53059-001: Shandong West Jining Water Supply and Drainage

Initial Environmental Examination (Draft)

July 2021

People’s Republic of China: Shandong West Jining Water Supply and Drainage Integration Program

Prepared by Jiaxiang County Government for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 24 June 2021) Currency unit – yuan (CNY) CNY1.00 = $0.1545 or €0.1295 $1.00 = CNY 6.4743 or €0.8385 €1.00 = CNY 7.7213 or $1.1926

ABBREVIATIONS

ADB - Asian Development Bank LIEC - loan implementation environmental BOD5 - 5-day biochemical oxygen demand consultant CNY - Chinese yuan MEE - Ministry of Ecology and Environment COD - chemical oxygen demand NDRC - National Development and Reform COVID-19 - coronavirus disease Commission CSC - construction supervision company NPS - non-point source DI - design institute O&M - operation and maintenance EEB - ecology and environment bureau PBL - Policy based loan EHS - environment, health, and safety PM - particulate matter EIA - environmental impact assessment PMO - project management office EMA - environmental monitoring agency PPE - personal protective equipment EMP - environmental management plan PRC - People’s Republic of China FSR - feasibility study report SDP - sector development plan FYP - five-year plan SPG - Shandong Provincial Government GDP - gross domestic product SPS - Safeguard Policy Statement GHG - greenhouse gas TEIA - tabular environmental impact assessment GRM - grievance redress mechanism TRTA - transaction technical assistance IEE - initial environmental examination TSP - total suspended particulate IWMP - Integrated water management WHO - World Health Organization strategic plan LAeq - equivalent continuous A-weighted WBG - World Bank Group sound pressure level JCG - Jiaxiang County Government WRB - Water Resources Bureau JMG - Jining Municipal Government WSP - water supply plant JSDP - Shandong West Jining Water Supply and

WEIGHTS AND MEASURES oC - degree centigrade m3 - cubic meter dB - decibel m3/a - cubic meter per annum kg/d - kilogram per day m3/d - cubic meter per day km - kilometer mg/l - milligram per liter km2 - square kilometer mg/m3 - milligram per cubic meter kW - kilowatt t - metric ton m - meter t/a - ton per annum mu - 1/15 hectare t/d - ton per day m2 - square meter time/h - time per hour

NOTE

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

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

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

Table of Contents EXECUTIVE SUMMARY 1 A. Introduction 1 B. Program Description 1 C. Baseline Environment 3 D. Project Benefits 4 E. Anticipated Impacts and Mitigation Measures 4 F. Public Consultation and Grievance Redress Mechanism 5 G. Environment Management Plan 5 H. Policy Loan Impacts 5 I. Risks and Key Assurances 6 I. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 4 A. ADB Safeguard Policy Statement 4 B. PRC Legislative Framework 4 C. PRC Environmental Impact Assessment Framework and Procedures 6 D. International Agreements 8 E. Assessment Standards for Proposed Project Components 8 II. DESCRIPTION OF THE PROGRAM 18 A. Rationale 18 B. Program Description 20 C. Design of Infrastructure Components 23 1. Component 1: Water Supply 23 2. Component 2: Wastewater Collection and Treatment 37 D. Associated and Existing facilities 43 III. DESCRIPTION OF THE ENVIRONMENT 47 A. Physical Setting 47 B. Ecological Resources 48 C. Physical Cultural Resources 52 D. Social and Economic Conditions 52 E. Environmental Quality 53 IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 61 A. Project Area of Influence and Sensitive Receptors 61 B. Pre-Construction Phase 62 C. Construction Phase 63 D. Operation Phase 72 E. Indirect, Induced and Cumulative Impacts 75 F. Climate Change 76 V. ANALYSIS OF ALTERNATIVES 78 A. No Project Alternative 78 B. Alternative 78 VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 83 A. Legislative Framework for Public Consultation and Information Disclosure 83 B. Information Disclosure 83 C. Consultation 85 D. Future Information Disclosure and Public Consultation Program 87 VII. GRIEVANCE REDRESS MECHANISM 88 VIII. ENVIRONMENTAL MANAGEMENT PLAN 88 IX. CONCLUSIONS 89 ATTACHMENT 1: ENVIRONMENTAL MANAGEMENT PLAN 90 A. Objectives 90 B. Institutional Responsibilities 90 C. Summary of Potential Impact and Mitigation Measures 92 D. Environmental Monitoring, Inspection and Reporting 102 E. Institutional Strengthening and Training 107 F. Grievance Redress Mechanism 108 G. Consultation, Participation, and Information Disclosure 111 H. Cost Estimates 112 I. Mechanisms for Feedback and Adjustment 113 ATTACHMENT 2: COVID-19 HEALTH AND SAFETY PLAN: APPLICATION OF INTERNATIONAL GOOD PRACTICE OHS AT THE WORKPLACE 114 ATTACHMENT 3: SAFEGUARD ASSESSMENT MATRIX 118 ATTACHMENT 4: ENVIRONMENTAL DUE DILIGENCE FOR THE COMPLETED WATER SUPPLY PIPES UNDER SUBPROJECT 2 121

EXECUTIVE SUMMARY

A. Introduction

1. This initial environmental examination (IEE), including an environmental management plan (EMP), is prepared for the proposed Shandong West Jining Water Supply and Drainage Integration Program (JSDP or the Program) in Jiaxiang County, Shandong Province of the People’s Republic of China (PRC).

2. The IEE has been prepared in accordance with the requirements of the Asian Development Bank’s (ADB) Safeguard Policy Statement (2009) (SPS) (under which the program is classified as Category B for environment safeguards) and environmental impact assessment (EIA) procedures of the PRC, on the basis of domestic tabular environmental impact assessment (TEIA) report, a domestic feasibility study report (FSR), and site investigations and stakeholder discussions.

B. Program Description

3. The JSDP will have four outputs:

4. Output 1: Water sector strategies and operations strengthened. This output will be supported by the multitranche, stand-alone PBL. Tranche 1 has 4 policy actions, commenced in February 2020, and will be completed in October 2021; tranche 2, implementation from November 2021 to December 2022, has 11 policy actions; and tranche 3, implementation from January 2023 to December 2024, has 7 policy actions. All policy actions will reinforce outputs 2 and 3 by bridging the policy and institutional gaps in Jiaxiang County’s water sector and mitigating the changing climate risk. The policy actions extend and capitalize on best practices from relevant PRC and regional ADB projects and strategic knowledge partnerships and seek to scale-up sustainable reforms beyond the county to institutionalize best practice, wider sector coordination, and leadership. This first sector development plan (SDP) at the county level has a focus on policy actions that county governments have the autonomy to implement, while at the same time acknowledging that Jiaxiang County could take a leadership role in fostering coordination and collaboration in water sector development across jurisdictional boundaries through a combination of immediate tangible actions and impact and laying the foundation for longer-term cross- jurisdictional outcomes. Policy actions under the three tranches of the PBL are grouped into five reform areas.

5. Reform area 1: Integration and cross-agency coordination in water sector planning, management, and service delivery strengthened. Under this reform area, an IWMP has been developed that establishes the framework for countywide integration and cross-agency coordination of water sector planning, management, and service delivery. There are eight policy actions across three tranches. Tranche 1 is focused on implementing the results of the comprehensive climate risk and adaptation assessment and preparing an IWMP and sponge city policy. 1 Water management cooperation and coordination will be fostered through the establishment of the Integrated Water Management Steering Committee comprising four working groups which will drive cross-jurisdictional cooperation across municipality and provincial governments in the detailed development of relevant key management policies and plans over tranches 2 and 3. In Tranche 2, JCG will establish an IWMP finance unit and the Integrated Water

1 ADB. 2020. Jiaxiang Smart Water Sector Development Program Climate Risk and Adaptation Assessment. Consultant’s report. Manila (TA 9732-PRC). 2

Management Fund, and prepare a strategy to secure alternative financing, including private sector partnerships, for ongoing innovation and IWMP implementation in subsequent years.

6. Reform area 2: Provision of integrated urban and rural water supply and sewerage services expanded and improved. There are three policy actions in this reform area to be implemented in tranche 2. These policy actions are directed at issuing a new policy for, and the establishment of, a single countywide water utility replacing the multiple inefficient utilities currently operating and offering combined water supply and sewerage services. The water utility would develop good practice aligned with ADB guidelines. 2 This will overcome the current disparity in the quality of urban and rural water services by ensuring a consolidated rate and financial base, technical expertise, equipment, and other resources in ensuring a countywide baseline standard of services. In this reform area, countywide standards will be set for a range of IWMP functions, including (i) urban and rural water supply and sewerage services coverage; (ii) quality of water supplied and corresponding fit-for-purpose uses; (iii) reliability of services; (iv) water service charges for urban, rural, domestic, and industrial users; (v) poverty support; (vi) sustainable financing; and (vii) wastewater effluent quality.

7. Reform area 3: Countywide governance of waterway environment and flood management, urban drainage management, and sponge city development strengthened. There are six policy actions in this reform area, three to be implemented during tranche 2 and a further three in tranche 3. These actions will foster contemporary management of waterways to increase their multifunctionality and to enhance their ecological values and ecosystem services. Tranche 2 will require three of the interagency working groups to develop management and implementation plans in their respective portfolios, namely: the Jiaxiang integrated flood management plan, 2021–2035; Jiaxiang sponge city special plan, 2021–2035; and the Jiaxiang agricultural water management plan, 2021–2035. JCG oversight of the early implementation of these plans will promote greater water use efficiency and reduction in environmental pollution. The three policy actions in tranche 3 extend this work and ensure practical implementation of the corresponding plans and regulatory frameworks so that the benefits are sustained beyond the project period.

8. Reform area 4: Cross-jurisdictional cooperation for sustainable surface water and groundwater resources management strengthened. There are four policy actions in this reform area, two in tranche 2, and two in tranche 3. These policy actions will ensure Jiaxiang County will have access to diverse water sources including groundwater, surface water, recycled wastewater, and stormwater. This will be strengthened by an evidence-based policy on regulating sustainable groundwater abstraction rates. One policy action is focused on harnessing advances in digital technology to pilot an internet-of-things platform, including associated sensors and real- time control infrastructure to optimize fit-for-purpose utilization of the diverse water sources, integrated flood management, and waterway quality management. These are innovative tools to foster cross-jurisdictional collaboration in decision-making, co-investment, and cooperation in regional water resources management.

9. Reform area 5: Mainstreaming of county-level integrated water management initiated. This reform area has one policy action to be implemented in tranche 3. The policy action is directed at ensuring that lessons learned during the implementation of integrated water management are shared across different levels of government with the aim of extending the adoption of county-level integrated water management across Shandong Province and demonstrating that it is an effective means of local operationalization of PRC policies and

2 ADB. 2021. Guidance Note on State-Owned Enterprise Reform in Sovereign Projects and Programs. Manila.

3 strategies for integrated water management, water environment protection, and rural vitalization. The focus of the policy action is the dissemination of knowledge, particularly (i) IWMP and associated governance and intergovernmental cooperative platform, (ii) water infrastructure planning to strengthen climate resilience in Jiaxiang County, and (iii) strategic water infrastructure investments and their accompanying policy reform opportunities that are specific to the local context.

10. Output 2: Sustainable water supply with diverse water sources and smart technology established. This output will fully integrate water supply and sewerage services delivery for Jiaxiang County by (i) increasing the capacity of five existing groundwater treatment plants by 57,200 m3 per day; (ii) constructing 46 hectares of wetlands, a 6.6 million m3 reservoir, and a 60,000 m3 treatment plant for surface water; (iii) constructing 32.9 kilometers (km) of network pipeline, 187.5 km of distribution pipelines, and 4,800 km of village pipes; (iv) implementing a smart information system using metering and data algorithm for improved planning and monitoring of water availability, surface and ground water diversions and abstraction, treatment, and distribution for urban and rural areas; and (v) implementing Supervisory Control and Data Acquisition systems in the operation of the water treatment plants. While the PBL will deliver a blueprint for future expansion of digital technology coverage, output 2 will entail the installation of a pilot scale internet-of-things platform for integrated water services and resource management, including flood management, water quality improvement in waterways, optimization of water sources selection for the range of urban and rural domestic uses, industrial and agricultural uses, and water environment ecological enhancement. The pilot scale implementation will be evaluated for its technical adaptability for the upscaling practices in subsequent years.

11. Output 3: Wastewater services expanded and improved with smart technology. This output will complement the policy actions and the infrastructure investments under outputs 1 and 2 to improve public health and environmental quality of waterways in Jiaxiang County by (i) expanding the coverage of sewerage services throughout the county by constructing a 20,000 m3 wastewater pump station and 44.1 km of wastewater network pipes; (ii) constructing or increasing capacity of 11 wastewater treatment plants by 9,500 m3 per day in 11 towns, and 41 wastewater treatment plants of 2,500 m3 per day capacity in 45 villages; and installing 323.6 km of pipeline; (iii) dredging, greening, and rehabilitating 7.6 km of river and upgrading antiquated combined sewer overflow pipelines to separate 9 km of sewer and 11 km of drainage pipelines in prioritized urban areas; and (iv) implementing Supervisory Control and Data Acquisition systems in the operation of the wastewater treatment plants. Improving countywide wastewater treatment services will be a significant result, increasing the spatial coverage of the sewer network and preventing environmental pollution of the waterways and groundwater in Jiaxiang County. Improved treatment standards across the county will also enable greater use of the treated effluent and thus reduce and eliminate discharge to waterways.

12. Output 4: Institutional and program management capacity enhanced. This output will implement a comprehensive program of institutional capacity building and skills development in integrated water management of relevant stakeholders in JCG that will be extended to Shandong Provincial Government (SPG) and Jining Municipal Government (JMG).

C. Baseline Environment

13. Jiaxiang County is located in the west of Jining City, Shandong Province of PRC. It is 16 km wide from east to west and 47.5 km long from north to south, with a total area of 838.56 km2.

14. The water storage works will be built in the mining subsidence area of Liangbaosi Town. This area has subsided for more than ten years and is stable. Other physical subprojects will be built in the rural villages or built-up urban area with low ecological value. Monthly air quality data of the Jiaxiang urban area was collected from the local ecology and environment bureau, showing noncompliance of the air quality standard (GB 3095-2021) on PM10 and PM2.5 during heating seasons. Project specific sampling was conducted in November 2020, including surface water quality of the rivers receiving effluent from the wastewater treatment facilities; odor, H2S and NH3 at the sites of the 11 township wastewater treatment stations and the 20,000 m3/d wastewater pump at Jiabei New City; and acoustic environment of the proposed sites of physical subprojects. The monitoring results showed compliance with the relevant PRC and World Bank Group Environment, Health and Safety standards.

15. No cultural heritage or protected natural reserves have been documented in the project area.

D. Project Benefits

16. The project will directly improve the living conditions of a large number of residents, as follows: (i) 13 towns have water sources other than groundwater; nonrevenue water reduced from 26.33% (2020) to less than 17% and reduction in the volume of groundwater extraction for domestic and industrial water use from 30 Mm3/yr to <25 Mm3/yr; (ii) wastewater services expanded and improved with smart technology. 45 villages will have improved or new wastewater management systems (2019 baseline: 0). The number of people in rural townships connected to a reticulated sewerage system with sewage treatment will increase from 13,000 to 137,000 (2021 baseline: 13,000).

E. Anticipated Impacts and Mitigation Measures

17. Construction phase. Key risks are: (i) soil erosion during the construction of water storage works, water supply plant and wastewater treatment facilities and related pipe works; in particular, the construction of water storage works will generate 7.54 million m³ of spoil that will be used for land levelling and rehabilitation of the subsidence area in Liangbaosi Town. (ii) temporary noise disturbance to nearby villagers and residents; (iii) air pollution (mainly fugitive dust); (iv) inappropriate solid waste disposal (construction waste and worker litter and food waste), and (v) occupational and community health and safety. All works will be in modified rural lands with low ecological values or built-up urban areas. These impacts can be effectively mitigated through good construction practices.

18. Operational phase. During operational and maintenance (O&M) stages of the subprojects, potential impacts are associated with noise emissions from the pumping stations for water supply and drainage pumps, sludge and wastewater discharge from the water supply and wastewater treatment plants, solid waste, odor from the waste treatment facilities and sewage pump, and occupational health and safety risks to workers. These risks have been minimized to the extent possible through the designs, including use of low-noise equipment and sealed treatment system, work safety procedures, response measures in the event of machinery damage or leakage, and routine health checks for workers. The sludge from the drinking water and wastewater treatment plants will be shipped to Jiaxiang Everbright Waste to Energy Plant for disposal.

19. The project designs and EMP include the preparation of O&M procedures for each facility, training to staff (including worker health and safety), and emergency response procedures in the

5 event of facility failure (e.g., quick response in the event of a small rural power failure, to ensure facilities continue operating effectively). Air, noise and wastewater quality monitoring programs have been designed.

20. Coronavirus disease outbreak (COVID-19). The outbreak and subsequent global spread of COVID-19 since December 2019 poses new risks and management implications for most regions and projects. For the current project, the extent of COVID-19 in Shandong Province and the project area was reviewed and requirements for a COVID-19 health and safety plan are included in the EMP. Measures include the screening of all project personal prior to admission to project sites and on-site measures for sanitation, emergency response, and the provision of personal protective equipment.

F. Public Consultation and Grievance Redress Mechanism

21. Information disclosure of project information and related environmental issues was conducted twice on the website of Jining City News in November 2020 and April 2021 respectively. The first time was to introduce the project and contacts of relevant parties. The second time was to when the draft IEE and domestic EIA were completed. All the information disclosed on the website was in Chinese language. A questionnaire survey to 606 households in project villages and towns in September 2020. Following the extensive questionnaire in the project area, total of 20 consultation workshops were organized in September 2020. Feedback from consulted residents expressed supportive attitude to the project. Measures to minimize and mitigate these risks have been incorporated in the project environment management plan (EMP; see below).

22. A project grievance redress mechanism (GRM) has been designed and will be established to receive and facilitate the resolution of complaints during the construction and operation phases. The GRM will include the procedures for receiving grievances, recording/documenting key information, and evaluating and responding to the complainants in a reasonable timeframe. Any concerns raised through the GRM will be addressed quickly and transparently, and without retribution to the affected persons.

G. Environment Management Plan

23. An EMP (Attachment 1) has been developed to ensure: (i) implementation of identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environmental impacts; (ii) implementation of monitoring and reporting against the performance indicators; and (iii) compliance with the PRC’s relevant environmental laws, standards and regulations and the ADB’s SPS 2009. The EMP includes an environmental monitoring plan to monitor the environmental impacts of the project and assess the effectiveness of mitigation measures, and a capacity building and training program focused on health, safety, and environment. Organizational responsibilities and budgets are clearly identified for implementation, monitoring, and reporting.

H. Policy Loan Impacts

24. The policy loan actions under output 1 will support promotion of integrated water resources management in Jiaxiang, which will reduce abstraction of groundwater and improve water services for Jiaxiang residents. A policy loan impact assessment matrix is presented in Attachment 3.

I. Risks and Key Assurances

25. The JCG has limited experience in the implementation of ADB-funded loan projects and knowledge of ADB safeguard procedures and requirements. This may result in the limited implementation of the project EMP and inadequate operation of the project facilities. These risks will be minimized as follows: (i) appointment of a full-time environment officer in the Project Management Office (PMO) and one officer respectively in each of the PIUs; (ii) the inclusion of a loan implementation environmental consultant (intermittent inputs) in the loan consulting services; (iii) clear roles and responsibilities of all relevant agencies for EMP implementation, including contractors and construction supervision companies; (iv) capacity building for EMP implementation; and (v) the recruitment of an environmental monitoring agency to implement the environmental monitoring described in the EMP. Environmental assurances have been developed and agreed with the executing agency and are included in the loan and project agreements.

I. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

26. This IEE has been prepared following both the PRC’s national and local environmental legal and institutional framework and environmental assessment requirements, and in compliance with environmental safeguards of ADB.

A. ADB Safeguard Policy Statement

27. The ADB Safeguard Policy Statement (SPS, 2009) establishes an environmental review process to ensure that projects undertaken as part of programs funded through ADB loans are environmentally sound are designed to operate in line with applicable regulatory requirements and are not likely to cause significant environment, health, social, or safety hazards. Based on the SPS, the project is classified as category “B” for environment safeguards, and an IEE is required. The categorization of “B” is defined by the SPS as: “proposed project’s potential environmental impacts are less adverse and fewer in number than those of category A projects; impacts are site-specific, few if any of them are irreversible, and impacts can be readily addressed through mitigation measures”.

28. During the design, construction, and operation phases of a project, the SPS also requires the borrower to follow environmental standards consistent with “good international industry practice,” as reflected in internationally recognized standards such as the World Bank Group’s Environment, Health and Safety (EHS) Guidelines. 3 The guidelines provide guidance and standards for ambient air quality, air emissions, wastewater, and other variables, and performance indicators and prevention approaches. When host country regulations differ from these levels and measures, the borrower is to achieve whichever is more stringent. If less stringent levels or measures are appropriate given specific project circumstances, the borrower is required to justify any proposed alternatives.

B. PRC Legislative Framework

29. The environmental protection and management system in the PRC consist of a well- defined hierarchy of regulatory, administrative and technical institutions. At the top level, the People’s Congress of the PRC has the authority to pass and revise national environmental laws; the Ministry of Ecology and Environment (MEE, former Ministry of Environmental Protection) under the State Council promulgates national environmental regulations; and the MEE either separately or jointly with the Administration of Quality Supervision, Inspection and Quarantine issues national environmental standards. Provincial and local governments can also issue provincial and local environmental regulations and guidelines in accordance with the national ones. In addition, national and local five-year environmental protection plans form an important part of the legal framework. 30. The primary national laws and regulations that governed the domestic EIA (DEIA) of the proposed project are in Table I-1.

Table I-1: Applicable PRC Environmental Laws and Administrative Regulations No. Laws/Regulations Year Issued/Updated Laws 1 Environmental Protection Law 2015 2 Water Pollution Prevention and Control Law 2017

3 These guidelines can be found at http://www.ifc.org/ehsguidelines.

No. Laws/Regulations Year Issued/Updated 3 Air Pollution Prevention and Control Law 2018 4 Solid Waste Pollution Prevention and Control Law 2016 5 Noise Pollution Prevention and Control Law 2018 6 Forest Law 2009 7 Water and Soil Conservation Law 2010 8 Water Law 2016 9 Land Administration Law 2019 10 Cleaner Production Promotion Law 2012 11 Environmental Impact Assessment Law 2018 12 Urban and Rural Planning Law 2019 13 Cultural Relics Protection Law 2017 14 Wildlife Protection Law 2018 National Administrative Regulations 1 Regulation on Prevention and Control of Pollution in Protected Areas of 2010 Drinking Water Sources 2 Regulation on Urban Drainage and Sewage Treatment 2013 3 Measures for Management of Soil Environment of Agricultural Land (trail) 2017 4 Regulation on Environmental Protection Management of Construction Project 2017 5 Management Measures for Environmental Protection Acceptance of 2010 Construction Project 6 Post-evaluation of Environmental Impact for Construction Project 2015 7 Post and In-the-event Supervision of Construction Project on Environmental 2015 Protection 8 Provisions on Public Participation in Environmental Impact Assessment 2018 9 Directory of Environmental Impact Assessment Classification for Construction 2017 Project 10 Decision on Partially Revise the Directory of Environmental Impact 2018 Assessment Classification for Construction Project 11 Regulation on Nature Reserves 2017 12 Regulation on Scenic and Historic Areas 2016 13 Regulation on Protection of Wild Plants 2017 14 Regulation on Pollution Prevention for Large-scale Livestock and Poultry 2013 Breeding 15 Interim Measures for the Administration of Aquatic Germplasm Resources 2011 Conservation Zones Shandong Provincial and Jining Municipality Regulations 1 Shandong Provincial Soil Pollution Prevention and Control Regulation 2019 2 Measures for the Implementation of the EIA Law of Shandong Province 2018 3 Shandong Provincial Air Pollution Prevention and Control Regulation 2018 4 Shandong Provincial Environmental Protection Regulation 2018 5 Shandong Provincial Water Pollution Prevention and Control Regulation 2018 6 Shandong Provincial Prevention and Control of Noise Pollution 2018 7 Shandong Provincial Prevention and Control of Solid Waste Pollution 2018 8 Regulation on the Prevention and Control of Water Pollution in the Areas 2018 Along the South-to-North Water Diversion Project of Shandong Province 9 Shandong Provincial Environmental Protection Regulation 2002 10 Jining Municipal Air Pollution Prevention and Control Regulation 2016 Source: ADB TrTA consultants.

31. The implementation of environmental laws and regulations is supported by associated management and technical guidelines (Table I-2).

Table I-2: Applicable Technical Guidelines for Environment No. Technical Guideline Year/Code 1 Technical Guideline on EIA-Outline HJ 2.1-2016 2 Technical Guideline on EIA Regarding Surface Water HJ/T 2.3-2018 3 Technical Guideline on EIA Regarding Atmospheric Environment HJ 2.2-2018 4 Technical Guideline on EIA Regarding Acoustic Environment HJ 2.4-2009 5 Technical Guideline on EIA Regarding Ecological Environment HJ 19-2011 Technical Guidelines on EIA Regarding Groundwater HJ610-2016 6 Technical Specification on Water and Soil Conservation Plan GB 50433-2008 7 Technical Guideline on Environmental Risk Assessment for HJ/T 169-2018 Construction Project 8 Technical Specification for Urban Dust Prevention HJ/T 393-2007 9 Technical Guideline for Construction of Sponge City Jiancheng [2014]275 10 Guideline on Jurisdictional Authorities for Approval of EIAs of 2009 Construction Project 11 Surface Water System Function Zoning of Jining Municipality / 12 Technical Guideline on Control Pollution from Agricultural Solid Waste HJ588-2010 Source: ADB TrTA consultants.

32. The national environmental quality standard system that supports and evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function: pollutant emission/discharge standards and ambient environmental quality standards. The relevant latest standards applicable to the proposed project are summarized in Table I-3.

Table I-3: Applicable PRC Environmental Standards No. Standard Code 1 Ambient Air Quality Standard GB 3095-2012 2 Surface Water Quality Standard GB 3838-2002 3 Ambient Acoustic Quality Standard GB 3096-2008 4 Groundwater Quality Standard GB/T 14848-93 5 Domestic Drinking Water Quality Standard GB 5749-2006 6 Emission Standards of Ambient Noise for Boundary of Site Noise GB 12523-2011 7 Emission Standard for Industrial Enterprises Noise at Boundary GB 12348-2008 8 Urban Area Environmental Vibration GB 10070-88 9 Integrated Wastewater Discharge Standard GB 8978-1996 10 Integrated Air Pollutants Emission Standard GB 16297-1996 11 Emission Standards for Pollutants in Livestock and Poultry Industry GB18596-2001 12 Pollutant Discharge Standard for Urban Sewage Treatment Plant GB 18918-2002 13 Pollutant Discharge Standard for Rural Domestic Sewage Treatment Facilities DB 43_1665- of Hunan Province 2019 Source: ADB TrTA consultants.

C. PRC Environmental Impact Assessment Framework and Procedures

33. EIA administrative framework. The administrative framework for EIA in the PRC consists of national, provincial, and local (city and county) environmental protection authorities. The national authority is the MEE, which promulgates laws, regulations, administrative decrees, technical guidelines, and environmental quality and emission standards on EIA and pollution prevention and control. At the provincial level, there are ecology and environmental departments (EEDs), which act as gatekeepers for EIA and pollution prevention and control in the provinces. They are delegated the authority by the MEE to review and approve EIA reports for development planning and construction projects, except for projects with national interests and which cross

7 provincial boundaries. The local (city or county level) environmental protection bureaus (EEB) enforce environmental laws and conduct environmental monitoring within city or county limits. Local EEBs can also be delegated the authority to approve EIA reports by the provincial EEDs. EEDs and EEBs are supported by environmental monitoring stations (EMS), which are subsidiaries of EEDs or EEBs and are qualified entities to carry out environmental monitoring.

34. The former Ministry of Environmental Protection’s (MEP’s) “Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects” (2009) defines which construction project EIAs require former MEP review and approval, and which EIAs are delegated to the provincial EEDs.

35. The PRC has a qualification and registration system for EIA, and only qualified and registered institutes and individuals are allowed to prepare EIAs. Under MEP Decree 2015-36, as of 1 November 2015 qualified institutes for conducting EIAs for construction projects in the PRC can no longer be a subsidiary of an environmental authority responsible for approving EIAs.

36. EIA legal framework. EIA is governed by the Environmental Impact Assessment Law (2016), covering EIAs for (i) plans (such as new development areas and new industrial parks) and strategic environmental assessments (SEA), and (ii) construction projects. This was followed by the promulgation of two regulations: The Construction Project Environmental Protection Management Regulation (revised 2017) (item 19) and the Planning Environmental Impact Assessment Regulation (2009) (item 16), both of which require early screening and environmental categorization.

37. EIA procedures. EIA procedures have been established in the PRC for over 20 years. In 2008, former MEP issued “Management Guideline on EIA Categories of Construction Projects” (revised 2017). Under MEE decree, Directory for the Management of Construction Project Environmental Impact Assessment Categorization (MEP Decree 2017-44; updated in 2021) (item 21) provides detailed EIA requirements for 50 sectors and 192 subsectors, and classifies EIAs for construction projects into three categories with different reporting requirements based on the “significance” of potential environmental impact due to the project and the environmental sensitivity4 of the project site, as described in the directory: (i) category A: projects with significant adverse environmental impacts, for which a full EIA report is required; (ii) category B: projects with adverse environmental impacts which are of a lesser degree and/or significance than those of Category A, for which a simplified tabular EIA (TEIA) report is required; and (iii) category C: projects unlikely to have adverse environmental impacts, for which an EIA registration form (EIRF) is required. A full EIA report (category A) and a simplified TEIA report (category B) are similar to ADB’s EIA and IEE reports, respectively. The EIRF is similar to an ADB Category C project.

38. EIA follow-up actions. In 2015, the former MEP issued decree Management Measures for Environmental Impact Post Assessment of Construction Projects (MEP Decree 2015-37,). Under this decree, a trial program was implemented on 1 January 2016 requiring follow-up actions 3 to 5 years after commencement of project operation for large infrastructure and industrial projects or projects located in environmentally-sensitive areas. These actions include

4 Environmentally-sensitive areas are defined in the Decree, and include (i) nature reserves and protected areas, scenic areas, world cultural and natural heritage sites, drinking water source protection zones; (ii) basic farmland and grassland, forest parks, geological parks, important wetland, natural woodland, critical habitats for endangered plant and animal species, important aquatic spawning/nursery/wintering/migration grounds, regions suffering from water resource shortage, serious soil erosion areas, desertification protection areas, eutrophic water bodies; and (iii) inhabited areas with major residential, health care, scientific research, and administration functions, cultural heritage protection sites, and protection areas with historical, cultural, scientific, and ethnic values. 8 environmental monitoring and impact assessment to verify the effectiveness of environmental protection measures and to undertake any corrective actions that might be needed. The decree also specifies that the institute that did the original impact assessment for the project cannot undertake environmental impact post-assessment for the same project.

39. EIA guidelines. The MEE has issued a series of technical guidelines for preparing EIAs (Table I-2). These include impact assessment guidelines on general EIA implementation and principles, atmospheric environment and ambient air quality, noise, surface water, groundwater, ecology and regional biodiversity, biodiversity monitoring, quality management on environmental monitoring, and public participation.

40. Requirements for the current project. For this project, the domestic EIA requirements comprise the preparation of one TEIA for the infrastructure investments. The approval agency is Jiaxiang County Branch of Jining EEB for approval. The TEIA is expected to be approved by end of July 2021.

D. International Agreements

41. The PRC is signatory to international agreements relevant to environment protection, including: (i) Ramsar Convention on Wetlands of International Importance Especially as Waterflow Habitat, December 21, 1975, to stem the progressive encroachment on and loss of wetlands now and in the future, recognizing the wetlands’ ecological functions and their economic, cultural, scientific, and recreational values; (ii) Montreal Protocol on Substances that Deplete the Ozone Layer, January 1, 1989, protect the ozone layer by controlling emissions of substances that deplete it; (iii) Conservation on Biological Diversity, December 29, 1993, to develop national strategies for the conservation and sustainable use of biological diversity; (iv) Kyoto Protocol to the United Nations Framework Convention on Climate Change, 23 February 2005. To further reduced greenhouse gas emissions by enhancing the national programs of developed countries aimed at this goal and by establishing percentage reduction targets for the developed countries; (v) United Nations Framework Convention on Climate Change, 21 March 1994, to achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system; (vi) UNESCO Convention Concerning the Protection of the World Cultural and Natural Heritage, 1985. This convention integrates the practice of heritage conservation in the PRC with that being done around the world.

E. Assessment Standards for Proposed Project Components

1. Ambient Environmental Quality Evaluation Standards

a. Ambient Air Quality Standard 42. The PRC ranks air quality into two classes according to its Ambient Air Quality Standard (GB 3095-2012). Class 1 standards apply to special areas such as nature reserves and environmentally sensitive areas, and Class 2 standards apply to all other areas, including urban and industrial areas. The PRC standards for Class 2 areas are applicable to the Project.

43. The World Bank Group adopted the World Health Organization (WHO) standards for its

EHS standards for air quality.5 The WHO set up air quality guideline (AQG) standards for various air quality parameters for the protection of public health. Yet recognizing that progressive actions are needed to achieve these standards and the financial and technological limitations of some countries, cities, or localities, especially in developing countries, the WHO also established interim targets as intermediate milestones towards achieving the AQG. Table I-4 compares the PRC’s GB 3095-2012 Class II standards with the World Bank Group’s EHS standards.

Table I-4: Comparison of the PRC’s GB 3095-2012 and World Bank Group EHS Ambient Air Quality Standards (Unit: μg/m3) GB 3095-2012 World Bank Group EHS No. Item Averaging Period Class 2 Interim Targets AQG 1-year 0.06 n/a n/a 1 SO2 24-hour 0.15 0.050-0.125 0.020 1-hour 0.50 n/a n/a 1-year 0.10 0.030-0.070 0.020 2 PM10 24-hour 0.15 0.075-0.150 0.050 1-year n/a 0.015-0.035 0.010 3 PM2.5 24-hour 0.15 0.0375-0.075 0.025 1-hour 0.35 n/a n/a 1-year 0.04 n/a 0.040 4 NO2 24-hour 0.08 n/a n/a 1-hour 0.20 n/a 0.200 24-hour 4.0 n/a n/a 5 CO 1-hour 10.0 n/a n/a Daily maximum 8-hour average 0.1 n/a n/a 6 O3 1-hour 0.16 n/a n/a AQG = air quality guideline, EHS = Environment, Health and Safety. Source: WHO Air Quality Guidelines (2006) in WBG’s EHS Guidelines (2007), and PRC GB 3095-2012.

3 3 44. Class 2 standards of 24-hour SO2 (0.15 mg/m ) and PM2.5 (0.15 mg/m ) are higher than the upper limit of the World Bank Group’s interim standards (0.125 mg/m3 and 0.075 mg/m3 3 3 respectively); while 24-hour PM10 (0.15 mg/m ) and 1-hour NO2 (0.20 mg/m ) are the same as the upper limit of the World Bank Group’s upper limit of interim standard and guideline standard, respectively. Overall, the PRC standards show a high degree of equivalency to the WHO guidelines or interim target values and are adopted for use in the Project.

b. Surface Water

45. For water quality assessment, the determining standard is PRC’s Environmental Quality Standards for Surface Water (GB 3838-2002). It defines five water quality categories for different environmental functions. Category I is the best suitable for headwaters and National Nature Reserves. Category II is suitable for drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for juvenile fish. Category III is suitable for drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration. There are no applicable World Bank EHS guidelines for water quality in this context, and the PRC standard is adopted for use in this IEE report. The United Nations Environment Programme (UNEP) standards for some of the parameters are listed in Table I-5 for reference.

5 World Health Organization. 2005. WHO air quality guidelines global update 2005. Report on a Working Group meeting, Bonn, Germany, 18-20 October 2005. 10

Table I-5: Surface Water Ambient Quality Standard (unit: mg/L, pH is dimensionless) GB 3838-2002 UNEP standard Category Category Extreme High Integrity Impairment Parameter I II III IV V (Category 1) (Category 4) pH 6 - 9 6 - 9 6 - 9 6 - 9 6 - 9 6.5 - 9.0 <5 90% saturation Dissolved oxygen (DO) [mg/L] ≥6 ≥5 ≥3 ≥2 7.3-10.9 3 or >13.6 or ≥7.5 Permanganate index (IMn) [mg/L] ≤2 ≤4 ≤6 ≤10 ≤15 - - Chemical oxygen demand (COD) ≤15 ≤15 ≤20 ≤30 ≤40 - - [mg/L] 5-day Biochemical oxygen ≤3 ≤3 ≤4 ≤6 ≤10 -- >10 demand (BOD5) [mg/L] Ammonia nitrogen (NH3-N) [mg/L] ≤0.15 ≤0.5 ≤1.0 ≤1.5 ≤2.0 0.015 0.1 Total phosphorus (as TP) [mg/L] ≤0.02 ≤0.1 ≤0.2 ≤0.3 ≤0.4 <0.02 >0.190 Lakes & reservoirs ≤0.01 ≤0.025 ≤0.05 ≤0.1 ≤0.2 <0.01 >0.125 Total nitrogen (lakes, reservoirs, ≤0.2 ≤0.5 ≤1.0 ≤1.5 ≤2.0 <0.5 >2.5 as TN) [mg/L] Copper (Cu) [mg/L] ≤0.01 ≤1.0 ≤1.0 ≤1.0 ≤1.0 0.001 0.0025 Zinc (Zn) [mg/L] ≤0.05 ≤1.0 ≤1.0 ≤2.0 ≤2.0 0.008 0.05 Fluoride (as F-) [mg/L] ≤1.0 ≤1.0 ≤1.0 ≤1.5 ≤1.5 - - Selenium (Se) [mg/L] ≤0.01 ≤0.01 ≤0.01 ≤0.02 ≤0.02 - - Arsenic (As) [mg/L] ≤0.05 ≤0.05 ≤0.05 ≤0.1 ≤0.1 0.01 0.15 ≤ ≤ ≤ ≤ Mercury (Hg) [mg/L] ≤0.0005 0.00005 0.001 0.0005 0.0001 0.001 0.001 ≤ Cadmium (Cd) [mg/L] ≤0.001 ≤0.005 ≤0.005 ≤0.01 0.00008 0.001 0.005 Chromium (Cr, hexavalent) [mg/L] ≤0.01 ≤0.05 ≤0.05 ≤0.05 ≤0.1 0.001 0.04 Lead (Pb) [mg/L] ≤0.01 ≤0.01 ≤0.05 ≤0.05 ≤0.1 0.002 0.005 Cyanide (CN) [mg/L] 0.005 ≤0.05 ≤0.2 ≤0.2 ≤0.2 - - Volatile phenol [mg/L] ≤0.002 ≤0.002 ≤0.005 ≤0.01 ≤0.1 - - Total petroleum hydrocarbon ≤0.05 ≤0.05 ≤0.05 ≤0.5 ≤1.0 - - (TPH) [mg/L] Anionic surfactant [mg/L] ≤0.2 ≤0.2 ≤0.2 ≤0.3 ≤0.3 - - Sulfide [mg/L] ≤0.05 ≤0.1 ≤0.2 ≤0.5 ≤1.0 - - ≤ ≤ ≤ Fecal coliform bacteria [number/L] ≤200 ≤2000 - - 10000 20000 40000 Source: PRC GB3838-2002 and UNEP standard.

c. Groundwater

46. PRC’s Groundwater Water Ambient Quality Standard (GB/T14848-2017) also defines a number of water quality categories for different environmental functions. Category I mainly reflects the natural low background content of groundwater chemical components and is suitable for various purposes. Category II mainly reflects the natural background chemical contents and is suitable for a variety of applications. Category III is based on the human health benchmark value and is mainly suitable for centralized drinking water sources and industrial and agricultural uses. In addition to agricultural and some industrial uses, Category IV groundwater can also be used as drinking water source after appropriate treatment. Category V groundwater cannot be used as drinking water source. The Category III standard is applicable to the project region (Table I-6). There is no equivalent standard recommended in the EHS Guidelines, and the PRC standard is adopted for use in the Project.

Table I-6: Groundwater Quality Standard for Category III (unit: mg/L, pH is dimensionless) No. Item Category III No. Item Category III 1 pH 6.5-8.5 15 Nitrate≤ 20 2 Total Hardness ≤ 450 16 Nitrite≤ 0.02 3 KMnO4 Index≤ 3.0 17 NH4≤ 0.2 4 Sulfate≤ 250 18 Fluoride≤ 0.05 5 Chloride≤ 250 19 Hg≤ 0.001 6 Iron (Fe) 0.3 20 Se≤ 0.01 7 Manganese (Mn) 0.1 21 As≤ 0.05 8 Copper (Cu) 1.0 22 Cd≤ 0.01 9 Zinc (Zn) 1.0 23 Cr6+≤ 0.05 10 Molybdenum (Mo) 0.1 24 Fecal coliform (a/L) ≤ 3.0 11 Cobalt (Co) 0.05 12 Volatile Phenol 0.002 13 Anionic surfactant≤ 0.3 Source: PRC GB/T14848-2017.

d. Acoustic Environment

47. The Ambient Acoustic Environment Standard (GB 3096-2008) categorizes five functional areas based on their tolerance to noise pollution: from Class 0 to Class 4. Class 0 is for areas with convalescent facilities that are the least tolerant of noisy environments and therefore have the most stringent day and night-time noise standards. Class 1 is for areas predominated by residential areas, hospitals and clinics, educational institutions and research centers. Class 2 is for areas with mixed residential and commercial functions. Class 3 is for areas with industrial production and storage and logistics functions. Class 4 is for regions adjacent to traffic noise sources such as major roads and highways and is subdivided into 4a and 4b with the former applicable to road and marine traffic noise and the latter applicable to rail noise. Standards for various functional area categories and are compared with the WBG’s EHS guidelines, as listed in Table I-7. This shows that the World Bank Group has lower noise limits for residential, commercial, and industrial mixed areas but higher noise limits for industrial areas and nighttime noise near trunk roads. For this proposed project, Class 2 standard is the applicable PRC standard for the rural area and residential communities; however, this is less stringent than the EHS standard. Therefore, the EHS standard is applied for the project activities in rural areas as well as for communities in the urban areas.

Table I-7: Environmental Quality Standards for Noise (Equivalent Sound Level: LAeq: dB) World Bank Group Noise Functional GB 3096-2008 EHS6 Area Category Applicable Area Day Night Day Night Areas needing extreme quiet, such as 0 50 40 convalescence areas Area mainly for residence, cultural and 1 55 45 55 45 educational institutions Residential, commercial and industrial mixed 2 60 50 area 3 Industrial area 65 55 70 70 4a Area on both sides of urban road traffic trunk line 70 55 EHS = Environment, Health and Safety. Source: WHO Noise Quality Guidelines (1999) in IFC EHS Guidelines (2007), and PRC GB3096-2008.

6 World Bank Group 2007, ibid. 12

e. Soil and River Sediments

48. In 2018, the MEE released two standards for soil contamination risk management based on usage. The GB 15618-2018 replaced the previous GB15618-1995 that setting threshold to safeguard agroforestry production. The PRC does not have quality standards for sediments in waterways such as rivers, lakes, reservoirs and the sea. However, it is common practice to adopt the Control Standards for Pollutants in Sludge from Agricultural Use (GB 4284-84) to assess sediment quality. The rationale being that the physical nature of river sediment is similar to sludge. Table I-8 presents both GB 15618-2018 (soil) and GB 4284-84 (sludge for agricultural use) standards.

49. The WBG does not have EHS standards for soil and sediment quality. For this EIA, the Contaminated Sites Management Series-Assessment levels for Soil, Sediment and Water7 of Western Australia is applied as a recognized international standard. This guideline lists generic assessment levels adopted by the Department of Environment and Conservation and provides guidance on the application of assessment levels to determine whether a site is potentially contaminated and whether further investigation is required. This guideline contains health investigation level and ecological investigation level as screening assessment levels. If the screening assessment levels are exceeded, further risk assessment is required to determine whether the levels present are likely to pose an actual risk in the site-specific setting. As the GB 15618-2018 set more stringent limit, the GB 15618-2018 is applicable standard of the project.

Table I-8: List of Soil and Sediment Standard Limits Maximum Allowable Concentration (mg/kg dry weight) Western GB 4284-84 (Sludge for Australia GB 15618-2018 (trial)* Agricultural Use) Standard Parameter Soil pH <5.5 5.5-6.5 6.5-7.5 >7.5 <6.5 ≥6.5 (EIL) Paddy 0.3 0.4 0.6 0.8 3 Cadmium (Cd) 5 20 Others 0.3 0.3 0.3 0.6 Paddy 0.5 0.5 0.6 1.0 1 Mercury (Hg) 5 15 Others 1.3 1.8 2.4 3.4 Paddy 30 30 25 20 20 Arsenic (As) 75 75 Others 40 40 30 25 Orchard 150 150 200 200 100 Copper (Cu) 250 500 Others 50 50 100 100 Paddy 80 100 140 240 300 1000 600 Lead (Pb) Others 70 90 120 170 Chromium (Cr Paddy 250 250 300 350 400 600 1000 VI) Others 150 150 200 250 Zinc (Zn) 200 200 250 300 500 1000 200 Nickel (Ni) 60 70 100 190 100 200 60 Boron (B, soluble) ------150 150 DDT 0.1 ------0.5 666 (Lindane) 0.1 ------0.5 Mineral oil ------3000 3000 Benzo(a)pyrene 0.55 3 3 1 *The revised standards are relatively new (see Chapter I) and still being trialed on a national basis. They may be subject to further refinement. EIL = Environment Impairment Liability. Source: PRC GB 15618-2018 and GB 4284-84, and Australia (EIL).

7 The Government of Australia, Department of Environment and Conservation. 2010. Contaminated Sites Management Series: Assessment Levels for Soils, Sediment and Water.

2. Discharge Standards for Construction and Operation Activities

a. Air Pollutant Emissions

50. Fugitive emission of particulate matter (such as dust from construction sites) is regulated under PRC ‘s Integrated Air Pollutants Emission Standard (GB 16297-1996), which sets 120 mg/m3 as the maximum allowable emission concentration and ≤ 1.0 mg/m3 as the concentration limit at the boundary of construction sites, with no specification on the particular matter’s particle diameter. Odor from the wastewater treatment stations and solid waste transfer stations should follow the Malodorous Pollutant Emission Standard (GB 14554-93). The maximum allowable 3 3 concentrations at the boundary of the sites for NH3, H2S and odor are 1.5 mg/m , 0.06 mg/m , and “20” (dimensionless). There are no equivalent EHS targets.

b. Wastewater Discharge

51. Discharge of wastewater from construction sites is regulated under PRC ‘s Integrated Wastewater Discharge Standard (GB 8978-1996). Class I standards apply to discharges into Category III water bodies under GB 3838-2002. Class II standards apply to discharges into Categories IV and V water bodies. Class III standards apply to discharges into municipal sewers going to municipal wastewater treatment plants (WWTPs) with secondary treatment.

Table I-9: Integrated Wastewater Discharge Class I Class II Class III Parameter For discharge into For discharge into Category For discharge into Category III water body IV and V water bodies municipal sewer pH 6–9 SS mg/L 70 150 400 BOD5 mg/L 20 30 300 COD mg/L 100 150 500 TPH mg/L 5 10 20 Volatile phenol mg/L 0.5 0.5 2.0 NH3-N mg/L 15 25 --- 2- PO4 (as P) mg/L 0.5 1.0 --- LAS (= anionic 5.0 10 20 surfactant) mg/L Source: PRC GB 8978-1996.

52. The Shandong Provincial Department of Ecology and Environment and the Shandong Provincial Market Supervision Bureau jointly issued the Shandong Province’s “Water Pollutant Discharge Standards for Rural Domestic Sewage Treatment Facilities (DB 37/3693-2019)”, which is officially implemented on March 27, 2020, and applicable for facilities with a scale of less than 500 m3/d. Class 1A of GB18918 is applicable for the facilities larger than 500 m3/d. When the effluent is charged into the Category III water body (except the designated drinking water source protection area and the swimming area), the Class I standard of DB 37/3693-2019 will be implemented. If the scale is smaller than 50 m3/d and the effluent is discharged to the Category IV and V water body, the Class II standard is applicable. When the scale is greater than 50 m3/d and the effluent is charged into Category IV and/or Category V water bodies, the Class II standard is applicable.

53. WBG’s EHS Guidelines set out indicative values for treated sanitary sewage discharge. The comparison with PRC’s DB 37/3693-2019 in Table I-10 showed overall the DB 43/1665-2019 has more stringent allowable limits except for the total nitrogen so that the DB 43/1665-2019 is 14 adopted for the project, but the emission of total nitrogen also shall comply with WBG’s EHS guidelines.

Table I-10: Water Pollutant Discharge Standards for Rural Domestic Sewage Treatment Facilities DB 37/3693-2019 WBG EHS Parameter Class I Class II Guidelines pH 6–9 SS mg/L 20 30 50 BOD5 mg/L 20 30 30 CODCr mg/L 60 100 125 b a a NH3-N mg/L 8 (15) 15 (20) N/A TNb 20 N/A 10 TPb mg/L 1.5 N/A 2 Oil and grease c mg/L 5 10 10 EHS = Environment, Health and Safety. a The value outside the brackets is the control index when the water temperature is ≥12 °C, and the value inside the brackets is the control index when the water temperature is ≤12 °C; b It is applied when the receiving water body is enclosed, or the nitrogen/phosphorus exceeded the standard already. c It is applied when the influent contains wastewater from catering services. Source: DB 43/1665-2019 and WBG’s EHS Guidelines.

c. Noise Emissions

54. The noise will be assessed against the standards in Emission Standards of Ambient Noise for Boundary of Construction Site (GB 12523-2011) during construction period and Class II of Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008) during operation period ( 55. Table I-11). WBG’s EHS guideline does not have equivalent noise emissions standard at facility/site boundary but sets noise level at receptor (see Table I-7) and requires the noise impacts should not exceed the levels presented in Table I-7 or result in a maximum increase in background levels of 3 dB at the nearest receptor location off-site.

Table I-11: Noise Limits for Construction and Operation Activities (Unit: Leq [dB (A)]) Noise Limit Period Major Noise Source Day Night Construction Bulldozer, excavators, and loader; pile driving machines; concrete mixer, 70 55 vibrator and electric saw; hoist and lifter Operation Pumps 60 50 Source: GB 12348-2008.

d. Vibration

56. Construction activities are likely to cause vibration impact and should comply with the Standard for Urban Area Environmental Vibration (GB 10070-88). The details are shown in Table I-12. The project works are located on villages and communities, where standard 2 applies.

Table I-12: Vertical Vibration Standard Value for Various Urban Areas (Unit: dB) Scope of applicable area Day Night Special residential area 65 65 Residential, cultural and educational area 70 67

Scope of applicable area Day Night Mixed area and commercial center 75 72 Industrial centralized area 75 72 Both sides of traffic trunk line 75 72 Both sides of railway main line 80 80 Source: PRC GB 10070-88.

3. Other Relevant Standards

57. Operation of the WTP and quality of the treated water to be supplied to residents will require compliance with the PRC Drinking Water Quality Standard (GB5749-2006), in which 106 parameters must be met (Table I-13).

Table I-13: Drinking Water Quality Standards (GB5749-2006) No. Parameter Standard Routine Parameter of Drinking Water Quality Microbiological parameter 1 Total coliform (MPN/100ml or CFU/100ml) LD 2 Thermotolerant coliform (MPN/100ml or CFU/100ml) LD 3 Escherichia Coli (MPN/100ml or CFU/100ml) 4 Total plant count (CFU/ml) 100 Toxicological parameter 5 Arsenic (As, mg/L) 0.01 6 Cadmium (Cd, mg/L) 0.005 7 Chromium Hexavalent (Cr 6+, mg/L) 0.05 8 Lead (Pb, mg/L) 0.01 9 Mercury (Hg, mg/L) 0.001 10 Selenium (Se, mg/L) 0.01 11 Cyanide (CN-, mg/L) 0.05 12 Fluoride (mg/L) 1.0 13 Nitrate (mg/L) 10 14 Trichloromethane (mg/L) 0.06 15 Carbon tetrachloride (mg/L) 0.002 16 Bromate (when O3 is applied) (mg/L) 0.01 17 Formaldehyde (when O3 is applied) (mg/L) 0.9 18 Chlorite (when ClO2 is applied) (mg/L) 0.7 19 Chlorate (when compound chlorine dioxide is applied) (mg/L) 0.7 Sensory Properties and General Chemical Parameter 20 Chromaticity (Unit of platinum cobalt color) 15 21 Turbidity (diffusing turbidity unit) NTU 1 22 Odor and Taste No odor, no taste 23 Appearance None 24 pH 6.5≤X<8.5 25 Aluminum (Al, mg/L) 0.2 26 Iron (Fe, mg/L) 0.3 27 Manganese (Mn, mg/L) 0.1 28 Copper (Cu, mg/L) 1.0 29 Zinc (Zn, mg/L) 1.0 30 Chloride (Cl-, mg/L) 250 31 Sulfate (SO4-mg/L) 250 32 TDS (mg/L) 1000 33 Total Hardness (CaCO3) (mg/L) 450 34 CODMn (mg/L) 3 16

No. Parameter Standard 35 Volatile phenols (phenol) (mg/L) 0.002 36 LAS (mg/L) 0.3 Radioactivity Parameter8 37 Total α radioactivity (Bq/L) 0.5 38 Total β radioactivity (Bq/L) 1 Non-Routine Parameter Microbial indicators 39 Giardia cysts (count/10L) <1 40 Cryptosporidium oocysts (count/10L) <1 Toxicological parameter (mg/L) 41 Antimonium (Sb, mg/L) 0.005 42 Barium (Ba, mg/L 0.7 43 Beryllium (Be, mg/L) 0.002 44 Boron (B, mg/L) 0.5 45 Molybdenum (Mo, mg/L) 0.07 46 Nickel (Ni, mg/L) 0.02 47 Silver (Ag, mg/L) 0.05 48 Thallium (Ti, mg/L) 0.0001 49 Cyan chloride (CN- mg/L) 0.07 50 Chlorodibromomethane (mg/L) 0.1 51 Bromodichloromethane (mg/L) 0.06 52 Dichloroacetic acid (mg/L) 0.05 53 1,2-dichloroethane (mg/L) 0.03 54 Dichloromethane (mg/L) 0.02 55 THMs 1 56 1,1,1 - trichloroethane (mg/L) 2 57 Trichloroacetic acid (mg/L) 0.1 58 Trichloroaldehyde (mg/L) 0.01 59 2,4,6- trichlorophenol (mg/L) 0.2 60 Bromoform (mg/L) 0.1 61 Heptachlor (mg/L) 0.0004 62 Malathion (mg/L) 0.25 63 PCP (mg/L) 0.009 64 HCH (total amount, mg/L) 0.005 65 Hexachlorobenzene (mg/L) 0.001 66 Dimethoate (mg/L) 0.08 67 Parathion (mg/L) 0.003 68 Bentazone (mg/L) 0.3 69 Parathion-methyl (mg/L) 0.02 70 Chlorothalonil (mg/L) 0.01 71 Carbofuran (mg/L) 0.007 72 Lindane (mg/L) 0.002 73 Chlopyrifos (mg/L) 0.03 74 Glyphosate (mg/L) 0.7 75 DDVP (mg/L) 0.001 76 Arazine (mg/L) 0.002 77 Deltamethrin (mg/L) 0.02 78 2, 4 - dichlorobenzene oxygen ethanoic acid (mg/L) 0.03 79 Dichloro-diphenyl-dichlorothane (mg/L) 0.001 80 Ethylbenzene (mg/L) 0.3 81 Dimethylbenzene (mg/L) 0.5

8 Radionuclide phase analysis is conducted if radioactivity value exceeds limits, to determine if the water is drinkable.

No. Parameter Standard 82 1,1- dichloroethylene(mg/L) 0.03 83 1,2- dichloroethylene(mg/L) 0.05 84 1,2- dichlorobenzene(mg/L) 1 85 1,4- dichlorobenzene(mg/L) 0.3 86 Trichloroethylene(mg/L) 0.07 87 Trichlorobenzene(mg/L) 0.02 88 Hexachlorobutadiene(mg/L) 0.0006 89 Acrylamide (mg/L) 0.0005 90 Tetrachloroethylene (mg/L) 0.04 91 Toluene (mg/L) 0.7 92 DEHP (mg/L) 0.008 93 ECH (mg/L) 0.0004 94 Benzene (mg/L) 0.01 95 Styrene (mg/L) 0.02 96 Benzopyrene (mg/L) 0.00001 97 Chloroethylene(mg/L) 0.005 98 Chlorobenzene(mg/L) 0.3 99 Microcystin-LR(mg/L) 0.001 Physical Properties and General Chemical parameters (mg/L) 100 Ammonia Nitrogen (NH3-N, mg/L) 0.5 101 Sulfide (S, mg/L) 0.02 102 Sodium (Na, mg/L) 200 CFU = colony forming unit, MPN = most probable umber. Source: PRC GB5749-2006. 18

II. DESCRIPTION OF THE PROGRAM

A. Rationale

58. The PRC has undergone rapid urbanization over the past 40 years, with the proportion of urban inhabitants increasing from 17.92% in 1978 to 60.60% in 2019. 9 Urbanization has supported high economic growth but has widened the income and infrastructure services divide between urban and rural areas and perpetuates rural to urban migration. This places increased pressure on urban infrastructure and services, while reducing the rural labor force and effectively constraining rural economic growth. The PRC’s national strategies, including the National New- Type Urbanization Plan, 2014–2020,10 and the National Strategic Plan for Rural Vitalization, 2018–2022,11 sought to improve the provision and quality of critical infrastructure services in underserved rural areas to reduce outmigration to urban areas. Improved urban–rural integration and strengthened rural infrastructure services are now key priorities of the new Fourteenth Five- Year Plan, particularly promoting more balanced regional development as a step towards closing the urban–rural divide. For the water sector, these efforts include expanding water supply and wastewater service networks as well as ensuring safe drinking water and improving the health of rural populations. The International Monetary Fund assessed that the PRC’s economy in 2021 onwards will continue its fast recovery from the health and economic crisis, although growth will still be unbalanced due to a reliance on public support without commensurate private consumption. 12 ADB projected that the PRC will have Asia’s strongest reversal from the pandemic-induced slump with output forecast to grow by 8.1% in 2021 due to a surge in private consumption and exports, slowing to 5.1% in 2022 as it reverts to the longer-term trend.13

59. The PRC Government has selected Jiaxiang County as a case study on how a poor county can leverage international best practices and an innovative financing mix to achieve urbanization and rural integration objectives. Jiaxiang County is in the western part of Jining Municipality, Shandong Province and had a 2019 registered population of 786,200, consisting of 299,300 urban residents (38%) and 486,900 rural residents (62%).14 The urban population and urbanization ratio are expected to rise by 2030 to more than 650,000 residents (63%). The county had a 2019 total per capita gross domestic product of CNY30,359, well below the national per capita gross domestic product of CNY70,892, and it ranked last among 14 counties and districts in Jining Municipality. Jiaxiang County has developed county-level goals aligned with the PRC’s urbanization and rural vitalization plans, with a top priority of improving livability and compromised environmental sustainability, especially in rural areas. The county has only about 315 cubic meters (m3) per capita of water resource availability annually, less than 16% of the national average. Rapid urbanization and uncontrolled groundwater abstraction are already impacting groundwater levels. The county has prioritized actions to improve access to safe drinking water and wastewater management services as these have the most direct and significant impact on the health of residents.

9 Government of the PRC, National Bureau of Statistics. 1979. China Statistical Yearbook. Beijing; and Government of the PRC, National Bureau of Statistics. 2020. China Statistical Yearbook. Beijing. 10 Government of the PRC, State Council. 2014. National New-Type Urbanization Plan, 2014–2020. Beijing (in Chinese). 11 Government of the PRC, Central Committee of the Communist Party of China, and State Council. 2018. National Strategic Plan for Rural Vitalization, 2018–2022. Beijing (in Chinese). 12 International Monetary Fund. 2021. People’s Republic of China: Staff Report for the 2020 Article IV Consultation. Washington, DC. 13 ADB. 2021. Asian Development Outlook 2021: Financing a Green and Inclusive Recovery. Manila. 14 Jiaxiang County Government. National Economic and Social Development Statistics Bulletin (accessed 10 April 2021, in Chinese).

60. Jiaxiang County’s development challenges. Jiaxiang County Government (JCG) faces many water sector issues. Water management is hindered by poor planning and weak governance due to fragmented and overlapping agency responsibilities. National policies and actions to address basin-wide and cross-sector water resource management issues such as groundwater conservation and water balance assessments are difficult to implement as there is little to no multiagency cooperation and coordination within the county and across local administrative boundaries. Poor water service delivery is the result of unreliable water sources and significant infrastructure deficits because of inadequate financing, particularly in rural communities. Nonrevenue water is about 30% due to poor maintenance and a lack of tariff linkage to capital or operational expenditure. Annual water demand is estimated to be 277.66 million m3 (at 75% guarantee rate) by 2035. 15 Water shortages and groundwater pollution and over- abstraction will become more recurrent as urban population and industry expand, and rural households connect to centralized water supply. Both groundwater and surface water are sensitive to climate change impacts because of increased water demands for agricultural and industrial productivity and human consumption. Historical data demonstrate decreased annual total precipitation in the province exacerbating drought conditions despite a trend of fewer but more intense storms causing more severe floods. Thus, climate change will significantly decrease climatic opportunities for water resources replenishment.

61. ADB lessons. ADB has provided technical assistance and loans to the PRC in the water sector for more than 25 years generating significant knowledge.16 Lessons learned have been incorporated in the JSDP and include the importance of improving water reuse and efficiency to ensure adequate supply and the need to focus on smart and nature-based systems, including sponge cities, to enhance sustainability. Improved water sector management is essential, particularly integrated planning and management of water infrastructure, optimal and adaptive operation of water services, and financial management to prioritize water tariff reforms and regulations and developing an environment that encourages and supports private sector finance. A design focused on building a sustained approach to capacity building and ensuring that social and environmental factors are equally addressed will be key to achieving strong sustainable implementation. ADB provided technical assistance support to Jiaxiang County during 2019–2021 to jointly prepare a climate risk and adaptation assessment which drove the development of the integrated water management strategic plan (IWMP). 17 Significant capacity building resulted in disparate stakeholder county agencies working together for the first time to understand and address ‘whole of sector’ water governance and management issues (including gender, poverty, and green procurement), and begin steps to more closely work with and advocate to relevant municipal and provincial agencies.

62. Choice of modality. The JSDP will be the first sector development program (SDP) for the water sector in the PRC and the first ADB SDP implemented at a county level. The JCG chose an SDP modality because the investment project would not be sustainable without having relevant reforms in place. The PBL is necessary to create an environment that can sustain integrated water management by focusing on county-level functional change and action learning to drive local institutional sustainability and broader policy change that will result in county and cross boundary structural transformations. The approach will ensure project investments are more efficiently utilized by integrating and coordinating water sector management to enhance water and

15 Shandong Province Engineering Consulting Institute. 2021. Feasibility Study Report: West Jining Water Supply and Drainage Integration Project (1 February 2021 version). Chapter 4.2: Water Balance Analysis. pp. 57–58. 16 ADB. 2018. Managing Water Resources for Sustainable Socioeconomic Development: A Country Water Assessment for the People’s Republic of China. Manila. 17 ADB. 2020. Jiaxiang Smart Water Sector Development Program Climate Risk and Adaptation Assessment. Consultant’s report. Manila (TA 9732-PRC).

wastewater services delivery and ensure investment sustainability by building an environment that encourages sustainable financing and institutions that can learn, adapt, and grow. Scalability will be enhanced through partnerships in knowledge sharing, institutional development, and policy dialogue. The JSDP will strengthen water and wastewater infrastructure development of Jiaxiang County and countywide integrated water cycle management. This is consistent with (i) the PRC’s Fourteenth Five-Year Plan, 2021–2025, which promotes the integrated development of urban and rural areas with the county as the basic unit, improving the living environment in rural areas and green development; (ii) the PRC’s National Strategic Plan for Rural Vitalization, 2018–2022, which promotes poverty reduction, rural development, and green and inclusive growth; (iii) PRC’s National New-Type Urbanization Plan, 2014–2020, which promotes the integration of urban and rural planning, infrastructure and public services; (iv) thirteenth five-year plans of Jining City and Shandong Province, 2016–2020;18 (v) Jining City Urban Master Plan, 2014–2030; 19 and (vi) Jiaxiang County Urban Master Plan, 2010–2030.20 The proposed JSDP is included in ADB’s indicative country operations business plan for the PRC, 2021–2023.21 It is aligned with (i) ADB’s Strategy 2030 operational priorities on livable cities; gender equality; rural development; tackling climate change, building climate and disaster resilience, enhancing environmental sustainability; reducing inequalities; strengthening governance and institutional capacity; and fostering regional cooperation and integration;22 (ii) ADB’s country partnership strategy for the PRC, 2021–2025;23 and (iii) urban, water, and environment operational plans.

B. Program Description

63. The JSDP is aligned with the following impacts: integrated water management infrastructure and governance strengthened, urban–rural integration strengthened, and human health and wellbeing and environmental quality of waterways in Jiaxiang County improved.24 It will have the following outcome: sustainability, affordability, and safety in water and wastewater management services improved.25

64. Output 1: Water sector strategies and operations strengthened. This output will be supported by the multitranche, stand-alone PBL.26 Tranche 1 has 4 policy actions, commenced in February 2020, and will be completed in October 2021; tranche 2, implementation from November 2021 to December 2022, has 11 policy actions; and tranche 3, implementation from January 2023 to December 2024, has 7 policy actions. All policy actions will reinforce outputs 2 and 3 by bridging the policy and institutional gaps in Jiaxiang County’s water sector and mitigating the changing climate risk. The policy actions extend and capitalize on best practices from relevant PRC and regional ADB projects and strategic knowledge partnerships and seek to scale-up

18 Jining Municipal Committee of the Communist Party of China. 2016. Thirteenth Five-Year Plan on Municipal Economic and Social Development, 2016–2020. Jining; and Shandong Provincial Committee of the Communist Party of China. 2015. Thirteenth Five-Year Plan on Provincial Economic and Social Development, 2016–2020. Jinan. 19 Jining City Urban and Rural Planning Bureau. 2016. Jining City Urban Master Plan, 2014–2030. Jining. 20 Jiaxiang County Urban and Rural Planning Bureau. 2011. Jiaxiang County Urban Master Plan, 2010–2030. Jiaxiang. 21 ADB. Forthcoming. Country Operations Business Plan: People’s Republic of China, 2021–2023. Manila. 22 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 23 ADB. 2021. Country Partnership Strategy: People's Republic of China, 2021–2025—Toward High-Quality, Green Development. Manila. 24 Central Committee of the Communist Party of China, State Council. Healthy China 2030. Beijing (Part 5: Building a Healthy Environment); Ministry of Ecology and Environment. 2018. National Environmental Protection Environment and Health Work Measures (for Trial Implementation). Beijing; and National People’s Congress. 2017. Water Pollution Prevention and Control Law. Beijing. 25 The design and monitoring framework is in Appendix 1 of the report and recommendation of the President. 26 The policy matrix is in Appendix 4 of the report and recommendation of the President.

21 sustainable reforms beyond the county to institutionalize best practice, wider sector coordination, and leadership. This first SDP at the county level has a focus on policy actions that county governments have the autonomy to implement, while at the same time acknowledging that Jiaxiang County could take a leadership role in fostering coordination and collaboration in water sector development across jurisdictional boundaries through a combination of immediate tangible actions and impact and laying the foundation for longer-term cross-jurisdictional outcomes. Policy actions under the three tranches of the PBL are grouped into five reform areas.

65. Reform area 1: Integration and cross-agency coordination in water sector planning, management, and service delivery strengthened. Under this reform area, an IWMP has been developed that establishes the framework for countywide integration and cross-agency coordination of water sector planning, management, and service delivery. There are eight policy actions across three tranches. Tranche 1 is focused on implementing the results of the comprehensive climate risk and adaptation assessment and preparing an IWMP and sponge city policy. Water management cooperation and coordination will be fostered through the establishment of the Integrated Water Management Steering Committee comprising four working groups which will drive cross-jurisdictional cooperation across municipality and provincial governments in the detailed development of relevant key management policies and plans over tranches 2 and 3. In Tranche 2, JCG will establish an IWMP finance unit and the Integrated Water Management Fund, and prepare a strategy to secure alternative financing, including private sector partnerships, for ongoing innovation and IWMP implementation in subsequent years.

66. Reform area 2: Provision of integrated urban and rural water supply and sewerage services expanded and improved. There are three policy actions in this reform area to be implemented in tranche 2. These policy actions are directed at issuing a new policy for, and the establishment of, a single countywide water utility replacing the multiple inefficient utilities currently operating and offering combined water supply and sewerage services. The water utility would develop good practice aligned with ADB guidelines. 27 This will overcome the current disparity in the quality of urban and rural water services by ensuring a consolidated rate and financial base, technical expertise, equipment, and other resources in ensuring a countywide baseline standard of services. In this reform area, countywide standards will be set for a range of IWMP functions, including (i) urban and rural water supply and sewerage services coverage; (ii) quality of water supplied and corresponding fit-for-purpose uses; (iii) reliability of services; (iv) water service charges for urban, rural, domestic, and industrial users; (v) poverty support; (vi) sustainable financing; and (vii) wastewater effluent quality.

67. Reform area 3: Countywide governance of waterway environment and flood management, urban drainage management, and sponge city development strengthened. There are six policy actions in this reform area, three to be implemented during tranche 2 and a further three in tranche 3. These actions will foster contemporary management of waterways to increase their multifunctionality and to enhance their ecological values and ecosystem services. Tranche 2 will require three of the interagency working groups to develop management and implementation plans in their respective portfolios, namely: the Jiaxiang integrated flood management plan, 2021–2035; Jiaxiang sponge city special plan, 2021–2035; and the Jiaxiang agricultural water management plan, 2021–2035. JCG oversight of the early implementation of these plans will promote greater water use efficiency and reduction in environmental pollution. The three policy actions in tranche 3 extend this work and ensure practical implementation of the corresponding plans and regulatory frameworks so that the benefits are sustained beyond the project period.

27 ADB. 2021. Guidance Note on State-Owned Enterprise Reform in Sovereign Projects and Programs. Manila.

68. Reform area 4: Cross-jurisdictional cooperation for sustainable surface water and groundwater resources management strengthened. There are four policy actions in this reform area, two in tranche 2, and two in tranche 3. These policy actions will ensure Jiaxiang County will have access to diverse water sources including groundwater, surface water, recycled wastewater, and stormwater. This will be strengthened by an evidence-based policy on regulating sustainable groundwater abstraction rates. One policy action is focused on harnessing advances in digital technology to pilot an internet-of-things platform, including associated sensors and real- time control infrastructure to optimize fit-for-purpose utilization of the diverse water sources, integrated flood management, and waterway quality management. These are innovative tools to foster cross-jurisdictional collaboration in decision-making, co-investment, and cooperation in regional water resources management.

69. Reform area 5: Mainstreaming of county-level integrated water management initiated. This reform area has one policy action to be implemented in tranche 3. The policy action is directed at ensuring that lessons learned during the implementation of integrated water management are shared across different levels of government with the aim of extending the adoption of county-level integrated water management across Shandong Province and demonstrating that it is an effective means of local operationalization of PRC policies and strategies for integrated water management, water environment protection, and rural vitalization. The focus of the policy action is the dissemination of knowledge, particularly (i) IWMP and associated governance and intergovernmental cooperative platform, (ii) water infrastructure planning to strengthen climate resilience in Jiaxiang County, and (iii) strategic water infrastructure investments and their accompanying policy reform opportunities that are specific to the local context.

70. Output 2: Sustainable water supply with diverse water sources and smart technology established. This output will fully integrate water supply and sewerage services delivery for Jiaxiang County by (i) increasing the capacity of five existing groundwater treatment plants by 57,200 m3 per day; (ii) constructing 46 hectares of wetlands, a 6.6 million m3 reservoir, and a 60,000 m3 treatment plant for surface water; (iii) constructing 32.9 kilometers (km) of network pipeline, 187.5 km of distribution pipelines, and 4,800 km of village pipes; (iv) implementing a smart information system using metering and data algorithm for improved planning and monitoring of water availability, surface and ground water diversions and abstraction, treatment, and distribution for urban and rural areas; and (v) implementing Supervisory Control and Data Acquisition systems in the operation of the water treatment plants. While the PBL will deliver a blueprint for future expansion of digital technology coverage, output 2 will entail the installation of a pilot scale internet-of-things platform for integrated water services and resource management, including flood management, water quality improvement in waterways, optimization of water sources selection for the range of urban and rural domestic uses, industrial and agricultural uses, and water environment ecological enhancement. The pilot scale implementation will be evaluated for its technical adaptability for the upscaling practices in subsequent years.

71. Output 3: Wastewater services expanded and improved with smart technology. This output will complement the policy actions and the infrastructure investments under outputs 1 and 2 to improve public health and environmental quality of waterways in Jiaxiang County by (i) expanding the coverage of sewerage services throughout the county by constructing a 20,000 m3 wastewater pump station and 44.1 km of wastewater network pipes; (ii) constructing or increasing capacity of 11 wastewater treatment plants by 9,500 m3 per day in 11 towns, and 41 wastewater treatment plants of 2,500 m3 per day capacity in 45 villages; and installing 323.6 km

23 of pipeline; (iii) dredging, greening, and rehabilitating 7.6 km of river and upgrading antiquated combined sewer overflow pipelines to separate 9 km of sewer and 11 km of drainage pipelines in prioritized urban areas; and (iv) implementing Supervisory Control and Data Acquisition systems in the operation of the wastewater treatment plants. Improving countywide wastewater treatment services will be a significant result, increasing the spatial coverage of the sewer network and preventing environmental pollution of the waterways and groundwater in Jiaxiang County. Improved treatment standards across the county will also enable greater use of the treated effluent and thus reduce and eliminate discharge to waterways.

72. Output 4: Institutional and program management capacity enhanced. This output will implement a comprehensive program of institutional capacity building and skills development in integrated water management of relevant stakeholders in JCG that will be extended to Shandong Provincial Government (SPG) and Jining Municipal Government (JMG).

C. Design of Infrastructure Components

73. The physical works are under output 2 and 3 that discussed in this section.

1. Component 1: Water Supply

74. This component will be achieved through three subprojects: (i) Subproject 1: Water source conservation and water storage: The subproject covers a land area of 2945.1 mu (196.34 ha) to construct a wetland of 692 mu (46.1 ha), and a water storage works (reservoir) with a storage capacity of 6.587 million m3, and a water plant with capacity of 60,000 m3/d. (ii) Subproject 2: Water supply pipe network: Pipe networks of 13 towns (sub-district offices), village pipes, and pipe network of North Jiabei New City, with a total of new water supply pipe network of 5,020.4 km: (a) 32.9 km of ductile iron pipe water supply pipe network (DN400-DN800) for connections of water plants. (b) 37.5 km of water supply pipe network of North Jiabei New City, including 8.7 km of ductile iron pipe, 11.7 km of PE main pipe network and 17.1 km of branch pipe network. (c) 4,950 km of water supply pipe network for the pipe network for villages and towns (Qingshan, Liangbaosi, Laosengtang, Acheng, Dongcheng) with diameter from DN20 mm to DN 125 mm, including 150 km in urban area of towns and 4800 km in villages. (iii) Subproject 3: Upgrading of township water supply plants: upgrading/replacement of electromechanical equipment, and development of informatization and water quality monitoring center, for the Liangbaosi water plant, Laosengtang water plant, Dongcheng water plant, Qingshan water plant, and Acheng water plant, with a total capacity of water supply of 57,200 m³/d. In order to meet the water supply requirements of Dazhanglou Town and Macun Town in Liangbaosi Area, two booster pump stations will be constructed in Huanggao North and Liangbaosi Town, respectively.

Figure II-1: Integrated Scope of Water Supply and Drainage Works

Table II-1: Quantities for Water Supply Component Serial Name Nature Scale Unit Remarks number Subproject 1-Water source conservation and water storage 1 Water storage subproject New 6,587,000 m3 2 Engineered wetland New 692 mu 3 Water supply plant New 60,000 m3d Subproject 2-Water supply network 1 Connections of water plants New 32 km

North Jiabei New City Water 2 New 37.5 km supply pipe network 3 Village pipe network subproject New 4,950 km Subproject 3-Upgrading of town / township water supply plants Replacement of water pumps Liangbaosi Water Plant Upgrade 15,000 m3d and electrical equipment 1 Booster pumping stations for New 2 number Liangbaosi Water Plant Replacement of water pumps 2 Laosengtang Water Plant Upgrade 9,000 m3/d and electrical equipment Replacement of water pumps 3 Dongcheng Water Plant Upgrade 7,200 m3/d and electrical equipment Replacement of water pumps 4 Qingshan Water Plant Upgrade 10,000 m3/d and electrical equipment Replacement of water pumps 5 Acheng Water Plant Upgrade 10,000 m3/d and electrical equipment

a. Subproject 1: Water Source Conservation and Water Storage

75. The water storage subproject will make use of the coal mining subsidence area in three villages (Sangxi Village, Sangdong Village and Caohai Village of Liangbaosi town, covering an area of 2,206.1 mu. The average subsidence depth is 2.5 m. The designed water storage level is 36.0 m, the level of the bottom of the reservoir is 31.0 m, and the corresponding design storage capacity is 6.587 million m3; It is composed of cofferdam, pump sluice, storage sluice, Zhaowang River’s old course control gate, diversion channel and other parts. The storage weir is a composite geomembrane anti-seepage earth cofferdam with a total length of 5,930 m, a height of 39.0 m at the crest of the storage weir, and a width of 9.0 m at the crest of the storage weir. A crest gravel road with width of 7.0 m will be built.

76. The water storage work will be supplied by three sources: (i) Yellow River diverted to the old river course of Zhaowang River with flow of 16 m3/s; (ii) runoff in the catchment. The annul runoff at 50% and 75% guarantee rate is 8.62 million cubic meters and 5.95 million cubic meters respectively; and (iii) discharged water from natu Lake with flow of 12 m3/s in flood seasons.

Figure II-2: Boundary of the Water Storage Works

77. The water diversion route is shown in Figure II-3: Liuli River → Yuncheng New River → Yuanzhuang River Diversion → Hongqi River → Jinzhuang River Diversion → Zhaowang River's old course → storage location.

78. The total length of the water diversion channel to be built is 1,976 m. It will start from the north shore of Zhaowang River Old Course and end at the west dam section of the water storage works. An earthen channel will be used; the width of the bottom of the channel is 4.0 m, the slope is 1:2.5, and the design diversion flow is 23.40 m3/s. For the remaining route, the existing river will be used, to meet the water diversion requirements.

Figure II-3:Water Diversion Route of Water Storage

79. The wetland has multiple functions: enrich biodiversity, regulation of runoff, improvement of water quality, regulation of microclimate, and provision of tourism resources. This subproject supports the water storage subproject by building 692 mu of ecological wetland, which is mainly used to improve the quality of water storage. The treatment process is as follows: raw water → first-level surface flow wetland → emergent plant pond → second-level surface flow wetland → submerged plant pond → third-level surface flow wetland. The effluent is designed to satisfy with the Class III of Environmental Quality Standards for Surface Water (GB3838-2002) (see Table II- 2).

Table II-2: Effluent Water Quality of Wetland (Unit: mg/L) Indicator CODCr BOD5 NH3-N TN TP Effluent 20 4 1.0 1.5 0.3 quality/Class III of GB 3838-2002

80. The stored water will be delivered to the proposed water treatment plant located in the original site of Caopu Village, in the northwest of Liangbaosi Coal Mine, west of the coal transportation railway, on the southeast side of the water storage works. The design capacity is 60,000 m3/d. The proposed water treatment plant covers an area of 47 mu and is 312.9 m long from east to west and 112 m wide from north to south. The layout and process are shown in Figure II-4.

Figure II-4: Layout of the Proposed Water Treatment Plant

b. Subproject 2: Water Supply Networks

81. Total engineering quantities of water supply network are summarized in Table II-3.

Table II-3: Total Engineering Quantities of Water Supply Network Pipeline Works of Towns (neighborhoods) PE PE Ductile iron Main Branch pipe pipe pipe Subtotal Name of Subproject (km) (km) (km) (km) Main water supply network of townships 32.9 - 32.9 North Jiabei New City water supply network 8.7 11.7 17.1 37.5 Liangbaosi - - 1,320 4,950 (of Laosengtang - - 965 which Dongcheng - - 833 4,800 km Qingshan - - 929 has been Village pipe network constructed using Acheng - - 903 counterpart fund in end of 2020) Total 5,020.4

82. North Jiabei New City water supply pipes. The water supply pipeline is planned to be laid along Jianshe Road, Yingfeng Road, Hongshan Road, Line 338, Chengxiang Avenue and other roads, with a total of 37.5 km.

83. Water supply pipes for townships. Currently the water supply system of townships is composed by five water supply districts, served by five water supply plants, namely Liangbaosi WSP, Laosengtang WSP, Qingcheng WSP, Acheng WSP and Dongcheng WSP. The water source is groundwater. These five WSPs will be connected by 64.29 km pipes to the new WSP to be built under the Program. The pipe diameters range from DN400 to DN800. Among the 64.29 km pipes, 32 km have been built. The Program will finance the remaining 32.9 km from Qingshan WSP to Acheng WSP and the section from the new WSP to the Liangbaosi WSP. Once the new WSP come into operation, the townships of Jiaxiang will be supplied by surface water instead of groundwater. The water supply pipeline layout is shown in Figure II-5.

Figure II-5: Pipeline Layout of Waterworks Interconnection Works

84. Village water supply pipes. The construction of 4950 km pipes in villages started in 2019 and 4800 km has been completed in the end of 2020 using counterpart fund. The environmental due diligence of the 4800 km pipes was provided in Attachment 4. The due diligence concluded that the construction of these 4800 km pipes was carried out generally in line with the PRC environmental related laws and regulations and ADB SPS requirements. The shortcoming is

31 inadequate public consultation and participation. The construction of the remaining 150 km is required to follow the public consultation plan defined in Table EMP-7. The layout of the village water supply pipes is presented in Figure II-6 to Figure II-10.

85. Pipe network of Laosengtang Water plant supply area is shown in Figure II-6.

Main pipe Branch main pipe Branch pipe Supply pipe from water source

Location of Laosengtang Water plant Figure II-6: Pipe Network of Laosengtang Water Plant Supply Area

86. Pipe network of Qingshan Water Plant supply area is shown in Figure II-7.

Figure II-7: Pipe Network of Qingshan Water Plant Supply Area

87. Pipe network of Liangbaosi Water Plant supply area is shown in Figure II-8.

Figure II-8: Pipe Network of Liangbaosi Water Plant Supply Area

88. Pipe network of Dongcheng Water Plant supply area is shown in Figure II-9.

Figure II-9: Pipe network of Dongcheng Water Plant supply area

89. Pipe network of Acheng Water Plant supply area is shown in Figure II-10.

Location of Acheng Water plant Figure II-10:Pipe Network of Acheng Water Plant Supply Area

c. Subproject 3: Upgrading of Township Water Supply Plants

90. The water used in the five water plants comes from groundwater. The upgrading of the five water plants is mainly replacement of equipment, with a relatively small amount of works. As these facilities will be replaced in the future, they only need to meet the current water supply demand. Scheme of upgrading of the five water plants is summarized in Table II-4 to II-8.

Table II-4: Scheme of Upgrading of Liangbaosi Water Plant Water Effective Scale of Supply at Volume of Name of Water Peak Clear Water Water Supply Hour Tank Plant Stage (m3/d) (m3/h) (m3) Pump Configuration Pump status: Total 4; 3 in use and 1 spare Existing -- 450 1,100 Parameters: Q = 150 m³/h, H = 70 m, P = 45 kW Retain 2 existing pumps, dismantle 2 pumps; parameters of existing After 15,000 1,000 1,100 pumps: Q = 150 m³/h, H = upgrading 70 m, P = 45 kW; Liangbao Add 2new pumps: Q = 300 si Water m³/h, H = 70 m, P = 110 kW Plant 1. Water pumps: Add 2 sets of water supply pumps, retain 2 sets of existing pumps, and dismantle 2 sets; upgrade the water suction, and water supply pipes, valves etc. in the secondary pump room; reconstruct the internal pipelines of the plant area to connect to the Main main water supply pipelines outside the plant; contents of 2. Electricity: Remove one 45 kW water supply pump, add one control works cabinet to control two 110 kW water supply pumps; replace the transformer with 400 kVA; add two high-pressure metering cabinets and ring network cabinets. 3. Automatic control: Replace pump control cabinet. Population served by the water plant: 181,806 Domestic water consumption norm: 70 l/person-day Maximum hourly variation coefficient: Kh=1.6

Table II-5: Scheme of Upgrading of Laosengtang Water Plant Water Effective Scale Supply Volume of at of Clear Water Peak Water Name of Supply hour Tank Water Plant Stage (m3/d) (m3/h) (m3) Pump Configuration 2 large and 2 small pumps, totaling 4. Parameters of large pumps: Q = 150 Laosengtang Existing -- 300 1,425 m³/h, H = 35 m, P = 22 kW Water Plant Parameters of small pumps: Q = 50 m³/h, H = 35 m, P = 7.5 kW

Water Effective Scale Supply Volume of at of Clear Water Peak Water Name of Supply hour Tank Water Plant Stage (m3/d) (m3/h) (m3) Pump Configuration Retain 2 existing large pumps. Parameters of large pumps: Q = 150 m³/h, H = 35 m, P = 22 kW; Retain 1 existing small pump, dismantle After 9,000 600 1,425 1: upgrading Parameters of small pumps: Q = 50 m³/h, H = 35 m, P = 7.5 kW Add 2new pumps: Q = 300 m³/h, H = 45 m, P = 7.5 kW 1. Water pumps: Add 2 sets of water supply pumps; upgrade the water suction, and water supply pipes, valves etc. in the secondary pump Main room; reconstruct the internal pipelines of the plant area to connect to contents the main water supply pipelines outside the plant; of works 2. Electricity: Add one transformer S11-M-315; add one frequency control cabinet to control two 45 kW water pumps 3. Automatic control: Replace pump control cabinet. Population served by the water plant: 103,308 Domestic water consumption norm: 70 l/person-day Maximum hourly variation coefficient: Kh=1.6

Table II-6: Scheme of Upgrading of Dongcheng Water Plant Scale Water Effective of Supply Volume of Water at Peak Clear Water Name of Supply Hour Tank Water Plant Stage (m3/d) (m3/h) (m3) Pump configuration Pump status: Total 4; 3 in use and 1 spare Existing -- 480 985 Parameters: Q = 160 m³/h, H = 50 m, P = 37 kW After Dongcheng 7,200 480 985 Retain the existing pump equipment upgrading Water Plant 1. Water pumps: Retain the existing pump equipment; reconstruct the Main internal pipelines of the plant area to connect to the main water supply contents of pipelines outside the plant. works 2. Electricity: No change 3. Automatic control: No change Population served by the water plant: 107,131 Domestic water consumption norm: 70 l/person-day Maximum hourly variation coefficient: Kh=1.6

Table II-7: Scheme of Upgrading of Qingshan Water Plant Water Effective Scale Supply Volume of at of Clear Name of Water Peak Water Water Supply Hour Tank Plant Stage (m3/d) (m3/h) (m3) Pump Configuration Pump status: Total 4; 3 in use and 1 spare Existing -- 432 1,095 Parameters: Q = 144 m³/h, H = 57 m, P = 37 kW Retain 3 existing pumps, dismantle 1 pumps parameters of existing pumps: Q = After 10,000 667 1,095 144 m³/h, H = 57 m, P = 37 kW; upgrading Add 2new pumps: Q = 280 m³/h, H = 57 m, Qingshan P = 75 kW Water 1. Water pumps: Add 2 sets of water supply pumps, retain 1 set of existing Plant water pump and dismantle 1 set; upgrade the water suction, and water supply pipes, valves etc. in the secondary pump room; reconstruct the Main internal pipelines of the plant area to connect to the main water supply contents pipelines outside the plant. of works 2. Electricity: Dismantle one set of 37 kW water supply pump; add one frequency control cabinet to control two 75 kW water pumps 3. Automatic control: Replace pump control cabinet. Population served by the water plant: 156,111 Domestic water consumption norm: 70 l/person-day Maximum hourly variation coefficient: Kh=1.6

Table II-8: Scheme of upgrading of Acheng Water Plant Water Effective Scale Supply Volume of at of Clear Name of Water Peak Water water Supply Hour Tank plant Stage (m3/d) (m3/h) (m3) Pump Configuration Pump status: Total 4; 3 in use and 1 spare Existing -- 480 1,305 Parameters: Q = 160 m³/h, H = 50 m, P = 37 kW Retain 4 existing pumps; Parameters of existing pumps: Q = 160 m³/h, After H = 50 m, P = 37 kW; 10,000 667 1305 upgrading Add 1new pump: Acheng Parameters of new pump: Q = 160 m³/h, H = Water 50 m, P = 37 kW Plant 1. Water pumps: Add 2 sets of water supply pumps, retain 4 sets of existing water pumps; upgrade the water suction, and water supply pipes, valves Main etc. in the secondary pump room; reconstruct the internal pipelines of the contents plant area to connect to the main water supply pipelines outside the plant; of works 2. Electricity: Add two new frequency control cabinets to control one 37 kW water pump and two 22 kW deep water pumps; 3. Automatic control: Replace pump control cabinet. Population served by the water plant: 113,009 Domestic water consumption norm: 70 l/person-day Maximum hourly variation coefficient: Kh=1.6

2. Component 2: Wastewater Collection and Treatment 91. This component will increase the service coverage of the wastewater system throughout the County. They mainly include the North Jiabei New City wastewater treatment pumping station and ancillary pipe network, the separate rainwater and wastewater pipe works in the old urban area, and the village and town/township wastewater treatment facilities and ancillary pipe network. North Jiabei New City and part of the old urban area will be added to the area served by wastewater collection, wastewater treatment facilities in 11 towns will be upgraded, and wastewater collection and treatment facilities will be added in 41 villages along the national and provincial rivers and important tributaries.

a. Subproject 4：North Jiabei New City Wastewater Collection

92. According to the requirements of ground elevation and pipeline depth, a wastewater lifting pump station with capacity of 20,000 m3/d will be built at the junction of Jiaxiang Avenue and Laozhaowang River. The location of the pumping station and North Jiabei New City wastewater main pipes are shown in Figure II-11.

Note: blue line=proposed stormwater and sewage diversion pipeline under the project; blue square=40,000 m3/d WWTP to be built by the government; blue dot=proposed 20,000 m3/d sewage pump station under the project. Figure II-11: Schematic map of North Jiabei New City Wastewater Main Pipes and Proposed Pump Station

93. Engineering quantities are summarized in Table II-9:

Table II-9: Engineering Quantities of Wastewater Network Wastewater Wastewater Pipe Length No. Name of Road Pipe Diameter (m) Remarks 1 Jianshe Road DN600 1,274 DN600 882 Wastewater 2 Jiaxiang Avenue DN800 2,350 pumping station DN1,000 4,650 (20,000 m3/d) DN600 1,620 3 North section of Hongshan Road DN800 2,428 4 Yanwu Road DN500 2,457 5 Jiashan Road DN500 1,027 DN600 1,196 6 Wanxing Road DN800 5,070 DN600 1,772 7 Huizhan Road DN800 1,451 DN1,000 7,430 8 North Outer Ring DN1,500 4,952 9 Rongsheng Road DN600 2,000 10 Chuangxin Road DN500 1,443 12 Jiahe Road DN600 1,000 13 Yingfeng Road DN600 1,118 1 wastewater Total 44,120 pumping stations

b. Subproject 5: Separated Drainage System in Old Urban Area

94. The scope of rainwater and wastewater flow separation works in old urban area is shown in Figure II-12. The project design urban rainwater and wastewater flow separation works include: Airport Road, north section of Hongtaiyang Road, west section of Qilin Street, Yingfeng Road (S338-Central Street section), Jianshe Road, a total of upgrade of 9.0 km of wastewater pipe network and 11.03 km of rainwater pipe network.

Note: black line= separated drainage pipes to be installed under the project Figure II-12: Schematic of Rainwater and Wastewater Flow Separation Works in Old Urban Area

95. Works items of rainwater and wastewater flow separation works in old urban area are summarized in Table II-10.

Table II-10: Works Items of Rainwater and Wastewater Flow Separation Works in Old Urban Area Diameter of Length of Diameter of Length of Name of Wastewater Wastewater Rainwater Rainwater Road Start and End Pipe Pipe (m) Pipe Pipe (m) Remarks DN600 1,076 DN600 800 Rainwater pipes Yingfeng S338 – Central DN800 1,350 DN800 1,300 arranged on both Road Street DN1,000 1,962 sides West section Qianjin River – DN600 466 DN500 420 of Qilin Street Jiajin Line West section Airport Road – of Dexiang DN600 730 DN500 710 Hongshan Road Road Rainwater pipes South of railway DN500 2,000 arranged on both Jianshe Road sides DN600 1,600 S338 – Railway DN800 900 S338 – Rainwater pipes Airport Road Chengxiang DN800 2,651 DN1,000 2,600 arranged on both Avenue sides Chengxiang Hongtaiyang Avenue – Jixiang DN600 765 DN800 700 Road Road Total 9,000 / 11,030 /

c. Subproject 6: River Comprehensive Rehabilitation

96. Donglai River is located in the southeast of the county seat with total length of 1.53 km. It is the main river channel connecting Laozhaowang River and Hongshan River. Most of the river sections have been reverted and widened, and wetland reconstruction has been completed. For the one remaining section to be rehabilitated, the cross section is not wide enough, resulting in a drainage bottleneck, with steep original soil slope, thick weeds, and serious siltation. Slope protection greening is needed, for an area of 30,000 m2. The current situation of Donglai River is shown in Figure II-13.

Un-rehabilitated river section Rehabilitated river section Figure II-13: Current Situation of Donglai River Sections

97. Current situation of Laoniutou River: At present, it is a black and odorous water body. The wastewater is stinky, and the sludge is black. Along the route, wastewater is directly discharged to the river without collection and treatment. The bottom of the river is seriously silted; bridge openings are blocked for about two-thirds. Besides, it is left unattended all year round. The river channel is covered with grass. Dead branches and leaves are scattered in the river. Fermentation and spoilage are also important reasons that the river is black and stinky. The current situation of Laoniutou River is shown in Figure II-14.

Figure II-14: Current Situation of Laoniutou River

98. Works of Laoniutou River includes: (i) Desilting of the whole section: In the design, the bottom elevation of the river is 33.0 m, the width of the river bottom is not less than 4 m, and the gradient is 1:2, which will meet the river flood control standards. The river channel’s centerline is

basically set as the original river centerline. The estimated dredging volume is 190,000 m3. (ii) For the section from Ridong Expressway to Laozhaowang River: Enhanced soil and water conservation, paving with masonry, and greening, with 68,000 m2 of landscaping improved. (iii) Reconstruction of 2 culverts at the expressway: The bottom elevation of the original culvert is relatively high and cannot meet water flow requirements; it needs to be reconstructed. (iv) Two small bridge with width of 8-9 m and length of 25 m. (v) Construction of 4 km of DN300 main intercepting wastewater pipes in Wangqiao Village and Mangpu Village, with the wastewater connected to main wastewater pipes in Wanxing Road and Huizhan Road, respectively. 99. Engineering quantities of river water management works are summarized in Table II-11.

Table II-11: River Water Management Works Length of Wastewater Culvert to be Interception Dredging Greening Rehabilitated Length Pipeline Item (10,000 m3) (10,000 m2) (number) Bridge (km) (km) Laoniutou 2 19 6.8 2 6.08 4 River Donglai River - 3 - - 1.53 / Total 19 9.8 2 2 7.61 4

d. Subproject 7: Wastewater Collection and Treatment in Townships

100. The project will support construction of 11 township wastewater treatment stations (WWTS) and ancillary collection networks with total length of 103.6 km. The main design process is the lifting pump + regulating tank + biological contact oxidation tank + disinfection. The design scale of a single sewage treatment facility ranges from 500-1100m³/d, and the total sewage treatment scale is 9500 m³/d. The effluent is designed to meet with the requirements Class 1 of Shandong Province’s "Water Pollutant Discharge Standards for Rural Domestic Sewage Treatment Facilities". The pipeline adopts three pipe diameters: DN300, DN400, and DN500.The quantities of the township WWTSs and ancillary wastewater pipe network are summarized in Table II-12.

Table II-12:Township WWTSs and Ancillary Wastewater Pipe Network Capacity of the WWTSs No. Town (m³/d) Length of New Pipes (km) DN300 4.15 1 Dazhanglou Town 500 DN400 2 DN500 1 DN300 4.3 2 Zhifang Town 600 DN400 2.5 DN500 1.5 DN300 10.1 3 Liangbaosi Town 600 DN400 5.3 DN500 2.94 DN300 3.5 4 Jintun Town 800 DN400 4.1

DN500 2.1 DN300 4.2 5 Laosengtang Town 800 DN400 1.5 DN500 1.8 DN300 4.1 6 Menggu Market Town 700 DN400 4 DN500 3.6 DN300 0.9 7 Wolongshan Neighborhood 1,100 DN400 0.5 DN500 0.8 DN300 6.3 8 Macun Town 800 DN400 2.6 DN500 2.2 DN300 5.3 9 Zhongshan Town 1,000 DN400 2.1 DN500 2.6 DN300 5.3 10 Mandong Town 800 DN400 3.1 DN500 0.7 DN300 4.9 11 Huanggao Town 650 DN400 2.1 DN500 1.5 12 Total 9,500 \ 103.59

e. Subproject 8: Village Wastewater Treatment Works

101. There are 45 villages along the national and provincial cross-section rivers and important tributaries. Except Madong Village, Maxi Village, Wanggudui Village and Hegou Village are connected to the town-level sewage treatment station, the remaining villages will build new sewage treatment facilities. The main process is biological contact oxidation technology. The design scale of a single sewage treatment facility ranges from 10-220 m³/d, and the total sewage treatment scale is 2560 m³/d. The effluent standard is Class 1 of Shandong Province "Water Pollutant Discharge Standard for Rural Domestic Sewage Treatment Facilities". The total land area of sewage treatment facilities is about 2048 m2. Supporting pipeline network of 147.89 km will be built, including 29.578 km of DN300 sewage pipeline and 118.312 km of DN200 sewage pipeline. The proposed works are shown in Figure II-15.

Figure II-15: Distribution of 45 villages Along Rivers and Important Tributaries of National and Provincial Sections

D. Associated and Existing facilities

102. The project due diligence considered two types of facilities per ADB’s SPS: (i) associated facilities––those which are not funded by the project but whose viability and existence depend exclusively on the project and whose operation and services are essential for successful operation of the project; and (ii) existing facilities – those which are already established and operating and which the project will help upgrade or rehabilitate. Due diligence was also conducted for existing facilities which will be necessary for the project operations, but which are not part of the project scope and will not be subject to any ADB-funded construction, operation, upgrade, rehabilitation, or other activities.

103. The existing facilities identified are elaborated in Table II-14, including the wastewater treatment plants that will receive the sewage collected by the wastewater pipes to be constructed under the Program and the waste to energy plant that will handle the municipal waste and sewage from the operation of the Program facilities.

104. The five existing water supply plants, i.e., Laosengtang WSP, Liangbaosi WSP, Acheng WSP, Qingshan WSP and Dongcheng WSP currently are using groundwater. Once the 60,000 m3/d new WSP constructed, these WSPs will switch to surface water supplied by the new WSP. These WSPs will be connected by 64.9 km water supply pipes, of which 32 km has been constructed in 2020 and the remaining 22.9 km will be financed by the Program. This 32 km pipes constructed as associated facilities as it is critical to the connection of five WSPs and replacement of groundwater by surface water.

105. Due diligence was conducted (see below) and confirmed that there are no non-compliance issues for the existing facilities. All were constructed in accordance with domestic requirements, have the necessary approvals, and are operating in accordance with the PRC standards.

Table II-13: Key Information of the Identified Existing /Associated Facilities Year of EIA Design Actual Compliance with the Environmental Linkage to Name Operator Location Operation Approval Capacity Amount Regulatory Requirements the Project Jiaxiang Shandong 35°22’8.00″ N Phase I: 2015 80,000 40,000 Yes. The effluent standard of No.1 and Receiving No.1 and Public Utilities 116°22’5.00″ 2005, (Phase t/d t/d No.3 WWTPs is Class 1A. The annual wastewater No.3 Group E Phase II III) monitoring reports (2019 and 2020) collected by WWTPs Jiaxiang 2010 disclosed on the website of Jining the sewage Water Co. Ltd Phase III: Municipal Ecology and Environment pump 2017 Bureau showed compliance with the stations and discharge standards pipes to be (http://60.211.254.236:8402/zxjc/index.htm) constructed in Jiabei New City and Jiaxiang old urban area in the short term.

Jiaxiang At design See Figure II- 2024 N/A 40,000 N/A At design stage. The plant will be Receiving No.2 stage. The 11. t/d designed, built and operated following the wastewater WWTP construction PRC environmental related laws and collected by unit is regulations. the sewage Jiaxiang pipes to be County constructed Housing and in Jiabei Urban-Rural New City Development and Bureau Jiaxiang old urban area once put into operation. Jiaxiang Jiaxiang 35°36’58.21″ September 2018 1000 t/d 430 t/d Yes. The real time pollutant discharge Receiving waste to Everbright N 2019 information is disclosed on the portal municipal energy Environmental 116°15’48.85″ managed by Ministry of Ecology and solid incineration Protection E Environment (https: //ljgk.envsc.cn). The wastes plant Energy Co. monitoring results showed compliance with generated Ltd relevant discharge standard. during

construction and operation of project facilities and sludge from the project wastewater

treatment stations and WSP. 32 km Shandong The route is 2020 2016 N/A N/A Yes. The site was recovered based on the Part of the water Xiangcheng shown in site inspection conducted by the TRTA connecting supply Construction Figure II-1 environmental consultant during April pipes of the pipes Company (except for the 2021. five existing section from WSPs. Qingshan WSP to Acheng WSP and the section from the new WSP to the existing WSP)

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Setting

106. Location. Jiaxiang County is located in the west of Jining City, Shandong Province of PRC. It is 16 km wide from east to west and 47.5 km long from north to south, with a total area of 838.56 km2. The county seat (116°20' E, 35°24' N) is about 22 km east to Jining city.

Note: the blue dotted line indicates the administrative boundary of Jiaxiang County Figure III-1: Location Map of Jiaxiang County

107. Climate. Jiaxiang County has a continental climate in a warm temperate monsoon zoon with four distinct seasons. The annual average temperature is 12.8℃ to 13.9℃. The average precipitation from June to August is 398.5 mm, accounting for 60% of the annual precipitation. The winter is often controlled by high pressure. The climate is dry and cold, and rain and snow are scarce in winter.

108. Hydrology. There are 35 rivers in Jiaxiang County, with a total length of 362.3 km. The rivers flow from west to east or north to south into Nansi Lake and then into Huai River. The average annual total water resources of Jiaxiang County are 825 million cubic meters. Among them, surface water resources are 635 cubic meters, accounting for 77%; groundwater resources are 190 million cubic meters, accounting for 23%.

109. The water storage works under component 1 will receive water from Nansi Lake during flood season. Nansi Lake is the general name of Nanyang, Dushan, Zhaoyang, and Weishan Lakes. The basin area is 31700 km2. The lake area is 125 km long from north to south, 6-25 km wide from east to west, and the surrounding length is 311 km. The lake area is 1,266 km2. Its largest flood control storage capacity is more than 4 billion cubic meters. It is the largest lake in Shandong Province and the eighth largest lake in the PRC.

110. Topography. The terrain of Jiaxiang County slopes from northwest to southeast, with an average ground slope of 1/10000, and the altitude from 40 m to 35 m. The northwest is 5m higher than the southeast and the west is 3 to 4 m higher than the east. The low hills in the south of the county are mostly denuded structures. The altitude is generally between 80 and 200 m. The highest point is Mengliang Mountain at the junction of Maji and Zhifang. The elevation is 234.1 m. The low mountains and hills are mainly distributed in Zhifang Town, Mandong Town, the south of Zhongshan Town, the west of Jintun Town, the south of Jiaxiang Sub-district Office and the central and southern part of Wolongshan Sub-district Office. The lithology of the low hills is mostly Ordovician and Cambrian limestone and sandstone. The plains are affected by the flooding of the Yellow River. Due to the difference in the flow direction and velocity of the Yellow River, the overlying sediments of different thicknesses have formed a complex landscape, which can be roughly divided into three types: slightly sloping flat land, gentle flat slope land and depression. The slightly sloping flat land is mainly distributed in Zhifang Town and Mandong Town; the gentle flat sloping land is mainly distributed in seven towns (streets) including Huanggai Town, Laosengtang, Mengguji, Wolongshan, Macun, Wanzhang, and Jiaxiang Street, and the southwest of Liangbaosi Town, and the west of Dazhanglou Town. The lakeside depressions are mostly concentrated in the northeast of Liangbaosi Town, the east of Dazhanglou Town and the east of Jintun Town.

B. Ecological Resources

111. The vegetation in Jiaxiang County belongs to the temperate broad-leaved forest zone. The project area is in the built-up urban area or vacant land of villages. The ecosystem is heavily disturbed by human activities.

a. Subproject 1: Water Source Conservation and Water Storage

112. The water storage reservoir is in the mining subsidence area of Liangbaosi Town. This area has subsided for more than ten years and is stable now according to the Jining City Coal Mining Subsidence Land Rehabilitation Plan (2016-2030). The subsidence is caused by deformation of the landform due to the movement of rock layers. The coal seam at Liangbaosi Mine is located at a depth of approximately 1,500 meters. There were no coal mining activities within the project site that may cause soil contamination. Surface runoff flows into the shallow area during rainy season. Reeds grow surrounding the water. The proposed water supply plant is in Caopu Village, the south of the water storage reservoir, covering an area of 47 mu and is 312.9 m long from east to west and 112 m wide from north to south.

Water storage site Water supply plant site Figure III-2: Proposed sites for the water storage reservoir and WSP

b. Subproject 2: Water Supply Pipe Network

113. The installation of water supply pipes will not involve any critical habitats: • Connection of water supply plants. The 10 km water supply pipes connecting the new 60,000 m3/d WSP and 22.9 km pipes from Qingshan WSP and Acheng WSP will be laid along the existing road or cross cultivated land. • North Jiabei New City water supply pipe network. The water supply pipe in North Jiabei New City will be installed along the Jianshe Road, Yingfeng Road, Hongshan Road, No.338 Road and Chengxiang Road with total length of 37.5 km. • Village water supply network. Total of 150 km water supply pipes will be installed along the streets in townships.

c. Subproject 3: Upgrading Existing WSPs

114. The Yuanzhuang water supply pump station and Guojialou pump station will take 110 m2 cultivated land each.

Figure III-3: Proposed sites for the Water Supply Pump Stations

d. Subproject 4+5: Wastewater Collection Networks

115. The wastewater collection networks of Jiabei New City and separated drainage system renovation of old urban area will be built-up area without any natural ecological resources.

e. Subproject 6: Rehabilitation of Donglai River and Laoniutou River

116. Donglai River are small channel in the urban area of Jiaxiang. Laoniutou River flows through the rural area then into Old Zhaowang River. Along the rivers are vegetables, reed, humulus and other common weeds.

Donglai River

Laoniutou River Figure III-4: Current Situation of the Rivers to be Rehabilitation

f. Subproject 7+8: Wastewater Collection and Treatment in Townships and Villages

117. Vacant land in the village/town will be selected to build wastewater treatment facilities. Figure III-3 shows the typical site condition for the WWTs in rural areas. The scale of the site is about 24 m2 (village WWTS) to 400 m2 (township WWTS).

Zhifang Town WWTS Figure III-5: Typical Site for WWTS

C. Physical Cultural Resources

118. No physical cultural resources have been documented in the project area of influence. Should buried artifacts of archaeological significance be uncovered during the construction stage within the project areas, construction shall be stopped and immediately reported to the Jiaxiang cultural bureau.

D. Social and Economic Conditions

119. Demography. The county's total registered population at the end of the year was 93.26 (Tanli 10.45, Maji 4.26), an increase of 0.71 million over the previous year. Among them, the urban population was 36.01 (Tuanli 4.57, Maji 18.4) and the rural population was 57.25 (Tanli). 5.88. Maji 24,200); male population is 488,172 (Jiaxiang County 412197), female population is 444,426 (Jiaxiang County 373281), male to female ratio is 109.84 (Jiaxiang County 110.4) (100 females). The birth rate is 9.699‰, the death rate is 4.66‰, and the natural population growth rate is 5.04‰.

120. Economic conditions. In 2018, the total gross domestic product (GDP) of Jiaxiang County reached CNY 23.872 billion, with an increase of 6.6%. Among them, the added value of the primary industry was CNY3.385 billion with an increase of 3.4%; the added value of the secondary industry was CNY 9.613 billion with an increase of 7.2%; the added value of the tertiary industry was CNY 10.874 billion with an increase of 7%. The county's three industrial structures are 14.2: 40.3: 45.5. The income of urban and rural residents increased steadily. The county's per capita disposable income reached 20,405 yuan, an increase of 9.8%, the per capita disposable income of urban residents reached 29,592 yuan, an increase of 8.2%, and the per capita disposable income of rural residents reached 15,256 yuan, an increase of 9.0%.The urbanization rate is gradually increasing. The county has a permanent population of 699,300 and an urban population of 296,500. The urbanization rate is 42.4%, an increase of 1.96 percentage points over the previous year.

121. The impact of COVID-19 pandemic is widespread, without exception in Jiaxiang County. Jiaxiang county reported 2 positive cases by 24 March 2020; as of 22 June 2021, no new cases had been reported in Jiaxiang (Table III-1). The National Health Commission of the PRC

53 announced China had administered over 1 billion doses of COVID-19 and it is expected to build herd immunity by the end of 202128. Table III-1: COVID-19 Epidemic Statistics (as of 22 June 2021) Region Confirmed Recovered Death PRC 91,653 86,503 4,636 Shandong Province 883 875 7 Jining Municipality 260 260 0 Jiaxiang County 2 2 0 Source: National Health Commission of the PRC.

E. Environmental Quality

122. Jiaxiang County EEP has an automatic air quality monitoring station to measure air quality of the urban areas. The monitoring data of the main air pollutants published in the Environmental Status Bulletin of 2019 released by the Jiaxiang EEP were referred to in this IEE to assess the regional air quality. Monitoring indicators include inhalable particulate matter (PM10), sulfur dioxide (SO2), nitrogen oxides (NO2), and fine particulate matter (PM2.5). The air monitoring results showed the PM10 and PM2.5 are non-compliance with the requirements of Class II of Ambient Air Quality (GB3095-2012) in the urban area of Jiaxiang County in 2020. The non-compliance of particulate matter mainly occurred in winter because of heating.

Table III-2: Air Quality of Jiaxiang Urban Area (2020) 3 3 3 3 Month SO2 (μg/m ) NO2 (μg/m ) PM10 (μg/m ) PM2.5 (μg/m ) Jan 19 42 161 118 Feb 11 18 82 54 March 15 30 95 46 May 16 30 91 44 June 14 26 86 35 July 11 22 82 35 Aug 9 19 52 28 Sep 9 18 50 28 Oct 14 30 70 33 Nov 15 50 105 51 Dec 23 49 150 101 Class II 60 40 70 35

123. Project-specific sampling was conducted in November 2020 by Shandong Senze Testing Technology Co., Ltd. The monitoring results are discussed in the sections below.

124. Water Quality. Surface water was sampled at the receiving water bodies of the rural wastewater treatment facilities. The locations of sampling are presented in Figure III-4. In addition to the parameters shown in Table III-3, the concentrations of copper, zinc, arsenic, cadmium, lead, mercury. Hexavalent chromium, oil, and cyanide were also tested but not detected. Generally, the surface water quality these rivers are good. The monitoring results showed compliance with the requirements of Class III of GB3838-2002 Surface Water Quality Standard except for anionic surfactant. The reason of the exceedance of anionic surfactant might be caused by using of detergent.

28 National Health Commission of the PRC (nhc.gov.cn).

Table III-3: Surface Water Quality Monitoring Results (unit: mg/L; pH: Dimensionless)

Sampling NH3- Anionic Fecal Location Date pH Fluoride Chloride Sulfate Nitrate SS DO BOD5 COD N TP surfactant TN Coliform Zhushui River 2020-11-20 7.26 0.82 142 81.2 7.1 13.2 5 0.72 19 0.37 0.076 0.08 0.846 219 105 National Express section 2020-11-21 7.24 0.7 141 77.2 7.45 13.4 4 0.73 18 0.45 0.076 0.08 0.843 245 Zhushui River 2020-11-20 7.21 0.81 142 7.1 6.4 14.3 5 0.74 18 0.43 0.076 0.846 0.89 221 Jiaxiang Village section 2020-11-21 7.15 0.75 105 79.3 7.3 12.1 5 0.72 19 0.34 0.068 0.832 0.78 219 Junction of 2020-11-20 7.18 0.69 123 84.3 6.9 10.6 6 0.7 17 0.72 0.068 0.833 0.853 198 Xuegongcha River and 2020-11-21 7.23 0.7 142 77.1 7.36 14.3 5 0.74 18 0.43 0.076 0.834 0.68 168 Zhushui River Junction of 2020-11-20 7.24 0.78 156 6.8 6.5 14.3 5 0.73 18 0.72 0.071 0.786 0.86 213 Niuguantun River and Zhushui 2020-11-21 7.21 0.8 145 76.8 7.31 14.2 5 0.74 18 0.62 0.076 0.834 0.68 186 River 500 m upstream 2020-11-20 7.45 0.8 156 65.2 7.36 12.3 5 0.77 18 0.43 0.076 0.834 0.68 186 of Junction of Niuguantun River and Zhushui 2020-11-21 7.41 0.82 146 61.2 7.26 12.3 6 0.75 18 0.41 0.076 0.843 0.87 230 River Niuguantun River 2020-11-20 7.2 0.7 154 65.1 7.32 11.3 5 0.67 19 0.32 0.065 0.734 0.78 213 Rilan express section 2020-11-21 7.4 0.8 151 65.4 7.34 14.1 5 0.76 18 0.41 0.074 0.844 0.68 213 Junction of 2020-11-20 7.22 0.81 144 82.2 7.1 13.2 5 0.72 19 0.37 0.076 0.08 0.846 219 Niuguantun River and Zhaowang 2020-11-21 7.21 0.7 141 77.1 7.45 13.3 5 0.76 18 0.55 0.074 0.09 0.743 245 River 500 m upstream 2020-11-20 7.21 0.81 142 7.1 6.4 14.3 5 0.74 18 0.43 0.076 0.846 0.89 231 of Junction of Niuguantun River and Zhaowang 2020-11-21 7.14 0.77 104 79.1 7.1 12.3 5 0.74 19 0.32 0.067 0.834 0.74 220 River Zhaowang River 2020-11-22 7.28 0.68 121 83.3 6.5 11.6 6 0.72 17 0.74 0.078 0.843 0.843 200 Macun section 2020-11-23 7.21 0.8 141 77 7.34 14.1 5 0.76 18 0.44 0.066 0.854 0.69 169 Junction of 2020-11-22 7.23 0.74 154 6.6 6.4 14.42 5 0.76 18 0.74 0.072 0.776 0.76 214 Hongqi River and Zhaowang River 2020-11-23 7.19 0.7 144 76.8 7.41 14.2 5 0.73 18 0.62 0.076 0.833 0.67 189

Junction of 2020-11-22 7.42 0.8 156 63.2 7.33 13.3 5 0.76 18 0.42 0.074 0.844 0.67 189 Hongqi River and Jinzhuang 2020-11-23 7.38 0.8 142 60.2 7.16 11.3 6 0.7 18 0.4 0.066 0.843 0.87 219 channel Hongqi River 2020-11-22 7.19 0.8 153 65.1 7.32 11.3 5 0.67 19 0.32 0.065 0.734 0.78 210 Jiguang express section 2020-11-23 7.44 0.7 156 65.2 7.36 14.3 5 0.76 18 0.41 0.076 0.834 0.68 214 Class III of GB3838-2002 6-9 1.0 250 250 10 / 5 4 20 1.0 0.2 0.2 1.0 10000

Figure III-6: Surface Water Sampling Locations

125. Acoustic environment. Monitoring points were set at the sites of the new 60,000 m3/d water supply plant, the five water supply plants to be upgraded, two water supply pump stations, the sewage collection pump station at Jiabei New City, and 11 township level wastewater treatment stations. The applicable PRC standard is Class 2 of GB 3096-2008 Acoustic Environment Standard (60 dB during daytime and 50 dB during nighttime). The World Bank EHS standard is also applied to this Program (55 dB at daytime and 45 dB at nighttime). Generally, the monitoring results showed the acoustic environment satisfy with the PRC standards but slightly exceeded the requirement of World Bank EHS standards.

Table III-4: Baseline Noise Monitoring Results- River Urban and Rural Section Subproject Location Monitoring Results (dB) Day 1 Day 2 Daytime Nighttime Daytime Nighttime New WSP East 56.2 43.8 55.7 49.5 South 55.7 45.6 58.1 46.7 West 54.9 48.1 55.4 47.6 North 55.6 47.2 56.5 47.1 Liangbaosi WSP East 56.4 46.4 56.2 46.2 South 57.3 45.4 57.2 43.3 West 56.5 47.2 54.5 46.5 North 57.2 46.4 56.7 49.2 Laosengtang WSP East 57.2 46.2 54.6 44.6 South 54.3 42.3 56.6 47.8 West 54.9 46.2 57.6 46.4 North 55.6 47.2 55.6 46.4 Dongcheng WSP East 57.2 45.6 54.6 47.2 South 53.4 48.4 56.5 48.2 West 54.6 47.3 54.2 46.6 North 55.6 48.2 53.8 45.6 Acheng WSP East 56.2 48.6 54.4 48.2 South 51.6 48.3 56.6 47.2 West 53.4 47.2 55.8 47.2 North 57.3 46.8 51.3 46.6 Qingshan WSP East 54.6 48.5 54.2 47.2 South 55.3 43.2 56.2 45.3 West 54.7 46.2 55.8 47.2 North 57.2 45.2 56.5 46.7 Nanguolou Pump East 53.5 47.2 54.6 49.4 Station South 52.9 45.5 55.6 48.2 West 54.6 48.4 54.2 47.3 North 56.4 47.2 55.8 49.5 Yuanzhuangdong East 52.6 47.5 57.5 48.6 Pump Station South 53.5 47.1 56.4 47.2 West 57.6 49.2 57.2 43.4 North 55.5 49.4 56.4 44.5 Jiabei New City East 55.6 47.2 56.4 47.2 Wastewater Pump South 54.6 46.2 56.5 48.2 Station West 56.7 47.5 57.2 45.3 North 55.2 47.9 56.2 47.6 Dazhanglou WWTS East 54.3 47.6 55.6 45.9 South 55.6 47.6 52.3 43.4 West 53.4 48.6 55.4 42.3 North 55.3 47.3 54.8 46.5

Subproject Location Monitoring Results (dB) Day 1 Day 2 Daytime Nighttime Daytime Nighttime Zhifang Town East 52.6 47.6 54.6 45.6 WWTS South 56.5 44.5 57.2 45.7 West 57.2 46.6 56.4 48.6 North 54.7 45.6 53.4 48.1 Liangbaosi WWTS East 53.4 45.6 54.9 45.6 South 55.8 45.9 53.5 47.5 West 52.3 43.4 55.6 46.4 North 54.6 44.5 52.3 47.6 Jintun WWTS East 51.6 46.4 54.6 48.4 South 55.9 48.2 56.4 49.2 West 56.4 43.5 57.2 47.3 North 57.2 44.5 53.5 46.5 Laosengtang WWTS East 53.6 47.2 52.5 47.2 South 56.4 46.5 55.3 48.3 West 57.2 45.9 56.5 47.3 North 54.6 47.2 57.5 46.6 Menggu Town East 54.3 47.3 56.2 48.3 WWTS South 55.6 49.2 54.6 49.3 West 54.7 46.8 56.4 48.3 North 53.7 47.3 55.2 47.3 Wolongshan Street East 54.6 47.3 57.3 46.4 WWTS South 56.2 46.2 55.3 47.3 West 57.3 45.6 57.3 46.3 North 56.5 47.3 56.6 45.3 Macun Town WWTS East 56.4 47.3 54.6 45.3 South 55.8 46.2 53.8 46.5 West 54.3 43.5 52.6 45.2 North 57.3 45.5 53.7 43.8 Zhongshan Town East 56.5 45.5 54.6 47.6 WWTS South 55.4 48.3 57.2 48.2 West 53.5 47.2 55.3 47.3 North 54.6 46.5 54.6 48.3 Mandong Town East 54.6 45.6 53.4 42.3 WWTS South 56.5 47.3 54.3 45.8 West 55.2 47.8 55.6 47.3 North 52.3 46.6 54.9 46.2 Huanghai Town East 54.3 48.3 56.2 47.2 WWTS South 55.6 47.3 55.4 45.3 West 54.2 47.1 54.6 47.3 North 56.4 45.6 53.5 45.6

126. Air Quality. Baseline ambient air quality monitoring was undertaken from 9-16 November 2020 for seven consecutive days at the proposed sites for the 11 town-level WWTSs. Monitoring results are presented in Table III-5, indicating that the odor, H2S, and NH3 met the limits of EIA Technical Guideline for Atmospheric Environment (HJ2.2-2018) and Class II of Ambient Air Quality Standard (GB3095-2012).

Table III-5: Baseline Air Quality Monitoring for the Wastewater Treatment Subprojects Monitoring Points Monitoring Results (mg/m3) Odor NH3 H2S Dazhanglou WWTS <10 0.065-0.08 0.011-0.0145 Zhifang Town WWTS <10 0.063-0.09 0.0123-0.0153 Liangbaosi WWTS <10 0.065-0.075 0.013-0.0138 Jintun WWTS <10 0.063-0.078 0.0133-0.0143 Laosengtang WWTS <10 0.065-0.078 0.0135-0.016 Menggu Town WWTS <10 0.0625-0.078 0.0125-0.014 Wolongshan Street <10 0.075-0.103 0.012-0.014 WWTS Macun WWTS <10 0.065-0.080 0.013-0.015 Zhongshan Town <10 0.078-0.085 0.0142-0.015 WWTS Mandong Town WWTS <10 0.070-0.098 0.0143-0.0168 Huanhai Town WWTS <10 0.078-0.088 0.014-0.017 EIA Technical Guideline for Atmospheric Environment (HJ2.2-2018) and Class II of Ambient ≤0.2 ≤0.01 Air Quality Standard (GB3095-2012)

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Project Area of Influence and Sensitive Receptors

127. The project area of influence was defined as the total area which might be subjected to adverse impacts of the project. This was based on the locations of sensitive receptors, defined as settlements and/or environmental values that might be affected by the project construction and/or operation. The receptors (Tables IV-1) comprise (i) villages, communities and/or public buildings (e.g., schools, offices) potentially subject to construction- or operational- noise and/or vibration, air pollution, altered water quality or supply, and/or environment-related social impacts; (ii) public service facilities vulnerable to disturbance or pollution, e.g., water source protection areas and reservoirs; and (iii) vegetation, fauna habitats, and agricultural lands within 200 m of the waterways targeted for construction works.

128. The following distances were applied to identify the sensitive receptors according to the Technical Guidelines for Compilation of Environmental Impact Report Forms for Construction Projects (MEE, 2020): (i) for construction and/or operational noise – receptors within 50 m of the noise-generating source; (ii) for construction-related air quality impacts – receptors within 200 m of the source; (iii) for operation related air quality impacts-receptors within 500 m from the facility boundary; and (iv) for local ecological environment, both the surface water area and the land area within 100 m; and the footprints of the project facilities. These distances, combined with the direct construction sites, were assumed to encompass the total project area of influence. Considering the pipe works will occur in 41 villages, five towns and the urban area of Jiaxing county, it does not meaningful to compile a long list of individual sensitive receivers. The water supply pipes and wastewater collection pipes will be laid along existing urban streets and sensitive receivers will be all residents within range of dust fall and noise.

Table IV-1: Environmental Sensitive Receptors Subproject Sensitive Households Distance of the Impact Receptor Nearest Households /Direction Subproject Water source Caohe Village 49 190 m/east Noise, dust 1 conservation and water storage New WSP Caopu village will 35 72 m/east Noise, dust be relocated because of the subsidence of coal mining Subproject Nanguolou Pump Nanguolou village 16 106 m/north Noise, dust 3 Station and Nanzhang Village Yuanzhuangdong Hongqi River / 50 m/south construction Pump Station wastewater Subproject Jiabei New city Jiangzhuang 2 100 m/west Noise, dust, 4 wastewater pump Village odor station Laozhaowang 50 m/south Construction River wastewater Subproject Donglai River Qiuzhuang village 80 80 m/south Noise, dust, 6 rehabilitation odor from dredging Laoniutou River Wangqao Village 70 30 m/west and east Noise, dust, rehabilitation odor from dredging Subproject Dazhanglou Zhangxi 2 50 m/east Noise, dust, 7 WWTS Community odor Zhifang Town Zhifang East village 3 60 m/east Noise, dust, WWTS odor Liangbaosi None N/A N/A Noise, dust, WWTS odor Jintun WWTS Jintun Town 3 50 m /east Noise, dust, primary school odor Laosengtang Pingan community 2 70 m /north Noise, dust, WWTS odor Menggu Town Suzhuang village 2 50 m /east and west Noise, dust, WWTS odor Wolongshan Shilipu Village 1 100 m /north Noise, dust, Street WWTS odor during operation Macun WWTS None N/A N/A Noise, dust, odor during operation Zhongshan Town Zhongshan east 2 50 m /west Noise, dust, WWTS village odor Mandong Town Beishan village 2 60 m /north Noise, dust, WWTS odor Huanhai Town Sihuang village 1 100 m /north Noise, dust, WWTS odor Subproject Village level 45 villages All residents in the impact scope Noise, dust, 8 wastewater odor treatment facilities

B. Pre-Construction Phase

129. Prior to construction, the following measures will be implemented.

(i) Institutional strengthening. (a) The PMO will assign at least one full-time, qualified environment officer to the PMO team. This officer will lead the coordination of the EMP; (b) the IA will assign one environmental and social focal point as part of the IA team; and (c) under the loan consulting services, the PMO will hire a loan implementation environment specialist (LIEC) to provide intermittent external support. (ii) Safety measures for COVID-19. Prior to the arrival of external project personnel (e.g., workers and consultants), the PMO will implement safety procedures and screening to ensure that all staff are tested negative for COVID-19 and do not pose a threat to local human populations. This will include: (i) requirement that all project personnel is tested negative for COVID-19, (ii) external workers and consultants confirm their COVID-19 – free status to PMO prior to arrival, and (iii) project safety and sanitation measures are distributed to all personnel and are included as contractual requirements for all staff. (iii) Sediment sampling and testing. The sediment quality of Laoniutou River shall be tested to determine the destination of dredged sediments. The monitoring program is provided in Table EMP-4. (iv) Updating the EMP. The EMP will be updated as needed, including mitigation measures and monitoring. This will be the responsibility of the PMO, PIUs and LIEC. (v) Training in environmental management. The LIEC and personnel from the Hunan Environmental Protection Department and district/county EEBs will give training in the implementation and supervision of environmental mitigation measures to contractors and the construction supervision companies (CSCs). (vi) Grievance Redress Mechanism (GRM). The PMO and PIUs will implement the project GRM at least two months before the start of construction to ensure that the project communities and public services (e.g., schools and nursing homes) are well informed and provided the opportunity to discuss any concerns. This is further to the public consultations already conducted during project preparation (Section VII). (vii) Bidding document and contract documents. The project environmental management plan (EMP; Attachment 1) will be included in the bidding documents and contracts for the procurement of civil works, goods and services. All contractors and subcontractors will be required to comply with the EMP. (viii) Contractor obligations. Contractors, in their bids, will respond to the environmental clauses in the bidding documents for EMP requirements. Prior to construction, each contractor will develop a site EMP, based on the attached project EMP, and assign at least one person responsible for environment, health, and safety (EHS). The site EMP shall include the following: (a) surface water protection; (b) spill control and management; (c) site drainage and soil erosion protection; (d) health and safety; and (e) temporary traffic management. The site EMPs will be submitted to the environmental officer of each PMO for approval, with support of the local EEB.

C. Construction Phase

130. Key issues anticipated from the project activities during construction phase include: dust and gaseous dispersion, noise, construction wastewaters; temporary traffic diversion; soil erosion; worker and community health and safety. These risks are assessed as follows. Measures to avoid, minimize, and/or mitigate these risks are described and are included in the project EMP (Attachment 1).

1. Soil Erosion and Spoils

131. Construction activities, such as excavation and filling activities, may lead to surface erosion. The most vulnerable soil erosion areas in the construction site include excavation sites for pipe trenches, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. Embankment construction may contribute to bank erosion and excessive suspended particles (SS) and sedimentation of the Donglai River and Laoniutou River. Erosion could also occur after completion of construction, where site restoration is inadequate. Soil contamination could result from the inappropriate transfer, storage, and/or disposal of dredged sediment, chemicals, (e.g., gasoline, diesel, acetylene, and lubricant), and solid wastes. Finally, construction activities may generate surplus spoil.

132. The major earthworks occur in the water storage reservoir and dredging of Laoniutou River. The construction of water storage works requires 8.268 million m³ of excavation works and filling of 728,100 m3. As of 2016, Liangbaosi has 4035.22 ha subsidence area. The 7.54 million m³ of spoil could be used for land levelling and rehabilitation of the subsidence area. Laoniutou River will involve dredging of 190,000 m3. The sediment monitoring is arranged at pre-construction phase when there is more information on dredging depth and location. The sediment monitoring results will be assessed against the soil pollution risk control standard (GB36600-2018) and Australian sediment risk control standard (as international standard) for different usage. If beyond the threshold, the sediment will be stabilized then disposed at sanitary landfill site. If the sediment quality satisfies both PRC standard and Australian standard for greening, the sediments will be reused for landscaping along the riverside.

133. The installation of water supply pipes will generate 33,372 m³ spoil. The installation of stormwater and sewage pipes will generate 42,922 m³ spoil. These are the total amount from various work sites in the project villages, Jiabei New City and old downtown of Jiaxiang County. In accordance with PRC procedures, the surplus project spoil will be disposed as follows: (i) final spoil volumes will be recalculated during detailed engineering designs and monitored during construction, (ii) county and township construction bureaus will identify the opportunity for reuse of the surplus spoil in other projects, and (iii) remaining surplus spoil will be disposed in the existing, approved spoil disposal sites of each township.

134. The risk of soil erosion will be mitigated through typical good construction practice as set out in the WBG’s EHS Guidelines, erosion controls and site maintenance, as follows. (i) The flood season usually occurs from April to September. No construction will be conducted in these months. (ii) Small, temporary structures for flow diversion will be established during the construction of embankments of Laoniutou River and Donglai River and will be designed based on a 1/5-year flood recurrence interval. These structures will be removed upon completion of works. (iii) At the construction site, the potential for the stormwater runoff will be assessed and appropriate stormwater drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to control topsoil runoff. (iv) Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. (v) During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. (vi) Define spoil disposal sites and borrow pit locations, in the construction-tender documents.

(vii) Temporary spoil storage sites will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. (viii) Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to an approved spoil disposal site. (ix) Spoil and aggregate piles will be covered with landscape material and/or regularly watered. (x) Waste construction material such as residual concrete and asphalt will be properly handled for reuse or disposal. (xi) Construction and material handling activities will be limited or halted during periods of rains and high winds. (xii) Pipelines will be installed and backfilled in a sequenced section-by-section approach. Open excavation areas during trenching activities will be minimized, and appropriate construction compaction techniques utilized. (xiii) Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. (xiv) Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass.

135. Measures to minimize soil contamination. To reduce the risk of soil contamination from construction machinery, contractors will do the following. (i) Store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas. (ii) Remove all construction wastes from the site to approved waste disposal sites. (iii) Establish emergency preparedness and response actions. (iv) Provide spill cleanup measures and equipment at each construction site. (v) Train contractors and crews in emergency spill response procedures.

2. Wastewater

136. Construction wastewater. Wastewater will be produced from the maintenance and cleaning of mechanical equipment and vehicles, wastewater from pipeline cleaning, and equipment cleaning. It is estimated that each construction site will generate an estimated 1.5 m3/d construction wastewater, with suspended solids (about 300 mg/L) and petroleum (20 mg/L).

137. Wastewater from construction workers. Peak workforces are estimated to range from 10 to 200. Daily domestic wastewater discharge production is estimated as 0.1 m3 per worker per day. The pollutant concentrations of CODCr, BOD5 and NH3-N in the domestic wastewaters from the construction workers are assumed to be 300 mg/L, 150 mg/L and 40 mg/L, respectively. The estimated volumes of construction and domestic wastewater are shown in Table IV-2. Inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from the drainage of washing construction equipment and vehicles, and oil- containing wastewater from machinery repairs) may cause soil or groundwater resources contamination.

Table IV-2: Waste Generated During Construction Domestic Number of Workers at Wastewater Domestic Solid Subproject Peak Construction (m3/d) Waste (kg/day) Water source conservation and 200 20 100 water storage Water supply pipes 50 5 25

Domestic Number of Workers at Wastewater Domestic Solid Subproject Peak Construction (m3/d) Waste (kg/day) 60,000 m3/d WSP 100 10 50 Upgrading township WPSs and 50 5 25 two pump stations Water supply pipes 50 5 25 Jiabei New City wastewater pumping station and collection 50 5 25 pipes Separated drainage works in 50 5 25 old urban areas Donglai River and Laoniutou 50 5 25 River rehabilitation Rural wastewater collection and 1500 150 750 treatment

138. To prevent pollution of water resources, the following mitigation measures and construction good practice as set out in the WBG EHS General Guidelines will be implemented. (i) Most of the workers will live in rented apartments in the towns and villages; therefore, the majority of domestic sewage will be discharged and disposed of through the existing municipal sanitation systems. (ii) Labor camps, fuel storage, machinery maintenance workshop and vehicle cleaning areas must be stationed at least 500 m away from waterways. (iii) Equip machine wash-down sites with water collection basins and sediment traps. (iv) Install oil-water separators before the sedimentation tank for oily wastewater treatment. (v) Equip all sites for washing of construction equipment with water collection basins and sediment traps. (vi) Install portable toilets at work sites and on-site wastewater pre-treatment systems for worker camps along with maintenance protocols. (vii) Construction wastewater generated during the construction phase will be discharged to the municipal sewer system. All discharged construction wastewater will meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the nearby WWTP. (viii) All necessary measures will be undertaken to prevent construction materials and waste from entering the drainage system. (ix) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. (x) Oil traps are provided for service areas and parking areas, and oil-water separators are installed for oil-containing wastewater; (xi) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance, and washing shall be allowed so as to reduce wastewater generation; (xii) Storage facilities for fuels, oil, and other hazardous materials are within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits; (xiii) The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

3. Solid Waste

139. Municipal solid waste. An estimate of 0.5 kg/day per worker of domestic waste will be generated from construction workers (Table IV-2). Inappropriate waste storage and disposal could affect soil, groundwater and surface water resources, and hence, public health and sanitation. The following solid waste management measures and construction good practices will be implemented. (i) Littering by workers will be prohibited. (ii) Wastes will be reused or recycled to the extent possible. (iii) All other waste will be collected in on-site waste containers. (iv) The municipal solid waste will be cleaned by the sanitation department and transported to Jiaxiang Everbright waste to energy incineration plant, in accordance with PRC regulations and requirements for solid waste collection, transport, and disposal. (v) There will be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. (vi) Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil that remain on the site after construction.

140. Construction solid waste. The construction solid waste includes debris, sand, stones, broken brick, wood waste, scrap metal, scrap steel and other debris. If not promptly transported off-site, it will generate dust during windy weather and safety hazards. The transport vehicles need follow a specified route and time and should be covered by tarp to prevent spill. The solid waste during construction is not expected to contain toxic or harmful substances and can be reused if possible. Contractors will be required develop solid waste transport and disposal plan as part of their CS-EMP, in consultation with the Jiaxiang county Housing and Urban-rural Development Bureau.

4. Air Pollution

141. The pollution sources which affect the air quality during the construction period mainly come from the fugitive dust generation in and around the proposed sites, the exhaust gas of transportation trunks, and construction machinery (gaseous CO, CH, and NO2) and decoration of the office building of the new WSP. The quantity of dust generated will depend on wind, humidity of the material and earth, and state of site. For the project area, it is estimated that under general onsite conditions (average wind speed 2.5 meters per second, and average humidity of 80%) dispersion distance is 100 m downwind without mitigation measures. For dust generated by transporting earth and other construction materials, the impact zone may exceed 60 m on each side of the route.

142. Major water supply pipes will be laid along valley floors, roughly following the existing road easements and natural drainage lines; risks of dust impacts to settlements are assessed to be low as the works will be in isolated sites.

143. The following measures will be taken to control fugitive dust from the construction site: • Dust-prone materials such as residual soil and sand at the construction site shall be covered with dust-proof nets (cloths) and sprayed. Cement and other fine materials shall be stored in the warehouse or fully covered. The loading height of residual soil, sand, and construction waste shall not exceed the guardrail of the vehicle.

• Install perimeter fences at each site prior to construction. The fence shall be at least 2 m high. • Spray water at least twice a day where fugitive dust is generated. • Cover trucks carrying earth, sand, or stone with tarps or other suitable covers to avoid spilling and dust generation. • Undertake regular air quality monitoring around the construction site in accordance with the monitoring plan. • Regularly consult the nearby residents to identify concerns and implement additional dust control measures, as necessary.

5. Noise and Vibration

144. Construction will involve excavators, rollers, bulldozers, scrapers, dredgers, concrete- mixer, trucks and other heavy machinery. Noise emissions will not include rock-crushing, as any rock materials will be purchased off-site by contractors and transported to the sites. Noise will be temporary and localized. Estimated construction noise values (at 5 m distance from the machinery and vehicles) are shown in Table IV-3.

Table IV-3: Testing Values of Construction Machinery Noise

No. Machine Type Maximum Sound Level Lmax (B) 1 Excavator 85-95 2 Concrete mixer 86 3 Bulldozer (100 horse-power) 78-96 4 Scraper 85-95 5 Heavy truck 88-93 (speed up), 84-89 (steady speed) 6 Medium-duty truck 85-91 (speed up), 79-85(steady speed) 7 Drilling machine 96 8 Wheel loader 85-92 9 Vibrating roller 86 10 Two-wheeled two-vibrating roller 81 11 Generating set 88-92

145. Estimating noise levels. Construction equipment is a point sound source. The predictive model applied in this project is: Ri Li = L0 − 20lg − L R0 Where, Li and L0 are equipment noise sound levels at Ri and R0, respectively. ΔL is additional diffusion attenuation produced by barriers, vegetation and air. As for the impact of multiple construction machinery on a certain future position, sound level superposition is needed:

0.1Li L =10lg10

146. Prediction results. Noise levels at different distances were derived after calculating the impact scope of equipment noise during construction, as defined in Table IV-4. The PRC Standard of Noise Limits for Construction Sites (GB12523-2011, revised) specifies the noise limit in Class II areas as 70 dB (A) during daytime and 55 dB (A) during nighttime.

Table IV-4: Noise Values of Construction Machineries at Different Distances dB (A) Distance to Machinery Machinery Name 15m 20m 40m 60m 80m 100m 130m 150m 200m Excavator 71 69 63 59 57 55 53 51 49 Bulldozer 72 70 64 60 57 56 54 52 50 Loader 61 59 53 49 47 45 43 41 39 Heavy truck 69 67 61 57 55 53 51 49 47 Drilling machine 72 70 64 60 57 56 54 52 50 Concrete-mixer 71 69 63 59 57 55 53 51 49 Applicable Standard 70 (daytime) (GB12523-2011) 50 (nighttime)

147. These values were compared with the locations of the sensitive receptors (Table IV-1) to see which communities would be within 40 m of construction works i.e., which would exceed daytime noise levels of 70 dB(A), the threshold applied to this project under PRC standard GB12523-2011. WBG’s EHS General Guidelines does not have equivalent noise emissions standard at facility/site boundary but sets noise level at receptor (see Table I-7) and requires the noise impacts should not exceed the levels presented in Table I-7 or result in a maximum increase in background levels of 3 dB at the nearest receptor location off-site. To be conservative, no attempt was made to distinguish between noise emissions from different types of construction activity, i.e., any works within 40 m of residences were assumed to generate noise levels exceeding the threshold and so require management. Extended exposure to such noise levels could cause physical hearing injury to residents and workers, in addition to general stress and disturbance.

148. The following measures will be implemented to comply with PRC construction site noise limits and to protect sensitive receptors (Table IV-1). (i) Ensure that noise levels from equipment and machinery conform to the PRC standard of GB12523-2011. (ii) Properly maintain construction vehicles and machineries to minimize noise. (iii) Apply noise reduction devices and methods for high noise equipment operating within 200 m of the sensitive sites, e.g., schools, villages, residential areas. (iv) Locate high-noise activities (e.g., rock crushing, concrete-mixing) >1 km from sensitive areas. (v) Prohibit operation of high-noise machinery, and movement of heavy vehicles along urban and village roads, between 20:00 and 07:00. (vi) Take special caution at construction sites that are close to such sensitive sites as schools and hospitals. When construction activities are unavoidable during the school seasons, the use of heavy equipment will be restricted to weekends and non-class hours. (vii) Place temporary hoardings or noise barriers around noise sources during construction. (viii) Monitor noise at sensitive areas at regular intervals. If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation. (ix) Conduct regular interviews with residents/villagers adjacent to construction sites to identify noise disturbance. Community feedback will be used to adjust the work hours of noisy machinery. (x) For the households that will be within 40 m of construction works, particular attention will be provided. This will include: (a) follow-up consultations with all of

these households prior to the start of any works, to specify the exact planned dates and schedule of works, nature of works, equipment to be used, safety measures, and public access around the works during construction; (b) installation of noise barriers to reduce as much of the emissions as possible, and/or installation of additional layers on the windows of the affected homes, pending assessment of the most technically effective method and feedback from the community consultations; (c) agreement on the duration of daily works; and (d) provision of temporary housing if required. (xi) Construction activities in schools will be taken up during the holidays or outside the school hours. (xii) Conduct checks for cracks at sites before and after vibration-inducing works, particularly to the residents alongside the trench alignments of pipe installation.

6. Ecological Impacts

149. As established during environmental baseline assessment, no area of the project site is within a legally protected site or a site proposed for protection. The nearest natural reserve, Nansi Lake Provincial natural reserve, is about 40 km to the project area. The project site does not include critical habitats with recognized critically endangered or endangered species. No rare and endangered species were identified and recorded in the project area during the domestic EIA process. The Donglai River and Laoniutou River cannot sustain aquatic life of ecological significance or high biodiversity due to its polluted state. Flora to be affected in project area includes mostly fruit trees, shrubs, common seasonal crops, and weeds. The project will not take any forest land. The project construction will need to cut 564 fruit trees in the cultivated land owned by the local villagers, including 167 seedlings, 144 at immature stage (diameter<3cm), 117 at early fruit stage (diameter<6 cm) and 136 at full fruit stage (diameter>6cm), and take 2836 mu crops, which will be compensated according to the Compensation Rate for Ground Attachments and Young Crops Affected by Land Acquisition of Jining City (effective since December 29, 2017, released by Jining Municipal Government).29

150. Greening measures will also be taken for the spoil sites. Contractors will be required to implement the following measures to protect biological resources within the project area: (i) Protect existing vegetation near construction sites; (ii) Properly backfill, compact and re-vegetate pipeline trenches after pipeline installation; (iii) Protect existing trees and shrubs during water supply plant, wastewater treatment stations and pipeline constructions; where a tree has to be removed or an area of original vegetation disturbed, replant trees and re-vegetate the area immediately after construction; (iv) Only native species of local prevalence will be used for re-vegetation; and (v) Identify, demarcate, and protect sites where small animals, reptiles, and birds of common species live such as vegetated roadside areas, trees, inner areas of bridges and river riparian zones, etc. with the support of the loan implementation environmental consultant.

7. Community and worker health and safety

151. Traffic congestion and risk of accidents in the project area will increase with construction

29 Resettlement Plan (accessible form the list of linked documents in Appendix 2 of the report and recommendation of the President).

71 traffic, causing temporary inconvenience to traffic, residents, commercial operations, and institutions, especially during the excavation of trenches for pipe laying. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply and drainage, as well as to underground power cables and communication cables (including optical fiber cables). Contractors will implement the following EMP measures to reduce risks to community health.

152. Traffic management. A traffic control and operation plan will be prepared by the contractor, to be approved by the local traffic management administrations before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed.

153. Excavated sites and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. Open trenches will be fenced and cordoned off to prevent access by the general public and reduce the risk of persons accidentally falling in. Pipe jacking method will be used for the sections cross roads to reduce damage to roads. The construction activities shall be properly scheduled to minimize the duration of construction.

154. Information disclosure. Villagers, residents and businesses will be informed in advance through media and information boards at construction sites of the construction activities, given the dates and duration of expected disruption.

155. Construction site protection. Clear signs will be placed at construction sites in view of the public, informing people about the project GRM, and warning people against potential dangers such as moving vehicles, hazardous materials, and excavations, and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate. For works sites close to sensitive receptors (including schools and hospitals), additional effort will be made to inform these facilities of the presence of the nearby works, the hazards posed (e.g. the risk of children accessing works sites and falling in trenches), and the need for improved supervision during works.

8. Occupational Health and Safety

156. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on water, fire hazards, chemical hazards such as toxic fumes and vapors, and others. Contractors will implement the following precautions to protect the health and safety of their workers: (i) Each contractor will undertake a health and safety risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as set out in WBG’s EHS guidelines for health and safety. (ii) Each contractor will appoint an environmental health and safety manager to implement the construction phase EHS plan. (iii) Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures, and make available emergency response facilities such as firefighting, first aid and rescue equipment to address risks associated with fire, drowning and accidents. (iv) Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and

storage, handling and disposal of hazardous waste and the working near water bodies. The induction will be conducted before construction, and no worker is allowed on site without induction. (v) Ensure that all equipment is maintained in a safe operating condition. (vi) Provide appropriate personal protective equipment (PPE) to workers and life jackets for workers working near water bodies. (vii) Provide procedures for limiting exposure to high noise or high temperature working environments in compliance with PRC occupational exposure limits for hazardous agents in workplace Part 2: physical agents (GBZ 2.2-2007 and EHS Occupational Health and Safety Guidelines). (viii) Ensure regular safety meetings with staff and carry monthly safety audits. (ix) Core labor standards will be implemented. Civil works contracts will stipulate priorities to: (i) employ local people for works; (ii) ensure equal opportunities for women and men; (iii) pay equal wages for work of equal value and pay women’s wages directly to them; and (iv) not employ child or forced labor. Specific targets for employment have been included in the project gender action plan. (x) COVID-19 health and safety plan. The project EMP includes a COVID-19 health and safety plan to address COVID-19 health risks. The plan will be prepared in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. The plan will include (i) measures to record the locations that workers have visited/lived immediately before and during project work; (ii) schedules for disinfecting/cleaning offices, yards, stores and labor camps; (iii) measures to implement temperature checks and other health checks on-site; (iii) physical distancing measures, particularly in worker camps; (iv) requirements for mandatory use of personal protective equipment such as facemasks, and provision of handwashing stations, hand sanitizers, and other appropriate protective measures; (v) how workers and residents living near project sites will be provided with information to protect themselves from COVID-19; (vi) procedures to be adopted in the event a worker is suspected of having contracted COVID-19; and (vii) other COVID-19 prevention and control measures appropriate for the local context. (xi) The construction camp shall be set complying with the Construction Site Environment and Hygiene Standard (JGJ146-2013).

9. Physical Cultural Resources

157. No cultural heritage or archaeological sites are known within at least 10 km of the project areas. However, construction activities have the potential to disturb unknown underground cultural relics. The EMP mitigation measures include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The local Cultural Heritage Bureau, PMO, and implementing agency will be promptly notified. Construction will resume only after investigation and with the permission of the appropriate authority. The clause for protection of unknown underground cultural relics will be included in construction contracts.

D. Operation Phase

1. Component 1: Water Supply

158. Noise. The main noise of this subproject will come from operation of the constructed new WSP, from the noise of pumps, fans, air compressors and other equipment. The equipment is installed indoors or in the basement. The noise source intensity is between 80 and 90 dB (A). The

73 following noise prevention measures will be adopted: (i) the use of low-noise equipment, (ii) regular O&M of facilities to ensure efficient and stable operation, and (iii) the use of sound insulation materials around and within the water pump rooms. These measures, which are standard for all such facilities in the PRC, combined compliance with minimum distances from the noise emissions to the facility boundary, will ensure compliance with the Class 2 standard of the Environmental Noise Emission Standard for Industrial Enterprises (GB12348-2008).

159. Wastewater. About 30 staff will be employed in the new WSP, in a three-shift work system. Staff will not live onsite. Wastewater will comprise (i) domestic wastewater (sewage) generated by staff, and (ii) wastewater generated during the water treatment process. The required daily water supply is estimated to be 40 L/person for 30 staff and in total, 1.2 m3/day (438 m3/a). For the domestic wastewater, the production coefficient of domestic sewage is estimated based on 80% of the water consumption, and the domestic sewage production is 0.96 m3/d (350.40 m3/a). The domestic sewage will be treated and disposed as follows: (i) discharged first into an on-site septic tank and then (ii) discharged into the municipal sewage network and final treatment at the Liangbaosi WWTS to be constructed under this Program. This WWTS has a daily treatment capacity of 1,000 m3/d. The additional demand placed on the WWTP by operation of the water supply plant will present about 11.37% of its operational capacity. The WWTP’s capacity to receive and treat this load is confirmed.

160. For the wastewater generated from the water treatment process: (i) supernatant water generated by separating the solids in the untreated water (e.g., silts) will be pumped back to mix with the raw water and enter the water treatment process again. During the treatment process (screening and sedimentation), there is no new pollutants, so the quality of supernatant water will not be worse than the raw water and it is safe to back to the water treatment process.

161. Domestic solid waste and sludge. Domestic waste is estimated to be 0.5 kg per person per day and in total, about 15 kg/d (5.48 t/a). Sludge will be generated during water treatment (during the processes of filtration, in the sedimentation tank, and wastewater treatment in the on- site septic tank). The amount of sludge generated is estimated to be 3.64t/d. The sludge content produced from water supply plant is confirmed to be safe for disposal in general sanitary landfill sites. The solid waste will be transported to Jiaxiang County Everbright waste to energy plant site by the sanitation department. The sludge will be shipped to Jiaxiang Everbright Waste to Energy Plant.

162. Hazardous materials handling and disposal. Operation of the water supply plant will generate chlorine dioxide gas. Under established design and operational procedures, this is passed into the water under treatment, to prevent leakage of chlorine gas. Over time, the gasket of the valve connection parts may become worn or damaged, resulting in leakage of liquid chlorine. This risk will be addressed as follows: (i) routine inspection of machinery, and (ii) the installation of a chlorine leakage alarm and rapid flushing device in the chlorine and chemical dosing room of the plant. If such leak occurs, the alarm system, which is automated, will be activated. The alarm is set to be activated at a concentration of 1 ppm (0.3158 mg/Nm3). Upon activation, the chlorine leakage absorption treatment device will automatically operate to collect and absorb the leaked chlorine gas. Detailed engineering design of the plant will include (as required under PRC regulations), and emergency response plan. The plan will describe procedures to inform staff and visitors about the characteristics of chlorine dioxide, describe potential health hazards, and procedures for emergency response and evacuation.

2. Component 2: Wastewater Collection and Treatment

163. This subproject will construct 11 township level WWTSs with capacity ranges from 800 to 1100 t/d and 41 village level small scale wastewater treatment facilities with capacity ranges from 10 to 220 t/d.

164. Noise. Noise emissions from the sewage treatment facility of this subproject will mainly come from operating equipment of the 20,000 m3/d Jiabei New City wastewater pump station and WWTSs i.e., the submersible sewage pumps, submersible mixers, and fans. The noise source strength will be about 70 to 85 dB (A). Submersible sewage pumps and submersible mixers are mainly submersible installations, and the noise transmitted to the external environment after the sound insulation of the water body will be greatly attenuated.

165. Solid waste. The solid waste generated will be grit slag and sludge. The amount of grid slag can be calculated at 0.1kg per 1m3 of sewage. The estimated slag amount is 1.206 t/d. The general grid slag and general grit will be collected and sent to the Jiaxiang County Everbright waste to energy plant. The general residual sludge will be regularly cleaned and transported by the fecal suction truck.

166. Water pollutants reduction. The project designs will result in a reduction of 108.5 t/a of CODCr and 10.86 t/a of ammonia nitrogen (Table IV-5).

Table IV-5: Pollutants Reduction from Rural Wastewater Treatment Facilities Generation Effluent Treatment Concentration Discharge Reduction Discharge Pollutants Amount Concentration Facilities (mg/L) (t/a) (t/a) Standard (t/a) (mg/L)

Township CODCr 102.6 300 17.1 50 85.5 WWTS Class 1 of 3 Shandong Province (9,500 m /d) NH3-N 11.97 35 3.42 10 (15) 8.55 Rural Domestic Village 50 Sewage Treatment wastewater CODCr 27.6 300 4.6 23 Facilities Water treatment Pollutant Discharge facilities 10 (15) Standard NH3-N 3.23 35 0.92 2.31 (2560 m3/d)

167. To assess the impacts on the receiving water body, two scenarios, i.e., in normal operation state and in the case of operation failure in the worst conditions (dry season) were modeled taking the Wolongshan Street wastewater treatment station as an example considering its capacity (1100 t/d) and information available. The modeling results, as presented in Table IV-6, indicating that after mixing with the river water, the concentrations of COD and ammonia nitrogen will meet with the Category III of surface water quality standard (GB3838-2002).

Table IV-6: Predicted pollutant concentration tailwater discharge during the dry season Distance from the Normal operation (mg/L) Operation failure (mg/L) Outlet (m) COD NH3-N COD NH3-N 0 6.18 0.174 6.69 0.201 10 6.17 0.171 6.68 0.201 100 6.07 0.171 6.66 0.200 200 6.05 0.170 6.55 0.200 500 6.01 0.170 6.50 0.199 1000 5.94 0.168 6.42 0.198 Category III 20 1.0 20 1.0

168. To minimize the risk of operational failure, and to ensure timely response in the event of operating issues (e.g., power failures or damage) that affect operations, the following measures will be taken. (i) Regularly clean the sewage network and inspection wells to ensure the long-term smoothness of the pollutant receiving system, and at the same time, reduce the amount of SS produced during heavy rain. (ii) Regularly clean the grid well, regulating pool and other systems to ensure that each process can meet the expected treatment effect; (iii) The facility operation and maintenance unit shall conduct regular sampling and testing on influent and effluent and keep records. The facility operator shall develop an emergency plan. If breach of the effluent discharge standard is detected, the technician shall report to the local environmental authority and director immediately and take water sample of each process unit to analyze the reason of the failure and develop technical solutions. If serious non-compliance is detected, the outlet valve will be closed and the wastewater will be stored at the regulation tank temporary until the problem resolved. (iv) The facility operation and maintenance unit shall install automatic online monitoring facilities for monitoring the CODCr and NH3-N of influent and effluent in real-time, and the on-line monitoring system shall be connected with the local environmental protection department.

169. Odor. The risk of odor-related disturbance was assessed based on modeling for the largest WWTS, the Wolongshan Street WWTS with a capacity of 1100 t/d. The results (Table IV- 7) indicate the maximum ground concentration will only represent 0.87% of the Ambient Air Quality Standard i.e., low impact. In addition, the risk of odor-related impacts is low due to (i) the small size of the plants, (ii) the dispersed distribution of the plants, and (iii) the enclosed designs of the plants, to reduce the fugitive emission of malodorous gas.

Table IV-7: Predicted Air Pollutant Concentration of the Wastewater Treatment Facilities Maximum ground concentration Concentration Ratio of the Distance Pollutant Source Pollutants (mg/m3) standard (%) (m) NH3 0.00175 0.87 90 Wolongshan Street WWTS H2S 0.00007 0.68 90

170. The following measures will be taken to further eliminate the impact of odor: (i) Plantation of tall tree belts (long cypress, poplar, oleander, willow) around the sewage treatment facility to reduce the impact of odorous gases; (ii) Strengthen management during the operation of sewage treatment facilities. The sewage treatment facilities are prone to breeding mosquitoes and flies in summer. (iii) Strengthen management during the operation of the sewage treatment facility, and the generated slag and sludge should be transported out in time to minimize the storage time in the station; the odor-causing equipment should be washed frequently. (iv) Cover and seal the grille, adjusting tank and sludge tank, and add chemicals to the sludge tank to eliminate the odor.

E. Indirect, Induced, and Cumulative Impacts

171. Indirect impacts are adverse and/or beneficial environmental impacts that cannot be

76 immediately traced to a project activity but can be causally linked. Induced impacts are adverse and/or beneficial impacts on areas and communities from unintended but predictable developments caused by a project which may occur later or at a different location. Cumulative impacts are the combination of multiple impacts from existing projects, the proposed project, and anticipated future projects that may result in significant adverse and/or beneficial impacts that would not be expected in case of a stand-alone project.30

172. Indirect impacts. These include (i) the generation of more wastewater, due to increased water use resulting from increased water supply after completion of the water supply facilities, This risk is considered low: (i) water allocation quantities have been assessed and confirmed to be sufficient to meet the project needs; (ii) the project interventions will result in improved water use efficiency through the provision of piped water system; (iii) the project treatment designs and standards will ensure that highly treated water is discharged into the local rivers that is one to three classes higher than the current untreated wastewater discharged to the rivers; (iv) the design capacity for the water supply and treatment plants and pipelines are based on population growth projections for Jiaxiang County and its development master plan.

173. Induced impacts. A likely induced impact is that reduced soil erosion and improved flood protection will result in increased agricultural production and urbanization. These impacts are expected to be more positive and improve socio-economic conditions in the region.

174. Cumulative impacts and benefits. The project will directly improve the living conditions of a large number of residents, as follows: (i) 13 towns have water sources other than groundwater; nonrevenue water reduced from 26.33% (2020) to less than 17% and reduction in the volume of groundwater extraction for domestic and industrial water use from 30 Mm3/yr to <25 Mm3/yr; (ii) wastewater services expanded and improved with smart technology. 45 villages will have improved or new wastewater management systems (2019 baseline: 0). The number of people in rural townships connected to a reticulated sewerage system with sewage treatment will increase from 13,000 to 137,000 (2021 baseline: 13,000).

F. Climate Change

175. The climate risk adaptation assessment conducted for the program indicated that the mean annual temperature in Jiaxiang will increase 1.5℃(13.9 up to 15.4℃). There is an obvious increase in the frequency of high intensity rainfall events over recent decades. The total annual rainfall will experience a modest 5-7.5% increase, rainfall volume will arrive in fewer rain events with a higher frequency of heavy precipitation. Access to surface water for treatment and production of approximately 60,000 m3/d of potable water has meant that there is a corresponding reduction in pump energy associated with groundwater extraction. This is estimated to be 1.5 million kWh per annum, corresponding to annual reduction of approximately 800 tons of CO2.

176. A package of six adaptation strategies were recommended from the climate risk assessment which orient the objectives and functions of the sector development program towards a more resilient pathway for development and implementation. The six Climate Adaptation Strategy are: (i) diversify water sources for the County and protect water resources including the water quality improvement of surface water and the replenishment of depleting groundwater resources;

30 ADB. 2011. Sourcebook for Safeguard Requirement 1: Environment. Manila.

(ii) demand-side water management including water recycling for non-potable water use, and efficient use of agricultural water; (iii) fit-for-purpose water utilization, particularly the promotion of an industrial ecology approach to cluster industries, domestic, agricultural and local water treatment facilities where the by-product of one activity is used as a resource for another; (iv) integrated flood resilience approach encapsulates the whole-of-water-cycle flood management, integration of urban and rural flood management as well as a regional dimension to improve flood management in the wider Nansi Lake catchment; (v) healthy waterways initiatives to improve the ecological health of the county’s canals and surface water bodies, including regulating and diversion of effluent from wastewater treatment plants and industry, and the use of wetland features to extract nutrients, enhance circulation and reduce stratification; and (vi) integrated urban-rural utility enabling integrated water services and integrated water resources management.

177. These six strategies formed the basis on which the Jiaxiang Integrated Water Management Plan (IWMP) was developed. The IWMP is the cornerstone of the Policy Based Lending component of the sector development program.

V. ANALYSIS OF ALTERNATIVES

A. No Project Alternative

178. The outcome of the program would be sustainability, affordability, and safety in water and wastewater management services improved. Without this program, this outcome could not be achieved so the no project alternative is not considered.

B. Alternative

1. Component 1: Water Supply

179. Water intake. From the technical and economic comparison between the wet type and dry type, it can be seen that dry type is widely used in the municipal industry, with abundant experience in engineering design and operation management, and the height of the pump room is about 3.2 m lower than the wet type so that the dry type of pump is selected.

Table V-1: Comparison of water intake pump Option Option 1: Wet type Option 2: Dry type Item 1. It is widely used in municipal water supply engineering design, with well- 1. The investment is lower than proven design, operation and that of option two. management experience; Advantages 2. The pump house working 2. The ground building of the pump house room is above ground. is 3.2 m lower than for the wet type; 3. Dry-type pumps are easy to operate, maintain and manage. 1. Because the motor and pump drive shaft are vertical, the ground building of the pump room is 1. The investment is higher than that of 3.2 m higher than option two. option one. 2. The wet layout is used,

Disadvantages which makes the pump operation, 2. The semi-basement pump room has a maintenance and management poor working environment and troublesome. demanding ventilation requirements. 3. Due to the heavier equipment pieces, the lifting equipment is larger.

180. Mixing method. Considering the small scale of the works and the relatively low technical skills requirement during operation, the tube mixer is selected.

TableV-2: Comparison of Mixing Methods Option Option one Option two Item (Tube mixer) (Hydraulic mixer) Advantages 1. The mixing effect is better. 1. It is widely used in municipal water supply 2. There are many domestic engineering design, especially suitable for citations, which are not large-scale water treatment. limited by the scale of 2. The mixing is uniform, and it can be built treatment together with the flocculation tank, with good 3. The structure is simple flocculation effect. with a small footprint. 1. The equipment on the 1. It covers a large area. market varies, which may 2. There are many mechanical failures with high easily cause quality maintenance costs. When an accident occurs, Disadvantages problems. it must be shut down for maintenance. 2. The head loss is relatively 3. Maintenance technical requirements are large. stringent.

181. Flocculation methods. From the perspectives of total investment and operation management, folded plate flocculation is chosen as the flocculation method. Two ponds in the water purification plant will meet the treatment requirements for variations in water quantities and minimize the impact of water quantity changes on the effect of flocculation.

Table V-1: Comparison of Flocculation Methods Option one Option two Option three Option (Hydraulic folded plate (Horizontal axis mixing (Hydraulic grid Item flocculation tank) flocculation tank) flocculation tank) 1. Good flocculation 1. Short flocculation 1. Short flocculation effect; time; time; 2. Small head loss; 2. Relatively good Advantages 2. Good flocculation 3. It can adapt to flocculation effect; effect. changes in water 3. Simple

quality and quantity. construction. 1. More complicated structure; It requires mechanical Changes in water Disadvantages 2. Changes in water equipment and frequent quantities affect the quantity affect the maintenance. flocculation effect. flocculation effect.

182. Sedimentation methods. The construction cost of the inclined tube sedimentation tank is slightly higher than that of the advection sedimentation tank. The operation and management of the advection sedimentation tank is more convenient, and the sedimentation effect is stable. The advection sedimentation tank is selected.

Table V-2: Comparison of sedimentation methods Option Option one Option two Item (Advection sedimentation tank) (Inclined tube sedimentation tank) 1. Lower cost; 2. Convenient operation and 1. High precipitation efficiency; management; simple construction; Advantages 2. Small size of tank; small area 3. Strong adaptability to turbidity of raw occupied water, great potential and stable effect of treatment.

Option Option one Option two Item (Advection sedimentation tank) (Inclined tube sedimentation tank) Disadvantages 1. Large area occupied; 1. Inclined tubes are liable to age and 2. The mechanical sludge removal need to be replaced regularly; equipment needs to be maintained. 2. The adaptability to turbidity of raw water is worse than that of advection sedimentation tank; 3. When the turbidity of the raw water is high, it may cause high turbidity of the effluent.

183. Filtration. For the flap filtration tank, the cost of equipment purchase is relatively high, and the project cost is difficult to control. For the multi-layer filter filtration tank, the requirements for filter media are relatively high, resulting in higher cost. With these factors considered, a V-type filter is selected.

Table V-3: Comparison of filtration methods Option three Option Option one Option two (Multi-layer filter filtration Item (V-type filtration tank) (Flap filtration tank) tank) Advantages 1. Good backwashing 1. Drainages slow to 1. Large capacity for holding effect; avoid loss of filter pollutants; 2. Stable operation; material; 2. Relatively high filtration even water 2. The backwashing speed can be used; distribution; effect is relatively 3. Relatively good water 3. High degree of good for filter quality automation; media with large convenient amount of management; pollutants. Long 4. Use of sand filter backwash cycle; material, which is large holding easily accessible; capacity for 5. The filter bed pollutants; contains a large 3. Simple structure; amount of pollutants, convenient with a long duration, construction a high filtration rate, and good water quality. 1. Selection of filter materials 1. Relatively more is demanding and ancillary equipment 1. More equipment; expensive; Disadvantages needed; relatively higher 2. The filter material is liable 2. Civil works are more investment to wash away; complicated. 3. Difficult to rinse; sludge balls liable to accumulate

184. Sludge dewatering. For gravity thickening and mechanical dewatering, the civil works costs are relatively high, but it is stable in operation and easy to manage, with relatively low equipment costs. The total cost is lower than that of mechanical thickening and mechanical dewatering. Although gravity thickening requires a large area of land, the land use is met by the remaining open space of the water plant; additional land acquisition is not needed. Therefore, the use of gravity thickening and mechanical dewatering is recommended.

Table V-6: Sludge Dewatering Methods Option one Option two Option (Gravity thickening and mechanical (Mechanical thickening and Item dewatering) dewatering) 1. Low investment for equipment; low power consumption; Low cost of civil works; small area of Advantages 2. The concentration of dewatered land occupied sludge is relatively uniform; the dewatering equipment runs stably. 1. The amount of dewatered sludge is large, the concentration is low Relatively high cost of civil works; and uneven, and the processing Disadvantages relatively large area of land occupied capacity is reduced; 2. Increased equipment costs; high power consumption.

2. Component 2: Wastewater Collection and Treatment

185. Pipe materials. For wastewater pipes with diameter less than or equal to 600 mm, HDPE double-wall steel strip composite pipes will be used, and for pipes with diameter more than 600 mm, reinforced concrete pipes with hot melt connection or heat shrink sleeve connection will be used. For rainwater pipes, concrete pipes will be used.

Table V-7: Comparison of performance of commonly used pipe materials HDPE Double Pipe Materials Reinforced FRP Pipe Wall Steel Strip UPVC Pipe Steel Pipe Performance Concrete Pipe Composite Pipe Relatively Service life Long Long Relatively long Long short Relatively Impermeability Strong Strong Relatively weak Strong strong Anti-corrosion Relatively Relatively Strong Strong Strong ability strong weak Can be Can be buried Easy to Easy to buried deep, deep, able to Resistance to deform Easy to deform deform able to withstand external under under external under withstand relatively high pressure external pressure external relatively external pressure pressure high external pressure pressure Ease of Relatively Easy Easy Easy Easy construction difficult Open Open Open Construction Open excavation, Open excavation excavation, excavation, method excavation pipe jacking pipe jacking pipe jacking Roughness 0.013(Ceme 0.009-0.010 0.009-0.010 0.013－0.014 0.009-0.010 (Value of n) nt lining) Relatively Relatively Relatively Head loss Relatively small Relatively small small small large Relatively Relatively Relatively Pipe weight Relatively small Relatively large small small large Relatively Fabrication Pipe transport Convenient Convenient Convenient troublesome on site

Relatively Relatively Relatively Relatively Pipe price Cheapest expensive expensive expensive expensive Comprehensive Relatively Most Relatively cheap Cheapest Cheap pipe price cheap expensive Relatively Relatively Requirements on Relatively less Relatively more Relatively less less foundation stringent stringent less stringent stringent stringent FRP = fiber reinforced plastic, HDPE = high-density polyethylene, UPVC = unplasticized polyvinyl chloride

VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Legislative Framework for Public Consultation and Information Disclosure

186. Meaningful public participation and consultation during project feasibility study, design and implementation are important safeguard requirements. The PRC Environmental Protection Law and Regulations on the Administration of Construction Project Environmental Protection (Order No. 253 of the State Council), and Measures on Public Participation in Environmental Impact Assessment (Order No.4 of the Ministry of Ecology and Environment, April 2018), require that a DEIA solicits the opinions of organizations concerned, and villagers and residents within and near the project sites. In August 2012, the PRC National Development and Reform Commission (NDRC) issued a requirement for “Social Risk Assessment of Large Investment Projects”, which emphasizes the importance of public consultation in an effective manner and requires that the results of public consultation are clearly summarized in the DEIA report, including the dates of consultations, number of stakeholders, who the affected people are, and the comments received.

187. ADB’s SPS (2009) also requires meaningful public participation, consultation and information disclosure. The consultation process for this project followed both the PRC law/regulation and the ADB’s SPS.

188. This section describes the public consultations for the environmental assessment, undertaken by the DEIA institute and implementing agencies, with guidance and participation of the TA consulting firm. Consultations comprised: (i) information disclosure; (ii) questionnaire surveys; (iii) informal visits to villages and households in the project areas; and (iv) public meetings attended by representatives of the affected public and other concerned stakeholders, including a questionnaire survey after the meeting. At the start of each meeting, the design institute and TA team explained the purpose of consultation, the proposed project objectives, components, and designs, the anticipated social and environmental benefits and risks, and the proposed design and mitigation measures to address these risks. Community feedback was sought, including concerns about potential impacts and measures to address these. A social and poverty analysis was also conducted by the TA social and resettlement experts based on group discussions with key agencies, beneficiaries, and adversely affected communities, with emphasis on poverty villages and potential gender issues.

B. Information Disclosure

189. The first round of information disclosure for the proposed project was conducted by the executing agency and domestic EIA institute through the website of the Jining City News on 11 November 2020 (Figure VI-1) (http://www.jn001.com/news/2020-11/11/content_729777.html). The information disclosed included (i) the name and major content of the project, (ii) contact of the implementing agency, (iii) name and contact of the EIA institute, (iv) internet link of the public comment form, and (v) ways of submitting the public comment form. The second round of information disclosure will be conducted through the website of the Jiaxiang County Government and onsite posting, after preparation of the draft IEE, FSR and DEIA, to seek public feedback on the findings, including potential impacts and updated mitigation measures, and included consultations with communities and villages in and near project sites.

190. The documents and information disclosed in the second round of information disclosure (Figure VI-2) in April 29 2021 (https://3g.163.com/news/article/G8OD35HL04379BM1.html) and in May 2021 (http://www.jn001.com/news/2021-05/06/content_747315.html) comprised: (i) description of the project and subprojects, including the project locations, scope and construction 84 methods; (ii) the potential impacts and risks during construction and operation; (iii) the mitigation measures proposed in the IEE and DEIA; (iv) the linkage to download the full DEIA; (v) methods and contact channels for public feedback (to the DEIA Institute and the PIUs), and duration of public access to DEIA report; (vi) forms and methods for the public consultation; and (vii) the date, time, location and organizer’s contact information for the public consultation meetings. Links to the website pages providing the information disclosure are given below. Hard copies of the translated version of the executive summary of the IEE were also made available at the village communities’ offices for public access, to ensure that residents without access to the internet also had the opportunity to review and comments on the project. In addition, all information was provided in Chinese language, to ensure accessibility for residents.

Figure VI-1: First Round Information Disclosure via Jining City News Website (see text for description of content).

Figure VI-2: Second Round Information Disclosure (see text for description of content).

C. Consultation

191. A questionnaire survey was conducted in September 2020. The surveyed communities or villages were decided considering the geographical distribution of all subprojects. All project districts/townships were covered. A total of 606 respondents were involved, of which, 277 interviewees were men (45.7%) and 329 were women (54.3%); 276 were urban residents (45.5%) and 330 were rural residents (54.5%); 166 were elderly, over 60 years old (27.4%); and 20 were poor households (3.3%). The questionnaires focused on public understandings of the project components, and local opinions on the potential environmental, social and economic impacts from the project implementation. The results of the questionnaire survey are summarized in Table VI- 1.

192. For component 1 (water supply), about the environmental impacts, 86.1% of respondents don’t think the program component of water supply will cause any adverse impacts. A few respondents are concerned about the dust and air pollution from construction activities and related traffic (3.8%), wastewater generation from workers’ camps and construction activities (2.0%), and noise and vibration from construction activities and related traffic (1.2%). Also a few respondents don’t care about these impacts (5.1%).

193. For component 2 (wastewater collection and treatment), about the environmental impacts,

88.5% of respondents don’t think the wastewater management component will cause any adverse impacts. A few respondents are concerned about the dust and air pollution from construction activities and related traffic (3.8%). Also a few respondents don’t care about the potential adverse impacts (4.3%).

Table VI-1: Results of Questionnaire Survey Environmental Impacts Concerned Frequency Percentage Component 1 Water Supply No adverse impacts 522 86.1% Dust and air pollution from construction activities and related traffic 23 3.8% Wastewater generation from workers’ camps and construction activities 12 2.0% Noise and vibration from construction activities and related traffic 7 1.2% Potential disputes with the construction labor 1 0.2% Solid waste generation from workers’ camps and construction activities 3 0.5% Traffic and road safety risks due to movement of construction equipment 4 0.7% and vehicles Health and safety risks to the construction workers 2 0.3% Health and safety risks to the community from the construction activities 0 0.0% I do not know 22 3.6% I do not care about these 31 5.1% Others 7 1.2% Component 2: Wastewater Collection and Treatment No adverse impacts 536 88.5% Dust and air pollution from construction activities and related traffic 23 3.8% Wastewater generation from workers’ camps and construction activities 7 1.2% Noise and vibration from construction activities and related traffic 9 1.5% Potential disputes with the construction labor 11 1.8% Solid waste generation from workers’ camps and construction activities 1 0.2% Traffic and road safety risks due to movement of construction equipment 2 0.3% and vehicles Health and safety risks to the construction workers 4 0.7% Health and safety risks to the community from the construction activities 2 0.3% I do not know 10 1.7% I do not care about this 26 4.3% Others 6 1.0%

194. A total of 20 consultation meetings were conducted during September 2020 in Liangbaosi town, Jiaxiang village, Wanzhang, Zhifang town, Jintun town, and Macun town. During the meetings, the content of the Program, major anticipated environmental impacts and mitigation measures were introduced to the participants. No special comments on environment were raised during the consultation meetings. The participants expressed supports to the Program as it will improve the water supply services and living environment.

Figure VI-3:Public Consultation Meetings in the Project Townships

D. Future Information Disclosure and Public Consultation Program

195. Public consultations will be maintained with project communities throughout project implementation, including: (i) before and after key works, to ensure residents are informed of, and have the opportunity to respond to, pending works and procedures, (ii) during period broader consultations about project progress. Future consultation will be undertaken by the PMO and implementation units’ Environment and Social Officers, via questionnaire surveys, household visits, workshops, and public hearings (see attached EMP).

VII. GRIEVANCE REDRESS MECHANISM

196. A project-specific GRM was prepared and complies with ADB’s SPS (2009) and PRC requirements. The GRM will be accessible to diverse members of the villages and community, including more vulnerable groups such as women, minority and poor. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. The GRM is described in the project EMP (Attachment 1).

VIII. ENVIRONMENTAL MANAGEMENT PLAN

197. A project EMP has been prepared (Attachment 1), based on the findings of the IEE, domestic assessments, fieldwork, and stakeholder consultations. The EMP defines: (i) responsibilities and authorities for the EMP implementation, (ii) summary of impacts and mitigation measures, (iii) environmental monitoring and inspection, (iv) institutional strengthening and training, (v) reporting requirements, (vi) public consultation, (vii) cost estimates, and (viii) mechanism for feedback and adjustment. The EMP will be included as an annex in bidding and contract documents. Contractors will be required to develop site-EMPs that comply with the EMP.

IX. CONCLUSIONS

198. Key impacts anticipated due to construction include general impacts associated with civil works such as dust and gaseous dispersion, noise, construction wastewaters; temporary traffic diversion; soil erosion; worker and community health and safety.

199. Operational risks include: noise from pumping stations for water supply and drainage pumps, sludge and wastewater discharges from the water supply and wastewater treatment plants, solid waste, odor from the waste treatment stations, and occupational health and safety risks to workers. These risks have been minimized to the extent possible through the designs (including use of low-noise equipment and sealed treatment systems), safety work procedures, response measures in the event of machinery damage or leakage, and routine health checks for workers. The sludge from the drinking water and wastewater treatment plants will be shipped to Jiaxiang Everbright Waste to Energy Plant for disposal.

200. Measures to avoid, minimize, and mitigate potential project impacts have been developed in a project EMP (Attachment 1). A project-specific GRM has been developed, and will be implemented at the county, and site levels. Public consultations have been conducted with communities around the subproject sites.

ATTACHMENT 1: ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

1. This program environmental management plan (EMP) is developed for the Shandong West Jining Water Supply and Drainage Integration Program (the program) in Jiaxiang County of Shandong Province, the People’s Republic of China (PRC). The EMP is prepared in accordance with the requirements of the Asian Development Bank’s (ADB’s) Safeguard Policy Statement ([SPS] 2009) on the basis of the domestic tabular environmental impact assessment prepared by Shandong Haojie Environmental Protection Technology Limited Company and the initial environment examination (IEE) conducted for the program.

2. The EMP defines appropriate mitigation measures for the anticipated environmental impacts and defines the institutional responsibilities and mechanisms to monitor and ensure compliance with PRC’s environmental laws, standards, and regulations, and ADB’s SPS. The EMP specifies (i) objectives; (ii) mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (v) a feedback and adjustment mechanism; and (vi) the grievance redress mechanism (GRM).

3. The EMP will be reviewed and updated at the end of the detailed designs, as needed, in order to be consistent with the final design. The EMP (or its updated version) will be included as a separate annex in all bidding and contract documents. The contractors will be made aware of their obligations to implement the EMP and to budget the EMP implementation costs in their proposals. The EMP supervision and monitoring results will be used to evaluate (i) the extent and severity of actual environmental impacts against the predicted impacts, (ii) the performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts; and (iv) overall effectiveness of the mitigation measures.

B. Institutional Responsibilities

4. The Jiaxiang County Government (JCG) is the program executing agency responsible for the supervision and guidance of the Jiaxiang program management office (PMO) and the implementing agency during program implementation. A program leading group has been established, chaired by the mayor of the JCG, and consists of representatives from relevant bureaus and leaders from program town/townships. Jiaxiang Urban Construction Group (JUCG), Jiaxiang Water Affairs Bureau and Jiaxiang Housing and Urban-Rural Development Bureau are the implementing agencies. The EMP implementation arrangements and responsibilities of governmental organizations are summarized in Table EMP-1.

Table EMP-1: Institutional Responsibilities for EMP Implementation Agency Environmental Management Roles and Responsibilities Jiaxiang • Ensure timely national, provincial, municipal, and inter-agency coordination and County support for the program as needed Program • High-level support to executing agency Leading Group • Provide advice on program implementation review program progress Jiaxiang • Program executing agency County • Overall accountability and responsibility for program planning, management, and Government implementation • Ensure timely and effective execution of the loan agreements • Coordinate with ADB

Jiaxiang Overall program management: County • Supervise and manage daily program implementation Program • Recruit and manage design institutes, procurement agents, consultants, contractors, Management CSCs, in accordance with government and ADB regulations Office • Submit bidding documents, bid evaluation reports and other documents as needed to ADB for endorsement • Supervise construction and monitor quality control • Coordinate with ADB on all aspects of program implementation Environment safeguards: • Engage LIEC; and EMA for environmental impact monitoring • Assign 1 PMO Environment Officer and 1 PMO Social Officer • Respond to any unanticipated safeguard issues and take corrective actions as needed • Ensure program compliance with the loan and program agreements (including all safeguard provisions) and EMP • Prepare semiannual environment monitoring reports to ADB • Update IEE and/or EMP as needed, especially during the stage of detailed engineering designs • Ensure that the EMP, especially all relevant mitigation measures, are included in the detailed engineering designs • Establish the EMP grievance redress mechanism Start-up/Loan • To be recruited under the loan implementation consulting services Implementation • Assist in updating the EMP and environmental monitoring program Environmental • Supervise the implementation of the mitigation measures specified in the EMP on behalf Consultant of the IA and PMO, prepare the environmental sections of progress reports in English (intermittent and submit it to ADB; throughout • Provide training to the IA, PMO, CSCs, on the PRC’s environmental laws, regulations, program) and policies, ADB SPS 2009, EMP implementation, and GRM in accordance with the training plan defined in Table EMP-6 • Identify any environment-related implementation issues and propose necessary corrective actions to undertake site visits for EMP inspection as required. • Prepare environmental monitoring reports. Environment • Monitor compliance of the identified parameters with the required program targets and monitoring standards; identify non-compliance. agency • Submit monitoring results to PMO, and IA. (intermittent throughout program) Contractors • Ensure sufficient funding and human resources for full implementation of mitigation and (intermittent monitoring measures in the EMP throughout • Develop site-specific EMPs based on this EMP, including the specific contractor construction) performance targets listed in Table EMP-2 • Timely and effective implementation of EMP measures for works Construction • Ensure sufficient funding and human resources for supervising and instructing supervision contractors for proper and timely implementation of required mitigation and monitoring company measures in the EMP (intermittent • Supervise construction progress and quality throughout • Appoint qualified EHS officer for regular onsite supervision of contractors construction) • Supervise the contractor’s EMP implementation performance • Undertake simple and cost-effective on-site quantitative measurements to regularly check that construction complies with the program environmental monitoring standards and targets, especially for noise and air quality (especially during works in urban areas and villages), using a basic hand-held meter • Submit monthly EMP monitoring reports to PMO and IA

Asian • Oversee program administration and timely execution of the loan agreements by the Development executing and implementing agencies Bank • Disburse loan proceeds • Review procurement, consultant recruitment, progress reports, and audit reports • Review program compliance and targets against the design and monitoring framework, EMP, and program administration manual • Review and endorse updated IEE and EMP as needed • Monitor program progress and conduct review missions • Disclose monitoring reports on ADB public website ADB = Asian Development Bank, CSC = construction supervision company, EMA = environmental monitoring agency, EMP = environmental management plan, GRM = grievance redress mechanism, LIEC = loan implementation environmental consultant, IEE = initial environmental examination; PMO = program management office; IA = implementing agency, PRC=people’s Republic of China. Source: Asian Development Bank.

5. Environment staff within PMO and IA. The PMO will designate a qualified environment and safety officer, who will take overall responsibility for supervising the implementation of the EMP within six months after loan effectiveness. The officer will work full-time for the program and will take charge of: (i) supervising the implementation of mitigation measures during program design, construction and operation; (ii) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management manuals; (iii) submitting semiannual EMP monitoring and progress reports to ADB; (iv) coordinating the GRM; and (v) responding to any unforeseen adverse impacts. The loan implementation environment consultant will support the PMO Environment Officer technically. Each IA will nominate one qualified social and environmental focal staff to check the overall implementation of environmental management provisions of the EMP and to work in close coordination with the PMO Environmental Officer.

6. Loan implementation consultants. PMO will engage a start-up environmental consultant to support the updating of IEE and EMP, and ensure the environmental clauses are incorporated into the biding documents. A loan implementation environmental consultant (LIEC) and loan implementation social consultant (LISC), as part of the loan consultancy implementation services before commencement of construction. The consultants will support the PMO to provide capacity building for, and coordination of, the EMP implementation. The LIEC will also support contractors in developing construction site-specific environmental management plans (CEMPs) prior to construction and operation.

C. Summary of Potential Impact and Mitigation Measures

7. Table EMP-2 and EMP-3 summarizes the potential impacts and environment safeguard issues of the subprojects during pre-construction, construction, and operation as identified by the environmental impact assessments and set out in the program IEE, as well as corresponding mitigation measures designated to minimize those impacts and address these issues. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, by the design institutes (during detailed design) and contractors (during construction), under the supervision of the PMO and IA Environment Officers and CSCs, with technical support from the LIECs. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved, or adjusted.

93 Table EMP-2: Potential Environmental Impacts and Mitigation Measures Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises A. DESIGN AND CONSTRUCTION PHASES Detailed Institutional • At least 1 month before construction: (i) reconfirm the full-time status of the PMO Environmental Officer; (ii) appoint PMO, IA PMO design stage strengthening for at least one Environment Focal Staff. EMP • At least 2 months before any construction, PMO engages LIEC. Implementation • At least 2 months before any construction, provide training to all environmental staff for EMP implementation and and supervision supervision. • Engage one certified EMA has been recruited for the program at least 2 months before any construction. • COVID-19 safety management – prescreening ahead of works. Establish early screening measures and procedures to ensure that all new program personnel are tested negative before commencing on-site work. See also requirements under occupational health and safety (Construction Phase, below and see Attachment 1) for preparation of a COVID-19 health and safety plan. • Organize and conduct training on the program EMP for appropriate staffs of the PMO, IA, contractors, and CSCs. Updating EMP • Update the mitigation measures defined in this EMP, as needed, based on final detailed design. PMO, Start- EEB, ADB • Asbestos. Under ADB’s List of Prohibited Investment Activities (SPS, 2009), the use of asbestos is prohibited up except for the “purchase and use of bonded asbestos cement sheeting where the asbestos content is <20%” (SPS environmenta 2009: 76). However: (i) in practice, it is difficult to assess whether asbestos content is <20%; and (ii) international l consultant/ development banks are increasingly banning the use of all asbestos from their projects. To ensure international LIEC best practice for human health and safety for this program: no asbestos of any kind will be used in any materials supported by the program. • Check with the design institute and PMO to ensure the proposed materials do not include the use of asbestos. • Submit the updated EMP to ADB for review. • Changes in program locations or scope. In case of major changes of program location and/or additional physical components, form a DEIA team to conduct additional DEIA and public consultation. The revised DEIA should be submitted to Jiaxiang County EEB and ADB for approval and disclosure. • PMO to consult with ADB to determine if the change is minor or major in scope. If there is major change, the IEE and EMP shall be revised and submitted to ADB Environmental • Prior to construction, the PMO will hire an EMA for environmental monitoring. PMO, IA, PMO, IA monitoring plan • Prepare a detailed monitoring plan in accordance with the monitoring plan in this EMP. EMA Construction Sediment testing • The sediment quality of Laoniutou River shall be tested to determine the destination of dredged sediments. The PMO, IA, PMO, IA Preparation for Laoniutou monitoring program is provided in Table EMP-4. EMA River dredging Bidding and • Mitigation measures in the EMP are incorporated in all bidding documents. DIs, PMO, IA LIEC, ADB contract • Bidding documents are sent to ADB for review. documents • Prepare environmental contract clauses for contractors. EMP training • LIEC, or invited environment specialists and/or officials from EEB provide training on construction environmental Start-up PMO, EEB management, implementation, supervision, to contractors and CSCs, in accordance with the training plan in this environmenta EMP. l consultant/ LIEC

94 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Establish GRM • Responsibility for GRM implementation is assigned to the PMO and IA Environmental Officers and Social Officers PMO, IA Start-up and is included in their terms of reference. environment • PMO and IA personnel will be aware of, and trained in, the GRM, and will help support the environmental and al social officers when necessary. consultant/ • Key contact details for the GRM (phone number, WeChat, address, email) will be provided on the PMO, IA and/or LIEC EPB public websites and information boards at construction sites. Site EMPs • Prior to any works, prepare site-specific EMP for individual construction sites Contractor CSC • Review and ensure site EMP comply with the measures in this EMP PMO, IA Start-up environment al consultant/ LIEC B. CONSTRUCTION PHASE Topography Earthwork, soil • Coordinate with other utility service providers to establish the presence of existing utility easements and avoid risk Contractor CSC, IA, and Soils erosion, soil of damage and/or repeated excavation/filling at earlier stage to ensure that potentially risks and impacts PMO, EEB, contamination associated with damaging pipework are adequately assessed and mitigated; WRB, LIEC • Plan and implement construction in staged sections (≤500 m), with one section completed and stabilized before beginning the next. • Define spoil disposal sites and borrow pit locations, in the construction tender documents. • Construct intercepting channels to prevent construction runoff entering waterways. • Divert runoff from sites to sedimentation ponds before discharging them into the existing drainage. • Minimize open excavation areas and trenches, including for pipeline works and embankments to <300 m sections of active works. Use appropriate compaction techniques for pipe trenches. • Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas. • Stabilize all cut slopes, river and wetland banks, tree pits and planting areas, and other soil erosion-prone working areas, through terraces, silt barriers, sediment traps, and other measures as needed. • Strip and stockpile topsoil, and cover (by geotechnical cloth) or seed temporary soil stockpiles. • Provide temporary detention ponds or containment to control silt runoff. • Stabilize earthwork areas within 15 days after earthworks have ceased at the sites. • Rehabilitate all sediment, and spoil disposal sites, embankments, and revetments, after completion. Properly slope or re-vegetate disturbed surfaces e.g., pipeline trenches and cut banks. Use only native species for rehabilitation and landscaping. • Situate construction camps and storage areas to minimize land area required. • Remove construction wastes from the site to the approved disposal sites. • Establish emergency preparedness and response plan for spills including cleanup equipment at each construction site and training in emergency spill response procedures. • Train contractors and crews in emergency spill response procedures. • Conduct site inspections and monitoring for soil erosion and contamination.

Disposal of surplus spoil

• Disposal will be at existing, approved disposal sites.

95 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Ambient Air Dust generated by • Equip material stockpiles and concrete mixing equipment with dust shrouds. Contractor CSC, IA, construction • Spray water on construction sites and earth/material handling routes. PMO, LIEC activities, gaseous • Cover materials during truck transport. air pollution (SO2, • Purchase pre-mixed asphalt for road surface paving after pipeline laying; if asphalt is heated and mixed onsite, CO, NOx) from asphalt mixers must be located >200 m from villages and other sensitive receptors. construction • Store petroleum or other harmful materials at appropriate places. machinery and • Ensure emissions from vehicle and machinery comply with PRC standards of GB18352-2005, GB17691-2005, asphalt pavement GB11340-2005, GB2847-2005, and GB18285-2005. after pipeline • Provide high-horsepower equipment with tail gas purifiers. laying Odor from • Timely community consultations to ensure awareness of the issue prior to dredging; Contractor CSC, IA, dredging • Rapid transport of dredge spoil to minimize exposure time near communities; PMO, LIEC • Transport in sealed containers to avoid odor; • Minimizing the release of odors by dredging in short sections (≤300 m) at any one time. Impacts will also be temporary as odors are dispersed. Except for any sediment to be used for construction purposes, the de-watered sediment will be transported off-site, in sealed containers to prevent leakage and minimize odor Noise and Noise and • Ensure construction machinery conforms to PRC standard of GB12523-2011. Contractor CSC, IA, vibration vibration • Properly maintain vehicles and machineries to minimize noise. PMO, LIEC generated from • Apply noise reduction devices or methods where noisy machinery is operating, such as construction of water construction supply and wastewater treatment facilities, within 300 m of sensitive sites. activities • Prohibit operation of machinery generating high levels of noise and movement of heavy vehicles along urban and village roads between 20:00 and 06:00. • Place temporary hoardings or noise barriers around noise sources during construction. • Conduct checks for cracks at sites before and after vibration-inducing works. • Monitor noise at sensitive areas and consult villagers/residents at regular intervals (see Table EMP-4). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation. • Conduct interviews with residents adjacent to construction sites to identify and resolve issues, including adjustment of work hours of noise-generating machinery. • For households that will be within 40 m of construction works particular attention will be provided. This will include: (a) follow-up consultations with these households prior to the start of any works, to specify the exact planned dates and schedule of works, nature of works, equipment to be used, safety measures, and public access during construction; (b) installation of noise barriers to reduce as much of the emissions as possible, and/or installation of additional layers on the windows of the affected homes as necessary, based on the assessment of the most technically effective method and feedback from the community consultations; (c) agreement on the duration of daily works.

96 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Water Impact from • Labor camps, fuel storage, machinery maintenance workshop and vehicle cleaning areas must be stationed at Contractor CSC, IA, pollution wastewater least 500 m away from waterways. PMO, LIEC pollution • Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces and provided with bunds and cleanup installations. • Prior to any earthworks along rivers and channels, install sediment traps and curtains, to minimize sediment runoff. • Collect construction wastewater in retention ponds and filter tanks to remove silts, oil. • Equip machine wash-down sites with water collection basins and sediment traps. • Install oil-water separators before the sedimentation tank for oily wastewater treatment. • Equip all sites for washing of construction equipment with water collection basins and sediment traps. • Install portable toilets at work sites and on-site wastewater pre-treatment systems for worker camps along with maintenance protocols. • Domestic wastewater from worker camps will be disposed of in two ways: (i) for work sites accessible to municipal sewerage systems, the wastewater will be discharged into the nearest sewerage system; (ii) for work sites neither close to villages nor sewerage systems, temporary septic tanks will be constructed for the centralized treatment of domestic wastewater. • Contractors will develop actions for control of oil and other dangerous substances as part of their site EMPs. • Contractors’ fuel suppliers must be properly licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-91 (Transportation, Loading and Unloading of Dangerous or Harmful Goods. revised). • Tailings and wastewater from work sites will only be discharged into the tributaries when the concentration of suspended solids (SS) is less than 20 mg/L. • EMA will monitor water quality (for pollutants such as SS, CODCr, NH3-N and petroleum) in the program waterways during construction (Table EMP-4). Dewatering of the • A small temporary earth drain will be established around each drying site to drain the water into a small Contractor CSC, IA, dredged sediment sedimentation pond, to further increase settling and sedimentation. This supernatant water will further be treated PMO, LIEC from Laoniutou with flocculants to assist settling and to meet PRC Integrated Wastewater Discharge Standard (GB 8978-2015) River prior to draining back into the channel. Solid Waste Solid waste • Provide appropriate waste collection and storage containers at locations away from surface water or sensitive Contractor CSC, IA, generated by spots. PMO, LIEC construction • Arrange with municipal waste collection services for regular collection of waste. activities and from • Properly remove and dispose of residual materials, wastes and contaminated soils. Paving or vegetating shall be workers’ camps done as soon as the materials are removed to stabilize the soil. • Burning waste is strictly prohibited. • Provide sufficient garbage bins at strategic locations and ensure that they are protected from birds and vermin and emptied regularly by the municipal waste collection systems. CONTRACTOR PERFORMANCE TARGET: No uncollected waste at the close of construction activities each day.

97 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Biological Protection of flora • Construction workers are prohibited from capturing any wildlife in the program areas; Contractor IA, PMO, resources and fauna around • Prior to construction, demarcate vegetation, e.g., vegetated roadsides, trees, riverbanks. LIEC construction sites • As far as possible, avoid the clearance of any vegetation. • All planting activities, including re-vegetation, embankment construction, wetlands, landscaping, and rehabilitation of construction sites, will only use plant species which are (a) native (i.e., naturally occurring), and (b) are sourced from local stock within Jining City to minimize the risk of spreading invasive species through the long-distance transport of soil or materials. • If non-native seedlings are required for rapid stabilization of exposed soils and sites, only sterile seedlings will be used to prevent the spread of weeds. • No plant species will be used that are classified in the PRC as weeds, as defined by the China National Invasive Plant Database (http://www.agripests.cn; 229 species) and by the MEE and Chinese Academy of Sciences (19 species). • To avoid pollution of the rivers, no top-dressing fertilizers will be used for any of the re-vegetation, planting, afforestation, or landscaping activities. For all planting activities, fertilizer will be applied at the root mass of each plant. • No pesticides or agricultural chemicals listed as hazardous under Classes I or II by the WHO or listed as prohibited or strictly controlled use under the PRC’s national regulations for pesticide management will be used for the project activities. Use biological and/or physical methods for pest control. Chemical means shall be as a last resort. This includes the project activities of replanting for site rehabilitation and landscaping. Physical Damage to known • Establish chance-find procedures for physical cultural resources; Contractor IA, PMO cultural or unknown above • If a new site is unearthed, work shall be stopped immediately and the PMO, IA and cultural relics bureau promptly LIEC, resources or below-ground notified. The construction will resume only after a thorough investigation and with the permission of appropriate cultural relic cultural relics authority. bureau Socio- Temporary • Use cofferdams and temporary diversion channels to maintain continued water flow while works are conducted. Contractor CSC, IA, economic interruption to • Prior to works, re-confirm the planned construction schedule and site EMP actions. PMO, LIEC resources water supply from • Inform residents at least two days before any planned water interruptions. pipeline or • Assist residents if requested with community water storage during the interruption period. embankment • Interruptions to water supply should not be longer than one (1) day. construction • In case of accidental interruption, immediately inform affected communities and assist with water supply until the issue is resolved.

98 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Community Community Community consultations Contractor, CSC, IA, and consultation, • Prior to any works, inform residents and businesses in advance through media, information boards, and direct CSC PMO, LIEC occupational health, and safety consultations of the construction activities, dates, and duration of expected disruption. health and • Especially for the communities within 40 m of works and who will be subjected to higher noise/dust levels, conduct safety meetings with residents prior to any works. • Record all community feedback and solutions discussed and agreed. • Based on feedback from the community consultations: (i) update contractor site plans as needed to incorporate the solutions, including revisions in work schedules, daily working hours, construction methods, and/or mitigation methods; (ii) revise CSC monitoring schedules and monitoring criteria as needed to reflect the updated contractor site management plans.

Community health, safety, and minimizing disruption to daily life • Prepare and implement a traffic control plan for approval by local traffic management administration before construction. This will include scheduling or diverting construction traffic to avoid peak hours, regulating traffic at road crossings, selecting routes to reduce disturbance, reinstating roads, and opening them to traffic when construction is completed; • For all works involving excavation along roads and easements which already have existing subsurface utilities (power cables, sewage pipes, water pipes, telecommunication cables): (i) plan and coordinate the program sewage pipeline construction with the utility managers, (ii) check whether there are pending domestic projects to upgrade these utilities. Coordinate works to avoid repeated excavation of the same sections of road or easement; and work with utility managers to minimize the risk of damage or disruption to the existing utilities. • Install signs at construction sites to inform people of the program GRM, potential dangers (e.g. moving vehicles, hazardous materials, excavations) and safety issues. • Install safety barricades around all excavations and pipeline trenches. • Assign personnel to direct pedestrians around dangerous work areas. • Ensure that all sites are secure, discouraging access through appropriate fencing. • Lock and secure all work sites to prevent unauthorized access. • Night-time (8:00 pm – 6:00 am) use of heavy machinery is strictly prohibited.

99 Potential Who Who Item Impacts/Issues Mitigation measures Implements Supervises Occupational • Prepare environmental, health and safety plan, to include: (i) clean and sufficient supply of fresh water for Contractor CSC, IA, health and safety construction sites, camps, offices; (ii) sufficient latrines and other sanitary arrangements at construction sites and PMO, LIEC work camps; (iii) garbage receptacles and regular emptying; and (iv) provision of safety clothing and equipment as needed, in accordance with health and safety regulations. • Prepare emergency response plan and submit to PMO and EEB for approval. Establish emergency phone links with township hospitals. Maintain a first-aid base in each construction camp. • Establish a records management system for occupational accidents, diseases, incidents that: (a) includes a tracking system to ensure that incidents are followed up; (b) can easily retrieve records; and (c) can be used during compliance monitoring and audits. The system will be backed up on at least one external hard drive to protect records against loss or damage. The records will be reviewed during compliance monitoring and audits. • Establish worker camps in conformance with relevant domestic guidelines, such as Construction Site Environment and Hygiene Standard (JGJ146-2013); • Safety communication. Publicize occupational health and safety matters to all program personnel. Install on-site signs and give regular training. • Train all workers in basic sanitation, health and safety matters, and work hazards. Implement awareness and prevention program for HIV/AIDS and other diseases – target the local community and construction workers. • Provide personal protection equipment (PPEs) to workers as needed, e.g., safety boots, helmets, gloves, protective clothing, goggles, ear protection and life jackets for workers working near water bodies and adequate trainings for the usage of the PPEs. • Asbestos. In the event that materials containing asbestos are suspected: (i) the contractor will immediately inform the IA, who will inform the PMO; (ii) the contractor will subcontract the municipal center for hazardous waste, who will be responsible for the safe handling, transport, and disposal of the materials; (iii) such materials will only be disposed in a landfill site certified and designed to receive hazardous materials. • COVID-19. Prepare and implement a coronavirus (COVID-19) health and safety plan to address COVID-19 health risks. The plan will be prepared in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. The plan should include (i) measures to record the locations that workers have visited/lived immediately before and during program work; (ii) schedules for disinfecting/cleaning offices, yards, stores and labor camps; (iii) measures to implement temperature checks and other health checks on site; (iii) physical distancing measures, particularly in worker camps; (iv) requirements for mandatory use of personal protective equipment such as facemasks, and provision of handwashing stations, hand sanitizers, and other appropriate protective measures; (v) how workers and residents living near program sites will be provided with information to protect themselves from COVID-19; (vi) procedures to be adopted in the event a worker is suspected to have contracted COVID-19; and (vii) other COVID-19 prevention and control measures appropriate for the local context. See attachment 2 of the EMP good practices for references.

CONTRACTOR PERFORMANCE TARGET: Camps clean, emergency response plans in place, and 100% of workers aware of emergency response procedures ADB = Asia Development Bank, COVID-19 = coronavirus disease, CSC = construction supervision company, EEB = ecology and environment bureau, EMA = environmental monitoring agency; LIEC = loan implementation environment consultant, PMO = Program management office, IA = implementing agency, WRB = Water Resources Bureau.

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Table EMP-3: Potential Impacts and Mitigation Measures during Operation Issue Mitigation Measure Implement Supervise Subproject 1: Noise emissions OPF PMO, Water Supply • Use low-noise equipment as much as possible. EEB • Strengthen the maintenance and management of equipment to make it in a good usable state. • Take sound insulation, shock absorption and noise reduction treatment for the equipment with large amount of noise (water pump, etc.), and take measures for sound insulation and noise reduction in the pump room

Sludge generation • Sludge from water supply plant will be shipped to Jiaxiang Everbright Waste to Energy Plant for disposal after dewatering.

Occupational health and safety • A chlorine leakage alarm and a rapid flushing device will be set up in the chlorine and chemical dosing room. If a leak occurs, the system will be automatically activated. The alarm will be calibrated to detect a concentration level of 1 ppm (0.3158 mg/Nm3). The chlorine leakage absorption treatment device will operate automatically to collect and absorb the leaked chlorine gas. • An emergency response plan will be developed and implemented. The plan will inform staff and visitors about the characteristics of chlorine dioxide, describe potential health hazards, and define accident prevention measures and an evacuation plan. • Train staff in O&M safety. All workers to be equipped with labor protection supplies, including gloves and strong footwear etc. and life jackets for workers active near the water bodies.

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Issue Mitigation Measure Implement Supervise Subproject 2: Operational failure OPF PMO, Wastewater • Regularly clean the sewage network and inspection wells to EEB collection and ensure the long-term smoothness of the pollutant receiving treatment system, and at the same time, reduce the amount of SS produced during heavy rain. • Regularly clean the grid well, regulating pool and other systems to ensure that each process can meet the expected treatment effect. • The facility operation and maintenance unit shall conduct regular sampling and testing on influent and effluent and keep records. • The facility operator shall develop an emergency plan. If breach of the effluent discharge standard is detected, the technician shall report to the local environmental authority and director immediately and take water sample of each process unit to analyze the reason of the failure and develop technical solutions. If serious non-compliance is detected, the outlet valve will be closed and the wastewater will be stored at the regulation tank temporary until the problem resolved. • The facility operation and maintenance unit shall install automatic online monitoring facilities for monitoring the CODCr and NH3-N of influent and effluent in real-time, and the online monitoring system shall be connected with the local environmental protection department.

Sludge and slag and grit disposal • The general grid slag and grit are collected and sent to the Jiaxiang Everbright Waste to Energy Plant. The general residual sludge is regularly cleaned and transported by the fecal suction truck.

Occupational health and safety • Regular cleaning with disinfectant to reduce odors and disease risk • Train staff in O&M safety. All workers to be equipped with labor protection supplies, including gloves and strong footwear etc. • Regular consultation with residents to identify potential issues e.g., odor-related disturbance

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Issue Mitigation Measure Implement Supervise Subproject 2: Embankment stability Donglai River • Implement annual (as a minimum) inspections of all program and embankments for physical integrity. If signs of failure are Laoniutou discovered, implement a repair program immediately. River rehabilitation Embankment routine maintenance • Integrate routine maintenance activities into existing work program of the county water resources team; • Monthly maintenance (at least in summer) of re-vegetated embankments – pruning, weeding and replacement of dead or dying plants; • Inspect for signs of plant disease and/or pests and implement control measures as necessary; • At least once a year before rainy season, remove solid waste and debris – dispose in Jiaxiang Everbright Waste to Energy Plant; • Prohibit or remove any illegal structures which are found to maintain free water flow. EEB = Ecology and Environment Bureau, OPF = operator of program facility, IA = implementing agency, PMO = Program Management Office, PRC = People’s Republic of China, O&M = operation and maintenance, WHO = World Health Organization.

D. Environmental Monitoring, Inspection, and Reporting

8. Two types of monitoring will be conducted under the monitoring plan: i) environmental impact monitoring. The PMO will entrust licensed environmental monitoring agency to conduct the environmental impact monitoring described in the Table EMP-4. The environmental impact monitoring will be conducted during the entire construction phase and first full year of operation of the program facilities. ii) EMP implementation monitoring. EMP compliance monitoring will be conducted by the PMO-EO with support from the LIEC on an ongoing basis and will involve monthly, weekly, or when necessary, daily inspections of active work sites to ensure compliance with the relevant EMP requirements. Findings of compliance inspections will be reported to the contractors, CSCs and PMO, and measures to address any non-compliance will be implemented as soon as possible by the contractors. The findings will also be reported to ADB through the semiannual environmental monitoring report.

9. The monitoring program (Table EMP-4) describes the scope of monitoring, parameters, time, and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of ambient air, surface water, sediment and noise, and the pollutant discharge standards.

10. Semiannual environment monitoring reports. The PMO will submit these reports to ADB. They will include: (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The LIEC will help the PMO prepare the reports and submit the English report to ADB for disclosure. ADB will provide a standard reporting template to PMO to assist in report preparation.

11. Program completion environmental audits. Within three months after each subproject completion, or no later than a half year with permission of the local EEB, environmental acceptance

103 monitoring and audit reports of each subproject completion shall be: (i) prepared by a licensed environmental monitoring institute or the facility owner if the facility owner has the competence in accordance with the PRC Interim Measures for Acceptance of Environmental Protection upon Completion of Construction Projects (2017) and submitted to environmental authority though the national construction project environmental impact assessment information management platform (http://114.251.10.205/) and (iii) reported to ADB through the semiannual environment monitoring reports.

12. Quality assurance (QA) /quality control (QC) for compliance monitoring. To ensure accuracy of the monitoring, QA/QC procedures will be conducted in accordance with the following regulations: (i) regulations of QA/AC Management for Environmental Monitoring issued by the State Environmental Protection Administration in July 2006; (ii) QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001; and (iii) QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

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Table EMP-4: Environmental Monitoring Program Subproject/Item Parameter Location Frequency Implement Supervise PRE-CONSTRUCTION PHASE Subproject 6: River pH, As, Zn, Cd, Cu, Pb, Every 2 km along Once before Certified PMO comprehensive Hg, Cr, Ni, 666 the Laoniutou construction environmental rehabilitation (Lindane), DDT, River and Donglai monitoring Benzo(a) pyrene, organic River agency matter, TP and TN CONSTRUCTION PHASE 1. EMP implementation monitoring Ambient air quality Compliance with air Visual inspection 1 time/week Contractor, PMO, LIEC pollution mitigation at all construction CSC, IA measures (Tables EMP-2 sites and 3).

Contractor performance targets: No. of complaints received and satisfaction of the solution. Noise LAeq: measured with Construction site 1 time/week Contractor, PMO, LIEC hand-held meter boundary minimum CSC, IA during peak Contractor construction performance targets: (i) levels at noise level meets work sites standard at site boundary; (ii) for nearby households most at risk from the construction noise, the installed noise barriers reduce noise levels by at least 80%; (iii) No. of complaints received and satisfaction of the solution. Soil erosion and re- Soil erosion intensity and Visual inspection 1 time/week; Contractor, PMO, LIEC vegetation survival rate of re- at spoil sites and and CSC, IA vegetation all construction immediately sites, especially after heavy embankment rainfall sections of program river sections Re-vegetation of Visual inspection At least 2 Contractor, PMO, LIEC embankments and other along times/year CSC, IA areas embankment sections and all revegetation areas Soil run-off and (i) adequacy of soil runoff Visual inspection Weekly Contractor, PMO, LIEC contamination prevention measures; (ii) of the construction during peak CSC, IA adequacy of soil sites construction contamination prevention period, and techniques. monthly after

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Subproject/Item Parameter Location Frequency Implement Supervise Water quality of Turbidity (i) Visual Daily during Contractor, IA, PMO, rivers where the inspection, (ii) dredging CSC LIEC dredging will be measurement with done Secchi Disk or other simple and cost-effective method Solid and liquid (i) adequacy of solid and Visual inspection Weekly Contractor, PMO, LIEC waste management liquid waste of the construction during peak CSC, IA management, storage, sites construction and containment system; period, and (ii) monthly presence of solid waste after. dumps, waste fires. Contractor performance target: no uncollected waste at end of works each day Occupational Camp hygiene, safety, Visual inspection Weekly Contractor, PMO, LIEC health and safety availability of clean and interviews during peak CSC, IA water, EMRs with construction construction Contractor workers and period, and performance target: contractors at monthly after camps clean, EMRs in construction sites place; 100% of workers aware of EMR procedures Community health (i) adequacy of Visual inspection Weekly Contractor, PMO, LIEC and safety construction site of the construction during peak CSC, IA signage, fencing, and sites; informal construction noise mitigation interviews with period, and measures; (ii) type and nearby residents monthly after extent of any accidents; (iii) emergencies and responses; (iv) public complaints (e.g., about noise, pollution, safety) 2. Environmental impact monitoring by certified environment monitoring agency Water quality of Sediment levels (mg/L), 300 m upstream 2 times/year EMA EEB, PMO, rivers where the (turbidity (e.g., Secchi and 300 m during LIEC dredging will be Disk values), dissolved downstream of dredging done oxygen the dredging sites Quality of sewage pH, SS, NH3-N, CODCr, Domestic 2 times/year EMA EEB, PMO, and discharge petroleum wastewater during LIEC channels at worker discharge at work- construction camps camps Construction SS, oil, pH at wastewater 2 times/year EMA EEB, PMO, wastewater discharge points during LIEC of all construction construction sites Air quality TSP, PM10 All construction 2 times/year EMA EEB, PMO, sites (at least 1 during LIEC point upwind, 1 construction point downwind) and nearby sensitive receivers (Section IV of EIA) Odor Dredging sites 2 times/year EMA EEB, PMO, during LIEC construction

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Subproject/Item Parameter Location Frequency Implement Supervise Noise LAeq Boundaries of all 2 times / EMA EEB, PMO, construction sites year (twice a LIEC and sensitive day: once in receivers daytime and (Chapter V- once at sensitive nighttime, for receivers within 2 project area of consecutive influence) days) OPERATIONAL PHASE – by certified environment monitoring agency, IA, and/or operators of program facilities Subproject 1: Water Supply Noise LAeq Boundary at pump Quarterly EMA EEB, PMO, stations of the (twice a day: LIEC new constructed once in water supply plant daytime and and five waters once at supply plants nighttime, for upgraded 2 consecutive days) Subproject 2: Wastewater management Air quality H2S, NH3, Odor Boundary of Yearly, 3 day EMA EEB, PMO, wastewater lift each time LIEC pumps of North Jiabei New City; Boundary of the town and village wastewater treatment facilities Effluent from water Quarterly monitored: pH, Discharge outlet Quarterly, 3 EMA EEB, PMO, treatment plant CODCr, BOD5, NH3-N, of the new WSP days each LIEC (comprising SS, DO, TP, fecal time. sewage and coliform. wastewater from the treatment process) Wastewater Quarterly monitored: pH, Outlet of Quarterly, 3 EMA EEB, PMO, CODCr, BOD5, NH3-N, wastewater days each LIEC SS, DO, TP, fecal treatment facility time; coliform; Real-time Real time: pH, CODCr, monitoring NH3-N, TP and flow. Noise LAeq Boundary of Quarterly EMA EEB, PMO, wastewater lift (twice a day: LIEC pumps of North once in Jiabei New City; daytime and Boundary of the once at town and village nighttime, for wastewater 2 treatment facilities consecutive days) BOD5 = 5-day biochemical oxygen demand, CODCr = chemical oxygen demand, CSC = construction supervision company, EMA = environmental monitoring agency, EMR = emergency response plan, EEB = ecology and environment bureau, LAeq = equivalent continuous A-weighted sound pressure level, NH3-N = ammonia nitrogen, NOx = nitrogen oxide, OPF = operator of program facility, PM10 = particles measuring ≤10μm, PMO = program management office, IA = implementation agency, SO2 = sulfur dioxide, SS = suspended solids, TSP = total suspended particle, WSP = water supply plant. 1 Compared by measuring noise on each side of the noise barrier with a hand-held meter.

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Table EMP-5: Environmental Reporting Plan Report From To Frequency of Reporting Construction Phase Internal progress reports CSC IA Monthly Environmental impact monitoring Semiannual (June and December of EMA IA, PMO results each calendar year) Semi annual Environmental monitoring report PMO ADB (Jan-June; July to December of each calendar year) Environmental acceptance Licensed Within three months after component EEB, PMO, IA monitoring and audit reports institute completion Operation Phase (first year of operation) Environmental impact monitoring Semiannual (June and December the EMA IA, PMO results year) Environmental monitoring report PMO ADB Annual ADB = Asian Development Bank, CSC = construction supervision company, EEB = ecology and environment bureau, EMA = environmental monitoring agency, IA = implementing agency, PMO = program management office.

E. Institutional Strengthening and Training

13. The PMO and IA have no previous experience with ADB-funded projects or safeguard requirements. The experience of individual staff within the county, towns/townships, and county EEB for environmental management varies considerably. Domestic EIAs and project approvals generally include limited mitigation measures, but there is not yet a regulatory requirement in the PRC for EMPs of the scope required by ADB. Implementation of the current EMP represents a significant new task for the local agencies. The TA Consultant provided preliminary training on EMP implementation during the program preparation phase, including roles and responsibilities of contractors and CSCs for EMP implementation, program impacts, and mitigation measures.

14. During implementation, a capacity building program will be implemented for safeguards and technical capacity for the designed components, including: (i) implementation of the EMP, including the mitigation measures, monitoring, and reporting; (ii) operation and maintenance of the constructed facilities; (iii) integrated flood disaster prevention and response. The loan implementation consultants and Jiaxiang County EEB, facilitated by the PMO and IA, will provide training. Trainees will include the PMO, IA, contractors, CSCs, and relevant local bureaus. The training will be conducted in a rolling basis. Once there is new contractor mobilized or staff replacement, training will be organized. Capacity analysis and assessment at the end of the training will be performed by the LIEC to ensure that information provided is comprehended and can ultimately be implemented across the subjects. Additional training may be organized if necessary.

Table EMP-6: Program Environment Training Program Training Program Scope of Training Trainer Trainee Time Days Persons Procurement and • ADB procurement guidelines PICs PMO, IA 1 1 50 contract • Bidding document and contract preparation, management including EMP clauses (emphasize EMP • Risk of improper procurement and mitigation implementation) measures, and handling variation orders and contract management

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Training Program Scope of Training Trainer Trainee Time Days Persons Implementation of • ADB safeguard policy statement requirements LIEC, PMO, IA, 2 1 50 EMP for EMP implementation and progress reporting EEB contractors, • Roles, responsibilities, monitoring, inspection, CSCs reporting in EMP • Environment monitoring program; • Public consultation and participation; • GRM implementation, coordination, reporting, working with the public; • Environment, health and safety during program construction and operation for workers and the community; • Occupational health and safety, including (i) prevention and control of transmissible diseases and HIV/AIDS, (ii) implementation of COVID-19 health and safety plan (see Table EMP-2 and Attachment 1) Operation and • Topics to be tailored to each program LIEC, OPF, PMO 1 1 30 maintenance of component, including but not limited to: EEB the completed integrated pest management practices, safe program facilities sludge disposal process, odor control etc. Emergency • Organize drill on emergency conditions such as Experts OPF, PMO, 1 1 30 preparedness and flood, fire, natural disaster, epidemic, explosion, from other response planning etc. EEB, bureaus LIEC Total 210 Total Cost USD4,200 for training, 210 person-times in total, assuming USD20 for each person-time) ADB = Asian Development Bank, CAB = civil affairs bureau, EEB = environment protection bureau, EMP = environment management plan, GHG = greenhouse gas, GRM = grievance redress mechanism, IA = implementing agency, OPF = operator of program facilities, PIC = program implementation consultant, PMO = program management office.

F. Grievance Redress Mechanism

15. This program GRM is a joint GRM for (i) the initial identification, documentation, and preliminary management of both environmental and social safeguard-related grievances; (ii) the resolving of environmental safeguard-related grievances; and (iii) the resolving of, and/or timely referral of, social safeguard-related grievances. The GRM complies with ADB’s SPS (2009), and PRC requirements to protect the rights of citizens from construction-related environmental and/or social impacts. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Based on the regulation, the former Ministry of Environmental Protection published updated Measures on Environmental Letters and Visits (Decree No. 15) in December 2010.

16. The GRM is designed to achieve the following objectives: (i) provide channels of communication for local villages and communities to raise concerns about environmental and social- related grievances which might result from the program; (ii) prevent and mitigate adverse environmental and social impacts to villages and communities caused by program construction and operation, including those associated with resettlement; (iii) improve mutual trust and respect and promote productive relationships between the program agencies and local villages and communities; and (iv) build village and community acceptance of the program. The GRM is accessible to all members of the villages and communities, including women, youth, minorities and poverty-stricken villagers and residents. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, and social media.

17. Environmental and social safeguard-related grievances may differ considerably in the nature of grievances and agencies, procedures, and timing required to address them. The GRM provides a simple, time-based mechanism to meet program needs as required. Social safeguard issues beyond

109 the scope of the GRM procedures, including issues related to land acquisition or resettlement, will be referred to relevant agencies as needed.

18. The PMO Environment Officer and Social Officer and IA Environment Officers and Social Officers will lead the coordination of the GRM. However, all program agencies and staff will be trained in the GRM and are expected to take an active role in implementing the GRM. At the PMO level, the PMO Environment Officer and PMO Social Officer will establish a GRM tracking and documentation system, conduct daily coordination with the IA officers, arrange meetings and conduct site visits as necessary, maintain the overall program GRM database, and prepare the reporting inputs for progress reports to ADB. At the IA level, the environment and social officers will instruct contractors and CSCs on the GRM procedures, and coordinate with the local EEBs and other government divisions, as necessary. The LIEC and loan implementation social consultant will train and support PMO and IA staff.

19. The contact persons for different GRM entry points, such as the PMO and IA environmental and social officers, contractors, operators of project facilities, and EEB, will be updated prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites and on the websites of the local EEB.

20. Public grievances to be addressed by the GRM may include disturbance of agricultural activities, traffic, dust emissions, construction noise, inappropriate disposal of construction wastes, damage to private houses, safety measures for the protection of the public and construction workers, and/or water quality deterioration.

21. The GRM will be accessible to diverse members of the villages and community, including more vulnerable groups such as women, minority and poor. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available.

22. If a complaint is received, the PMO and IA officers will identify if the complaint is eligible for management under the GRM. Eligible complaints under the GRM include those where: (i) the complaint pertains to the program; and (ii) the issues arising in the complaint fall within the scope of environmental and/or social issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is not program-related; (ii) the nature of the issue is outside the mandate of the GRM (such as fraud or corruption); and/or (iii) other procedures would be more appropriate to address the issue. Ineligible complaints will be documented and provided to the relevant authorities and the complainant will be informed of these steps. The procedure and timeframe for the GRM are as follows and summarized in Figure EMP-1.

23. GRM procedure and timeframe. Procedures and timeframes for the grievance redress process are as follows: (i) Stage 1 (5 calendar days): If a concern arises during construction or operation, the affected person may submit a written or oral complaint to any of the program agencies and personnel involved and to whom the affected person feels most comfortable in raising the issue e.g., with the contractor, IA, PMO, and/or village committees (construction phase) or operator of the program facility, IA, and/or village committees (operation phase). Upon being approached by the affected person or being informed of the issue, the contractor will: (i) respectfully acknowledge the issue and immediately stop the causal activity (e.g., on-site construction causing high noise levels to a nearby household); (ii) not resume the activity until the complaint has been resolved; (iii) inform the IA of the incident on the same day of the incident occurring and how the contractor has responded or

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will respond; (iv) give a clear reply to the affected person within two calendar days; and (v) as far as possible, resolve the problem within five calendar days from receiving the complaint. The IA will: inform the PMO, local village committee, and Ecology and Environment Bureau of the incident within one working day of being informed by the contractor; and, subsequently, keep these parties informed at all stages. (ii) Stage 2 (5 calendar days): If the issue cannot be resolved in Stage 1, after five calendar days, the IA and/or PMO will take over responsibility. Eligibility of the complaint will be assessed and a recommended solution given to the complainant and contractors within two calendar days. If the complainant agrees upon the solution, the contractors and/or facility operators (in operation) will implement the solution within five calendar days from the IA or PMO, taking over the responsibility of the complaint. Written records will be made of all stages and outcomes. At the expiration of Stage 2, PMO will inform ADB of the outcome. (iii) Stage 3 (15 calendar days): If the PMO and/or IA can identify no solution, and/or the complainant is not satisfied with the proposed solution, the PMO and/or IA will organize, within seven (7) calendar days, a stakeholder meeting (including the complainant, contractor and/or operator of the facility, EEB, IA, and PMO). A solution acceptable to all shall be identified, including clear steps. The contractors (during construction) and facility operators (during operation) will immediately implement the agreed solution. All attempts will be made to fully resolve the issue within 15 calendar days. Written records will be made of all stages and outcomes. At the expiration of Stage 3, PMO will inform ADB of the outcome.

24. The contractor and/or IA will ensure the affected person is updated at all times, in each stage, of the progress toward resolving the grievance. The GRM does not affect the right of an affected person to submit their complaints to any agency they wish to, for example, the local village committee, community leaders, courts, PMO, IA, governments of Jiaxiang County, and/or ADB. Jiaxiang County is relatively small, and the geographic spread of the subprojects is not anticipated to hinder implementation of the GRM due to the combined approach of centralized (PMO) and de-centralized (IA or village committees) structure and responsibilities for the GRM.

25. The PMO and IA shall bear any and all costs of implementing the GRM, including meeting, travel, and/or accommodation costs of the program staff or affected person. The GRM will be implemented throughout program construction and at least the first year of operation for each program facility.

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ADB = Asian Development Bank, AP = affected person, EEB = Ecology and Environment Bureau, PMO = Program management office, GRM = grievance redress mechanism, LRB = Land Resources Bureau. Figure EMP-1: Environmental Grievance Redress Mechanism

G. Consultation, Participation, and Information Disclosure

26. Information disclosure and public consultation relating to environment safeguards will continue throughout program implementation. The local EEB and ADB will disclose the program’s environmental information as follows: (i) The program IEE will be disclosed on the program website at https://www.adb.org/. (ii) The tabular environmental impact assessment (in Chinese) will be disclosed on the website of Jiaxiang County EEB. (iii) All environmental monitoring reports during program implementation will be available at https://www.adb.org/. (iv) The program information and GRM entry points will be disclosed on the information board of each construction site (in Chinese).

27. Meaningful public consultation was conducted during program preparation (Section VI of the program IEE). During construction, the program will continue to seek public consultation and raise awareness of program activities, especially those may impact the public, such as noise, dust, or odor from dredged sediment. The public consultation plan is in Table EMP-7 and includes public participation in evaluating environmental benefits and impacts. PMO shall announce the time, place, theme, and registration method of the meeting to the public through the website and post announcements in places where the public can easily be informed 2 weeks prior to the meeting. PMO shall disclose the minutes and measures to address the public concerns truthfully to the public through the website, WeChat group, community posters, etc., within 5 working days after the consultation forum.

Table EMP-7: Public Consultation and Participation Plan Organizer Approach Times/Frequency Subjects Attendees

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Pre-construction phase PMO and Public Once before Introduce the program Residents IA, LIEC consultation construction activities, proposed adjacent to workshop and site commences mitigation measures, entry subproject sites visit points of the GRM (Table IV-1) Construction phase PMO and Questionnaire Once a year during Construction impacts; Workers, IA, LIEC survey, site visits, peak construction adjusting mitigation residents adjacent informal measures if necessary; to subproject sites interviews feedback (Table IV-1) PMO and Public At least once during Adjusting of mitigation Residents IA, LIEC consultation peak construction measures if necessary; adjacent to workshop and period construction impact; and subproject sites hearing comment and suggestion (Table IV-1) Operation stage PMO, IA, Consultation and At least once in first Effects of mitigation Affected persons and OPF site visits year of operation measures, impacts of and/or agencies operation, feedback Public workshop As needed based As above As above on consultations Public survey At least once after 1 Comments and Program year of operation suggestions beneficiaries LIEC = loan implementation environmental consultant, OPF = operator of program facilities, IA = implementing agency, PMO = program management office.

H. Cost Estimates

28. This section provides an estimate of the cost of EMP implementation. The cost comprises expenses for three categories: the mitigation measures described in Tables EMP-2 and 3; monitoring in Table EMP-4; and training in Table EMP-6. The cost estimation is calculated for five years of construction and the first-year operation. The costs do not include: (i) detailed design revisions and adjustments; (ii) internal monitoring and inspection of solid wastes disposal, soil erosion and re- vegetation, occupational health, and safety during construction, as this will be included in the design, construction, and construction supervision contracts; and (iii) salaries of PMO and IA staff. Costs for mitigation measures and training are based on estimates in the DEIA and/or the experience of the TA consultants from other similar projects. All costs were discussed with the DEIA Institute, PMO and IA.

29. The total estimated cost for EMP implementation (covering 5 years of construction and one year of operation), accounts for about 0.02% of the total program physical investment. The cost estimates are presented in Table EMP-8. These estimates cover the minimum required monitoring standards of the PRC and program scope. The contractors will pay construction-phase costs (as part of their contracts). For the operations phase, the facility operators will fund the operational costs for the program facilities. For the environmental monitoring in the operational phase: for the first year of operations, the PMO will contract a monitoring agency; for subsequent years, the IA and/or operators of the program facilities will pay for the monitoring (e.g., to comply with PRC monitoring requirements).

Table EMP-8: Cost Estimates for EMP Implementation Unit No. Total Cost per cost of cost year Item Unit (USD) units (USD) (USD) 1. Program management and capacity building – paid by PMO 1.1 Environmental capacity building throughout the program pm 20 210 4,200 implementation 1.2 Public consultation throughout the program implementation times 1,000 5 5,000 1.3 LIEC pm 6,000 12 72,000

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Unit No. Total Cost per cost of cost year Item Unit (USD) units (USD) (USD) 1.4 GRM year 1,000 6,000 Subtotal 87200 2. Environmental mitigation measures – paid by contractors 2.1 Water supply LS 1,950,000 2.2 Wastewater collection and LS 1,720,000 treatment Total 3,670,000 3. Environmental monitoring during construction and first year of operation by EMA – paid by PMO Subtotal (for six years) 150,000 Grand total (x USD10,000) 3,907,200 Proportion of total physical investment (%) 0.02% EMA = environmental monitoring agency, EMP = environmental management plan, GRM = grievance redress mechanism, LIEC = loan implementation environment consultant; pm = person month; LS = lump sum; CS = contractor of subproject.

I. Mechanisms for Feedback and Adjustment

30. Based on site inspections and monitoring reports, including environmental monitoring reports, the PMO with assistance from the LIEC will decide whether (i) EMP is adequate and effective and further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices. The effectiveness of mitigation measures and monitoring will be evaluated in the environmental progress reports submitted to ADB. The need to update and adjust the EMP will be reviewed when there are design changes, changes in construction methods and program, negative environmental monitoring results or inappropriate monitoring locations, and ineffective or inadequate mitigation measures.

31. The PMO will play a critical role in the feedback and adjustment mechanism with the support from the LIEC. Where unanticipated environmental impacts become apparent during program implementation, the PMO shall update the environmental assessment and EMP or prepare a new environmental assessment and EMP to assess the potential impacts, evaluate the alternatives, and outline mitigation measures and resources to address those impacts. In such cases, the PMO will inform ADB promptly on any proposed changes to the program and needed adjustments to the EMP. The updated EMP will be submitted to ADB for review and approval and will be disclosed on the ADB project website. PMO will assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required with the support from the LIEC.

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ATTACHMENT 2: COVID-19 HEALTH AND SAFETY PLAN: APPLICATION OF INTERNATIONAL GOOD PRACTICE OHS AT THE WORKPLACE Who Who Item Good Practices Implements Supervises Awareness • Preparation of awareness materials on COVID-19 e.g., Contractor CSC, PMO, materials signs, posters PMO, LIEC • Installation of awareness signs at work sites, for visibility to workers and the general public Detection • Control and document the entry/exit to the work site for Contractor CSC, PMO, Measures both workers and other parties. PMO, LIEC • Prevent sick workers from entering the site through checking temperatures of workers and other people entering the site. Require self-reporting prior to entering the site. • All workers to self-monitor their health, possibly with the use of questionnaires, and take their body temperature regularly. • Thermal screening at the workplace to be considered only in the context of a combination of measures for prevention and control of COVID-19 at the workplace and along with risk communication. Physical • Keep a distance of at least 1 meter between workers and Contractor CSC, PMO, Distancing minimize physical contact, ensure strict control over PMO, LIEC measures external access, and queue management (marking on the floor, barriers). • Reduce density of people in the building (no more than 1 person per every 10 square meters), physical spacing at least 1 meter apart for workstations and common spaces, such as entrances/exits, lifts, pantries/canteens, stairs, where congregation or queuing of employees or visitors/clients might occur. • Avoid crowding by staggering working hours to reduce the congregation of employees at common spaces such as entrances or exits. • Implement or enhance shift or split-team arrangements, or teleworking. • Minimize the movement of local workers in and out of the site (e.g., avoid workers returning home to affected areas, or returning to site from affected areas). • Minimize the workers’ contact with local community. Respiratory • All workers should wear a face mask. Contractor CSC, PMO, measures • If a worker is sick, they should not come to work. If a PMO, LIEC member of staff or a worker feels unwell while at work, provide a medical mask so that they may get home safely. • Where masks are used, whether in line with government policy or by personal choice, it is very important to ensure safe and proper use, care, and disposal.

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Who Who Item Good Practices Implements Supervises Hand Hygiene • Regular and thorough handwashing with soap and water Contractor CSC, PMO, measures or hand hygiene with alcohol-based hand-rub (a) before PMO, LIEC starting work, before eating, frequently during the work shift, especially after contact with co-workers or customers, (b) after going to the bathroom, after contact with secretions, excretions and body fluids, after contact with potentially contaminated objects (gloves, clothing, masks, used tissues, and waste), and immediately after removing gloves and other protective equipment but before touching eyes, nose, or mouth. • Hand hygiene stations, such as hand washing and hand rub dispensers, should be put in prominent places around the workplace and be made accessible to all staff, contractors, clients or customers, and visitors along with communication materials to promote hand hygiene Cleaning and • Cleaning and Disinfection of all site facilities, including Contractor CSC, PMO, Disinfection offices, accommodation, canteens, and common spaces; PMO, LIEC • Cleaning (soap, water, and mechanical action) to remove dirt, debris, and other materials from surfaces. Disinfection of dirty surfaces and objects only after cleaning. • Most common disinfectants – sodium hypochlorite (bleach) of surface at concentration 0.1% or alcohol at least 70% concentration for surfaces which can be damaged by sodium hypochlorite. • Priority disinfection of high-touch surfaces – commonly used areas, door and window handles, light switches, kitchen and food preparation areas, bathroom surfaces, toilets and taps, touchscreen personal devices, personal computer keyboards, and work surfaces. • Disinfectant solutions must always be prepared and used according to the manufacturer’s instructions, including instructions to protect the safety and health of disinfection workers, use of personal protective equipment, and avoiding mixing different chemical disinfectants. • Provide appropriate PPEs to the cleaners. • Manage the waste as the medical waste and dispose of it in accordance with local regulations.

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Who Who Item Good Practices Implements Supervises Response • Workers who are unwell or who develop symptoms Contractor CSC, PMO, measures if consistent with COVID-19 to stay at home, self-isolate, PMO, LIEC workers found and contact a medical professional or the local COVID- with COVID-19 19 information line for advice on testing and referral symptoms (consider telemedicine and flexible sick leave policy). • Standard operating procedures to be prepared to manage a person who becomes sick at the workplace and is suspected of having COVID-19, including isolation, contact tracing and disinfection. • People who were in close contact at the workplace with persons with laboratory-confirmed COVID-19 should be quarantined for 14 days from the last time of the contact in accordance with WHO recommendations. • Set out differentiated procedures for the treatment of sick persons, based on the case severity. Pay workers throughout periods of illness, isolation, or quarantine. • Set aside a part of worker accommodation for precautionary self-quarantine. • Establish communications with local medical services and refer sick workers to them. Adjusting Work • Consider changes to work processes and timings to Contractor CSC, PMO, Practices and minimize contact between workers (e.g., decreasing the PMO, LIEC Manage Work size of work team, changing to a 24-hour work rotation). Related Travels • Cancel or postpone non-essential travel to areas with community transmission of COVID-19. • Provide hand sanitizer to workers who must travel, advise workers to comply with instructions from local authorities where they are travelling, as well as information on whom to contact if they feel ill while travelling. • Workers returning from an area where COVID-19 transmission is occurring should monitor themselves for symptoms for 14 days and take their temperature twice a day; if they are feeling unwell, they should stay at home, self-isolate, and contact a medical professional. Communication • Carefully manage the relations with the community with Contractor CSC, PMO, and Contact with clear and regular communication. PMO, LIEC the Community • Beware of the procedures put in place at the site to address issues related to COVID-19. • Practice social distancing with the local community.

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Who Who Item Good Practices Implements Supervises Risk • Provide posters, videos, and electronic message boards Contractor CSC, PMO, communication, to increase awareness of COVID-19 among workers and PMO, LIEC training, and promote safe individual practices at the workplace and education engage workers in providing feedback on the preventive measures and their effectiveness. • Provide regular information about the risk of COVID-19 using official sources, such as government agencies and WHO, and emphasize the effectiveness of adopting protective measures and counteracting rumors and misinformation. • Special attention should be given to reaching out to and engaging vulnerable and marginalized groups of workers, such as those in the informal economy and migrant workers, domestic workers, subcontracted and self- employed workers, and those working under digital labor platforms. • Train the workers on procedures in place by the program, and their own responsibilities in implementing them.

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ATTACHMENT 3: SAFEGUARD ASSESSMENT MATRIX Policy Actions Environment Safeguard Social Safeguard Mitigation Measures Output 1: Water sector strategies and operations strengthened This output comprises all of the multitranche, Output 1 will be implemented The policy actions taken up Not applicable. stand-alone PBL. Policy actions under each of through three tranches. under Output 1 will involve the three PBL tranches are grouped into five strengthening of strategies reform areas. Tranche 1 policy actions focus on and operations in the five implementing the results of the reform areas identified. The first reform area develops an IWMP that comprehensive climate risk and None of these policy actions establishes the framework for countywide adaptation assessment and will entail involuntary land integration and cross-agency coordination of preparing an IWMP and sponge city acquisition and will not water sector planning, management, and service planning measures. These will be result to any physical or delivery. complemented by the formation of economic displacement and relevant cross-sector steering involuntary resettlement The second reform area includes issuing a new committees and working groups. impacts are not expected. policy to sanction the establishment of a single countywide water utility offering water supply and Policy actions under tranche 2 Ethnic minorities will benefit sewerage services. This will overcome the relate to measures to implement the as much as the Han current disparity in the quality of urban and rural IWMP including mechanisms to population will do from the water services by ensuring a consolidated rate ensure whole-of-water cycle improved water supply and and financial base, technical expertise, management; establishment of a wastewater treatment equipment, and other resources in ensuring a single countywide state-owned components of the program. countywide baseline standard of services. water utility; improved coordination The program will have no and integration of water resources negative impacts on ethnic The third reform area will foster contemporary management and provision of water minorities. The management of waterways to increase their services across agencies; and the strengthened water and multi-functionality and to enhance their establishment of sustainable wastewater operations will ecological values and ecosystem services. financing measures to attract green ensure improvement of Three of the interagency working groups on (i) financing, reform tariffs, and services delivery for the integrated waterway environmental and flood provide a road map for private beneficiaries, regardless of management, (ii) urban sponge city planning and sector participation in Jiaxiang ethnicity. construction and (iii) sustainable agricultural County. water management practices will develop management and implementation plans in their Policy actions under tranche 3 seek respective portfolios. to document achievements of the reform measures and to ensure the The fourth reform area will ensure Jiaxiang measures undertaken are County will have access to a diverse portfolio of sustained beyond the project period water sources including groundwater, surface and are scaled up and extended to water, recycled wastewater, and stormwater. adjoining counties and beyond. All

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Policy Actions Environment Safeguard Social Safeguard Mitigation Measures This will be strengthened by an evidence-based policy actions under these three policy on regulating sustainable groundwater tranches do not involve any abstraction rates. Digital technology advances physical works and no negative will be implemented at a pilot scale using an environmental impacts are Internet-of-Things platform, with associated expected. sensors and real-time control infrastructure to optimize the selection. This will ensure fit-for- The environmental implications of purpose utilization of the diverse water sources the plans to be developed under the based on water quality and priority protection of policy actions will be assessed in the groundwater resources in Jiaxiang County. finalizing the plan according to the requirement of General Outline of The fifth reform area will ensure that lessons Technical Guidelines for Planning learned during the implementation of integrated Environmental Impact Assessment water management are shared across different (HJ 130-2019). levels of government with the aim to extend the adoption of county-level integrated water management across Shandong Province and demonstrate it is an effective means of local operationalization of PRC policies and strategies for integrated water management, water environment protection, and rural vitalization.

Output 2: Sustainable water supply with diverse water sources and smart technology established Output 3: Wastewater services expanded and improved with smart technology Outputs 2 and 3 are physical Outputs 2 and 3 are part of Implementation of the investment component. All policy the investment components environmental actions under output 1 will reinforce and will complement the management plan and outputs 2 and 3 by bridging the policy actions under Output resettlement plan policy and institutional gaps in 1. The outputs will involve provisions will ensure Jiaxiang County’s water sector and physical improvements to compliance with PRC mitigating the changing climate risk. infrastructure components requirements and ADB The construction and operation which will trigger involuntary Safeguard Policy related environmental impact of resettlement impacts. Statement (2009) output 2 and 3 are assessed in the requirements. project initial environmental Ethnic minorities will benefit examination. as much as the Han population from the improved water supply and wastewater treatment

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Policy Actions Environment Safeguard Social Safeguard Mitigation Measures components of the program. The program will have no negative impacts on ethnic minorities. Output 4: Institutional and program management capacity enhanced This output will implement a comprehensive Output 4 will be financed by project This output will focus on Not applicable. program of institutional capacity building and loan. All activities under output 4 do building capacities on skills development in integrated water not involve any physical works and institutional and program management of relevant stakeholders in no negative environmental impacts management capacities and Shandong Provincial Government, Jining are expected. will not entail land Municipal Government, and Jiaxiang County acquisition or involuntary Government. resettlement impacts.

IWMP = integrated water management strategic plan, PBL = policy-based loan. Source: Asian Development Bank.

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ATTACHMENT 4: ENVIRONMENTAL DUE DILIGENCE FOR THE COMPLETED WATER SUPPLY PIPES UNDER SUBPROJECT 2

1. Introduction

1. The subproject 2-Water Supply Pipe Network will support construction of 4950 km pipes in villages and townships. The layout of the village pipes was indicated in Figure II-6 and Figure II-10. As there is urgent need to improve water supply services for the villagers, Jiaxiang County Government approved the Shandong Xiangcheng Construction Company to construction the water supply pipes. The construction started from the second half of 2019. Total of 4800 km water supply pipes in Qingshan town, Liangbaosi town, Laosengtang town, Acheng town and Dongcheng town constructed by the end of 2020. This 4800 km pipes are financed by the counterpart funds. The total contract value is CNY93.9798 million. The remaining 150 km will be built under the subproject 2.

2. To ensure the construction of the 4800 km water supply pipes complies with both of the requirements of ADB Safeguard Statement (2009) and PRC environmental related regulations, environmental due diligence was conducted by the TRTA consultants during April 2021. The due diligence comprises of desktop review, site visit on 20-22 April and interview with the staff from water affairs, Shandong Xiangcheng Construction Company and local villagers.

2. Key Findings

ADB Safeguard Compliance Requirement 1: Environment Environmental Compliance. The domestic EIA for the water supply pipe construction Assessment was approved by the Jiaxiang County Environmental Protection Bureau in 2016 (see Figure 1).

Environmental Planning Compliance. The EMP is part of the domestic EIA. and Management Information Disclosure Compliance. The project information is disclosed on the website of Jining Government on December 9, 2019. http://www.jining.gov.cn/art/2019/12/9/art_33596_2385522.html

The project progress was reported in local news and TV many times. Consultation and Noncompliance. It was classified as PRC category B at environment. Participation Consultation and participation is only required for the project with significant environmental impact (category A) according to the PRC regulations.

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Grievance Redress Compliance. The project followed the PRC environmental grievance Mechanism redress mechanism through the unified portal maintained by the environmental department (“12369” hotline and http://jubao.mee.gov.cn/netreport/netreport/index).

Two households at Liangbaosi town were interviewed. The respondents appreciated the improvement of water supply services. The construction period was short and the environmental impacts to the villagers were minor. The Shandong Xiangcheng Construction Company and Jiaxiang Water Affairs Bureau confirmed they did not receive any environmental related complaints during construction.

Figure

Monitoring and Compliance. The environmental monitoring and reporting was carried Reporting out as part of the construction supervision by the CSCs. Unanticipated Compliance. No unanticipated environmental impacts occurred during Environmental Impacts construction. Biodiversity Compliance. The pipes were laid along the existing roads and streets in Conservation and the villages. No natural resources or critical habitats involved. Sustainable Natural Resources Management Pollution Prevention Compliance. Shandong Xiangcheng Construction Company provided and Abatement several photos showing certain environmental mitigation measures were taken during construction.

The site inspection conducted by the TRTA environmental consultant concluded that the construction site has been well restored.

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Water metering Tap water in the villager’s house Health and Safety Compliance. No health and safety accidents founded during construction. Physical Cultural Compliance. No physical cultural resources involved. Resources

Key points of the domestic EIA approval:

Upon review, the project complies with the local government planning. Under the premise of implementing the following environmental protection measures, it is agreed to the construction of the project.

(i) Strictly following the good construction practices to prevent dust from materials transportation, loading and uploading. The open-air storage yard of raw materials shall be covered. The landform shall be restored and greening shall be carried out immediately after the completion of the project. (ii) Construction wastewater shall be reused after sedimentation. (iii) During construction, low-noise equipment shall be selected. Construction activities shall be properly arranged. All construction equipment shall be regularly maintained to ensure the noise emissions meet the ‘Environmental Noise Emission Standards for Construction Sites” (GB12523-2011). (iv) Most of the earthwork during the construction period shall be backfilled. The spoil shall be used for road or infrastructure construction.

Figure 1: Domestic EIA Approval

3. Conclusions

3. The construction of the 4800 km water supply pipes is generally compliance with the environmental requirements of PRC and ADB. The shortcoming was inadequate public

124 consultation and participation during implementation. The construction of the remaining 150 km is required to follow the public consultation plan as defined in the Table EMP-7.