Current amount treated (95% of industrial) 10,000 m3/day Surplus by 2010 20,000 m3/day

Surplus by 2010

88,000 m3/day (68,000 + 20,000)

Estimated maximum wastewater discharged from IZ by 2010 68,400 m3/day Wastewater Treatment Balance 88,000 - 68,400 = 19,600 m3/day m3 = cubic meter, SBIZ = southern Baiyin industrial zone, WWTP = wastewater treatment plant. Source: PPTA consultants. C. Environmental Impact and Mitigation Measures during Construction

1. Soil

57. The Project could affect the soil in the project area through erosion, contamination, differential compaction, temporary or permanent acquisition of land, and construction traffic. Soil erosion may be caused by the excavation of pipe trenches and borrow pits; stockpiles and spoils from earthwork during the construction of roads, bridges, pipelines, and grading; and the demolition of existing structures and the preparation of the sites for the DH facility and the heat exchange stations. Bridge construction may contribute to bank erosion and excessive sediment load in receiving waters if proper design and construction methods are not strictly followed. Soil contamination may result from the inappropriate transfer, storage, and disposal of petroleum products, chemicals, hazardous materials, and liquid and solid waste. 58. Mitigation measures will include the following:

(i) Covering or seeding temporary soil stockpiles; watering construction sites and hauling roads.

(ii) Minimizing active open excavation areas during trenching activities and using appropriate compaction techniques for pipe trenches.

(iii) Installing sediment fences or sedimentation ponds where appropriate to minimize sediment runoff.

(iv) Properly sloping or revegetating disturbed surfaces, such as borrow and fill areas, compacted pipeline trenches, and cut banks, to minimize erosion.

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(v) Properly storing petroleum products, hazardous materials, and waste on impermeable surfaces in secure, covered areas, and using best management practices to avoid soil contamination.

(vi) Limiting construction and material handling during periods of rain and high winds to minimize soil erosion.

(vii) Removing all construction wastes from the site to approved waste disposal sites.

(viii) Providing spill cleanup measures and equipment at each construction site (this requirement will be included in bidding documents) and requiring contractors to conduct training in emergency spill response procedures.

(ix) During road and bridge construction, maintaining slope stability at cut faces by implementing erosion protection measures such as terraces, silt barriers, and sedimentation ponds. No arbitrary borrowing will be allowed. Topsoil will be stockpiled and covered or revegetated for future rehabilitation activities.

(x) Developing an erosion protection plan and having it approved before construction. Approved locations of borrow pits and spoils piles will be defined in contractors’ tender documents. All borrow materials, solid waste, and temporary sewage disposal sites will require prior approval from local EPBs.

(xi) Stabilizing as far as possible all cut slopes, embankments, and other erosion-prone working areas while work is going on. All earthwork disturbance areas will be stabilized within 30 days after earthwork has ceased at the site.

(xii) Designing temporary construction camps and storage areas to minimize land area required and impact on soil erosion.

2. Water

59. The Project could affect surface water and groundwater in the project area through increased sedimentation of water resources from construction activities, inappropriate storage and handling of petroleum products and hazardous materials, and improper wastewater disposal. Construction activities will disturb surface soils and could increase sediment load in surface waters; in particular, 12 bridges across several tributaries are proposed. Inappropriate storage and handling of petroleum products and hazardous materials, disposal of domestic wastewater from construction camps, and disposal of wash-down water from construction equipment and vehicles may affect adjacent surface water or groundwater resources. 60. Mitigation measures will include the following:

(i) Installing appropriate septic disposal systems at construction camps, along with proper maintenance protocols.

(ii) Equipping all construction drainage and construction equipment wash-down areas with water collection basins and sediment traps.

(iii) Storing all toxic, hazardous, or harmful construction materials including petroleum products on an impermeable surface and managing these materials in such a way as to prevent spillage or leakage, which could spread and affect surface water or groundwater systems.

(iv) Handling solid waste disposal in consultation with local authorities to protect surface water and groundwater resources.

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3. Air Quality and Noise

61. The Project could have these effects on air quality and noise levels during construction: (i) dust and noise from gravel production, concrete mixing, heavy equipment, and other construction activities; (ii) emissions from asphalt plants, asphalt pavement, construction vehicles, and heavy diesel equipment; and (iii) construction noise. Fugitive dust may be caused by excavation, demolition, vehicular movement, and materials handling, particularly downwind from the construction sites. Noise caused by construction equipment and vehicular movement could affect nearby residential areas, hospitals, and schools. 62. Mitigation measures will include the following activities:

(i) Locating asphalt plants and mixers as far away as possible (at least 200 m downwind) from the nearest residential areas and other sensitive receptors.

(ii) Spraying with water construction sites and materials handling routes where fugitive dust is being generated.

(iii) Paying particular attention to dust suppression near sensitive receptors such as schools, hospitals, or residential areas.

(iv) Storing materials in appropriate places and covering, seeding, or spraying them to minimize fugitive dust.

(v) Covering materials during transportation to avoid spillage or dust generation.

(vi) Maintaining vehicles and construction machinery properly and complying with emission standards.

(vii) Using low-noise equipment, and maintaining and operating machinery properly.

(viii) Placing temporary hoardings or noise barriers around noise sources during construction, if necessary.

(ix) Prohibiting construction between 20:00 and 06:00 the next day in sites near residential areas.

63. Additional surveys will be done before or during preliminary design to refine the noise impact and to develop appropriate mitigation measures in consultation with those affected. Preliminary projections of noise impact based on adjusted traffic forecasts will be reviewed to determine whether any noise-sensitive receptors other than those listed in the EIAs will be affected. Physical noise barriers will be designed and built if the forecast noise limits fail to meet the standard. The cost of these measures will be included in the final design cost estimate.

4. Solid Waste

64. Inappropriate waste storage and disposal could affect soil, groundwater and surface water resources, and, hence, public health. Mitigation measures will include the following:

(i) Minimizing the storage of petroleum products and hazardous, reactive, ignitable, and flammable materials on-site, and conducting regular inspections.

(ii) Requiring contractors to have an agreement with a spill response organization or to ensure that employees are properly trained to respond safely to an emergency

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involving a hazardous material or petroleum spill. This requirement will be included in all bidding documents and contracts for civil works.

(iii) Storing petroleum products, hazardous materials, and wastes appropriately, on an impermeable surface in a secure, covered area, and separating stored hazardous waste from nonhazardous waste.

(iv) Hiring a contractor with the proper credentials to remove all wastes (hazardous and nonhazardous) from sites to approved waste disposal sites according to the appropriate standards. No on-site landfills will be permitted at any construction site.

(v) Holding the contractor responsible for the proper removal and disposal of any significant residual materials that remain on the ground after construction, as well as contaminated soils. Any planned paving or vegetating of the area should be done as soon as the materials are removed, to stabilize the soil.

(vi) Removing the construction wastes promptly from the sites.

(vii) Prohibiting the burning of waste.

5. Flora and Fauna

65. The potential impact of the Project on flora and fauna includes the removal of vegetation and the disruption of the ecosystem during construction. In particular, the leveling of 6 km2 of land in the SBIZ will alter the original landscape and vegetation; as a result, some birds and small mammals and reptiles that inhabit this area will be dislocated. However, there are no rare, threatened, or endangered species within the project boundaries. 66. Mitigation measures will include the following activities:

(i) Removing trees or shrubs only as a last resort if they impinge directly on the permanent works or approved necessary temporary works.

(ii) Properly compacting and revegetating the trenches after pipe laying.

(iii) Protecting trees and grassland during road and bridge construction, and, if a tree has to be removed or an area of grassland disturbed, replanting trees and revegetating the area.

(iv) Planting and replanting along the road a mix of local vegetation species similar to the mix and composition found locally (there is a substantial budget for landscaping). The local forest authority will be consulted to confirm appropriate species, along with plant density and spacing issues, for best results. This landscaping will be included in the bidding documents and is the contractor’s responsibility, to be estimated and budgeted as a construction cost.

(v) Taking special precautions during and after construction for the protection of the small animals, reptiles, and birds of common species that will eventually live in the vegetated roadside areas, medians, embankments and slopes, inner areas of bridges, and especially the green areas and roadside parks.

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6. Historical, Cultural, and Archaeological Sites

67. Construction activities could disturb cultural sites. Although no such sites have been discovered so far in the project areas, procedures will be established for identifying and protecting cultural sites discovered during construction. Mitigation measures will include immediately suspending construction if archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the PMO, will be promptly notified, and construction will resume only after thorough investigation and with the permission of the appropriate authority. As no cultural or archeological sites have been identified along the project alignment, the likelihood of discovering a cultural site is considered low. As for resettlement of graves, in case graves will be found, relocation will be conducted in accordance with the procedure and requirements of the appropriate authority. It is important that we do not miss these concerns during the public consultation phase.

7. Socioeconomic Impact

68. The potential socioeconomic impact of the Project during construction includes traffic congestion, threat to public safety from construction activities and heavy equipment traffic, and unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, heating supply, and gas, as well as to underground power cables and communication cables. Any of these disruptions in service can seriously affect the economy, industries, and the residents’ daily life. Traffic congestion may worsen as construction traffic in urban areas increases during rush hour; roads may be fully or partially closed during construction causing temporary inconvenience to residents, commercial operations, and institutions. Construction may require the relocation of municipal utilities such as sewer, gas, water supplies, communication cables, and power supplies, and hence the temporary suspension of services to adjacent communities. Construction sites may be located in residential and commercial urban areas, presenting a threat to public safety. 69. Mitigation measures will include:

(i) Requiring contractors to consider the impact on traffic in construction scheduling. A traffic control and operation plan will be prepared and it will be approved by local traffic management administration before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, building interim roads, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed.

(ii) Planning construction activities so as to minimize disturbances to utility services. Temporary land occupation will be planned well ahead of construction to minimize its impact. Land will be reinstated to its original condition after construction.

(iii) Implementing safety measures at the construction sites to protect the public, including warning signs to alert the public to potential safety hazards, and barriers to prevent public access to construction sites.

(iv) Conducting three-dimensional detection of underground facilities before construction. Consultancy and advice to design institutes and contractors from a subsurface utility engineering specialist is necessary to avoid potential accidents, excessive costs, and delays during project implementation.

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8. Land Acquisition and Resettlement

70. The Project will affect 14 villages through permanent land acquisition and resettlement. About 730.4 ha will be permanently acquired, and 13.34 ha will be temporarily occupied. These land acquisitions will affect 6,272 persons. A total of 2,828 rural and urban residents will be relocated and an estimated 89,826 m2 of houses will be demolished; the demolition of non-residential structures totaling 28,814 m2 will directly affect 1,378 rural and urban employees from 42 enterprises and shops. 71. Contractors should take measures to mitigate environmental impacts during the building demolishing in accordance with related environmental standards and regulations. The mitigation measures include safely disposal of demolishing wastes, protection environment from fugitive dust, and noise control, etc. 72. Resettlement plans have been prepared for the four project components according to the PRC’s and ADB’s policies and requirements for resettlement, which describe the resettlement and compensation procedures for the affected households and residents. D. Impact and Mitigation Measures during Operation

1. District Heating Component

73. The adverse environmental effects of the DH component during its operation primarily include air pollution from the boiler stacks, noise, and industrial and domestic wastewater and solid waste from the boiler station and the heat exchange stations. Table 8 shows the estimated pollution load from this component.

Table 8: Estimated Amount of Pollutants during District Heating Operation Type Pollutant Amount of Pollutant

Discharge value of wastewater 2,355 (m3/a) SS 0.35 (t/a)

COD 0.80 (t/a)

Domestic wastewater discharge

BOD5 0.38 (t/a) Discharge value of wastewater 4,500 (m3/a)

Ca+2 0.33 (t/a) CL- 0.32 (t/a)

Industrial wastewater discharge

SS 0.16 (t/a) Emission value 1,560 million (m3/a)

SO2 755.00 (t/a) NOx 401.20 (t/a)

Air emissions

Flue dust 294.30 (t/a) Industrial solid wastes 54,707.11 (t/a) Solid waste

disposal Domestic garbage 17.64 (t/a) BOD5 = 5-day biochemical oxygen demand, Ca+2 = calcium, CL- = chlorine, COD = chemical oxygen demand, m3/a = cubic meters per annum, NOx = nitrogen oxide, SO2 = sulfur dioxide, SS = suspended solids, t/a = tons per annum. Source: Environmental impact assessment. 74. The estimated emission concentrations of flue dust and SO2 will be 189 milligrams per cubic meter (mg/m3) and 484 mg/m3, respectively, which are lower than that in the national standards (GB13271-2001) of “Emission Standard of Air Pollutants for Coal-fired Boiler”. Specifically, emission standards for flue dust and SO2 are 200 mg/m3 and 900 mg/m3, respectively. In addition to strictly complying with the standards, the environmental impact of the DH facilities during operation will be mitigated by:

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(i) Building an 80 m high boiler stack to disperse and minimize the direct impact of emissions on adjacent areas.

(ii) Using a combined dust precipitation process—pocked-stone water-film dust collector and dry-dust separator—with a dust removal efficiency of at least 95%.

(iii) Using wet type desulfurization equipment with lime injection process that is at least 75% efficient;

(iv) Burning low-sulfur (0.3% sulfur and produced from Honghui No.1 Coal Mine, that is a shareholder of MDHC).

(v) Carrying out dust suppression activities, such as spraying water on coal and fly ash and covering coal stockyards, to minimize the dispersion of airborne dust during coal and fly-ash offloading, stockpiling, and handling at the boiler station.

(vi) Selling both bottom ash and fly ash to local construction material factories as a raw material (current price: CNY25/ton) and for road-base gravel.

(vii) Building fly-ash stockyards and coal bunkers as fire-proof semi-closed facilities.

(viii) Recycling wastewater from wet fly-ash disposal and coal spraying to conserve water and reduce disposal.

(ix) Building or improving soundproof covers and walls in the district heating station to reduce noise.

(x) The boilers equipped air-intake-volume regulators to optimize and control air supply to the boilers to minimize NOx and carbon monoxide generation as well as increase energy efficiency; and

(xi) Installing an online automatic monitor on the smokestack of the heating supply station to monitor sulfur dioxide and flue dust (the Baiyin Municipal Environment Monitoring Center will collect data and calibrate the instruments).

75. The main risks of the DH component include boiler failure (rupture) and improper operation and maintenance. The risks will be mitigated by (i) procuring good-quality boilers through bidding, (ii) operating and maintaining the boilers according to specifications and so as to reduce emissions, (iii) establishing an emergency response program for the Implementing Agency (IA) to respond to accidents, and (iv) preparing with the municipal fire brigade an emergency response protocol for responding to severe accidents and evacuating residents.

2. Urban Road Improvement Component

76. The adverse environmental impact of this component during its operation primarily includes vehicle emissions, traffic noise, water pollution from storm-water runoff, and spills resulting from road accidents. Pollutants from vehicle emissions include carbon monoxide, NOx, TSP, and total hydrocarbon (THC); of these, NOx is the most prevalent. Baseline monitoring indicates that the average concentrations of NOx in the project area are quite low, within 0.002–0.071 mg/m3. According to the EIA, if vehicle emission control is reinforced during the operation of the component, the NOx concentration will meet the Ambient Air Quality Standard (GB3095-1996). 77. Storm-water runoff—precipitation from rain that flows over the ground—can entrain debris, chemicals, sediment, rubbish, and other pollutants. If prevented by impervious surfaces like asphalt pavements and sidewalks from naturally permeating into the ground, it can transport

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these pollutants into sewer systems, tributaries, and directly into rivers and lakes, contributing to water pollution. Major pollutants from storm-water runoff include various organic compounds, petroleum, and suspended solids. Most storm-water runoff, the EIA says, will discharge into a roadside drainage system and then flow into the municipal WWTP. But since the project area is in an arid region with little precipitation, the environmental impact from runoff pollution will be minimal. 78. Mitigation measures for the above-mentioned URI impact will include the following:

(i) Including provisions for motor vehicle emission control in the bidding documents for all new gas stations in the city including gasoline, diesel, and compressed natural gas refueling facilities. Contractors that include clean-burning fuel stations in their bids will be given favorable consideration and preference if all other conditions are equal among the bidders.

(ii) Including similar provisions in the tendering documents for the procurement of new buses by the municipal bus companies. Bidders (bus suppliers) who propose buses with clean-burning fuels and who have installed more advanced emissions control systems will be given preferential consideration, assuming all other conditions are equal. Bus manufacturers and public bus companies that cannot meet the new emission control standards will not be allowed to bid.

(iii) Routinely collecting and properly disposing of litter and debris from sidewalks, driveways, and parking lots, especially near catch basins and storm drains.

(iv) Reporting spills to the relevant authorities for proper action and response to prevent harm to the environment.

(v) Inspecting erosion protection measures including seeded or stabilized slopes at least twice during the first year of the roads’ operation to ensure that they are maintained properly and are functioning as designed.

(vi) Properly maintaining newly planted trees along the roads, especially during the first 2 years of operation of the Project.

(vii) Decommissioning obsolete motor vehicles on the basis of current regulations and environmental considerations.

(viii) Requiring the local EPB to conduct routine and additional monitoring of ambient air quality in the proposed project areas, particularly at sensitive receptors such as schools, hospitals, and residential sites. The monitoring will be used to determine whether mitigation measures should be part of the vehicle emission control program. The cost of the additional monitoring will be included in the EMP budget.

(ix) Providing training for the local EPB and for road management and maintenance entities at the start of the roads’ operation to strengthen their general knowledge, various programs, mitigation planning, and other relevant aspects of prevention of water runoff and motor vehicle emission control.

3. SBI Component

79. Leveling 6 km2 of land in the SBIZ will change the ecology of the environment in the project area from a natural ecosystem to an artificial ecosystem. Natural vegetation will be moved and replaced with artificial green areas including planted trees, bushes, and grasses. In the process, some birds, small mammals, and reptiles that rely on the natural vegetation will be

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disturbed. Another risk is that lack of interest among enterprises in locating in the SBIZ when it is completed will not only produce no economic benefit but also lead to serious soil erosion on large expanses of disturbed ground without industrial structures. The mitigation measures during operation will include properly maintaining the planted trees and grasses, and revegetating any exposed land to enhance the ecology and to protect soil from water and wind erosion. 80. The major risks during the operational stage are to the SBIZ, as many of its tenants will be chemical plants or enterprises in closely related industries. If the tenants do not comply with the appropriate standards, or if the SBIZ management does not strictly follow its management plans or the environmental criterions and regulations in evaluating and approving new tenants, the SBIZ will face a significant risk from pollution accidents including spills and leakages of harmful liquids and gases (in particular, chlorine and carbonyl chloride), explosions, and untreated or semi-treated industrial wastewater being inadvertently or willfully discharged into the Yellow River through its tributaries. 81. The mitigation measures include the following activities by the SBIZ:

(i) Developing and enforcing a comprehensive and practicable set of administrative measures and regulations for strengthening overall environmental management and pollution control by the tenants; applying the “Three-Simultaneity” Regulation to all tenants in the SBIZ and working out a method for monitoring, supervising, evaluating, and penalizing factories in the SBIZ for inadequate waste treatment and disposal; and strictly supervising and inspecting environmental management by each tenant, and verifying the effective implementation of environmental mitigation measures.

(ii) Establishing an environmental management committee, headed by the chairman of the finance and economics committee of the Baiyin People’s Congress. It will comprise at least two members of the congress, at least one representative from the tenant enterprises, at least two independent environmental experts, the BEPB director, and the director of the Baiyin Production Safety Office.

(iii) Establishing an environmental management system (EMS) based on the ISO 14001 Environmental Management Standard, and encouraging enterprises in the SBIZ to comply with the ISO 14001 standard within a reasonable amount of time depending on the complexity of the enterprise. The enterprises should also minimize the adverse effects of their operations on the environment (air, water, and soil); comply with applicable laws, regulations, and other environmental protection requirements; and continuously improve their environmental performance through cleaner production, a circular (recycling) economy, and less pollution.

(iv) Strictly applying the guidelines set forth in the EIA and EMP to enterprises that wish to locate in the SBIZ. Enterprises that do not agree to or comply with these requirements will not be allowed to locate in the SBIZ.

(v) Establishing an emergency response mechanism including procedures for investigating and delegating responsibilities for pollution and safety accidents and an organization structure for emergency response (involving the SBIZ

22

command post, the Baiyin Fire Brigade, BEMC, and emergency response teams of the tenants) to reduce the consequences of pollution accidents.

(vi) Based on the requirements of the EIA and the REIA, BMG should construct an industrial solid waste disposal facility to the east of the existing Municipal Garbage Disposal Plant. Before the completion of the facility, all the industrial solid wastes, especially the hazardous wastes must be collected in SBIZ and sent to Gansu Provincial Industrial Solid Wastes Disposal Plant in the city of Lanzhou for proper treatment. All disposal costs will be paid by the wastes-generated enterprises.

(vii) Installing automatic monitoring instruments with alarm function at wastewater discharge outlets in the SBIZ and some major factories. The monitoring parameter generally include pH, temperature, total organic carbon, COD, NH3, etc., additional parameters may be added based on the pollutants from the factories in SBIZ after tenants are determined.

VI. ECONOMIC ASSESSMENT

82. Costs. The current cost estimate for the Project is $151.13 million (CNY1.18 billion). The environmental protection–related costs amount to an estimated $8.68 million (CNY67.77 million), or 5.75% of the total estimated cost of the Project. The environmental protection cost for each of the three main components is summarized in Tables 9, 10, and 11.

Table 9: Estimated Major Environmental Mitigation Costs – District Heating Item Cost ($) Responsibility

Construction and Equipment Installation Mitigation of dust from construction and transportation 1,282 Contractor Mitigation of construction-generated and domestic wastewater pollution 2,564 Contractor Measures to control construction noise 3,846 Contractor Disposal of solid waste from construction 1,282 Contractor Measures to prevent soil erosion, and revegetation 12,821 Contractor Desulfurization and dust-control equipment on four boilers 256,410 Contractor Semi-closed structure and water spraying facilities for the coal house 20,385 Contractor Semi-closed structure for slag stockyards with wastewater treatment and circulation system 37,051 Contractor Installation of soundproof facilities in the DH station 30,513 Contractor Installation of soundproof facilities in the 28 heat exchange stations 16,418 Contractor Construction of septic tank in the DH station Contractor Landscaping (trees and grasses in the DH and heat exchange stations) 12,051 Contractor Purchase of environment monitoring instrumentation and equipment 153,846 Contractor Monitoring 12,000 Contractor/EMC Training 12,820 Contractor/DH

Company/PMO Operation Monitoring 13,641a DH company/EPB

Training 20,513a DH company/ EPB/PMO

Total 613,845 $613,845, accounting for 2.45% of the total estimated cost of the component ($25.09 million) DH = district heating, EMC = environmental management committee, EPB = environmental protection bureau, PMO = project management office. a Cost per annum. Source: Environmental impact assessment.

23

Table 10: Estimated Environmental Mitigation Costs – Urban Road Improvement Item Cost ($) Responsibility

Construction Planting of 17,453 trees and 206,908 m2 vegetation on roadside and medians 1,550,090 Contractor Construction of 980 m of retaining wall along proposed roads to prevent soil erosion

292,692 Contractor

Mitigation of dust and air pollution from construction and transportation 102,564 Contractor

Mitigation measures for water pollution and contamination 51,282 Contractor

Measures to control noise 12,820 Contractor Measures for disposal of solid wastes and hazardous materials 12,820 Contractor Installation of 55.16 km of storm-water drainage pipeline to protect the local water environment

3,490,000 Contractor

Environmental monitoring 25,641 Contractor Operation

Mitigation measures to control vehicle emission and traffic noise, and water pollution from storm-water runoff

705,128a BEPB, BEMC, PMO, BCB

Environmental monitoring 51,282a BEPB, BEMC, PMO, BCB

Total 6,294,319 (8.93% of $70.52 million estimated cost of the component) BCB = Baiyin Construction Bureau, BEMC = Baiyin Environment Monitoring Center, BEPB = Baiyin Environmental Protection Bureau, km = kilometer, m = meter, m2 = square meter, PMO = project management office. a Cost per annum. Sources: Environmental impact assessment and environmental management plan.

Table 11: Estimated Environmental Mitigation Costs – Southern Baiyin Infrastructure Item Cost ($) Responsibility Construction Planting of 10,189 trees and revegetation of 56,382 m2 along roads and medians 489,744 Contractor

On-line monitoring and auto-sampling systems for industrial waste discharge and air emissions 128,205 Contractor/IZ

Environmental monitoring, including purchase of environmental monitoring instrumentation 262,821 Contractor/IZ

Mitigation measures for soil erosion control including construction of retaining walls 320,513 Contractor

Mitigation measures for water pollution and contamination 256,410 Mitigation of dust and air pollution from construction and transportation 38,462 Contractor/BEMC Establishment of environmental incident emergency response system 128,285 IZ/Baiyin Fire Brigade Environmental monitoring 14,103 Contractor/BEMC Operation Mitigation measures to control vehicle emission and traffic noise, and maintenance of revegetation 128,205a IZ/BEPB/BCB

Environmental monitoring 14,102a IZ/BEMC Total 1,780,850 (3.56% of $49.98 million estimated cost of the component) BCB = Baiyin Construction Bureau, BEMC = Baiyin Environment Monitoring Center, BEPB = Baiyin Environmental Protection Bureau, IZ = industrial zone, m2 = square meter. a Cost per annum. Source: Environmental impact assessment, regional environmental impact assessment, and environmental management plan.

24

83. Benefits. The DH component will generate both socioeconomic and environmental benefits. Three types of quantifiable economic benefits were identified in the EIA: (i) sale of slag to local construction material manufacturers as raw material (current price: CNY25 per ton), and to road contractors as road-base gravel; (ii) coal savings; and (iii) conservation of water by wastewater treatment and recycling. The economic benefits from the DH component are shown in Table 12.

Table 12: Economic Benefit from Environment Mitigation Measures for the District Heating Component

Total Benefit Item Quantity Current Unit Price (CNY) ($) Sale of slag 38,229 t/a CNY25/ton 955,725 122,529 Water conservation 23,500 m3/a CNY2/m3 47,000 6,026 Coal savings 5,694 t/a CNY185/ton 1,053,390 135,050 Total 2,056,115 263,604

m3 = cubic meter, m3/a = cubic meters per annum, t/a = tons per annum. Source: TA estimates. 84. The economic internal rate of return (EIRR) for each component is shown in Table 13. The weighted average EIRR for the Project is estimated at 22.21%. This percentage exceeds the economic opportunity cost of capital, which is assumed to be at least 12%.

Table 13: Economic Internal Rate of Return for Project Components

Component EIRR (%) District heating component 23.78 Urban road improvement component 14.76 Southern Baiyin infrastructure component 32.65 Source: TA 4818-PRC: Gansu Baiyin Urban Development Project Final Report.

VII. ENVIRONMENTAL MANAGEMENT PLAN

A. Institutional Requirements

85. BMG will be the Executing Agency (EA) for the Project. A project leading group to be headed by the mayor of Baiyin has been established and will be responsible for directing the project and providing policy guidance during project implementation. A PMO has been set up under the project leading group and it will be responsible for coordinating the implementation of project activities on behalf of BMG. The PMO will (i) ensure adequate inter-departmental and inter-agency coordination, (ii) monitor the progress of the project implementation, and (iii) coordinate communication with ADB and the other agencies concerned. There are four Implementing Agencies (IAs) for the Project: (i) BHTIP Management Commission will be responsible for implementation of the SBI component, (ii) Baiyin City Construction Bureau will be responsible for implementation of the Baiyin District URI component, (iii) The Pingchuan Project Management Office, on behalf of Pingchuan District Government will be responsible for implementation of Pingchuan District URI Component, and (iv) MDHC will be responsible for implementation of DH Component. 86. Organizations with various environmental management responsibilities will be involved in environmental issues during the implementation, as they have been during project preparation. These organizations include the PMO, the Gansu provincial EPB, BEPB, the BEMC, the IAs, and the two institutes that prepared the EIAs.

25

87. The PMO will name an environmental officer to coordinate environmental management. Each IA will form an environmental management unit (EMU) with a leader and an appropriate number of staff to coordinate environmental issues associated with each contract package, on behalf of the IA. Under the direction of BEPB, the PMO’s environmental officer and the EMUs will supervise the environmental management and implementation of mitigation measures by contractors during construction. During the operational stage, BEPB and the PMO will oversee the environmental management and implementation of mitigation measures by the IAs or the end users. The cost of the mitigation measures will be borne by the contractors during construction, and by the IAs or end users during the operational stage. 88. A complaint telephone number will be designated at the start of the implementation, according to the EIAs, and a grievance committee chaired by BEPB will be formed to address complaints from the public. The contractors will cooperate in responding to the grievances, and will take practical measures to solve the problems. 89. Since both the PMO and the IAs lack capacity in environmental management, that capacity must be strengthened, for the proper implementation of the EMP. The EMP has proposed a proper institutional structure and training requirements. B. Environmental Management

90. The EMP (Appendix 1) describes the potential social and environmental impact of each component on the air, noise, water, soil, and ecology in the project area, as well as the corresponding mitigation measures during construction and operation. The agencies that will implement or supervise the mitigation measures are listed in the EMP. The responsible parties should be clearly identified to clear up any confusion or discrepancy in implementation or accountability. 91. The major mitigation measures in the EMP will be included in all bidding documents and civil works contracts. Both contractors and the IAs or end users will be responsible for preparing their own comprehensive environmental management action plans (EMAPs) based on the EMP, during construction and operation. The PMO’s environmental officer and the construction supervision companies will review and approve the EMAPs, and ensure that the contractors and the IAs or end users comply with their provisions during construction and operation. C. Environmental Management System

92. The EMS framework was incorporated into the EMP, which is a systematic approach to dealing with all environmental aspects in the SBIZ, and a mechanism with which the SBIZ can control the impact of its activities, products, or services on the natural environment. The EMS is based on the ISO 14001 standard (Environmental Management Systems: Specification with Guidance for Use) and the actual situation in the SBIZ. The EMS framework contains (i) aspects of the organization structure for environment management; (ii) legal documents and regulations including tenants’ acceptance criteria and investigation of and penalties for pollution accidents; (iii) environmental monitoring and reporting procedure; (iv) an emergency response program for pollution and safety accidents including an early warning system; and (v) automated samplers and an online monitoring system for both air and water pollutants.

26

D. Environmental Monitoring

93. The plan for environmental monitoring has been similarly organized by component. Monitoring requirements, including the parameters to be monitored, the numbers and locations of monitoring points, and the monitoring frequency and duration, have been clearly defined. The monitoring will be undertaken by the BEMC, under the supervision of the provincial and municipal EPBs. The monitoring costs will be paid by contractors during construction and by the IAs or end users during operation. 94. The PMO’s environmental officer will collect environmental monitoring data and reports from IAs, BEMC, and construction supervision companies that are responsible for supervising the contractors’ implementation of mitigation measures. The data will be incorporated into project progress reports, which will be submitted to the EA and to ADB every 6 months during both periods of construction and operation. The environmental data and information will include:

(i) Tenants Selection criteria; (ii) Environmental considerations for tenants’ capacities of complying with the

requirements and conditions specified in the EMP; (iii) Monitoring data; (iv) Environmental mitigation measures taken; (v) Monitoring activities and physical monitoring data; (vi) Analysis of monitoring data against relevant standards; (vii) Any additional mitigation measures required; (viii) Environmental training conducted; (ix) Violations of environmental regulations; (x) Major events or issues that happened during the reporting period and follow-up

actions needed; and (xi) Complaints received from the public and how these were resolved.

95. Besides reviewing the semiannual project progress reports from the PMO, which include detailed data and information for environmental issues during the construction and operation of each component, ADB missions (including an environmental specialist), together with the PMO and the PPTA consultants, will inspect the project progress and implementation at the sites at least twice a year. Regarding environmental issues, the inspections will focus mainly on (i) monitoring data; (ii) the implementation status of the project performance indicators for the environment, environmental compliance, implementation of the EMP and EMS, and environmental institutional strengthening and training; and (iii) the environmental performance of contractors, loan implementation environmental management consultants, and the IAs. The performance of the contractors and the loan implementation environmental management consultants with respect to environmental protection and impact mitigation will be recorded and will be considered in the next bid evaluations. 96. The SBIZ should have enough resources to check on the implementation of the EMS, following a set of procedures. Once the internal EMS auditors have been selected and trained, the SBIZ should design and initiate an internal auditing process. The SBIZ will use the corrective and preventive action process to address any deficiencies identified in the audit report.

27

VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

A. Public Consultation

97. The bulletins for public consultations on the proposed Components were published on Baiyin Daily (the local newspaper) in November 2007. The bulletins briefly introduced the scope, location and content of each Project component, as well as environmental impacts and corresponding mitigation measures. The first round of public consultations regarding the environmental impact of the Project was held in Baiyin city from November 2006 to January 2007 (at least 10 days after the bulletins publishing). A public meeting was held as well to introduce the Project and listen to views of concerned citizens during the first round of public consultation. The second round, in April–May 2007, strictly followed the State Environmental Protection Administration’s (SEPA’s) Environmental Impact Assessment Technical Guidelines and ADB’s Environmental Assessment Guidelines (2003).

1. District Heating Component

98. During the first round of public consultations, multiple-choice questionnaires were distributed to a random sample of 100 affected persons (APs) from the subject areas; 96% of the questionnaires were completed and returned. The respondents included government employees (21.9%), workers (38.5%), students (3.1%), teachers (6.3%), drivers (7.3%), businessmen (7.3%), and the unemployed (5.2%). The surveys elicited attitudes toward the proposed components and their impact on the air, water, vegetation, soil, ecology, environment, public health, and economic development. Of the respondents, 80.2% gave positive responses regarding the DH component. The main issues bought out by the survey were the potential impact from noise and air pollution, and inflation of the heating supply charges. 99. The second round of public consultations was held in May 2007. Seventy-five questionnaires were distributed, and 74 were completed and returned. Males composed 62% and females 38% of the respondents. The age-group distribution was as follows: 18–30 years, 38%; 31–40 years, 26%; and over 40 years, 36%. All had positive responses regarding the proposed component. 100. Home interviews were conducted separately by the institute that prepared the EIA in the residential communities of Xichun, Yunjinyuan, and the railway station area. The opinions expressed during the interviews were as follows:

(i) The component will improve local air quality and living standards, and should be implemented as soon as possible.

(ii) The environmental management plans and the mitigation measures are supported and should be strictly adhered to.

(iii) There should be sufficient tree planting and landscaping at the district heating station and heat exchange stations.

(iv) Advanced and efficient equipment for desulfurization and dust elimination should be installed in the proposed boilers to control emissions.

28

2. URI Component

101. The first round of public consultations, by the institute that prepared the EIA, was held in early December 2006. Multiple-choice questionnaires were distributed to a random sample of 100 APs; 97% were completed and returned. The respondents included government employees, workers, students, businessmen, and the unemployed. Of the respondents, 86.6% had a positive attitude toward the component, 53.61% had negative attitudes regarding the existing transportation facilities, and only 26.8% were satisfied with the current environmental conditions. 102. The second round of public consultations was held on 21 May 2007, after the scope and the technical scheme of the proposed components had been finalized. Eighty-two questionnaires were distributed, and 80 were completed and returned. The respondents comprised government employees (38%), workers (34%), peasants (1%), and others (28%). The respondents conveyed a positive attitude toward the component.

3. SBI Component

103. The first round of public consultations was conducted from 30 November to 15 December 2006 by the institute that prepared the EIA. The survey elicited attitudes toward the proposed SBIZ and the existing BHTIP and their impact. Multiple-choice questionnaires were distributed to a random sample of 100 APs; 94% were completed and returned. The respondents included government employees, workers, farmers, doctors, and businessmen. They had generally positive responses regarding the SBIZ. 104. The second round of public consultations, on 5–15 January 2007, elicited attitudes toward the proposed SBIZ and its impact. Multiple-choice questionnaires were distributed to a random sample of 50 APs, and all 50 were completed and returned. The respondents included government employees (25%), workers (53%), teachers (10%), and others (12%, including minorities, which accounted for 6% of the total respondents). The respondents expressed support for the component. The opinions expressed by the public were:

(i) The component will promote economic development in Baiyin city and economic and industrial transformation, and will provide more job opportunities.

(ii) Mitigation measures to reduce the environmental impact should be strictly followed so that noise, dust, wastewater, and soil erosion can be minimized.

(iii) Road and utility construction, including the laying of pipelines and underground cables, should be properly coordinated to avoid repeat excavation.

(iv) Compensation should be paid for resettlement of graves, according to the appropriate policy.

(v) Public notices regarding the status of construction sites should be issued to let the public know what is being constructed, as well as whom they can contact and how, to file complaints.

105. The project design for all project components responded to the above concerns.

29

B. Information Disclosure

106. Environmental information on the Project will be disclosed as follows:

(i) The EIAs and the REIA are available for review in the Project Management Department of BEPB;

(ii) The SEIA will be available for review at www.adb.org 120 days before the Project is considered by the ADB Board.

(iii) Copies of the SEIA will be made available on request.

(iv) All environmental monitoring reports will be available at www.adb.org.

(v) A formal grievance response committee will be established. Complaints can be called in at this number: 0943-12369.

IX. CONCLUSIONS

107. The principal risk of the Project is failure to adhere strictly to environmental management practices and to supervise the induced impact associated with enterprises in the SBIZ. The lack of supervision and enforcement of environmental management could lead to pollution incidents, including, but not limited to, spills, gas leaks, fires, explosions, exposure risks, inhalation hazards, and the inadvertent or willful discharge of untreated industrial wastewater into the Yellow River tributaries. The risks can be adequately mitigated through the implementation and enforcement of the EMP and EMS and the mitigation measures, including the organizational and legal mechanisms specified in the SEIA and the EMP. The Project will set an example in developing a sustainable and environmentally friendly SBIZ. If such an SBIZ is successfully implemented, it could be replicated region-wide in the PRC. 108. The major potential adverse environmental impact of the proposed Project during construction and operation include the disturbance of soil and vegetation, water pollution from runoff, high-sediment-load runoff infiltrating rivers and tributaries, noise impact in residential areas, solid waste disposal, and industrial pollution and contamination. The EMP contains comprehensive environmental mitigation measures. The estimated costs of the environmental protection and mitigation measures account for 5.16% of the total project budget. 109. The DH component will significantly improve local air quality and increase the urban coverage of district heating services, resulting in less indoor coal burning for heating, reduced traffic hazards from coal transport vehicles in urban areas, and reduced water and soil pollution as a result of the reduction of particulate matter, mercury, and harmful compounds that contribute to the formation of acid rain. 110. The URI component will establish an efficient, safe, and sustainable urban transport system in the city. Both the regional economy and the residential community are expected to benefit from improved transport facilities and efficiency. The component will also contribute to a reduction in motor vehicle emissions and thus to an improvement in ambient air quality by increasing motor vehicle operating efficiency, as well as to a reduction in travel time. The component will significantly improve the urban infrastructure and enhance the ability of the area to attract outside investments for the city’s economic and industrial diversification and transformation.

30

111. The SBI component will significantly improve the city’s social and economic status by increasing local residents’ income, reducing unemployment, and implementing environmental protection measures that promote human health and well-being. The component will set an example in developing an environmentally friendly and sustainable IZ. The SBI will increase appreciation of the surrounding uncultivated wild lands and mountains, and will indirectly promote educational development, science and technology, research, and the industrial sector of the city.

112. Public consultations indicated that the majority of the AP have a positive attitude toward the Project and believe it will benefit the local economy, the quality of life, the environment, and especially the city’s economic and industrial diversification and transformation. Negative opinions about the Project were localized and focused on noise, air, water and soil pollution, industrial pollution, and soil erosion associated with the construction and operation of the Project. The environmental mitigation measures developed address these specific concerns.

Appendix 1 31

REFERENCES A. Documents and Reports

1. ADB. 2002. Environment Policy. Manila. 2. ADB. 2003. Environmental Assessment Guidelines. Manila. 3. ADB. 2003. Operations Manual. Section 20: Environmental Considerations in ADB

Operations. Manila. 4. Environmental Impact Assessment Reports for Baiyin District Heating Service

Component 5. Environmental Impact Assessment Reports for Baiyin Urban Road Improvement

Component 6. Environmental Impact Assessment Reports for Southern Baiyin Infrastructure

Component 7. Feasibility study reports for each component, 2006 8. Baiyin City Master Plan (2006–2020) 9. Gansu Yearbook 2006 10. Baiyin Yearbook 2006 B. Laws and Regulations

1. Environmental Impact Assessment Law of the PRC (1 September 2003) 2. Environmental Protection Law of the PRC (26 December 1989) 3. Water Pollution Prevention Law of the PRC (15 May 1996) 4. Environmental Protection Management Directories for Construction Projects (No. 9),

State Environmental Protection Bureau (SEPA) (1 January 2003) Environmental Protection Management Regulations for Construction Projects, issued

by the State Council of the PRC (28 November 1998) 5. Water Law of the PRC (1 October 2002) 6. Air Pollution Prevention Law of the PRC (1 September 2000) 7. Noise Pollution Control Law of the PRC (1 March 1999) 8 Solid Waste Pollution Control Law of the PRC (1 April 2005) 9. Water and Soil Conservation Law of the PRC (29 June 1991) 10. Culture Heritage Protection Law of the PRC (28 October 2002) 11. Notice to Strengthen the Environmental Impact Assessment and Management of

Construction Projects Financed by Loan from International Financial Organizations, jointly issued by SEPA, the State Planning Commission, the Ministry of Finance and the People’s Bank of China (21 June 1993)

12 Technical Guidelines for Environmental Impact Assessment (HJ/T2.1-93, SEPA) C. Standards

1 Standard of smoke and dust emission for boiler (GB/T 3841-1983) 2. Surface Water Quality Standard of the PRC (GB3838-2002) 3. Ambient Air Quality Standard of the PRC (GB3095-1996) 4. Standard of Environmental Noise of Urban Areas (GB3096-93) 5. Soil Quality Standard of the PRC (GB15618-1995) 6. Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants

(GB18918-2002) 7. Industry Design Sanitation Standard (TJ36-79). 9. Integrated Emission Standard for Air Pollutants (GB16297-1996)

32 Appendix 1

10. Integrated Wastewater Discharge Standard (GB8978-1996) 11. Municipal Sewer Discharge Standard (CJ3082-1999) 12. Noise Limit of Construction Site Boundary (GB12523-90) 13 ISO14000 Environmental Management Standard

Appendix 2 33

ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

1. The environmental management plan (EMP) was developed by the project preparatory technical assistance (PPTA) consultants in conjunction with the two environmental impact assessment (EIA) institutes on the basis of the EIAs, the regional environmental impact assessment (REIA), and other project documents. The EMP is an essential legal document to ensure the implementation of mitigation measures for protection of the environment in the project area. The EMP builds on the project documents and also contains an environmental management system (EMS), which may have a demonstration effect for environmental management beyond the scope of the Project. Three levels of environmental impact—direct, associated, and induced—were assessed in the EIAs. The EMP covers all phases of the Project, from design to commissioning and operation, and is aimed at ensuring the monitoring of environmental impact and the implementation of environmental mitigation measures. The EMP will be incorporated into the construction, operation, and management of the Project, and its project design and monitoring framework. 2. Environmental monitoring programs will be carried out and the results will be used to evaluate (i) the extent and severity of actual environmental impact against the predicted impact, (ii) the performance of the environmental protection measures or compliance with related rules and regulations, (iii) impact trends, and (iv) overall effectiveness of the EMP. 3. The environmental protection measures will (i) mitigate the environmental impact, (ii) achieve compliance with national environmental regulations, (iii) provide for compensation for lost environmental resources, and (iv) enhance environmental resources.

1. Summary of Potential Impacts

4. Table A2.1 summarizes the potential impact of the Project during construction and operation as identified by the EIAs, as well as the corresponding mitigation measures designed to minimize that impact.

2. Mitigation Measures

5. The mitigation measures will be incorporated into bidding documents (where appropriate), construction contracts, and operational management plans. Contractors and project implementing agencies (IAs), supervised by the Baiyin Environmental Protection Bureau (BEPB) and the Baiyin project management office (PMO), will implement these measures. The effectiveness of these measures will be evaluated on the basis of the results of the environmental monitoring to determine whether they should be continued or improved. Improvement measures must be confirmed through the stipulated environmental management procedures. 6. Resettlement plans have been prepared to ensure the proper resettlement of affected persons and avoid deterioration in their quality of life. The required actions are described in detail in the resettlement plans.

34 Appendix 2

Tabl

e A

2.1:

Pot

entia

l Im

pact

and

Miti

gatio

n M

easu

res

Su

bjec

t Po

tent

ial

Impa

ct

Miti

gatio

n M

easu

res

Impl

emen

ting

Age

ncy

Supe

rvis

ion

Age

ncy

Estim

ated

Cos

t CN

Y10,

000

Com

pone

nt

Tota

l C

NY1

0,00

0

DH

U

RI

SBI

A

. Des

ign

Stag

e

A

ir A

ir po

llutio

n fro

m

DH

sta

tion

Hig

h-pe

rform

ance

dus

t rem

oval

and

gas

de

sulfu

rizat

ion

equi

pmen

t in

DH

sta

tion,

an

d 80

–100

m ta

ll bo

iler s

tack

Des

ign

inst

itute

B

EP

B, P

MO

, D

H c

ompa

ny

In

clud

ed in

de

sign

co

ntra

ct

N

oise

N

oise

from

DH

st

atio

n Lo

w-n

oise

equ

ipm

ent a

nd s

ound

proo

f fa

cilit

ies

for m

ain

sour

ce o

f noi

se

Des

ign

inst

itute

B

EP

B, P

MO

, D

H c

ompa

ny

In

clud

ed in

de

sign

co

ntra

ct

So

il So

il er

osio

n fro

m

cons

truct

ion

activ

ities

Soil

eros

ion

prev

entio

n de

sign

s fo

r slo

pes,

re

tain

ing

wal

ls, b

ridge

s, b

anks

, pip

elin

e ro

utes

, and

SB

IZ

Des

ign

inst

itute

B

EP

B, P

MO

, S

BIZ

, P

PM

O, B

CB

In

clud

ed in

de

sign

co

ntra

ct

Soil

eros

ion

from

op

en g

roun

d La

ndsc

apin

g ar

eas

not l

ess

than

30%

of

tota

l are

a of

SB

IZ, a

nd a

roun

d 15

% o

f pr

opos

ed u

rban

road

s

Des

ign

inst

itute

B

EP

B, P

MO

, S

BIZ

, P

PM

O, B

CB

In

clud

ed in

de

sign

co

ntra

ct

B

. Con

stru

ctio

n St

age

Soil

Soil

eros

ion

(i)

Cov

erin

g or

see

ding

tem

pora

ry s

oil

stoc

kpile

s, w

ater

ing

cons

truct

ion

site

s an

d ha

ulin

g ro

ads;

(ii

) M

inim

izin

g ac

tive

exca

vatio

n ar

eas

durin

g tre

nchi

ng a

ctiv

ities

and

usi

ng

appr

opria

te c

ompa

ctio

n te

chni

ques

fo

r pip

e tre

nche

s;

(iii)

Inst

allin

g se

dim

ent f

ence

s or

se

dim

enta

tion

pond

s w

here

ap

prop

riate

to m

inim

ize

sedi

men

t ru

noff;

(iv

) P

rope

rly s

lopi

ng o

r rev

eget

atin

g di

stur

bed

surfa

ces,

suc

h as

bor

row

an

d fil

l are

as, c

ompa

cted

pip

elin

e tre

nche

s, a

nd c

ut b

anks

, to

min

imiz

e er

osio

n;

(v)

Lim

iting

con

stru

ctio

n an

d m

ater

ials

ha

ndlin

g in

per

iods

of r

ain

and

high

w

inds

to m

inim

ize

win

d er

osio

n;

(vi)

Mai

ntai

ning

slo

pe s

tabi

lity

at c

ut fa

ces

Con

tract

or

BE

PB

, B

EM

C,

PM

O, B

CB

, P

PM

O,

SB

IZ, D

H

com

pany

10

228.

3 25

0 In

clud

ed in

ci

vil

cont

ract

s

Appendix 2 35

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

durin

g ro

ad a

nd b

ridge

con

stru

ctio

n by

impl

emen

ting

eros

ion

prot

ectio

n m

easu

res

such

as

silt

barri

ers

and

sedi

men

tatio

n po

nds;

(v

ii) P

rohi

bitin

g ar

bitra

ry b

orro

win

g;

stoc

kpili

ng to

psoi

l and

cov

erin

g or

re

vege

tatin

g it

for f

utur

e re

habi

litat

ion

activ

ities

;

(viii)

Dev

elop

ing

an e

rosi

on p

rote

ctio

n pl

an

and

havi

ng it

app

rove

d be

fore

co

nstru

ctio

n;

(ix)

Def

inin

g ap

prov

ed b

orro

w p

it an

d sp

oils

pile

loca

tions

in c

ontra

ctor

s’

tend

er d

ocum

ents

; (x

) H

avin

g al

l bor

row

mat

eria

ls, s

olid

w

aste

s, a

nd te

mpo

rary

sew

age

disp

osal

site

s ap

prov

ed b

efor

ehan

d by

loca

l EP

Bs;

(x

i) S

tabi

lizin

g to

the

exte

nt fe

asib

le a

ll cu

t sl

opes

, em

bank

men

ts, a

nd o

ther

er

osio

n-pr

one

wor

king

are

as w

hile

w

ork

is o

ngoi

ng;

(x

ii) S

tabi

lizin

g al

l ear

th d

istu

rban

ce a

reas

w

ithin

30

days

afte

r ear

thw

ork

has

ceas

ed a

t the

site

.

So

il co

ntam

inat

ion

(i)

Pro

perly

sto

ring

petro

leum

pro

duct

s,

haza

rdou

s m

ater

ials

, and

was

tes

on

impe

rmea

ble

surfa

ces

in s

ecur

e,

cove

red

area

s to

avo

id s

oil

cont

amin

atio

n;

(ii)

Tran

sfer

ring

all c

onst

ruct

ion

was

tes

from

site

s to

app

rove

d w

aste

dis

posa

l si

tes;

(ii

i) Pr

ovid

ing

spill

clea

nup

mea

sure

s an

d eq

uipm

ent a

t eac

h co

nstru

ctio

n si

te,

and

requ

iring

con

tract

ors

to c

ondu

ct

train

ing

in e

mer

genc

y sp

ill re

spon

se

proc

edur

es.

Impa

ct o

n ac

quire

d la

nd

(i)

Sel

ectin

g, w

here

pos

sibl

e, s

ites

(per

man

ent a

nd te

mpo

rary

) tha

t are

no

t on

agric

ultu

ral l

and;

Land

Ac

quis

ition

and

R

eset

tlem

ent

PM

O, I

As,

B

LRB

Incl

uded

in

rese

ttlem

ent

budg

et

36 Appendix 2

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

(ii)

Whe

re la

nd is

tem

pora

rily

occu

pied

, co

nduc

ting

appr

opria

te re

habi

litat

ion

afte

r con

stru

ctio

n;

(iii)

Dur

ing

exca

vatio

n of

pip

elin

e tre

nche

s, s

tock

pilin

g, s

torin

g, a

nd

repl

acin

g to

psoi

l afte

r lay

ing

pipe

lines

Offi

ce,

cont

ract

or

W

ater

In

appr

opria

te

was

tew

ater

di

spos

al

(i)

Inst

allin

g ap

prop

riate

sep

tic d

ispo

sal

syst

ems

at c

onst

ruct

ion

cam

ps, a

long

w

ith p

rope

r mai

nten

ance

pro

toco

ls;

(ii

) Pr

ovid

ing

wat

er c

olle

ctio

n ba

sins

and

se

dim

ent t

raps

at a

ll co

nstru

ctio

n dr

aina

ge a

nd c

onst

ruct

ion

equi

pmen

t w

ash-

dow

n ar

eas.

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

2.0

40

200

Incl

uded

in

civi

l co

ntra

cts

Silt

atio

n in

to

wat

er b

odie

s In

clud

ing

eros

ion

cont

rol m

easu

res

and

appr

opria

te e

ngin

eerin

g de

sign

in m

itiga

tion

mea

sure

s to

min

imiz

e se

dim

ent r

unof

f du

ring

cons

truct

ion

Wat

er

cont

amin

atio

n by

ha

zard

ous

was

tes

and

mat

eria

ls

(i)

Sto

ring

all t

oxic

, haz

ardo

us, o

r har

mfu

l co

nstru

ctio

n m

ater

ials

incl

udin

g pe

trole

um p

rodu

cts

on a

n im

perm

eabl

e su

rface

and

man

agin

g th

em in

suc

h a

way

as

to p

reve

nt

spill

age

or le

akag

e to

sur

face

wat

er o

r gr

ound

wat

er s

yste

ms;

(ii

) H

andl

ing

solid

was

te d

ispo

sal i

n co

nsul

tatio

n w

ith lo

cal a

utho

ritie

s to

pr

otec

t sur

face

wat

er a

nd g

roun

dwat

er

reso

urce

s.

A

ir G

ener

atio

n of

du

st fr

om

cons

truct

ion

(i)

Spr

ayin

g w

ith w

ater

con

stru

ctio

n si

tes

and

mat

eria

ls h

andl

ing

rout

es w

here

fu

gitiv

e du

st is

bei

ng g

ener

ated

; (ii

) P

ayin

g pa

rticu

lar a

ttent

ion

to d

ust

supp

ress

ion

near

sen

sitiv

e re

cept

ors

such

as

scho

ols,

hos

pita

ls, o

r re

side

ntia

l are

as;

(ii

i) St

orin

g m

ater

ials

in a

ppro

pria

te

plac

es a

nd c

over

ing,

see

ding

, or

spra

ying

them

to m

inim

ize

fugi

tive

dust

;

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

1.0

80

30

Incl

uded

in

civi

l co

ntra

cts

Appendix 2 37

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

(iv)

Cov

erin

g m

ater

ials

dur

ing

trans

porta

tion

to a

void

dus

t ge

nera

tion.

E

mis

sion

from

co

nstru

ctio

n m

achi

nery

(i)

Siti

ng a

spha

lt pl

ants

and

mix

ers

as fa

r aw

ay a

s po

ssib

le (a

t lea

st 2

00 m

do

wnw

ind)

from

the

near

est

resi

dent

ial a

reas

and

oth

er s

ensi

tive

rece

ptor

s;

(ii)

Prop

erly

mai

ntai

ning

veh

icle

s an

d co

nstru

ctio

n m

achi

nery

and

co

mpl

ying

with

em

issi

on s

tand

ards

.

N

oise

N

oise

from

co

nstru

ctio

n eq

uipm

ent

(i)

Usi

ng lo

w-n

oise

equ

ipm

ent;

mai

ntai

ning

and

ope

ratin

g m

achi

nery

pr

oper

ly;

(ii

) Pl

acin

g te

mpo

rary

hoa

rdin

gs o

r noi

se

barri

ers

arou

nd n

oise

sou

rces

dur

ing

cons

truct

ion

if ne

cess

ary;

(ii

i) Pr

ohib

iting

con

stru

ctio

n be

twee

n 20

:00

and

06:0

0 th

e ne

xt d

ay in

site

s ne

ar re

side

ntia

l are

as.

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

3.0

10

In

clud

ed in

ci

vil

cont

ract

s

S

olid

was

tes

and

haza

rdou

s m

ater

ials

Soil

and

wat

er

cont

amin

atio

n fro

m

inap

prop

riate

st

orag

e an

d di

spos

al

(i)

Min

imiz

ing

the

stor

age

of p

etro

leum

pr

oduc

ts, a

s w

ell a

s ha

zard

ous,

re

activ

e, ig

nita

ble,

and

flam

mab

le

mat

eria

ls, o

n-si

te, a

nd c

ondu

ctin

g re

gula

r ins

pect

ions

; (ii

) R

equi

ring

cont

ract

ors

to h

ave

an

agre

emen

t with

a s

pill

resp

onse

or

gani

zatio

n or

to tr

ain

empl

oyee

s to

re

spon

d sa

fely

to e

mer

genc

ies

invo

lvin

g ha

zard

ous

mat

eria

ls o

r pe

trole

um s

pills

(thi

s re

quire

men

t will

be

incl

uded

in a

ll bi

ddin

g do

cum

ents

an

d co

ntra

cts

for c

ivil

wor

ks);

(iii)

App

ropr

iate

ly s

torin

g pe

trole

um

prod

ucts

and

haz

ardo

us m

ater

ials

an

d w

aste

s in

a s

ecur

e, c

over

ed

plac

e;

(iv)

Sto

ring

haza

rdou

s w

aste

sep

arat

ely

from

non

haza

rdou

s w

aste

;

(v)

Hiri

ng a

n ap

prov

ed c

ontra

ctor

with

the

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

1.0

10

In

clud

ed in

ci

vil

cont

ract

s

38 Appendix 2

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

prop

er c

rede

ntia

ls to

tran

sfer

all

was

tes

(haz

ardo

us a

nd

nonh

azar

dous

) fro

m s

ites

to a

ppro

ved

was

te d

ispo

sal s

ites,

follo

win

g th

e ap

prop

riate

sta

ndar

ds;

(vi)

Pro

hibi

ting

on-s

ite la

ndfil

ls a

t co

nstru

ctio

n si

tes;

(v

ii) R

equi

ring

the

cont

ract

or to

pro

perly

re

mov

e si

gnifi

cant

resi

dual

mat

eria

ls

rem

aini

ng o

n th

e gr

ound

afte

r co

nstru

ctio

n an

d to

dis

pose

of t

he

mat

eria

ls a

nd c

onta

min

ated

soi

ls, a

nd

pavi

ng o

r veg

etat

ing

the

area

if th

ere

are

plan

s to

do

so, a

s so

on a

s th

e m

ater

ials

are

rem

oved

, to

stab

ilize

the

soil;

(v

iii) P

rom

ptly

rem

ovin

g co

nstru

ctio

n w

aste

s fro

m th

e si

tes;

(ix

) P

rohi

bitin

g bu

rnin

g of

was

te.

Fl

ora

and

faun

a Lo

ss o

f or

dam

age

to

vege

tatio

n

(i)

Rem

ovin

g tre

es o

r shr

ubs

only

as

a la

st re

sort

if th

ey im

ping

e di

rect

ly o

n th

e pe

rman

ent w

orks

or a

ppro

ved

nece

ssar

y te

mpo

rary

wor

ks;

(ii)

Afte

r pip

e la

ying

, pro

perly

com

pact

ing

and

reve

geta

ting

the

trenc

hes;

(ii

i) P

rote

ctin

g tre

es a

nd g

rass

land

s du

ring

road

and

brid

ge c

onst

ruct

ion,

an

d if

a tre

e ha

s to

be

rem

oved

or a

n ar

ea o

f gra

ssla

nd d

istu

rbed

, re

plan

ting

trees

and

reve

geta

ting

the

area

;

(iv)

Plan

ting

and

repl

antin

g al

ong

the

road

a

mix

of l

ocal

veg

etat

ion

spec

ies

sim

ilar t

o th

e m

ix a

nd c

ompo

sitio

n fo

und

loca

lly, a

nd c

onsu

lting

with

the

loca

l for

est a

utho

rity

to c

onfir

m

appr

opria

te s

peci

es a

long

with

pla

nt

dens

ity a

nd s

paci

ng is

sues

for b

est

resu

lts.

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

1,

209.

07

382

Incl

uded

in

civi

l co

ntra

cts

Impa

ct o

n fa

una

from

rem

oval

of

Taki

ng s

peci

al p

reca

utio

ns to

pro

tect

flor

a an

d fa

una

durin

g an

d af

ter c

onst

ruct

ion.

Appendix 2 39

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

orig

inal

ve

geta

tion

H

isto

rical

, cu

ltura

l, an

d ar

chae

olog

ical

Cul

tura

l site

en

coun

tere

d du

ring

cons

truct

ion

(i)

Imm

edia

tely

sus

pend

ing

cons

truct

ion

activ

ities

if a

ny a

rcha

eolo

gica

l or o

ther

cu

ltura

l rel

ics

are

foun

d;

(ii)

Prom

ptly

not

ifyin

g th

e re

leva

nt c

ultu

ral

auth

ority

and

the

PMO

whe

n an

ar

chae

olog

ical

spo

t is

foun

d;

(iii)

Res

umin

g co

nstru

ctio

n on

ly a

fter a

th

orou

gh in

vest

igat

ion

and

with

pe

rmis

sion

from

the

appr

opria

te

auth

ority

.

Con

tract

or

Rel

ics

Bur

eau,

P

MO

, IA

s

S

ocio

econ

omic

Tr

affic

co

nges

tion

(i)

Req

uirin

g co

ntra

ctor

s to

con

side

r im

pact

on

traffi

c in

con

stru

ctio

n sc

hedu

ling;

bef

ore

cons

truct

ion

a tra

ffic

cont

rol a

nd o

pera

tion

plan

will

be

prep

ared

and

will

be

appr

oved

by

loca

l tra

ffic

man

agem

ent a

dmin

istra

tion;

the

plan

will

pro

vide

for d

iver

ting

or

sche

dulin

g co

nstru

ctio

n tra

ffic

to a

void

m

orni

ng a

nd a

ftern

oon

peak

traf

fic

hour

s, re

gula

ting

traffi

c at

road

cr

ossi

ngs,

bui

ldin

g in

terim

road

s,

sele

ctin

g tra

nspo

rt ro

utes

to re

duce

di

stur

banc

e to

regu

lar t

raffi

c;

(ii)

Rei

nsta

ting

the

road

s an

d op

enin

g th

em to

traf

fic a

s so

on a

s th

e co

nstru

ctio

n is

com

plet

ed.

Con

tract

or

BE

PB

, B

EM

C,

PM

O, I

As

In

clud

ed in

ci

vil

cont

ract

s

Inte

rrupt

ion

of

mun

icip

al

serv

ices

(i)

Pla

nnin

g co

nstru

ctio

n ac

tiviti

es in

suc

h a

way

as

to m

inim

ize

dist

urba

nces

to

utilit

y se

rvic

es;

(ii

) Pl

anni

ng

tem

pora

ry

land

oc

cupa

tion

wel

l ahe

ad o

f con

stru

ctio

n to

min

imiz

e th

e im

pact

;

(iii)

Rei

nsta

ting

land

to

its

or

igin

al

cond

ition

afte

r con

stru

ctio

n;

(iv)

Con

duct

ing

thre

e-di

men

sion

al

dete

ctio

n of

un

derg

roun

d fa

cilit

ies

befo

re c

onst

ruct

ion;

(v

) H

iring

a s

ubsu

rface

util

ity e

ngin

eerin

g

40 Appendix 2

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

spec

ialis

t for

con

sulta

ncy

and

advi

ce

to d

esig

n in

stitu

tes

and

cont

ract

ors,

to

avoi

d po

tent

ial a

ccid

ents

, exc

essi

ve

cost

s, a

nd d

elay

s du

ring

cons

truct

ion.

Im

pact

on

publ

ic

safe

ty

Impl

emen

ting

safe

ty m

easu

res

at

cons

truct

ion

site

s to

pro

tect

the

publ

ic,

incl

udin

g ha

zard

and

war

ning

sig

ns to

ale

rt th

e pu

blic

of p

oten

tial s

afet

y ha

zard

s an

d ba

rrier

s to

pre

vent

pub

lic a

cces

s to

co

nstru

ctio

n si

tes.

C

. Ope

ratio

n St

age

DH

com

pone

nt

(i)

Air

pollu

tion

from

boi

ler

stac

k;

(ii)

Noi

se

from

D

H s

tatio

n;

(iii)

Indu

stria

l an

d do

mes

tic

was

tew

ater

an

d so

lid

was

tes

from

D

H s

tatio

n an

d he

at

exch

ange

st

atio

ns

(i)

Bui

ldin

g a

boile

r sta

ck 8

0 m

hig

h to

di

sper

se a

nd m

inim

ize

the

dire

ct

impa

ct o

f em

issi

ons

on a

djac

ent a

reas

; (ii

) U

sing

a c

ombi

ned

dust

pre

cipi

tatio

n pr

oces

s w

ith a

poc

ked-

ston

e w

ater

-film

du

st c

olle

ctor

and

a d

ry-d

ust

sepa

rato

r;

(iii)

Usi

ng fl

ue g

as d

esul

furiz

atio

n eq

uipm

ent t

hat i

s at

leas

t 75%

ef

ficie

nt;

(iv

) B

urni

ng lo

w-s

ulfu

r (0.

3%) c

oal;

(v

) C

ondu

ctin

g du

st s

uppr

essi

on a

ctiv

ities

, su

ch a

s sp

rayi

ng w

ater

on

coal

and

fly

ash

and

cove

ring

coal

sto

ckya

rds;

m

inim

izin

g th

e di

sper

sion

of a

irbor

ne

dust

dur

ing

coal

and

fly-

ash

offlo

adin

g,

stoc

kpili

ng, a

nd h

andl

ing

at th

e bo

iler

stat

ion;

(v

i) Se

lling

fly

ash

to lo

cal c

onst

ruct

ion

mat

eria

l fac

torie

s as

raw

mat

eria

l and

fo

r roa

d-ba

se g

rave

l;

(vii)

Bui

ldin

g fly

-ash

sto

ckya

rds

and

coal

bu

nker

s as

sem

i-clo

sed

faci

litie

s;

(viii)

Rec

yclin

g w

aste

wat

er fr

om w

et fl

y-as

h di

spos

al a

nd c

oal s

pray

ing

to c

onse

rve

wat

er a

nd re

duce

dis

posa

l re

quire

men

t; (ix

) C

onst

ruct

ing

or im

prov

ing

soun

dpro

of

cove

rs a

nd w

alls

in th

e di

stric

t hea

ting

DH

com

pany

B

EP

B,

BE

MC

, PM

O

293.

4

In

clud

ed in

op

erat

ion

budg

et

Appendix 2 41

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

stat

ion

to re

duce

noi

se;

(x

) E

nsur

ing

that

air

emis

sion

s fro

m th

e bo

ilers

com

ply

stric

tly w

ith E

mis

sion

S

tand

ards

for C

oal-f

ired,

Oil-

fired

and

G

as-fi

red

Boi

lers

(GB

1327

1-20

01);

inst

allin

g an

onl

ine

auto

mat

ic m

onito

r on

sm

okes

tack

of h

eatin

g su

pply

st

atio

n to

mon

itor S

O2 a

nd fl

ue d

ust.

U

RI

com

pone

nt

(i)

Vehi

cle

emis

sion

an

d tra

ffic

nois

e;

(ii)

Wat

er

pollu

tion

from

st

orm

-wat

er

runo

ff an

d sp

ills fr

om

traffi

c ac

cide

nts

(i)

Stri

ct e

nfor

cem

ent o

f an

insp

ectio

n an

d m

aint

enan

ce p

rogr

am fo

r all

exis

ting

vehi

cles

in th

e ci

ty in

clud

ing

annu

al e

mis

sion

che

cks

and

road

side

te

stin

g. E

mis

sion

con

trol d

evic

es a

re

requ

ired

to b

e re

paire

d, u

pdat

ed, a

nd

inst

alle

d if

the

vehi

cle

cann

ot m

eet t

he

requ

ired

stan

dard

s;

(ii)

Emph

asiz

ing

the

redu

ctio

n of

veh

icle

em

issi

on p

ollu

tant

s by

usi

ng a

co

mbi

natio

n of

cle

aner

fuel

s, im

prov

ed

vehi

cle

emis

sion

con

trols

, tra

ffic

dem

and

man

agem

ent,

and

clea

n-fu

el

publ

ic tr

ansp

orta

tion;

(ii

i) In

clud

ing

mot

or v

ehic

le e

mis

sion

co

ntro

l pro

visi

ons

in th

e bi

ddin

g do

cum

ents

for t

he s

elec

tion

of a

ll ne

w

gas

stat

ions

, bus

man

ufac

ture

rs, a

nd

publ

ic b

us s

ervi

ce c

ompa

nies

;

(iv)

Enf

orci

ng s

trict

er e

mis

sion

sta

ndar

ds;

(v

) R

outin

ely

colle

ctin

g an

d pr

oper

ly

disp

osin

g of

litte

r and

deb

ris fr

om

side

wal

ks, d

rivew

ays,

and

par

king

lots

, es

peci

ally

nea

r cat

ch b

asin

s an

d st

orm

dr

ains

;

(vi)

Rep

ortin

g sp

ills

to th

e re

leva

nt

auth

oriti

es fo

r pro

per a

ctio

n an

d re

spon

se, t

o pr

even

t env

ironm

enta

l ef

fect

s fro

m p

oten

tially

har

mfu

l su

bsta

nces

;

(vii)

Insp

ectin

g er

osio

n pr

otec

tion

mea

sure

s, in

clud

ing

seed

ed o

r st

abiliz

ed s

lope

s, a

t lea

st tw

ice

in th

e fir

st y

ear o

f the

road

s’ o

pera

tion

to

BM

CB

, BE

MC

, B

TMB

B

EP

B,

BE

MC

, PM

O

55

Incl

uded

in

oper

atio

n bu

dget

42 Appendix 2

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

ensu

re th

at th

ey a

re m

aint

aine

d pr

oper

ly a

nd fu

nctio

ning

as

desi

gned

;

(viii)

Pro

perly

mai

ntai

ning

new

ly p

lant

ed

trees

alo

ng ro

ads,

esp

ecia

lly d

urin

g th

e fir

st 2

yea

rs o

f the

pro

ject

op

erat

ion;

(ix

) D

ecom

mis

sion

ing

obso

lete

mot

or

vehi

cles

to c

ompl

y w

ith c

urre

nt

regu

latio

ns a

nd w

ith e

nviro

nmen

tal

cons

ider

atio

ns in

min

d;

(x)

Req

uirin

g th

e lo

cal E

PB

to c

ondu

ct

rout

ine

and

addi

tiona

l mon

itorin

g of

am

bien

t air

qual

ity in

the

prop

osed

pr

ojec

t are

as, p

artic

ular

ly a

t sen

sitiv

e re

cept

ors,

suc

h as

sch

ools

, hos

pita

ls,

and

resi

dent

ial s

ites;

(x

i) Pr

ovid

ing

train

ing

at th

e st

art o

f the

ro

ads’

ope

ratio

n to

stre

ngth

en th

e ca

paci

ty o

f the

loca

l EPB

and

road

m

anag

emen

t and

mai

nten

ance

en

titie

s.

S

BI

com

pone

nt

(i)

Sim

ilar t

o U

RI i

mpa

ct;

(ii

) So

il er

osio

n an

d ec

olog

y ch

ange

s fro

m la

nd

leve

ling

(i)

Sam

e m

itiga

tion

mea

sure

s as

for U

RI

com

pone

nt;

(ii)

Prop

erly

mai

ntai

ning

the

plan

ted

trees

an

d gr

asse

s; a

nd re

vege

tatin

g an

y ex

pose

d la

nd to

enh

ance

the

ecol

ogy

and

to p

rote

ct s

oil f

rom

wat

er a

nd w

ind

eros

ion.

SB

IZ

BE

PB

, B

EM

C, P

MO

10

0 In

clud

ed in

op

erat

ion

budg

et

S

BIZ

(i)

P

ollu

tion

from

spi

lls

and

leak

ages

of

harm

ful

liqui

ds a

nd

gase

s, a

nd

expl

osio

ns;

(ii

) U

ntre

ated

in

dust

rial

was

tew

ater

s di

scha

rge

into

the

(i)

Req

uirin

g th

e S

BIZ

to d

evel

op a

nd

enfo

rce

a co

mpr

ehen

sive

and

pr

actic

able

set

of a

dmin

istra

tive

mea

sure

s an

d re

gula

tions

for

stre

ngth

enin

g th

e ov

eral

l en

viro

nmen

tal m

anag

emen

t and

po

llutio

n co

ntro

l of t

enan

ts, i

n pa

rticu

lar c

hem

ical

fact

orie

s;

(ii)

Req

uirin

g th

e S

BIZ

to e

stab

lish

an

envi

ronm

ent m

anag

emen

t com

mitt

ee,

unde

r a v

ice

dire

ctor

of t

he e

xecu

tive

bure

au o

f the

SB

IZ w

ith c

omm

ittee

m

embe

rs fr

om B

EP

B, f

or o

vera

ll

SB

IZ, B

EM

C

BE

PB

, B

EM

C, P

MO

Incl

uded

in

SB

IZ’s

op

erat

ion

budg

et

Appendix 2 43

Subj

ect

Pote

ntia

l Im

pact

M

itiga

tion

Mea

sure

s Im

plem

entin

g A

genc

y Su

perv

isio

n A

genc

y Es

timat

ed C

ost C

NY1

0,00

0 C

ompo

nent

To

tal

CN

Y10,

000

D

H

UR

I SB

I

Yel

low

R

iver

. m

anag

emen

t and

sup

ervi

sion

of

indu

stria

l pol

lutio

n co

ntro

l;

(iii)

Req

uirin

g th

e S

BIZ

to s

trict

ly a

dher

e to

th

e gu

idel

ines

set

forth

in th

e E

IA

polic

y fo

r any

ent

erpr

ise

that

app

lies

for e

ntra

nce

into

the

SB

IZ; a

n ap

plic

ant

that

doe

s no

t agr

ee to

or a

bide

by

the

EIA

requ

irem

ents

will

not

be

allo

wed

to

loca

te in

the

SB

IZ;

(iv

) R

equi

ring

the

SB

IZ to

enc

oura

ge

ente

rpris

es in

the

zone

to c

ompl

y w

ith

the

ISO

140

00 E

nviro

nmen

tal

Man

agem

ent S

tand

ard

with

in a

n al

lotte

d tim

e fra

me

(2 y

ears

);

(v)

Req

uirin

g th

e S

BIZ

to e

stab

lish

an

emer

genc

y re

spon

se p

rogr

am

com

plet

e w

ith a

team

of f

irst

resp

onde

rs fo

r the

trea

tmen

t of

indu

stria

l pol

lutio

n ac

cide

nts;

(v

i) R

equi

ring

the

SB

IZ to

est

ablis

h an

in

dust

rial s

olid

was

te d

ispo

sal p

rogr

am

and

asso

ciat

ed fa

cilit

ies;

(v

ii) R

equi

ring

the

SB

IZ to

stri

ctly

sup

ervi

se

and

insp

ect t

he e

nviro

nmen

tal

man

agem

ent o

f eac

h en

terp

rise,

to

verif

y th

at e

nviro

nmen

tal m

itiga

tion

mea

sure

s ha

ve b

een

effe

ctiv

ely

impl

emen

ted,

and

to in

stal

l aut

omat

ic

mon

itorin

g in

stru

men

ts w

ith a

larm

fu

nctio

n at

was

tew

ater

dis

char

ge

outle

ts in

the

SB

IZ.

Tota

l:

31

0.40

1,

632.

37

580

2,52

2.77

B

CB

= B

aiyi

n M

unic

ipal

Con

stru

ctio

n B

urea

u , B

EM

C =

Bai

yin

Env

ironm

ent M

onito

ring

Cen

ter,

BE

PB

= B

aiyi

n E

nviro

nmen

tal P

rote

ctio

n Bu

reau

, BLR

A =

Baiy

in L

and

and

Res

ourc

es B

urea

u, B

MC

B =

Bai

yin

Mun

icip

al C

onst

ruct

ion

Bur

eau,

BTM

B =

Baiy

in T

rans

port

Man

agem

ent

Brig

ade,

DH

= d

istri

ct h

eatin

g, D

H c

ompa

ny =

Bai

yin

Min

yue

Hea

ting

Sup

ply

Cor

pora

tion,

EIA

= e

nviro

nmen

tal i

mpa

ct a

sses

smen

t, E

PB

= e

nviro

nmen

tal p

rote

ctio

n bu

reau

, IA

= im

plem

entin

g ag

ency

, m =

met

er, P

MO

= B

aiyi

n pr

ojec

t m

anag

emen

t of

fice,

PP

MO

= P

ingc

huan

pro

ject

man

agem

ent

offic

e, S

BI

= so

uthe

rn B

aiyi

n in

frast

ruct

ure,

SB

IZ=

sout

hern

Bai

yin

indu

stria

l zo

ne,

UR

I =

urba

n ro

ad

impr

ovem

ent.

S

ourc

e: E

nviro

nmen

tal i

mpa

cts

asse

ssm

ents

and

PR

C e

nviro

nmen

tal m

anag

emen

t pla

ns.

44 Appendix 2

B. Environmental Monitoring

7. The monitoring program for the Project will focus on the environment in the project area. A detailed environmental monitoring program is in Table A2.2. It considers the scope of monitoring, monitoring parameters and frequency, data processing, and quality control requirements. Compliance monitoring will follow the methodology provided in the National Standard Methods for Monitoring Pollutants. Other associated standards are the National Environmental Quality Standards and the Pollutant Discharge and Emission Standards. 8. Internal Monitoring and Inspection. During construction, the IAs, supervised by the Baiyin PMO and BEPB will, recruit construction supervision companies for construction quality supervision and internal environmental monitoring and inspections, to ensure that environmental mitigation measures are properly implemented. Inspections will mainly cover construction activities, but will also review the affected environment. The inspection will be done weekly. Inspection activities and observations will be well documented, and the contractors and IAs will be informed of the outcomes and expected to take immediate action to rectify any issues. 9. During the project operation, IAs or end users will be responsible for internal monitoring and reporting to the BEPB. 10. The Baiyin Environment Monitoring Center (BEMC), under the supervision of BEPB, will be responsible for implementing the compliance monitoring, and for undertaking regular and random environmental monitoring and inspection activities before, during, and after construction, as well as in emergencies or in response to registered complaints. BEMC will also monitor the water quality of discharges at outlets of the southern Baiyin industrial zone (SBIZ) and the wastewater treatment plant to ensure compliance with national standards. Corrective actions must be taken if discharges exceed the limits. 11. Early Warning Monitoring System for the SBIZ. The development of a new air and water quality monitoring and early warning system at the wastewater outlet and perimeter of the SBIZ will protect the local community from potentially harmful pollutants. An early warning system can detect inhalation hazards and water contamination and set off a chain of events including an emergency response to contain the pollutants and an investigation to determine the source of the pollutants and the responsible party. 12. The monitoring parameter generally include sulphur dioxide, flue gas, Ph, total organic carbon, chemical oxygen demand, NH3, etc., the additional parameters may be added based on the pollutants from the factories in SBIZ after tenants are determined. The air and water quality monitoring equipment should be easy to operate and maintain and capable of producing data that operators and staff can readily interpret. The development of this system should facilitate the reliable operation of the equipment, the production of good-quality data, and the quick recognition of changes in air and water quality that would be of concern to the public. The development of an early warning detection system should focus on the following: (i) potential contaminants including their sources and concerns; (ii) instrument identification, procurement, and installation; (iii) operator training; and (iv) support and maintenance. 13. Environmental Acceptance Monitoring and Audit of Completion of Individual Construction. Within 3 months after construction completion, or no later than 1 year with permission from environmental authorities, environmental acceptance monitoring and audit reports on the completion of the component will be (i) prepared by a qualified environmental

Appendix 2 45

institute in accordance with the People’s Republic of China (PRC’s) regulation on Environmental Check-and-Acceptance of Project Completion (State Environmental Protection Administration [SEPA], 2001);1 (ii) reviewed and approved by the environmental authorities that approved the EIA, and (iii) reported to Asian Development Bank (ADB). 14. The environmental monitoring, including the environmental benefit monitoring, will be incorporated into the performance indicators for the Project. The PMOs, with assistance from the IAs, will analyze and consolidate the data. The performance indicators will be flexible enough to allow remedial actions regarding project design, schedules, activities, and developmental impact. At the start of the Project, the PMO, IAs, and loan implementation consultant will develop comprehensive project performance management system procedures for the systematic generation of data on the inputs and outputs of the project components. The PMO and the IAs will refine the project performance management framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness. 15. The monitoring results will be used to evaluate (i) the extent and severity of environmental impact compared with the projected impact, (ii) the performance of the environmental protection measures or compliance with related rules and regulations, (iii) impact trends, and (iv) overall effectiveness of the Project’s EMP. The effectiveness of the mitigation measures and monitoring plans will be evaluated through a feedback reporting system. If necessary, measures required in the EMPs will be modified. BEPB and the PMO will play critical roles in this feedback and adjustment mechanism, as shown in the figure at the end of Appendix 2. 16. The environmental monitoring costs (Table A2.2) will be included in the project contracts and counterpart budgets. Before implementing the monitoring plan, the responsible agencies will present a further detailed breakdown of the estimated budget. The costs can be adjusted during project implementation to suit the actual requirements.

1 SEPA. 2001. Regulations on Environmental Protection Verification for the Completed Construction Projects, Decree

No. 13. Beijing.

46 Appendix 2

Tabl

e A

2.2:

Env

ironm

enta

l Mon

itorin

g Pr

ogra

m

Type

of

Pollu

tion

Para

met

er

Loca

tion

Tim

e Fr

eque

ncy

Impl

emen

ting

Age

ncy

Supe

rvis

ing

Age

ncy

Estim

ated

C

ost

(CN

Y10,

000)

A．

DH

– C

onst

ruct

ion

Stag

e A

ir D

ust

Nea

r con

stru

ctio

n si

tes

and

sens

itive

are

as (r

esid

ence

s,

scho

ols,

kin

derg

arte

ns, h

ospi

tals

et

c.)

Tw

ice

a m

onth

C

ontra

ctor

s/

BE

MC

B

EP

B, D

H

com

pany

, PM

O

3

Noi

se

L eq

Bou

ndar

ies

of c

onst

ruct

ion

site

s

Twic

e a

quar

ter

Con

tract

ors/

B

EM

C

BE

PB

, DH

co

mpa

ny, P

MO

1

B. D

H –

Ope

ratio

n St

age

Air

NO

2, S

O2,

TSP,

PM

10

Inle

t and

out

let o

f dus

t rem

oval

eq

uipm

ent,

and

near

sen

sitiv

e ar

eas

(resi

denc

es, s

choo

ls,

kind

erga

rtens

, hos

pita

ls, e

tc.)

2 da

ys (t

wic

e a

day)

Tw

ice

a ye

ar

DH

com

pany

, B

EM

C

BE

PB

, PM

O

11 y

early

Noi

se

L eq

Alon

g bo

unda

ries

of D

H s

tatio

n an

d he

at e

xcha

nge

stat

ions

2 da

ys (t

wic

e a

day)

O

nce

a qu

arte

r D

H c

ompa

ny,

BE

MC

B

EP

B, P

MO

2

year

ly

Sur

face

w

ater

pH

, SS

, BO

D- 5

, CO

D, C

a+2,

Mg+2

, sul

fate

, pho

spha

te, C

I- O

utle

t of w

aste

wat

er d

isch

arge

in

DH

sta

tion

and

heat

exc

hang

e st

atio

ns

Tw

ice

a ye

ar

DH

com

pany

, B

EM

C

BE

PB

, PM

O

7 ye

arly

A. U

RI –

Con

stru

ctio

n St

age

Air

Asp

halt

smok

e, N

Ox,

TS

P,

PM

10

Nea

r con

stru

ctio

n si

tes

and

sens

itive

are

as (r

esid

ence

s,

scho

ols,

kin

derg

arte

ns,

hosp

itals

, etc

.)

3 da

ys

Twic

e a

year

C

ontra

ctor

s/

BE

MC

B

EP

B, P

MO

, B

MC

B

15

Noi

se

L eq

Nea

r con

stru

ctio

n si

tes

and

sens

itive

are

as (r

esid

ence

s,

scho

ols,

kin

derg

arte

ns,

hosp

itals

, etc

.)

2 da

ys

Onc

e a

quar

ter

Con

tract

ors/

B

EM

C

BE

PB

, PM

O,

BM

CB

5

B.

UR

I – O

pera

tion

Stag

e N

oise

L e

q A

long

mai

n ro

ads

(pro

pose

d)

and

near

sen

sitiv

e ar

eas

(resi

denc

es, s

choo

ls,

kind

erga

rtens

, hos

pita

ls, e

tc.)

2 da

ys

Onc

e a

year

B

EM

C

BE

PB

, PM

O,

PP

MO

, BM

CB

15 y

early

Air

NO

x, C

O, T

HC

A

long

mai

n ro

ads

(pro

pose

d)

and

near

sen

sitiv

e ar

eas

(resi

denc

es, s

choo

ls,

kind

erga

rtens

, hos

pita

ls, e

tc.)

3 da

ys

Twic

e a

year

B

EM

C

BE

PB

, PM

O,

PP

MO

, BM

CB

25 y

early

Tota

l

84

Appendix 2 47

Type

of

Pollu

tion

Para

met

er

Loca

tion

Tim

e Fr

eque

ncy

Impl

emen

ting

Age

ncy

Supe

rvis

ing

Age

ncy

Estim

ated

C

ost

(CN

Y10,

000)

A．

SBI –

Con

stru

ctio

n St

age

Air

TSP,

PM

10

Dai

ly in

spec

tion

of d

ust

sour

ces

At 2

00 m

dow

nwin

d of

co

nstru

ctio

n si

tes.

Tw

o lo

catio

ns

for S

BI;

2 lo

catio

ns a

t eac

h co

nstru

ctio

n si

te fo

r DH

and

UR

I

Twic

e a

day

2 da

ys p

er

mon

th

Con

tract

ors/

B

EM

C

SB

IZ, B

EP

B,

PM

O

8

Noi

se

L eq

Nea

r sen

sitiv

e ar

eas

(resi

denc

es, s

choo

ls,

kind

erga

rtens

, hos

pita

ls, e

tc.)

with

in 1

50 m

of s

ites,

and

50

m o

f st

orag

e ar

eas

Onc

e du

ring

dayt

ime,

onc

e du

ring

nigh

t tim

e

One

day

per

m

onth

C

ontra

ctor

s,

BE

MC

S

BIZ

, BE

PB

, P

MO

3

B．

SBI –

Ope

ratio

n St

age

Sur

face

W

ater

pH

, SS

, NH

3-N

, TN

, TP

, B

OD

5, C

OD

, met

als

(As,

Cr,

Cu,

Cd,

Hg,

Pb,

Ni,

Zn),

oils

(to

tal h

ydro

carb

ons)

Was

tew

ater

dis

char

ge o

utle

ts in

S

BIZ

O

nlin

e au

tom

atic

m

onito

ring

Onc

e pe

r hou

r S

BIZ

, BE

MC

B

EP

B, P

MO

5

year

ly

Noi

se

L eq

SB

IZ ro

adsi

des

O

nce

durin

g da

ytim

e, o

nce

durin

g ni

ght

time

Twic

e a

year

S

BIZ

, BE

MC

B

EP

B, P

MO

2

year

ly

Air

THC

, NO

x, P

M10

S

BIZ

road

side

s

1–2

times

(10

hour

s co

ntin

ue

mon

itorin

g

Onc

e in

win

ter

and

once

in

sprin

g

SB

IZ, B

EM

C

BE

PB

, PM

O

4 ye

arly

Tota

l

22

A

s =

arse

nic,

BE

MC

= B

aiyi

n E

nviro

nmen

t Mon

itorin

g C

ente

r, B

EP

B =

Bai

yin

Env

ironm

enta

l Pro

tect

ion

Bur

eau,

BM

CB

= B

aiyi

n M

unic

ipal

Con

stru

ctio

n B

urea

u, B

OD

5 = 5

-day

bi

oche

mic

al o

xyge

n de

man

d, C

a+2 =

cal

cium

, Cd

= ca

dmiu

m, C

l- = c

hlor

ide,

CO

= c

arbo

n m

onox

ide,

CO

D =

che

mic

al o

xyge

n de

man

d, C

r = c

hrom

ium

, Cu

= co

pper

, DH

=

dist

rict h

eatin

g, D

H c

ompa

ny =

Bai

yin

Min

yue

Hea

ting

Sup

ply

Cor

pora

tion,

EM

P =

envi

ronm

enta

l man

agem

ent p

lan,

H2S

= h

ydro

gen

sulfi

de, H

g =

mer

cury

, Leq

= e

quiv

alen

t co

ntin

uous

noi

se le

vel,

m =

met

er, M

g+2 =

mag

nesi

um, N

H3-

N =

am

mon

ia n

itrog

en, N

i = n

icke

l, N

O2

= ni

troge

n di

oxid

e, N

Ox

= ni

troge

n ox

ide,

Pb

= le

ad, p

H =

mea

sure

of

acid

ity a

nd a

lkal

inity

, PM

10 =

par

ticul

ate

mat

ter

smal

ler

than

10

mic

rom

eter

s, P

MO

= p

roje

ct m

anag

emen

t offi

ce, P

PMO

= P

ingc

huan

pro

ject

man

agem

ent o

ffice

, SE

PA

=

Sta

te E

nviro

nmen

t Pro

tect

ion

Adm

inis

tratio

n, S

O2 =

sul

fur d

ioxi

de, S

S =

sus

pend

ed s

olid

s, T

HC

= to

tal h

ydro

carb

ons,

TN

= to

tal n

itrog

en, T

P =

tota

l pho

spho

rus,

TS

P =

tota

l su

spen

ded

parti

cula

tes,

UR

I = u

rban

road

impr

ovem

ent,

WW

TP =

was

tew

ater

trea

tmen

t pla

nt, Z

n =

zinc

. S

ourc

e: E

IAs

and

files

sup

plie

d by

the

EIA

pre

para

tion

inst

itute

s.

48 Appendix 2

C. Environmental Management System

1. Introduction

17. The EMS is a systematic approach to planning, implementing, reviewing, and improving (plan-do-check-act) the processes and actions that the SBIZ will undertake to meet its environmental goals and reduce the project environmental impact. An EMS will be developed and implemented by the SBIZ and it will be based on the ISO 14001 standard of Environmental Management Systems: Specification with Guidance for Use and the actual conditions in the SBIZ. The EMS is a framework for understanding an organization’s “environmental footprint,” complying with environmental regulations, and implementing proactive pollution prevention strategies. 18. Existing enterprises and future enterprises entering the SBIZ are encouraged to develop and implement their own facility-specific EMS according to ISO 14001 standards. This will ensure that enterprises plan, control, monitor, record, and audit their environment-related aspects and continuously improve their environmental performance. 19. The EMS establishes a process for the SBIZ to better organize its resources, setting environmental priorities and identifying potential problems before they occur. 20. Baiyin municipal government (BMG) has decided to establish a 3-level environmental management structure for the SBIZ comprising an environmental management committee (EMC) as the top level, a satellite office of Baiyin Environmental Protection Bureau (SOEPB) for SBIZ, and tenants’ environmental management groups (TEMG). The EMC will be chaired by the Chairman of the Economic and Finance Committee of the Baiyin People’s Congress and it will comprise deputies of the Baiyin People’s Congress, independent scholars and environmental specialists, head of BEPB and head of Baiyin Production Safety Office. The EMC will provide policy guidance on environmental management for economic transformation at SBIZ. Under the supervision of EMC, SOEPB will take care of day-to-day environmental monitoring and enforcement. At the same time, each tenant enterprise in the SBIZ will be required to set up an internal TEMG responsible for the enterprise’s compliance with all the environmental management requirements. Furthermore, consulting services will be provided under the Project to help BMG design the regulatory framework and detailed operational mechanism of the proposed EMS to ensure that the economic transformation be conducted and accomplished in a sustainable and environmentally friendly manner. 21. The institutional capacity of the BMG and the SBIZ management team were assessed in regard to the EMP and EMS implementation. The environmental management structure is generally sound but needs further refinements to be effective. Significant training and capacity building would be needed to implement the EMS. Enough resources must be allocated during the implementation of the Project. The detailed institutional structure and operational mechanism for the EMS will be further detailed during project implementation with the support of ADB and loan implementation environmental management consultant (LIEMC). The Project will allocate resources for institutional strengthening and training for overall capacity development support to help the BMG establish and implement the EMS.

Appendix 2 49

2. Planning

22. An environmental policy for the SBIZ has been established and enterprises in the SBIZ will define their own environmental policies and environmental management programs. The SOEPB in the SBIZ has prepared a plan to encourage the enterprises to develop EMSs according to the ISO 14001 Environmental Management Standard. The SOEPB will identify the environmental aspects associated with the operations of the enterprises and assess the significance of their impact. They will also review the EIAs, EMP, and relevant environmental laws, regulations, and policies of the PRC to identify all applicable legal and other requirements. Environmental objectives and targets will then be set for the SBIZ and each enterprise. 23. The BMG is committed to translating environmental policies into appropriate operational plans, programs, projects, and procedures and environmental performance indicators. Enterprises will identify all relevant internal and external business and operational environmental data requirements. 24. According to the regional EIA, the total quantity of pollutants discharged from the SBIZ will be capped to limit the impact on the environment. The BMG plans to develop central heating and natural gas supply systems for all tenant enterprises in the SBIZ to improve energy efficiency and reduce pollution. Some circular (recycling) economy plans have also been formulated for the entire city of Baiyin, the SBIZ, and some key enterprises. The BMG also supports the concept and principles of cleaner production, which means the continuous application of an integrated preventive environmental strategy to processes, products, and services to increase overall efficiency and reduce risks to people and the environment.

3. Implementation

25. In the environmental management structure established for the SBIZ, the EMC is at the top and is responsible for setting environmental policies for the entire SBIZ while the SOEPB manages daily environmental protection and emergency response–related issues in the SBIZ under the guidance of the EMC. The SOEPB also establishes and implements the EMS for the SBIZ. In addition, its responsibilities include developing the emergency response plan for the storage and transportation of hazardous chemicals and providing training in environmental and safety awareness. 26. The TEMG in each tenant enterprise will have full-time or part-time environmental professionals depending on the business activities of the enterprise. It will strictly supervise and inspect the environmental management of the enterprise, and verify the effective implementation of environmental mitigation measures. The EPG will develop and implement an EMS based on ISO 14001 standards for the enterprises and will also be responsible for environmental monitoring within its facility. 27. The SBIZ will establish an emergency response mechanism including procedures for investigating and delegating responsibilities for pollution and safety accidents, and an organization structure for emergency response (involving the SBIZ’s command post, the Baiyin Fire Brigade, the BEMC, and the emergency response teams of the tenants) to deal with pollution accidents. The SOEPB and TEMG are responsible for coordinating emergency preparedness and responses in case of an accident for the SBIZ and individual facilities, respectively.

50 Appendix 2

28. Each TEMG will establish a cross-functional committee, with the line managers as members, to support the development, implementation, and operation of the EMS including the establishment of targets and objectives in environmental matters. Operational control of the relevant environmental aspects will be designated as a clear and accountable responsibility of line management. This must include the authority, resources, and competence required for operating according to established plans and procedures and for achieving the specified environmental performance outcomes and targets. 29. Once objectives and targets are identified and confirmed by the management, specific implementation programs could be developed. Program committees will then need to be formed participated in by industry representatives, resources allocated, and performance monitored. Extensive training to industry representatives will be conducted to ensure competent staff is involved in the implementation the EMS. This training will be administered and coordinated by the SBIZ management should include training of internal auditors from industries. Incentive programs will be developed for enterprises who seek ISO 14001 certification.

30. The BMG has established policies to attract and encourage enterprises with low pollution and less energy intensity and using less resources and more recycled water to locate in the SBIZ. The total pollution emissions and discharges from the SBIZ are controlled according to the limits established by the provincial and municipal environmental protection bureaus. Detailed assessments of the emission and discharge limits have been performed and are presented in the REIA for the SBIZ, which was completed by a qualified local environmental assessment organization. 31. The BMG has also established selection criteria for enterprises entering the SBIZ including environmental protection requirements such as pollution prevention measures, use of recycled water, minimized water use, energy consumption and resource utilization efficiency, and pretreatment of wastewater. Enterprises that fail to meet these requirements will not be allowed to locate in the SBIZ. All tenant enterprises must be assessed for their environmental impact according to PRC laws and regulations. They will not be allowed to locate in the SBIZ if they (i) do not pass the environmental assessment, (ii) do not comply with the EMC’s requirements, or (iii) do not comply with other requirements specified in the REIA. In addition, the following types of enterprises will not be allowed to locate in the SBIZ: (i) enterprises with toxic emissions that cause cancer or other serious illness or have strong odors, and (ii) facilities that have difficulties complying with wastewater discharge limits. 32. The BMG supports the principle of integration of environmental and socioeconomic benefits and encourages enterprises to practice cleaner production by making full use of resources at the start and throughout the production process. The BMG strongly supports enterprises entering the SBIZ in seeking ISO 14001 certification and cleaner production audit. 33. The EMS will be implemented through set procedures, including administrative measures and regulations for achieving the goals of environmental management and pollution control. The SOEPB and TEMGs will establish, document, and implement procedures, including quality control elements, for the measurement or estimation of all environmental data requirements. The procedures must (i) encompass all the principal and ancillary parameters for which environmental data must be measured or estimated, (ii) ensure that the measurement or estimate is consistent with the criteria against which the data are to be evaluated, (iii) detail the method(s) for ensuring that the measurement or estimate takes into account the inherent variability of the operation’s activities, (iv) detail the method(s) for measurement or estimation

Appendix 2 51

that are consistent with external requirements and recognized good practice, and (v) include an estimate of uncertainty. 34. To successfully sustain the EMS, the leaders of the SBIZ and enterprises must communicate to all employees the importance of making environmental protection an organizational priority and integrate environmental management throughout the organization. Personnel must be trained, aware, and competent in managing the environmental aspects and impact related to their roles. The SOEPB and TEMGs must (i) establish internal and external communication procedures, (ii) maintain the EMS elements documented, (iii) establish and maintain document control procedures, and (iv) implement operational control of environmental aspects.

4. Checks and Corrective Actions

35. Tenant enterprises in the SBIZ must take appropriate measures to mitigate environmental impact during construction, as specified in this EMP. Tenants who do not get the required environmental protection approvals will not be allowed to start construction in the SBIZ. The SOEPB will conduct regular inspections of the construction site to ensure compliance with environmental protection requirements. 36. If a tenant enterprise starts operating its facility before the local environmental protection authority has inspected the new facility, it will be fined according to relevant environmental laws, regulations, and policies of the PRC. If the facility has caused serious pollution to the environment, it will be ordered to shut down immediately. An investigation will be conducted and responsible parties will be subject to financial and civil penalties according to relevant environmental laws and regulations. 37. The BEMC will monitoring department will set up stations in the SBIZ to monitor wastewater, solid waste, and air quality, and ensure compliance with all applicable environmental requirements. Automated samplers or an online monitoring system for both air and water pollutants will be installed as appropriate. Each enterprise in the SBIZ will identify specific parameters to monitor depending on the nature of its business. Data collected will meet data quality requirements and be assessed against goals, targets, and legal requirements. Environmental data will be reported according to the reporting procedures specified in the EMS. 38. Based on the requirements of the EIA and the REIA, BMG should construct an industrial solid waste disposal facility to the east of the existing Municipal Garbage Disposal Plant. Before completion of the facility, all the industrial solid wastes, especially the hazardous wastes must be collected in SBIZ and be sent to Gansu Provincial Industrial Solid Wastes Disposal Plant in the City of Lanzhou for proper treatment, all disposal costs will be paid by the enterprises that generate the wastes. 39. For tenant enterprises that generate industrial wastewater, wastewater ponds with enough capabilities will be installed to handle potential wastewater spills due to accidents. The industrial wastewater will be discharged into the Municipal Wastewater Treatment Plant (WWTP) and the WWTP of Yinguang Corporation after pre-treatment within the enterprises. The wastewater that does not meet discharge standards will not allow to be discharged. 40. Existing enterprises in the Baiyin Hi-Tech Industrial Park with pollutant emissions and discharges that do not comply with applicable national and local standards will be ordered to improve and assessed fines by the municipal and district environmental protection departments.

52 Appendix 2

All enterprises must properly operate and maintain their pollution control equipment to reduce environmental impact. 41. An early warning system for emergency response will be established in the SBIZ. The monitoring and warning system will include both software and hardware. Subject to further discussion during project implementation, the system can be a combination of wired and wireless systems to provide adequate and appropriate warning. The emergency response program will be developed, complete with a team of first responders to reduce the consequences of pollution accidents. 42. The SOEPB will establish a process of internal environmental audits covering environmental performance and the EMS. The audit requirements and training will be developed during the implementation of the Project with assistance from the LIEMC. The enterprises will be required to have similar audit systems. 43. System for Recording and Reporting Environmental Incidents. Investigations of significant environmental incidents and nonconformance will be carried out by qualified and trained personnel using transparent procedures. Incident and investigation reports must be communicated. In addition, procedures must be developed for keeping environmental records, handling noncompliance, and carrying out corrective and preventive actions.

5. Management Review

44. Once the EMS is established and implemented in a tenant enterprise, the senior management of the enterprise will review its environmental performance regularly to ensure compliance and continual improvement. The senior management will also conduct a review of the EMS at least every 3 years or at shorter intervals if needed. The review process and its outcomes will be documented and the reports will require management sign-off. 45. Environmental performance will be assessed and reviewed monthly by the SOEPB and other relevant personnel and compared with objectives and targets. New targets will be set once existing targets have been achieved to maintain continuous improvement. If noncompliance with environmental regulations and requirements is found, the management will take immediate appropriate action to correct the issues and demonstrate its capacity to comply. 46. The management review will also include an assessment of the emergency response program for pollution and safety accidents including the early warning system. Drills will be conducted to assess the capability of the enterprise to respond to environmental and safety emergencies. Weaknesses will be identified, and an action plan will be developed to correct them. D. Public Consultation

47. Two rounds of public consultation were conducted. For details, please refer to the EIAs and the main part of this summary environmental impact assessment. 48. Direct public participation was an ongoing element in the development of the Project. These activities were carried out by the institutes that prepared the EIAs following the PRC’s

Appendix 2 53

National Environmental Impact Assessments Technical Guidelines and ADB’s Environment Policy (2002).2

1. Future Public Consultation Plan

49. Plans for public participation in the design, construction, and operation of future projects have been developed on the basis of the two public consultations held during the preparation of the Project. These plans include public participation in (i) the monitoring of project impact and mitigation measures during construction and operation, (ii) the evaluation of environmental and economic benefits and social impact, and (iii) interviews after the Project. These plans will include several types of public involvement, such as site visits, workshops, investigation of specific issues, interviews, and press conferences (Table A2.3). 50. Public participation plans are part of the project implementation and management plan. The IAs are responsible for public participation during project implementation. The contractors will be asked to communicate and consult with the communities near the construction sites. A highly visible public notice board will be erected at each construction site to notify the public of the main construction activities and the duration of the construction. The board will also provide contact names and telephone numbers to enable members of the public to express their concerns or complaints about construction activities. The costs of public participation activities during project implementation are included in the project funding. The costs are estimated at CNY18,000 for each expert workshop, CNY6,000 for each public investigation on a particular issue, CNY3,000 for each resettlement survey, CNY10,000 for each workshop, and CNY3,000 for each press conference.

Table A2.3: Public Consultation Plan

Organizer Approach Times Subject Attendees A. Design Phase PMO, EIA preparation and design Institutes

Questionnaires, interviews, and public meetings

Once Project information, major impact and benefits, mitigation measures, comments and recommendations of the public

Residents near the component area, government officials,

B. Construction Phase IAs, PMO Public consultation

and site visits At least once Adjustment of mitigation

measures if necessary, construction impact, comments and suggestions

Residents near the subcomponent areas

IAs, PMO Expert workshop or press conference

As needed, given the results of the public consultation

Comments and suggestions on mitigation measures, public opinions

Experts from various sectors, media

IAs, PMO Public workshop At least once a year

Adjustment of mitigation measures if necessary construction impact, comments and suggestions

Representatives of residents and social sector

C. Operation Phase IAs, PMO Public consultation

and site visits Once in the first two years

Effects of mitigation, measures, impacts of operation, comments and suggestions

Residents adjacent to the subcomponent areas

2 ADB. 2002. Environment Policy. Manila.

54 Appendix 2

Organizer Approach Times Subject Attendees IAs, PMO Expert workshop or

press conference As needed, given the results of the public consultation

Comments and suggestions on operational impact, public opinions

Experts from various sectors, media

EIA = environmental impact assessment, IA = implementing agency, PMO = project management office. Source: Information supplementary to environmental impact assessments. E. Environmental Responsibilities and Institutional Requirements

51. The EMP will ensure the effective implementation of the mitigation measures. During project preparation and implementation, various organizations with different environmental management responsibilities will be involved. These will include the Gansu Environmental Protection Bureau (GEPB), BEPB, the IAs, the institutes that prepared the EIAs, design institutes, and the PPTA consultants and LIEMC—all of which have been involved or will be involved in the EMP. The IAs will nominate dedicated, trained, and qualified environmental staff to undertake environmental management activities and ensure the effective implementation of the EMP. Table A2.4 shows the environmental responsibilities in different phases of the Project.

Table A2.4: Environmental Responsibilities

Phase Responsible Agencies Environmental Responsibilities

EIA preparation institutes Preparation of EIAs for subcomponents Preparation

GEPB, BEPB Review and approval of EIAs

Design institutes Incorporation of mitigation measures into detailed designs Design PMO, IAs Review and approval of environmental measures and

incorporation of mitigation measures into bidding documents

Tendering

PMO, LIEMC, tendering company IAs, contractors

Incorporation of EMP clauses into bidding documents and civil contracts

IAs, PMO, BEPB Provision of advice on implementation of mitigation measures

Contractors Implementation of mitigation measures and internal monitoring

Construction

BEPB, BEMC, PMO, IAs, LIEMC

Implementation of compliance monitoring; supervision of implementation of mitigation measures

BEPB, LIEMC Provision of advice on compliance monitoring and internal monitoring requirements

IAs or end users Implementation of mitigation measures

BEMC Implementation of compliance monitoring

Operation

IAs or end users, BEPB, LIEMC Supervision of implementation of mitigation monitoring BEMC = Baiyin Environment Monitoring Center, BEPB = Baiyin Environmental Protection Bureau, EIA = environmental impact assessment, EMP = environmental management plan, GEPB = Gansu Environmental Protection Bureau, IA = implementing agency, LIEMC = loan implementation environmental management consultant, PMO = project management office. Source: Information supplementary to environmental impact assessments from IAs. 52. The IAs will be largely responsible for environmental management and the implementation of mitigation measures. They will ensure that the EMP is carried out and will engage design institutes and LIEMC to help with environmental management at the preparation, design, construction, and operation phases. The IAs will be responsible for arranging environmental monitoring reviews and responding to any adverse impact beyond those foreseen in the EIAs. The IAs will also attend to the GEPBs, BEPB’s, and ADB’s requests for mitigation measures.

Appendix 2 55

53. Construction contractors will be responsible for implementing mitigation measures during construction, while the IAs will be responsible for implementing the measures during operations. 54. In accordance with the EMP, the IAs will establish environmental management entities, each one with a staff of at least two employees. During the implementation of the Project, the office will be responsible for (i) implementing the EMP and developing additional implementation details; (ii) supervising the implementation of mitigation measures during construction; (iii) implementing training programs; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal routine environmental monitoring; and (vi) reporting on the performance of the EMP to the responsible agencies. This office will be supported and supervised by BEPB. At the start of project implementation, the IAs will develop comprehensive project performance evaluation procedures to generate data systematically on the inputs and outputs of the project components, and develop detailed environmental and related indicators to be used to measure project impact. The PMO and contractors will each hire or nominate a full-time, trained, and qualified environmental specialist. 55. BMG will provide the IAs with financial and management authority to operate the project facilities. The IAs will be strengthened by environmental management training provided by the Project (Table A2.3). They will incorporate environmental management activities into construction management plans. BMG will ensure that local regulations are complied with, that responsibilities of the agencies involved are clearly defined, that appropriate penalties for noncompliance are established, and that the effectiveness of regulations is reviewed annually, and, if necessary, modified in accordance with applicable legal procedures. 56. The LIEMC will advise the PMO, the IAs, and contractors on all aspects of environmental management and monitoring for the project components. The LIEMC will (i) review project environmental practices and procedures; (ii) guide environmental standard setting and assist in implementation procedures; (iii) review the start-up of the Project’s facilities; (iv) advise on mitigation during construction and operation, in accordance with the EMP; (v) review procedures and recommend improvements; and (vi) investigate and make recommendations on other environmental issues. 57. The BMG will ensure that any changes in the project design that might have negative environmental impact are reviewed by BEPB and the PMO, with the assistance of the LIEMC, so that EMP monitoring and mitigation measures are adjusted in a timely manner and in consultation with ADB’s regional department.

1. Institutional Strengthening and Training

58. There are four IAs, namely, (i) Baiyin Minyue District Heating Supply Corporation (for the DH component), (ii) Baiyin City Construction Bureau (for the urban road improvement [URI] component in Baiyin district), (iii) Pingchuan district PMO (for the URI component in Pingchuan district), and (iv) Baiyin Hi-Tech Industrial Park (for the southern Baiyin infrastructure [SBI] component). 59. The PMO will designate an environmental officer to coordinate environmental management. Each IA will establish an environmental management unit (EMU) with a leader and an appropriate number of staff, to coordinate environmental issues associated with each contract

56 Appendix 2

package on behalf of the IA. Both the PMO’s environmental officer and the EMUs will supervise the contractors’ environmental management and implementation of mitigation measures during construction, under the direction of BEPB. BEPB and the PMO will oversee the implementation of environmental management and mitigation measures by the IAs or the end users during the operational stage. Contractors will bear the cost of mitigation measures during construction, while the IAs or the end users will be responsible for the costs during operation. 60. At present, both the PMO and the IAs lack capacity in environmental management and monitoring. The IAs must have the capacity to implement the Project effectively and the capacity must be built up and strengthened for the proper implementation of the EMP. The EMP training (Table A2.5) will also be an important element in the policy dialogue on the institutional component.

61. Environmental Officer of the PMO, the IAs, the environmental management staff of SBIZ, BEMC staff, contractors, and key DH station operators will be trained in environmental management, monitoring, and supervision; mitigation planning; emergency response; environmental policy making; and other environmental management techniques. Funding for this training will be included in the project budget and in the operation and maintenance budgets during operation.

Table A2.5: Training Plan

Training Attendees Contents Frequency Period (days)

Number of

Persons

Cost (CNY/

person/ day)

Total Costs

(CNY104) Environment laws and regulations, environment management, emergency response

Once 3 20 200 1.2 EMP implementation and adjustment, settlement of disputes

PMO, IAs, BEPB, contractors

Responsibility and duties in construction, management and environmental protection

Once 3 20 200 1.2

Environmental protection procedures

PMO, IAs, contractors

Engineering technologies, pollution control equipment procurement

Once 3 20 200 1.2

Environment monitoring and inspection

PMO, BEMC, BEPB, IAs, contractors

Environment monitoring methods and QA/QC procedures

Once 2 15 200 0.6

Application of ISO14001 certificate

PMO, BHTIP, BEPB, tenants

Contents and requirements for ISO 14001

Once 3 20 200 1.2

Appendix 2 57

Training Attendees Contents Frequency Period (days)

Number of

Persons

Cost (CNY/

person/ day)

Total Costs

(CNY104) Cleaner Production Audit

PMO, BHTIP, BEPB, tenants

Concept and methods for conducting CPA

Once 3 20 200 1.2

Total 6.6 BEMC = Baiyin Environment Monitoring Center, BEPB = Baiyin Environmental Protection Bureau, BHTIP = Baiyin Hi-tech Industrial Park, CPA = cleaner production audit, EMP = environmental management plan, IA = implementing agency, PMO = project management office, QA = quality assurance, QC = quality control. Source: Information from IAs/design institutes supplementary to environmental impact assessments, and PPTA consultants. 62. The BEPB is in a position to, and can, enforce industrial pollution control. The relevant regulations and measures for industrial pollution control are in place.

F. Reporting and Supervision

63. The compliance monitoring reports will include (i) project background, (ii) construction activities, (iii) environmental conditions, (iv) monitoring or sampling locations, (v) analytical results, (vi) interpretation and implication of the monitoring results, (vii) determination of the compliance status with regard to applicable regulations and standards, and (viii) recommendations for improvement. The PMO will submit compliance monitoring reports to ADB as appropriate. 64. Internal Monitoring Reports. During the construction, the results of the internal monitoring by contractors will be reflected in the monthly construction reports. The reports will summarize (i) environmental issues during construction; (ii) mitigation measures taken, if any; and (iii) impact on the environment and surrounding communities. 65. The contractors will be trained to take immediate actions to remedy any unexpected adverse impact or ineffective or inefficient mitigation measures, as required in the EMP. The IAs will also respond to these reports to ensure that the contractors have taken appropriate and timely action. Additional measures may be taken, if needed, to ensure that all issues raised in the compliance monitoring and weekly construction reports are appropriately addressed. 66. The results of the detailed internal environmental monitoring program and mitigation actions for the construction phase will be submitted monthly by contractors to the IAs, monthly by the IAs to the PMO, and quarterly by the IAs to the BEPB. During the operation phase, the IAs will submit quarterly reports to the PMO. ADB may request further environmental mitigation actions, and may determine further mitigation measures for different stages. 67. External Monitoring Reports. BEMC, as authorized by BEPB, will be responsible for external monitoring and inspection of compliance with PRC environmental regulations during construction and operation. The compliance monitoring reports will cover (i) project background, (ii) construction and operation activities, (iii) environmental conditions, (iv) measurement or sampling locations, (v) analytical results, (vi) interpretation of the monitoring results and their implications, (vii) determination of compliance status with regard to applicable regulations and standards, and (viii) recommendations for improvement. These reports will be submitted to

58 Appendix 2

BEPB by BEMC and a copy will be given to the PMO and the GEPB. BEPB may request further environmental mitigation actions. 68. Environmental Acceptance Monitoring and Audit Report on the Completion of Each Construction. An environmental acceptance report on the completion of each construction will be prepared in accordance with the PRC regulation on Environmental Check-and-Acceptance of Project Completion (SEPA, 2001)3 within 3 months of the completion of each subproject. The report will focus on the environmental performance of the subproject when it is put into operation. The report will be reviewed and approved by the BEPB. If noncompliance issues are discovered, the construction must first improve to the requirements before the operation can officially start. 69. Reports to ADB. The PMOs, with the assistance of project implementation consultant, will monitor and assess overall project activities within the project design and monitoring framework, including environmental targets. The PMO will report to ADB and GEPB on the environmental performance of the contractors, IAs, construction supervision companies (CSC), and the LIEMC (in the semiannual project progress reports). These reports will comprise (i) semiannual environmental reports on EMP implementation, and (ii) an environmental compliance monitoring and audit report on the completion of each subproject. Progress reports will emphasize (i) progress made in the implementation of the EMP, (ii) monitoring results, (iii) implementation of mitigation measures, (iv) environmental compliance, (v) training, and (vi) progress in capacity building. ADB may request further environmental mitigation actions if it deems these necessary, and may also determine further mitigation measures for different stages. The PMO will report to ADB twice a year on the physical implementation, including environmental aspects, of the Project to ensure that the progress and impact of the Project are monitored and reported in line with ADB requirements.

Table A2.6: Reporting Plan

Purpose Type of Report From To Frequency of

Reporting

Construction Phase

Weekly internal monitoring reports by contractors

Contractors IAs Weekly

Monthly internal monitoring reports by construction supervision company

CSCs/contractor PMO/BEPB Monthly

Internal monitoring and inspection

Semiannual internal environmental monitoring and inspection reports based on the monthly reports

IAs with assistance from CSCs

PMO/BEPB Semiannually

Spot-check monitoring and inspection reports

BEMC PMO/BEPB Randomly

Monthly external environmental monitoring and inspection reports

BEMC PMO/BEPB Monthly

External monitoring and inspection

Semiannual external environmental monitoring and inspection reports based on the monthly reports

BEMC BEPB/PEPB Semiannually

Reports to ADB

Semiannual progress reports based on all the internal and external reports

PMO/PPTA consultants

ADB Semiannually

3 See footnote 1.

Appendix 2 59

Purpose Type of Report From To Frequency of

Reporting

Test Operation

Project acceptance

Environmental acceptance reports on the project completion

A certified monitoring institute contracted by IAs, BEMC

Environmental authorities who have given the individual EIA approvals/ PMO/ADB

Within 3 months after project completion, or no later than 1 year with permission

Operational Phase

Internal monitoring

Routine environmental monitoring reports

IAs/End users BEPB/ PMO Monthly

External monitoring and inspection

Environmental compliance reports BEMC BEPB/PMO Quarterly

Reports to ADB

Semiannual reports based on all the internal and external monitoring inspection reports during operations

PMO/PPTA consultants

ADB Semiannually

ADB = Asian Development Bank, BEMC = Baiyin Environment Monitoring Center, BEPB = Baiyin Environmental Protection Bureau, CSC = construction supervision company, IA = implementing agency, PMO = project management office, PPTA = project preparatory technical assistance. Sources: PPTA consultants, based on the individual environmental impact assessment reports. G. Work Plan

70. Before construction, the IAs will develop detailed responsibilities and requirements for the contractors and will provide detailed cost estimates of environmental monitoring in the construction contracts. The PMO and IAs also will detail the responsibilities and prepare the work schedules for their environmental management offices. 71. Before the start-up of the project facilities’ operation, the PMO and IAs will develop detailed work plans for environmental management and monitoring during operations based on the EMP. These work plans will be submitted to the BEBP to aid it in supervising implementation. H. Cost Estimates for Environmental Protection

72. The IAs will develop detailed plans for procurement of equipment, materials, and civil works for implementing mitigation measures and monitoring plans. These plans will be incorporated into project contracts. Environmental considerations will be incorporated into the procurement to ensure environmentally responsive procurement. 73. The cost estimates for mitigation measures and interim monitoring plans are summarized in Tables A2.1 and A2.2. The monitoring costs will be borne by contractors during construction, and by the IAs, if applicable, during operation. The contractors will also ensure that the required budgets are available. Before implementing a monitoring plan, the responsible agencies will present a more detailed breakdown of the estimated budget. During project implementation, the budgets will be adjusted on the basis of actual requirements. The contractors will bear the costs of all mitigation measures during construction, and these will be included in the bidding documents and contracts. The IAs will bear the costs related to mitigation measures during operation. Costs related to environmental supervision during construction and operation will be

60 Appendix 2

borne by the IAs. The costs of consultants and training will be borne by the Project as a whole. Training program budgets will be included in the construction and operation contracts. During the operation phase, the training budget will be included in the operation and maintenance budgets. I. Mechanisms for Feedback and Adjustment

74. The effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Measures required in the EMP will be adjusted, if necessary. The BEPB will play a critical role in this feedback and adjustment mechanism, as shown in the figure. 75. Feedback and adjustment will be carried out in two tiers. Upon request for EMP modification by contractors or IAs, BEPB will review the proposals in detail and consider their acceptance or rejection. The contractors and IAs will then submit specified corrective measures to BEPB for review. BEPB will consider comments and suggestions from GEPB and ADB. Appropriate responses and revisions in the EMP will be implemented, if necessary. The contractors and IAs will then implement the modifications.

Appendix 2 61

BEPB, PMO

Reporting

Documentation of Project Adjustments. Comments, and Suggestions

Comments and

Suggestions

Contractor IAs

Feedback on Performance

Implementation of Mitigation Measures and Monitoring Programs

Mechanism for Feedback and Adjustment of EMP

ADB = Asian Development Bank, BEBP = Baiyin Environmental Protection Bureau, GEPB = Gansu Environmental Protection Bureau, IA = implementing agency, PMO = project management office.

GEPB

ADB