Environmental Monitoring Report

# 3 Semestral Report August 2020

PRC: Farmland Sustainable Utilization and Demonstration Project

Prepared by the Fujian Provincial Government for the Asian Development Bank.

NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ends on 31 December 2019.

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

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Environmental Monitoring Report

Project Number: L3450-PRC August 2020

PRC: Fujian Farmland Sustainable Utilization and Demonstration Project

Semi-Annual Environmental Monitoring Report for

1 July 2019 to 31 December 2019

Prepared by Fujian Provincial Department of Agriculture (Fujian Provincial Agricultural Affair Office) for the Fujian Provincial Government and the Asian Development Bank.

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CURRENCY EQUIVALENTS (as of 31 December 2019) Currency unit – Yuan (CNY) CNY1.00 = $ 0.1432 $1.00 = CNY 6.981

ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank GHG Greenhouse gas BOD5 5-day biochemical oxygen demand GRM Grievance redress mechanism CNY Chinese Yuan IEE Initial environmental examination COD Chemical oxygen demand LIEC Loan implementation environment consultant CPMO County Project Management Office MEP Ministry of Environment Protection CSC Construction Supervision Company MPMO Municipal Project Management Office DO Dissolved oxygen PDRC Provincial Development and Reform Commission DOEP Department of Environmental Protection PIU Project Implementing Unit EHS Environmental, Health and Safety PPE Participating Private Enterprise EIA Environmental impact assessment PPMO Provincial Project Management Office EIR Environmental Impact Report PPTA Project Preparatory Technical Assistance EIT Environmental Impact Table PRC People’s Republic of China EMP Environmental Management Plan REA Rapid Environmental Assessment EMS Environment Monitoring Station SOE State Owned Enterprise EPB Environmental Protection Bureau SPS Safeguard Policy Statement FPG Fujian Provincial Government WHO World Health Organization FSR Feasibility Study Report WRB Water Resources Bureau FYP Five Year Plan GDP Gross domestic product

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SUMMARY PROJECT INFORMATION

GENERAL INFORMATION Project title: Fujian Farmland Sustainable Utilization and Demonstration Project Date of project effectiveness: 22 May 2017 Executing agency: Fujian Provincial Government Implementing agency: , , , and Municipal government; Project implementing units (PIUs): Nanping: Wuyishan: Wuyishan Zhuzi Ecological Agriculture Co., Ltd Nanping: Guangze: Fujian Zhengyuan Ecological Food Town Co., Ltd Sanming: Datian: Fujian Golden Phoenix Agricultural Development Co., Ltd Sanming: Youxi: Yangzhong Xingkaicheng Urban Construction Co., Ltd Sanming: Youxi: Youxi County Shenlang Edible Oil Co., Ltd Sanming: Ninghua: Ninghua State-owned Ecological Forestry Co., Ltd Sanming: Ninghua: Fujian Ninghua Science and Technology Co., Ltd Sanming: Ninghua: Fujian Chunhui Tea Co., Ltd Sanming: Ninghua: Fujian Cuiyun Tea Co., Ltd Sanming: Ninghua: Ninghua Jinxi Tea Co., Ltd Sanming: Ninghua: Fujian Ninghua County Houde Agro-forestry Ecological. Co., Ltd Longyan: Yongding: Longyan Municipality Longyu Ecological Industry Development Co. Ltd Longyan: Xinluo: Longyan Municipality Greenland Ecological Agriculture Development Co. Ltd Zhangzhou: Pinghe: Fujian Xinghe Investment Development Co. Ltd Zhangzhou: Zhangpu (Hua'an): Fujian Hongsheng Gardening Co. Ltd Ningde: Jiaocheng: Fujian Lvyin Agriculture Co., Ltd Ningde: Zherong: Fujian Jianye Agro-forestry Comprehensive Investment Co. Ltd Ningde: Dongqiao: Ningde Qilongxiang Agriculture Co. Ltd Ningde: Fu'an: Fujian Farms Agribusiness Tea Co. Ltd. PMO (name of agency): The PPMO established in the Fujian Provincial Department of Agriculture. Municipal project management offices (MPMO’s) have been established in the 5 project municipalities. County project management offices (CPMOs) have been established within 9 project counties. PMO Environment Officer (name, 1 from each PMO email): Loan implementation consultant / ESD firm: LIEC: Mr. Zhang Defa, ESD Construction supervision See Table 2 company(ies): Contractor(s): See Table 2 ADB web link to EMP: https://www.adb.org/projects/documents/prc-fujian-farmland- sustainable-utilization-and-demonstration-project-iee Domestic web link to EMP: Not available Note: the PIUs highlighted are cancelled during implementation

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ENVIRONMENTAL SAFEGUARD MONITORING ADB environment safeguard B category: Environmental report prepared as Initial Environmental Examination per ADB requirements for this category: Domestic safeguard report: 9 EIA Table (one for each PIU) Quarterly period covered by this 1 July 2019 to 31 December 2019 report: # EMRs to date including this report: 3 Agency/person responsible for 9 person (One from each PIU) internal environmental monitoring: Agency/person responsible for 4 EMCs have been contracted to conduct external external environment monitoring: environment monitoring for 7 subprojects.

Fujian Sanming Houde Testing Technology Co., Ltd. is responsible for Datian and Ninghua subprojects

Fujian Zhongke Environmental Monitoring Co. Ltd. is responsible for Jiaocheng, Fu’an and Wuyishan subprojects

Fujian Zhongkai Test Technology Co. Ltd. is responsible for Yongding subproject

Xiamen Keyi Testing Technology Co., Ltd is responsible for Pinghe subproject

Other PIUs will contract external environment monitoring agency one month before civil work construction. Agency/person responsible for EMP Mr. Zhang Defa, the LIEC from ESD implementation and progress monitoring: Agency/person responsible for This is environment safeguard category B project. No independent compliance monitoring: independent compliance monitoring for this project is required Overall status of environmental On track safeguards: ADB = Asian Development Bank, EMP = environmental management plan, EMR = environment monitoring report, LIEC = loan implementation environment consultant, PMO = project management office.

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TABLE OF CONTENTS

SUMMARY PROJECT INFORMATION ...... 2 EXECUTIVE SUMMARY ...... 6

A. OVERVIEW ...... 6 B. PROGRESS IN IMPLEMENTING THE EMP ...... 6 C. KEY ISSUES AND CORRECTED ACTIONS ...... 7 II. INTRODUCTION ...... 9

A. PURPOSE OF REPORT ...... 9 B. PROJECT OUTCOME, OUTPUTS AND SUBCOMPONENTS ...... 9 C. PROJECT IMPLEMENTATION PROGRESS ...... 10 III. SUMMARY OF THE PROJECT ENVIRONMENTAL MANAGEMENT PLAN ...... 15 IV. ENVIRONMENTAL MANAGEMENT DURING THE REPORTING PERIOD ...... 17

A. INSTITUTIONAL SETUP ...... 17 B. IMPLEMENTATION OF THE PROJECT MITIGATION MEASURES ...... 21 C. IMPLEMENTATION OF THE PROJECT MONITORING PROGRAM ...... 29 D. PUBLIC CONSULTATIONS AND GRIEVANCE REDRESS MECHANISM ...... 33 E. TRAINING AND CAPACITY BUILDING ...... 34 F. COSTS OF EMP IMPLEMENTATION DURING THE REPORTING PERIOD ...... 36 G. COMPLIANCE WITH LOAN AND PROJECT ASSURANCES ...... 38 H. ISSUES FOR FOLLOW‐UP DOCUMENTED IN THE PREVIOUS ENVIRONMENT MONITORING REPORT AND ANY MISSIONS UNDERTAKEN DURING THE CURRENT REPORTING PERIOD ...... 38 I. REPORTING ...... 39 V. LESSONS LEARNED ...... 40 VI. NEXT STEPS ...... 40 APPENDIX 1. COMPLIANCE WITH ENVIRONMENTAL ASSURANCES ...... 41 APPENDIX 2. MONITORING DATA ...... 48

A. MONITORING METHOD ...... 48 B. DATIAN SUBPROJECT ...... 48 1. External Monitoring Agency ...... 48 2. Monitoring Location ...... 48 3. Monitoring Frequency ...... 49 4. Monitoring results ...... 49 C. WUYISHAN SUBPROJECT ...... 51 1. External Monitoring Agency ...... 51 2. Monitoring Location ...... 51 3. Monitoring Frequency ...... 52 4. Monitoring Results ...... 52 D. YONGDING SUBPROJECT ...... 53 1. External Monitoring Agency ...... 53 2. Monitoring Location ...... 53 3. Monitoring Frequency ...... 54 4. Monitoring results ...... 54 E. JIAOCHENG SUBPROJECT ...... 55 1. External Monitoring Agency ...... 55 2. Monitoring Location ...... 55 3. Monitoring Frequency ...... 55 4. Monitoring Results ...... 56 F. FU’AN SUBPROJECT ...... 57

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1. External Monitoring Agency ...... 57 2. Monitoring Location ...... 57 3. Monitoring Frequency ...... 58 4. Monitoring Results ...... 58 G. PINGHE SUBPROJECT ...... 59 1. External Monitoring Agency ...... 59 2. Monitoring Location ...... 59 3. Monitoring Frequency ...... 60 4. Monitoring Results ...... 60 H. NINGHUA SUBPROJECT ...... 61 1. External Monitoring Agency ...... 61 2. Monitoring Location ...... 61 3. Monitoring Frequency ...... 61 4. Monitoring Results ...... 61 APPENDIX 3. PHOTOGRAPHS ...... 63

A. SAMPLING PHOTOS ...... 63 B. SCANNED EMC CERTIFICATIONS ...... 66 C. SCANNED CIVIL WORK CONTRACT ‐ ENVIRONMENT CLAUSES INCORPORATED ...... 67 D. PHOTOS OF TRAINING WORKSHOP AND LIST OF PARTICIPANTS ...... 68 E. PHOTOS OF WUYISHAN CONSTRUCTION SITE INSPECTION ...... 69 F. PHOTOS OF PINGHE SUBPROJECT CONSTRUCTION SITES – INTERNAL MONITORING ...... 71 G. PHOTOS OF GRM INFORMATION DISCLOSURE OF DATIAN SUBPROJECT ...... 73 H. PHOTOS OF NEW SUBPROJECT SELECTION IN ...... 73 I. PHOTOS OF NEW SUBPROJECT SELECTION IN PUCHENG COUNTY ...... 75

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EXECUTIVE SUMMARY

A. Overview

This semi-annual report presents the status of compliance with the environment management plan (EMP) during the project implementation from 1 July 2019 to 31 December 2019. The key environment issues caused by project construction have been discussed, and corresponding improvement measures and follow up actions have been suggested according to the issues found.

B. Progress in Implementing the EMP

Contractual arrangement. PPMO has distributed the EMP to MPMOs, CPMOs, PIUs and design institutes. Relevant environmental requirements have been included in the bidding documents, civil works contracts with contractors and supervision contracts with construction supervision companies. The contractual arrangement is fully in compliance with the EMP.

Institutional setup. PPMO, CPMOs, CPMOs, PIUs, contractors and CSCs have designated environment persons to conduct environment management. An environment person has been appointed by each PMO, PIU, contractor and supervision company to be responsible for the implementation of environmental mitigation measures and on-site internal monitoring. The institutional arrangement is complied with the EMP.

Implementation of mitigation measures. The contractors have prepared site environment, occupational health and safety management plans. These site management plans have been properly implemented by contractors. A questionnaire survey of the PIUs on key issues of environment, health and safety was administered in December 2019. During reporting period, there has been no occurrence of major accidents relating to construction and community safety, environmental pollution and health. The implementation of mitigation measures complied with the EMP.

Internal monitoring. The CSCs, environmental officers of PMOs at all levels and PIUs have been working effectively on the project inspection and supervision. Regular site inspections have been performed by CSCs on a weekly basis. The internal monitoring results have been submitted to PIUs for review on a monthly basis. Random site inspections performed by PPMO and MPMOs and CPMOs. The internal monitoring is in compliance with the EMP.

External monitoring. It has been planned by the PPMO, CPMOs and PIUs that each PIU will contract one external environmental monitoring company (EMC) one month before civil work construction commencement. (i) Till the end of 31 December 2019, seven PIUs, whose civil work constructions started or to be started, have contracted EMCs. All EMCs have obtained China Metrology Accreditation (CMA). (ii) The EMCs conducted external monitoring for 7 subprojects in Jiaocheng, Datian, Yongding, Wuyishan, Fu’an and Pinghe. The monitoring activities are partly complied with the EMP. The incompliance is the less monitoring frequency for subprojects in Datian, Yongding and Ninghua. (iii) The monitoring results showed that most of environmental parameters complied with the prescribed standards in the EMP except the SS concentration in Taoyuan creek near Datian subproject exceed the prescribed standard.

Public consultation and GRM. At the project preparation stage, PIUs, design institutes, EIA Institutes have conducted related public consultation activities in accordance to ADB requirements. The GRM has been established and carried out by PPMO, MPMOs,

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CPMOs and PIUs. All of the subprojects erected bullet boards at subproject sites to disclose GRM focal points to the public. And PIUs of Jiaocheng, Datian and Wuyishan subprojects publicized the project information and GRM entry point at information board of nearby village committees and this is quite welcomed by the local people. No complaint was received during this reporting period. Public consultation and GRM are complied with the EMP.

Training. Environmental officers of PPMO, MPMOs, CPMOs, and PIUs have been working effectively on the project with the support of the Loan Implementation Environmental Consultant (LIEC). EMP trainings have been provided to related staffs in PMOs, PIUs, contractors and supervisor. During reporting period, 4 training events were undertaken with 119 participants. After the training, basic understand the EMP implementation, monitoring and reporting requirements as well as the GRM concepts and implementation are achieved. The training material has been delivered to all participants.

Due diligence for project scope changes. Two subprojects (in and ) proposed to change locations and two subprojects (at Shouning County and Pucheng County) will be newly added. Four EIA institutes have been contracted to prepare domestic EIAs for these subprojects. The EIA institutes haven’t initiated their field visits to the project sites since the drafts FSRs are not available. Due diligence was conducted by the LIEC and ADB review mission to verify whether the selected subproject counties meet with the Project County Selection Criteria prescribed in the Project Agreement. The LIEC visited subproject sites in November and December 2019 to verify whether the selected subproject activities met with the Subproject Selection Criteria prescribed in the Project Agreement. The subprojects that fail to meet with the selection criteria, such as the subproject located in water resources protection areas in Shouning County, and the embankment subproject that might involve in cutting of large number of riverside trees in Pucheng County have been suggested to be excluded. The draft addendum IEE will be prepared when the domestic EIAs are available.

C. Key issues and corrected actions

The key issue during this reporting period is the external monitoring frequency for three subprojects in Datian, Yongding and Ninghua do not fully comply with the EMP requirement. For Datian subproject, baseline SS concentration in Taoyuan creek exceed prescribed standard.

Next steps.

 PPMO to inform LIEC when any new civil work contract signed to allow the LIEC remind the EMCs through PIUs to conduct external monitoring timely.  PIUs of Datian, Ninghua and Yongding subprojects will inform the EMCs to conduct air and noise monitoring quarterly and water quality monitoring semi- annually as per EMP by 31 March 2020.  Datian PIU inform the contractor near Taoyuan creek to construct sediment tank to ensure no construction waste water directly flow into Taoyuan creek by 31 March 2020.  PIUs of Yongding subprojects publicize project information and GRM entry points at local villages by 31 March 2020.  LIEC conduct environmental training to contractors and CSCs during next reporting period.  With the construction completion of subprojects, more training will be given by the LIEC to the PIUs such as Lvyin PIU on the project completion report (PCR) preparation, and monitoring requirements for trial operation and operation phase.

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 During next reporting period, more training will be provided by the LIEC on the ADB SPS to the EIA institutes that are preparing domestic EIAs for site change subproject in Guangze County or new subprojects in Shouning County and Pucheng County  PIUs conduct meaningful public consultation during construction with assistance of the LIEC during next reporting period.

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II. INTRODUCTION

A. Purpose of report

The purpose of this environmental monitoring report (EMR) is to describe and assess progress for implementation of the environmental management plan (EMP) for the Fujian Farmland Sustainable Utilization and Demonstration Project, for the reporting period 1 July 2019 to 31 December 2019. This EMR is submitted in compliance with the Safeguard Policy Statement (SPS)1 of the Asian Development Bank (ADB) and the loan agreement between ADB and the project executing agency.

This is the 3rd EMR for the project. It covers part of the design, bidding and construction phases of the project. The report describes: (i) institutional setup with respect to fulfilling environmental requirements (ii) implementation of mitigation measures; (iii) monitoring activities; (iv) public consultations (including grievance redress); (v) training and capacity building; (vi) expenditures for EMP implementation (including mitigation, monitoring, and training); (vii) reporting; and (viii) an overall assessment of key achievements, challenges, issues, corrective actions, and lessons learned, during the reporting period.

B. Project outcome, outputs and subcomponents

The project outcome will be climate-resilient and sustainable crop farming systems demonstrated in 13 project counties. The project outputs will be (i) productive farmland established, (ii) sustainable farming technology and practices adopted, and (iii) institutional capacity strengthened.

Output 1: Productive farmland established. This output will rehabilitate degraded (i) valley floor crop land (land preparation, flood protection, soil health); and (ii) sloping land (terracing and drainage). Valley floor crop land improvement demonstration will include 63,700 mu of crop land improved for growing grains, vegetables, and lotus seeds. The activities will comprise land levelling and development of farm infrastructure such as farm tractor roads and water conservancy facilities (25 kilometres of dikes/embankments for flood prevention, drainage ditches, irrigation canals, and irrigation facilities). Sloping land rehabilitation demonstration will include 250,000 mu to be improved for tea, tea oil, and orchards. The rehabilitation activities include repairing existing terracing, farm infrastructure such as farm tractor roads, and water conservancy facilities such as water storage ponds and spray/drip irrigation equipment.

Output 2: Sustainable farming technology and practices adopted. This output will support project implementation units (PIUs), comprising state-owned enterprises (SOEs) and participating private enterprises (PPEs) in cooperation with farmers and cooperatives to establish crop model demonstration sites. Activities include provision of (i) agricultural equipment and materials to implement sustainable farming technology and practices such as soil conservation measures (e.g., applying organic fertilizer, implementing zero or low tillage, introducing new crop varieties, and establishing tree plantations for windbreaks and shade), integrated pest management, and improved cropping practices (e.g., intercropping and crop rotation); and (ii) soil, water, and organic fertilizer quality-testing equipment required for formulation of balanced fertilizer application. In addition, the output will facilitate the certification process for green and organic tea, tea oil and other products.

Output 3: Institutional capacity strengthened. This output will support: (i) training specialized farmer cooperatives on cooperative operation, production technology, and

1 ADB. 2009. Safeguard Policy Statement. Manila.

9 marketing; (ii) training PIUs staff and farmers on good agricultural practices and technology, including green and organic product certification, and will be inclusive of women and the poor; (iii) establishing of and developing the capacity of farmland infrastructure management and maintenance associations; (iv) training on gender and development for the PPMO, MPMOs, county project management offices (CPMOs), and participating enterprises; and (v) training for PIUs and PMOs on procurement and improved project management.

The project will be implemented by 19 agricultural enterprises distributed among the 13 counties engaged in tea and tea-oil production on slope land areas as well as other cropping including rice, in the valley floors. These enterprises will comprise both State Owned Enterprises (SOE) and Participating Private Enterprises (PPE) and will be collectively called Project Implementing units (PIUs).

C. Project implementation progress

The project became effective on 22 May 2017. As of 31 December 2019, of the 19 subprojects proposed in PPTA stage, 10 subprojects were cancelled and 9 are being implemented. Of the 9 remaining subprojects, 6 subprojects in Jiaocheng , Datian County, Wuyishan City, Pinghe County, and Ninghua County are in construction stage; 1 subproject in Fu’an signed civil work contract on 31 December 2019 but civil work construction was not initiated, 1 subproject in Xinluo County is in bidding stage. One subproject in Guangze County is proposed to change scope and in processing stage. Two newly proposed subprojects in Shouning County and Pucheng County are still in FSR preparation stage.

The project is currently rated by ADB as actual problem. Implementation progress for the civil works contracts are summarized in Table 1.

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Table 1. Project civil work implementation progress as of 31 December 2019

No. Contract No. Construction Activities Status Implementation Description Starting Name of contractor Name of CSC date Datian Subproject, PIU = Fujian Datian County Golden Phoenix Agricultural Development Co., Ltd 1 FJ-DT-CW-01-01 • Paddy land leveling: 2000mu Civil work contract Contract signed on 7 January March 2019 Fujian Dongyu Fujian Zhongxu Qianping Township Grain • In-stream weirs (No.): 2 signed and 2019. Currently 10% work has Construction Construction Co., Ltd. Production Base • Water collecting tanks (No.): 3 construction been completed. Engineering Co., Ltd. Establishment • Sprinkling irrigation pipes: 4km initiated • Drainage ditches: 5.7km • Tractor roads: 6.7km 2 FJ-DT-CW-01-02 • Tractor roads: 0.4km Civil work contract Contract signed on 7 January July 2019 Richang (Fujian) Group Fujian Zhongxu Qianping Township Paddy • River bank revetment: 1.04km signed and 2019. Current 80% of the Co., Ltd. Construction Co., Ltd. Land Leveling construction construction work has been initiated completed. 3 FJ-DT-CW-03-02 •Xi'an • Newly-built tractor road is 6.34km, Civil work contract The construction is in progress Nov 2019 Fujian Hongchang NA Village of Taoyuan Township widened road 2.925km signed and and is to complete in April 2020. Project Management Grain Production Base construction Co., Ltd. Establishment initiated 4 FJ-DT-CW-05-01 • Tractor road:10.81km Civil work contract Contract signed on 24 May 2019 June 2019 Fujian Hongchang NA Tea garden and paddy field • Drainage canals: 1.06km signed and with value of 5.49 million RMB. Project Management rehabilitation in Jiyang • Irrigation ditch of 5.5km construction Current 100% of construction Co., Ltd. township initiated work has been completed. 5 FJ-DT-GS-04-01 Supply of • Supply of 100,000 tea tree seedlings Contract signed Contract signed on 14 Sept 2018. Nov 2018 Datian Fengqiu Oil-tea NA 100,000 tea tree seedlings for 10,000 mu tea gardens and and construction Completed 100%, Currently it is Professional for 10,000 mu tea gardens 20,000 Shelter Tree Saplings for initiated prepared to organize acceptance Cooperatives and 20,000 Shelter Tree 4600 mu oil-tea plantation of seedling survival rate before Saplings for 4600 mu oil-tea applying for the last payment. plantation Wuyishan Subproject, PIU = Wuyishan Zhuzhi Ecological Agriculture Co., Ltd. 1 FJ-WYS-CW-01 Water • 5000 acres of paddy field-water Construction in Contract signed on 17 Jun 2019. 28 Jun 2019 Fujian Dongyu Fujian Hongjian Infrastructure and Ecological conservancy infrastructure progress Completed investment of 14.09 Construction Engineering Revetment Infrastructure renovation, ecological bank mil RMB, and 88% of contract Engineering Co., Ltd. Consulting Co. Ltd. Transformation protection improvement. amount. 70% of civil work • 3 irrigation ditch: 4.32km completed including • 2 drainage canals: 1.66km • Embankment: 3.058km

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No. Contract No. Construction Activities Status Implementation Description Starting Name of contractor Name of CSC date • River embankment: 3.2km • Improve field roads: 8.319 km • Improve 15 field roads: 11.85km 2 FJ-WYS-CW-02-01 • Construct irrigation ditch: 110m; Design Not yet due 5000 mu paddy field water • Construct protective retaining wall: infrastructure improvement, 50m; transportation and ecological • Upgrading ecological embankment: embankment upgrading and 1.44km transformation • Improve 4 field roads: 7.4km 3 FJ-WYS-CW-02-02 5000 • Field road improvement: 1.47km Construction in Contract signed on 25 Jun 2019. Jun 2019 Wuyishan Xingyi Wuyishan Anda mu Paddle Field- progress Construction of 1.470 km long Highway Maintenance Construction Transportation field roads in the Lotus Field. Engineering Co., Ltd. Supervision Co. Ltd. Contract signed on June 25, 2019, and the construction completes 88%. Pinghe Subproject, PIU = Fujian Xinghe Investment Development Group Co., Ltd. 1 FJ-PH-CW-01-01 Oil-tea • Construction of 6.732 km Tractor Contract signed Contract signed on 18 Nov 2019. 22 Dec. Fujian Minying Xintiandi Garden Improvement in Roads. and construction The road bed is being prepared. 2019 Construction Engineering Qiling Township of Pinghe • Construct field road: 4.793 km initiated Tractor road: 50% Development Co., Ltd Management Co., Ltd. County • Construct 3 small water drops Field road: 50% Water drops: 0% 2 FJ-PH-CW-05-01 5050mu • Tractor roads (3.0m width): 6.7km Contract signed Contract signed on 18 Nov 2019. 22 Dec. Fujian Jingfang Fujian Hongye Pomelo Orchard • Tractor roads (3.5m width): 6.7km • Tractor roads (3.0m width): 2019 Construction Construction Improvement in Banzi • Field roads: 0.431 km 100% Engineering Co., Ltd Supervision Co. LTD Township of Pinghe County - • Astern turntable: 4 • Tractor roads (3.5m width): Farmland Infrastructure • Passing bay: 12 100% Construction • Cover culvert: 3 • Field roads: 100% • Water drops: 7 • Astern turntable: 100% • Passing bay: 100% • Cover culvert: 0 • Water drops: 70% 3 FJ-PH-GS-03 Insects • Supply of Pest Control Equipment for Procurement is Contract signed on 24 July 2019. Aug 2019 The JV of NA protection Fujian Xinghe Subproject being conducted. Aviation Development Co., Ltd. and Xinxiang Tianyi New Energy Technology Development Co., Ltd.

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No. Contract No. Construction Activities Status Implementation Description Starting Name of contractor Name of CSC date 4 FJ-PH-GS-04 Supply of • Supply of Agricultural Product All equipment has Contract signed on 24 July 2019. Aug 2019 Xiamen Aviation NA Agricultural Product Quality Quality Testing Equipment and Soil been supplied to Development Co., Ltd. Testing and Soil Testing Testing Equipment for Fujian Xinghe the site, and the Equipment for Pinghe. Subproject installation is underway. Ninghua Subproject, PIU = Ninghua State-owned Ecological Forestry Co., Ltd. 1 FJ-NHLC-CW-06 Oil-tea Land Rehabilitation of 844 acres of Contract signed Contract signed on 30 July 2019. Oct 2019 Ninghua County Fujian Guangxia Garden Rehabilitation and low-yield Camellia oleifera garden in and construction Currently respective 60% and Forestry Corporation Engineering Infrastructure Construction Zhongsha Township: land initiated 80%of works have been Consulting Co., Ltd Project (Zhongsha Town) remediation, land cultivation, irrigation completed for the contracts. and drainage renovation, field roads, farmland protection projects • Terrace rehabilitation: 530mu • Terrace rehabilitation: 844mu • Water ponds: 4 • Water ponds: 12 • Tractor roads: 1.74km • Tractor roads: 2.5km • Field roads: 2.0km • Field roads: 2.0km • Micro irrigation facilities: 369mu • Micro irrigation facilities: 844mu 2 FJ-NHLC-CW-07 Oil-tea Land Rehabilitation of 273 acres of Contract signed Contract signed on 30 July 2019. Oct 2019 Ninghua County Fujian Guangxia Garden Rehabilitation and low-yield Camellia oleifera garden in and construction • Terrace rehabilitation: 0 mu Economic and Forestry Engineering Infrastructure Construction Jicun Township: land remediation, initiated • Water ponds:1 Service Center Consulting Co., Ltd Project (Jicun Town) land cultivation, irrigation and • Tractor roads: 0.87 km drainage renovation, field roads, • Field roads: 0.57 km farmland protection projects • Drainage canals: 0 km • Terrace rehabilitation: 166 mu • Sprinkling irrigation: 0 mu • Water ponds: 4 • Tractor roads: 2.2 km • Field roads: 2.0 km • Drainage canals: 0.5km • Sprinkling irrigation: 166 mu Fu’an Subproject, PIU = Fujian Farms Agribusiness Tea Co., Ltd. 1 FJ-FANK-CW-01-01 Land • Land Rehabilitation in 1000mu and Contract signed Contract signed on 31 Dec 2019. 2020 Shanxi Jiexingyuan Rehabilitation in 1000 mu Construction of Farm Infrastructures Construction and Construction of Farm in 3,800 mu Tea Gardens Engineering Co., Ltd. Infrastructures in 3800mu Tea Gardens Yongding Subproject, PIU = Longyan Municipality Longyu Ecological Industry Development Co. Ltd

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No. Contract No. Construction Activities Status Implementation Description Starting Name of contractor Name of CSC date 1 FJ-YDLY-CW-04 • Slopeland rehabilitation: 5565mu Construction in • Contracted signed on 23 Mar April 2019 Fujian Yong Wang Longyan Rundaxin Rehabilitation of Slopeland, • Irrigation ponds: 6 progress 2018. Construction Group Co. Engineering Construction of Farm • Pipeline for irrigation: 5565mu • Completed land preparation Ltd. Managements Co. Ltd Infrastructures in the 5565 • Tractor roads: 16.7km 30%, irrigation and drainage mu Oil-tea Plantations • Field road: 16.7km 25%, road 30%. 2 FJ-JDLY-GS-03 Seedling • Supply of 117 thousand Oil-tea Contract signed Contracted signed on 21 Jan April 2019 Sanming Hongchang Supply for 5,565 mu Oil Tea Saplings in 5565 mu Oil-tea 2019. Completed 15%. Construction Garden Plantations Engineering Co., Ltd. Jiaocheng Subproject, PIU = Fujian Lvyin Agriculture Co., Ltd. 1 FJ-JCLY-CW-01 • Slopeland rehabilitation: 2500mu Commissioning • Slopeland rehabilitation:100% 2 Dec 2017 Fujian Yuanhong Yucheng Company 4460 Oil-tea Plantation– • Tractor roads: 13.38km • Tractor roads: 100% Construction Rehabilitation of slopeland • Field rods: 138km • Field roads: 100% Engineering Co.,Ltd. and construction of access roads 2 FJ-JCLY-CW-02 • Water ponds: 40 Commissioning • Water ponds: 100% 22 Jan 2018 Fujian Yuanhang Yucheng Company 4460 Oil-tea Plantation– • Open canals: 5km • Open canals: 100% Construction Construction of Water • Sprinkling irrigation: 2500mu • Sprinkling irrigation: 100% Engineering Co.,Ltd. Conservancy Facilities • Piped irrigation: 1960mu • Piped irrigation: 100% • Drainage ditches: 13.38km • Drainage ditches: 100% 3 FJ-JCLY-GS-01 4460 Oil-tea • Supply for 4,460 mu Oil Tea Garden Completed • Completed 100% of supply of Dec 2018 Ningde City Jiaocheng NA Plantation– Supply of Shelter of Lvyin Subproject Oil-tea Saplings. District Lvxin Tree Saplings and Eco Agricultural Specialized Conservation Subproject Cooperative 4 FJ-JCLY-GS-02 4460 Oil-tea • Supply of 90,000 Oil Tea Seedlings Completed • Completed 100%. Jan 2019 Ningde City Jiaocheng NA Plantation–Oil-tea Saplings for 4,460 mu Oil Tea Garden District Lvxin for Jiaocheng Lvyin Agricultural Specialized Subproject Cooperative 5 FJ-JCLY-GS-03 4460 Oil-tea • Supply of Pest Control Equipment for Completed • Completed 100%. Dec 2018 Ningde Xingcheng NA Plantation– Supply of Pest 4,460 mu Oil Tea Garden Electrical Equipment Control Equipment Co., Ltd. Subproject CSC = construction supervision company, PIU = project implementation unit

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III. SUMMARY OF THE PROJECT ENVIRONMENTAL MANAGEMENT PLAN

The project environmental management plan (EMP) is the primary reference document for the government and ADB for all environment-related mitigation, monitoring, reporting, and training activities for the project. Timely and effective implementation of the EMP is a key condition of the loan agreement between the government and ADB. The EMP was prepared as part of the initial environmental examination in 2016. The EMP is being implemented over 1.5 years, comprising 1 years of construction. The content of the EMP includes: institutional roles and responsibilities for EMP implementation; mitigation measures for environmental safeguard risks; environmental monitoring and reporting; training and capacity building; grievance redress mechanism (GRM); public consultation; cost estimates; and, other information e.g. terms of reference for key positions.

Project institutional arrangements (Section B of the EMP). This section of the EMP describes the roles and responsibilities of relevant agencies for EMP implementation. For this project, the principal person responsible for EMP coordination is the PMO Environment Officer (Mr. Wu Xionghai, division director, PPMO), acting on behalf of the PMO. On-site implementation of the EMP is by the implementing agencies, contractors, and construction supervision companies (CSCs). Guidance and supervision to the PMO Environment Officer is given by the Loan Implementation Environment Consultant (LIEC) (Mr. Zhang Defa, ESD).

Project readiness assessment (Section C of the EMP). This is the first key step prior to the start of project civil works, to ensure that preparations for EMP implementation have been completed.

Potential impacts and mitigation (Section D of the EMP). This section of the EMP summarizes the potential environmental impacts and mitigation measures for the different phases of the project: detailed design and pre-construction phase; construction phase; and operations phase. Table A1.2 in the EMP summarizes the environmental risks and mitigation measures, and agencies responsible for implementation and supervision of these measures. For this project, the key potential impacts and/or issues of concern are: soil erosion, ecological impacts, water balance, non-point source pollution and due diligence of existing facilities.

Training (Section F of the EMP). This section of the EMP describes the training program for environmental safeguards, including the recipients and frequency of training.

Grievance Redress Mechanism (Section G of the EMP). This section of the EMP identifies the mechanisms to receive and manage any public environmental and/or social issues which may arise due to the Project.

Environmental monitoring program (Section E of the EMP). The program comprises three types of monitoring: (i) internal monitoring; (ii) external monitoring; and (iii) compliance monitoring Internal monitoring is assessment by the project implementation units (PIUs) and/or CSCs to ensure the contractors are implementing mitigation measures as described in their contractual arrangements and EMP. External monitoring is the measurement of specific environmental variables (e.g. air quality, dust levels, noise emissions) to ensure that the construction activities do not exceed the legal parameters and standards specified for the project. This is being conducted by a certified monitoring agency. It has been agreed that each PIU will hire one external agency. Compliance monitoring is the overall assessment of whether all EMP measures are being complied with, and is conducted by the PMO Environment Officer, supported by the LIEC. This monitoring does not involve quantitative measurement of environmental variables, but is

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based on visual inspection, site visits, and review of the progress reports for internal and external monitoring.

Costs (Section H of the EMP). This section of the EMP describes the estimated costs for EMP implementation over 5 years. The cost estimates in the EMP include the costs for the mitigation measures, training, and monitoring.

Reporting (Section E of the EMP). This section of the EMP describes the reporting requirements for the project, including the responsible agencies and reporting frequency.

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IV. ENVIRONMENTAL MANAGEMENT DURING THE REPORTING PERIOD

This section summarizes the progress made to implement the project EMP during the current reporting period.

A. Institutional setup

Organization structure for environment management is shown is Figure 1.

EA/PPMO environment officer. Fujian Provincial Government is the executing agency (EA). The PPMO established by the provincial government have the overall accountability for the overall project and its subprojects for ensuring compliance with the PRC’s laws and regulations, the provisions of ADB’s Safeguard Policy Statement (2009), as well as the loan covenants. The PPMO will guide and coordinate closely with other government agencies and the ADB for the timely resolution of any issue and completion of the project within the target dates, expediting the procurement process, and organizing and chairing project meetings. The PPMO is also responsible for replying to petitions and/or complaints from the affected people in the project area. Mr. Wu Xionghai (division director) has been designated as PPMO environment officer to provide overall supervision to project implementation.

IA/MPMOs/CPMOs environment officer. As the implementing agencies, each municipal government will be accountable for ensuring the implementation of the environmental management plan and coordinating the environmental audit and monitoring of the subproject(s) in the respective district/county. The district/county governments (CPMOs) will be responsible for ensuring the implementation of the specific mitigation measures in cooperation with PIUs as prescribed in the EMP. Each MPMO and each CPMO has designated an environment officer (Figure 1).

PIU environment person. Each PIU will be responsible for (i) implementing the EMP and developing further implementation details; (ii) supervising their staff and contractors’ implementation of mitigation measures during construction; (iii) implementing training programs for construction crews; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal regular environmental monitoring; (vi) redressing public grievances; and (vii) reporting performance of the EMP to CPMOs. All PIUs have designated environment person (Figure 1Figure 1. Designated Environment Persons).

LIEC. A LIEC will be contracted by the PPMO to provide assistance during the pre- construction, construction and initial operational periods. The LIEC will advise the PMO, the CPMOs, and PIUs on all aspects of environmental management and monitoring for the Project. The LIEC will ensure the compliance of construction and initial operation activities with the mitigation and management measures in the EMP and report to the ADB. Mr. Zhang Defa, environment specialist under the ESD consulting team, is the LIEC for this project.

Environment monitoring company. The environment performance of the project will be verified by external environmental monitoring companies (EMC). The EMCs will be contracted by the PIUs. The EMCs will conduct the external monitoring of EMP implementation. As of 31 December 2019, 7 of the 9 subprojects initiated civil work construction. All of the 7 PIUs have contracted EMCs.

Environment person of construction supervision companies (CSCs). Environment persons of CSCs will have the principal responsibility for observing contractor construction activities, and for ensuring that those activities are accomplished in

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compliance with the Project's environmental requirements, specifications, goals and objectives. They will ensure coordination at field level with representatives of government agencies in charge of EMP supervision as well as those in charge of control and monitoring activities. During this reporting period, corresponding CSCs environment persons have been appointed for all the work contracts that have entered construction stage (Table 2).

Environment person of contractors. An environment person will be appointed by each Contractor to be responsible for the implementation of environmental mitigation measures and internal monitoring. During this reporting period, corresponding environment persons have been appointed for all the work contracts that have entered construction stage (Table 2).

Table 2. List of Designated Environment Persons of the Contractors and CSCs Environment No. Contract Name Organization Name of organization person Contact name Datian Subproject 1 FJ-DT-CW-01- Contractor Fujian Dongyu Construction Li Qilu 13559093311 01 Engineering Co., Ltd. CSC Fujian Zhongxu Construction Co., Wu Xingye 13859148626 Ltd. 2 FJ-DT-CW-01- Contractor Richang (Fujian) Group Co., Ltd. Liao Shixiang 13960575555 02 CSC Fujian Zhongxu Construction Co., Wu Xingye 13859148626 Ltd. 3 FJ-DT-CW-05- Contractor Fujian Hongchang Project NA NA 01 Management Co., Ltd. CSC NA NA NA Wuyishan Subproject 1 FJ-DT-CW-01 Contractor Fujian Dongyu Construction Lan Yuejin 15805939516 Engineering Co., Ltd CSC Fujian Hongjian Engineering Qiu Ming 18950636371 Consulting Co. Ltd 2 FJ-DT-CW-02- Contractor Fujian Dongyu Construction Le Xingbin 13860013008 02 Engineering Co., Ltd CSC Xiamen Jianshi Engineering Zheng Jinhui 13905018053 Management Co. Ltd. Yongding Subproject 1 FJ-YDLY-CW-04 Contractor Fujian Yong Wang Construction Lin Xunyang 13605921793 Group Co. Ltd. CSC Longyan Rundaxin Engineering Wu Aihe 15960937616 Managements Co. Ltd Pinghe Subproject 1 FJ-PH-CW-01- Contractor Fujian Minying Construction Huang Yi 15859648661 01 Development Co., Ltd CSC Fuzhou Xintiandi Engineering Chen 15280060095 Management Co. LTD Changzeng 2 FJ-PH-CW-05- Contractor Fujian Jingfang Construction Lai Huiting 18859612312 01 Engineering Co. LTD CSC Fujian Hongye Construction Huang 13605092370 Supervision Co. LTD Jianqing Ninghua Subproject 1 FJ-NHLC-CW- Contractor Ninghua County Forestry Lai Zhilun 13950953173 06 Corporation CSC Fujian Guangxia Engineering Xu Zhijin 13950978977 Consulting Co., Ltd 2 FJ-NHLC-CW- Contractor Ninghua County Economic and Chen 13806975790 07 Forestry Service Center Nanchang CSC Fujian Guangxia Engineering Xu Zhijin 13950978977

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Environment No. Contract Name Organization Name of organization person Contact name Consulting Co., Ltd Lvyin Subproject 1 FJ-JCLY-CW-01 Contractor Fujian Yuanhong Construction Engineering Co.,Ltd. CSC 2 FJ-JCLY-CW-02 Contractor Fujian Yuanhang Construction Engineering Co.,Ltd. CSC CSC=Construction supervision company

Contractual arrangement. In accordance with requirements of the loan agreement and EMP, the PPMO has incorporated the provisions of the EMP into the bidding documents and Work contracts of each subproject.

General Contract Conditions of the bidding documents have clearly defined as: 1) the contractor shall be responsible for the safety of all activities on the site; 2) the contractor shall take all reasonable measures according to applicable environmental protection laws and regulations to protect the environment on and in vicinity of the site and avoid damages or nuisances to personnel or to property of the public and others resulting from pollution, noise or other causes arising as a consequence of the contractor's acts and/or operation.

Particular conditions of the contract requires that the contractor shall comply with (i) all environmental laws and regulations of the People’s Republic of China; (ii) the Financial Institution’s environmental safeguards; (iii) the measures and requirements set forth in the environmental impact assessment (EIA) and the environmental management plan (EMP) attached; and (iv) any corrective or preventative actions set out in safeguards monitoring reports that the Employer will prepare from time to time for monitoring the EIA and EMP implementation; (v) the Contractor shall allocate a budget for compliance with these measures, requirements and actions.

Conclusions. The institutional setup fully complied with the EMP requirements.

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Figure 1. Designated Environment Persons

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B. Implementation of the project mitigation measures

Implementation of the mitigation measures in the EMP is summarized in Table 3. This table is the same as Table A1.2 of the EMP but has 2 additional columns, to summarize the implementation status and compliance for each listed mitigation measure within the reporting period.

Table 3. Project impacts, mitigation measures, and implementation status Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? Pre-construction 1.1 Confirmation Confirm that final slopeland It has been confirmed that all Complied Prerequisite of slopeland boundaries of subprojects avoid subprojects slope land boundaries steps and boundaries regrowth natural forest and avoid regrowth natural forest and Detail Design shrubland as agreed in screening. shrub land. Stage Water Obtain a water use permit for water The design institutes have provided Complied extraction inputs from the local Water all details required for the application permission Resources Bureaus – providing all to the WRBs. details required for that application All PIUs have obtained water use to the WRB permit from WRBs. 1.2 Project Establish and Contract a Loan Implementation LIEC has been in place since March Complied environmental implement Environmental Consultant (LIEC) 2018 Support environmental Contract Environmental Monitoring Seven PIUs (Jiaocheng, Datian, Being support Stations in each county for external Yongding, Wuyishan, Pinghe, Fu’an, complied positions monitoring Ninghua subprojects) have contracted environmental monitoring company (EMC) for external monitoring. Next steps: The other PIUs will contract EMCs one month before its first civil work construction. A Timetable for PIUs to contract EMCs has been proposed by the LIEC and PPMO and agreed by all PIUs. Appoint Environmental Officers at Environmental officers have been Complied PPMO and CPMOs appointed at PPMO, Municipal PMOs, CPMOs in May 2018 Assign environment officers at each Each PIU has assigned environment Complied PIU officers in May 2018 1.3 Update EMP Update mitigation measures defined Ten subprojects proposed to quit. Complied Construction in this EMP based on the detailed Two subprojects (Guangze County Preparation design. and Pinghe County) proposed Stage change locations. Two subprojects (Shouning County and Pucheng County) propose to be newly added. The FSRs for the above mentioned subprojects that proposed to change scope are being prepared. Domestic EIA institutes have been contracted and will prepare the EIAs once project activities determined and draft FSRs available.

Addendum IEE will be prepared with updated EMP when the DEIAs available.

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? For the ongoing implemented subprojects, mitigation measures are kept same as the defined in the EMP. No need to update. Construction  Prepare environment section in Environmental section was included Complied plans and the terms of reference for in TOR for bidders and the first documents construction bidders; bidding documents has been reviewed and approved by the ADB.  Prepare environmental contract The EMP has been translated into Complied clauses for construction, using Chinese and attached to the civil reference to EMP and monitoring work contracts. table. Establish and  Identify GRM entry points and GRM has been established and Complied publicize brief them on their role; entry points has been identified GRM  Publicize GRM entry points, All PIUs publicized GRM entry Being people and contacts at each PIU points, at construction sites or complied construction site, in local village committee before newspapers, websites and construction commence. village committee and community premises before construction commences Construction  Prepare Site Construction Plans All contractors prepared site Being site planning including appropriate parts for construction plans complied each PIU from the project EMP, including an environmental health and safety plan  Nominate an Environmental, Each contractor nominated an Being Health and Safety Officer Environmental, Health and Safety complied (EHSO) in contractors’ team Officer.  Develop site environmental Environmental health and safety Being health and safety plan. plans are developed and submitted complied to the PIUs. Environmental  LIEC to provide training on  LIEC provided training on Being Training implementation and supervision supervision of environmental complied of environmental mitigation mitigation measures, GRM and measures to contractors new subproject selection criteria to environmental officers of PPMO, MPMOs, CPMOs and PIUs in training workshop held in Fuzhou on 7 November 2019.  Moreover, LIEC provided training to contractors with focus on mitigation measures implementation during construction site visits to Wuyishan subproject on 4-5 December 2019.  Training to new subproject CPMOs and PIEs in Shouning and Pucheng County were also conducted focus on the selection criteria of new subprojects, 4-6 November 2019, Shouning County and Pucheng County.

Construction 2.1 Air Quality Local air  Material stockpiles and concrete In general, there is no significant air Being

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? pollution from mixing equipment will be pollution issue. complied construction equipped with dust shrouds. Concrete mixing equipped with dust activities shrouds. Material stockpiles were covered  Earthworks to prepare site Implemented Being should be undertaken just before complied commencement of construction to avoid long term stockpiling.  Vehicles transporting potentially Implemented Being dust-producing materials will Site visits found vehicles are complied have proper fitting sides and tail covered with protective canvasses; boards and covered with roads to project sites were kept protective canvasses; clean.  On-site movement of cement Implemented according to CSC Being bags should not overload people report. No cement bags movement complied or vehicles to minimize bag was found during PPMO, MPMO, rupture and spillage; CPMO, and LIEC site visits.  Unauthorized burning of waste Implemented. Being plant material during land No waste burning was found during complied preparation shall be subject to reporting period. penalties for the Contractor, and withholding of payment. Construction For villages within the noise impact Implemented. Being noise distance from construction All of the current construction sites complied operations: are more than 35m away from  Erect temporary noise barriers residents area between work site and residents where less than 35m apart.  Daily construction schedules will Implemented according to CSC Being be arranged to prohibit work in report complied lunch break and at night.  Villagers will be notified before Implemented according to CSC Being construction activities which emit report complied high noise levels are scheduled.

 The construction schedule will Implemented according to CSC Being be arranged to avoid multiple report complied large-scale and noise emitting machinery operating simultaneously.  To avoid noise impacts on Implemented according to CSC Being sensitive points along the main report complied road from transport vehicles the construction unit will reduce the number of vehicles and traffic flow, set speed limits and prohibiting the use of the horn in villages. 2.2 Soil Erosion and  Implement erosion controls set Implemented according to CSC Being stability siltation out in Soil and Water report. complied Conservation Law of PRC. No significant soil erosion issue identified during site visit.  Terraces and soil tillage will be Implemented. Being conducted along contours and Site visit found that vegetation are complied keeping vegetation between kept between contour terraces. contour terraces to prevent soil Trees in fields are kept. erosion.

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance?  For new terraces and crops, the Implemented. Being time and degree of exposure to New terraces are constructed during complied erosive forces must be dry season to prevent soil erosion minimized.  Special scrutiny on erosion Implemented. Being control will be directed to the Weekly inspection was conducted by complied following subprojects due to the Yongding and Ninghua CPMOs, and large scale of earthworks daily inspection has been conducted planned: Youxi County by the CSCs of Yongding and Yangzhong Xinkaicheng Urban Ninghua subproject. Construction Co., Ltd; Ninghua Youxi subproject was cancelled. State-owned Ecological Forestry Co. Ltd; Longyu Ecological Industry Development Co., Ltd 2.3 Water Pollution of  Oil traps provided for service Implemented according to CSC Being quality surface water areas and parking areas, and oil- report. Oil traps provided at parking complied and water separators are installed area. No waste water was found groundwater before the sedimentation tank for during site visit. oil-containing wastewater;  All construction machinery Implemented according to CSC Being repaired and washed at special report. complied repairing shops. No on-site No on-site machine repair and machine repair and washing washing was found during site shall be allowed; inspection.  Storage facilities for fuels, oil, Implemented according to CSC Being and other hazardous materials report. Site visits found no storage complied within secured areas on facilities for fuels, oil and other impermeable surfaces, and hazardous materials provided with bunds and cleanup kits;  The contractors’ fuel suppliers to Implemented according to CSC Being be properly licensed, follow report. complied proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88) Embankments To avoid impact to downstream Implemented. Being reaches on flows and turbidity, Embankment work has been complied impact mitigation for embankment constructed during October to construction along streams in valley February. floor cropping areas will:  schedule construction work for October to February,  setback 20 m from the stream Implemented Being banks complied  retain all trees currently existing Implemented Being along the banks Trees are retained. complied  retain “soft” earthen and Implemented. Being vegetated foreshores plant the Grass and shrubs are being planted complied embankments with grass and at embankment shrubs. 2.4 Habitat To protect the regrowth natural Implemented. Being Biodiversity protection forests and shrublands not within Construction areas that close to complied the footprint of the subproject natural forest and shrublands are developments but on their borders defined. Construction activities have from careless and unplanned been confined within the areas.

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? construction activities: No damage to nearby natural forest  Minimize the areal extent of was found. construction activities being undertaken at any time.  Ensure strictly assigned to work Implemented. Being areas and access corridors as Work areas have been strictly complied part of site planning and without assigned. occupying land randomly.  Construction machinery and Implemented. Being construction materials will not be Site visits found no construction complied placed in naturally vegetated machinery was placed in naturally areas. vegetated areas.  Ensure stockpiles do not Implemented. Being overflow onto naturally vegetated Site visits found no stockpile complied areas. overflow onto naturally vegetated areas  After the completion of the Being implemented Being project, cleaning and greening Lvyin company complied work shall be carried out to restore any damage. Habitat Shelterbelt forests of native species Implemented Being enhancement indigenous to the region will be Shelterbelt forest was developed. complied developed to protect plantations on Native species were developed. sloping land from winds and drying out. 2.5 Physical Protection of The Yongding Longyu subproject The PIU of Yongding subproject has Being cultural heritage site PIU will ensure that: developed transport route that avoid complied resources  No vehicles hauling materials or pass through the core and buffer equipment to and from the site zone of the World Heritage site. The will be allowed to pass through transportation plan has been the World Heritage site core and forwarded to the contractors. buffer zone.  Transport routes, confirming this Transport route has been developed Complied prohibition will be included in the and pass through core and buffer Yongding subproject Site zone of World heritage site is Construction Plan prohibited.  Damage to any trees or shrubs Implemented, no earth work on the Being on the ridgetop, which provides a ridge top. complied backdrop to the World Heritage site, will be strictly prohibited. Protection of  Chance find procedures in line Implemented Being chance finds with PRC government Chance find procedures have been complied procedures will be established established. No undiscovered for undiscovered underground underground cultural or historic sites cultural or historic sites that were found. might be identified during project implementation. 2.6 Solid waste  Provide waste collection and Implemented. Being Construction generated by storage containers at locations Waste collection and storage complied waste construction away from surface water or containers are provided activities and sensitive receivers. from workers’  Arrange with municipal waste Implemented. Being camps collection services for regular Waste from construction sites are complied collection of waste. regularly collected  Properly remove and dispose Implemented. Being residual materials, and wastes. complied Paving or vegetating shall be

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? done as soon as the materials are removed to stabilize the soil. 2.7 Health Community  Plan construction activities so as Implemented. Being and safety safety to minimize disturbances to All contractors have developed site complied residents, utilities and services. construction plan.  Implement safety measures Implemented. Being around the construction sites to Warning signs places at construction complied protect the public, including sites. warning signs to alert the public to potential safety hazards, and barriers to prevent public access to construction sites.  Negotiate haulage truck and Implemented. Being machinery movements with Village committee was consulted complied village committees to ensure that before construction. village activities (market days etc.) and residential roads are minimally impacted by construction traffic.

Construction  Take all reasonable steps to Implemented Being worker safety protect any person on the site complied from health and safety risks;  Make the construction site a safe Implemented Being and healthy workplace; complied  Make machineries and Implemented Being equipment areas safe; complied  Provide adequate training or Implemented Being instruction for occupational complied health and safety;  Provide all workers with personal Implemented. Being protection equipment; complied  Implement adequate supervision Implemented Being of safe work systems; complied  Provide means of access to and Implemented Being egress from the site without risk complied to health and safety.  The contractors’ performance Implemented. Being and activities for occupational complied health and safety shall be incorporated in their monthly progress reports;  All activities will comply with the Implemented Being Labour Law of the PRC, the complied Labor Contract Law of the PRC, and the Special Rules on the Labor Protection of Female Employees. Operation 3.1 Water Impact on  Minimize use of chemical Not yet due To be surface water fertilizer through soil testing and complied quality from crop management. Maximize use with agricultural of organic fertilizers and straw chemicals mulches.  Reduce chemical pesticide use Not yet due To be by: selection of seedlings with complied disease and insect resistance, with

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance? introduction of nursery stock quarantine, cultivation measures to improve plant resistance to disease and insect pests including removal of diseased plants, pest capture on a population scale using light traps and sticky traps at high density at crops’ insect-prone periods. 3.2 Soil Erosion and  On the steeper slopes, slope- Not yet due To be stability siltation reversed terraces (higher complied elevation at the outside of the with terrace than on the inside) will be equipped with bamboo-joint ditches on the lower edge inside the terrace to harvest runoff and collect eroded soil materials.  At the lower elevation part of the Not yet due To be tea gardens, interception dam complied and rainwater harvest ponds will with be maintained to store this rainwater for irrigation and to store sediments eroded from the tea gardens.  On the more gentle slopes erosion will be prevented by planting on the contour with protective ridges.  As with the terraces, grassed Not yet due To be waterways are used to channel complied runoff water into collector with structures (ponds or concrete tanks).  During crop management, PIUs Not yet due To be will implement erosion controls complied set out in Soil and Water with Conservation Law of PRC. 3.3 Waste Unplanned or  All biomass waste from Not yet due To be unsound cultivation, pruning and weeding complied disposal of will be reused on site either for with agricultural composting or mulch. No waste wastes will be burnt.  Residue of agricultural plastic Not yet due To be film left in the soil will be complied minimized by (i) film mulching with practices which optimize the timing of mulching and timely removal of film to shorten the mulching period; (iii) use of biodegradable polymer agricultural plastic film; (iv) where film is not degradable, promotion of agricultural plastic film recovery and recycling. Fertilizer and  Packaging for fertilizers will be Not yet due To be pesticide recycled by farmer households, complied packaging or subproject enterprises with

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Mitigation measure prescribed in Implementation status, issues In Item Impact/Issue EMP identified and corrective actions compliance?  For pesticide packaging, the Not yet due To be following measures will be complied implemented: with - Training will be conducted for farmers involved in the subprojects, on chemical packaging handling and recycling; - For pesticide packaging and containers, the PIUs will record all the utilization of pesticide, and require staff and farmers to return the empty packages to the PIU. - The PIU will ensure segregation of the pesticide waste at the subproject site from all other waste and will ensure that it is managed/disposed of by the county authorities with other toxic and hazardous waste that they collect. 3.4 Health Health and  Operating staff to be protected Not yet due To be and safety safety of from workplace hazards: complied operating staff with  In the operations phase of the Not yet due To be project, staff engaged in the complied running of the facility including with agricultural activities and irrigation systems will be issued with personal protective gear appropriate to the task.  All electrical connections in the Not yet due To be subprojects will be completed complied and periodically checked by with qualified electricians.  The openings of all water Not yet due To be storage tanks at ground level will complied be fenced and gated to prevent with accidents.  The PIUs and contractors will Not yet due To be apply strict health and safety complied protocols for staff in the handling, with application and clean-up of agricultural chemicals. These protocols will be in full compliance with the PRC’s Regulations on Safe Management of Hazardous Chemicals (Decree 591) ADB = Asian Development Bank; EIA = Environmental Impact Assessment; EPB = Environment Protection Bureau; PIU = Participating Implementing Unit; DI = Design Institute; O and M = operation and maintenance; CPMO = county project management office; PPMO = provincial project management office; PRC = People’s Republic of China; WRB = water resources bureau.

Based on Table 3: Of the 77 mitigation measures proposed in the EMP, 9 measures complied, 51 measures are being implemented, the rest 17 measures to be implemented

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include 1 is not yet applicable as the works at the specific places have not yet started and 16 are not yet due as the mitigation measures is for the stage of project completion or operation.

A questionnaire survey of the PIUs on key issues of environment, health and safety was administered in December 2019. All the PIUs expressed that there has been no occurrence of major accidents relating to construction and community safety, environmental pollution and health.

Table 4 Responses of PIUs to Environmental Management Questionnaire Question Response 1 Between 1 July and 31 December 2019, were there any major safety No accidents in the construction sites (e.g., death, disability, bodily harm, collapse, mechanical accident, etc.)? If yes, please provide details.

2 Between 1 July and 31 December 2019, were there any major No pollution incidents in the construction sites (e.g., accidental release of toxic or hazardous chemicals, unauthorized discharge of wastewater, unauthorized piling or dumping of solid waste, etc.)? If yes, please provide details.

3 Between 1 July and 31 December 2019, were there any major No construction-related traffic incidents in / near the construction sites (e.g., death, disability, bodily harm, vehicular overturn, damage to vehicles, etc.)? If yes, please provide details.

4 Between 1 July and 31 December 2019, were there complaints No received by mayor’s hotline, construction contractor, PMO and IA concerning construction noise, dust, traffic safety and jam, etc.? If yes, please provide details.

5 Between 1 July and 31 December 2019, were the project or contract No sections fined / warned by environmental management authorities for violation of environmental regulations (dust, noise, etc.)? If yes, please provide details.

Conclusions and next steps. Most mitigation measures are being implemented and the project is in compliance with the EMP requirements.

Next steps include:

 The PIU of Yongding Longyu Company should contract an EMC and initiate the first monitoring as soon as possible.  All PIUs recruit EMC one month before subproject civil work construction.

C. Implementation of the project monitoring program

The following environment safeguard monitoring was conducted in the reporting period: internal monitoring, external monitoring, and compliance monitoring. Summary data of external monitoring are presented in Table 6. Raw data are in Appendix 2. Photographs from site inspection and monitoring activities are in Appendix 3. A summary of the monitoring activities is presented here.

Internal monitoring. (i) Regular site inspections have been performed by the CSCs on a daily basis; (ii) Regular site inspections have been performed by the PIUs Environment Officer with assistance of CSCs on a weekly basis. The internal monitoring results have

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been prepared by the CSCs and submitted to PIUs for review on a monthly basis since November 2017. (ii) Random site inspections performed by PPMO, MPMOs and CPMOs.

External monitoring. With civil work contracts awarded, EMCs have been recruited gradually. By the end of reporting period, four EMCs have been recruited to implement external monitoring program for the 7 subprojects that have awarded civil work contracts (Table 5). The engagement of EMCs complied with the EMP.

Table 5 List of EMCs Contracted by the PIUs Subproject Date of EMC recruitment Name of EMC Jiaocheng May 2018 Fujian Zhongke Environmental Monitoring Co. Ltd Fu’an Nov 2019 Fujian Zhongke Environmental Monitoring Co. Ltd Wuyishan Mar 2019 Fujian Zhongke Environmental Monitoring Co. Ltd Pinghe Sep 2019 Xiamen Keyi Testing Technology Co., Ltd Yongding Oct 2019 Fujian Zhongkai Testing Technology Co., Ltd Datian May 2019 Fujian Sanming Houde environmental testing Co., Ltd Ninghua July 2019 Fujian Sanming Houde environmental testing Co., Ltd Xinluo Not yet due Guangze Not yet due Shouning Not yet due Pucheng Not yet due

According to the environmental monitoring plan defined in the EMP, quarterly air quality and noise level monitoring and semi-annual water quality monitoring shall be carried out during construction period. During reporting period, the external monitoring activities are as follows and detail monitoring results are presented in Appendix 2.

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Table 6. Summary of External Monitoring Activities and Results during reporting period County Phase Variable Location Indicator Frequency Monitoring Results meet the Corrective actions compliant with EMP required program? Y/N standards? Y/N Wuyishan Construction Water 3 creeks pH, SS, COD, Petroleum Once Yes Yes No Air 6 villages TSP, PM10 Twice Yes Yes Noise LAeq Twice Yes Yes Operation water Not applicable Not applicable Not applicable Not yet due Not yet due Not yet due Datian Construction Water 4 creeks pH, SS, COD, Petroleum No Partly Partly EMC to increase frequency Non-compliance is SS exceed standard Contractor in Taoyuan Air 4 villages TSP, PM10 Once for Q4 less frequency Yes strengthens construction Noise LAeq Once for Q4 Yes wastewater management, sediment tank is needed. PIU to follow Operation water Not applicable Not applicable Not applicable Not yet due Not yet due Not yet due Jiaocheng Construction Water 1 creek pH, SS, COD, Petroleum Not applicable Yes Not applicable No Air No sensitive site Not applicable Not applicable Civil works completed Not applicable Noise Not applicable Not applicable Not applicable Operation Water 1 creek pH, SS, COD, BODs, TP, NH3-N Once Yes Yes No Yongding Construction Water 3 creek pH, SS, COD, Petroleum Once for Q4 Partly Yes EMC to increase monitoring Air 5 villages TSP, PM10 Once for Q4 Non-compliance is Yes frequency Noise LAeq Once for Q4 less frequency Yes Operation Water 1 creek pH, SS, COD, BODs, TP, NH3-N Not yet due Not yet due Not yet due Not yet due Ninghua Construction Water 2 creek pH, SS, COD, Petroleum Once for baseline Partly Yes EMC to increase monitoring Air 2 villages TSP, PM10 Once for baseline Non-compliance is Yes frequency Noise LAeq Once for baseline less frequency Yes Operation Water 2 creek pH, SS, COD, BODs, TP, NH3-N Not yet due Not yet due Not yet due Not yet due Other Construction are not started Not yet due Not yet due Not yet due subprojects BOD = biological oxygen demand; COD = chemical oxygen demand; TN = total nitrogen, SS = suspended solids. TP = total phosphorous, TSP = total suspended particles; NH3-N = ammonium nitrate.

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• Datian subproject. Baseline monitoring was conducted in June 2019, one month before the first civil work construction in July 2019. Based on the EMP requirement, air and noise should be monitored twice and water should be monitored once during this reporting period. However, the air quality and noise level was monitored only once in November 2019 while the water quality was not monitored. Monitoring parameters for all variables complied with the specified standard, except water quality of Taoyuan creek which is high in SS. The monitoring activities partly comply with the EMP. The monitoring frequency is less than that specified in EMP.

• Wuyishan subproject. Baseline monitoring completed in previous reporting period. During reporting period, quarterly air quality and noise level was monitored at 6 locations for Q3 2019 on 5-6 August 2019 and for Q4 2019 on 19-20 September 2019, and semi-annual water quality was monitored for two creeks on 19-20 November 2019. All required external monitoring activities were completed. Monitoring parameters for all variables complied with the specified standard. The external monitoring fully complied with the EMP.

• Yongding subproject. No baseline monitoring was conducted before construction. During this reporting period, no monitoring was conducted for Q3 2019. Air quality, water quality and noise monitoring was conducted for Q4 2019 on 4-5 November 2019. Monitoring parameters for all variables complied with the specified standard. In general, external monitoring activities partly complied with the EMP requirement. The monitoring frequency is less than that specified in EMP.

• Jiaocheng subproject. The subproject construction was completed in March 2019. Baseline and construction phase monitoring were carried out during previous reporting period. During this reporting period, monitoring for operation phase was conducted in September 2019. The parameters monitored complied with the specified standard. The monitoring complied with the EMP.

• Fu’an subproject. Baseline environment quality monitoring was conducted on 25 November 2019, one month before civil work construction. No civil work initiated during reporting period. The monitoring activities are fully complied with the EMP requirement. The parameters monitored complied with the specified standard.

• Pinghe subproject. Baseline environment quality monitoring was conducted on 16 November 2019, one month before civil work construction. No civil work initiated during reporting period. The monitoring activities are fully complied with the EMP requirement. The parameters monitored complied with the specified standard.

• Ninghua subproject. Baseline environment quality monitoring was conducted on 24 July 2019. No environment monitoring was conducted during construction period in Q4 2019. The monitoring activities do not fully comply with the EMP requirement.

Compliance monitoring. The LIEC was recruited on March 2018 as part of the loan implementation company. During the reporting period the LIEC: (i) conducted filed visit to Wuyishan subproject site, Shouning subproject site and Pucheng subproject site; (ii) assisted the PIUs in contracting external environmental monitoring companies; (iii) assisted the PMOs and PIUs in selecting new subprojects; (iv) reviewed project progress and compliance with the EMP; (v) held discussions with the PPMO, MPMOs, CPMOs Environment Officers and PIUs on the establishment of the GRM and implementation of the EMP; and (vi) assisted the PPMO Environment Officer in preparing the first semi-annual EMR to ADB.

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Conclusions and next steps. During the reporting period, internal monitoring have been carried out regular by CSCs and PIUs on a daily and weekly basis. Random inspections have been performed by the PMOs at different levels. Compliance monitoring has been conducted by the LIEC randomly. The internal monitoring and compliance monitoring complied with the EMP requirement. No significant environment impacts were identified at construction stage of works. Mitigation measures are implemented in compliance with the EMP requirements. All the seven PIUs that imitated or plan to initiate civil work construction have contracted with EMCs to conduct external monitoring. The 7 EMCs carried out external monitoring for the 7 subprojects. The external monitoring partly complied with the EMP requirements. The incompliances include monitoring frequencies for Datian, Yongding and Ninghua subprojects do not fully complied with the EMP requirements. The parameters monitored complied with the specified standard except SS in Taoyuan creek of Datian. Next steps include:

 The PIUs of Datian, Yongding and Ninghua should remind the EMCs to conduct air and noise monitoring quarterly and water semi-annually according to the EMP.  The Datian PIU should inform contractor whose construction site is near Taoyuan creek to construction sediment tank to ensure no construction wastewater directly flow into Taoyuan creek.

D. Public consultations and grievance redress mechanism

Public consultation conducted includes EIA public opinion survey, socioeconomic and AP surveys, public consultation meeting, questionnaire survey and site visits organized by the PIUs, Design Institutes and EIA institutes during the project preparation period.

Meanwhile, the EMP contains a comprehensive public consultation program for the construction and operation phases, as shown in the table below. The public consultation program includes public participation in: (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental benefits and social impacts, and (iii) interviewing the public after the project is completed. The PMO and PIO are responsible for public participation during project implementation. They are supported by the loan implementation environmental consultants.

During construction, information disclosure is achieved primarily through the bulletin boards erected at each construction site, as required by Chinese law. The bulletin boards contain a description about the project, layout map, construction safety, labour standards, environmental and health standards, name of the contractor(s) and names and contact information of the on-site managers and company executives. Public complaints can also be lodged through the 24-hour hotlines of the municipal and county EPBs in the three project cities (“12369” – common number country-wide). The municipal and county EPB also have online complaints gateways in their webpages. Despite the construction bulletin boards, the PIU of Jiaocheng subproject, Lvyin Company, also poste the project information and GRM entry points at the information board of nearby villages. However, the Longyu Company, PIU of Yongding subproject didn’t formerly publicize the GRM information at nearby villages. As of today, no formal public complaint has been received.

During reporting period, all of the PIUs conducted informal interviews with people from local villages. The aim of these interviews was to seek their comments on the implemental of mitigation measures. The interviews provided residents within and near the project sites the opportunity to learn more about the project, including the schedule of works and activities in the coming months. The project GRM was again presented to stakeholders, including key contact details.

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Conclusions and Next Steps. So far, the village committees, local governments, PIUs and CPMOs have not received any petitions and/or complaints. Next steps include:

 The public consultation will be organized by CPMOs and PIUs regularly in the remaining implementation period. If there are any petitions and/or complaints, the related agencies will make records.  PIUs of Yongding subprojects publicize project information and GRM entry points at local villages.

E. Training and capacity building

During the reporting period, 4 training events were conducted (Table 7) and documentation for the training events (e.g. participant lists) is in Appendix 3.

 One comprehensive project management training workshop was organized by PPMO in Fuzhou with participants of project management staff from PPMO, MPMOs, CPMOs and PIUs. The training covered topics: ADB environment safeguard policy, PRC national environmental laws and regulations, EMP implementation and supervision, Environmental monitoring, inspection and reporting, public participation and GRM. The training focus on project management including environment management.

 One training was conducted during field visit to construction site of Wuyishan subproject. Consultations by the LIEC were given to the contractors and supervision companies on the implementation and supervision of mitigation measures. The consultation was conducted for construction workers and staff waring about good practice of environment protection, related safety which should be followed during each type of civil works

 Two trainings were given to the CPMOs and PIUs during site visit to new subprojects sites in Shouning County and Pucheng County. Guidance on the selection criteria of subproject was provided by the LIEC. Meanwhile, subproject technical requirements were provided to the FSR design institute and ADB requirements on EIA were provided to the EIA design institute.

Table 7 Training for environmental safeguards conducted during the reporting period # Topic Trainees Content Trainees Date Outcomes M F Environmental PPMO, SPS, domestic environmental 40 30 7 Nov. Trainees demonstrated safeguard MPMOs, laws, international best 2019 good understanding of policy CPMOs, practice for construction; regulatory frameworks; PIUs FSR EMP Design Environmental management Trainees expressed implementation institutes, responsibilities during appreciation for EIA construction; reporting format training, requested institutes for EMP compliance; issues further guidance and corrective actions; concerning opportunities for improvement environmental of EMP; management and monitoring procedures and reporting format Environmental Environmental monitoring and Basic understanding of monitoring, inspection methods, data the environmental inspection and collection and processing, monitoring procedures

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# Topic Trainees Content Trainees Date Outcomes M F reporting interpretation of data, and reporting reporting systems requirements GRM GRM structure, Basic understanding of responsibilities, steps; types GRM concepts of grievances, eligibility achieved but further assessment; gender training required; responsive GRM reporting procedures Environmental PPMO, SPS, domestic environment 6 3 4 Nov Basic understanding of safeguard Ningde laws, regulations 2019 the ADB SPS. policy MPMO Subproject selection criteria Good understanding of Subproject Shouning prescribed in the project the subproject selection CPMO agreement selection criteria in the criteria Shouning Project Agreement PIU GRM PPMO, Roles and responsibilities, Good understanding of Ningde procedures, review of GRM concepts MPMO experience achieved but further Shouning training required; CPMO, PIU Environmental Shouning ADB SPS, 2 1 4 Nov Basic understanding of safeguard subproject Gaps between PRC EIA and 2019 the ADB SPS policy EIA ADB SPS requirements Basic understanding Project institute Subproject selection criteria the subproject agreement selection criteria Subproject Shouning Subproject selection criteria 2 2 4 Nov Basic understanding Technical subproject Subproject Technical 2019 the subproject Requirement in FSR Requirement in the PA selection criteria and the PA design technical requirements institute defined in the PA Environmental PPMO, SPS, domestic environment 6 3 5 Nov Basic understanding of safeguard Nanping laws, regulations 2019 the ADB SPS. policy MPMO Subproject selection criteria Good understanding of Subproject CPMO, prescribed in the project the subproject selection Pucheng agreement selection criteria in the criteria PIU Project Agreement Subproject Pucheng Subproject selection criteria 2 2 Basic understanding Technical subproject Subproject Technical the subproject Requirement in FSR Requirement in the PA selection criteria and the PA design technical requirements institute defined in the PA GRM PPMO, Roles and responsibilities, Good understanding of Nanping procedures, review of GRM concepts MPMO experience achieved but further Pucheng training required; CPMO, PIU Environmental Pucheng ADB SPS, 2 1 5 Nov Basic understanding of safeguard subproject Gaps between PRC EIA and 2019 the ADB SPS policy EIA ADB SPS requirements Basic understanding Project institute Subproject selection criteria the subproject agreement selection criteria

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# Topic Trainees Content Trainees Date Outcomes M F EMP GPMO, Pollution control on 12 5 5 Dec Basic understanding implementation MPMOs construction sites (soil 2019 the requirements Wuyishan erosion, air, noise, defined in the EMP PIU wastewater, solid waste), use Contractors of PPE during construction CSCs and operation, occupational health and safety Greening construction standards and samples. Monthly progress report preparation

Total trainees 72 47 Grand total: 119 ADB = Asian Development Bank, CPMO=county project management office, CSC=construction supervision company, EMC = environmental monitoring Company, EMP = environmental management plan, F = female, GRM = grievance redress mechanism, LIEC = loan implementation environment consultant, M = male, MPMO=municipal project management office, PIU=project implementation unit, PPMO = provincial project management office, PRC = People’s Republic of China, SPS = Safeguard Policy Statement

To date, a total of 14 training events were undertaken. 339 participants (including 119 during this reporting period) from PPMO, MPMOs, CPMOs, and PIUs participated in the trainings. At the end of each training session, participants were given half hour to ask questions so that the trainers could clear understand what should be done and how to follow-up.

Results. During the trainings, all the participants agreed to conduct the environment management according to the EMP. After the training, basic understand the EMP implementation, monitoring and reporting requirements as well as the GRM concepts and implementation are achieved. The training material has been delivered to all participants.

Conclusions and next steps. Comparing with the environmental training plan proposed in Table A1.6 in the EMP, more training have been conducted by the PPMO and LIEC in terms of training topics, times and number of participants.

 With the progress of subprojects, new contractors and CSCs will be contracted, training to the contractors and CSCs on implementation of environment measures and inspection will be held in the following reporting period;

 With the construction completion of subprojects, more training will be given by the LIEC to the PIUs such as Lvyin PIU on the project completion report (PCR) preparation, and monitoring requirements for trial operation and operation phase.

 During next reporting period, more training will be provided by the LIEC on the ADB SPS to the EIA institutes that are preparing domestic EIAs for site change subproject in Guangze County or new subprojects in Shouning County and Pucheng County

F. Costs of EMP implementation during the reporting period

An estimation of the total costs spent to implement the EMP is difficult, because (i) the costs are spread across the PMO, contractors, CSCs, LIEC, and external monitoring agencies; (ii) the costs for environmental management are usually included within the lump sum contract amounts between the PMO and contractors or other agencies. However, an estimate of total costs spent to date includes was made (Table 8)

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Table 8. Cost for EMP Implementation (Unit: CNY X103) 2nd 2nd 2nd 2017- 1st half 2nd half 1st half 1st half 1st half Cumulative Item half half half EMP 2018 2019 2019 2020 2021 2022 Cost 2020 2021 2022 GRM 150 150 150 450 750 establishment Construction 100 10 150 260 208 site planning

Erosion control 600 33 4,227 4,860 46,869

Protection of 150 16 120 286 1,510 water quality Forestry - 1,979 1,714 3,693 71,250 Health and 190 90 652 932 7,450 Safety Environmental 87 53 69 209 1,413 monitoring Training 60 10 50 120 120 Total 1,337 2,341 7,131 10,809 129,570

Based on these estimates, the total amount spent to date for implementation of the EMP is approximately CNY 10.81 million. The annual cost to date is much smaller than the EMP estimated annual cost. This is mostly due to cancellation of 10 subprojects, and the slow progress in civil work construction of the whole project.

G. Due diligence for project scope changes

As of the end of reporting period, changes in scope of the project were initially proposed. The major changes include: (i) Of the original 19 subprojects, 10 subprojects were cancelled, two subprojects (Guangze County and Pinghe County) locations were proposed to be changed (ii) two subprojects (Shouning County and Pucheng County) were proposed to be newly added.

The FSRs for the four subprojects proposed to change locations or to be newly added are under preparation. Four EIA institutes have been contracted to prepare domestic EIAs for the four subprojects. The EIA institutes haven’t initiated their field visits to the project sites since the drafts FSRs are not available and the subprojects activities are not defined.

Due diligence was conducted by the LIEC and ADB review mission to verify whether the selected subproject counties meet with the Project County Selection Criteria prescribed in the Project Agreement. The DDR found that the two selected counties are fully incompliance with the selection criteria. Both Shouning County and Pucheng County are less developed counties eligible for the central government’s support. The two counties are key soil erosion-prone counties with demonstrated erosion problems. The two counties complied with ADB’s project design which follow the principal of (i) sustainable development of agricultural land for economic purposes, (ii) emphasis on environment, soil and water resource protection, and (ii) ensuring there is opportunity to participate in equitable benefit sharing from the project which promotes cooperation between farmer households, cooperatives and project enterprises.

The LIEC provided special trainings, focusing on the topics of subproject selection criteria and subproject technical requirements, to the PPMO, CPMOs in Shouning County and Pucheng County, PIUs of the two subprojects and the FSR design institutes in

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November 2019. Moreover, the LIEC provided trainings to the EIA institutes on the ADB SPS, especially the requirements on the IEE preparation and the gaps between PRC EIAs and ADB requirements.

The LIEC visited several subproject sites in the two counties in November and December 2019 to verify whether the selected subproject activities met with the Subproject Selection Criteria prescribed in the Project Agreement. Some subprojects such as one subproject located in water resources protection areas in Shouning County, one embankment subproject that might involve in cutting of large number of riverside trees in Pucheng County have been suggested to be excluded.

Next steps. A consolidated addendum IEE, covering the four subprojects with location changes and newly added, will be prepared when the draft domestic EIAs are available and submit to the ADB for review.

H. Compliance with loan and project assurances

The loan agreement and project agreement between the government and ADB includes 25 assurances (or “covenants”) for environmental safeguards and/or related to environmental issues (Appendix 1). These relate to the timely and effective implementation of the EMP, as well as project-specific assurances tailored to the current project. Compliance with these assurances is a condition of the loan and project agreements. For the current reporting period: (i) 2 of the assurances complied with and (ii) 23 of the assurances are being complied with.

I. Issues for Follow-Up Documented in the Previous Environment Monitoring Report and any Missions undertaken During the Current Reporting Period

On 3-9 December 2019, a review mission from the Asian Development Bank visited Fujian Provincial Government to review the project progress, including the status of EMP implementation. Environmental issues described in the mission memorandum of understanding (MOU), and the previous EMR, and corrective actions taken, are summarized in Tables 8 and Table 9 respectively.

Table 9 Corrective Actions to Address Environment Safeguard Issues Identified in the ADB Mission 3-9 December 2019 When Whom What Corrective Action 31 Dec PIUs of Shouning, Contract EIA institute The four PIUs contracted EIA institutes 2019 Pucheng, Guangze by 31 December 2019 and Pinghe Counties 25 January EIA institutes Draft DEIAs prepared Not yet due 2020 15 March PPMO draft addendum IEE Not yet due 2020 submitted to ADB

Table 10 Corrective Actions to Address Environment Safeguard Issues Identified in the Previous Environment Monitoring Report Issue Action By When By Whom Corrective Action Obtain water PIUs should submit water One month PIUs Not yet due permit from use application to WRBs before water WRBs extraction Burn waste Greening on the damaged April 2019 Contractor of FJ- Notice by PMO issued plants for land area JCLY-CW-01, the in December 2019. preparation Yuanhong Trees were planted on Company the damaged area in March 2019.

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Issue Action By When By Whom Corrective Action Soil Erosion Greening the slopeland April 2019 Contractor of FJ- Notice by PMO issued caused by bottom area by spreading JCLY-CW-01, the in December 2019. herbicide grass seed or planting Yuanhong Grass seed was spread utilization trees Company on the slopeland bottom area in March 2019.

J. Reporting

The project reporting requirements for environmental safeguards are summarized in Table 10 and comprise: i) progress reports from contractors and CSCs to the PMO; (ii) progress reports on external monitoring from an environmental monitoring agency to the PMO; (iii) environmental monitoring reports (EMRs) from the PMO to ADB.

Table 11 Project reporting requirements for environmental safeguards Reports From To Frequency Progress Construction Phase External Environmental Qualified PIUs Quarterly  Jiaocheng:1 semi-annual report environment monitoring environmenta CPMOs (for air and submitted (complied) al monitoring report l monitoring Local noise)  Datian: Q4 report submitted (lack stations EPBs Semi- Q3 report) annual  Wuyishan: Q3 and Q4 submitted (for water) (complied)  Ninghua: baseline+Q4 report submitted (lack Q3 report)  Yongding: Q4 report submitted (lack Q3 report)  Fu’an: baseline monitoring in Nov 2019 submitted (complied)  Pinghe: baseline monitoring in Nov 2019 submitted (complied) Compliance Environment PPMO, LIEC ADB Semi- 3 monitoring progress and annual monitoring reports Acceptance Environmental Licensed Local Once; Not yet due report acceptance acceptance EPB, within 3 report institute EPD months of completion of physical works Operational Phase Compliance Compliance LIEC ADB Quarterly Not yet due monitoring with EMP measures report (first year of operation) External Environmenta Qualified Local Quarterly Not yet due environmental l monitoring environmenta EPBs, monitoring report (first l monitoring CPMOs year of stations operation)* Progress Environmenta PPMO ADB Semi- Not yet due report l progress annual report

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ADB = Asian Development Bank; EPD = Environmental Protection Department; EPB = Environment Protection Bureau; LIEC = Loan Implementation Environment consultant; CPMO = County Project Management Office; PIU = Project Implementation Unit; PPMO = Provincial Project Management Office

Conclusions and next steps. Monthly report from CSCs to PIUs complied with the EMP. 4 of 7 PIUs submitted external monitoring reports as per EMP requirement, while the rest 3 PIUs including Datian Golden Phoenix Co., Yongding Longyu Co. and Ninghua Forestry Co failed to submit external monitoring report timely. The EMR submission is late too. The next EMR will be for the period 1 January to July 2020 will be submitted to ADB on 31 July 2020.

V. LESSONS LEARNED

Key lessons learned during the reporting period for environmental management were:

 The LIEC should be informed timely when new civil work contract signed to allow the LIEC reminds the PIUs and EMCs to conduct external environment as per EMP.

VI. NEXT STEPS

Based on the findings of this EMR, corrective actions and next steps are required for several issues (Table 11). The actions largely relate to external monitoring and training. Actions are planned for 1 January 2020 to June 2020 and will be reported on in the next EMR.

Table 12 Environmental issues and Corrective Actions Issue Action By When By Whom External Increase monitoring agency 31 March 2020 PIUs of Datian, Ninghua monitoring and Yongding frequency Wastewater Construct sediment tanks at 31 March 2020 Contractor near Taoyuan construction site near Taoyuan creek creek in Datian in Datian County GRM Publicize GRM entry points at nearby 31 March 2020 PIU of Yongding villages Training Training new contractors and Next reporting period LIEC supervision companies on implementation of environmental mitigation measures Training to Lvyin company on project Next reporting period LIEC completion Training to PIUs of Guangze, Shouning Next reporting period LIEC and Pucheng subprojects on new subproject selection.

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APPENDIX 1. COMPLIANCE WITH ENVIRONMENTAL ASSURANCES

This appendix lists the environmental safeguard assurances for the project and the status of compliance with these assurances during the reporting period.

Covenant Reference Status/Remarks LOAN AGREEMENT Procurement of Goods, Works and Consulting Services LA, Being complied with. Schedule 4, Conditions for Contract Award Para. 7 Environmental protection provisions from the EMP The Borrower shall, through FPG, cause the Project have been incorporated into Implementing Agencies not to award any Works all civil work contracts contracts that involve environmental impacts until: (a) FPG has granted the final approval of the IEE; and (b) FPG or the relevant Project Implementing Agency has incorporated the relevant provisions from the EMP into the Works contract.

Implementation Arrangements The Borrower shall, through FPG, ensure that before LA, Being complied with. disbursement to such participating company, each Schedule 5, project implementing agreement between a Project Para. 2 County and a participating company, acceptable to ADB, shall be executed and, inter alia, include the PA, respective participating company’s obligations set forth Schedule, in the Project Agreement and the PAM and shall require Para. 7 such participating company to comply with the IEE, EMP, RP, if any applies to such participating company, GAP and SDAP. The Borrower shall, through FPG, cause the Project Counties to enforce the participating company’s obligations under its respective project implementing agreement to ensure that the Project is implemented in accordance with the Loan Agreement, the Project Agreement and the PAM. The Borrower shall ensure that if, at any time, FPG LA, Being complied with proposes to replace or add a new enterprise as a Schedule 5, participating company, FPG shall seek ADB’s prior Para. 3 Two new enterprises are consent to such change and shall ensure that (i) any selected according to the new proposed participating company meets the selection criteria set out in selection criteria applied for the selection of participating the Project Agreement and companies during the project preparation as set out in the PAM the Project Agreement and the PAM, (ii) all proposed subproject(s) go through ADB due diligence on technical, financial, and safeguard matters similar to the process undertaken under the project preparatory technical assistance, and (iii) each replacement or added participating company complies with all requirements applicable to participating companies set out in the Project Agreement and the PAM. PROJECT AGREEMENT Project County Selection Criteria PA, Being complied with. Schedule, FPG shall, and shall cause the Project Implementing Para. 8 Shouning County and Agencies to ensure that each selected Project county Pucheng County have been meets the following poverty criteria, as further detailed selected according to the in the PAM: each county must be a key provincial-level Project County Selection poverty alleviation county and/or less developed county Criteria set out in the eligible for the central government's support for the Project Agreement and

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Covenant Reference Status/Remarks middle and western provinces in the territory of the PAM. Both counties are Borrower. less developed county eligible for the central government's support. In selecting each Project country, priority shall be given PA, Being complied with. to: (a) key soil erosion-prone counties with Schedule, demonstrable erosion problems; and/or (b) counties in Para. 9 The selected counties are modern agriculture demonstration zones complying with in modern agriculture ADB’s project design which follows the principles of (i) demonstration zones sustainable development of agricultural land for complying with ADB’s economic purposes, (ii) emphasis on environment, soil project design. and water resource protection, and (iii) ensuring there is opportunity to participate in equitable benefit sharing from the project which promotes cooperation between farmer households, cooperatives and project enterprises. Subproject Selection Criteria PA, Being complied with. Schedule, FPG shall, and shall cause the Project Implementing Para. 10 Selected subprojects are Agencies to ensure that each proposed subproject is not located in any protected selected based on the following criteria relating to site, areas. Further identification activities and community’s acceptance, as further is being conducted by the detailed in the PAM: design institutes, EIA institutes and LIEC to (a) each subproject must not be located in ecologically ensure all subprojects sensitive areas, including protected areas (all types selected met with the of national and provincial reserves, reservoirs, subproject selection criteria etc.), wetlands protected areas, water resources set out in the Project protection areas, documented sites for rare or Agreement and PAM. threatened flora and fauna (including nationally protected species), and rare, threatened, or restricted-range habitats; (b) subproject activities on land with a slope of >25º must (i) not be used for crop production (even though the soil and water conservation law indicates that planting perennials in combination with adequate erosion control measures is allowed); (ii) only sites that have been used before shall be considered for rehabilitation with design of those sloping sites compliant to all relevant national and/or provincial regulations for soil and water protection, and construction to minimize soil erosion; and (iii) the Project shall not support subproject activities to convert existing natural forest to production land; (c) subproject activities shall include farmland preparation and its related infrastructure, and related green and sustainable production activities but shall exclude investment or activities for (i) processing, (ii) construction of new reservoirs with capacity over 100,000 m3 and/or dam wall height greater than 15m, or (iii) Works for training and/or testing centers. Road construction activities will be classified by use, size and road surface; (d) each subproject shall be favorable to villagers in sharing potential benefits, including supporting close cooperation among SOEs and PPEs and cooperatives/villagers, with an emphasis on land areas under various cooperative management 42

Covenant Reference Status/Remarks arrangements between SOEs and PPEs and village cooperatives/villagers; (e) for any subproject involving “associated facilities” (as defined by ADB's SPS), those facilities shall have all relevant domestic environmental and/or social approvals already in place prior to commencement of the relevant subproject. Associated facilities are facilities that are not funded as part of the project (funding may be provided separately by the borrower/client or by third parties), and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project, e.g. processing facilities; and (f) each subproject must meet the financial and economic viability assessment requirements, including positive net present value or internal rate of return higher than the cost of capital.

Subproject Technical Requirements PA, Being complied with Schedule, FPG shall, and shall cause the Project Implementing Para. 11 The ADB addressed the Agencies to ensure that each selected subproject meets requirements during review the following technical requirements for reduced soil missions. The LIEC have erosion and sustainable farming systems to ensure provided guidance to the sound subproject design and implementation, as further CPMOs, PIUs and design detailed in the PAM: institutes of the new (a) all Project activities for the modification of land use, subprojects on the including preparation for either cropland or forest Subproject Technical plantation, comply with all relevant national and/or Requirements. provincial regulations for soil and water protection, and construction to minimize soil erosion. Land clearing must be conducted according to the Borrower’s existing technical specifications of soil and water conservation for slope land. Building terraces and soil tillage have to be carried out along contours and keeping vegetation between contour terraces to prevent soil erosion; (b) in the choice of new crops or new farming systems, the protection of the soil must be ensured. For any new system or crop, the time and degree of exposure to erosive forces must be taken into consideration. This is critical for crops that develop slowly or form little canopy (such as onions) or farming/cultivation systems where soil has to be tilled intensively for seedbed preparation; (c) recommendations of fertilizer application (rates) based on local soil and crop conditions must be followed to avoid non-point source pollution; (d) subprojects involving transfer of contracted land must not include either land-lease arrangements against current laws and regulations concerning land or land-lease arrangements signed by village officials without knowledge and consent of village members. For transfer of un-contracted land, village representatives meeting records and signatures are required; and (e) participating PPEs and farmer cooperatives must 43

Covenant Reference Status/Remarks be committed to adopting sound practices for soil and water management and conservation within their project designs. New Subprojects PA, Being complied with. Schedule, During Project implementation, if any new subprojects Para. 12 are added, FPG shall, and shall cause the Project Implementing Agencies to ensure that the same selection criteria and technical requirements applicable to each subproject preparation shall be applied. Requirement of PPEs PA, Being complied with. FPG shall, and shall cause the Project Implementing Schedule, Agencies to ensure that each selected PPE: Para. 13 is willing to invest in farmland reclamation, ecological construction with demonstration and technical piloting;

Environment FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to ensure that the preparation, design, Schedule, construction, implementation, operation and Para. 18 decommissioning of the Project and all Project facilities comply with (a) all applicable laws and regulations of the Borrower relating to environment, health and safety; (b) the Environmental Safeguards; and (c) all measures and requirements set forth in the IEE, the EMP, and any corrective or preventative actions (i) set forth in a Safeguards Monitoring Report, or (ii) which are subsequently agreed between ADB and the FPG. Erosion Control. FPG shall, and shall cause the Project PA, Being complied with. Implementing Agencies to ensure that the PIUs shall Schedule, ensure that the design, construction and operation of Para. 19 subprojects will comply with technical specifications of soil and water conservation for sloping land set forth in Soil and Water Conservation Law of the Borrower (25 December 2010, as may be amended from time to time). Protection of Natural Vegetation. FPG shall, and shall PA, Being complied with. cause the Project Implementing Agencies to ensure that Schedule, (a) the PIUs shall not expand site operations beyond the Para. 20 boundaries agreed for the subprojects and will confirm that there will be no conversion of natural forest or natural shrublands to tea or tea-oil gardens; and (b) all subprojects involving stream embankments (including Wuyishan, Datian, Yongding and Xinluo subproject) will retain existing trees (if any) along both riverbanks. Pesticides. FPG shall, and shall cause the Project PA, Being complied with Implementing Agencies to ensure that no pesticides that Schedule, are listed as “Extremely Hazardous” or “Highly Para. 21 Hazardous” by the World Health Organization are used in the Project, including the prohibition of three pesticides (omethoate, trizophos and dichlorvos) listed in the Fujian Department of

Agriculture’s list of recommended pesticide applications. Weed Control. FPG shall, and shall cause the Project PA, Being complied with Implementing Agencies to ensure that (a) if the use of Schedule, fast-growing non-native species (e.g., grasses) is Para. 22

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Covenant Reference Status/Remarks required for stabilizing bare construction surfaces, only sterilized seedlings (i.e., which cannot propagate) will be used; and (b) to reduce the risk of spreading weeds, pest animals, and/or soil-based organisms, the Project shall prohibit the use of any plant species classified in the PRC as weeds, as defined by the China National Invasive Plant Database (http://www.agripests.cn; 229 species) and by the Ministry of Environment Protection and Chinese Academy of Sciences (19 species). World Heritage Areas. FPG shall cause the Yongding PA, Being complied with subproject implementation agency and its PIU to ensure Schedule, that no activities including truck haulage or machinery Para. 23 movements will pass through the Tulou World Heritage Site core and buffer protection zones, and that no trees on the skyline which forms a backdrop to the Tulou site will be damaged. Water Source Protection Areas. FPG shall cause the PA, Being complied with Datian subproject implementation agency and its PIU to Schedule, ensure that in the drinking water protection zone portion Para. 24 of the Datian subproject area, all tree planting and/or rehabilitation of construction sites using vegetation will only use native plant species to Datian County. Human and Financial Resources to Implement Safeguards and Other Social Requirements FPG shall, and shall cause the Project Implementing PA, Complied with Agencies to make available necessary budgetary and Schedule, human resources to fully monitor and implement the Para. 28 EMP, RF, RP, GAP and SDAP for the Project. Safeguards-related Provisions in Bidding Documents and Works Contracts FPG shall, and shall cause the Project Implementing PA, Complied with. Agencies to, ensure that all bidding documents and Schedule, contracts for Works contain provisions that require Para. 29 ADB-approved bidding contractors to: documents for first NCB civil works package contain comply with the measures relevant to the contractor set such provisions. Bidding forth in the EMP, RF and the RP (to the extent they documents for succeeding concern impacts on the respective affected people packages to be patterned under ADB’s Environmental Safeguards, the Involuntary after the ADB-approved first Resettlement Safeguards and the Indigenous Peoples bidding documents. Safeguards during construction), and any corrective or preventative actions set forth in (i) a safeguards monitoring report, or (ii) subsequently agreed between ADB and the FPG; make available a budget for all such environmental and social measures; (c ) provide the FPG and Project Implementing Agencies with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the project that were not considered in the IEE, the RF and the RPs; (d) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and (e) reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition as soon as possible and no later than the completion of construction. 45

Covenant Reference Status/Remarks

Safeguards Monitoring and Reporting FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to do the following: Schedule, Para. 30 This is the third semi- submit safeguards monitoring reports to ADB (i) in annual environmental respect of implementation of and compliance with ADB’s monitoring report. The next Environmental Safeguards and the EMP, semi-annually report will be submitted to during construction and the implementation of the ADB on 30 September project and the EMP, and thereafter semi-annually 2020. during operation until the issuance of ADB’s project completion report unless a longer period is agreed in the EMP; (ii) in respect of implementation of and compliance with ADB’s Involuntary Resettlement Safeguards and of the RF and the RP, semi-annually during the implementation of the Project, the RF and the RP until the issuance of ADB’s project completion report unless a longer period is agreed in the RF and the RP; and disclose relevant information from such reports to the respective affected people under ADB’s Environmental Safeguards and the Involuntary Resettlement Safeguards promptly upon submission; and (iii) in respect of the land use rights transfer contracts, semi-annually during implementation up until Project completion; if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the project that were not considered in the IEE, EMP, RF and RP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; (c ) no later than the commencement of land acquisition and resettlement activities, engage an independent agency under a selection process and terms of reference acceptable to ADB, to monitor and evaluate the resettlement process, and facilitate the carrying out of any verification activities by such external experts, and forward semi-annual external resettlement monitoring and evaluation reports to ADB during resettlement implementation and annually for two years after the completion of resettlement implementations; and (d) report any actual or potential breach of compliance with the measures and requirements set forth in the EMP, RF or RP promptly after becoming aware of the breach. Prohibited List of Investments FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to ensure that no proceeds of the ADB loan Schedule, are used to finance any activity included in the list of Para. 31 prohibited investment activities provided in Appendix 5 of the SPS. Labor and Health FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to ensure that the core labor standards and Schedule, Approved bidding Borrower’s applicable laws and regulations are complied Para. 32 documents for first NCB with during project implementation. FPG shall, and shall civil works package include cause the Project Implementing Agencies (including such provisions. 46

Covenant Reference Status/Remarks PIUs) to include specific provision in the bidding documents and contracts financed by ADB under the Project requiring that the contractors, among other things: (a) comply with Borrower’s applicable labor law and regulations and incorporate applicable workplace occupational safety norms; (b) do not use child labor; (c) do not discriminate workers in respect of employment and occupation; (d) do not use forced labor; (e) do not restrict workers from developing a legally permissible means of expressing their grievances and protecting their rights regarding working conditions and terms of employment; and (f) disseminate, or engage appropriate service providers to disseminate, information on the risks of communicable diseases, including HIV/AIDS, to the employees of contractors engaged under the Project and to members of the local communities surrounding the project area, particularly women. Grievance Redress Mechanism FPG shall ensure that a joint safeguards grievance PA, Being complied with. redress mechanism acceptable to ADB is established in Schedule, accordance with the provisions of the IEE, the EMP and Para. 34 PPMO environmental the RP, at the PPMO, within the timeframes specified in officer is responsible for the relevant IEE, EMP and RP, to consider safeguards finalizing, establishing, and complaints. coordinating the GRM. The GRM has been established in December 2017 and is being implemented.

The grievance redress mechanism referred to in PA, Being complied with. paragraph 34 shall function to (a) review and document Schedule, eligible complaints of Project stakeholders; (b) Para. 35 proactively address grievances; (c) provide the complainants with notice of the chosen mechanism and/or action; and (d) prepare and make available to ADB upon request periodic reports to summarize (i) the number of complaints received and resolved; (ii) chosen actions; and (iii) final outcomes of the grievances and make these reports available to ADB upon request. Public Awareness and Stakeholder Communication Strategy FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to undertake public awareness campaigns Schedule, through information disclosure, education and Para. 39 consultation on the project and its benefits, including but not limited to information related to the EMP, RF, RP, SDAP and GAP. FPG shall, and shall cause the Project Implementing PA, Being complied with. Agencies to ensure the stakeholder communication plan Schedule, as provided in the PAM is implemented to ensure para. 40 regular information disclosure and implementation progress and to establish an information sharing mechanism for the relevant Project stakeholders.

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APPENDIX 2. MONITORING DATA

A. Monitoring Method

Monitoring method and detection limit for each parameter is shown in Table A2-1.

Table A2-1 Environmental quality detection methods Parameters Analysis Method Standard Detection limit Surface water. Technical Specifications Requirements for Monitoring of Surface (HJ/T 91-2002) pH Glass electrode method GB 6920-86 / SS Gravimetric method GB 11901-89 / COD dichromate method HJ 828-2017 4 mg/L BOD5 dilution and seeding method HJ 505-2009 0.5 mg/L NH3-N Nessler's reagent spectrometry HJ 535-2009 0.025 mg/L Ammonium Molybdate TP GB 11893-89 0.01 mg/L Spectrophotometry Petroleum Infrared Spectrophotometry HJ 637-2018 0.01 mg/L Air. Technical specifications for ambient air quality monitoring (HJ194-2017) PM10 Gravimetric method HJ 618-2011 0.010 mg/m3 TSP Gravimetric method GB/T 15432-1995 0.001 mg/m3 Noise: Environmental quality standard for noise Noise Noise meter GB 3096-2008 /

B. Datian Subproject

1. External Monitoring Agency

The environmental monitoring for Datian subproject was conducted by Fujian Sanming Houde Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations for water, air, noise is shown in Table A2-2 and Figure A2-1.

Table A2-2 Monitoring locations of Datian Subproject Item Location Longitude Latitude Surface water #1 Jizhong village 117º57’16.15’’ 25º32’21.66’’ #2 Jingkou village 117º54’41.22’’ 25º42’44.70’’ #3 Taoyuan village 117º35’05.63’’ 25º47’32.74’’ #4 Shanchuan village 117º49’26.66’’ 25º50’35.15’’ Air #1 Jizhong village 117º57’04.90’ 25º32’08.88’ #2 Jingkou village 117º54’41.24’’ 25º42’43.08’’ #3 Taoyuan village 117º35’05.10’’ 25º47’32.88’’ #4 Shanchuan village 117º49’18.30’’ 25º50’40.49’’ Noise #1 Jizhong village 117º57’04.94’ 25º32’08.85’ #2 Jingkou village 117º54’41.20’’ 25º42’43.06’’ #3 Taoyuan village 117º35’05.05’’ 25º47’32.81’’ #4 Shanchuan village 117º49’18.25’’ 25º50’40.44’’

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Figure A2-1 Distribution map of the monitoring points of Datian subproject

3. Monitoring Frequency

Baseline monitoring. Baseline air quality, noise level and water quality was monitored for the Datian Subproject on 16-18 June 2019.

Construction phase monitoring. During this reporting period, air quality and noise level was monitored on 6-8 November 2019. Water quality monitoring was not conducted.

Operation phase monitoring. Not yet due.

4. Monitoring results

a. Water quality

Baseline water quality monitoring results is presented in Table A2-3Error! Reference source not found.. The results show that water quality in the four creeks can meet grade III of Environment Quality Standard for Surface Water (GB3838-200) except water quality of #3 Taoyuan Creek which is high in SS.

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Table A2-3 Water Quality monitoring results of Datian subproject (Unit: mg/L) Date Locations pH COD SS Petroleum Pre-construction baseline monitoring June 17, 2019 #1 Jizhong creek 6.9 8.89 21 <0.01 #2 Jingkou creek 7.5 12 15 <0.01 #3 Taoyuan creek 7.63 9.83 46 <0.01 #4 Shanchuan creek 6.65 8.52 22 0.01 Monitoring during construction Not conducted during reporting period Environment Quality Standard for Surface 6-9 <=20 30 <=0.05 Water (GB3838—2002) Grade III

b. Air quality

During reporting period, air sampling was conducted at two sites of #1 Jizhong and #4 Shanchuan on 6 November 2019. There is no construction activity at the #2 and #3 sites during reporting period. Monitoring results are presented in Table A2-4. The results show that air quality in all sites can meet Class II Ambient Air Quality Standard (GB3095-2012).

Table A2-4 Air Quality monitoring results of Datian subproject (Daily average: unit: µg/L) Date Location TSP PM10 Pre-construction baseline monitoring 16-17 June 2019 #1 Jizhong 24 15 #2 Jingkou 26 15 #3 Taoyuan 19 11 #4 Shanchuan 22 14 Monitoring during construction 6-8 November #1 Jizhong 41 28 2019 #2 Jingkou No construction near the site during reporting period #3 Taoyuan No construction near the site during reporting period #4 Shanchuan 48 34 Class II Ambient Air Quality Standard 300 150 (GB3095-2012)

c. Noise

During reporting period, noise level was conducted at two sites of #1 Jizhong and #4 Shanchuan on 6 November 2019. Monitoring results are presented in Table A2-5.

Table A2-5 Noise monitoring results of Datian subproject (Unit: dB) Date Location Day Night Pre-construction baseline monitoring 16-17 June 2019 #1 Jizhong 54 40.3 #2 Jingkou 54.6 39.4 #3 Taoyuan 51.3 44.7 #4 Shanchuan 52.3 36.8 Monitoring during construction 6-8 November #1 Jizhong 50.2 44.5 2019 #2 Jingkou No construction near the site during reporting period #3 Taoyuan No construction near the site during reporting period #4 Shanchuan 50.0 43.9 Environment noise standard for boundary of 70 55 construction site (GB 12523-2011)

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The results show that noise level at boundaries of all construction sites meet with Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011). Moreover, the noise levels at construction sites are similar to baseline noise levels.

C. Wuyishan Subproject

1. External Monitoring Agency

The environmental monitoring for Wuyishan subproject was conducted by Fujian Zhongke Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations for water, air, noise is shown in Table A2-6 and Figure A2-2.

Table A2-6 Monitoring Locations of Wuyishan Subproject Item Location Longitude Latitude Surface water #1 upstream of Wufu Creek 118°12′43.93″E 27°36′43.23″N #2 Down stream of Wuxi Creek 118°12′27.42″E 27°36′33.60″N #3 Wongdun Creek 118°12′02.95″E 27°37′31.70″N #4 Guting Creek 118°13′13.50″E 27°37′55.12″N Air and noise #1 Wongdun village #2 Xingxian village #3 Wuyi village #4 Wufu village #5 Tianwei village #6 Diancun village

Figure A2-2 Map of Monitoring Sites of Wuyishan subproject

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3. Monitoring Frequency

Baseline. Air quality, water quality and noise level baseline monitoring for Wuyishan subproject was conducted 13 March 2019 to 14 March 2019.

Construction phase. During reporting period, air quality and noise level was monitored on 5-6 August and 19-20 September 2019, and water quality was monitored on 19-20 November 2019.

4. Monitoring Results

a. Water Quality

Water quality monitoring results are presented in Table A2-7. The results show that water quality during construction can meet Grade III of Environment Quality Standard for Surface Water (GB3838—2002).

Table A2-7 Water Quality Monitoring Results of Wuyishan subproject (unit: mg/m3 except pH) Date Location Results pH COD SS Petroleum Pre-construction baseline monitoring 13-14 March #1 Upstream of Wufu creek 7.01-7.04 12-14 11-14 <0.01 2019 #2 Down stream of Wufu creek 7.19-7.27 17-20 17-20 <0.01 #3 Wongdun creek 7.07-7.11 14-16 12-14 <0.01 #4 Guting creek 7.01-7.09 11-14 12-13 <0.01 Monitoring during construction 19 November #1 Upstream of Wufu creek 7.15 13 14 <0.01 2019 #2 Down stream of Wufu creek 7.28 16 17 <0.01 Environment Quality Standard for Surface 6-9 <=20 30 <=0.05 Water (GB3838—2002) Grade III

b. Air Quality

Air quality monitoring results are presented in Table A2-8. The results show that air quality during construction can meet Class II Ambient Air Quality Standard (GB3095-2012). The concentration of TSP and PM10 during construction is similar to that of the baseline.

Table A2-8 Air Quality Monitoring Results of Wuyishan subproject (Daily average, unit: µg/m3) Date Location TSP PM10 Pre-construction baseline monitoring 13-14 March 2019 #1 Wongdun village 74-79 40-43 #2 Xingxian village 73-77 38-43 #3 Wuyi village 78-81 41 #4 Wufu village 75-84 37-42 #5 Tianwei village 83-88 49-51 #6 Diancun village 76-82 58-64 Monitoring during construction 5 August 2019 #1 Wongdun village 75 42 #2 Xingxian village 81 50 #3 Wuyi village 85 47 #4 Wufu village 74 38 #5 Tianwei village 85 43 #6 Diancun village 72 56 6 August 2019 #1 Wongdun village 81 42 #2 Xingxian village 82 51 #3 Wuyi village 79 43 52

Date Location TSP PM10 #4 Wufu village 82 39 #5 Tianwei village 80 42 #6 Diancun village 75 58 19 September 2019 #1 Wongdun village 74 44 #2 Xingxian village 82 51 #3 Wuyi village 84 48 #4 Wufu village 73 39 #5 Tianwei village 88 42 #6 Diancun village 79 57 20 November 2019 #1 Wongdun village 80 42 #2 Xingxian village 85 50 #3 Wuyi village 77 43 #4 Wufu village 87 38 #5 Tianwei village 81 40 #6 Diancun village 79 59 Class II Ambient Air Quality Standard (GB3095-2012) 300 150

c. Noise

During reporting period, noise level at construction sites was monitored on 19-20 November 2019. Monitoring results are presented in Table A2-9. The results show that noise level at all construction sites meet Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011). Moreover, the noise levels at construction sites are similar to baseline noise levels.

Table A2-9 Noise monitoring results of Wuyishan subproject (unit: dB(A)) Date Location Daytime Night time Pre-construction baseline monitoring 13-14 March 2019 #1 Wongdun village 53.8 42.8 #2 Xingxian village 51.8 43.3 #3 Wuyi village 53.7 42.1 #4 Wufu village 54.2 43.6 #5 Tianwei village 53.9 44.1 #6 Diancun village 51.3 42.3 Monitoring during construction 19 November 2019 #1 Wongdun village 53.8 43.1 #2 Xingxian village 52.4 42.9 #3 Wuyi village 53.2 41.8 #4 Wufu village 53.4 42.7 #5 Tianwei village 53.1 43.8 #6 Diancun village 52.0 42.2 Environment noise standard for boundary of construction 70 55 site (GB 12523-2011)

D. Yongding Subproject

1. External Monitoring Agency

The environmental monitoring for Yongding subproject was conducted by Fujian Zhongkai Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations for water, air, noise is shown in 53

Table A2-10 and Figure A2-3.

Table A2-10 List of Monitoring Locations of Yongding Subproject Item Location Surface water #1 Oil tea base #2 Oil tea base #3 Vegetable base Air and noise #1 Oil tea base #2 Oil tea base #3 Vegetable base #4 Farmland #5 Wuyin village

Figure A2-3 Monitoring location of Yongding subproject

3. Monitoring Frequency

Baseline monitoring. No baseline monitoring was conducted due to delay of EMC engagement.

Monitoring during construction. Air quality, water quality and noise monitoring for Yongding subproject was conducted on 4-5 November 2019.

4. Monitoring results

a. Water quality

Domestic waste water quality monitoring was conducted at 3 construction bases. Monitoring results is presented in Table A2-11. The monitoring results show that water quality can meet the grade III of Environment Quality Standard of Surface Water.

Table A2-11 Water Quality Monitoring Results of Yongding subproject (Unit: mg/m3 except pH) Location pH CODcr SS Petroleum Monitoring during construction 1# Oil tea base 7.41 4 5 0.01L 2# Oil tea base 6.66 5 8 0.01L 3# Vegetable base 7.27 6 6 0.01L 54

Environment Quality Standard of Surface 6-9 <=20 30 <=0.05 Water (GB3838—2002) Grade III b. Air quality

During reporting period, air sampling was conducted at 5 construction sites. Monitoring results are presented in Table A2-12. Monitoring results show that air quality can meet Class II of Ambient Air Quality Standard (GB3095-2012).

Table A2-12 Air Quality Monitoring Results of Yongding subproject (Daily average, unit: µg/m3) Date Location TSP PM10 Monitoring during construction 4-5 November 2019 #1 Oil tea base 117 40 #2 Oil tea base 173 58 #3 Vegetable base 115 45 #4 Farmland 138 53 #5 Wuyin village 97 37 Class II Ambient Air Quality Standard (GB3095-2012) 300 150

c. Noise

During reporting period, noise level at construction sites was monitored on 4 November 2019. Monitoring results are presented in Table A2-13. The results show that noise level at all construction sites meet Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011).

Table A2-13 Noise monitoring results of Yongding subproject (unit: dB(A)) Date Location Daytime Night time Monitoring during construction 4 November 2019 #1 Oil tea base 38.9 NA #2 Oil tea base 41.3 NA #3 Vegetable base 5308 NA #4 Farmland 43.0 NA #5 Wuyin village 43.6 NA Environment noise standard for boundary of construction 70 55 site (GB 12523-2011)

E. Jiaocheng Subproject

1. External Monitoring Agency

The environmental monitoring for Jiaocheng subproject was conducted by Fujian Zhongke Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations is shown in Figure A2-4.

3. Monitoring Frequency

Baseline. There is no residential area near the Jiaocheng subproject site. Thus no air and noise monitoring is needed. Baseline water quality was monitored for the subproject one month before construction on 20 November 2017.

Monitoring during construction. During construction period from end of 2017 to March 2019, water quality monitoring was conducted semi-annually. 55

Monitoring during operation. All civil work has been completed in March 2019 and the subproject entering operation stage since then. During this reporting period, on 18 September 2019, water quality monitoring was conducted during the first year of subproject operation at two sections of Huotong River.

Figure A2-4 Monitoring location of Jiaocheng subproject

4. Monitoring Results

Monitoring results are presented in Table A2-14. Monitoring results showed that the water quality at monitoring section of Huotong River can meet the Grade III of Environment Quality Standard of Surface Water (GB3838-2002). The water quality during construction and during operation has no big difference comparing with the baseline water quality. Implementation of the subproject has no impact on the water quality.

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Table A2-14 Water Quality Monitoring Results of Jiaocheng subproject (unit: mg/m3 except pH) Monitoring Location/ Monitoring results(mg/L, except pH date/time River section pH COD SS Petroleum Pre-construction baseline monitoring Upstream of Huotong River 6.82 14 15 0.02 20 Nov 2017 Downstream of Huotong River 7.02 16 17 0.02 Water monitoring during construction Upstream of Huotong River 6.80 15 16 0.02 21 June 2018 Downstream of Huotong River 7.00 16 16 0.02 Upstream of Huotong River 6.76 15 16 0.02 23 Nov 2018 Downstream of Huotong River 6.98 18 18 0.03 Water monitoring during operation 18 September Upstream of Huotong River 6.18 14 13 0.03 2019 Downstream of Huotong River 6.95 16 15 0.04 Upstream of Huotong River 6.92 17 16 0.03 7 Jan 2020 Downstream of Huotong River 6.85 15 14 0.02 Environment Quality Standard of Surface 6-9 <=20 30 <=0.05 Water (GB3838—2002) Grade III

F. Fu’an Subproject

1. External Monitoring Agency

The environmental monitoring for Fu’an subproject was conducted by Fujian Zhongke Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations is shown in Figure A2-5.

Xianling village Wangjia village

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Xikou village Sampling photos Figure A2-5 Monitoring locations of Fu’an subproject

3. Monitoring Frequency

Baseline monitoring. Air quality, noise level and water quality was monitored for the Fu’an Subproject on 25 November 2019.

Monitoring during construction. Not yet due.

4. Monitoring Results

a. Water quality

Water quality monitoring results are presented in Table A2-15. The results show that water quality during construction can meet Grade III of Environment Quality Standard for Surface Water (GB3838—2002).

Table A2-15 Water Quality monitoring results of Fu’an subproject (Unit: mg/L) Date Locations pH COD SS Petroleum Pre-construction baseline monitoring 25 November 2019 #1 Xianling village 7.05 36 13 0.02 #2 Xikou village 6.88 9 10 0.02 #3 Wangjia village 7.12 13 16 0.03 Monitoring during construction Not construction initiated during reporting period Environment Quality Standard for Surface 6-9 <=20 30 <=0.05 Water (GB3838—2002) Grade III

b. Air quality

During reporting period, baseline air quality was conducted at three environment sensitive locations near proposed construction sites on 25 November 2019. Air quality monitoring results are presented in Table A2-16. The results show that baseline air quality can meet Class II Ambient Air Quality Standard (GB3095-2012).

Table A2-16 Air Quality Monitoring Results of Fu’an subproject (Daily average, unit: µg/m3) Date Location TSP PM10 Pre-construction baseline monitoring 25 November 2019 #1 Xianling village 79 47 #2 Xikou village 82 61 #3 Wangjia village 73 56 Monitoring during construction Not yet due #1 Xianling village #2 Xikou village #3 Wangjia village Class II Ambient Air Quality Standard (GB3095-2012) 300 150

c. Noise

During reporting period, baseline noise level was monitored on 25 November 2019. Monitoring results are presented in Table A2-17. The results show that noise level at all sites meet Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011).

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Table A2-17 Noise monitoring results of Fu’an subproject (Unit: dB) Date Location Day Night Pre-construction baseline monitoring 25 November #1 Xianling village 52.6 42.1 2019 #2 Xikou village 51.8 42.5 #3 Wangjia village 53.1 41.3 Monitoring during construction No construction initiated during reporting period Environment noise standard for boundary of construction 70 55 site (GB 12523-2011)

G. Pinghe Subproject

1. External Monitoring Agency

The environmental monitoring for Pinghe subproject was conducted by Fujian Keyi Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations is shown in Table A2-18 and Figure A2-6.

Figure A2-6 Monitoring locations of Pinghe Subproject

Table A2-18 List of Monitoring Locations of Pinghe Subproject 59

Item Location Latitude Longitude Water W1 24.278714ºN 117.328856ºE W2 24.281321ºN 117.343651ºE Air and noise #1 Lianguang village #2 Dongdeng village #3 Guizhu village #4 Xinnan village #5 Sankeng village #6 Meishan village

3. Monitoring Frequency

Baseline monitoring. Air quality, noise level and water quality was monitored for the Pinghe Subproject on 16 November 2019.

Monitoring during construction. Not yet due.

4. Monitoring Results

a. Water quality

Water quality monitoring results are presented in Table A2-19. The results show that baseline water quality before construction is high in petroleum. The pH value is lower than 6.0 which mean the water quality is acidic. Baseline water quality cannot meet Grade III of Environment Quality Standard for Surface Water (GB3838—2002).

Table A2-19 Water Quality monitoring results of Pinghe subproject (Unit: mg/L) Date Locations pH COD SS Petroleum Pre-construction baseline monitoring 16 November #1 W1 5.7 2.2 13 0.31 2019 #2 W2 5.82 1.7 28 0.02 Monitoring during construction Not construction initiated during reporting period Environment Quality Standard for 6-9 <=20 30 <=0.05 Surface Water (GB3838—2002) Grade III

b. Air quality

During reporting period, baseline air quality was conducted at three environment sensitive locations near proposed construction sites on 16-17 November 2019. Air quality monitoring results are presented in Table A2-20. The results show that baseline air quality can meet Class II Ambient Air Quality Standard (GB3095-2012).

Table A2-20 Air Quality Monitoring Results of Pinghe subproject (Daily average, unit: µg/m3) Date Location TSP PM10 Pre-construction baseline monitoring 16-17 November #1 Lianguang village 86 71-72 2019 #2 Dongdeng village 84-85 72-74 #3 Guizhu village 84-87 73-74 #4 Xinnan village 85 72-72 #5 Sankeng village 84-86 71-73 #6 Meishan village 84-86 71-73 Monitoring during construction Not yet due #1 Xianling village #2 Xikou village #3 Wangjia village 60

Date Location TSP PM10 Class II Ambient Air Quality Standard (GB3095-2012) 300 150

c. Noise

During reporting period, baseline noise level was monitored on 16 November 2019. Monitoring results are presented in Table A2-21. The results show that noise level at all sites meet Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011).

Table A2-21 Noise monitoring results of Pinghe subproject (Unit: dB) Date Location Day Night Pre-construction baseline monitoring 16 November #1 Lianguang village 57 2019 #2 Dongdeng village 57 #3 Zhuizhu village 57 #4 Xinnan village 58 #5 Sankeng village 58 #6 Meishan village 53 Monitoring during construction No construction initiated during reporting period Environment noise standard for boundary of construction 70 55 site (GB 12523-2011)

H. Ninghua Subproject

1. External Monitoring Agency

The environmental monitoring for Ninghua subproject was conducted by Sanming Houde Test Technology Co., Ltd which is a certificated environment monitoring company. Certification of the EMC is attached in Appendix 3.

2. Monitoring Location

The distribution of the monitoring locations is shown in Table A2-22.

Table A2-22 List of Monitoring Locations of Ninghua Subproject Item Location Latitude Longitude Water East creek 26º20’11.39”N 116º43’30.32”E West creek 26º15’35.84”N 116º36’12.25”E Air and noise #1 Wuceng village 26º17’47.48”N 116º35’19.42”E #2 Lianshe village 26º20’09.85”N 116º43’39.07”E

3. Monitoring Frequency

Baseline monitoring. Air quality, noise level and water quality was monitored for the Ninghua Subproject on 24 July 2019.

Monitoring during construction. Not conducted.

4. Monitoring Results

a. Water quality

Water quality monitoring results are presented in Table A2-23. The results show that baseline water quality before construction is high SS. Baseline water quality cannot meet Grade III of Environment Quality Standard for Surface Water (GB3838—2002). 61

Table A2-23 Water Quality monitoring results of Ninghua subproject (Unit: mg/L) Date Locations pH COD SS Petroleum Pre-construction baseline monitoring 24 July 2019 #1 East creek 7.19 7.94 38 0.04 #2 West creek 7.02 8.58 33 0.04 Monitoring during construction Not construction initiated during reporting period Environment Quality Standard for 6-9 <=20 30 <=0.05 Surface Water (GB3838—2002) Grade III

b. Air quality

During reporting period, baseline air quality was conducted at two environment sensitive locations near proposed construction sites. Air quality monitoring results are presented in Table A2-24. The results show that baseline air quality is very good and can meet Class II Ambient Air Quality Standard (GB3095-2012).

Table A2-24 Air Quality Monitoring Results of Ninghua subproject (Daily average, unit: µg/m3) Date Location TSP PM10 Pre-construction baseline monitoring 24 July 2019 #1 Wuceng village 23 17 #2 Lianshe village 28 22 Monitoring during construction Not yet due #1 Wuceng village #2 Lianshe village Class II Ambient Air Quality Standard (GB3095-2012) 300 150

c. Noise

During reporting period, baseline noise level was monitored on 24 July 2019. Monitoring results are presented in Table A2-25. The results show that noise level at all sites meet Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011).

Table A2-25 Noise monitoring results of Ninghua subproject (Unit: dB) Date Location Day Night Pre-construction baseline monitoring 24 July 2019 #1 Wuceng village 42 39 #2 Lianshe village 52 50 Monitoring during construction No construction initiated during reporting period Environment noise standard for boundary of construction 70 55 site (GB 12523-2011)

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APPENDIX 3. PHOTOGRAPHS

A. Sampling photos

Air quality monitoring at Jizhong village, 6-8 Air quality monitoring Shanchuan village, 6-8 November 20119 November 20119

Noise monitoring at Jizhong village, 6-8 Noise monitoring at Shanchuan village, 6-8 November 20119 November 20119 Sample photos of Datian subproject, 6-8 November 2019

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G1 Wongdun village G6 Xiwei village

W2 Wongdun Creek N2 Xingxian village

N6 Xiwei Village G2 Xingxian Village

Sample photos of Wuyishan subproject, 19-20 November 2019

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Sampling photos of Pinghe Subproject

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B. Scanned EMC certifications

Certification of Datian Subproject EMC - Fujian Certification of Yongding Subproject EMC - Sanming Houde Environmental Test Technology Fujian Zhongkai Environmental Test Co. Ltd Technology Co. Ltd

Certification of EMC for Jiaocheng, Wuyishan and Fu’an subprojects - Fujian Zhongke Environmental Test Technology Co. Ltd

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Cover page of external monitoring reports

C. Scanned civil work contract - environment clauses incorporated

Sample civil work contract with environment clauses incorporated

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D. Photos of training workshop and list of participants

Environmental, Social and Financial Training Workshop Fuzhou, 7 November 2019

List of participants of comprehensive training on project implementation including environment safeguard training conducted in Fuzhou, Fujian Province on 7 November 2019

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List of participants of comprehensive training on project implementation including environment safeguard training conducted in Fuzhou, Fujian Province, 7 November 2019

E. Photos of Wuyishan construction site inspection

Project information publicized at construction site, Project information board at construction site, Wuyishan subproject, December 2019 Wuyishan subproject, December 2019

ADB, PPMO, PIU, LIEC inspect project site in Drainage and irrigation, Wuyishan subproject, Wuyishan, 4 December 2019 4 December 2019

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Embankment site, Wuyishan subproject, December Road improved, Wuyishan subproject, 2019 December 2019

Information boards at township street, Wuyishan Flow chart of GRM, Wuyishan subproject

Notice board of construction workers' rights protection at construction site, Wuyishan subproject

GRM entry points, main environment mitigation measures, Wuyishan subproject, December 2019

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Information boards: project description, contact of management staff, safety construction regulation, fire prevention regulation, civilized construction regulation, Wuyishan subproject, December 2019

F. Photos of Pinghe subproject construction sites – Internal monitoring

Tractor road construction, Pinghe subproject, Tractor road construction, Pinghe subproject December 2019 December 2019

Information boards: project description, safety construction regulation, fire prevention regulation, environment protection board, Pinghe subproject, December 2019

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GRM entry point publicized at Dongkeng village committee, Pinghe subproject, December 2019

GRM entry point publicized at Dongkeng village committee, Pinghe subproject, December 2019

Consultation with village representatives, Pinghe Warning sign – No smoking during tractor road subproject, December 2019 construction at forest area, Pinghe subproject

Safety training before construction, Pinghe subproject, December 2019

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Fencing of stockyard, sprinkling water for dust suppression, Pinghe subproject, December 2019

G. Photos of GRM information disclosure of Datian Subproject

GRM entry point publicized at Jizhong village, GRM entry point publicized at construction site of Datian subproject Datian subproject

H. Photos of new subproject selection in Shouning County

Training to the PIU on criteria of new subproject Consultants consultation with local farmers, selection, Shouning County, 4 November 2019 Shouning County, 4 November 2019

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New subproject selection – tractor road improvement, Shouning County, November 2019

New subproject selection, abandoned land recreation, Shouning County, November 2019

New subproject selection, roads and irrigation for tea garden, Shouning County, November 2019

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I. Photos of new subproject selection in Pucheng County

Training to the Pucheng PIU on new subproject selection, Pucheng County, 5 December 2019

ADB review mission, inspect new subproject site – land levelling, Pucheng County, December 2019

Inspect new subproject selection, irrigation system improvement, Pucheng County, November 2019

New subproject proposed, drainage improvement, Pucheng County, November 2019

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New subproject proposed, field road improvement, Pucheng County, November 2019

New subproject proposed, ecological embankment, Pucheng County, November 2019

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