PRC: Hunan Technical and Vocational Education and Training Demonstration Project: Initial Environmental Examination

Home , Wuling Mountains, Xuefeng Mountains, Zixing

Initial Environmental Examination

February 2013

PRC: Hunan Technical and Vocational Education and Training Demonstration Project

Prepared by the Hunan Education Department for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 5 February 2013) Currency unit – yuan (CNY) CNY1.00 = $0.1605 $1.00 = CNY6.2324

ABBREVIATIONS

ADB – Asian Development Bank AP – affected person ASL – above sea level CAPEX – capital expenditure CIEE – consolidated initial environmental examination DFR – draft final report DMF – design and monitoring framework EHS – environmental health and safety EIA – environmental impact assessment EMC – environmental monitoring center EMP – environmental management plan EPB – environmental protection bureau FSR – feasibility study report FYP – Five-Year Plan GHG – greenhouse gas GRM – grievance redress mechanism HH – household IA – implementing agency IFC – International Finance Corporation MEP – Ministry of Environmental Protection NDRC – National Development and Reform Commission HDRC – Hunan Development and Reform Commission HED – Hunan Education Department HFD – Hunan Finance Department NGO – non-governmental organization O&M – operation and maintenance OPEX – operational expenditure PAH – project affected households PAP – project affected persons PMO – project management office PPMS – project performance management system PPTA – project preparatory technical assistance PRC – People's Republic of China RP – resettlement plan RRP – report and recommendation of the President TA – technical assistance TOR – terms of reference WWTP – wastewater treatment plant

WEIGHTS AND MEASURES

km2 – square kilometer m2 – square meter m3/day – cubic meter per day Chinese unit of measurement mu – (15 mu = 666.67m2)

NOTES

(i) The fiscal year (FY) of the Government of of the People’s Republic of China ends on. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars.

This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff and may be preliminary in nature. Your attention is directed to the ―terms of use‖ section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS I. EXECUTIVE SUMMARY ...... 1 A. INTRODUCTION ...... 1 B. PROJECT IMPACT, OUTCOME AND OUTPUTS ...... 3 C. ENVIRONMENTAL DUE DILIGENCE ...... 5 D. ENVIRONMENTAL IMPACTS AND ENVIRONMENTAL MANAGEMENT PLAN ...... 5 E. MAIN ENVIRONMENTAL RISKS AND ASSURANCES ...... 6 F. CONCLUSION ...... 7 II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 8 A. PRC LEGISLATIVE FRAMEWORK...... 8 B. INTERNATIONAL AGREEMENTS...... 9 C. PRC AND ADB ASSESSMENT CATEGORIES ...... 10 D. SCOPE OF ASSESSMENT AND EVALUATION STANDARDS FOR SUBPROJECTS...... 10 III. DESCRIPTION OF THE PROJECT ...... 13 A. JUSTIFICATION AND RATIONALE FOR THE PROJECT...... 13 B. PROJECT IMPACT, OUTCOME AND OUTPUTS ...... ERROR! BOOKMARK NOT DEFINED. IV. DESCRIPTION OF THE ENVIRONMENT—BASELINE ...... 22 A. PHYSICAL ENVIRONMENT ...... 22 B. ECOLOGICAL RESOURCES ...... 24 C. SOCIAL AND ECONOMIC CONDITIONS ...... 25 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 27 A. SCOPING OF POTENTIAL IMPACTS, SENSITIVE RECEPTORS ...... 27 B. IMPACTS AND MITIGATION MEASURES DURING THE CONSTRUCTION PHASE ...... 28 1. IMPACTS TO PHYSICAL AND BIOLOGICAL ENVIRONMENT ...... 28 2. SOCIO-ECONOMIC IMPACTS ...... 31 C. ENVIRONMENTAL IMPACT AND MITIGATION MEASURES DURING OPERATION ...... 32 VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 35 A. LEGISLATIVE FRAMEWORK FOR PUBLIC CONSULTATION ...... 35 B. INFORMATION DISCLOSURE ...... 35 C. PUBLIC CONSULTATION ...... 36 D. FUTURE PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ...... 38 VII. GRIEVANCE REDRESS MECHANISM ...... 39 A. CURRENT PRACTICE IN THE PRC ...... 39 B. PROPOSED MECHANISM ...... 39 C. TYPES OF GRIEVANCES EXPECTED AND ELIGIBILITY ASSESSMENT ...... 40 D. GRM PROCEDURE AND TIMEFRAME ...... 40 VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 42 IX. CONCLUSIONS ...... 43 A. PROJECT JUSTIFICATION ...... 43 B. ENVIRONMENTAL ASSESSMENT FINDINGS ...... 43 C. RISKS AND ASSURANCES ...... 44 D. CONCLUSION ...... 45 APPENDIX 1 – ENVIRONMENTAL MANAGEMENT PLAN (EMP) ...... EMP-3-1 APPENDIX 2 – ENVIRONMENTAL SITE INSPECTION CHECKLIST ...... EMP-18 APPENDIX 3 - SUMMARY OF CAMPUS GREENING STRATEGY………………………………….A3-1

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I. EXECUTIVE SUMMARY

A. Introduction

1. This Project Initial Environmental Examination (IEE) report was prepared for the proposed Hunan Technical and Vocational Education Demonstration Project (the Project) in Hunan Province, People’s Republic of China (PRC). The project IEE is prepared in accordance with the requirements of the Asian Development Bank’s (ADB) Safeguard Policy Statement (SPS 2009) on the basis of a domestic Tabular Environmental Impact Assessment Report (TEIAR), a Feasibility Study Report (FSR), the PPTA's social and economic assessments, and project policy dialogue discussions. 2. The proposed Project will help improve the quality and relevance of technical and vocational education and training (TVET) in the People’s Republic of China (PRC) by improving TVET institutional capacity, training of instructors, and curriculum development; fostering innovation through industry-TVET collaboration; and supporting sustainable TVET campuses. The proposed project is the first ADB-financed investment project for education and training in the PRC and is expected to play a demonstration role for TVET in the other provinces of the PRC. 3. The PRC is one of the fastest growing economies with an average annual growth rate of over 9.0% in the past 3 decades. The government’s 12th Five-Year Plan targets annual gross domestic product (GDP) growth of 7.5% during 2011–2015. Despite impressive growth, the PRC is facing a number of urgent development challenges. The government’s key priorities include rebalancing the economy from export- to consumption-oriented growth, from low to higher value-added industries, supporting rapid urbanization and environmentally sustainable and socially inclusive development, all of which require significant investments in human capital. Strengthening human resources through the development of TVET is one of the key priorities under the 12th Five-Year Plan.

4. The PRC is experiencing skill and labor shortages, and wages of unskilled labor are rising in proportion. National labor market data from 91 cities in 2012 showed that demand exceeded supply in almost all technical and skilled categories. The PRC’s comparative advantage in unskilled labor-intensive products is expected to decline, with the economy shifting to more skill-intensive products and production technologies. Faced with the unprecedented growth, the PRC Government is increasingly emphasizing the value of highly- skilled human capital. In 2010, the PRC Government identified TVET as the key target for educational expansion to develop a skilled workforce, and approved the National Long-Term Strategy on Education (2010–2020).

5. Hunan is a province with a population of 70 million and located in the south central part of the PRC. Although the growth of Hunan’s GDP has exceeded the national average since 2001, GDP per capita in 2011 was $4,742, below the national average of $5,583. In 2011, 9.08 million people, or 15.9% of the rural registered population in Hunan lived below the national poverty line, higher than the national average of 13.4%.1 The structure of Hunan’s economy is

1 Based on the poverty line of CNY2,300 in annual net income per capita, established in 2012.

1 undergoing fundamental transformation. The PRC Government’s policy of geographical rebalancing of economic growth towards inland provinces has led to Hunan’s emergence as an important industrial base requiring a large and multi-skilled work force. Hunan’s pillar industries include manufacturing, automobile, biotechnology, natural resources and energy, and information technology. The growth rate of the secondary and tertiary sectors in Hunan has been higher than the national average, particularly for the secondary sector, which contributed 56.0% to Hunan’s GDP in 2010. Demand for skilled workers in Hunan exceeded supply in 2011, with manufacturing having the highest demand. Hunan ranks 19th in the PRC in terms of educational attainment, with an average level of educational attainment of 9.1 years. The urbanization level of Hunan was 45.0% in 2011, and is forecast to grow to 66.0% by 2030. Increased industrialization and urbanization, and the subsequent transformation of livelihood bases will require skilled workers.

6. Since 2007, the Hunan Provincial Government (HPG) has spearheaded TVET reforms in the province. Investment in TVET development has played an important role in helping the disadvantaged people gain new skills and enjoy the growth benefits, as over 80.0% of students enrolled in Hunan’s TVET institutions are from rural areas or low-income urban families. Despite impressive progress, TVET development in Hunan faces a number of challenges. At present, a common challenge is limited industry involvement, which results in poor quality and relevance of training courses, and a lack of clear standards that guide study programs and assessment. A greater involvement of enterprises in advising and directing the TVET system is critical to increase TVET’s responsiveness to the labor market needs. HPG established industry advisory groups (IAGs) as a way to foster industry involvement in TVET, however, the capacity of the IAGs to engage with the industry needs to be strengthened. There is a lack of systematic processes for identifying training needs. Lack of accurate and consistently sourced labor market information leads to inefficiencies in identifying priority skills areas and adjusting TVET programs and specialties so they can provide more marketable skills for TVET graduates and meet the skill requirements of Hunan’s workforce. Hunan’s TVET curriculum is in need of modernizing through competency-based curriculum (CBC). Many instructors of TVET institutions in remote areas have little workplace experience, making it difficult for them to prepare their students for the world of work. Lack of and/or obsolete equipment to simulate a work place for practical demonstration and application hampers quality teaching-learning process in many TVET institutions that have been underfunded in the past. Existing TVET management training provision needs to be improved to better prepare TVET managers as leaders for a market-responsive, rather than supply-driven TVET. To address these challenges, the project will foster partnerships among TVET institutions and employers to jointly develop the skills needed at the work place, and prepare graduates who are able to adjust to changing demands in the labour market quickly. Lessons from activities in skills training supported by the ADB and the World Bank were incorporated into the project design. Lessons from activities in skills training supported by ADB and the World Bank were incorporated into the project design. The project will actively involve representatives of industries and IAGs in identifying occupational areas that are in demand, in developing competencies for the market-demanded occupational areas; and work with the project TVET institutions to develop modular, competency-based curricula, and learning materials. The project will conduct tracer studies of the trainees and will strengthen the capacity of the Hunan Education Department (HED) to analyze labor market demand.

B. Project Impact, Outcome and Outputs

7. The impact of the proposed project will be skilled human resources able to contribute to economic growth and social development in Hunan province. The outcome will be strengthened capacity of the formal TVET system to meet labour market needs.

1. Outputs

8. Output 1: Improved quality and management of TVET system. The project will support improvements in the quality and management of TVET in Hunan’s priority industries by (i) developing competency-based standards and CBC in priority sectors, (ii) developing teaching and learning materials to support CBC, (iii) improving access of TVET institutions in poor and remote areas to high-quality online TVET courses, (iv) upgrading vocational instructor skills through industry placements and in-service training programs, (v) strengthening TVET management capacity, and (vi) improving learning environments through upgrading training equipment at the 13 TVET institutions. (i) Competency-based standards and curriculum developed. The project will develop competency-based standards and CBC for provincial-level demonstration programs in priority sectors. Industry standards will guide the development and improvement of CBC to address skills requirements, including job-specific and core (employability) skills. The project will set up two curriculum development committees with industry representation to develop CBC and a TVET review committee with qualified industry experts to validate the CBC and ensure these meet identified industry needs. The CBC will play a demonstration role and provide a model for development of school-based modular curricula in other priority occupations. Provincial-level quality assurance standards for curriculum development will be developed to ensure consistency of the curriculum across the province. Curricula and teaching and learning materials will be produced, assessment procedures will be developed, and assessors trained. The project will maximize sharing of teaching and learning resources among well-developed TVET institutions in urban areas and disadvantaged TVET institutions in poor and remote areas, through selection, upgrade, and uploading of online courses in priority skills areas onto Hunan’s online TVET portal. This will enhance project impact by allowing non-participating TVET institutions to benefit from CBC developed under the project. (ii) Instructor skills upgraded with improved teaching competencies through industry placements and training programs. The project will review and strengthen in-service teacher training program in TVET institutions and lay the foundation for periodic upgrading of instructors’ technical skills. The project will enhance the skills of instructors in technical areas, student-centered methodologies, and CBC through in-service training, training of lead instructors, and industry placements. This training will use industry employees as trainers and provide instructors with workplace training to expose them to current work technologies. Instructor training modules will include assessment of instructors’ learning. The project will develop provincial level teacher training standards. (iii) TVET management and strategic planning capacity strengthened. The project will provide more market-relevant training to managers of the project TVET institutions in strategic planning, monitoring key performance indicators, cost-effectiveness, and linkages with the industry. The training program will include a mentoring function to the project TVET institutions. The project will establish a TVET leaders group with membership from the project TVET institutions to facilitate sharing of the lessons learned and enhanced communications between the project schools. The project will foster institutional partnerships between selected project TVET institutions and overseas vocational colleges for international benchmarking, student and faculty exchange, joint curriculum revision, and sustained capacity building through institutional linkages. A social marketing plan will be prepared and implemented to promote female enrolment in traditionally male-dominated skills programs. (iv) Training equipment upgraded

3 to support quality improvements. The project will provide key training equipment needed for the revised training programs at the 13 TVET institutions. Training equipment will be approved by relevant IAGs. The specifications for new equipment will contain criteria for low energy consumption.

9. Output 2: Upgraded facilities and learning environments. The project’s investments in human resource development will be accompanied by facilities upgrades at five project TVET institutions. The project will support construction of teaching, learning, and practice buildings within existing campuses of the five TVET institutions. The project will support greening of the TVET campuses by designing, constructing, and maintaining buildings that reduce energy and water use, while promoting sustainable practices such as reducing, reusing, and recycling resources (3R). The project will develop guidelines for sustainable practices on TVET campuses and support selected TVET institutions in setting up environmental management systems.

10. Output 3: Industry involvement in TVET strengthened. Outputs 1 and 2 have been designed to ensure industry participation in TVET delivery. Under this output, the project will further support HED in strengthening partnerships between employers and TVET institutions to improve system quality and responsiveness. (i) Greater industry involvement. The project will build the capacity of the IAGs to forge stronger partnerships with local enterprises. An institutional framework including the terms of reference for the IAGs will be developed and the capacity of IAGs in priority sectors will be strengthened in needs assessment, competency standards development, and identification of labor market needs. The project will strengthen management committees at the project TVET institutions to include industry participation. The project will establish formal partnership agreements between the project TVET institutions and enterprises and IAGs. (ii) Market oriented program planning introduced. The project will train and support HED and the project TVET institutions to assess the quality and relevance of their training programs by measuring graduate employment and employability, primarily through regular tracer studies. To improve program planning, the project will establish a pilot LMIS involving two priority industries as a starting point, to provide labor market information to HED and TVET institutions. The project will support establishment of a provincial level inter- agency LMIS coordination committee, as a policy discussion vehicle to discuss data sharing and development of the LMIS. The project will support HED to develop an improved methodology for designing and conducting tracer studies. Capacity of HED staff to collect and analyze labor market information will be strengthened. (iii) Policy development and sharing of knowledge and experience strengthened. The project will support policy research and development in TVET, by conducting policy studies and disseminating information in key areas including strengthening enterprise-school partnerships, skills mapping to identify the skills needed for environmentally sustainable development, and developing implementation guidelines for national TVET policies. The project will prepare guidelines for assessing the skills needs for environmentally sustainable development.

11. Output 4: Project management support established. Under this output, the project will (i) provide training and project implementation support; (ii) improve monitoring and evaluation (M&E) to capture lessons from project activities under components 1, 2, and 3; and (iii) disseminate experiences gained. The project will carry out baseline, tracer and evaluation studies and organize workshops to exchange school-industry collaboration and curriculum development case studies and lessons learned.

12. Output 4 will also provide environment expert input to support the EA, PMO and the TVET institutions involved in implementing the environmental management plan (EMP), and to

4 facilitate a participatory process to establish an environment management system (EMS) in selected campuses2, i.e., a framework that will allow the TVET institutions to identify and manage their environmental responsibilities in a systematic way. The EMS will aim at ensuring continual improvement by incorporating ongoing monitoring, reviews, and revisions of the environmental procedures. Simple management tools will be developed to improve the TVET institutions’ environmental performance. The EMS will be developed based on an internationally recognized methodology. 3

C. Environmental Due Diligence

13. Categorization. The Project underwent initial appraisal during project preparation by ADB and was classified as Category B for environment on the basis of ADB’s Rapid Environmental Assessment checklists, requiring an Initial Environmental Examination (IEE). The main anticipated environmental impacts and risks upon which the categorization was based included dust, noise, wastewater and solid waste arising from construction of six buildings on five TVET campuses under Output 2. Risks to occupational and community health and safety from construction activities were also considered potentially significant.

14. Environmental assessment. The environmental assessment document upon which this IEE is based has been prepared under the provisions of PRC Environmental Impact Assessment Law of 2003 and the PRC Management Guideline on EIA Categories of Construction Projects (2008). The Project was classified as category B for environment, requiring a tabular environmental impact assessment report (TEIAR). The TEIAR was prepared by Changsha Engineering & Research Institute Ltd of Nonferrous Metallurgy (with Grade A EIA certification), initially submitted to the PPTA team, and was revised to include SPS safeguard requirements to the extent possible. It has been submitted to the Hunan Province Environment Protection Bureau (HEPB) for approval.

15. Consultation, participation and grievance redress mechanism (GRM). In the framework of the environmental due diligence, meaningful consultation was conducted with key stakeholders and potentially affected people. Information was disclosed to affected people through the website of Hunan Province Environment Protection Department and posters at all TVET institutions. This IEE is disclosed on ADB’s project website. Public consultation conducted during project preparation indicated that the majority of the affected people had a positive attitude toward the Project. A grievance redress mechanism (GRM) has been defined to deal with public complaints related to project activities during project implementation and operation.

D. Environmental Impacts and Environmental Management Plan

16. At design stage, the design institutes will design all buildings in compliance with relevant design standards and codes for energy-efficient, safe and green public buildings, including but not limited to: GB 50189-2005 (Design Standard for Energy Efficiency of Public Buildings); GB 50176-1993 (Thermal Design Code for Public Buildings); GB/T 50378-2006 (Evaluation

2 The establishment of a formalized EMS will be piloted in the five TVET schools with civil works. 3 E.g., U.S. EPA, Office of Environmental Stewardship (2007). Environmental Management Guide for Colleges and Universities. http://www.epa.gov/region01/assistance/univ/emsguide.html

Standard for Green Buildings); and GB 50099-2011 (Code for design of school). Adherence to PRC green public procurement policies will be targeted for equipment and appliances procurement. 4,5

17. During construction, major anticipated impacts include noise, fugitive dust, solid wastes, and community and occupational health and safety risks. Overall, construction-related impacts are localized, short term, and can be effectively mitigated through the application of good construction and housekeeping practices and implementation of construction phase community and occupational health and safety plans.

18. During operation, no major environmental impacts are anticipated. The current environment services of participating schools were assessed, and it is concluded that incremental water supply, wastewater and solid waste generation resulting from the Project will not overburden existing services. The project’s potential impacts on community and occupational health and safety during operation were analyzed and corresponding mitigation measures have been proposed in the IEE and EMP. Output 4 of the Project will also provide expert support to involved colleges and schools in developing an environment management system (EMS).

19. An EMP has been developed for the design, construction, and operation phases of the Project. The plan will be updated after detailed project design and incorporated into bidding documents for subproject construction. The EMP defines mitigation measures, monitoring requirements, and institutional responsibilities and costs for implementing the mitigation measures and the monitoring requirements. E. Main environmental risks and assurances

20. Environmental risks, and the assurances required to address these risks, have been identified in the IEE. The majority of environmental risks relate to design features and operational plans which will avoid or mitigate impacts, but which rely on the implementers’ commitment and capacity to implement and consistently follow-up. The remainder relate to the likelihood of unexpected negative impacts. The major risks are listed below: (i) Design of Project facilities not complying with relevant design standards and codes related to energy-efficient, safe and green public buildings; (ii) Inadequate capacity of the EA and IAs in environment management, which could result in inefficient Project and EMP implementation; (iii) Inadequate environment, health and safety management systems in the schools and colleges.

21. Commitments by the EA and the IAs will be incorporated into the loan documentation as loan covenants to ensure that the measures are implemented in a timely and complete fashion, including: (i) a commitment to adhere to relevant design standards and codes for energy-efficient, safe and green public buildings; (ii) a commitment to adhere to PRC green

4 The TVET institutions with civil works will include an analysis of the least cost options (including CAPEX and OPEX and net benefits of adhering to green codes) in the TOR of the design institutes during preparation of the detail design. 5 A rating weight will be assigned to equipment that meets green procurement standards during bid evaluation.

6 public procurement policies;6 and (iii) a commitment to promote campus greening through the development of environment management systems (EMS) for schools and colleges targeted by the Project on the basis of the Campus Greening Strategy drafted for the Project (see summary in Appendix 3).

22. The overriding assurance required is that the EA and the local government bodies as appropriate will ensure that the full range of effective measures set out in the IEE and EMP are undertaken, and guarantees that the environmental management provisions and the environmental monitoring plan will be implemented effectively during project implementation, and that the implementation reports of the environmental management and monitoring plan in accordance with ADB requirements will be submitted in a timely fashion. Part of this monitoring and management commitment will be a commitment to implement and maintain an appropriate Grievance Redress Mechanism (GRM) covering the construction of all project subprojects.

F. Conclusion

23. The IEE concludes that as long as the environmental mitigation and management measures defined in the EMP are properly implemented, all adverse environmental impacts associated with the Project will be prevented, eliminated, or minimized to an acceptable level. The Project is feasible from an environment safeguards point of view.

6 As defined in (i) Public Procurement List of Environmental Labelling Products (issued and regularly updated by NDRC and MOF) which includes 21 categories of products, such as light vehicle, photocopier, computer, water- based paint, furniture, etc; and (ii) Public Procurement List of Energy Saving Products (issued and regularly updated by MEP and MOF), which includes 27 categories of energy saving products, such as air conditioner, refrigerator, lighting product, television set, electric water heater, computer, printer, monitor, etc. and 7 categories of water saving products, such as toilet, faucet, shower etc.

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

A. PRC legislative framework

11. The subproject environmental assessment document (TEIAR) upon which this initial environmental examination (IEE) is based has been prepared under the provisions of the People’s Republic of China’s (PRC) EIA Law of 2003 and the PRC Management Guideline on EIA Categories of Construction Projects (2008). The release of the Interim Guideline on Public Participation in EIA (2006) has also been a significant development that provides for opportunities to involve the public in the EIA process. Main laws, regulation, guidelines and standards applicable to this project are described below. 12. The primary laws that govern the EIA study of the project are provided in Table II-1.

Table II-1: Applicable Environmental Laws

No. Title of the Law Year Issued 1 Environmental Protection Law 1989 2 Environmental Impact Assessment Law 2003 3 Water Law 2002 4 Water Pollution Prevention and Control Law 2008 5 Air Pollution Prevention and Control Law 2000 6 Noise Pollution Control Law 1999 7 Solid Waste Pollution Prevention and Control Law 2005 8 Water and Soil Conservation Law 1991 9 Forest Law 1998 10 Wild Fauna Protection Law 2004 11 Cleaner Production Promotion Law 2002 12 Urban and Rural Planning Law 2008 13 Land Administration Law 1999 Source: Project preparatory technical assistance.

13. The implementation of environmental laws and regulations is supported by a series of associated management and technical guidelines (Table II-2).

Table II-2: Applicable Environmental Guidelines

No. Guideline Year/Code Guideline on Jurisdictional Division of Review and Approval of EIAs for 1 2009 Construction Projects 2 Guideline on EIA Categories of Construction Projects 2008 3 Interim Guideline on Public Consultation for EIA 2006 4 Technical Guideline on EIA Regarding Surface Water HJ/T 2.3-1993

5 Technical Guideline on EIA Regarding Atmospheric Environment HJ 2.2-2008 6 Technical Guideline on EIA Regarding Acoustic Environment HJ 2.4-2009 7 Technical Guideline on EIA Regarding Ecological Impact HJ 19-2011 Technical Guideline on Environmental Risk Assessment for Construction 8 HJ/T 169-2004 Project Source: Project preparatory technical assistance.

14. The environmental quality standard system that supports and evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function (i.e., pollutant emission/discharge standards and ambient environmental standards). The relevant main standards applicable to the project are shown in Table II-3. Table II-3: Applicable Environmental Standards and Codes No. Standard Code 1 Surface Water Quality Standard GB 3838-2002 2 Urban Ambient Acoustic Quality Standard GB 3096-2008 3 Ambient Air Quality Standard GB 3095-1996 4 Integrated Emission Standard of Air Pollutants GB16297-1996 5 Integrated Wastewater Discharge Standard GB 8978-1996 6 Underground Water Quality Standard GB/T 14848-93 7 Domestic Drinking Water Quality Standard GB 5749-2006 8 Emission Standards of Environment Noise for Boundary of Site Noise GB12523-2011 9 Noise Limit of Industrial Enterprises GB12348-2008 10 Emission Standard of Air Pollutants for Coal-burning Boiler GB 3271-2001 11 Standard for pollution GB18597-2001 control on hazardous waste storage 12 Standards for pollution control on GB18599-2001 the storage and disposal site for general industrial solid wastes 13 Design Standard for Energy Efficiency of Public Buildings GB 50189-2005 14 Thermal Design Code for Public Buildings GB 50176-1993 15 Evaluation Standard for Green Buildings GB/T 50378-2006 16 Code for design of school GB 50099-2011 Source: Project preparatory technical assistance.

B. International Agreements

15. The PRC is a signatory of a large number of international agreements relevant to environment protection. Those with direct application to the project, along with the date of signing by the PRC, include: (i) Kyoto Protocol to the United Nations Framework Convention on Climate Change, 23 February 2005. To further reduce greenhouse gas emissions by enhancing the national programs of developed countries aimed at this goal and by establishing percentage reduction targets for the developed countries; (ii) Montreal Protocol on Substances That Deplete the Ozone Layer, 1 January 1989. To protect the ozone layer by controlling emissions of substances that deplete it. (iii) United Nations Framework Convention on Climate Change, 21 March 1994. To achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system.

(iv) UNESCO Convention Concerning the Protection of the World Cultural and Natural Heritage, 1985. To integrate the practice of heritage conservation in PRC with that being done around the world.

C. PRC and ADB Assessment Categories

16. PRC classification. The PRC EIA regulations classify different sectors on the basis of anticipated potential impacts and assigns different levels of EIA. The Project was classified as category B under PRC classification, requiring a Tabular EIA report (TEIAR). The Project Preparatory Technical Assistance (PPTA) consultants assisted in the finalization of the domestic TEIAR and the domestic feasibility study report (FSR). The domestic TEIAR has been submitted to the Hunan Province Environment Protection Bureau (HEPB) for approval.

17. ADB classification. The Project underwent initial appraisal during project preparation and was classified as Category B on the basis of ADB’s Rapid Environmental Assessment, requiring an Initial Environmental Examination (IEE). In compliance with ADB’s Safeguard Policy Statement (2009),7 an IEE was prepared using (i) the feasibility study report, and (ii) the TEIAR prepared by Changsha Engineering & Research Institute Ltd of Nonferrous Metallurgy (with Grade A EIA certification) in conformance with PRC regulations.

D. Scope of Assessment and Evaluation Standards for Subprojects

18. ADB’s Safeguard Policy Statement (SPS, 2009) provides the basis for this project IEE. All projects funded by ADB must comply with the SPS. The purpose of the SPS is to establish an environmental review process to ensure that projects undertaken as part of programs funded under ADB loans are environmentally sound, are designed to operate in line with applicable regulatory requirements, and are not likely to cause significant environment, health, or safety hazards.

19. The scope of investigation is the school campuses and areas 200 meters (m) surrounding the campuses unless otherwise stated.

20. In PRC EIA requirements, ambient levels of air, noise, and water quality in the proposed works area determine the appropriate category for point source or impacting emissions and effluent standards for the construction and operational phases of built infrastructure. ADB’s Safeguard Policy Statement (2009) requires projects to apply pollution prevention and control technologies and practices consistent with international good practices as reflected in internationally recognized standards such as the World Bank Group’s Environmental, Health and Safety (EHS) Guidelines. 8 The EHS guidelines are based on best practice construction and operational procedures. The Project applies PRC standards for ambient air quality, acoustic ambient quality, surface water quality, and construction site noise. But where EHS standards exist for parameters of relevance, they are used in parallel with PRC standards in this assessment for comparison purposes.

7 ADB. 2009. Safeguard Policy Statement. Manila. 8 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington.

Table II.1: Ambient Air Quality Grade II Standard Pollutant Time Standard (mg/m3) EHS9 (mg/m3)

Annual average 0.06

SO2 Daily average 0.15 0.125-0.05 (0.02 guideline) Unit hour average 0.50

Annual average 0.10 0.07-0.03 (0.02 guideline) PM10 Daily average 0.15 0.075-0.15 (0.05 guideline)

Annual average 0.08 0.04 guideline

NO2 Daily average 0.12 Unit hour average 0.24 0.20 guideline

Daily average 4.0 n/a CO Unit hour average 10.0 n/a Source: GB 3096-1996

21. According to the Technical Specifications for Urban Area Ambient Noise Applicable Area Classification (GBT 15190-94), areas serving for cultural and educational institutions are classified as Class 1, and should comply with the corresponding provisions in Acoustic Ambient Quality Standard (GB3096-2008) according to the classification of the area. Residential, commercial and industrial mixed areas must comply with Class 2 standard. Lower standards apply for industrial areas and major roads. Standards are listed in Table II.2.

Table II.2: Acoustic Ambient Quality Standards (Equivalent Sound Level: LAeq: dB) PRC Standard 10 Applicable Area Day Night EHS Class Areas needing extreme quiet, such as convalescence 0 50 40 areas Area mainly for residence, cultural and educational 1 55 45 55 45 institutions 2 Residential, commercial and industrial mixed area 60 50

3 Industrial area 65 55 70 70 4 Area on both sides of urban road traffic trunk line 70 55 Source: GB3096-2008, World Bank’s EHS Guidelines

22. For water quality assessment, the determining standard will be Surface Water Ambient Quality Standard (GB3838－2002). This standard is set out in Table II.6. The class IV standard is the minimum required runoff standard for all construction projects in an urban environment.

9 World Bank Group 2007, ibid. 10 World Bank Group 2007, ibid.

There is no EHS guideline or target for water quality in this context.

Table II.3: Surface Water Ambient Quality Standards (Unit: mg/L)

Standard DO IMn BOD COD NH3-N (GB3838-2002) – Grade III ≥5 ≤6 ≤4 ≤20 ≤1.0 (GB3838-2002) – Grade IV ≥3 ≤10 ≤6 ≤30 ≤1.5 (GB3838-2002) – Grade V ≥2 ≤15 ≤10 ≤40 ≤2.0 Source: GB3838－2002

23. In the construction phase, air pollutants from dust and earthworks should comply with the Grade II standard specified in Air Pollutant Comprehensive Emission Standard (GB16297- 1996).

24. Construction noise will be assessed against the standards in Emission Standards of Environment Noise for Boundary of Site Noise, which are set out in Table II.4.

Table II.4: Construction Site Noise Limit (Unit: Leq[dB(A)]) Noise Limit Period Major Noise Source Day Night Bulldozer, excavators and loader; Pile driving machines; Construction 70 55 Concrete mixer, vibrator and electric saw; Hoist and lifter Source: GB12523-2011

25. Construction activities will probably cause vibration impact, and should comply with the Standard for Urban Area Environmental Vibration (GB10070－88). The details are shown in Table II.8. The project works are located on existing school campuses, where standard 2 applies.

Table II.5: Vertical (Z) Vibration Standard Value for Various Urban Areas (Unit: dB) Scope of applicable area Day Night Special residential area 65 65 Residential, cultural and educational area 70 67 Mixed area and commercial center 75 72 Industrial centralized area 75 72 Both sides of traffic trunk line 75 72 Both sides of railway main line 80 80 Source: GB10070－88

26. Because the subproject areas are not within or nearby legally protected or critical habitats, the assessment of ecological environment belongs to Class III according to the Environmental Impact Assessment Technical Guidelines (HJ19-2011).

27. Considering the characteristics of the project, the project will not cause groundwater level changes nor cause groundwater pollution. No assessment for groundwater is therefore required.

III. DESCRIPTION OF THE PROJECT

A. Justification and Rationale for the Project

1. The PRC is one of the fastest growing economies with an average annual growth rate of over 9.0% in the past 3 decades. The government’s 12th Five-Year Plan targets annual gross domestic product (GDP) growth of 7.5% during 2011–2015. Despite impressive growth, the PRC is facing a number of urgent development challenges. The government’s key priorities include rebalancing the economy from export- to consumption-oriented growth, from low to higher value-added industries, supporting rapid urbanization and environmentally sustainable and socially inclusive development, all of which require significant investments in human capital. Strengthening human resources through the development of TVET is one of the key priorities under the 12th Five-Year Plan.

2. The PRC is experiencing skill and labor shortages, and wages of unskilled labor are rising in proportion. National labor market data from 91 cities in 2012 showed that demand exceeded supply in almost all technical and skilled categories. The PRC’s comparative advantage in unskilled labor-intensive products is expected to decline, with the economy shifting to more skill-intensive products and production technologies. Faced with the unprecedented growth, the PRC Government is increasingly emphasizing the value of highly- skilled human capital. In 2010, the PRC Government identified TVET as the key target for educational expansion to develop a skilled workforce, and approved the National Long-Term Strategy on Education (2010–2020).

3. Hunan is a province with a population of 70 million and located in the south central part of the PRC. Although the growth of Hunan’s GDP has exceeded the national average since 2001, GDP per capita in 2011 was $4,742, below the national average of $5,583. In 2011, 9.08 million people, or 15.9% of the rural registered population in Hunan lived below the national poverty line, higher than the national average of 13.4%.11 The structure of Hunan’s economy is undergoing fundamental transformation. The PRC Government’s policy of geographical rebalancing of economic growth towards inland provinces has led to Hunan’s emergence as an important industrial base requiring a large and multi-skilled work force. Hunan’s pillar industries include manufacturing, automobile, biotechnology, natural resources and energy, and information technology. The growth rate of the secondary and tertiary sectors in Hunan has been higher than the national average, particularly for the secondary sector, which contributed 56.0% to Hunan’s GDP in 2010. Demand for skilled workers in Hunan exceeded supply in 2011, with manufacturing having the highest demand. Hunan ranks 19th in the PRC in terms of educational attainment, with an average level of educational attainment of 9.1 years. The urbanization level of Hunan was 45.0% in 2011, and is forecast to grow to 66.0% by 2030. Increased industrialization and urbanization, and the subsequent transformation of livelihood bases will require skilled workers.

4. Since 2007, the Hunan Provincial Government (HPG) has spearheaded TVET reforms in the province. Investment in TVET development has played an important role in helping the disadvantaged people gain new skills and enjoy the growth benefits, as over 80.0% of students enrolled in Hunan’s TVET institutions are from rural areas or low-income urban families.

11 Based on the poverty line of RMB 2,300 in annual net income per capita, established in 2012.

Despite impressive progress, TVET development in Hunan faces a number of challenges. At present, a common challenge is limited industry involvement, which results in poor quality and relevance of training courses, and a lack of clear standards that guide study programs and assessment. A greater involvement of enterprises in advising and directing the TVET system is critical to increase TVET’s responsiveness to the labor market needs. HPG established industry advisory groups (IAGs) as a way to foster industry involvement in TVET, however, the capacity of the IAGs to engage with the industry needs to be strengthened. There is a lack of systematic processes for identifying training needs. Lack of accurate and consistently sourced labor market information leads to inefficiencies in identifying priority skills areas and adjusting TVET programs and specialties so they can provide more marketable skills for TVET graduates and meet the skill requirements of Hunan’s workforce. Hunan’s TVET curriculum is in need of modernizing through competency-based curriculum (CBC). Many instructors of TVET institutions in remote areas have little workplace experience, making it difficult for them to prepare their students for the world of work. Lack of and/or obsolete equipment to simulate a work place for practical demonstration and application hampers quality teaching-learning process in many TVET institutions that have been underfunded in the past. Existing TVET management training provision needs to be improved to better prepare TVET managers as leaders for a market-responsive, rather than supply-driven TVET. To address these challenges, the project will foster partnerships among TVET institutions and employers to jointly develop the skills needed at the work place, and prepare graduates who are able to adjust to changing demands in the labour market quickly. Lessons from activities in skills training supported by the ADB and the World Bank were incorporated into the project design. Lessons from activities in skills training supported by the ADB and the World Bank were incorporated into the project design. The Project will actively involve representatives of industries and IAGs in identifying occupational areas that are in demand, in developing competencies for the market-demanded occupational areas; and work with the project TVET institutions to develop modular, competency-based curricula and learning materials. The project will conduct tracer studies of the trainees and will strengthen the capacity of the Hunan Education Department (HED) to analyze labor market demand.

5. Strategic fit. The project is the first Asian Development Bank (ADB)-financed lending project for TVET in the PRC and is envisaged to play a demonstration role for TVET development in the country. Because worker skills and education are viewed as a constraint to the PRC’s growth, ADB involvement in the TVET sector is strongly justified. The proposed project aligns with the ADB’s PRC country partnership strategy (2011–2015) and supports ADB’s education policy and education sector strategies. It supports the PRC’s 12th Five-Year Plan, which prioritizes developing high-quality human resources, increasing scientific and technological innovations, and accelerating educational reform. The project has the following demonstration features for replication in other provinces of the PRC: (i) industry involvement. The project will improve partnerships between TVET institutions and industries, and will strengthen sector-specific IAGs in the priority sectors; (ii) promoting inclusive TVET through information communication technology. The project will broaden access for students from remote areas by developing online TVET courses and thus, will foster resource sharing to benefit students in project and non-project TVET institutions; and (iii) greening TVET provision. The project will contribute to the PRC Government’s objectives of developing an environmentally sustainable and energy-efficient society under its 12th Five-Year Plan by designing, constructing, and maintaining teaching and learning buildings that reduce energy and water use and promoting sustainable practices such as reducing, reusing, and recycling resources; encouraging selection of training equipment with low energy consumption; and skills mapping to identify skills needed for environmentally sustainable development in Hunan.

2. Impact and Outcome

6. The impact of the proposed project will be skilled human resources able to contribute to economic growth and social development in Hunan province. The outcome will be strengthened capacity of the formal TVET system to meet labour market needs.

3. Outputs

7. Output 1: Improved quality and management of TVET system. The project will support improvements in the quality and management of TVET in Hunan’s priority industries by (i) developing competency-based standards and CBC in priority sectors; (ii) developing teaching and learning materials to support CBC; (iii) improving access of TVET institutions in poor and remote areas to high-quality online TVET courses; (iv) upgrading vocational instructor skills through industry placements and in-service training programs; (v) strengthening TVET management capacity; and (v) improving learning environments through upgrading training equipment at the 13 TVET institutions. (i) Competency-based standards and curriculum developed. The project will develop competency-based standards and CBC for provincial-level demonstration programs in priority sectors. Industry standards will guide the development and improvement of CBC to address skills requirements, including job-specific and core (employability) skills. The project will set up two curriculum development committees with industry representation to develop CBC and a TVET review committee with qualified industry experts to validate the CBC and ensure these meet identified industry needs. The CBC will play a demonstration role and provide a model for development of school-based modular curricula in other priority occupations. Provincial-level quality assurance standards for curriculum development will be developed to ensure consistency of the curriculum across the province. Curricula and teaching and learning materials will be produced; assessment procedures will be developed and assessors trained. The project will maximize sharing of teaching and learning resources among well-developed TVET institutions in urban areas and disadvantaged TVET institutions in poor and remote areas, through selection, upgrade, and uploading of online courses in priority skills areas onto Hunan’s online TVET portal. This will enhance project impact by allowing non-participating TVET institutions to benefit from CBC developed under the project. (ii) Instructor skills upgraded with improved teaching competencies through industry placements and training programs. The project will review and strengthen in-service teacher training program in TVET institutions and lay the foundation for periodic upgrading of instructors’ technical skills. The project will enhance the skills of instructors in technical areas, student-centered methodologies, and CBC through in-service training, training of lead instructors, and industry placements. This training will use industry employees as trainers and provide instructors with workplace training to expose them to current work technologies. Instructor training modules will include assessment of instructors’ learning. The project will develop provincial level teacher training standards. (iii) TVET management and strategic planning capacity strengthened. The project will provide more market-relevant training to managers of the project TVET institutions in strategic planning, monitoring key performance indicators, cost-effectiveness, and linkages with the industry. The training program will include a mentoring function to the project TVET institutions. The project will establish a TVET leaders group with membership from the project TVET institutions to facilitate sharing of the lessons learned and enhanced communications between the project schools. The project will foster institutional partnerships between selected project TVET institutions and overseas vocational colleges for international benchmarking, student and faculty exchange, joint curriculum revision, and sustained capacity building through institutional linkages. A social marketing plan will be prepared and implemented to promote female enrolment in traditionally male-dominated skills programs. (iv) Training equipment upgraded

15 to support quality improvements. The project will provide key training equipment needed for the revised training programs at the 13 TVET institutions. Training equipment will be approved by relevant IAGs. The specifications for new equipment will contain criteria for low energy consumption.

8. Output 2: Upgraded facilities and learning environments. The project’s investments in human resource development will be accompanied by facilities upgrades at five project TVET institutions. The project will support construction of teaching, learning, and practice buildings within existing campuses of the five TVET institutions. The project will support greening of the TVET campuses by designing, constructing, and maintaining buildings that reduce energy and water use, while promoting sustainable practices such as reducing, reusing, and recycling resources (3R). The project will develop guidelines for sustainable practices on TVET campuses and support selected TVET institutions in setting up environmental management systems.

9. Output 3: Industry involvement in TVET strengthened. Outputs 1 and 2 have been designed to ensure industry participation in TVET delivery. Under this output, the project will further support HED in strengthening partnerships between employers and TVET institutions to improve system quality and responsiveness. (i) Greater industry involvement. The project will build the capacity of the IAGs to forge stronger partnerships with local enterprises. An institutional framework including the terms of reference for the IAGs will be developed and the capacity of IAGs in priority sectors will be strengthened in needs assessment, competency standards development, and identification of labor market needs. The project will strengthen management committees at the project TVET institutions to include industry participation. The project will establish formal partnership agreements between the project TVET institutions and enterprises and IAGs. (ii) Market oriented program planning introduced. The project will train and support HED and the project TVET institutions to assess the quality and relevance of their training programs by measuring graduate employment and employability, primarily through regular tracer studies. To improve program planning, the project will establish a pilot LMIS involving two priority industries as a starting point, to provide labor market information to HED and TVET institutions. The project will support establishment of a provincial level inter-agency LMIS coordination committee, as a policy discussion vehicle to discuss data sharing and development of the LMIS. The project will support HED to develop an improved methodology for designing and conducting tracer studies. Capacity of HED staff to collect and analyze labor market information will be strengthened. (iii) Policy development and sharing of knowledge and experience strengthened. The project will support policy research and development in TVET, by conducting policy studies and disseminating information in key areas including strengthening enterprise-school partnerships, skills mapping to identify the skills needed for environmentally sustainable development, and developing implementation guidelines for national TVET policies. The project will prepare guidelines for assessing the skills needs for environmentally sustainable development.

10. Output 4: Project management support established. Under this output, the project will (i) provide training and project implementation support; (ii) improve monitoring and evaluation to capture lessons from project activities under components 1, 2, and 3; and (iii) disseminate experiences gained. The project will carry out baseline, tracer and evaluation studies, and organize workshops to exchange school-industry collaboration and curriculum development case studies and lessons learned. Output 4 will also provide environment expert input to support the EA, PMO, and the TVET institutions involved in implementing the environmental management plan (EMP), and to facilitate a participatory process to establish an environment management system (EMS) in the 5 campuses involving civil works, i.e., a framework that will allow the TVET institutions to identify and manage their environmental

16 responsibilities in a systematic way.

11. Simple management tools will be developed to help the TVET institutions’ improve their campuses’ environmental management. The EMS will be developed based on an internationally recognized methodology,12 and the draft Campus Greening Strategy (see Appendix 3) and may include the following steps:

(i) the participatory conduct of a gap analysis and needs assessment;

(ii) the definition of a vision, environmental objectives and targets;

(iii) the definition of key Focus Areas (e.g. laboratories, water, waste, energy, safety, awareness raising);

(iv) the development of environment management programs (e.g. Hazardous Materials Management Program; Air, Water, Waste Program; Energy Reduction Program; Solid Waste Reduction Program);

(v) the definition of roles, responsibilities and procedures for EMS implementation, monitoring and auditing; and

(vi) the definition of a road map with milestones for EMS implementation.

12 E.g., U.S. EPA, Office of Environmental Stewardship (2007). Environmental Management Guide for Colleges and Universities. http://www.epa.gov/region01/assistance/univ/emsguide.html

Table III.1: TVET Institutions targeted by Project (Note: Civil works are highlighted, bolt/italic)

Sub-projects Contents Total Investment Funding Sources Terms Floor Area (m2) CNY US dollar Loan Counterpart 104 104 Hunan Vocational College Equipment Procurement 4913.8 775.0 685.0 90.0 2013- of Science and 2015 Technology Vocational Education System and Capacity 475.5 75.0 50.0 25.0 2013- Building 2015 Management 95.1 15.0 15.0 0.0 Other 576.0 90.9 0.0 90.9

Sub-total 6060.4 955.9 750.0 205.9 Hunan Industry Automotive Industry Training Center 3113.2 491.0 320.0 171.0 2013- 13,869 Polytechnic 2016 Mechanical Engineering Training Center 2969.2 468.3 300.0 168.3 2013- 13,435 2016 Equipment Procurement 1852.4 292.2 65.0 227.2 2013- 2016 Vocational Education System and Capacity 839.6 132.4 50.0 82.4 2013- Building 2016 Management 95.1 15.0 15.0 0.0 Other 1942.8 306.4 0.0 306.4 Sub-total 10812.4 1705.4 750.0 955.4 Changsha Social Work Training Building 3558.2 561.0 340.0 221.0 2013- 20,560 College 2014 Equipment Procurement 4089.3 645.0 345.0 300.0 2013- 2017 Capacity Building 475.5 75.0 50.0 25.0 2013- 2017 Management 95.1 15.0 15.0 0.0 Other 1830.8 289.0 0.0 289.0 Sub-total 10048.9 1585.0 750.0 835.0 Hunan Network Equipment Procurement 4671.6 736 440.0 296 2013- Engineering Vocational 2015 College Vocational Education System and Capacity 475.5 75.0 50.0 25 2013-

Sub-projects Contents Total Investment Funding Sources Terms Floor Area (m2) CNY US dollar Loan Counterpart 104 104 Building 2017 Management 63.4 10.0 10.0 0.0

Other 864.0 136 0.0 136

Sub-total 6074.5 957 500.0 457 Hunan Vocational College Equipment Procurement 3677.2 580.0 440.0 140.0 2013- of Railway Technology 2016 Vocational Education System and Capacity 475.5 75.0 50.0 25.0 2013- Building 2016 Management 63.4 10.0 10.0 0.0 Other 577.2 91.0 0.0 91.0 Sub-total 4793.3 756.0 500.0 256.0 Hunan Modern Logistics Hunan logistics information platform 2102.8 331.7 200.0 131.7 2013- 5,000 Occupation Technical building 2015 College Equipment Procurement 2631.1 415.0 115.0 300.0 2013- 2015 Vocational Education System and Capacity 253.6 40.0 30.0 10.0 2013- Building 2016 Management 31.7 5.0 5.0 0.0 Other 1110.7 175.2 175.2 Sub-total 6129.9 966.9 350.0 616.9 Yueyang Vocational and Training Building 2342.3 369.5 215.0 154.5 2013- 10,000 Technical College 2014 Vocational Education System and Capacity 222 35.0 30.0 5.0 2013- Building 2017 Management 31.7 5.0 5.0 0.0 Other 796 125.5 0 125.5 Sub-total 3391.9 535.0 250.0 285.0 Province level Vocational Electrified railway technology course 675.2 106.5 60 46.5 2013- Education System and development 2017 Capacity Building Machinery Manufacturing and Automation 580.1 91.5 60 31.5 2013-

Sub-projects Contents Total Investment Funding Sources Terms Floor Area (m2) CNY US dollar Loan Counterpart 104 104 (engineering machinery manufacturing) 2017 course development Resources sharing system 95.1 15 15 0 2013- 2017 Training 253.6 40 40 0 2013- 2017 Project dissemination 95.1 15 15 0 2013- 2017 Vocational Education HR information system 158.5 25 25 0 2013- 2017 HED Project administration 348.7 55 0 55 2013- 2017 Sub-total 2206.3 348 215 133 Zhijiang Nationality Equipment Procurement 1759.5 277.5 192 85.5 2013- Secondary Vocational 2017 School Vocational Education System and Capacity 275.7 43.5 20 23.5 2013- Building 2017 Management 19.0 3.0 3 0.0 Other 355.1 56.0 0 56.0 Sub-total 2409.3 380.0 215.0 165.0 Zhuzhou Vocational Equipment Procurement 2376.0 374.8 165.0 209.8 2013- College 2016 Vocational Education System and Capacity 221.9 35.0 30.0 5.0 2013- Building 2016 Management 31.7 5.0 5.0 0.0 Other 369.4 58.3 0.0 58.3 Sub-total 2999.0 473.0 200.0 273.0 Huarong Secondary Equipment Procurement 934.2 147.4 125 22.4 2013- Vocational School 2015 Vocational Education System and Capacity 424.8 67.0 67 0 2013- Building 2017 Management 19.0 3.0 3 0

Sub-projects Contents Total Investment Funding Sources Terms Floor Area (m2) CNY US dollar Loan Counterpart 104 104 Other 655.3 103.4 0 103.4 Sub-total 3291.0 519.1 195 324.1 Hunan Commercial and Equipment Procurement 1731.9 273 120.0 153.0 2013- Tourism Vocational 2015 College Vocational Education System and Capacity 158.5 25.0 25.0 0.0 2013- Building 2016 Management 31.7 5.0 5.0 0.0 Other 296.9 46.8 0.0 46.8

Sub-total 2219.0 349.8 150.0 199.8 Youxian Secondary Equipment Procurement 1271.0 200.5 68.0 132.5 2013- Vocational School 2016 Vocational Education System and Capacity 126.8 20.0 20.0 0.0 2013- Building 2016 Management 12.7 2.0 2.0 0.0 Other 226.1 35.7 0.0 35.7 Sub-total 1636.5 258.1 90.0 168.1 Zixing Secondary Library 512.4 80.8 30.0 50.8 2013- 4,000 Vocational School 2014 300m sports track and supporting 521.0 82.0 33.0 49.0 2013- 2,573 facilities 2014 Vocational Education System and Capacity 126.8 20.0 20.0 0.0 2013- Building 2016 Management 12.7 2.0 2.0 0.0 Other 234.7 37.0 0.0 37.0 Sub-total 1407.5 221.8 85.0 136.8 Total 63479.9 10012.6 5000. 5021.6 0 Source: draft FSR, October 2012

IV. DESCRIPTION OF THE ENVIRONMENT

28. The description of the pre-project environment (biophysical and socio-economic) establishes (i) the environmental setting within which the project will be implemented, and therefore needs to be designed to suit, and (ii) the environmental values which will be changed (either negatively or positively) by the Project. Both these roles are encompassed by the concept of the ―baseline‖ environment.

A. Physical environment

29. Location. Hunan Province located in the south-central part of the country to the south of the middle reaches of the Yangtze River and south of Lake Dongting. Hunan borders Hubei in the north, Jiangxi to the east, Guangdong to the south, Guangxi to the southwest, Guizhou to the west, and Chongqing to the northwest. The capital is Changsha.

30. Administrative divisions. Hunan Province is divided into 14 prefecture-level divisions, of which 13 are prefecture-level cities and the remaining division an autonomous prefecture. The fourteen prefecture-level divisions of the province are subdivided into 122 county-level divisions (34 districts, sixteen county-level cities, 65 counties, seven autonomous counties). Those are in turn divided into 2587 township-level divisions. The location of the TVET institutions targeted by the project is described in Table IV.1.

Table IV.1: Location of TVET institutions targeted by the Project

No. TVET institution Prefecture Level City District/County

1 Hunan Vocational College of Science Changsha Yuhua District andMuyun and Technology District 2 Hunan Industry Polytechnic Changsha Yuelu 3 Changsha Social Work College Changsha Yuhua District 4 Hunan Network Engineering Vocational Changsha Yuhua District College 5 Hunan Vocational College of Railway Zhuhzou Zhuzhou Technology 6 Hunan Modern Logistics Occupation Changsha Changsha County Technical College 7 Yueyang Vocation and Technical Yueyang Yueyang College 8 Zhijiang Nationality Secondary Huaihua Zhijiang County Vocational School 9 Youxian Secondary Vocational School Zhuzhou Youxian County 10 Hunan Commercial and Tourism Changsha Yuelu District Vocational College 11 Zhuzhou Vocational College Zhuzhou Zhuzhou 12 Huarong Secondary Vocational School Yueyang Huarong County 13 Zixing Secondary Vocational School Chenzhou Zixing County Source: Project Preparatory Technical Assistance

31. Topography and geology. The province covers an area of 211,800 square kilometers, making it the 10th largest provincial-level division. The east, south and west sides of the project area are surrounded by mountains and hills, such as the Wuling Mountains to the northwest, the Xuefeng Mountains to the west, the Nanling Mountains to the south, and the Luoxiao Mountains to the east. The mountains and hills occupy more than 80% of the area and plains comprise less than 20% of the whole province. The geological formations mainly comprise Sinian metamorphic sandstone and slate; Ordovician-Carboniferous sandstone, limestone, and dolomitic limestone; Eocene marls, mudstones, and conglomerates; and unconsolidated Quaternary clays, silts and loams. Previous tectonic movement is manifested in large-scale NNE-NE folding and fracturing. The main fractures are the Xiangyang Bridge-Danshui Lake fault, Laomeng Mt. fault, Shuikou Mt. fault and Liutangchong fault. 32. Climate. The climate in the project area is subtropical, with short, cool, damp winters, very hot and humid summers, and plenty of rainfall. January temperatures average 2 to 8 °C while July temperatures average around 26 to 34 °C. The maximum recorded temperature is 43.6°C and the minimum is -12°C. Rainfall is unevenly distributed throughout the year. In summer, the warm air masses from the ocean bring warm, moist weather resulting in high rainfall in the spring and summer. The winters are influenced by the cold Siberian weather system. Consequently, the summers are hot and humid, while the winters are cold and dry. Average annual precipitation is 1,200 to 1,700 millimeters. Affected by the monsoon, the north and north easterly winds prevail all year. The average wind velocity lies between 1.9 and 2.8 m/s, with velocities gradually abating from north to south. Table IV.2 illustrates key climate data for the cities under this Project respectively.

Table IV.2: Climate data for Changsha (1971-2010) City Maximum Minimum Annual Precipitation % humidity Recorded °C Recorded °C Average °C mm Changsha 43 -8.6 17.6 1394.6 80 Yueyang 39.3 -11.8 17 1387.9 79 Zixing 39.8 -6.8 17.8 1386 83 Zhuzhou 40.6 -11.3 17.2 1422.4 81 Zhijiang 39.9 -11.5 16.5 1252.8 80.1 Source: People’s Republic of China Meteorological Administration

33. Soil. The soils of the project area comprise zonal and azonal soil types. The zonal soils include mountain meadow soil, yellow brown soil and red soil and the azonal soil include black limestone soil, red limestone soil, purple soil, paddy soil and alluvial soil. The most widely distributed soils are the red soil, purple soil and paddy soil, developed from parent materials such as shale, sandstone, purple rocks and Quaternary red clay, with acid acid characteristics.

34. Hydrology. Most of Hunan Province lies in the basins of four major tributaries of the Yangtze River: The Xiang, the Zi, the Yuan and the Lishui Rivers converge on the Yangtze River at Lake Dongting in the north of Hunan Province. The center and northern parts are low and a U-shaped basin, open in the north and with Lake Dongting as its center. Lake Dongting is the largest lake in the province and the second largest freshwater lake of the PRC. The water quality of water bodies which flow nearby 5 TVET institutions with civil works have all been investigated and reported on in the TEIAR. The results are summarized in Table IV.3. Liuyang River section failed to meet Class IV standard of the Water Quality Classification for Water Bodies under National Standard GB3838-2002 due to large amount of untreated domestic sewage from Changsha city directly discharged into the downstream of the river.

Table IV.3: Surface water bodies nearest to subprojects with civil works Subprojects Nearest water body Water Quality

pH CODMn NH3-N (mg/L) (mg/L)

Changsha Social Work College Liuyang River 7.34-7.61 0.797-2.740 2.8-6.9

Hunan Industry Polytechnic Liuyang River 7.34-7.61 0.797-2.740 2.8-6.9 Hunan Modern Logistics Liuyang River 7.34-7.61 2.8-6.9 0.797-2.740 Occupation Technical College Yueyang Vocational College Nanhu Lake 8.1 5.9 1.3 Zixing Secondary Vocational Xiaodongjiang 7.59 0.5 0.024 School Source: TEIAR, 2012

35. Groundwater. There are no sensitive groundwater aquifers near project sites. Site dewatering is not anticipated for foundation construction as depth of groundwater is below foundation limits at all sites. No significant impact to groundwater resources is anticipated in either the construction or operation phases of the project.

36. Air and Noise Environment. Monitoring results of Project towns/townships in all districts and counties show that for the principal air pollution parameters (sulfur dioxide, 3 nitrogen dioxide, and PM10) in the areas meet the Grade-II standard (SO2 = 0.15 mg/m , NO2 = 3 3 0.12 mg/m , PM10 = 0.15 mg/m ) of Ambient Air Quality Standard (GB3095-1996) except for the NO2 of Changsha Social Work College and PM10 of Hunan Industry Polytechnic due to the heavy traffic flow outside the campus. The ambient acoustic environment for subproject locations in all districts and counties meet either Category 1 or Category 2 standard of the Urban Ambient Acoustic Quality Standard (GB 3096-2008). Table IV.4: Air and Noise Quality in Project Areas Noise SO2 NO2 PM10 Suboutputs 3 3 3 (dB(A)) (mg/m ) (mg/m ) (mg/m ) Day Night Changsha Social Work College 0.05 0.145 0.032 57.4 47.9 Hunan Industry Polytechnic 0.043 0.057 0.132 51.8 47.3 Hunan Modern Logistics Occupation 0.029 0.059 0.122 57.3 46.7 Technical College Yueyang Vocational College 0.019 0.049 0.083 54.0 45.1 Zixing Secondary Vocational School 0.032 0.033 0.105 55.8 45.9 PRC standard GB3095-1996 and GB3096-2008 0.15 0.12 0.15 60 50

Source: TEIAR, 2012

B. Ecological Resources

37. The natural vegetation of Hunan was originally dense deciduous and coniferous forest. Over the centuries, as the population has increased, all the lowlands and much of the highlands have been cleared to make way for cultivation. Despite this vast deforestation, however, large stands of pine, cedar, bamboo, and camphor are found in the western highlands. Other important trees and shrubs include tung (from which tung oil is obtained), tea (from which tea seed oil is obtained), and liquidambar. Bamboo groves planted along the

24 roadsides are characteristic of Hunan and supply the province’s handicraft industries. As elsewhere in central and southern China, groves of bamboo, camphor, and cedar are usually found around villages, contributing greatly to the charm of the countryside. 38. Hunan traditionally has had a wide range of fauna, including such large mammals as tigers, leopards, wolves, and deer. However, human encroachment has led to the decline and near-disappearance of many species. Birdlife is abundant, and Dongting Lake is a major habitat for aquatic birds in East Asia; notable species include the lesser white-fronted goose (Anser erythropus), hooded crane (Grus monacha), and the Chinese sparrowhawk (Accipiter soloensis). The lake also abounds in fish, including many species of carp, and it is home to the endangered finless porpoise (Neophocaena phocaenoides).

39. Vegetation on the campuses of the TVET institutions targeted by the project is strongly affected by current land use is thus different from site to site (Table IV.5). The TEIAR recorded no rare or endangered wildlife species or impingement of the proposed works on any protected area or habitat area.

Table IV 5: Current land use and vegetation on areas of campuses Sub-projects Current land use Vegetation Reserved open space in the Changsha Social Work College Scattered trees and shrub existing campus Automotive Industry Training Centre : temporarily used for driving training

Hunan Industry Polytechnic Scattered trees and shrub Mechanical Engineering Training Centre: reserved open space in the existing campus

Hunan Modern Logistics Temporarily pavement yard, Car parking Occupation Technical College no vegetation Reserved open space in the Yueyang Vocational College Lawn, scattered shrub existing campus Zixing Secondary Vocational Reserved open space in the Leveling ongoing. No School existing campus vegetation Source: Project Preparatory Technical Assistance

C. Social and Economic Conditions

40. GDP. In 2011, Hunan’s nominal GDP was 1.90 trillion yuan (US$300 billion). The per capita GDP was 20,226 yuan (US$2,961) compared to the PRC’s overall per capita GDP of CNY29,992. This places Hunan Province in the top half of the 31 provinces ranked in the Chinese Statistical Yearbook that year. The annual per capita disposable income of urban households – CNY18, 844– is 1.4% lower than the national average of 19,109 CNY. On this latter indicator, Hunan Province ranks 13th out of the 31 provinces (Table IV.6).

Table IV.6: Per Capita Income and GDP, PRC, Hunan and Beijing Per Capita Disposable Per Capita Net Income Per Capita GDP Income of Urban of Rural Households (CNY) Households (CNY) (CNY) 2011 Ranking 2011 Ranking 2011 Ranking Hunan 29,880 20 18,844 13 6567 15 Beijing 75,943 2 29,073 2 13,262 2 PRC 29,992 - 19,109 - 5,919 - Source: Chinese Statistics Yearbook, 2011 41. Economy, Poverty. Aside from its strong agricultural sector, in recent years Hunan has grown to become an important center for steel, machinery and electronics production, especially as PRC's manufacturing sector moves away from coastal provinces such as Guangdong and Zhejiang. The industrial centre of Hunan Province is centered along the Xiangjiang River in the cities of Changsha, Zhuzhou and Xiangtan, accounting for 58 to 62% of the province’s GDP. 70% of the province’s large and medium-sized enterprises are concentrated along the Xiangjiang River, which forms an industrial corridor.

42. Demographics, ethnic minorities. The population of Hunan is 64,400,700 consisting of forty-one ethnic groups. Its population grew 6.17% (3,742,700) from its 1990 levels. According to the 2000 census, 89.79% (57,540,000) identified themselves as Han people, 10.21% (6,575,300) as minority groups. The minor ethnic minority groups include Tujia, Miao, Dong, Yao, Bai, Hui, Zhuang, and Uyghurs. The distribution of these populations among the Project’s districts and counties is shown in Table IV.7.

Table IV.7: Ethnic Minority Profile in the Project Area, 2000 Region Ethnic Minority Population (persons) % of Total Population Types Huaihua 1,793,961 38.67 Miao, Dong Yueyang 7,952 0.16 Tujia, Miao Changsha 48,564 0.97 Tujia, Miao Chenzhou 77,736 1.8 Yao Zhuzhou 16,562 0.46 Tujia, Miao, Yao Source: 2000 census

43. Physical cultural resources. Hunan province is renowned for its sites of cultural and historic interest. Major scenic sites include Mount Heng near Hengyang, the southernmost of PRC’s five sacred mountains; the Wulingyuan scenic area near Zhangjiajie, designated a World Heritage site in 1992; and Dongting Lake itself, with its many natural areas and historic features such as Yueyang Tower (Yueyang Pavilion) at Yueyang on the north shore of the lake—one of the three famous pavilions south of the Yangtze River. Other historic sites include the Mawangdui tomb complex of the Xi Han period at Changsha and Mao Zedong’s birthplace at Shaoshan (west of Xiangtan). No physical cultural resources have been identified in the project’s area of direct influence.

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

A. Scoping of Potential Impacts, Sensitive Receptors

44. The potential impacts were scoped during the EIA process in order to (i) identify the relative significance of potential impacts from the activities of the proposed outputs and suboutputs; (ii) establish the scope of the assessment which assists in focusing on major, critical, and specific impacts; and (iii) enable flexibility in regard to consideration of new issues, such as those that reflect the requirements by ADB’s SPS.

45. The scoping process showed that Output 2, involving civil works in 5 vocational colleges and secondary schools, was the only component with potential environmental impacts. To ensure that project facilities will be safe, energy efficient and green, the LDIs will ensure that all buildings will comply with relevant design standards and codes, including but not limited to: GB 50189-2005 (Design Standard for Energy Efficiency of Public Buildings); GB 50176-1993 (Thermal Design Code for Public Buildings); GB/T 50378-2006 (Evaluation Standard for Green Buildings); and GB 50099-2011 (Code for design of school). 46. In addition, the PPTA consultant has drafted a campus greening strategy (see summary in Appendix 3). The strategy aims to create a healthy, ecological, economic and socially responsible living and learning environment for all students and staff and it is intended to serve as a working tool for the development of environmental management systems (EMS).

47. During the construction phase, the major negative environmental impacts are associated with increased level of noise and dust due to the usage of heavy vehicles and building mechanization. In the phase of construction, waste soil and construction debris will be generated because of excavation, soil back cover, concrete structure, etc. During the operation phase, no significant environmental impacts are anticipated. Minor concerns include noise from the air-conditioners and ventilation facilities, practice training wastes, municipal solid waste and domestic sewage. The results of the scoping are shown in Table V.1 below.

Table V.1: Impact Scoping Project Assessment Potential for Impact Phase Item Wastewater Domestic sewage from workers; Washing wastewater;

Air Vehicles and exhaust gas from mechanical facilities Noise from bulldozers; excavators and loader; pile driving machines; Construction Noise concrete mixer; vibrator and electric saw; hoist and lifter Solid waste Municipal and construction wastes

Soil Erosion with surface runoff Waste cooling water containing oil; domestic sewage from training Wastewater buildings; Welding fume during practice training and sprayed organic solvent Operation Air during coating; Noise from air-conditioners and ventilation facilities; mechanical Noise training equipments. Solid waste Municipal waste and waste from mechanical practice Source: Project Preparatory Technical Assistance

48. Sensitive receptors. During the environment impact assessment of the project outputs with civil works, sensitive receptors within and around the campuses of the involved TVET campuses were identified. These are listed below.

Table V.2: Sensitive Receptors Within Project Area of Influence

Distance to Sub-outputs Sensitive Receptors Sensitivities construction site Teaching building 60m Noise, air Changsha Social Work College Dormitory 50m Noise, air

Hunan Industry Polytechnic None - - Hunan Modern Logistics Dormitory 30m Noise, air Occupation Technical College Residential area (under 60m Noise, air Yueyang Vocational College construction) Dormitory and dining hall 50m Noise, air

Zixing Secondary Vocational Dormitory 110m Noise, air School Residential area 20m Noise, air Source: TEIAR, 2012

B. Impacts and Mitigation Measures during the Construction Phase

49. The following impacts and mitigation measures relate to the civil works at TVET colleges and schools, where the potential environmental impacts are expected during project implementation.

1. Impacts to Physical and Biological Environment

50. Impacts on Soil. Three types of potential impacts on soil include: (i) soil erosion; (ii) soil contamination; and (iii) inappropriate management of spoil disposal. (i) Soil erosion: May be caused by construction, excavation, and borrow pits, stockpiles and spoils from earthwork during construction of buildings and grading. The factors that are expected to contribute to accelerated erosion in the project area are winds and rainfall, especially during the rainy months of April to September. Construction works should be programmed to minimize soil excavation works in rainy seasons. If erosion prevention measures described below in the construction phase are implemented, no significant induced soil erosion is anticipated. (ii) Soil contamination: Contamination of soil in the construction phase may result from the inappropriate transfer, storage, and disposal of petroleum products, chemicals, liquids and solid waste. (iii) Spoil disposal: Significant spoil disposal will not be required, and potential impacts will be short-term and localized.

51. Mitigation of impacts on soil. The construction sites in the TVET institutions targeted by the project are relatively small and the impacts on soil will be mitigated through a number of remedial measures which are defined in the EMP, which will be incorporated in the bid documents and construction contracts:

(i) Soil erosion: If soil excavation cannot be avoided during rainy season or at any time of the year when rainstorms are likely, for preventing soil erosion, temporarily exposed slope surface should be covered e.g. by tarpaulin. Arrangements should be in place to ensure that adequate surface protection measures can be carried out well before the arrival of rainstorm. Since disturbed areas are relatively small, the plan can be an overlay to the site plan showing how runoff will be controlled at site perimeter to control soil and water runoff, and how disturbed areas will be reclaimed. (ii) Soil contamination: (a) Store chemicals/hazardous products and waste on impermeable surfaces in secure, covered areas; (b) Remove all construction wastes from the site to approved waste disposal sites; (c) Establish emergency preparedness and response plan (Spill Management Plan); (d) Provide spill cleanup measures and equipment at each construction site; (e) Conduct training in emergency spill response procedures.

52. Impacts on surface and groundwater. There are no sensitive surface waters near project sites. Site dewatering is not needed for foundation construction as depth of groundwater is below foundation limits at all sites. No impacts to groundwater resources are anticipated in either the construction or operation phases of the project. The major risk to groundwater and surface waters is through spills of dangerous substances, and inappropriate construction waste management. The potential risks to surface and groundwater will be mitigated through a number of activities defined in the EMP, which will be incorporated in the bid documents and construction contracts: (i) Develop and implement contingency plans for control of oil and other dangerous substances (Spill Management Plan); (ii) Construction wastes and materials (e.g. fuel) will be properly contained during construction. Wastes will be removed from the construction sites and taken to approved disposal facilities; (iii) Water collection basins and sediment traps will be installed in all areas where construction equipment is washed; (iv) Wastewater generated from the washing down of mixer trucks and drum mixers and similar equipment should wherever practicable recycled. The discharge of wastewater should be kept to a minimum. Surplus wastewater and wastewater generated from building construction activities, including concreting, plastering, cleaning of works and similar activities should be discharged in to sewer after removal of solids in a silt removal facility and pH adjustment as necessary; (v) Sewage from toilets, kitchens and similar facilities should be discharged into the sewer. If there is no foul sewer in the vicinity, a septic tank and soakaway system have to be provided.

53. Impacts on air quality. Minor temporary air quality impacts during the construction stage of the project are anticipated due to fugitive dust generation in and around the TVET campuses. Minor increases in the level of nitrogen oxides (NOx) and sulphur oxides (SOx) from construction plants and machinery are expected. These construction phase impacts will be localized and temporary, but could affect TVET students and staff as well as nearby residential areas. The potential impacts on air quality will be mitigated through a number of activities defined in the EMP. The civil works contract documents will specify that: (i) Water will be sprayed on construction sites where fugitive dust is generated; (ii) Fuel & chemicals will be covered / stored to minimize emissions; (iii) Trucks carrying earth, sand or stone will be covered with tarps or other suitable cover to avoid spilling;

(iv) Construction vehicles and machinery will be maintained to a high standard to ensure efficient fuel-burning; (v) Air quality monitoring will be undertaken in around the TVET campuses to confirm impact of project in accordance with the environmental monitoring plan; (vi) Contractors and PIUs will regularly consult TVET students and staff as well as nearby residents to identify concerns, and implement additional measures as necessary.

54. Solid waste management. Inadequate disposal of construction wastes could have adverse impacts on soil, water and health of workers and the community. Waste streams will include inert construction wastes (soil, debris, concrete etc), municipal type wastes (construction workers’ food and packaging wastes from construction consumables) and hazardous wastes (fuel containers, oil filters, oily rags etc.). The potential impacts arising from solid waste production and disposal will be mitigated through a number of activities defined in the EMP, which will be incorporated in the bid documents and construction contracts: (i) Storage and containment: Provide appropriate waste storage containers for worker’s construction and hazardous wastes; Install confined storage points of solid wastes away from sensitive receptors, regularly haul to an approved disposal facility; (ii) Use of contractors: Use licensed contractors to remove wastes from the construction sites; (iii) Management: Prohibit burning of waste.

55. Noise. The major sources of noise pollution are movement of construction vehicles, the haulage of construction materials to the construction sites and the noise generating activities at the sites. Concrete mixing and material movements are the primary noise generating activities and will be uniformly distributed over the entire construction period. Construction activities are expected to produce noise levels in the range of 80-95 dB (A). The predicted noise levels 100 m away from the noise source are 44~60dB (A); and those 200 m away from the noise source are 38~54dB (A). The major works will be carried out during the daytime. The potential noise impacts will be mitigated through a number of activities defined in the EMP, which will be incorporated in the bid documents and construction contracts: (i) Maintain equipment and machinery in good working order; undertake regular equipment maintenance, ensure compliance with PRC standard of GB 12523-2011; (ii) Locate sites for concrete-mixing and similar activities at least 500 m from sensitive areas; (iii) Reach an agreement with TVET management and nearby residents regarding the timing of heavy machinery work, to avoid any unnecessary disturbances; (iv) Monitor noise within TVET campuses and at nearby sensitive areas at regular intervals (as defined in the monitoring plan); (v) Install temporary anti-noise barriers to shield school buildings where non-compliance with Category 1 in Environmental Quality Standards for Noise (GB3096-2008) is monitored; and (vi) Seek suggestions from TVET management and potentially affected sensitive receptors to reduce noise annoyance. Information procedure of handling complaints through the Grievance Redress Mechanism will be disseminated.

56. Flora and Fauna. Field investigations have established that there are no threatened or endangered flora and fauna species within the project’s direct area of influence. Therefore, no adverse impact on such species is likely to occur during the construction activities. All sites will be re-vegetated after construction.

2. Socio-economic Impacts

57. Land acquisition, resettlement. The new buildings will be located within the reserved open space of the existing campus. There is no new land acquisition or resettlement under this Project. The Project is classified as category C for indigenous peoples. The assessment determined there will not be any negative impact on indigenous peoples. There will be no economic displacement associated with the Project.

58. Loss of Physical Cultural Resources. There is no record of important heritage or archaeological sites on the TVET campuses which will involve civil works. Should archaeological artefacts be discovered during site works, government requirements for excavating and preserving those items will be strictly followed. The mitigation measures will include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The relevant cultural relic protection authorities, as well as the IAs and PMO will be promptly notified, and construction will resume only after thorough investigation and with the permission of the appropriate authority. This requirement is included in the EMP.

59. Risks to community health and safety. Construction sites will be located close to existing school buildings and residential areas, representing a threat to public health and safety. The potential impacts on community health and safety will be mitigated through a number of activities defined in the EMP (in addition to the measures defined to control noise and dust). The contractors will implement the following measures: (i) Traffic management: Contractors will prepare temporary traffic control and operation plans in consultation with TVET management and local traffic police prior to any construction. The plans shall include provisions for diverting or scheduling construction traffic to avoid peak traffic hours, main teaching activities such as exams, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signage; (ii) Construction sites: Clear signs will be placed at construction sites in view of the TVET students and staff as well as the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc and raising awareness on safety issues. Heavy machinery will not be used after day light and all such equipment will be returned to its overnight storage area/position before night. All sites will be made secure, discouraging access through appropriate fencing whenever appropriate.

60. Occupational health and safety. The civil works contractors will implement adequate precautions to protect the health and safety of construction workers. The contractors will undertake the following activities: (i) Each contractor will appoint one staff to implement and supervise the implementation of site-specific EMPs (see below); (ii) Site-specific EMPs. Each contractor will prepare a site-specific EMPs on the basis of the EMP. It will be submitted to the PIUs and PMO for review and appraisal. In terms of health and safety, the site-specific EMP will include the following provisions: a. Clean water. Provide a clean and sufficient supply of fresh water; b. Sewage and wastewater. Provide an adequate number of latrines and other sanitary arrangements at the site and work areas, and ensure that they are cleaned and maintained in a hygienic state; c. Solid waste. Garbage receptacles at construction site, which will be periodically cleared to prevent outbreak of diseases will be setup;

d. Personal protection. Provide personal protection equipment (PPE), such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations, for workers; e. Emergency Preparedness and Response. An emergency response plan to take actions on accidents and emergencies, including environmental and public health emergencies associated with hazardous material spills and similar events will be prepared, and submitted to the IAs for review and appraisal. A fully equipped first-aid base at each construction site will be organized; f. Records Management. A Records Management System that will store and maintain easily retrievable records protected against loss or damage will be established. It will include documenting and reporting occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits. g. Safety communication. Ensure that safety, rescue and industrial health matters are given a high degree of publicity to all persons regularly or occasionally on the site. Posters drawing attention to site safety, rescue and industrial health regulations will be made or obtained from the appropriate sources and will be displayed prominently in relevant areas of the site; h. Training, awareness and competence. Train all construction workers in basic sanitation and health care issues, general health and safety matters, and on the specific hazards of their work;

61. Utilities provision interruption. At the TVET campus construction sites, construction may require relocation of local municipal utilities such as power, water, sewers and communication cables. Temporary suspension of services (planned or accidental) can affect the TVET institutions’ daily operation. The potential impacts on utilities provision will be mitigated through a number of activities defined in the EMP, to be incorporated in the bid documents and construction contracts: (i) Contractors will assess potential disruption to services and identify risks before starting construction; (ii) If temporary disruption is unavoidable the contractor will develop a plan to minimize the disruption and communicate the dates and duration in advance to all affected people, in conjunction with the TVET management.

62. Other Social Issues. No other social risks and/or vulnerabilities are anticipated as a result of the project. The project construction workers will be engaged locally. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men, (iii) pay equal wages for work of equal value, and to pay women’s wages directly to them; and (iv) not employ child or forced labour.

C. Environmental Impact and mitigation measures during Operation

63. No significant environmental impacts are anticipated during the operation of project facilities. Most operational issues, summarized in Table V.3 and discussed below, can easily be addressed by integrating new facilities into the TVET institutions’ and the county or district towns’ municipal services (water supply, solid waste and wastewater collection and disposal), or by ensuring compliance with relevant building codes (such as for ventilation, air-conditioning etc).

Table V.3: Anticipated Environmental Impact and Disposal Methods

Subproject Assessment Pollution Pollutant Anticipated Disposal/Measures Item Source Amount Hunan Air welding weld fume 1t/a Ventilation Industry machining NO2, CO little Ventilation Polytechnic coating VOC little Ventilation Wastewater Domestic SS, COD, 318 m3/d Municipal sewer sewage NH3-N Cleaning of oily Petroleum 10 m3/d Filtering tank equipments Waste 2 t/a Treated by dedicated Machine emulsion facility and then cleaning delivered to municipal sewer Solid waste Domestic 1 t/d Landfill by sanitation Municipal SW garbage contractor

Delivered to Machine Waste rag 0.1 t/a Hazardous Waste cleaning Treatment Centre Waste paint Little Ventilation and Coating bucket: little protection facilities reclaim Defective 100 t/a Reclaim as possible Training products practice

Mechanical Equipment 75-100 dB(A) Insulation facilities Noise Equipments noise Domestic SS, COD, 151 m3/d Municipal sewer Wastewater Changsha wastewater NH3-N Social Work Domestic 4 t/d Reuse as possible; College waste Landfill by sanitation Municipal SW contractor Solid waste Cardboard, 1 t/a Reuse as possible Training paper practice

Fan and air 75-85 dB(A) Insulation facilities Noise conditioner Hunan Domestic SS, COD, 20 m3/d Municipal sewer Wastewater Modern wastewater NH3-N Logistics Municipal SW Domestic 0.5 t/d Landfill by sanitation Solid waste Occupation waste Contractor Technical 75-85 dB(A) Insulation facilities Fan and air College Noise conditioner

Yueyang Domestic SS, COD, 71 m3/d Municipal sewer Wastewater Vocational wastewater NH3-N College Domestic 0.3 t/d Landfill by sanitation Solid waste Municipal SW waste contractor Fan and air 75-85 dB(A) Insulation facilities) Noise conditioner Zixing SS, COD, 56 m3/d Municipal sewer Wastewater Domestic Secondary NH3-N

Subproject Assessment Pollution Pollutant Anticipated Disposal/Measures Item Source Amount Vocational Domestic 0.1 t/d Landfill by Sanitation Solid waste Municipal SW School waste Contractor Fan and air 75-85 dB(A) Insulation facilities Noise conditioner Source: TEIAR, 2012

64. Water supply. The increase in water demand on the campuses as a result of the new buildings is small and the increased consumption can easily be met through the municipal water supply services. 65. Wastewater Collection and Treatment. The major source of water pollution during operation phase will be the wastewater from training buildings. The expected sewage amount per project building is indicated in Table V3. All of the TVET institutions are connected to the municipal sewer system. After simple pre-treatment by septic tanks, the sewage will be delivered to existing centralized WWTPs for further treatment. All WWTPs produce effluent which meets class 1B of GB 18918-2002. The cooling water from Hunan Industry Polytechnic will contain certain amount of oil. An oil separation tank will be installed. The IEE concludes that wastewater produced in the buildings financed by the Project will be managed adequately and will not cause any incremental impact on any receiving water body.

66. Solid waste. During operation, the TVET institutions will generate solid wastes such as paper, cardboard, plastics, and general refuse by routine activities. Domestic solid waste will be segregated into biodegradable and non-biodegradable waste. Where recycling is feasible, these wastes will be stored in segregated bins and removed as required. Other solid wastes will be removed by sanitary contractors on a regular basis and disposed to designated municipal landfill sites. 67. The amount of solid waste to be disposed can be reduced through the application of ―3R’s‖: Reduce, Reuse, and Recycle. In the framework of EMS development (Output 4), options to reduce, re-use and recycle waste on campuses will be investigated. 68. Hazardous waste. With exception of the Hunan Industry Polytechnic, there will be no hazardous solid waste requiring dedicated treatment. At the Hunan Industry Polytechnic, solvent-contaminated rags are stored and transported in non-leaking, closed, fire-resistant containers kept away from sources of ignition. Containers must be in good condition and sufficient to prevent the release of contaminants to the air. Air drying solvent-contaminated rags to allow volatile constituents to evaporate will not be allowed. Containers will be transported to the Changsha Hazardous Waste Treatment Facility.

69. Health and safety. No significant health and safety issues are anticipated during operation of the project facilities, with exception of welding practices. Welding is a hazardous process. The fume produced during welding is comprised of solid particles, usually less than 1.0μm in size, formed by condensation and oxidation of the vaporized metal. These particles are capable of being deposited in the gas-exchange region of the lungs. Adequate ventilation, including fans and local ventilation attached to the welding equipments must be provided for all welding process to remove fumes. For all welding and cutting operations, students must wear appropriate eye and face protection and clothing. Hearing protection may also be required depending on the levels of noise to which students are exposed.

VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Legislative Framework for Public Consultation

70. Public participation and consultation in the evaluation of project planning, feasibility study, design and implementation is an important environment safeguards requirement; it can directly reflect the public’s perceptions on environmental quality in the project’s area of influence. Relevant provisions in the Environmental Protection Law of PRC and the Regulations on the Administration of Construction Project Environmental Protection (Order of the State Council, No. 253) require that ―Environmental Impact Report formulated by construction unit shall be in accordance with relevant laws to solicit the opinions of units concerned and inhabitants of project construction site". ADB’s Safeguard Policy Statement (2009) also has detailed and strict requirements on meaningful participation, consultation and information disclosure. The consultation process for this Project therefore followed both the PRC requirements and the ADB requirements.

71. The PRC EIA requirements and attendant public consultation requirements differ among the subproject sectors. Information disclosure and public consultation for each subproject involving civil works have been conducted during preparation of the FSR, the domestic TEIAR and the project IEE. Information disclosure and consultation included internet disclosure, informal communication with key stakeholders which included residents, local authorities and sector specific institutions and authorities; and a questionnaire survey.

B. Information Disclosure

72. Proposed civil works, including type and location of new buildings, as well as construction schedule, were disclosed in all campuses where civil works will take place (Table VII.1). The IEE was disclosed on ADB’s project website. The domestic TEIAR is available from the PMO on request.

Table VII.1: Summary of Information Disclosure Information Disclosure Subproject Date Location Posted Changsha Social Work College 24th September 2012 In the campus Zixing Secondary Vocational School 25th September 2012 In the campus Hunan Modern Logistics Occupation Technical College 24th September 2012 In the campus Yueyang Vocational College 26th September 2012 In the campus Hunan Industry Polytechnic 24th September 2012 In the campus Source: Draft TEIAR, 2012

Figure VI-1: Disclosure of project information within TVET campuses Source: Draft TEIAR, 2012

C. Consultation

73. Public consultation. Meaningful public consultation for each subproject was undertaken by the EIA Institute and PPTA consultant, which information is summarized in the table below.

Table VII.2: Summary of Public Consultation Public Consultation Subproject Date Method Changsha Social September-October 2012 Questionnaire survey Work College Zixing Secondary September-October 2012 Questionnaire survey Vocational School Hunan Modern Logistics September-October 2012 Questionnaire survey Occupation Technical College Yueyang Vocational September-October 2012 Questionnaire survey College Hunan Industry September-October 2012 Questionnaire survey Polytechnic Source: Draft TEIAR, 2012

Table VII.3: Background Information of Participants in Questionnaire Survey Sex Age Education Subproject No. Primary High University M F <20 20-40 40-60 >60 school school or above Changsha Social Work 9 4 5 1 5 3 0 0 7 2 College Zixing Secondary Vocational 8 4 4 0 3 0 5 0 3 5 School Hunan Modern Logistics 22 10 12 5 13 2 2 0 4 18 Occupation Technical College Yueyang Vocational College 10 5 5 6 4 0 0 0 0 10 Hunan Industry Polytechnic 10 4 6 2 6 2 0 0 1 9 Source: Draft TEIAR, 2012

Table VII.4: Results of Consultation Questionnaire Questionnaire Respondents Support Subproject Distributed Returned Project (%) Changsha Social Work College 9 9 100% Zixing Secondary Vocational 8 8 100% School Hunan Modern Logistics 22 22 100% Occupation Technical College Yueyang Vocational College 10 10 100% Hunan Industry Polytechnic 10 10 100% Source: Draft TEIAR, 2012

74. Based on the results shown in the above table, 100% of the consulted public is supportive of the project.

75. The suggestions provided by the consulted public included: (i) high noise mechanization activities should be forbidden between 10:00 pm to 6:00 am; (ii) to provide septic tanks for the sewage during construction phase to avoid pollution to the surroundings and take appropriate measures to control soil erosion; (iii) to implement dust control measures. All these considerations have been included as mitigation and management measures in subproject designs and in the EMP.

76. Consultation of key institutions. The consultation process also involved frequent exchange with key institutional stakeholders, including the HED, Hunan Finance Department and Hunan Environment Protection Department as well as the TVET schools. The project team have undertaken twice site visits during project preparation and shared the environmental requirements and anticipated impacts with the TVET institutions. During two ADB missions, PPTA consultants provided training on ADB’s safeguards requirements. In addition, a questionnaire survey was conducted to assess the TVET institutions current environment, health and safety management practices and policies, and to identify gaps as compared to PRC and international standards and best practices. The consultation activities to date are summarized in Table VI.5.

Table VI.5: Consultation of key institutions during Project Preparation Sub-output Meeting with Consultation with TVET institutions Consultation Government Meetings Questionnaire Questionnaire Agencies 1st 2nd 3rd Changsha Social Work Jun Aug Sep Jun-Oct 2012 Sep 2012 Sep-Oct 2012 College 2012 2012 2012 Zixing Secondary Jun Aug Oct Jun-Oct 2012 Sep 2012 Sep-Oct 2012 Vocational School 2012 2012 2012 Hunan Modern Jun Aug Oct Logistics Occupation Jun-Oct 2012 Sep 2012 Sep-Oct 2012 2012 2012 2012 Technical College Yueyang Vocational Jun Aug Oct Jun-Oct 2012 Sep 2012 Sep-Oct 2012 College 2012 2012 2012 Hunan Industry Jun Aug Oct Jun-Oct 2012 Sep 2012 Sep-Oct 2012 Polytechnic 2012 2012 2012 Source: PPTA Consultant team, 2012

77. The self-assessment of existing environment management systems revealed that (i) all schools have procedures in place and responsibilities assigned to manage environmental

37 services (such as water supply, wastewater, solid waste, emergency response, health and safety), but there is no coordination of these services, and no school has a vision or plan related to campus greening and sustainability; (ii) the TVET schools have little awareness on what an environmental management system is, and what benefits it could bring; and (iii) there is an interest in exploring options to strengthen and formalize existing environmental management systems, as long as it comes without costs for the TVET institutions involved.

78. In addition, all five institutions were civil works are involved expressed their willingness and ability to support in EMP implementation supervision.

D. Future Public Consultation and Information Disclosure

79. Public involvement during construction and operation phases will mainly rely on informal interviews with TVET staff and students and nearby residents. The PIU-ES and LIEC will consult potentially affected people during their regular site inspections. The Project’s environmental information will be disclosed by the EA and ADB. Annual environment monitoring and EMP implementation reports will be disclosed on ADB’s project website.

VII. GRIEVANCE REDRESS MECHANISM

80. A grievance redress mechanism (GRM) was defined in compliance with ADB’s SPS (2009) requirement to prevent and address community concerns and assist the project to maximize environmental and social benefits. In addition to serving as a platform to resolve grievances, the GRM has been designed to help achieve the following objectives: (i) open channels for effective communication, including the identification of new environmental issues of concern arising from the project; (ii) prevent and mitigate any adverse environmental impacts on communities caused by project implementation and operations; (iii) improve mutual trust and respect and promote productive relationships with local communities; and (iv) build community acceptance of the project.

A. Current Practice in the PRC

81. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Moreover, based on the regulation (Decree No. 431), former State Environmental Protection Administration published updated Measures on Environmental Letters and Visits (Decree No. 34) in 2006.

82. As the current practice, when residents or organizations are negatively affected by project activities, they may complain to the contractors and IAs by themselves or through their community committee; others may complain directly to the nearest EPB before they finally appeal to the court. Among the agencies involved, the local EPB takes the leading coordination role in dealing with the environmental complains from the public.

B. Proposed Mechanism

83. In consultation with the PMO and the IAs, it was agreed that a Public Complaint Center (PCC) will be established under the PMO. The PCC will instruct contractors, IAs and PIUs, and construction supervision companies (CSC) if people complain about the Project. The PCC will coordinate with the local government and EPB, if necessary, and will be supported by the environment specialist of the project management consultancy services.

84. The GRM will be accessible to staff and students of TVET colleges and schools, all members of the community, including more vulnerable groups such as women and youth.

85. The contact persons for different GRM entry points (contractors, IAs, PIUs, PCC) will be identified prior to construction. The contact details for the entry points (e.g. phone numbers, e- mail addresses, etc.) will be publicly disseminated on information boards at construction sites.

86. The PCC will establish a GRM tracking and documentation system. The system will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) a process for informing stakeholders about the status of a case; and (iii) a procedure to retrieve data for reporting purposes, including the periodic reports to ADB.

C. Types of Grievances Expected and Eligibility Assessment

87. Public grievances addressed by the GRM will most likely be limited to environmental issues during the construction phase. Grievances will most likely include dust emissions, construction noise, disposal of waste materials in inappropriate places, and inadequate construction site safety.

88. Eligible complaints include those where (i) the complaint pertains to the Project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; and (ii) the nature of the issue is outside the mandate of the environment GRM (such as issues related to allegations of fraud or corruption). Complaints ineligible to the Project or the GRM will be recorded and passed onto relevant authorities, meanwhile, the complainant will be informed of the decision and the reasons for rejection.

D. GRM Procedure and Timeframe

89. Procedures and timeframes for the grievance redress process are as follows: (i) Stage 1: If a concern arises during construction or operation, the affected person will submit the complaint to one of the GRM access points (contractor, PIU, PCC, IA). Whenever possible, the contractor and PIU/IA will resolve the issue of concern directly with the affected person. The contractor or PIU/IA will give a clear reply within one week. If successful, the PIU/IA will inform the PCC accordingly.

(ii) Stage 2: If no appropriate solution can be found during Stage 1, the PIU (or IA during operation) has the obligation to forward the complaint to the PCC. The AP may also decide to submit a written or oral complaint to the PCC directly. For an oral complaint, proper written records must be made. The PCC will assess the eligibility of the complaint, identify a solution in consultation with the complainant, PIU, IA and contractor, and provide a clear reply for the complainant within five (5) working days. The environment specialist of the project management consultancy services will assist the PCC in replying to the affected person. The PCC will inform the ADB project team on the complaint. The contractors during construction, and the IA during operation, will implement the agreed upon redress solution and report the outcome to the PCC within two (2) weeks.

90. The PIU, IA, contractor and PCC shall accept the complaints/grievances lodged by the AP free of charge. Any cost incurred should be covered by the contractor or the contingency of the Project. The grievance procedures will remain valid throughout the duration of project construction and until project closure.

Grievance by individuals or groups

Oral or written Oral or written STEP 1 grievance grievance (1 week)

IAs, PIUs, Contractors problemSolvehoc ad

Inform if solved Forward if not solved ad hoc

PCC (PMO Office) Report ADB

(annually) report Record complaint Not eligible Inform complainant, refer to alternative mechanisms STEP 2 Assess eligibility of complaint

(2 weeks) eligible

Hearing of different parties IA, PIU,

Supervise, Supervise, monitor Inform, consult Identify mitigation measures Contractors, Identify responsibilities complainant, EPB advise

Grievance related Grievance related to to construction design/operation

Contractors IA

Figure VII.1: Grievance Redress Mechanism

VIII. ENVIRONMENTAL MANAGEMENT PLAN

91. An environmental management plan (EMP) has been prepared for the Project. It is an essential document to ensure the implementation of mitigation measures. The full EMP will be attached to the Project Administration Manual (PAM) of the Project.

92. The EMP defines all potential impacts of different project outputs and the mitigation and protection measures with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP is based on the TEIAR and feasibility study report (FSR), and draws on the findings of the project IEE, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

93. The EMP defines: (i) responsibilities and authorities for EMP implementation;, (ii) summary of impacts and mitigation measures; (iii) environmental monitoring and inspection plan; (iv) institutional strengthening and training plan; (v) reporting requirements; (vi) public consultation plan, (vii) cost estimates, and (viii) mechanism for feedback and adjustment. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design.

94. The full EMP is presented in Appendix 1.

IX. CONCLUSIONS

A. Project Justification

95. The proposed Project will help improve the quality and relevance of technical and vocational education and training (TVET) in the People’s Republic of China (PRC) by improving TVET institutional capacity, training of instructors, and curriculum development; fostering innovation through industry-TVET collaboration; developing digital TVET to maximize resource sharing among vocational schools and colleges, and supporting sustainable TVET campuses. The proposed project is the first ADB-financed investment project for education and training in the PRC and is expected to play a demonstration role for TVET in the other provinces of the PRC. 96. The PRC opened its economy and launched economic reforms in 1978, producing three decades of sustained growth. GDP grew at an average annual rate of over 9 percent during this period, sufficient to lift more than 500 million out of poverty. With continued educational expansion, average educational attainment increased from 3.1 years in 1978 to 8.9 years in 2009. Despite impressive growth, inequalities among well-developed coastal areas and inland regions, as well as among social groups have also increased. Addressing imbalances in PRC’s growth to promote greater social harmony has become the main driver of the policy agenda as reflected in the government’s 12th five-year plan (FYP). In 2010, the PRC government identified TVET as the key target for educational expansion to develop a skilled workforce, and approved the National Long Term Strategy on Education (2010-2020), which aims for greater education investment and identifies TVET development as one of the top 10 priorities. One of the TVET priorities is the need to engage enterprises in skills development by strengthening enterprise-school partnerships. While diverse initiatives in enterprise-school partnerships are emerging, a legal and regulatory framework to guide practices in this area is lacking. There is a need for broader policies to encourage school-enterprise cooperation as well as a set of policy frameworks and operational guidelines to ensure a consistent development of school- enterprise partnerships and student internship programs at the local level. 97. Project innovations. The Project is intended to demonstrate good practices in TVET development by piloting innovative approaches such as (i) strengthening TVET-industry linkages by supporting TVET innovation incubators; (ii) institutional capacity building designed to support strategic planning and effective TVET management; (iii) introducing competency- based curriculum (CBC) and training of instructors; (iv) supporting greening of the TVET campuses by designing, constructing and maintaining buildings in accordance with newest green building codes, promoting environmental friendly and energy efficient public procurement, and pilot-testing the establishment of environment management systems (EMS) in TVET schools; and (v) developing online TVET courses to promote resource sharing between well- developed vocational colleges and less developed secondary vocational schools and to enhance TVET coverage through distance learning. 98. Strategic fit. The project aligns with the PRC country partnership strategy of the ADB and supports ADB’s Education Policy and education sector strategies. The project supports the PRC’s 12th FYP 2011-2015, which prioritizes developing high-quality human resources, increasing scientific and technological innovations, and accelerating educational reform, including reform of TVET.

B. Environmental Assessment Findings

99. The main anticipated environmental impacts relate to the construction phase and include

43 dust, noise, wastewater and solid waste arising from construction of six buildings on five TVET campuses under Output 2.

100. At design stage, the design institutes will design all buildings in compliance with relevant design standards and codes for energy-efficient, safe and green public buildings, including but not limited to: GB 50189-2005 (Design Standard for Energy Efficiency of Public Buildings); GB 50176-1993 (Thermal Design Code for Public Buildings); GB/T 50378-2006 (Evaluation Standard for Green Buildings); and GB 50099-2011 (Code for design of school). Adherence to PRC green public procurement policies will be targeted for equipment and appliances procurement. 13,14

101. During construction, major anticipated impacts include noise, fugitive dust, solid wastes, and community and occupational health and safety risks. Overall, construction-related impacts are localized, short term, and can be effectively mitigated through the application of good construction and housekeeping practices and implementation of construction phase community and occupational health and safety plans.

102. During operation, no major environmental impacts are anticipated. The current environment services of participating schools were assessed, and it is concluded that incremental water supply, wastewater and solid waste generation resulting from the Project will not overburden existing services. The project’s potential impacts on community and occupational health and safety during operation were analyzed and corresponding mitigation measures have been proposed in the IEE and EMP. Output 4 of the Project will also provide expert support to involved colleges and schools in developing an environment management system (EMS). 103. An environmental management plan (EMP) has been developed for the design, construction, and operation phases of the Project. The plan will be incorporated into bidding documents for subproject construction. The EMP defines mitigation measures, monitoring requirements, and institutional responsibilities and costs for implementing the mitigation measures and the monitoring requirements.

C. Risks and Assurances

104. Project risks related to environment safeguards have been analyzed, and the assurances required to address these risks, have been defined. Risks relate to design features and operational plans which will avoid or mitigate impacts, but which rely on the implementers’ commitment and capacity to implement and consistently follow-up. The remainder relate to the likelihood of unexpected negative impacts. The major risks are listed below: (i) Design of Project facilities not complying with relevant design standards and codes related to energy-efficient, safe and green public buildings; (ii) Inadequate capacity of the EA and IAs in environment management, which could result in inefficient Project and EMP implementation;

13 The TVET institutions with civil works will include an analysis of the least cost options (including CAPEX and OPEX and net benefits of adhering to green codes) in the TOR of the design institutes during preparation of the detail design. 14 A rating weight will be assigned to equipment that meets green procurement standards during bid evaluation.

(iii) Inadequate environment, health and safety management systems in the schools and colleges.

105. Commitments by the EA and the IAs will be incorporated into the loan documentation as loan covenants to ensure that the measures are implemented in a timely and complete fashion, including: (i) a commitment to adhere to relevant design standards and codes for energy- efficient, safe and green public buildings; (ii) a commitment to adhere to PRC green public procurement policies 15 ; and (iii) a commitment to promote campus greening through the development of environment management systems (EMS) for schools and colleges targeted by the Project on the basis of the Campus Greening Strategy drafted for the Project (see summary in Appendix 3).

106. The overriding assurance required is that the EA and the local government bodies as appropriate will ensure that the full range of effective measures set out in the IEE and EMP are undertaken, and guarantees that the environmental management provisions and the environmental monitoring plan will be implemented effectively during project implementation, and that the implementation reports of the environmental management and monitoring plan in accordance with ADB requirements will be submitted in a timely fashion. Part of this monitoring and management commitment will be a commitment to implement and maintain an appropriate Grievance Redress Mechanism (GRM) covering the construction of all project subprojects.

D. Conclusion

107. The IEE concludes that as long as the environmental mitigation and management measures defined in the EMP are properly implemented, all adverse environmental impacts associated with the Project will be prevented, eliminated, or minimized to an acceptable level. The Project is feasible from an environment safeguards point of view.

15 As defined in (i) Public Procurement List of Environmental Labelling Products (managed by NDRC and MOF) which includes 21 categories of products, such as light vehicle, photocopier, computer, water-based paint, furniture, etc; and (ii) Public Procurement List of Energy Saving Products (managed by MEP and MOF), which includes 27 categories of energy saving products, such as air conditioner, refrigerator, lighting product, television set, electric water heater, computer, printer, monitor, etc. and 7 categories of water saving products, such as toilet, faucet, shower etc.

APPENDIX 1 – ENVIRONMENTAL MANAGEMENT PLAN (EMP)

I. Introduction

1. This Environmental Management Plan (EMP) is developed for the Hunan Technical and Vocational Education Demonstration Project (the Project) and defines all potential impacts of the Project outputs and the mitigation and protection measures with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the findings of the project IEE, the domestic EIA report, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

2. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design. The updated EMP will be disclosed on the ADB project website and included in the PAM. The updated EMP will also be included as a separate annex in all bidding documents. The contractors will be made aware of their obligations to implement the EMP, and to budget EMP implementation costs in their bids.

II. Institutional Responsibilities

3. Figure EMP.1 describes the proposed organizational structure for Technical and Vocational Education and Training Demonstration (TVET) Project.

EA, Project

Coordination Group ADB

PMO (including environment specialist) Local LIEC Government Project IAs bodies (Schools) and their （including EPB PIUs ）

Construction Design Contractors Institutes Supervision Companies

Advises (for project purposes) Oversees (for project purposes)

Figure EMP.1: TVET Project Implementation Organizational Structure

EMP - 3-1

4. As Executing Agency (EA), the Hunan Provincial Government (HPG) will be responsible for the overall implementation and compliance with the EMP including Environmental Monitoring Plan.

5. The HED on behalf of HPG will have the overall responsibility for coordinating project implementation in the project schools and organizing provincially managed activities. A Project Coordination Group (PCG) has been established jointly by the HED, the Provincial Finance Department (HFD), and Development & Reform Commission (HDRC) to oversee the preparation and implementation of the project and to provide overall guidance for the project. The PCG members are senior representatives from HFD, HDRC, and HED.

6. A Project Management Office (PMO) has been established in HED to direct project preparation and implementation activities, manage social and environmental impacts, monitor project progress and project impacts, and facilitate the communication and coordination with the ADB. The PMO is staffed primarily from HED, but also with representatives of the HFD and HDRC.

7. The PMO will have the overall responsibility delegated by the EA for supervising the implementation of mitigation measures, coordinating the Project level Grievance Redress Mechanism (GRM) and reporting to ADB. The PMO will assign one staff in charge to supervise the effective implementation of the EMP and to coordinate the Project level GRM. To ensure that the contractors comply with the EMP provisions, the PMO with the help and technical support of Loan Implementation Environmental Consultant (LIEC), will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals; (ii) environmental clauses for contractual terms and conditions; and (iii) major items in the IEE and EMP. In addition the PMO will prepare annual environment progress reports and submit them to ADB.

8. Implementing Agencies (IAs), Project Implementing Units (PIUs). The Project will include 13 IAs. The TVET institutions will be the IAs. Each of the IAs will set up a Project Implementing Unit (PIU) to coordinate preparation and implementation of its respective subproject. The PIUs will be fully staffed with technical experts and administrators in charge of school reform, procurement, financial management, disbursement, environment, monitoring, evaluation, and coordination. The PIUs will support the implementation of school activities. The PIUs, through the environmental supervisors (see below), will ensure that the EMP is carried out, and respond to any adverse impact beyond those foreseen in the IEE. The PIUs will also attend to requests from these agencies and ADB regarding the mitigation measures and monitoring program.

9. Environmental Supervisors (ES). Each PIU will appoint one ES to (i) review and approve contractors’ site-specific EMP; (ii) conduct site inspections following the site inspection checklist (Appendix 2); (iii) organize periodic environmental monitoring in compliance with the

EMP - 3-2 approved monitoring plan 16 ; (iv) act as local entry point for the project grievance redress mechanism (GRM); (v) assess the contractors’ compliance with the EMP and PRC environmental quality standards for ambient air, water and noise quality; (vi) submit semi-annual inspection and monitoring results to the contractors for information, and to the IA and PMO for verification and confirmation.

10. Construction Contractors will be responsible for implementing the mitigation measures during construction under supervision of the PIUs and the PMO. In their bids, contractors will be required to respond to the environmental management requirements defined in the EMP. Each contractor will be required to develop site-specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to the TVET institutions.

11. Loan Implementation Environmental Consultant (LIEC). Under the loan implementation consultancy services, one national LIEC will support the project with (i) project preparation, including EMP update; (ii) EMP training, (iii) annual environment monitoring and EMP progress reporting; (iv) identifying environment-related implementation issues and necessary corrective actions to be reflected in an action plan; (v) undertaking site visits as required; and (vi) provide expert support to IAs in developing environment management systems (EMS). The LIEC environmental consultant will be hired for seven person-months during project implementation. The LIEC will support the implementation of the EMP, including:

(i) assess the project outputs’ environmental readiness prior to implementation based on the readiness indicators defined in the EMP (Table EMP-5); (ii) update the EMP including monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget, institutional arrangements, etc, that may be required based on the detailed design; submit to ADB for approval and disclosure; ensure compliance with the PRC’s environmental laws and regulations, ADB’s Safeguard Policy Statement (2009) and Public Communications Policy (2011), and the World Bank Group’s Environmental, Health and Safety Guidelines; (iii) if required, update the IEE report for changes in the project during detailed design (for example if there is a major scope change) that would result in adverse environmental impacts not within the scope of the approved IEE; (iv) support the EA, PMO, PIUs and tendering companies in preparing tender documents; ensure that the bidding documents and civil works contracts contain provisions requiring contractors to comply with the mitigation measures in the EMP and that relevant sections of the project EMP (or updated EMP, if prepared) are incorporated in the bidding and contract documents; (v) assist the EA and PMO to establish a Grievance Redress Mechanism (GRM), and provide training for the PMO and GRM access points; (vi) Conduct regular EMP compliance verification, undertake site visits as required, identify any environment-related implementation issues, propose necessary corrective actions, reflect these in a corrective action plan;

16 Local environmental monitoring stations (under the local environmental protection bureaus) will be contracted to conduct environment impact monitoring (noise, air, water).

EMP - 3-3

(vii) assist the EA and PMO to prepare annual environmental monitoring and progress reports to ADB; (viii) provide training to PMO, IAs, PIUs and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance with the training plan defined in the EMP; and (ix) assist the PMO, IAs and PIUs in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities, GRM.

12. In addition, the LIEC facilitate a participatory process to establish an environment management system (EMS) in the five campuses with civil works. The LIEC will help these TVET schools establish a framework that will allow them to identify and manage their environmental responsibilities in a systematic way. The EMS will aim at ensuring continual improvement by incorporating ongoing monitoring, reviews, and revisions of the environmental procedures. The LIEC will help the TVET schools to develop simple business tools based on an internationally recognized methodology17 to improve their environmental performance.

13. Overall environmental responsibilities are outlined in Table EMP-2.

Table EMP-2: Environmental Responsibilities by Project Phase Responsible Phase Environmental Responsibilities Agencies Design institutes Incorporation of environmental mitigation measures in detailed designs Detailed PMO, PIUs, Update EMP based on detailed design, if necessary Design LIEC ADB Approve updated EMP, if necessary PMO, PIUs, Ensure that mitigation measures and the EMP clauses are incorporated in tendering Tendering tendering documents, civil works contracts and contractors’ site EMPs company LIEC, ADB Review tendering documents; confirm project’s readiness Develop site EMP; appoint one environmental specialist to coordinate site Contractors EMP implementation; ensure health and safety Coordinate GRM; supervise EMP implementation; prepare annual PMO environmental progress report (with support of LIEC) Assign one environmental supervisor (ES); conduct environmental PIUs (ES) inspections and regular monitoring; prepare quarterly environmental Construction inspection and monitoring reports; act as local GRM entry point Advise on the mitigation measures; provide comprehensive technical support to PMO, IAs and PIUs for environmental management; conduct LIEC training; conduct annual EMP compliance review; support PMO in preparing annual environmental progress reports. Conduct review missions; review and approve annual environmental ADB progress reports, including disclosure Conduct periodic inspections of all construction projects relative to EPBs compliance with PRC regulations and standards Conduct EMP compliance review, instruct IAs on environmental Operation PMO management requirements; prepare annual environmental progress report for first year of operation

17 E.g., U.S. EPA, Office of Environmental Stewardship (2007). Environmental Management Guide for Colleges and Universities. http://www.epa.gov/region01/assistance/univ/emsguide.html

EMP - 3-4

Responsible Phase Environmental Responsibilities Agencies Implementation of mitigation measures as defined in EMP; develop and IAs implement Environment Management Systems (EMS) Conduct periodic inspections to confirm compliance with PRC standards EPBs and regulations Review and approve environmental progress report, disclose on ADB ADB project website

ADB = Asia Development Bank; DI = Design Institute(s); LIEC = Loan Implementation Environ. Consultant; PMO = Project Management Office; PIU = Project Implementing Unit (under IA); EA = Executive Agency; IA = Implementing Agency (TVET schools); EMP = Environmental Management Plan; EPB = Environment Protection Bureau; ES = Environmental Supervisor (under PIU); EMS = Environment Management System.

III. Summary of Potential Impacts and Mitigation Measures

14. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified in the IEE as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table EMP-3. The contractors will reflect these mitigation measures in their site EMPs, to be reviewed and approved by the ES of the PIUs and the LIEC.

15. The effectiveness of these measures will be evaluated based on the results of the environmental inspections and monitoring conducted by the PIUs (through their ES), and through EMP compliance monitoring conducted by the LIEC.

16. Many of the mitigation measures will be shouldered by construction contractors in the construction phase. Monitoring and supervision costs will be shouldered by the AIs. The PMO will ensure that adequate funds for mitigation measures and monitoring activities have been allocated by the contractor and IAs, respectively.

EMP - 3-5

Table EMP.3: Anticipated Impacts, Mitigation Measures Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency A. Pre-construction Phase 1. Detailed Institutional Not applicable IAs to establish PIUs; IAs, PIUs, PMO EA, ADB Project readiness Design Stage strengthening PIUs to engage environment specialists (ES); assessment by LIEC PMO to engage one environment specialist (ES) and one LIEC; Facility Design complying All new buildings Design buildings in compliance with relevant DIs, architects EA Approved detailed with relevant national design standards and codes for energy-efficient, designs standards, including safe and green public buildings, including but not health and safety, green limited to: GB 50189-2005 (Design Standard for and energy-efficient Energy Efficiency of Public Buildings); GB 50176- building codes and 1993 (Thermal Design Code for Public Buildings); specifications. GB/T 50378-2006 (Evaluation Standard for Green Buildings); and GB 50099-2011 (Code for design of schools); Ensure use low or no VOC-emitting materials (including paints, coatings, adhesives, carpet and furniture’s) to ensure high indoor air quality; Ensure that the building envelopes (external walls) are built to a good quality standard, using high quality insulating materials;

Updating EMP Not applicable Review mitigation measures defined in this EMP, LIEC, PIUs, PMO ADB Updated EMP approved update as required to reflect detailed design. by ADB and disclosed 2. Bidding and Bidding documents and Not applicable Include updated EMP of the IEE as annex to the DIs, IAs, PIU-ES, EA, PMO, ADB Bidding documents, Contract Award contractors qualifications Requests for Proposals; LIEC construction and supply Stage Include an environmental section in the TOR for contracts bidders; Ensure that construction and supply contracts are responsive to EMP provisions and mitigation and monitoring measures are adequately budgeted; Implement a ―Green Public Procurement‖ policy, with references to Public Procurement List of Energy-Saving Products (NDRC & MOF, 2011, or as updated) and Public Procurement List of Environmental Labeling Products (MEP & MOF, 2011, or as updated). Grievance Redress Not applicable Establish a GRM, appoint a GRM coordinator; PMO, PIU-ES, EA, ADB Operational GRM Mechanism (GRM) Brief and provide training to GRM access points LIEC (IAs, PIUs, contractors); Disclose GRM to affected people before construction begins. EMP Training Not applicable Provide training to IAs, PIUs and contractors on LIEC PMO, ADB Evidence of training provided, satisfaction EMP - 6

Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency implementation and supervision of EMP, GRM, survey of participants reporting.

Site-specific EMPs Not applicable Develop site-specific EMPs, responding to all Contractor PIU-ES, LIEC Site-specific EMPs clauses and requirements of this EMP. approved by PMO and LIEC B. Construction Phase 1. Soil Soil erosion All construction Prepare soil erosion control plan (showing how Contractor PIU-ES, LIEC Inspection report of ES sites, spoil runoff will be controlled at site perimeter to control disposal sites (if soil and water runoff, and how disturbed areas will any) be reclaimed); Minimize active open excavation areas; Construct intercepting ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage; Stabilize all earthwork disturbance areas within maximum 14 days after earthworks have ceased; Properly slope and re-vegetate disturbed surfaces. Soil contamination All construction Store chemicals/hazardous products and waste on Contractor PIU-ES, LIEC Inspection report of ES sites impermeable surfaces in secure, covered areas; Remove all construction wastes from the site to approved waste disposal sites; Establish emergency preparedness and response plan (Spill Management Plan); Provide spill cleanup measures and equipment at each construction site; Conduct training in emergency spill response procedures. 2. Surface and Pollution of surface and All construction Install water collection basins and sediment traps Contractor PIU-ES, LIEC Inspection report of ES Groundwater groundwater resources sites in all areas where construction equipment is washed; Discharge construction wastewater and domestic wastewater to sewer systems (if possible), or provide on-site treatment facilities to ensure compliance with effluent discharge standard; Properly manage solid waste (see below). 3. Solid waste Construction and All construction Maximize reuse/recycling of construction and Contractor PIU-ES, LIEC Inspection report of ES domestic wastes sites deconstruction wastes (e.g. iron, bricks, windows, generated on doors, steel bars etc.); construction sites Provide appropriate waste storage containers for worker’s construction and hazardous wastes; Install confined storage points of solid wastes away from sensitive receptors, regularly haul to an approved disposal facility; EMP - 7

Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency Use licensed contractors to remove wastes from the construction sites; Prohibit burning of waste;. 4. Noise Noise from construction All construction Maintain equipment and machinery in good Contractor PIU-ES, LIEC Inspection report of ES, activities sites, nearby working order; Citizen and TVET residential areas Undertake regular equipment maintenance, ensure staff/students compliance with PRC standard of GB 12523-90; complaints Locate sites for concrete-mixing and similar activities at least 500 m from sensitive areas; Operate between 6am-10pm only and reach an agreement with TVET management and nearby residents regarding the timing of heavy machinery work, to avoid any unnecessary disturbances; Install temporary anti-noise barriers to shield school buildings where non-compliance with Category 1 in Environmental Quality Standards for Noise (GB3096-2008) is anticipated/monitored; and Seek suggestions from TVET management and potentially affected sensitive receptors to reduce noise annoyance. 5. Ambient Air Dust generated during All construction Regularly (at least once a day) spray water on Contractor PIU-ES, LIEC Inspection report of ES, construction sites, including construction sites where fugitive dust is generated; Citizen and TVET nearby residential Cover trucks carrying earth, sand or stone with staff/students areas tarps or other suitable cover to avoid spilling; complaints Regularly consult with TVET administration, students as well as nearby residents to identify concerns, and implement additional measures as necessary; Air emissions from All construction Store petroleum or other harmful materials in Contractor PIU-ES, LIEC Inspection report of ES construction vehicles and sites, including appropriate places and covering to minimize machinery nearby residential fugitive dust and emission; areas Ensure vehicle emissions are in compliance with PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285- 2005; Maintain vehicles and construction machineries to a high standard to ensure efficient running and fuel-burning and compliance with the PRC emission standards. 6. Physical Damage to known or All construction Establish chance-find procedures for physical Contractor PIU-ES, LIEC; Inspection report of ES cultural unknown above- or sites with cultural resources local cultural resources below-ground cultural excavation works Physical cultural resources will be preserved relics bureau relics where identified. Strictly in accordance with PRC regulations, no person shall destroy, damage, EMP - 8

Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency deface, conceal or otherwise interfere with the relic; If a new site is unearthed, work must be stopped immediately and the IA and local cultural relic bureau promptly notified, and construction will resume only after a thorough investigation and with the permission of the appropriate authority. 7. Flora and Protection of vegetation, All TVET Preserve existing vegetation where no construction Contractor PIU-ES, LIEC Inspection report of ES Fauna re-vegetation of campuses activity is planned; disturbed areas; Remove trees or shrubs only as a last resort if they greening of sites impinge directly on permanent structures; Properly re-vegetate disturbed areas after completion of civil works; 8. Health and Occupational Health and All construction Provide safe supply of clean water and an Contractor PIU-ES, LIEC Inspection report of ES, Safety Safety sites adequate number of latrines and other sanitary Number of incidents arrangements at the site and work areas; and complaints Provide garbage receptacles at construction site; Provide personal protection equipment (PPE) for workers in accordance with relevant health and safety regulations; Develop an emergency response plan to take actions on accidents and emergencies; Document and report occupational accidents, diseases, and incidents; Provide training to all construction workers in basic sanitation and health care issues, general health and safety matters, and on the specific hazards of their work; Community Health and All construction Assess potential disruption to services and identify Contractor PIU-ES, LIEC, Inspection report of ES, Safety sites and TVET risks before starting construction; If temporary IAs Number of incidents campus, plus disruption is unavoidable, develop a plan to and complaints nearby residential minimize the disruption and communicate the areas dates and duration in advance to all affected people, in conjunction with the TVET administration; Place clear signs at construction sites in view of the TVET students and staff as well as the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc, and raising awareness on safety issues; Avoid use of heavy machinery after day light, return such equipment to its overnight storage area/position before night; Ensure that all construction sites will be made secure, discouraging access through appropriate EMP - 9

Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency fencing whenever appropriate. Temporary Traffic All construction Prepare traffic control plan within and around Contractor IA, PIU, local Inspection report of ES, Management sites TVET campuses during construction, to be traffic police Number of incidents approved by IAs, PIUs and local traffic and complaints management administration. C. Operation Phase

1. Environment Capacity building on Participating Participatory development of an environment LIEC, IAs PMO, ADB EMS initiation workshop Management EMS strengthening TVET institutions management system (EMS), including report, draft EMS for System (EMS) (aspiration) development of simple tools and programs based participating TVET on an internationally recognized methodology 18 to institutions, EMS improve the TVET institutions’ environmental implementation action performance. plan after 3 month.

2. Wastewater Inadequate wastewater TVET institutions Ensure connection of new buildings to on-site IAs EA, local EPB No evidence of illicit collection disposal with civil works pretreatment facilities (septic tanks) and to wastewater discharge municipal sewer system. on site during site inspection 3. Solid waste Inappropriate TVET institutions Provide adequate solid waste collection facilities in IAs EA, local No evidence of illicit management management of non- with civil works all buildings and on the campus; Environment waste dumping during hazardous solid waste Promote segregation of waste through (i) provision Sanitation site inspection of separate collection bins for paper, Bureau biodegradable waste, metallic waste, and other wastes; and (ii) provision of training and awareness raising for TVET staff and students; Reach agreement with waste collection service provider(s) for different types of waste; Regularly clean and disinfect waste collection facilities. Inappropriate Hunan Industry Store solvent-contaminated rags in non-leaking, Hunan Industry EA, local EPB management of Polytechnic closed, fire-resistant containers kept away from Polytechnic hazardous solid waste sources of ignition. Ensure that containers are in Administration good condition and sufficient to prevent the release of contaminants to the air. Prohibit air drying solvent-contaminated rags Transport containers to the Changsha Hazardous Waste Treatment Facility.

18 E.g., U.S. EPA, Office of Environmental Stewardship (2007). Environmental Management Guide for Colleges and Universities. http://www.epa.gov/region01/assistance/univ/emsguide.html

EMP - 10

Impact factor / Potential Impacts Location Mitigation measures Implementation Supervision Monitoring Indicators Project stage and/or Issues Agency Agency 4. Health and Indoor health and safety TVET classrooms, Ensure compliance with relevant health and safety IAs EA, Occupational safety workshops regulations pertaining to ventilation, indoor air health authorities quality, lighting, noise, fire escape, etc.

Abbreviations: ADB = Asia Development Bank; DI = Design Institute(s); LIEC = Loan Implementation Environmental Consultants; LIC = Loan Implementation Consultant; PMO = Project Management Office; EA = Executive Agency; IA = Implementing Agency; IEE = Initial Environmental Examination; EMP = Environmental Management Plan; EHS = Environment, Health and Safety; EPB = Environment Protection Bureau; EMS = Environment Management System; TVET = Technical Vocational Education and Training; CHWTC = Changsha hazardous waste treatment centre.

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IV. Environmental Inspection and Monitoring Plan

17. The inspection and monitoring program in the EMP will serve as the template for assessing the potential adverse impacts imposed on the surrounding environment by the relevant projects, identifying the ways and measures to be implemented for the purpose of reducing and eliminating these impacts, and providing the budget estimates of the required monitoring expenses.

18. The plan defines the aspects to be inspected and parameters to be monitored, the frequency of inspection and monitoring, the location of sampling. The environment specialist appointed by each PIU (PIU-ES) will be in charge of conducting regular inspections and organizing periodical environmental monitoring for noise and air quality.

19. The PIU-ES will compile inspection and monitoring reports on a quarterly basis during construction. These reports will be shared with the contractors, and submitted to the relevant IA, PIU and the PMO for review and approval. The PMO will summarize the quarterly environmental inspection and monitoring results of the PIU-ES into the quarterly project progress report prepared for ADB. Results of environmental inspection and monitoring will also be included in the annual environmental reports prepared for ADB by the PMO. These will be disclosed on the project website.

Table EMP-4: Environmental Monitoring and Inspection Plan Environmental Responsibility & Location, Parameters, Monitoring Technique Media/Issue Frequency Pre-Construction Phase Method: Review of PMO’s, IAs, PIUs and contractor’s Project readiness to implement the project based on assessment of LIEC – once before readiness Project Readiness Indicators construction Parameters: Readiness indicators (Table EMP-5) Construction Phase Method, Location: Visual inspection of the construction PIU-ES – monthly sites Soil erosion during peak Parameters: (i) adequacy of soil erosion prevention and construction period, measures; (ii) adequacy of soil contamination prevention contamination quarterly after; techniques; (iii) evidence of excessive soil erosion or soil LIEC - yearly contamination PIU-ES – monthly Method, Location: Visual inspection of construction sites Solid and liquid during peak Parameters: (i) adequacy of solid and liquid waste waste construction period, management, storage and containment system; (ii) presence management quarterly after; of solid waste dumps, waste fires LIEC - yearly Method, Location: Visual inspection and interviews with PIU-ES – monthly Construction construction workers and contractors at construction sites during peak site health and Parameters: (i) adherence to the approved Environmental, construction period, safety Health and Safety Management Plan (EHSMP); (ii) worker quarterly after; complaints and concerns. LIEC - yearly Method, Location: Visual inspection of the construction sites informal interviews with TVET staff and students, and PIU-ES – monthly nearby residents during peak Community Parameters: (i) adequacy of construction site signage and construction period, health and fencing; (ii) adequacy of temporary noise mitigation quarterly after peak safety measures; (iii) accidents involving public and workers; (iv) construction period; emergencies and responses; (v) public complaints about LIEC - yearly noise, air pollution, construction site safety, localized flooding, etc. Air quality Method, Location: Air quality monitoring, at least 3 points PIU-ES – twice during

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Environmental Responsibility & Location, Parameters, Monitoring Technique Media/Issue Frequency around construction site, and at boundaries of sensitive first two months of receptors (dormitories, nearby residential areas) construction, quarterly Parameters: PM10 thereafter, or in response to complaints PIU-ES – twice during Method, Location: at least 3 points around construction site, first two months of and at boundaries of sensitive receptors (dormitories, nearby Noise construction, quarterly residential areas) thereafter, or in Parameters: Leq dB(A) response to complaints Construction Completion and Operation Phase IA – application before Construction Method, Location: IA formal application to local EPB; the operation; Completion approval / inspection procedure to be arranged by local EPB. Local EPB – regular Approval Parameters: As required by local EPB requirement procedure of approval Post- Method, Location: Visual inspection, post-construction LIEC – once after 2 construction environmental condition assessment at TVET campus. months of project site inspection Parameters: Post Construction Environmental Condition operation Source: PPTA Team

20. Assessment of project readiness. Before construction, the LIEC will assess the project’s readiness in terms of environmental management based on a set of indicators (Table EMP-5) and report it to ADB and the PMO. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met.

Table EMP-5: Project Readiness Assessment Indicators Indicator Criteria Assessment The EMP was updated after detailed design, and EMP update Yes No approved by ADB The borrower complies with loan covenants related Compliance with to project design and environmental management Yes No loan covenants planning Public involvement Meaningful consultation completed Yes No effectiveness GRM established with entry points Yes No LIEC is in place Yes No Environmental ES appointed by each PIU Yes No Supervision in place PMO-ES appointed Yes No Bidding documents and contracts incorporating the Bidding documents environmental activities and safeguards listed as Yes No and contracts with loan assurances environmental Bidding documents and contracts incorporating the safeguards impact mitigation and environmental management Yes No provisions of the EMP Site EMPs including Environmental, Health and Yes No Contractor Safety Management Plan (EHSMP) prepared readiness Assessment of potential disruption to utilities Yes No services conducted The required funds have been set aside to support EMP financial the EMP implementation according to the financial Yes No support plan. Source: Study Team

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21. Environmental monitoring and inspection cost estimates. Costs for environmental monitoring and inspection include salaries and consultancy fees for the PMO- ES, the LIEC and the PIU-ESs, as well as costs for the environmental monitoring performed by the PIU-ESs. The salary costs of the PMO-ES and LIEC will be covered by the EA; the salaries of the PIU-ESs will be covered by the IAs. Air and noise monitoring costs will amount to approximately $3,000 per TVET institution over 2 years. These expenses will be covered by the IAs and included in the overall project budget.

V. Institutional strengthening and training

22. The capacity of the PIU, IAs and contractors’ staff responsible for EMP implementation and supervision will be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The project will address the lack of capacities and expertise in environmental management through (i) institutional strengthening, and (ii) training.

23. Institutional strengthening. The capacities of the PMO, IAs and PIUs to coordinate environmental management will be strengthened through a set of measures:

(i) The appointment of a staff member within the PMO in charge of EMP coordination, including GRM; (ii) The appointment of one national environmental consultant under the loan implementation consultancy to guide PMO and IAs in implementing the EMP and ensure compliance with ADB’s Safeguard Policy Statement (SPS 2009); and (iii) The appointment of environment specialists by the PIUs to conduct regular site inspections and coordinate periodic air and noise monitoring.

24. Training. The EA, PMO, IAs and PIUs will receive training in EMP implementation, supervision, and reporting, and on the Grievance Redress Mechanism (Table EMP-6). Training will be facilitated by the LIEC with support of other experts under the loan implementation consultant services.

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Table EMP-6: Training Program Training Topic Targeted Agencies Timing Duration, Costs EMP Implementation: Roles and Responsibilities, EA, PMO, IAs, PIUs Once prior to, 2 x 1 day, Monitoring, Supervision and Reporting Procedures, and once after $3,000 Review of Experience (after 12 months) one year of project implementation Grievance Redress Mechanism: Roles and EA, PMO, IAs, PIUs, Once prior to, 2x 1 day, Responsibilities, Procedures, Review of Experience community and once after $3,000 (after 12 months) representatives, one year of Contractors project implementation

VI. Environmental Reporting

25. Project progress reports. The EA will provide ADB with (i) Project semi-annual progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency audited financial statements, together with the associated auditor's report, should be adequately reviewed.

26. The semi-annual progress reports will also include a summary of EMP implementation status, results of inspections conducted by the PIUs, problems encountered during construction and operation, and the relevant corrective actions undertaken.

27. Yearly environmental progress reports. To ensure proper and timely implementation of the EMP and adherence to the agreed environmental covenants, the PMO shall submit to ADB yearly environmental progress reports, based on the quarterly inspection and monitoring reports of the PIUs. The LIEC will support the PMO in developing the annual reports. The report should confirm the project’s compliance with the EMP, local legislation such as EIA requirements, and identify any environment related implementation issues and necessary corrective actions, and reflect these in a corrective action plan. The performance of the contractors will also be reported on with respect to environmental protection and impact mitigation. The operation and performance of the project GRM, environmental institutional strengthening and training will also be included in the report. Table EMP-8 summarizes the reporting requirements.

Table EMP.8: Reporting Requirements Report Frequency Purpose From To Confirmation of contractors Inspection and compliance with EMP, Contractors, Quarterly PIU-ES monitoring reports presentation of monitoring IAs, PMO results General project progress, Project Progress Semi-annual including summary of EMP PMO ADB Reports implementation Adherence to Environmental Annual Covenants and EMP, Environmental Annually PMO, LIEC ADB presentation of monitoring Progress Report results

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VII. Mechanisms for Feedback and Adjustment

28. Based on environmental monitoring and reporting systems in place, the PMO shall assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required. The effectiveness of mitigation measures and monitoring and inspection plans will be evaluated by a feedback reporting system. If the PMO identifies a substantial deviation from the EMP, or if any changes are made to the project scope that may cause significant adverse environmental impacts or increase the number of affected people, then the PMO shall immediately consult ADB to identify EMP adjustment requirements.

VIII. Cost Estimates for Environmental Management

29. The total project cost for the Hunan Technical and Vocational Education Demonstration Project (the Project) is approximately $ 105.84 million. Civil works will amount to $ 34.480 million.

30. The environmental protection related cost is $ 314,000 or 0.31% of the total estimated project budget. The major environmental protection costs include protection and mitigation measures during construction, institutional strengthening, environmental management training, and establishment of environmental management systems (EMS) in the TVET institutions. Excluded from the costs estimates are infrastructure costs are included in the project direct costs.

31. Before construction, the PMO and PIUs will develop detailed responsibilities and requirements for contractors and will provide detailed cost estimates of mitigation measures and environmental monitoring in the construction contracts. Cost estimates for mitigation measures, environmental monitoring, public consultations, and capacity building are summarized in Table EMP.9. These cost estimates do not include the remuneration costs for technical experts on training on equipment operation and maintenance, health and safety, and emergency preparedness and response, which are covered elsewhere in the project budget. Table EMP.9: Cost Estimates For EMP Implementation Item Costs per TVET institution Total (USD) Source of Funds (USD) Construction Phase Environmental mitigation 10,000 50,000 Contractors in construction period - Erosion control - Dust control - Noise control - Solid waste control - Site safety - Work camp hygiene - Traffic management

Contractor environment I5,000 75,000 Contractors coordinator (salary)

Site revegetation 2,000 10,000 Contractors

Environment monitoring 3,000 15,000 IAs (air, noise) for construction period

PIU environment 15,000 35,000 IAs specialist (salary, site inspections) PMO environment Not applicable 30,000 EA

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Item Costs per TVET institution Total (USD) Source of Funds (USD) coordinator (including GRM) (salary) Loan implementation Not applicable 63,000 EA environment consultant (consultant fees, travel costs)

Training Not applicable 6,000 EA

Operation Phase Capacity building in Not applicable 25,000 EA environment management system (EMS) establishment (expert input, workshop costs, reports, site visits) Operational inspections 1,000 5,000 IAs during first year of operation Total (USD) 314,000

% of Overall Project Cost 0.31 %

Source: Local EIA report (TEIAR) + PPTA consultant

32. During project implementation, the budget will be adjusted based on actual requirements. Contractors will bear the costs of all mitigation measures during construction, which will be included in the tender and contract documents. The TVET institutions will bear the costs related to mitigation measures during operation. Costs related to environmental inspection during construction will be borne by the IAs. Training costs will be borne by the project as a whole.

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Appendix 2 – Environmental Site Inspection Checklist

ADB-financed Hunan Technical and Vocational Education Demonstration Project

Note: This form is designed for use by the PIU-ES during site inspections and may not be exhaustive. Modifications and additions may be necessary to suit individual projects and to address specific environmental issues and mitigation measures.

Sub‐Project Name: ______Site Location: ______

Construction stage: ______Inspection Date: ______Inspection Time: ______Weather: ______Inspected by: ______

Inspection Item Yes No N.A. Remarks (i.e. problem observed, possible cause of nonconformity and/or proposed corrective/ preventative actions) Site EMP, GRM, information disclosure 1. Has contractor appointed an environment supervisor and is the supervisor on-site? 2. Is Site EMP established? 3. Is information pertaining to construction disclosed at construction site (including construction period, contractor information, etc)? 4. Is Grievance Redress Mechanism (GRM) disclosed at construction site? Soil erosion and contamination 5. Has the contractor prepared a soil erosion management plan? 6. Are intercepting ditches and drains constructed to prevent runoff entering construction sites, and divert runoff from sites to existing drainage? 7. Are disturbed areas stabilized after earthworks have ceased, and re- vegetated? 8. Are chemicals/hazardous products and waste stored on impermeable surfaces in secure, covered areas? 9. Is there evidence of oil spillage? 10. Are spill kits / sand / saw dust used for absorbing chemical spillage readily accessible? 11. Are chemicals stored and labelled properly?

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Inspection Item Yes No N.A. Remarks (i.e. problem observed, possible cause of nonconformity and/or proposed corrective/ preventative actions) Air quality control 12. Are construction sites regularly watered? 13. Are stockpiles of dusty materials covered or watered and cement debagging process undertaken in sheltered areas? 14. Are trucks carrying earth, sand or stone covered with tarps or other suitable cover to avoid spilling? 15. Are plant and equipment well maintained? (any black smoke observed, please indicate the plant/equipment and location) 16. Are there enclosures around the main dust-generating activities? 17. Does contractor regularly consult with PIU, TVET administration, students as well as nearby residents to identify concerns? 18. Was air quality monitoring conducted since the last inspection? If yes, present results. If no, indicate date of next monitoring campaign. Noise 19. Is there evidence of excessive noise? If yes, describe location and equipment. 20. Does the contractor undertake regular equipment maintenance, ensure compliance with PRC standard of GB 12523-90? 21. Are sites for concrete-mixing and similar activities located at least 300 m from sensitive areas? 22. Is the CNP (Construction Noise Permit) valid for work during restricted hours? 23. Do air compressors and generators operate with doors closed? 24. Is idle plant/equipment turned off or throttled down? 25. Any noise mitigation measures adopted (e.g. use noise barrier / enclosure)? 26. Was noise monitoring conducted since the last inspection? If yes, present results. If no, indicate date of next monitoring campaign. 27. Does contractor regularly consult with PIU, TVET administration, students as well as nearby residents to identify concerns related to noise? Surface water pollution 28. Did the contractor develop a

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Inspection Item Yes No N.A. Remarks (i.e. problem observed, possible cause of nonconformity and/or proposed corrective/ preventative actions) contingency plan for control of oil and other dangerous substances (Spill Management Plan)? 29. Are wastewater treatment systems being used and properly maintained on site? (e.g. desilting tank) 30. Is construction wastewater and domestic wastewater discharged to sewer systems (if possible), or are on-site treatment facilities provided to ensure compliance with effluent discharge standard? 31. Are there any wastewater discharged to the storm drains? Solid waste management 32. Is the site kept clean and tidy? (e.g. litter free, good housekeeping) 33. Are separate chutes used for inert and non- inert wastes? 34. Are separated labeled containers/ areas provided for facilitating recycling and waste segregation? 35. Are construction wastes / recyclable wastes and general refuse removed off site regularly? 36. Are chemical wastes, if any, collected and disposed of properly by licensed collectors? Health and safety 37. Did the contractor prepare and submit an Environmental, Health and Safety Management Plan (HSMP)? 38. Is safe supply of clean water and an adequate number of latrines provided for workers? 39. Are garbage receptacles provided at construction site? 40. Is personal protection equipment (PPE) provided for workers in accordance with relevant health and safety regulations? 41. Does the contractor have emergency response plan to take actions on accidents and emergencies? 42. Are clear signs placed at construction sites in view of the TVET students and staff as well as the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc, and raising awareness on safety issues? 43. Are all construction sites made secure, discouraging access through appropriate fencing?

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Inspection Item Yes No N.A. Remarks (i.e. problem observed, possible cause of nonconformity and/or proposed corrective/ preventative actions) 44. Are traffic control measures (speed control, access control) applied? 45. Are fire extinguishers / fighting facilities properly maintained and not expired? Escape not blocked / obstructed? Vegetation 46. Is there any evidence of excessive destruction of existing vegetation where no construction activity is occurring? 47. Are disturbed areas properly re- vegetate after completion of civil works? Physical cultural resources 48. Are they any chance found relics? If yes, ensure appropriate measures taken to preserve them. Others 49. Any other problems identified or observations made?

______Date, Name and Signature of Site Inspector

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APPENDIX 3 Summary of Campus Greening Strategy for ADB-financed Hunan Technical and Vocational Education Demonstration Project

Elements Description Initiatives 1. Teaching and Enhance awareness of  Teach energy and environmental literacy Research sustainable campus life to all students and faculty. 2.Pruchasing Promote green public  Implement an environmental-friendly and procurement products purchasing policy. i.e., buy only Administrative products that are durable, reusable, and Services recyclable, made of recycled materials, non-hazardous, energy efficient, harvested in a sustainable manner, and produced using environmentally sound methods. 3. Solid Waste Schools generally generate large  Implement a recycling program, Reduction and amounts of solid waste which is including paper, cardboard and metal, Recycling disposed in a costly and plastic and glass etc. irresponsible way.

In the PRC it is usual for recyclable materials to be collected and taken offsite in an informal way, often by cleaning staff or local people who make some income from sorting and recycling materials.

By implementing comprehensive recycling and waste reduction programs, schools can minimize their waste stream. 4. Energy Energy budgets constitute a large  Use campus energy management Conservation portion of the operation costs of system to monitor, control and optimize the institutions. energy distribution to individual buildings;  Mechanical ventilation and natural ventilation combined system can be utilized.  In the summer time the average temperature of Changsha is over 30° while in the winter time the average temperature of Changsha is around 0°. The HVAC system is needed for both winter time and summer time. Improve the efficiency of the HVAC system is critical for energy saving. 5. Water and Schools consume a vast amount  Implement a water conservation Wastewater of water on a daily basis. By program to report, respond and repair adopting ―green‖ practices, leaks schools can reduce their intake of  Make full use of captured rain water; water and outflow of pollutants.  Introduce water-reducing fixtures such as sinks, toilets, urinals and showers;  Plant drought-resistant plantings; 6. Hazardous Hazardous waste should be  Educate students and faculty about Materials disposed by certificated agency. minimization and proper disposal techniques;  Switch to non/least toxic paints, solvents and cleaning agents; 7. Transportation Reducing the number of vehicles  Encourage travel by public

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Elements Description Initiatives on campus can reduce transportation, bicycling and walking. greenhouse gas emissions. 8. Food and Food preparation and  Buy local or regional produce in season; Food Services consumption is a significant  Support local organic farms or food contributor to carbon emissions. producers;  Minimize the use of disposable dinnerware;  Reduce food waste, decrease the energy and water used to clean the trays and promote healthy eating habits. 9. New Using new energy efficiency and  Utilize sustainable or green design Construction waste management technologies principles for all new construction; during construction can save cost  Strive for Leadership in Energy and and diminish the environmental Environmental Design in new buildings impact. by using high performance building standards;  Employ high performance envelope and daylight design, high efficiency building system and natural ventilation;  Include a suitable recycling collection space in building design programs;  Specify environmentally friendly building materials and products;  Evaluate options based on life cycle analyses;  Reuse construction waste on-site;

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