3. Environmental Baseline

PEOPLE’S REPUBLIC OF CHINA YUNNAN PROVINCIAL GOVERNMENT THE WORLD BANK

HAOTONG ENTRAL RBAN NVIRONMENT ROJECT

Public Disclosure Authorized Z C U E P （YUEP PHASE II—ZHAOTONG COMPONENT）

EXECUTIVE SUMMARY OF EA

Public Disclosure Authorized

YUNNAN INSTITUTE OF ENVIRONMENT SCIENCE YUNNAN PROJECT MANAGEMENT OFFICE

MARCH, 2010 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

TABLE OF CONTENTS

CURRENCIES & OTHER UNITS ...... VII CHEMICAL ABBREVIATIONS ...... VII 1. INTRODUCTION ...... 8 1.1 General ...... 8 1.2 Background to EA Studies ...... 9 1.3 Development of EA Report ...... 11 2. BACKGROUND TO THE PROJECT& PROJECT DESCRIPTION ...... 12 2.1 City Master Plan of Zhaotong Central Urban Area ...... 12 2.2 Summary of ZTUEP Subprojects ...... 13 2.3 Project Description ...... 15 2.3.1 Water Supply Sub-project ...... 16 2.3.2 Wastewater Sub-project ...... 18 2.3.3 River Rehabilitation Sub-project ...... 18 2.3.4 Construction Land Use and Method ...... 20 2.3.5 Project Investment Estimation and Implementation Schedule .... 23 2.4 Linked Projects and Plans ...... 23 3. ENVIRONMENTAL BASELINE ...... 25 3.1 Natural Environment ...... 25 3.2 Social Environemtal ...... 28 3.3 Existing Wate Supply, Sewerage and Urban Riverway ...... 29 3.3.1 Water Supply and Dranage System ...... 29 3.3.2 Existing Urban Riverway ...... 30 3.4 Existing Environment Quality in Porject Area ...... 31 3.4.1 Existing Water Environment Quality ...... 31 3.4.2 Existing Air Environment Quality ...... 32 3.4.3 Existing Acoustic Environment Quality ...... 32 3.4.4 Existing Ecological Environment ...... 32 3.4.5 Industrial Pollution Source Related with this project ...... 33 3.4.6 River Silts Monitoring ...... 35 4. ENVIRONMENTAL IMPACT ASSESSMENT ...... 36 4.1 Anticipated Benefit from ZTUEP ...... 36 4.2 Impact and Mitigation During Project Design ...... 36 4.2.1 Land Occupation & Resettlement: ...... 36 4.2.2 Cultural Relics ...... 37 4.2.3 Mitigation Measures ...... 37

Page II ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

4.3 Impact and Mitigation Measures Related to Construction Phase ...... 38 4.3.1 Potential Nagative Impacts ...... 38 4.3.2 Mitigation Measures ...... 41 4.4 Impact and Mitigation Measures Related to Operation Phase ...... 44 4.4.1 Impact and Mitigation Measures for Water Supply and Wastewater Sub-projects During Operation ...... 44 4.4.2 Impact and Mitigation Measures for River Rehabilitation Sub-projects During Operation ...... 46 4.5 Environmental Risk Analytsis and Mitigation Measures ...... 48 5. ANALYSIS OF ALTERNATIVES ...... 50 5.1 Alternatives of“With” and “Without” Sub-projects ...... 50 5.2 Location Alternatives for WSPs and WWTP Sites ...... 51 5.2.1 Location Alternatives of WSPs ...... 51 5.2.2 Lacation Alternatives for WWTP Site ...... 51 5.3 Technical Process Alternatives ...... 52 5.3.1 WWTP Treatment Process ...... 52 5.3.2 Disinfection Process of WWTP ...... 52 5.4 Alternatives for Solid Waste Disposal ...... 52 5.4.1 Dredged Silt Drying Alternatives ...... 52 5.4.2 River Silts Disposal Alternatives ...... 53 5.4.3 WWTP Sludge Disposal Alternatives ...... 54 5.5 Construction Method Alternatives ...... 54 5.5.1 Pipelinge Installation Alternatives ...... 54 5.5.2 River Silts Dredging Alternatives ...... 54 6 PUBLIC INVOLVEMENT AND INFORMATION DISCLOSURE ...... 55 6.1 Public Consultation ...... 55 6.2Information Disclusure ...... 55 6.3 Results and Conclusion ...... 56 7 ENVIRONMENTAL MANAGEMENT PLAN (EMP) ...... 59 7.1 Organizations ...... 59 7.1.1 Organization Framework and Responsibility ...... 59 7.1.2 Environmental Management Staffing of Sub-projects ...... 62 7.2 Environmental Mitigation and Monitoring ...... 62 7.2.1 Mitigation measures ...... 62 7.2.2 Monitoring and Report ...... 62 7.3 Training on Environmental Management ...... 63 8 CONCLUSION AND RECOMMENDATIONS OF ENVIRONMENTAL ASSESSMENT ...... 64 8.1 Conclusion of environmental assessment ...... 64 8.2 Recommendations ...... 66

Page III ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

LIST OF TABLES

Table 1-1 Scope of EIAs ...... 10 Table 1-2 Metric of Factors for EA ...... 11 Table 2-1 Project Owners ...... 16 Table 2-2 Main Works of Water Supply Sub-project ...... 16 Table 2-3 Engineering Quantities of Liji and Tuwei River Banks Rehabilitation ...... 20 Table 2-4 Volume of Silts to be Dredged From Each River Sections ...... 20 Table 2-5 Statistic of the Land Acquisition ZTUEP ...... 20 Table 2-6 Statistic of the Collective-Owned Land to be Acquired ...... 22 Table 2-7 River Silt Dredging Method ...... 22 Table 2-8 Layout of River Silt Drying Pits ...... 23 Table 2-9 Dams Involved in Project and Basic Information ...... 24 Table 3-1 Parameter of Liji River and Tuwei River ...... 31 Table 3-2 List for Main Industrial Wastewater Discharge in Planned Urban Area ...... 33 Table 3-3 List Main Industrial Exhaust Gas Emission in Urban Area ...... 34 Table 4-1 statistic of the land acquisition for the sub-projects of ZTUEP ...... 37 Table 4-2 statistic of the collective-owned land ownership for acquisition ...... 37 Table 4-3. Projection on potential soil erosion from the river rehabilitation subproject during construction ...... 40 Table 6-1 Public Informed ...... 55 Table 6-2 Information Disclosure ...... 56 Table 6-3 Summary of the Public Consultation (Individuals) ...... 56 Table 6-4 Summary of Public Consultation (Social Groups) ...... 57 Table 7-1 Environment Management Institutional Arrangement ...... 60 Table 7-2 Environmental Management Personnel Setup for Sub-projects ...... 62 Table 7-3 Environment Training Program and Budget ...... 63 Table 7-4 Total Budget of the EMP ...... 64

Page IV ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

LIST OF FIGURES

Figure 2-1 City Master Plan of Zhaotong Central Urban Area ...... 13 Figure 2-2 Geographic Location of Yunnan Province in China ...... 14 Figure 2-3 Geographic Location of ZTUEP ...... 15 Figure 2-4 Layout of Water Supply Sub-project ...... 17 Figure 2-5 Layout of WWTP and Interception Trunk Sewers ...... 19 Figure 2-6 Layout for the River Rehabilitation Sub-project, Area to be Assessed, Schematic Distribution of Silt Sampling Points ...... 21 Figure 7-1 Environmental Management Organizational Framework ...... 60

Page V ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

ABBREVIATIONS

CEA Consolidated Environmental Assessment CSEE Construction Supervision Environmental Engineer CSEMP Construction Site Environmental Management Plan DI Design Institute EA Environmental Assessment EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environmental Monitoring Station EPB Environmental Protection Bureau EMC Enviornmental Management Coordinator IA Implementation Agency MSWM Municipal Solid Waste Management MEP Ministry of Environmental Protection PO Project Owner PMO Project Management Office PRC The People’s Republic of China SE Supervision Engineer TOR Terms of Reference WB World Bank WS Water Supply WSP Water Supply Plant WWTP Wastewater Treatment Plant YEP Yunnan Environment Project YEPD Yunnan Provincial Environmental Protection Department YNPMO Yunnan Provincial YUEP Project Management Office YUEP Yunnan Urban Environment Project ZTM Zhaotong Municipality ZYD Zhaoyang District ZTUEP Zhaotong (Central) Urban Environment Project ZMWSSC Zhaotong Municipal Water Supply and Sewerage Company ZUIDC Zhaotong Urban Investment and Development Co. Ltd

Page VI ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

CURRENCIES & OTHER UNITS

MU Area Unit (1MU＝0.0667ha) RMB Chinese Yuan (Renminbi) USD United States Dollar Conversion rate 1 USD＝6.8 RMB

CHEMICAL ABBREVIATIONS

A²/O Anaerobic-anoxic-oxic biologic phosphorus & nitrogen

BOD5 Biochemical Oxygen Demand (5 days) COD Chemical Oxygen Demand

CODMn Permanganate Index NH3-N Ammonia Nitrogen SBR Sequencing Batch Reactor Processing SS Suspended Solids TN Total Nitrogen TP Total Phosphorus TSP Total Suspended Particulates TSS Total Suspended Solids Leq Equivalent Continuous Noise Level

Page VII ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

1. INTRODUCTION

1.1 General

Being located at the central area of Southwest of China, Zhaotong Municipality is the “Dragon tail” of so call “the Changjiang Economic Belt”. It is the important corridor for Yunnan to access to the other provinces and ocean and the “north gateway for Yunnan to open to inland of China. Zhaotong Municipality will enjoys a great prosperity: by 2020, it will be developed into “three Bases and one Barrier”, namely, the important energy base, the heavy chemistry industrial base, and the agricultural produce processing base with special local characterizes, and ecological barrier of upstream of the Yangtze River. By that time, Zhaotong will become the important frontier city for hydro-power development of the Yangtze River, the services base at the middle route of China for “power transmission from west to east”. The central urban area of Zhaotong Municipality is in Zhaoyang District, where the municipal government seats. It is political, economical, cultural and information centre of the municipality. Zhaoyang district is located at the hinterland of “National Panxi—Liupan Economic Development Zone” at the junction among Yunnan, Guizhou and Sichuan, and “land development zone at lower reach of the Jingsha River. Geographically, it is in the centre of the four big cities (Kunming, Chengdu, Chongqing, Guiyang) in Southwest China. It is an important gateway of Yunnan linking with the Changjiang Economic Belt, as well as the corridor of Yunnan to open inward and outward. It is the central urban area of the northeast Yunnan province according to Economic Zoning of Yunnan Province. Zhaoyang used to be the only land way to go if one has to travel from Yunnan to Sichuan and Guiyang on land and communications centre of the well-know China’s “south silk road”, as well as one of the three cultural originating places in Yunnan. Zhaoyang is rich in mineral resources. The proven lignite reserves here are 8.158 billion tons, ranking the send in China. Zhaoyang Industrial Zone is one of the key important industrial zones in Yunnan. Zhaoyang is one of the high-quality commercial apple production bases in south part of China. It is also the hometown of “China’s black –neck crane”. With the advancement of western China opening strategy and driven by the implementation of such key programs as “Free Trade Zone for China—ASEAN” and “Power Transmission from Western to Eastern China”, and improvement of transportation condition, the position of Zhaoyang be the central urban area become greatly significant. Zhaoyang District is under rapid urbanization process to move towards a medium-sized modern ecological city, locating at northeast Yunnan, influencing Yunnan, Sichuan and Guizhou provinces, integrating industrial, commercial, tourist sectors with strong local characteristics. With the growth of urban population, industrialization and urbanization, and improved improvement people’s living condition, the existing urban infrastructure, such as water supply, sewerage can’t meet the needs of urban development. Water environmental pollution is series in Zhaoyang district. The Governments of Zhaotong Municipality and Zhaoyang District attach great importance to urban environmental infrastructure and urban river courses rehabilitation, plan to seek financial support from the World Bank to implement ZTUEP to drive the improvement of urban eco-environment during the acerbated urban development, and to create a sound environment for the sustainable socio-economic development in Zhaotong. The proposed ZTUEP includes three sub-projects: a water supply sub-project, a wastewater sub-project and an urban river rehabilitation sub-project. This plan was strong supported by authorities at national level and the ZTUEP was included as a candidate project in the World Bank’s 2010 lending program. Yunnan Province and the World Bank have been cooperating in the field of urban and environment for many years, in the nine-five-year (1996-2000) and the tenth-five-year (2001-2005) periods, Yunnan implemented the World Bank financed Yunnan Environment

Page 8 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Project (YEP), dominated by sub-projects for pollution reduction of Dianchi Lake Basin. A number of environmental infrastructures of wastewater water collection and treatment, solid waste management were constructed under YEP, which play active role in the integrated Dianchi Lake basin management and improving urban environment in the important urban areas. In order to further promote the integrated pollution control in the key watersheds and improving urban development while acerbating urban development. Yunnan and the World Bank initiated second cooperation in urban environment sector. The Yunnan Urban Environment Project (YUEP) is an on-going WB financed project, approved by the WB Board on May 5, 2009, being implemented in Kunming Municipality, Dali Prefecture and Wenshan Prefecture. During the preparation of YUEP, some sub-projects, triggering the WB safeguard policy OP 17.50 “Projects on International Waterways”, withdrawn from YUEP. Based on the scope of YUEP during the WB project appraisal and willingness of project owners, the YUEP were separated into two phases: YUEP phase I, which is on-going, includes 18 sub-projects with total estimated investment of 1.223 billion RMB, of which 90.0 million USD is to be financed by IBRD loan. Resulting in 60.0 million USD loan saving according to the initial proposed YUEP approved by the State Council to utilize 150 million USD, ZTUEP is to be the WB additional financing as the second phase of YUEP for Zhaotong Municipality to implement enlarged the project development impact, and outcome of YUEP. As a component of YUEP phase II of the additional financing of WB, ZTUEP comprises following four sub-projects: z Water Supply Sub-project: including a raw water transmission pipeline from Yudong Reservoir, a new Water Supply Plant (WSP) and its water distribution network serving for south, east and west parts of the north urban area; a WSP using spring water already delivered by an exiting raw water transmission pipeline from Dalongdong and its water distribution network serving for north end of the north urban area. z Wastewater Sub-project: including the sewer network in the new urban area in the north part and a Wastewater Treatment Plant (WWTP) to be extended at the existing WWTP site serving for both the old urban area and new urban area z River Rehabilitation Sub-project in urban area: including: embankment rehabilitation, interception of sewage (incorporated in the wastewater sub-project), river embankment improvement (slope protection, embankment rehabilitation and reinforcement), river silt dredging and other auxiliary facilities, with total length of 48.162 km. z Technical Assistance: will provide the services including engineering design review, construction supervision, operation assistance and institutional capacity building, as well as provision of necessary monitoring equipments for Zhaoyang Environmental Monitoring Station, to improve the monitoring capability. The proposed ZTUEP would provide urban environment infrastructure of waste supply and sewerage system, and would improve river environment for the new urban development area. The proposal is consistent with the project development objective of the YUEP, which is, in part, to assist Yunnan Province in improving the effectiveness and coverage of critical urban infrastructure services in selected counties, through investments in systems for the management of wastewater, water supply, solid waste, river environment, and cultural heritage. 1.2 Background to EA Studies

Relevant regulatory, policy and administrative requirements for environmental assessment of development projects in China, both at National and local levels were followed during the preparation and evaluation of environmental assessment, as were the WB’s ten safeguard policies. Most relevant laws and regulations applied in EA are as follows: Page 9 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Environmental Protection Law of the People’s Republic of China: 1989.12.26 Law on Environmental Impact Assessment of the People’s Republic of China: 2002.10.28 Law of the People's Republic of China on Prevention and Control of Water Pollution: 1996.05.15 Law of the Peoples Republic of China on the Prevention and Control of Atmospheric Pollution: 2000.04.29 Law of the People's Republic of China on Prevention and Control of Pollution From Environmental Noise: 1996.10.29 Law of the People's Republic of China on Prevention of Environmental Pollution Caused by Solid Waste: 2004.12.29 Regulations on the Administration of Construction Project Environmental Protection: 1992.08.17 Circular on Further Strengthening the Administration of Environmental Impact Assessment of Projects Financed by Loans of International Financial Organizations: 1993.06.21 Circular on Strenthening management of environmental impact assessment and preventing environmental risks issued by Ministry of Environmental Protection Document No. [2005]152. Technical Guidelines and Standards for Environmental Impact Assessment Environment Quality Standards and Pollutant Discharge and Control Standards Of the ten World Bank safeguard policies, OP4.01 Environmental Assessment, OP4.37 Safety of Dams, BP17.50 Public Disclosure are applied in EA. Other WB policies that are not triggered by ZTUEP are not applied in this EA. Scope of EA Table 1-1 Scope of EIAs Scope of EIA No. Name of sub-project Non-pollution Air Water environment Acoustical environment ecology 1 Taiping WSP, Pressurized In 500m 5km at the 100m around the site vegetation around the pumping station of Qingmen downstream of the site WSP, 2 water resources WWTP effluent Water supply sites connecting the Tuwei Raw water pipeline, Water in 300m at both River 100m around the site Vegetation in both distribution pipeline sides sides Water source In 500m 2 Water drainage WWTP 500m at the During the construction: 100m downstream of Tuwei around the site; During the 100m around river connecting the operation: plant boundary and WWTP WWTP discharge nearby sensitive point, and 50m outlet alone both sides of pipeline WW pipeline 100m alone 300m alone both sides of pipeline both sides of pipeline 3 River regulation The both sides 48.162km alone the The both sides for the regulation at 100m at river and at the river river reach for the river reach and 100m at the main coastal,300m in/around reach for the regulation constructing site sludge dewatering regulation and plant 200m at the main constructing site

Page 10 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

EA Time Span In order to analyze the works and alternatives in different angle for environmental protection during the pre-design phase and to maximize the environment efficiency and to avoid the negative impact during the project construction, the EIA work has already launched during the project preparation. Moreover, the assessment is conducted in constructing phase and operational phase. Identification of Factors for EA The design of ZTUEP is to improve the urban infrastructure facilities and urban environment quality in the project city, which is significant for accelerating the sustainable development of the urban social economy roundly. However, the potential negative impact on the eco-environment exists during the implementation and operation of the project, the potential negative impact will include: Social environment: including the land acquisition / land borrowing for temporary use, the impact of the resettlement, as well as the impact on the road transportation and the urban sight. Eco-environment: including the change for land use pattern, the impact on the vegetation, soil erosion, and the impact of river slit dredging on the bio-diversity. Water environfment: domestic wastewater during the construction, surface runoff, Industrial and domestic wastewater during the operation.

Table 1-2 Metric of Factors for EA Activities during the Activities during the construction operation Transportation Solid waste Site Site Facilities of constructing Construction transportation selection preparation operation materials and disposal Air -S -S -S -L -L -S Natural Water body -S -S -S -S -L +L environment Acoustical -S -S -M -L -S -S environment Land use -L -S -S +M -L -S Soil erosion -M -L -M -L =S -S Eco-environment Vegetation -L -L -L -L -L -S Animals -S -S -M -S -L -S Landscape -L -L -L _L -M +L Employment +S +S +S +S +M +M Individual +S +S +S +S +M +M incomes Social Local economy +S +S +S +S +M +M environment Quality for -S -S -S -S -S +M living Tourism -S -S -S -S -S +L Note: S: slight impact; M: moderate impact; L: comparatively large impact; +: positive impact; -: negative impact 1.3 Development of EA Report

According to “the Environmental Assessment Impact Law of People’s Republic of China”, “Construction Project Environmental Protection Management Ordinance”, and “Notice to Reinforce the EIA Management to Construction Projects Using Loans from International Financial Organizations”, and the requirements from WB Safeguard Policies, as well as the domestic and WB EIA process, project specific EA examines the project’s potential negative and positive environmental impact, compares them with those of feasible alternatives (including “without project” situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performances. The EA is also to provide the evidence for WB independent assessment on YUEP phase II, and for

Page 11 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA government integrated management and environmental administrations to make decisions and fulfill management. ZTUEP is the phase II of the on-going YUEP, it is to subject to the integrated coordination and management of YPMO under the overall YUEP management organizational framework. In the mean time, at the Zhaoyang District level, a ZTUEP project leading group, comprising members of local Development and Reform Bureau, Financial Bureau, Construction Bureau, Environmental Protection Bureau Water Resources was established with responsibility of strengthening leadership, coordination and supervision of the project implementation. In order to strengthen the overall YUEP project management, a “YUEP Management Regulation” was promulgated by YN and enacted since November 1, 2009, and it is also applicable to ZTUEP. Yunnan Institute of Environmental Science (YIES) who holds EA Certificate Class A with long history and experience in EA was contracted by Zhaoyang District Project Management Office （ZYPMO）as EA consultant for both the individual EIAs and CEA preparation. Based on the feasibility studies of the sub-project, YIES, conducted the field survey and collected relevant information and date as well as the testing of the silt to be dredged in the river courses. Analysis was made on the features, context, the intended size of construction, technical process, and construction method to be used, major pollutant and possible impacts of each sub-project. The scope of, assessment grade, assessment standard to be referred, and the key of environmental factors to be assessed are defined as the TOR for processing EIAs, and carried out the EIAs for the three sub-projects. The Consolidated Environment Assessment (CEA) is prepared based on the individual EIAs, which consolidate all the findings, assessment results of EIAs in accordance of domestic Technical Guidance on EIA and WB Safeguard Policy. With respect to the preparation of EA documentation, following documents are provided for WB appraisal: Executive Summary of EA prepared based on CEA (in English) Consolidated EA which include EMP in details (in both Chinese and English)

2. BACKGROUND TO THE PROJECT& PROJECT DESCRIPTION

2.1 City Master Plan of Zhaotong Central Urban Area

In addition to socio-econmic development plan and environmental protection program, ZTUEP is guided by the city master plan. According to the “Updated City Master Plan of Zhaotong Municipality (2007-2025)”, the urban area is composed of the old town zone at south (including the existing old town sub-zone and Fenghuang sub-zone to be extended), and the new urban area at north (including Qingmen sub-zone and Taiping sub-zone) administratively including 3 sub-districts, 3 towns, 4 townships, and part areas of 3 townships. In the near-future by 2015, urban land area is to be 34.8 km2 with population of 360,000; in the long-term future, urban land area is to be 48.52 km2 with population of 500,000.in 2025. The planned urban area will become a political, economical, and cultural centre of Zhaotong Municipality; a regional central city of the junction among Yunnan, Sichuan and Guizhou; an important hub city linking “Changjiang economic belt and Sichuan-Chongqing economic zone, and the “north gateway of Yunnan Province; and an important logistic centre for the flow of materials from Sichuan, Yunnan, Guizhou southward to the ocean; e) an important frontier city and services base for hydro-power development of the Jinsha River. The proposed ZTUEP is within the scope of the planned layout plan of the city master plan, it will provide necessary urban environmental infrastructure and improve environmental quality. Therefore is compliance with the city master plan.

Page 12 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

New urban Area Taiping sub-zone

New urban Area Old Town Qingmen sub-zone

Fenghuan Sub-zone

Figure 2-1 City Master Plan of Zhaotong Central Urban Area 2.2 Summary of ZTUEP Subprojects

ZTUEP is composed by sub-projects in water supply, wastewater, river rehabilitation and TA in Central Urban Area of Zhaotong, the Zhaoyang District The proposed ZTUEP is located in Zhaoyang District (hereafter referred as Zhaotong Central Urban Area), northeast end of Yunnan with North latitude of 27º 07’—27º 39’ and east longitude of 103º 08’—103º 56’, where the municipal government seated, ZYD is the political, economic and cultural centre of Zhaotong Municipality. The District covers total area of 2167 Page 13 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

People’s Republic of China

Yunnan Province

Figure 2-2 Geographic Location of Yunnan Province in China

Page 14 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Chengdu

Chongqin Sichuan Province

Zhaoyang District

Zhaotong Municipality

Guiyang Guizhou Kunming Province

Yunnan Province

Figure 2-3 Geographic Location of ZTUEP 2.3 Project Description

Zhaotong Central Urban Environment Project（ZTUEP）is one of the components of Yunnan Urban Environment Project （YUEP） which is under implementation, there are 3 sub-projects in ZTUEP plus a technical assistance sub-projects: Water Supply: raw water transmission mains from water source, Yudong Reservoir to a new WSP (called Taiping) and water distribution network, serving the northern new urban area except the north part; a new WSP (called Qingmen) and its distribution network with water source from Dalongdong spring, serving the north part of northern new urban area; Urban Wastewater: wastewater interception trunks of northern new urban area and along rivers, part of wastwater trunk in old town, and new wastewater treatment facilities for existing WWTP serving the south part of old town; Page 15 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

River Rehabilitation: Environmental Improvement of Riverways in Central City through Wastewater inception of Liji River and Tuwei River and their tributaries in Zhaoyang district (incorporated in wastewater sub-project), river bank rehabilitation (embankment and slope protection) and river silts dredging. The total rehabilitation length is 48.162km. Technical Assistance: will provide the services including engineering design review, construction supervision, operation assistance and institutional capacity building, as well as provision of necessary monitoring equipments for Zhaoyang Environmental Monitoring Station, to improve the monitoring capability. Feasibility Studies estimated that the total cost of ZTUEP is 860.3509 million RMB, Of which, water supply sub-project is 334.9566 million RMB, wastewater sub-project is 115.4271 million RMB, river rehabilitation sub-project is 409.9673 million RMB. The project preparation started on March 2009 and to be to completed by mid 2010. The project is expected to enter into implementation phase at the second half of 2010. The engineering construction is expected to be completed by early 2013. It is planned that water supply sub-project will be implemented in 36 months for the two WSPs and water transmission mians, and 36 for water distribution network. Wastewater sub-project in 36 months, river rehabilitation sub-project in 24 months.

Table 2-1 Project Owners Sub-project Name Construction Site Project Owner Urban wastewater Wastewater network of northern new urban area in Zhaoyang Zhaotong Municipal Water District and part of wastewater pipes of old town; extension of Supply and Sewerage Company existing WWSP in south of the old town (ZMWSSC) Urban water supply northern new urban area in Zhaoyang District River Rehabilitation The whole urban area of Zhaoyang District in planning Zhaotong Urban Investment and Development Co., Ltd. (ZUIDC) 2.3.1 Water Supply Sub-project

Service Area and Engineers Works The water supply sub-project serves mainly the planned north new urban area, the main project acitivies are described in the table below.

Table 2-2 Main Works of Water Supply Sub-project No. Name Main Content A new WSP with capacity of 50000m3/d in short term serving for and area of 18.7 km2 and 100,000m3/d in long term, applying treatment process of coagulation, sedimentation, filtration and disinfection New Taiping 1 processes to treat the water. The location of the WSP is at the cross between the Zhaoyi Highway and WSP Banghan Road, and north to the Municipal Transportation company at an elevation of about 1933m.The quality of water to be supplied is to meet Hygiene Standard for Drinking Water GB5749-2006. A new WSP with capacity of 10,000m3/d in short term serving for an area of 5.4 km2 and 20,000m3/d in New long term, applying treatment process of coagulation, sedimentation, filtration and disinfection processes 2 Qingmen to treat the water. The location of the WSP is nearby the railway station of Zhaotong, opposite to Taiping WSP Village, off the Paoma Raod, and at an elevation of about 2050~2052m. （1）Water distribution network of 93.61 km with pipeline diameter of DN 200-800 is to be established; (2) Distribution network is laid in ringy shape along trunk roads, branched pipes are laid on other minor Water roads. Nodular cast iron pipe is selected for pipeline with diameter >300mm, and PE pipe is selected for distribution pipeline with diameter ≤300mm. 3 network （3）A Pressure pumping station for distribution network of the new Taiping WSP: It’s proposed to be system constructed at the cross junction between planned Taiping No. horizon avenue and Qingmen No. Road, about 100 m away from planned Zhaotong-Yibin highway. Its capacity is 0.44 m3/s in short term and 0.88 m3/s in long term. （1） A new raw water transmission pipeline from Yudong Reservoir to Taiping WSP, in total length of 23 km. The direction of this pipeline is basically in parallel with the existing DN1200 one for Yudong WSP; Three connection pipelines of DN 1200 will be laid between the existing transmission pipeline and new one. Raw water is to be delivered by gravity, using DN1400 ductile iron pipe. raw water （3）Qingmen WSP uses Dalongdong spring as water source, DN600 raw water conveyor has been laid 4 transmission mains from Dalongdong spring to Qingmen WSP (near Railway Station, across Paoma Road, opposite to Taiping Village), the total length is about 4.6Km. A pressurized pumping station will be set up 300m away from Dalongdong spring, the length of pipe from pressurized pumping station to Qingmen WSP is about 4300m, there is about 6m free head at the end of pipeline. Pipeline to Qingmen WSP will no longer be laid in this project.

Page 16 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Figure 2-4 Layout of Water Supply Sub-project

Page 17 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

2.3.2 Wastewater Sub-project

This sub-project includes: 61.507 km sewer pipelines (HEPE wind pipe, reinforced concrete pipe) in northern new urban area serving for both Taiping and Qingmen sub-zones and area at upstream of Liji River and apply separate system. 29.451km sewer pipelines (HEPE wind pipe, reinforced concrete pipe) in old town area uncovered by existing sewereage system, and maintaning existing combined system Extension of existing Zhaotong WWTP (in operation with design capacity of 60,000m3/d, and actually capacity of average 49,000 m3/d ) to 80,000m3/d, at south end and lowest position of the urban area about 10 km away from downtown, where collected sewage can be delivered by gravity. The WWTP occupies total land area of 136.8 mu. Both the existing and extended treatment facilities will use oxidation ditch process to treat the wastewater to meet Class I-B standard of Environmental Quality Standard for Surface Water (GB3838-2002). Treated effluent will be discharged into Tuwei River and a small proportion (10 m/h) will be subject to in-deepth treatment for the being reused as washing compresor, mixer, screen, grit chamber, vehicles pipelines, as well as greenland watering. The sludge, after being dewaterered and dried (by adding quicklime) to the moisture of 60% will be hauled to landfill site of Ludian County for final disposal. 2.3.3 River Rehabilitation Sub-project

The sub-project is to imporve of main courses of Liji River, Tuwei River and its tributaries (including: Dongmen Small River, Yaowan River and Xiushui River) in both old and new urban areas. . The total length of improvement project is 48.162km, improvement scale is shown in the figure below. The urban area and Liji River and Tuwei River planys important role in flood control, irrigation and landscape. Currently the rivers suffer from of pollution, siltation, bank broken, severe erosion, unsteady structure and flood in urban area, the objectives of improvement are wastewater interception, silt dredging and river bank protection. The detailed content includes: (1)Wastewater interception: included in wastewater sub-project (2) River bank protection and imporvement: the total length of river course to be improved is 48.162km, in which Liji River 17.935km and Tuwei River 30.227km. Based on the existing problems and current situation, the river course will be improved by means of silt dredging, reinforcement of old embankment and protection of new river bank slope.

Page 18 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Figure 2-5 Layout of WWTP and Interception Trunk Sewers

Page 19 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Table 2-3 Engineering Quantities of Liji and Tuwei River Banks Rehabilitation

Length for Length No. Name rehabilitation Rehabilitation scope (km) (km) Total 84 48.162 From the conjunction of Liji river and Zhaolu river to 1 Liji river basin 27.1 17.935 sluice facilities of Beizha reservoir 2 Tuwei river basin 56.9 30.227 Tuwei river From the conjunction of Zhaolu river and Tuwei river to (1) 28.1 19.638 mainstream the train station From the conjunction of Yaowan river and Xiushui river (2) Xiushui river 12.4 4.329 to airport Yaowan river, the From the conjunction of Yaowan river and Tuwei river to (3) tributary of Tuwei 13.7 5.06 Taiping Jiushe river From downstream of Zhaotong Normal School to the (4) Dongmen river 2.7 1.2 conjunction of Dongmenxiaohe river and Tuwei river (3)River Silt Dredging:: total length of dredging is 48.162 km and with estimated total quantity of 154,000m3(of which 67000 m3 in town and 87000 m3 outside of town) silts. Silt dredging in old town uses hydraulic dredging machine and pipe booster conveying methold to ensure the complete and fast desilting; for the sections out of old town, silt dredging will be carried out manually.

Table 2-4 Volume of Silts to be Dredged From Each River Sections

No. River Name Length (m) Silt Volume

1 Liji River 17935 67856

2 Tuwei River 19636 65113

3 Dongmen Small River 1202 812

4 Yaowan River 5058 11912

5 Xiushui River 4331 8313

Total 48162 154006

2.3.4 Construction Land Use and Method

Construction Land Use According to the site visit of the RAP consultant, the resettlement of the project will include 1 district, 3 sub-districts, 5 couties (towns), 18 residence communities, 4 villages. The perminant land acquisition is 214.32mu, land for temporary use is 984mu. the resettlement will be involved in 2 sub-projects, which are river rehabilitation sub-project and Taiping WSP, pressure pumping station, collective-owned land, as well as the the state-owned land for Qingmen WSP in the WS sub-project. The specific data for the land acquisition is detailed in the table below:

Table 2-5 Statistic of the Land Acquisition ZTUEP Required Required Land for Affected population due collective-owned state-owned farmland temporary to resettlement land for land for No. Sub-project use acquisition acquisition Household Affected MU MU MU MU No. persons 1 River rehabilitation 1192 5149 107.62 107.62 385 2 WS 89 611 103.5 103.5 36 600

Page 20 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Figure 2-6 Layout for the River Rehabilitation Sub-project, Area to be Assessed, Schematic Distribution of Silt Sampling Points

Page 21 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Table 2-6 Statistic of the Collective-Owned Land to be Acquired Farmland Sub-project Street / county Community/village Subtotal Paddy field Dry land (MU) (MU) (MU) Fenghuang Nanwenquan 41.04 13.59 27.45 River rehabilitation Shizha river 14.06 14.06 River rehabilitation Taiping Shuitangba 42.14 42.14 Water transmission mains Longquan Guanba 100.2 100.2 of WS sub-project Taiping Shuiping 3.3 6.5 Construction Roads State Road No 213 pass through suburb of Zhaoyang District. The old town is accessible by roads around, the area along the upstream and downstream of river covered by farmland and villages. To the north side of the old town, urban development is underway and planned to be extended into northern new urban area. Urban road network in the north new urban area is taking its initial shape. The existing highways or roads can basically meet the needs of project construction provided that temporary construction shortcuts linking existing road to the new construction site are to be established, especially for river rehabilitation sub-project. Six temporary construction shortcuts are to be established to hauling dredged silts from riverbank to the silt drying pits, which will borrow 1.68 ha of land, including 0.59 ha. of paddy rice filed, 1.09 ha. of dry farmland. Borrow pits Zhaotong urban area is widely distributed with Quaternary alluvium and lake sediments, the north part to the old town is gravel layer of expansive soil with poor stability, river terrace within the area is distributed with belt alluvial layer of sandy clay, the south part to the old town is distributed with lake sediments of sandy clay and silt gravel layer. There are 61 sand and stone mines for construction use in Zhaoyang District, it’s proposed to use the sands and stones from 21 sand and stone material plants in Beizha Town in this project, such as Huafeng Construction Material Plant, Hongyue Sand and Stone Material Plant, Yuyi Sand and Stone Material Plant. The advantages of sand and stone material in this area include short transport distance, rich reserve quantiy, good quality and convenient exploitation. Construction Methods Pipelines Installation: most of the pipeline will be installed by means of open trench excavation, except for a section of sewer pipeline (813 m long) which is to be installed by means of pipe-jacking due to up-and-down topographic conditions. River Silt Dredging: Total length of river silt dredging is 48.162 km and volume of silt to be dredged is 154,000m3. Silt in river sections in old town will be dredged by means of mechanical hydraulic dredging and pipe booster conveying to ensure the complete and fast dredging; silt in river sections out of old town will be dredged manually: e.g: daming the section, pumping water out of the section and excavate silt.

Table 2-7 River Silt Dredging Method Average No. River Length(m) dredging dredging method depth(m) 1 Liji River 17935 0.25～0.4 Out of old town: pumping water from dammed river Tuwei River section and dredging manually; old town: hydraulic ～ 2 main 19636 0.2 0.5 dredging machine and pipe booster conveying course Dongmen 3 1202 0.2～0.3 hydraulic dredging machine and pipe booster conveying Small River Out of old town: pumping water by dammed river section Yaowan 4 5058 0.2～0.4 and dredging manually; old town: hydraulic dredging River machine and pipe booster conveying Xiushui 5 4331 0.25～0.45 hydraulic dredging machine and pipe booster conveying River Total 48162

Page 22 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Drying and Disposal of Dredged Silts: Six temporary silt drying pits will be borrowed along the length of the river couses to be dredged during construction to dry dredged silt to the moisture condition that are acceptable by sanitary landfill site or by greenland application . detail layout as following.

Table 2-8 Layout of River Silt Drying Pits 2.3.5 Project Investment Estimation and Implementation Schedule No. of dry accumulated Land ing pits River to be Storing Storage Area use patte Location Height（m） served Volume volume（m3）（ha） rn （m3） 1＃ Longquan sub-dist Paddy 9500 0.95 1 rict rice fiel Liji river 67856 d, dry fa 2＃ Fenghuang 9310 0.95 0.98 rmland Mulu Community

3＃ Taiping Village Tuwei river, 10260 0.95 1.08 Dongmenxiaohe 65925 ＃ 4 Heinidi Village River 9747 0.95 1.02 ＃ Shuitangba 5 Yaowan River 11912 4275 0.95 0.45 Village 6＃ Nanwenquan Xiushui River 8313 2850 0.95 0.3 Community total 154006 45942 0.95 4.77

According the cost estimation made in the Feasibility Studies, the total cost of ZTUEP is 831.4023 million RMB, Of which, water supply sub-project is 326.10 million RMB, wastewater sub-project is 112.2902 million RMB, river rehabilitation sub-project is 393.0121 million RMB. The project preparation started on March 2009 and to be to completed by mid 2010. The project is expected to enter into implementation phase at the second half of 2010. The engineering construction is expected to be completed by early 2013. It is planned that water supply sub-project will be implemented in 18 months. Wastewater sub-project in 33 months, river rehabilitation sub-project in 24 months. Considerations are given to the period of bidding, interval between contracts, the actural cosntruction period estimated by environmental management plan are; water supply sub-project 1.5 year, wastewater sub-project 2 years, river rehabilitation sub-project 2 years. 2.4 Linked Projects and Plans

Rehabilitation of Old Town and WS and Wastewater Networks in Old Town Rehabilitation of south old town includes: restoration of ancient city and rehabilitation of old town. This project is invested by Zhaotong Urban Investment and Development Company, it’s under construction and planned to be completed in 2010. To resolve the existing problems of wastewater pipes in old town, wastewater network rehabilitation project is being implemented in Zhaoyang District. 49.023 km DN500-DN1500 wastewater pipes will be constructed and 1 sewerage pumping station will be reconstructed, the total investment is 85.45 million Yuan, the project is planned to be completed by the end of 2010 and a combined system is adopted. Water distribution network rehabilitation works has been commenced since December 2004. A total of 32.11 km of the pipeline with diameter of DN 150-DN 600 were rehabilitated by installing HDPE pipeline manufactured in compliance with GB/13633-200 standard. Such rehabilitation work will be continued in the old town for those pipeline that failed to meet the requirement of standard for water supply.

Page 23 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Dams Involved in Project The dams involved in this project is listed in the table below.

Table 2-9 Dams Involved in Project and Basic Information Total Relation Dam Capacity / Dam / No. Sub-project with Height (Regulating Basic information Safety situation Reservoir Sub-project （m） Capacity) *10000 m3 1 Water Supply Yudong Water source 87 36400 Construction started in 1992 and Safety appraisal has Reservoir Dam of Taiping （28700） completed December 2000. been done with WSP Functions: mainly irrigation, partly completion acceptance electricity generation, flood control, in 1999. It’s safe industrial and domestic waster currently. supply, and water supply to downstream cascade hydropower station. 2 Yangjiafen 1km to 23.8 120.9 Construction started in May 1958 and Safety appraisal and Reservoir Dam upstream of （91.3） put into operation in 1959. Functions: reinforcement design Liji River Mainly flood control, partly irrigation has been done, main course and as drinking water reinforcement is ongoing. 3 Qingmen 5km to 14.1 230.1 Construction started in 1953 and Safety appraisal and Reservoir Dam upstream of （180） completed in 1954. Functions: mainly reinforcement design Tuwei River flood control, partly irrigation and as have been done, drinking water reinforcement is ongoing. 4 North Gate 7—8km to 17.7 107.2 Construction started in 1952 and Safety appraisal and Reservoir Dam upstream of （93.2） completed in 1969. Functions: mainly reinforcement Yaowan irrigation, partly city flood control and preliminary design River as drinking water have been done. As Class III dam, it’s hasn’t been included in reinforcement plan. 5 Jiaojia 3km to right 22.1 106.4 Construction started in October 1959 Safety appraisal, River Courses Reservoir Dam branch of Liji （74） and put into operation in December reinforcement Environment River 1971. Functions: mainly irrigation, preliminary design and Improvement partly city flood control and as reinforcement have drinking water. been done. 6 Toudaogou 5km to 25.6 129.8 Construction started in February Safety appraisal and Reservoir Dam branch of Liji （88） 1957 and completed in October 1958. reinforcement River Functions: mainly irrigation, partly as preliminary design and drinking water reinforcement have been done, acceptance is ongoing. 7 Fangyangchong 500m to 12 140 Construction started in November Safety appraisal and Reservoir upstream of （129.2） 1956 and completed in 1964. reinforcement Dongmen Functions: mainly irrigation, partly preliminary design Small River downstream flood control. have been done, reinforcement is ongoing. 8 Shenggengtang 1km to 24.5 213.6 Construction started in 1959 and Safety appraisal and Reservoir upstream of （156.3） completed in 1964. Functions: mainly reinforcement Liji River irrigation, partly city flood control and preliminary design and main course as drinking water reinforcement have been done. After identification of dams involved in this project, above information and dam safety appraisal report has been submitted to the World Bank in late September 2009. During WB Preparation Mission of Yunnan Urban Environment Project Phase II at the end of October 2009, dam expert has evaluated current safety situation of the above 8 dams and issued individual dam safety evaluation report. Municipal Solid Waste Management System The municipal solid waste generated in Zhaotong central urban area is managed by Zhaoyang District Environmental Sanitation Station. There is no sanitary landfill site in Zhaoyang District yet. All the domestic solid waste is now being disposed of in a simple landfill site located at Shantang Village, more than 10km away to the west of urban area which has

Page 24 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA been operated since September 2006 at actually disposal capacity of about 400ton/day. This simple landfill site has a waste dam, without impermeable lining, landfill gas and leachate collection and treatement facilites. The landfill site operator, ZYD Environment Santatary Station has been trying to enhence the operation mangement to reduce the ambient environment pollution to minimum. A stormwater interception ditch srounding the site and a leachate storing tank are now being constructed to minimize leachate pollution on environment According to Zhao (Zhaoyang District) -Lu (Ludian County) Economic Integration Plan, Zhaoyang District and Ludian County will share the public resourses of municipal solid waste disposal facilities. A planned solid waste landfill site in Ludian County, which is 10.8km away from Zhaoyang District, will be funded jointly by state, province and local finance. The planned solid waste landfill site is located Zhaojiahai village occuping 112.49 MU of land with total storage volume of about 0.6million m3. it is designed as a sanitary landfill site with impermeable lining layer, gas-operated device, leachate collection & treatment facilities, on-site administration office, access road, working road, environment monitoring system, water supply, drainage, electricity supply, greening etc. the EIA of the landfill site was approved by the provincial EPB on 26th September 2005. the approval document No. is Yunhuanxuzhun 【2005】174. Currently the construction drawing of the landfill site is finished, which is on the way for bidding. It’s expected to construct at the beginning of next year and to be finished before 2010. Soil and Water Conservation Plan for ZYD Urban Area The plan cover Tuwi and Liji Rivers in the urban area, including following actions: Terracing slopes of 10~25° to establish high and stable output farmland and control soil and water erosion, inluding 12950mu for Tuwei River catchment and 16882mu Liji River catchment. Afforestation; diversified local species trees will be planted on barren hills and slopes to fundamentally control soil and water erosion and improve ecological environment. It’s planned to plant 28790mu, and 23100mu forest for soil and water conservation for Tuwei and Liji river catchements repectively; 15730mu and 9780mu economic forest for Tuwei and Liji river catchements respectively; and 61390mu and 5463mu for forest conservation for Tuwei and Liji river catchements repectively, Soil conservation farming: including 14760mu and 14760mu for Tuwei and Liji river catchements respectively of slope farmland of which the gradient is less than 25°to reduce soil and water erosion of slope farmland, keep soil structure and fertility. Small hydraulic and water conservation projects: it’s an effective approach to improve slope water system and intercept surface runoff. It’s also a key part for the soil and water conservation. It’s planned to construct 100 check dams, 50 sediment storage dams, 50 reservoirs, 5km discharge and irrigation canals, 528 submerged culverts. 3. ENVIRONMENTAL BASELINE 3.1 Natural Environment

(1) Geography Location Zhaotong City is located in Northeast Yunnan Province, upstream of Jinsha River, at the jiont of Yunnan, Guizhou and Sichuan. Zhaoyang, the municipal government headquarters is 500 km distant from the four major cities (Kunming, Chengdu, Chongqing and Guiyang) and from the two major industrial bases. Zhaotong is an important gateway to connect Yunnan and the other provinces.

Page 25 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Zhaoyang is an integrated altiplano gradually incresing from east to west between Wumeng Mountain and Liang Mountain. The highest peak in northeast is Liang Feng Tai with an altitude of 3,152 m and the lowest points lay in the Putaojin valley Zhaolu Riverbed of an altitude 1,950m. Zhaoyang is a typical altiplano Lacustrine basin with the average altitude of Zhaoyang is 1,950m. The basin covers an area of 300km2, with an central area of 22.5km2. (2) Geographical Features Zhaotong is a typical mountainous structure terrain with high mountains and deep valleies. The altitude difference is large in this region. The highest altitude is 4040m (Yao Mountain in Qiaojia County) and the lowest altitude is 267m (Guankan Dam in Shuifu County). The average altitude of Zhaotong City is 1685 meter. There are complete formation structures, from Cambrian to Quaternary. Most of the Zhaotong basin are covered by Quaternary and Tertiary. Magmatic rocks in the city are Ermei Mountain basalt of early Last Permian. It is mainly Lava and some volcanic rock. Outcrop area of these rocks takes up one third of the city. The tectonic position locates in west Diandong platform fold bundle of Yangtze Para-platform. This structure is based on fold and rupture. The tectonic line is north-south trending and west-east trending. There are lots of alluvium of Quaternary and lake sediments. There is expansive soil with gravel layer which is poor stablity in the north of old town. The river terrace is covered by banding shock layer, which is sandy clay. There are lake sediments which is sandy clay and mucky stone layer in south of old town. （3）Weather and Climate Zhaotong City is subtropical and warm temperate zone with antiplano monsoon stereoscopic cilmate. Annual frost-free period is around 220 days with cold winter and cool summer. The annual average temperature is 11. 6℃, and the average temperature in the hotest month July is 19.8℃ and the average temperature in the coldest January is 2℃. Annual accumulated temperature of grater than≥10℃ is 3217℃. Annual average sunlight 1902.02 hours and annual rainfall is 753mm ranges from the highest in summer of 58% to the lowest in winter of 2%. The rainfall in autumn and spring is respectively 24% and 16%. The annual EPT is 1696.1mm. There’s seldom downfall and storm in Zhaotong City. The annual average snowfall period is 15.1 days, frost period 41.3 days, fog period 18.8 days. The dominant wind direction is northward, southwestward and northeastward with the average speed of 2.5m/s and the highest speed of 24m/s. the monsoon in winter blows northwardly and southwestwardly in summer. （4）Hydrology Hydropower resource in Zhaotong City is 20.80MW covering 24.9% that of Yunnan Province. Three large scale hydropower plants (Xiangjiaba, Xiluodu and Baihetan) are under construction downstream of Jinsha River. Zhaotong City is located in transforming part of Yungui altiplanto to Sichuan Basin. There are three rainfall rechage altiplano river systems in Zhaotong City – Lower Jinsha River System, upper Yangtze river system and Wujiang river system, which flow into Jinsha River from southwest to northeast. The runoff are of Jinsha Basin, upper Yangtze Basin and Wujiang Basin is respectively 18976km2, 2755km2 and 692km2. There are more than 390 rivers in Zhaotong, of which the main rivers are Jinsha river, Heng river, Qiulan river of lower Jinsha river system, Yili river, Guan river, Baishui river, Luoyi river; Luobu river, Chishui river of Yangtze main stream; and Yisa river, Poji river of Wujiang river system. The main river system in Zhaoyang district are Sayu river, Zhaolu river and its branch Liji river system, and Tuwei river system. Rising from Taoyuan of Ludian county, Zhaolu river Page 26 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA flows through the basin from the southwest end to northwest end, through the four counties of Yongfeng, Mengquan, Tucheng and Jiufu, with the runoff area of 370m2, total length of 26km, width of 15-20m and 2km at the closest distance to the city center. Liji river system and Tuwei river system, locate in the city center, cause most flood in the city. Sayu river and Zhaolu river are in rural area. Liji River system is the tributary of the north bank of middle Zhaolu River. The total length of Liji river is 27.1km with an average gradient of 6.6% and control runoff area of 113km2. Rising from Xiaoliang mountain in the northeast of the city, Liji river enters into Zhaolu river from northeast to southwest through Sankong bridge, Lajizhai and Gaolu bridge. It is one of the main flood protection rivers in Zhaoyang city. Tuwei river system is a branch of Zhaolu river with an runoff area of 124km2 and an average gradient of 8.9%. Rising from Liangfengtai in the east of the city at an altitude of 3151.8m, the river flows through the urban area and merges into Xiushui river, Yaowan river and Dongmen river at Shuangyuanzi in south suberb and finally enters into Zhaolu river. Tuwei water system frequently causes servious flood in the city. Feature of river systems are attached below. （5）Biology Resource The complication and diversity of the terrain and climate contribute to rich biology resource in Zhaotong. There are 1025 species woody plant which belong to 457 genuses 151 families in the city. Spread all over the city, there are more than 0.6 million Mu bamboo including the rare species of Qiongzhuea tumidinoda and square bamboo. The advanced cash crops are tobacco, oil plants, flax and dasheen. Zhaotong has the largest acreage of eutrema yunnanense and the most suitable envrironment for potato growth. There are more than 100 species of cash forest including large scale products of oil tung, chinese tallow tree, chinese gall nut, chinese ash, and leading output of 37 fruits: apple, orange, cherry, citrus, sweet peach etc. Zhaotong is also known as the origin place of many medical materials such as gastrodia, eucommia bark, cortex phellodendri and rhizoma pinelliae, and also as the origin place of the best gastrodia in China. （6）Mineral Resource With excellent conditions for mineralization, Zhaotong City is rich in mineral resources and advanced in mineral development. Amount the 33 types of mineral there are 22 types with proven reserve, including coal, sulfur, zinc, silver, magnesium, phosphor, silex etc. high in quality and abundant in reserve. The reserve of coal is 18.95 billion ton covering 36.3% of the total reserve in Yunnan Province. The reserve of lignite covers 44.3% of that in Yunnan Province. The pyrite mine area in Zhaotong is one of the largest mine ares in China and one of the three largest non-ferrous metal bases in Yunnan Province. （7）Tourism Resources Zhaotong is a place of both natual and historic figures and cultrual heritage, which is a good tourist resort with unique natural scenery and ethnic folklore to be developed. （8） Nature Reserve Dalongdong, located at Beizha Town to the north of Zhaotong City, is established in 1981 as provincial nature reserve. It’s 134ha, in which 69ha for forest, 27ha for coutryard and 38ha for river. In July 2007, based on the prevous nature reserve area, Dalongdong is divided as drinking water souces protection area. The protection area is extended to 314ha that 12km to Zhaotong City. Dalongdong is a famous nature landscape protection area for its historic Taoist temple, ancient constructions, etc. the objectives for protection include: water conservation forest, water sources, natural landscape. The protection area is the water source intake of Qingmen WSP in WS sub-project. The raw water transmission network is already constructed and there will be no more construction works in this project, thus there will be no impact on the project. Page 27 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Yudong Reservoir: It locates in the Jule River which belongs to Jinsha River system. This reservoir is 23 km away from Zhaotong city. The basin area of Yudong Reservoir is 709km2, and the total stroage capacity is 364 million m3. This is the only stable and reliable water source for Zhaoyang District and agricultural water source for Zhao and Lu dam areaes. The general target of water source protection for Yudong Reservoir include: On the premise of guaranteeing the public health, the water quality of Yudong Reservoir first class area should reach the Class II and above Class II standard of Surface water environment quality standard. According to the current status of Yudong Reservoir that the sand sedimentation is serious and the environment parameters, total phosphor, total nitrogen and E.coli, are between Class II and Class III, measures are adopted to plant trees and control water environment pollution. Based on the principle of “ Unified planning, unified funding, unified treatment, unified protection, gradual treatment and gradual improvement”, and in order to realize the essential objective for the water resources protection of Yudong reservoir, it’required that 1)water quality of the first Class area should reach Class II and above Class II water quality standard; 2)forest coverage rate above 1985 meter should reach 100%; 3)the forest coverage rate of the second class area should be above 85%. It’s expected to achieve a virtuous cycle of water resources and aquatic ecoenvironment through the improvement of integrated management level of water resources by protection and rehibilitation. In this way the development, utilization and protection of water resources would be developed synchronously with society and economy, which would ensure the max eco and social benefits Dashanbao: it’s seated at 79km western to Zhaoyang district. The total area is 192km2 with 2800m for average elevation. It’s approved as National Nature Reserve by State Council in 2003, which is a key wintering habitat for black-necked stork. The project will not be affected as Dashanbao is far from the project lcoation and not included in the EIA. Putaojing: located in Jiupu Town, about 10km away from Zhaotong City. This is not only a famous resort place but also the locality of “Six ancestors branching” which has a great impact on the development history of Yi nationality. This is the holy land for ancetor worship of Yi fellow. （9）Forest Resource The forest coverage in Zhaoyang district is 20.81%, in which public profit forest 997799mu, Lumbering forbidden area 792112mu, lumbering control area 205687mu, Merchandise Forest 239521mu. There are many types of vegetations. There are 118 subjects and 438 types of plants. There are 8 types of well known precious plants; more than 100 types of plants in economic forest; more than 30 types of fruits; more than 200 types of rare medicinal herbs; more than 50 types of wild flowers; more than 20 types of wild edible fungi; more than 20 types of special forests, and, more than 30 types of honey plants. 3.2 Social Environemtal

Approved by the state council in 2001, the former Zhaotong Area was designated as municipality governing one district 10 counties including Zhaoyang District, Ludian County, Qiaojia County, Yanjin County, Daguan County, Yongshan County, Suijiang County, Shuifu County, Zhenxiong County, Yiliang County, and Weixin County and 143 townships The total population in 2008 is 5.495 million with natural growth rate of 8.7‰, including 5.0395 million agricultural population and 0.5473 million minority population. Urban population is 0.23 million. GDP of Zhaotong reaches 27.23 billion yuan with an increasing rate of 11.1% and GDP per capita is 5163 yuan, increasing 18.79% as compared to the same period of the previous year. The annual local government budgetary revenue is 1.71 billion yuan with an increasing of 32.9%, while the general budget expenditure is 8.83 billion yuan with an increasing rate of 40.03%. Overall retail sales of social comsumption products is 7.19 billion Page 28 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA yuan with an increasing rate of 21.3%. Disposable income of the Urban residents is 10005 yuan per capita and rural per capita net income is 2116 yuan, with respective increase of 10.1% and 24.2%. In 2001, the former Zhaotong central area was designated as Zhaoyang district including 3 subdistrict offices(Longquan, Taiping, Fenghuang), 3 counties(Yongfeng, Beizha, Jiupu), 14 township (buga, Shouwang, Xiaolongdong, Panhe, Jinan, Qingganglin, Sayu, Leju, Sujiayuan, Sujia, Dabaoshan, Dazhaizi, Yanshan, tianba), 129 village committees and 49 community residents committees. The total population in 2008 is 0.8054 million with natural growth rate of 9‰, including 0.6805 million agricultural population and 0.1318 million minority population. Urban population is 0.23 million. GDP of Zhaoyang reaches 8.847 billion yuan with an increasing rate of 10.5% and GDP per capita is 11100 yuan, increasing 11.4% as compared to the same period of the previous year. Among which, GDP increment of the primary industry is 12.3899billion Yuan, increased 3.8% copmared to the same period of previous year; likewise, it’s 38.2445billion Yuan GDP increment of the secondary industry, increased 9.1%, and 37.8312billion Yuan GDP increment of the tertiary industry, increased 13.8%. The structure of the three industries has been modified to 14.01:43.23:42.76. The annual local government budgetary revenue is 0.301 billion yuan with an increasing of 35.8%, while the general budget expenditure is 1.12 billion yuan with an increasing rate of 39.5%. the urbanlization rate is 28.5%. Disposable income of the Urban residents is 10449 yuan per capita and rural per capita net income is 2495yuan, with respective increase of 12.56% and 23.8%. Curently the main industries supporting the economy of Zhaoyang district include: lignite coal chemical industry, nonferrous metal industry, construction material industry, biological industry, traditional industries. However, the main industries in the project area (the urban area) are traditional industry (Honglian mane products, Dashan carpet, Wanhe pickles etc), biopharmacy, agricultural products processing, construction material industry. The pollution industries such as coal chemical industry for nonferrous metallurgy are not planned in the urban area. The project will be constructed in urban area. The current population idensity is 10200 persons/km2 that is the area with most concentration of population in Zhaotong City. Historical Relics:Zhaoyang district, with long historical cultural relics, has rich cultural relic protection department in different levels. After discussion between local project, owner, EA unit and local cultural relics protection management department, as well as the site visit, it’s discovered that the key cultual relics in project area stays at the Wanghailou west to Tuwei river. Wanghailou is about 2km away from Zhaotong City and about 100m to the west of Tuwei River that was built by SHEN Shenglin, the county magistrate of EnAn county in 1760. in order to protect this building and protect the potential precious cultural relics during the project construction, Zhaoyang District cultural and Sport Bureau, the local authority responsible for relics has issued a letter for the project construction, specially commented the details for cultural relics protection during the project construction. The letter from Zhaoyang District cultural and Sport Bureau is attached as annex 1of this report: 3.3 Existing Wate Supply, Sewerage and Urban Riverway 3.3.1 Water Supply and Dranage System

The water supply in Zhaotong central area is supplied by Zhaotong Municipal Water Supply Company which is a state-owned enterprise established in 1963 and belongs to the Construction Bureau of Chaoyan district. The water company owns 5 WTPs and 1 WWTP with 264 permanent staff. It has the following departments: administrative office, financial dept, laboratory, design office, billing&operating dept, tariff collecting group, information center, network management office. There are 5 WSPs in Zhaoyang District with the respective capacity of 5000 ton/day, 10000 ton/day, 5000 ton/day, 5000 ton/day and 40000 ton/day. The total capacity in Zhaoyang

Page 29 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

District is 65000 ton/day. Amoung the 5 WSPs, the WSP No. 2, 3 and 4 take undergroud water and are currently suspended for alternate water source. WSP No.1 takes raw water from Dalongdong spring and supplies the residents directly without treatment, due to its outdated equipment and treatment process. WSP No. 5 takes water from Yudong reservior and the effluent water quality is stable. The actual average daily water supply by WSP No.1 and 5 in 2008 is 34000 ton/day. In addition, about 20,000 m3/d of urban water comsuption take raw water from surface water body and shallow ground water. Most water distribution network in the old city of Zhaoyang district were cast iron pipes with small diameter constructed in 1960-70s, which suffers from unbalanced water supply and serious leakage. There is no complete municial drainage network in north new urban area so far, while old town is practising the combined drainage system, including four trunck sewer with total length of 12.65 km. All the stormwater, industrial wastewater and domestic wastewater are discharged into Wayao and Yaowan River. Zhonggou river, Dongmenxiaoha river, Wayao river catchments. Due to the uncompleted wastewater collection system, especially in those area with high density of population, the domestic wastewater and industrial wastewater are directly discharged into these rivers resulting pollution to the river water quality. Existing Zhaotong WWTP locates south to ZYD, east bank of Tuwei Rive 10km away from downtown. The capacity of 1st phase is 60,000 m3/day, adopting oxidation ditch process for treatment. The treatment plant treated 17.9262 million m3 wastewter in 2008, average actual daily treatment capacity was 49,000 m3/d. With the extension the urban area and improvement of drainage network, more wastewater collected, the existing WWTP could not meet the requirement of treatment capacity of 60,000 m3/day. There is no municipal solid waste sanitary landfill site in Zhaoyan District at present. The municipal solid waste is disposed of in a simple landfill site. The sludge of existing WWTP basically contains whiffy debris of organism. Annual amount of sludge is around 10950 t/a, with moisture of 80%. Part of sludge is stored inside the WWTP for local farmers use as agricultural manure for nursery. Part of sludge hauld by WWTP operator or local environmental sanitation station to the simple landfill site for disposal. Sanshantang temporary municipal solid waste simple landfill site, west to the city,is 10 km away from the WWTP. 3.3.2 Existing Urban Riverway

The main rivers in Zhaoyang District are Sayu River, Zhaolu River and its tributaries Liji River and Tuwei River. The Liji River and Tuwei River flow through the planned urban area. Zhaolu River originates from Taoyuan, Ludian County. It flows from southwest to northwest. The river flows across towns of Yongfeng, Fenghuang Residential District Office and Jiufu. The nearest distance away from the urban area is 2 km. The river, with 26km for total length and 370 km2 for the river basin, is 15~20m in width. Liji river, a tributary of and at right bank of Zhaolu River, is located at the center of the urban area. Sayu River and Zhaolu River is in suburb. The Liji River and Tuwei River is the main cause for flooding the urban area. Liji River is 27.1km long with average gradient of 6.6%. The control runoff area is 133 km2 originated from from Xiaoliangshan (2667.7m). It flows in a direction of northeast-southwest, passing by Sankong Bridge and Lajizhai finally flows into Zhaolu River in Gaolu Bridge. This is one of the important river for flood control in the urban area of Zhaoyang District. Tuwei River is first-grade tributary of Zhaolu River. The runoff area is 124 km2 and average gradient is 8.9%. it’s originated from Liangfengtai east to the urban area, which has a altitude of 3151.8m. Tuwei River flows in a direction of northeast-southwest. It acrosses the main urban area passing by Xiushui River, Yaowan River and Dongmen River at Nanjiao

Page 30 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Shuanyuanzi, and finally flows into Zhaolu River at Heinidi. The river systme is showed in attached map. Tuwei River is facing a number of environmental issues to be dressed bu rovre rehabilitation subproject. The geographic parameters of two rivers are listed in the following table.

Table 3-1 Parameter of Liji River and Tuwei River basin Length Gradient River name Section Remarks area （km）（‰） 2 （km ） Left tributary of Yaowan River, From headstream to confluence Xiushui second-grade tributary of Tuwei point of Xiushui River and Yaowan 12.4 7.49 21.8 River River River

Tuwei River(Total length28.1km) length28.1km) Tuwei River(Total From headstream to confluence point of Xiushui River and Yaowan 13 8.79 19.5 Yaowan Left tributary of Tuwei (14.2km River River long) From confluence point of Xiushui-Yaowan to confluence point 1.17 3.42 2.72 of Yaowan River and Tuwei River. From Shengengtang Reservoir to Dongmen Right tributary of Tuwei River confluence point of Dongmen River 2.71 6.64 6.46 River and Tuwei River. From headstream to Qingmen 7.09 50.41 33.5 Reservoir From Qingmen Reservoir to 12.6 11.45 26.3 Tuwei confluence of Dongmen-Tuwei Mainstream (28.06km long) River From confluence of Dongmen-Tuwei 2.05 0.98 3.72 to confluence of Yaowan-Tuwei From confluence of Yaowan-Tuwei 6.32 0.63 9.57 to confluence of Tuwei-Zhaotong From headstream to Beizha Reservoir 7.86 57.48 31.6 Liji River (27.1km From Beizha Reservoir to confluence point of Liji River and Zhaotong long) 19.3 3.07 80.9 River ZUCID will the the implementation agency for river rehabilitation sub-project. After the project completion, the operational management of rivers rehabiltated will be hand over to Water Conservancy Bureau of Zhaoyang District. Who is the adminstration department of rivers in Zhaoyang District, under which, there is a river management station with 8 staffs in charge of the maintenance and management of urban river. 3.4 Existing Environment Quality in Porject Area 3.4.1 Existing Water Environment Quality

Current status of Sources of Water Supply Yudong Reservoir: According to monitoring result of water quality for Yudong Reservoir by Zhaotong Water EMS, the water quality of Yudong Reservoir from Jan to Nov 2008 are Class II (GB3838-2002). It meets the requirement of The Surface Water Aquatic Environment Functional Zoning of Yunnan and far better than the Class I water quality standard of water quality standard for drinking water source (CJ3020-93). Dalongdong Reservoir; According to monitoring report of water quality in Dalongdong Reservoir by Zhaotong Water-supply & Drainage Company, water quality of Dalongdong Reservoir could reach the Class I standard of Water quality standard for drinking water source (CJ3020-93). It could be used as a surface water source of drinking water. Current status of surface water quality Tuwei River: there is one regular water quality monitoirng point at Fenghuang Gate for Tuwei river. Monitored data shown that Tuwei River is worse than Class V. There are 7 parameters exceeded the limits in Class IV of Surface water environment quality standard

Page 31 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

(GB3838－2002). The 7 paramenters that exceeded the limites include DO, CODMn, CODCr,

BOD5, NH3－N, TP and anionic surfaceactive agent, Water quality of Liji River: there is no regular water quality monitoirng point for Liji river, a special water quality monitoirng data conducted for this river rehabilitation project shows NH3-N is exceeded the Class IV water quality required in Surface water environment quality standard (GB3838－2002). The exceedance time is 0.002. Other parameters meet the requirement of Class IV standard of Surface water environment quality standard (GB3838－

2002). NH3－N comes from the wastewater discharged by the residents living alone the river and the agriculture wastewater. 3.4.2 Existing Air Environment Quality

According to Zhaoyang air quality monitoring result conducted by Zhaotong EMS in 2007, the average annual air quality in project area in comparison with Ambient air quality standard

(GB3095－1996) are: NO2 and inhalable particle are Class II; SO2 is Class III that exceed the requirement of Class II. Observation from the change of the year, NO2 and inhalable particle compliance with the standard all the year. SO2 compliance with the standard only in June, July and August. SO2, as the main cause of pollution, comes from the sulfur coal that cause the increasing emission of SO2. 3.4.3 Existing Acoustic Environment Quality

According to Zhaoyang urban area acoustic environmental quality monitoring result for the second quarter and forth quarter of 2008 conducted by Zhaotong EMS. The areas of 1st class, 2nd Class, 3rd Class and 4th Class in Zhaoyang District are in compliance with standard of Acoustic Encironmental Quality Standard (GB3096-2008) for both day time and night time. 3.4.4 Existing Ecological Environment

（1）Forest resources The forest coverage in Zhaoyang district is 20.81%, in which public profit forest 997799mu, Lumbering forbidden area 792112mu, lumbering control area 205687mu, Merchandise Forest 239521mu. There are many types of vegetations. （2）Land use pattern Zhaoyang district serves an area of 215578ha. The land utilization in 2008 is: 72643.12ha for farmland (33.7% of the total); 9893.06ha for garden (4.6%); 71001.36ha for forest (32.9% of the total); 21537.48ha for grassland (10%); 8448.58ha for urban & village and industries and mining (3.9% of the total); 1033.83ha for the transportation (0.48% of the total); 20477.58ha for vacant land (9% of the total). Zhaoyang district has used land 195100.42ha in 2008, which is 91% for the land utilization (the land utilization ratio in Yunnan Province is about 87%). The selected sites for Taiping and Qingmen WSPs are designated to be land use for establishment of environmental and sanitation facilities by “Control Detailed Plan of Zhaotong City Masterplan (2007-2020)”, thus there will be no farmland occupation by WSPs. Water distribution pipeline will be installled along the two boundary sides of planned north new urban area (now under initial urban development stage) and Zhuti avenue in the middle where the existing land use patterns are farmland, and street trees. These area are covered with artificial vegetations with no natural and primal vegetation. Land to be temporarily borrowed for water transmission mains construction is mostly dryland, irrigation field and woodland. And the main crops are rice, tabacco, corn, patato, Page 32 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA buckwheat and so on. Forest coverage along the water transmission pipeline area is merely 13.7% due to deforestation, irrational land reclaimation and livestock farming. The ecosystem in the district is single and mostly covered by planted timber, economic trees, protective forest and natural shrub, and the tree species include Pinus yunnanensis, Pinus armandii, poplar, apple, yellow pear and so on. Animals are mostly rodent (e.g. mouse) and common birds. Field survey finds neither distribution of national key protection wild fauna and flora nor indigenous species. (3) Current situation of water loss and soil erosion 14.147km2 has been under control for the water loss and soil erosion by Zhaoyang district in 2003. The total engineering quantity is 257500 m3 and labour input is 462000. Zhaoyang district has 512.59 km2 of the slight erosion area in 2004. The soil erosion area is 233.74km2, in which: 96.74km2 for slight water loss and soil erosion (41.39% of the total); 95.45km2 for the moderate erosion (40.84% of the total); 27.19km2 for the intensive soil erosion and 14.35km2 for the most intensive soil erosion. (4) Aquatic ecological conditions of rivers to be rehabiliated: z River banks: land areas along river sections outside urban area of Liji, Tuwi, Xiushui and Yaowan Rivers are donimated by arable land and paddy rice field, on which such crops of wheat, corn, cabbage and radish are regularly planted, while the land along river sections inside urban area of Liji, Tuwei, Xiushui and Yaowan Rivers that passing through downtown are used as urban residential area. z The riverways: riverways of Liji and Tuwei at urban sections have been channelized and highly silted with incomplete ecological function. Fishes in urban sections of these rivers have been vanished. Fewer plankton (mainly algea), weeds (mainly sub-merged macrophates) can be found in these sections. Such invertebrate as earthworms can be found in the river sediment. The riverway is characterised by typical benthonic invertebrate. ecosystem z The silt drying pits: the silt drying pits selected in the feasibility studies are located in areas with intensified human being’s activities. There are no primeval vegetation. It is mainly covered by herbs or farming crops. In summary, these silt drying pits is characterised by distinct farming eocsystem with simplex biodiversity. No any rare species can be found here. The pits do not belong to any functional habitates. 3.4.5 Industrial Pollution Source Related with this project

According to site survey and information collected, the volume of industrial wastewater from the old town amounted to 6122 m3/d, and from the north new urban area amounted to 2400 m3/d. The existing industries of Zhaoyang District are shown as following:

Table 3-2 List for Main Industrial Wastewater Discharge in Planned Urban Area Volume of Discharge Quantity of Quantity of wastewater volume of COD COD Receiving Name production sewage generated discharged water body （t/a）（t/a）（t/a）（t/a） Zhaotong Dingsun commerce and trade 800 800 0.08 0.08 Liji River company Honglian company, the first water washing plant 800 600 0.08 0.06 Liji River Cenguang rice noodle plant 4484 4484 6.92 6.92 Liji River Yanguang rice noodle plant 2242 2242 3.46 3.46 Liji River Zhaotong Heyi food plant 2020 2020 3.93 3.93 Liji River Zhatong Yuansen slaughterhouse 22488 21000 43.73 2.52 Liji River Zhaoyang Lixin food plant 4457 4457 4.02 4.02 Liji River Zhaotong Yuezhonggui food company 3355 3355 9.19 9.19 Liji River Zhaotong carton plant 56092 56000 45.60 6.42 Liji River Zhaoyang Hongshun rice noodle plant 1557 1557 2.40 2.40 Liji River Zhaotong water-supply & drainage company - 136000 136000 0.11 0.11 Tuwei River

Page 33 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Volume of Discharge Quantity of Quantity of wastewater volume of COD COD Receiving Name production sewage generated discharged water body （t/a）（t/a）（t/a）（t/a） the first plant Zhaotong tobacco factory of Honghe tobacco 2203900 1480400 75.33 75.33 Tuwei River company Zhaoyang Qingyuan coal company 6400 2200 0.50 0.28 Tuwei River Zhaotong Chenglong coal-washing company 11200 7040 1.34 0.74 Tuwei River Yunnan Mingyang industry & commerce 7200 2200 0.34 0.18 Tuwei River company Zhaotong branch Zhaotong Hongshun economy and trade 2100 1320 0.25 0.14 Tuwei River company Zhaotong Shazipo coal-washing plant 24500 15400 2.94 1.61 Tuwei River Zhaoyang Fukanglu coal mine 12480 12480 2.03 2.03 Tuwei River Yunnan Fenghuang paper products company 2700 2700 0.27 0.27 Tuwei River Yunnan Tianzhao medicine company 19345 19246 15.00 14.99 Tuwei River Yunnan Yongzitang medicine company 10596 10596 13.80 2.30 Tuwei River Zhaoyang Yongwang coal mine 16000 16000 2.60 2.60 Tuwei River Zhaotong Honglian company 23000 8000 0.60 0.60 Zhaolu River Zhaotong water-supply & drainage company- the 554800 554800 0.18 0.18 Zhaolu River fifth plant Dongmen Zhousan wine plant 203 203 0.98 0.98 River Dongmen Donghou Xincun wine plant 1017 1017 4.97 4.97 River Dongmen Zhaoyang Huangzulin coal mine 12000 12000 1.95 1.95 River Dongmen Zhaotong Wanhe food company 3854 3854 4.85 4.83 River Dongmen Shunfa stone company 2619 2619 0.19 0.19 River Dongmen Yunnan Qiaotong package & printing company 31112 30570 83.75 3.06 River Dongmen Zhaoyang Songlin coal mine 8000 8000 1.30 1.30 River Dongmen Zhaoyang Fumin slaughterhouse 1700 1700 3.19 3.19 River Total 335.88 160.83 Data source: Zhaoyang EPB

Table 3-3 List Main Industrial Exhaust Gas Emission in Urban Area

Quantity of Smoke-dust Smoke-dus SO2 SO2 Dust dust Name exhaust gas production t emission production emission production emission （10000m3/a）（t/a）（t/a） (t/a) （t/a）（t/a）（t/a）

Yunnan Xiyuan Lizhao 815.76 43.2 12.96 25.6 25.6 - - mane product company

Xuxiangwan hollow brick 1512 - - - - 0.47 0.47 plant

Zhaotong tobacco plant of 15301.01 740.07 69.3 96.03 81.63 - - Honghe tobacco group

Zhaotong Dashan carpet 122.36 4.97 0.64 4.03 3.43 - - company

Zhaotong Ronghui construction material 306 4.32 1.73 3.84 3.84 - - company

Zhaoyang Mingda water 101.97 4.14 0.53 3.2 3.2 - - company

Zhaoyang telecommunication pole 81.58 3.31 3.31 2.56 2.56 - - plant Data source: Zhaoyang EPB

Page 34 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

It’s easily observed that the main pollutants come form the food processing, coal washing, and health care medicine production, and tobacco industries. There is no pollutions from heavy metal industry, such as metallurgy industry. There is no main source of the heavy metal pollutants in the urban drainage system and wastewater receiving water body. 3.4.6 River Silts Monitoring

Yunnan Environment Monitoring Center Station conducted the test for pollutant and leaching toxicity of the silt to be dredged from the Liji and Tuwei river in July 2009. Toxicity leaching test were conducted for all the river sections to be dredged for the identification of toxicity. Monitoirng of heavy metal contents in silt were conducted for river sections outside urban area to see if the silt compliance with the requirement of “Pollutants Control standard for Agricultural Use (GB4284-84). If yes, such silt can thus be used for urban landscaping and greening. Since silt be to dredged from river section inside urban area is to be disposaed of at Ludian solid waste sanitary landfill site, there is no need for testing heavy metals for that section of rivers. These monitoring programme results suggested that: The riverways are not suffering from heavy metals pollution As, Ag, Pb, Ni, Cd, Cu, Zn, Total Cr, Be, Ba, fluroide, Total Hg, Cr-VI, CN, and Se in river silt leaching liquor of Liji River and Tuwei River do not exceed the limits required in Identification standard for hazardous waste- Identification for extraction toxicity (GB 5085.3-2007). The pH in leaching liquor do not exceed the limit required in Identification standard for hazardous waste- Identification for causticity (GB 5085.1-2007). Thus it is not necessary to treat the river silt as hazardous waste. heavey metals in silts all meet the requirements of Pollutants Control standard for Agricultural Use (GB4284-84),

Page 35 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

4. ENVIRONMENTAL IMPACT ASSESSMENT 4.1 Anticipated Benefit from ZTUEP

The implementation of TZUEP will address the environmental infrastructure deficiency issue. It will not only improve urban eco-environment, increase the taste of Chaotong City, bul also reduce pollutants discharging into local river, to the Jingsha River and to upstream of the Three-gorges reservoir. It will lay fundation fo establishing ecological barrier for upstream of the Yangtze River and for regional sustainable development. With the completion of the water supply sub-project, it will greatly enlarge the service scope of the urban safe water supply and will increase the qualtiy and safety of the drinking water. 248000 people will be benefited from the efficient centralized safe water supply service in short term as so to improve the urban environment quality and increase the living and health level of the local residents. The protection of drinking water sources will also be enhanced. The wastewater sub-project will enlarge service area and population of the urban wastewater collection and treatment. It will significantly reduce the polution to the local water body. Based the design capacity, it’s planned to reduce the following pollutants: COD1387t/a、

BOD949t/a、SS1022t/a、TN73t/a、NH3-N109.5t/a、TP14.6t/a. The construction of WWTP will avoid and reduce the impact of wastewater discharge on the agricutual production by improving the water environment and environment quality and benefit to the Jinsha river basin. The implementation of river rehabilitation subproject will benefit to the elimiating of internal pollution sources accumulated in the river silt, raise the flood protection standard of the river and improve the water quality of Liji River and Tuwei River. The eco-environment of Liji River and Tuwei River will be greatly improved and the ecological system of these rivers be restored. After the project, the river banks with restored raparian vegetation could be a wonderful landscape of Zhaoyang District. In photosynthesis, the vegetation will purify the atmosphere by consuming carbon dioxide and releasing oxygen. The residents of the neighborhood can enjoy the nature with the improvement of the ecological envionment. Thus, the ecological effect of the project is significant. 4.2 Impact and Mitigation During Project Design 4.2.1 Land Occupation & Resettlement:

Impact related to land occupation and resettlement include (1) people affected by the acquision of land; (2) people affcted by temporary use of land; and (3) people whose livelihoods are impacted during construction activities, According to the site visit of the RAP consulting firm, the resettlement of the project will include 1 district, 3 sub-districts, 5 couties (towns), 18 residence communities, 4 villages. The permanent land acquisition is 214.32mu, land for temporary use is 984mu. the resettlement will be involved in 2 sub-projects, which are river rehabilitation sub-project and Taiping WSP, pressurized pumping station, collective-owned land, as well as the the state-owned land for Qingmen WSP in the WS sub-project. The specific data for the land acquisition is detailed in the table below: The total affected population is 5,760 people out of 1,281 households, of which the non-demolition population of land acquisition is 1,287 people out of 286 households, the population of house demolition without land acquisition is 464 people out of 103 households, the population of both demolition and land acquisition is 194 people out of 43 households, and the population affected by temporary land acquisition is about 874 households. 23 people out of 2 enterprises and public institutions and 195 people out of 65 individual businesses are affected (excluded in residential population).

Page 36 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Table 4-1 statistic of the land acquisition for the sub-projects of ZTUEP Required Required Land for Affected population due collective-owned state-owned farmland temporary to resettlement land for land for No. Sub-project use acquisition acquisition Household Affected MU MU MU MU No. persons River 1 1192 5149 107.62 107.62 385 rehabilitation 2 WS 89 611 103.5 103.5 36 600

Table 4-2 statistic of the collective-owned land ownership for acquisition Farmland Sub-project Street / county Community/village Subtotal Paddy field Dry land (MU) (MU) (MU) Fenghuang Nanwenquan 41.04 13.59 27.45 River rehabilitation Shizha river 14.06 14.06 River rehabilitation Taiping Shuitangba 42.14 42.14 Water transmission pipelin Longquan Guanba 100.2 100.2 e in WS sub-project Taiping Shuiping 3.3 6.5 4.2.2 Cultural Relics

Wanghailou pavilion is the only cultural relics identified to be indirectly related to the potential impact during construction, especially when vibratory pile operation are carried out for river rehabiliation. The distence of Wanghailou pavilion from river rehabilitation activites (100 m) is beyond the designated scope of its protection (30 m). Five bridges on Liji river, (Wukong Bridge, Banban Bridge, Yangjia Stone Bridge, Zengjia Stone Bridge and Shengli Bridge) are not historical relics, their were constructed with ancient architecture syles, and attension should be paid to the protection of them during river rehatilitation construction. 4.2.3 Mitigation Measures

An RAP has been prepared in compliance with relevant Chinese standards and regulations and with WB OP/BP 4.12 Involuntary Resettlement which set up principles for development of compensation and livelihood recovery of the project affcted peoples. Mitigation measures to Wanghailou pavilion had been analyzed and discussed among EA consultant, PO/IA, ZYPMO and local Cultural and Sport Bureau. Opinion on the protection of Wanghailou pavilion as well as chance find cultural relices during construction was delivered by ZYD Cultural and Sport Bureau. During project design stage, alternatives are compared and analyzed and the optimal alternatives were selected to minimize land acqusiation, resettlement, and avoid creation of significant negative social & enviornmental impact duirng construction and operation; enviornmental protection facilities were designed simultaneously when the main project engineering activities were designed. Budget for EMP were also included in the total project cost estimation. The FS and EA recommend that within the scope of 10 m from the WSPs no sensitives structures, such as residential quarters, poultry, latrine or sump would be allowed to locate; no pollution activites such as dumping of gargabe, night soil, waste, and installation of sewer pipeline would be allowed. The EA recommend that a 100 m of protective distance should be kept from the WWTP site and attension to this protective distance should be paid by planning agencies, within which, no new residential quarters or other buildings sensitive to WWTP should be located.

Page 37 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

4.3 Impact and Mitigation Measures Related to Construction Phase 4.3.1 Potential Nagative Impacts

A detailed pollution sources identification and their impact analysis were carried out during construction and find that construction activities are expected to generate the following potential adverse impacts if no prevention and mitigations measures were taken: Impact on air quality during construction Air borne dust due to excavation, demolition, construction vehicle movement and materials handling. At normal condition, the excavation and backfill will not generate sigificant dust. In the spring season when wind is stronger, airborn dust will course certain adverse impact to ambient air. At the wind speed of 2.4 m/s, TSP concentration would be 1.88 times in average (ranging between1.5-2.3 times) of that of the reference point at upwind, equivalant to 1.4-2.5 times of the ambient air quality standard. Air borne dust may impact the area at downwind of the construction sites. Air borne dust concentraction decrease with the distance from its sources. Communities, residential quarters, schools, and other points of environment concerns located withing 150 m of the sources dust might be impacted. When wind is strong, dust may precipitate on nearby drain, irrigation trench or vegetation and will influence water quality or vegetation. Its impact will be vanished with the completion of construction. Tail gases emission from construction machines and vehicles, including transporation trucks, excavator, bulldozer, forklift etc. Such gases include; CO, CXHY etc, characterised by fugitive emission with limited scope of impact on air discontinuously. Average wind speed in the project area is relatively large and is benefit to the diffusion of tail gases.

Offensive odours (such as NH3, H2S etc) released under anaerobic condition from organic metters in river silt, during silt dredging, drying and hauling to landfill site for sanitary disposal of. Reference has been made to the contaminated sediment dredging in the inner lake of Dianchi in Kunming, Yunnan as analogy method in this project EA. During silt dredging and drying, slight smell can be sensed on-site with intensity of grade 2-3, maximium of 4. The impact of such offensive odours is within 100 m and a bit greater at downwind. At the silt drying pits, the intensity of offensive odours will decrease with extension of drying duration. seven villages, communities around the silt drying pits (the nearest one village is 100 m from one of the drying pits) can smell the odours. Its impact is short-term during construction and will be vanished after the completion of drying pits operation. Impact on acoustic quality during construction Noise from construction equipment and vehicular movement, potentially affecting nearby residents and sensitive sites such as hospital or schools, especially in the mid-night. Consideration has been given to the noise overlap when several mechanical equipment works simultaneously. Based on quantitative analysis on noise attenuation with the distance, the points of environmental concerns within the impacted distances and the extent of being impacted at day time and night time were clearily identified and analyzed for taking appropriate migitation measures . Impact on water environment during construction SS and Oil in the construction wastewater from excavation, sand gravel processing, building materials and vehicle washing may pollute water quality. Re-suspension of pollutants from river silt into river water colume due to dredging will increase pollutants concentration and impact river water quality.

Page 38 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Domestic wastewater: The discharge of wastewater from construction camps could create potential new pollution sources, and could also be sources of sludge, solid waste and waste oil from machinery maintenance. Stormwater runoff from excavation sites, stock-piling sits and use of borrow pits will flush the sites/pits and load sand/ss into surface water. Impact of silt drying pits on ground water : The stratum of project site is rather complete, exposed from cambrian system to quaternary system. The permeable layer: pore permeable lay is mainly the new diluvial layer of quaternary system. The permeable coefficient is 1.1×10-4—1.1×10-3cm/s, which is medium pemeability; cranny permeable layer: lower permian Liangshan strongly weathered sand-rock, mudstone, muddy siltstone, quartz Sandstone, and limestone. The permerable ratio is q＜20.0（Lu）with weak-medium permerability. Waterproof layer: it is lower permian Liangshan weakly weathered sand-rock with less development and closed joint fissures. It ‘s relative waterproof layer. The underground water beneath the project area has bilayer structure, the shallow layer is formed mainly by spring water, the deep layer is deep-seated karstic water that is hard to exploitate. The silt drying pits proposed in FSR are farmland, the downstream of which has no water source or important eco-protection zone or sensitive zone. If no any lining measures are considered, leachate of drying pits will pollute shallow groundwater. Leachate of silt drying pits produced during silt drying will be collected and discharged into rivers. Monitoring result shows that concentration of Ag, Ni, Pi, Cr6+, total Hg, fluoride, cyanide, As, Be, Se, Total Ge, Total Cr, Pb, Zn, Cu and pH have meet with Class I of Integrated Wastewater Discharge Standard. Leachate pollution on Tuwei River and Liji River is quite limited. Based on the routine monitoring data from Zhaotong Envornment Monitoring Station, Liji River and Tuwei River are polluted water environment and the water quality presently is respectively worse than Class V and Class V, which has been failed to fulfil the eco-function demand (Class IV water body). The discharge of silt leachate from the drying site is a short-term phenomenon, which will be terminated after the silt dried. Besides, cleanup of the river silt will radically eliminate the release of pollutants from riverbed siltation, and the heavy metal and COD contained in silt will not spread into water directly, which will benefit to water quality improvement for Liji River and Tuwei River. From a long term perspective, the implementation of the Sub-project wil benefit the improvement of river quality. Solid waste impact River silts impact due to river silt dredging, drying on-site and disposal off-site, potentially on water, air, soil, groundwater and disturbance to local residents if dredging, drying, disposal methods are not designed and operated approporly. Based on the river silt monitoirng (including leaching test and pollutants content analysis) result, a combination of following silts disposal approaches were designed and analysis by EA: z green land use along the two sides of rivers of silts dredged from river sections outside urban area for heavy metals in such silt is lower than the limit of Grade III of Soil Environmental Quality Standard (GB 15618-1995) and can be used as resources. z sanitary landfill of silts dredged from river sections in urban area although there are not hazardous waste, but contamiated by receiving domestic wastewater and garbage. Construction wastes and spoils. spoil are expected from WS or WW pipeline installation activities and from river works, which may require on-site and off-site disposal. Calculation of the volume of earthwrok, backfill and balance between were carried out for each subproject. Currently a great deal of infrastructure construction is ongoing in the north of the Zhaotong urban area with an uneven and low topography. Many places requires to backfill and raise the level of foundations in order to ensure the circulating of drainage system in north Page 39 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA area. Spoils during construction will be arranged as unified management and unified dispatch by Zhaoyang urban development and construction committee, mainly be used for the backfilling of Zhaotong avenues or roads. Domestic solid waste from construction workers at 1kg DSW per day per capita ; Without prompt treatment, such solid cause insects, odours and disease, resulting in negative environmental impact. Ecological impact Disturbance on ecological landscape: duirng project construction, land occupation will change the land use pattern permanently, while temporary land borrowing during construction, the excavation for pipeline installation, river rehabilitation activities, silt drying pits establishment, etc. will strip out topsoil, damage to the vegetation and disturb urban landscape momentarily. In general the project area are within the existing urban and suburban area where it is the typital urban and agricultural ecosystem without primitive vegetation and protected plants and animals; River silt dredging, embankment imporvement and slope protection will disturb stablity of aquatic ecosystem. However, Liji River and Tuwei River have long been receiving urban wastewater due to imcompleted sewer sytem, and have long been silted with a little planton and weeds. Fishes have disappeared in the urban sections. Aquatic animals is dominated by such bentho invertebrates as earth worm. During project impelmentation, river silt will be dredged which will change the conditions of river eco-system. However, such changes will be in favor of the formation of a better eco-system, and laying good foundation for the recovery of aqutic biodiversity. Impact on water source protected area: there will be no water intake construction activities under dam of Yudong reservoir and in Dalongdong spring because the proposed two WSPs will take use of exising ones. Water transmition main installation from Yudong reservoir to Taiping WSP may impact its drinking water sources protected area due to discharging of domestic wastewater from contraction camp. Impact on aquatic ecology: disturance and damage on current aquatic eco-system caused by river dredging, slope and river bank protection will affect the stability of eco-system. However, fishes and other life-forms in Liji and Tuwei river and its tributaries have disappeared in urban sections due to long-term siltation and receiving urban wastewater except such Invertebrates as earthworm in the sediment. During construction, the re-suspension of fine sand will create a turbidity plume belt around the dredging site, and thus create to a certain extent impact on aquatic ecology, especially on benthos. During project impelmentation, river sludge will be dredged which will change the conditions of river eco-system. However, such changes will favor the formation of a better eco-system which will change the singularity of eco-system and enrich river landscape. Soil erosion. Stockpiling of earthwork and building materials, sand and stone pits to be borrowed will be created from time to time during construction as well as during river rehabilitation works construction. In the case of raining, erosion would occur on such construction sites, borrow pits and other disturbed land such as river slopes, resluting in loss of soil. The existing erosion intensity in the project area is 1378.17 t/km2.a, belonging to light erosion area. If no water conservacy actions are taken, erosion intensity will be increased with incremental erosion of 11388.08 t/a which will not only impact local socio-economy, but also impact the safe operation of rivers, causing river bed siltation at downstream, and accelerating soil fertility losess, distruction of existing river landscape.

Table 4-3. Projection on potential soil erosion from the river rehabilitation subproject during construction No Zone to be eroded Existing erosion without th Projected erosion with Incremental erosion (t) e subproject (t) the subproject (t) 1 Main construction zone 248.56 1076.93 828.38 2 Temporary borrow pits 781.27 1827.74 1046.47 3 Temporary construction pass way 62.8 252.34 189.53 Page 40 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

4 Temporary silt drying pi ts 301.35 9625 9323.65 total 1393.98 12782.01 11388.03 Social impact Land impact. Some collective lands and state-owned land will be occupied by construction activities either permanently or temporarily, as discussed in Section 4.2.1. Pipelines installation undereath the roads/avenues, and accrossing the road and river rehabiliation works will bring inconvenience to local residents’ movement, and impact normal operation of shops/stores. Traffic congestion by pipeline construction along the existing roads, construction of river embankment, river slope protection, river silt dredging and increased construction traffic in urban areas. Roads may be fully or partially closed during these construction activities causing temporary inconvenience and delays to residents, commercial operations and institutions. Disturbance to water source protection zone when intaking pipeline is to be installed at Yudong Reservior. Vegetation and road surface distruction druing construction. 4.3.2 Mitigation Measures

Based on the results of the impact assessments and the goals of minimizing adverse impacts in accordance with application standards, regulations and WB safeguard policies, in addition to the well scheduled construction activities and sound coordination of construction among the three subproject under ZTUEP as well as other linked urban construction project, the following mitigation measures have been identified to be taken during the construction phase: Measures to mitigate potential air impact: Construction sites, transportation routes and materials handling sites will be water sprayed on dry and windy days, especially if these sites are near sensitive receptors, such as residential and school areas. Using central concrete mixing plants where possible and recommend to use commercial concrete at construction site located at high densely populated or sensitive points Contractors are encoraged to use clean and high quality fuels and keep good maintenance of construction equipment Stock-pipline sites should be located at downwind, installed with bulkhead if necessary, covered or sprayed regularly in the dry season to prevent dust generation and diffusion. Fence or bulkhead for river rehabilitation should be at least 1.8 high. Special person(s) should be assigned to take responsibility of for looking at the stock-piling site. Construction site, especially the pipeline installation sites should be separated by fence or bulkhead; excavation should be suspended when wind speed is reaches 4 grade or higher; Transport with sealed vehicles should be used to haul dredged river silt and materials will be covered during transportation to avoid spillage or leakage. Spoils and construction waste should be hauled out of the site promptly and disposed of properly to keep construction site tidy Overlaying apertured plastic film on top of the dredged silt at the disposal site Strengthen management, cleanup and transport the dredged silt timely to shorten silt retention time at river bank Page 41 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

When dredging silt, it will be necessary to provide hazardous free face mask or mask made of active carbon fiber to protect workers health, and also to equip medical doctor on site to give first aid to workers in case of needThe silt dredging site Measures to mitigation noise impact Construction activities will be scheduled carefully with consultation with nearby residents to minimize the impact of noise from construction machinery. PO/IA and contractors sound establish a sound relationship with surrounding organizations and residents for their understanding. Notify influenced organizations and residents before construction to inform them promptly construction progress and mitigation measures for noise reduction to obtain understanding of the public. If construction has to be conducted at night, the owner should get the procedure done in the EPB. after the approval from EPB, a couple of copies of the approval should be put up at the residence area close to the construction site It’s suggested to set up a telephone hotline to listen to the residents’ complaint of impact of noise and take prompt response to the complaint in order to minimize the impact of noise Normally, construction hours should be arranged properly to avoid construction at night from 22:00 to 7:00. Night-time uses of certain noisy machines, such as pile-drivers and concrete vibrators, will be prohibited in the vicinity of residential areas. Noisy construction machines should be installled with muffler or noise isolation devices. Temporary noise barrier should be set up at construction site near schools and residential areas. Personal protection equipments or PPE (e.g., noise protection earplugs) shall be supplied to workers for protection from the intensive noise. Reduction of mechanical vibration is an important method to reduce noise. A common solution is to prevent rigid connection from machine to other component. Instead, use damping base. Another solution for vibration reduction is damping materials or damper to convert part of vibrational energy to heat. Noise is then reduced by reducing amplitude. Construction vehicles should be routed to avoid passing through such noise sensitive points as schools, hospitals and high densely populated areas and scheduled to avoid rush hours. Noise impact on protected points can be reduced to the accepable level by selecting low-noise construction processes and machines, establishing fence at construction site, and rationally arranging working hours of construction machines. Simultaneous operation of high noisy construction machines at boundary, during nighttime should be banned to avoid noises superposition. Measures to mitigate potential water pollution impact Sewage and other wastewater from construction camps will be collected and treated at septic/sedimentation tanks before discharge to avoid contamination of the surrounding areas. Where possible the wastewater will be discharged directly to the municipal sewer. Sand and stone processing wastewater should be recycled after being treated by sedimentation. Contractor will be specified to strengthen daily maintenance of construction equipment and cover mechanical equipment during raining to avoid oil leakage. Oil separation instrument should be used to avoid oil wastewater discharging freely. No construction camp shuld be located within the drinking water protected zone for Yudong Reservoir. Stricter management and supervision on the behavoir of constrction staff would be practised.

Page 42 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

A combination of hydralic dredging plus pipe booster conveying, and pumping water from dam and dredging manually; are recommented to minimize distrubance and resuspension of silt pollutants into water colume. To safeguard to good water quality of spring water from Dalongdong source, a sanitary protection belt is recommended in the FS. A glass-cover will be installed at the water intaking point of the spring. In order to prevent pollution of leachate of silt drying pits on groundwater , the bottom of silt drying pits will be laid with an impermeable layer (300mm thick soil), above which will be a filtering layer (300mm thick layer of larger sized slag or gravel); in between are temporary blind drainage ditch to collected and discharged leachate into rivers being under construction. Measures to mitigate solid waste impact Materials will be covered during transportation to avoid spillage or leakage. Excavated earthwork should be backilled as much as possible on-site. Spoils can be used for backfulling the north new urban area as is under urban development. Construction waste will be promptly removed from the sites and transported. Silt dredging, drying, and disposal alternatives are compared and analyzed to select the optimal dredging methods in the project design: the combination of pipe booster conveying dredging methold and manual dredging method is selected for river sections in old town area and other sections respectively; .On-site drying pits are identified for air-drying dredged silts to the moisture of about 60%. Dredged and dried silt will be 1) hauled by sealed trucks to landfill site for final disposal for silt from river sections in old town, 2) be reused for riverbank green land establishment. Construction waste should be classified and collected for recycling, those which could not be reused should be transferred to to appropriate disposal area approved by the PMO and the concerned municipality, and should not be mixed with domestic solid waste and disposal randomly. Spoil is strictly prohibited to dump into the nearby Tuwei River or other rivers. Measures to mitigate ecological impact Landscaping of river banks should be will scheduled in the contract by “greening while constructing” to ensure the eco environment benefit could be reflected. Scheduling the construction period to avoid construction activities during reason season; Excavated earthwork should be stockpiled in the desingated places where drainage ditches were provided. Plastic film lining to the temporary construction materials stockpiling pits and recovering the ground as is was after construction completion Stormwater drainage ditches should be provided to the borrow pits, construction sites, stockpiling sites, construction passage road and silt drying pits, and re- re-vegetation of these site should be practices after the completion of construction. Topsoil stripped should be proporly stored, compacted, and reused for landscaping after construction. River rehabilitation activities should be followed promply by landscaping. No construction camps will be allowed to locate in water protected zone of Yudong reservoir. Measures to mitigation social impact In conjunction with the relevant authority, traffic flow regulation plans will be prepared in advance of construction in the congested urban built up areas.

Page 43 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Temporary land occupation will be planned well ahead to minimize the effect of the disturbance and land will be reinstated to its original condition on completion of construction. Top soil will be removed and stock-piled for use during land restoration. Measures to prevent potential impact of vibration on cultural relics Contractor should carry out proper protection to Wanghailou during construction by appointing specific personnel to inspect and protect Wanghailou, use hydraulic pressure or static pressure equipment to reduce vibration as far as possible, and also enclose Wanghailou with plastic fabric around the wall If historical relic are chance found during construction, workers should shutdown and report to the local cultural relics administration immediately. Then it will be subject to the appraisal of the cultural relics administration to identify the construction scope and implementation time sequence In order to protect Wanghailou and valuable historic relics that might be discovered by chance during the construction, Zhaoyang District Culture and Sports Bureau has brought forward the following opinions: z First, during the project implementation, it is not allowed to carry out other engineering constructions or demolish by explosives, drilling or excavation works in the municipal cultural relic wanghailou or within its protection extent and construction controlling area. For any special requirements, it must be approved by both the people’s government which publicized the decree of cultural relic protection, and by the above cultural relics administration. The construction unit should make cultural relics protection scheme to secure the safety of cultural relics according to Article 17, 18, 19 and 20 of the Cultural Relics Protection Law z Secondly, once any cultural relics is discovered during construction, contractor must shutdown immediately and be responsible to protect the scene and report to the District cultural relic administration in time. Construction work will be resumed after the cultural relic administration treatment on site. z The funds for cultural relic treatment will be managed according to PRC Cultural Relic Protection Law and Budget Norm Regulation on Archaeology Survey, Prospecting and Excavation z Wukong Bridge, Banban Bridge, Yangjia Stone Bridge, Zengjia Stone Bridge and Shengli Bridge should be protected during construction. Although Wukong Bridge, Banban Bridge, Yangjia Stone Bridge, Zengjia Stone Bridge and Shengli Bridge above Liji River are not historical relics, it is also necessary to protect the five bridges in the process of construction. CEA requires that vibration piling of sinking cast-in-place pile be adopted in the construction of river section in town and on the sites nearby to Wukong Bridge, Banban Bridge, Yangjia Stone Bridge, Zengjia Stone Bridge and Shengli Bridge. 4.4 Impact and Mitigation Measures Related to Operation Phase 4.4.1 Impact and Mitigation Measures for Water Supply and Wastewater Sub-projects During Operation

Impacts from the operation of WSPs, WWTP and associated facilities (pumping stations) are rather limited in number and magnitude, and generally can be easily mitigated.Most frequent impacts and mitigation to consider include:

Page 44 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Air quality Impact and mitigation measures There would be no significant impact of WSPs on air because raw water quality for water supply is good with little peculiar smell. The EA recommend to install ventilation system in the chlorination house to safeguard operators. In WWTP, Offensive odours from from fine screen, grid chamber, secondary sedimentation tank, sludge dewatering workshop, sludge storage pool and sludge drying site. The main component of these odor pollutants are nitrogen compounds, H2S, CH4, mercaptan and alkyl sulfide which are fugitive emission sources. Reference were made in EA on the monitoirng results of above odours substances from similar WWTP in China and survey on the smell of WWTP: in the downwind direction, odours could be smelt in a distance of 100 meter away from wastewater treatment facilities. Odour could not be smelt if surveyor stand in more than 300 meter away from the facilities. In the upwind direction, odour could not be smelt in the distance of more than 20 meters. According to pollutant discharge standard for urban WWTP (GB18918－2002), a 100 m of sanitary protection distance were defined by EA for WWTP, on which a green belt planted with more arbor trees, combined with shrub and grass, especially at the plant boundary to establish a vegetation barrier will be established. Furthermore, the field measuresment indicate that the nearest points of environmental concerns have been more than 100 m awary from the operational struction, meeting the requirement of over 100 m protective distance. It is suggested to report to local government that no environmental sensitive objectives, e.g. residential buildings are to be built within the 100 m of sanitary protectives distance Surplus sludge, after dewatering and drying to the moisture of 60%, will be added with deodorant, hauled by closed trunks to Ludian landfill site for disposal; Strengthening operational management to bring sludge fermentation in sludge thinkening tanks under control Spraying deodorant agent at pollution source in WWTP to reduce smell. Noise impact and mitigation measures The main noise sources of WSPs, pumping stations, and WWTP during the operation might be water pumps, blower sets, submersible sewage pump. Only when target points are 250m away from noise source, can noise level at daytime and nighttime would reach the standard. Low noise of such equipment should be selected and equipped with mufflers. WSPs, WWTP and presure pumping station will be designed to increase green land coverage as much as possible and be planted with evergreen arbor or arbor/bush to establish a building a sound-proof barrier. To avoid noise impact of presure pumping station on nearby residents, following specific mitigation measures are proposed: z Roots blower will be installed in individual room in the WSP with muffler z Pressure pumping station will be located at least 40m away from residential buildings z The noise partition measures will be adopted on wall, window and door of the pressurized pumping station z Vibration alleviation rubber will be used for the foundation of pump station, influent and effluent pipelines Water quality impact and mitigation measures During WSPs operation, a recycle process has been designed: a sludge discharging regulation tank will operate to store slurry from sedimentation tank and back-washing water, Page 45 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA while supernatant fluid will return to the beginning to treatment process, thus no production wastewater will be discharged. Wastewater from staff (75 persons for the two WSPs, 33 for WWTP): will be discharged into urban sewage network. The WWTP to be extended at existing WWTP, which is also included in ZTUEP, will has enough additional capacity to accommodate the additional flow of wastewater resulting from water supply production components. The volumes of water to be intaken from Yudong reservoir and Dalongdong spring by Taiping and Qingmen WSPs respectively are within the scope of designated urban water supply capaity of the two water sources and account for small proportion of the total storage volume of reservoirs or the annyal replenish flows, therefore, it will not impact on reservoire’s other water supply to its townstream and will have slight impact on water quality in the reservoir and its downstream. Solid waste impact and mitigation measures WSPs and WWTP will produce sludge, screenings which will require appropriate management. the production of sludge from WSPs will be limited (0.65t/d), as water is from the reservoir with good quality and sludge from WWTP will be 2190t/a (including quicklime) (at moisture of 60%) Sludge from WSPs will be dewatered in-plant, then be hauled to WWTP, where they will be further dried, together with dewatered WWTP’s sludge, by applying quicklime cheimical dyring process to the moisture of 60%, and thus be delivered to the Ludian Domestic Landfill Station which is under construction. Solid water from staff (45 persons for the two WSPs and 33 for WWTP) , as well as sludge from Taiping and Qingmen WSPs will be handled the same way as WWTP sludge When hauling, the sludge should be covered with plastic film when it is raining to mitigate potential secondary pollution of sludge on the transportation route. Measures to protect the sources of water supply The requirement and rules of the Water Pollution Prevention and Control Law of the People's Republic of China and Regulations for the Yudong Reservoir Protection in Zhaotong City should be strictly obeyed; The whole water body of Dalongdong spring will be defined as sanitary protection zone, on which, protection measures for such sanitary protection zone should be strictly enforced.

4.4.2 Impact and Mitigation Measures for River Rehabilitation Sub-projects During Operation

During operation, river water quality, and river ecosystem will be much more imporved because the most of wastewater outfalls along rivers will be intercepted to reduce significantly pollution loads to the river, pollutants accumulated in the silts will be removed, resulting in the decrease of anaerobic microbs and increase of aerobic microbs, increase of desolved oxygen, the growth of of sub-mergent macrophytes, and increase of aquatic animals. Furthermore, the ecological embankment and slope protection design, such as such as Gabion fexible structure, or the conbination between rigid and flexible structure will benefit to the enhancement of self-purification capacity of the river and imporvement of river water quality as well as the maintenance of ecological balance.

Page 46 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Hydrulic conditons of rivers to be rehabilited will no be significantly impacted because the project activities will not involve any water diversion, river course widening, except for river silt dredging . During operation, wastewater from staff of river operation and meantainence, and from residents residented at river banks may continue to pollut river water enviornment. Such wastewater will be collected by the interception trunk sewer installed along river banks and conveyed to WWTP for treatment. To strengthen eco-environment protection along the riverbanks, stricter managemnet measures were recommended, such as: the impoved long-term monitoirng and evaluation of the rivers, inters of hydrology, water quality, aqutic ecology; enhanced research on the recovery of river aqutic ecology; better maintenance of the green belt along the river banks; oversee the impact of the operation of other water engineering works on the rivers. In order to protection eco-environment of river sides, following measures are proposed by EA: z Establish a comprehensive monitoring system to conduct long-term biological and hydrological monitoring, conduct phased evaluation with reference to the overall historical material and monitoring data. The evaluation will focus on the structure and function of ecological system, as well as the development trend. Adjustment of objective and project engineering will be made based on the outcome of evaluation. z Reforestation construction and management should help strengthen self –maintaining mechanism and anti-disturbance ability of the greenbelt z Enhance the research of rebuilding and restoring the aquatic eco-systems in order to set up conditions for the growth of aquatic eco-systems and the exertion of functions. z Adopt “Equivalent occupancy and compensation” to develop planting and reclamation in strange land and compensate according to relevant national policies. z Enhance the research of rebuilding and restoring the aquatic eco-systems in order to set up conditions for the growth of aquatic eco-systems and the exertion of functions z Reforestation construction and management should help strengthen self-maintaining mechanism and anti-disturbance ability of the greenbelt. Apart from the similarity of the eco geography, the special habitat coercion of the city should be considered in the selection of plants. Anti-reversion and adaptive testing process should be emphasized. Strengthening plants selection and screening of different ecological plants and various plants. Accelerating the adaptability and stability of cultivated plants and existing plants. Intensifying the soil improvement as a core site conditions. Shifting the key of reforestation construction to improving the site conditions and promoting the planting soil based on artificial medium. Increasing the technique of cultivation and conservation management to grow the plants. z Implementing routine management and supervision to all facilities by full time staff to secure regular operation and affectivity z Reinforcing management on water work and prevent big operational impact to river(lake) hydrology

Page 47 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

z Periodically inspecting the environmental protection measures implementation and fulfillment in the operation phase 4.5 Environmental Risk Analytsis and Mitigation Measures

Risk 1: Liquid Chlorine and Chlorine dioxide leakage at disinfection process from two WSPs and pressure pumping station due to improper operation when cylinders are replaced, or due to breaks of pipes after being used for long time, or due to low quality joint washers of valves. In most cases, the imporper operation of the replacement of cylinders will cause the accident.. Mitigation Measures include: The the project design phase, the layout of disinfection house should be kept with a protective distence (at least chlorine gase diffusion radius) away from other buildings/structures, and be equipped with facilities as ventilation, alkaline absorption and spray, safety equipment, such as chlorine leakage, fire, explosive gas, toxicity gases monitoring and alarm system and automatic switch up of the facility, as the chlorine and chlorine dioxide concentration exceeding the standards; In the construction phase, Set up defense and accident re-action facility for liquid chlorine dioxide tank; Set up accident first aid system at water purification plant, including monitoring alarming, In the operation phase, prevent strong light radiation to liquid chlorine storage; Install chlorine leakage alarm and liquid chlorine dioxide absorption facility or other safe measure at liquid chlorine dioxide storage and ensure the; telecommunication, commanding, rush repairing, rescuing etc; Packaged with liquid chlorine dioxide and toxic sign for liquid chlorine dioxide steel bottle; and implement “Gaseous Bottle Safety Supervising Regulation” for liquid chlorine dioxide steel bottle storage; Transact “Flammable and Explosive Chemical Certification” for liquid chlorine dioxide, transportation with hazardous product sign, and fully implement “Gaseous Bottle Safety Supervising Regulation” in its transportation Stringently avoid pipe system leakage, especially for valve and connection parts and periodically test for pressured parts and the closure soft pipe. A draft emergency preparadness programm is recommended in EA and the details of it should be developed by operators. Risk 2: The accidents, such as abnormal operation of facilities, power cut and natural disasters, and mis-operation would cause the decrease of wastewater treatment efficiency, untreated wastewater will be discharged directly into surface water and make the water polluted. Mitigation Measures include: In the project design phase, double loop power system should be considered to minimize risk of power cut-off; By-pass pipeline at key treatment process should be installed to allow overflow of sewage in the acceident; Stand-by equipment should be considered for the key treatment equipment, such as sewage pumps and sludge pumps for prompt replacement; In the design phase, storm water pipeline should be seperated from sweage pipeline to drain storm water runoff promptly out and to avoid overflow of untreated wastewater at storm time The elevation of the outlet of treated effluent from WWTP should be higher than Tuwei River.

Page 48 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

In the operation phase: establishing WWTP’s operation management system and operation responsibility system; Carrying out training for management and operation staffs and establishing technical; all the unqualified staffs are not allowed to do the work; Employing experienced technologists to take charge of the technical management work; In the operation phase: rnhancing patrol and inspection on sewer pipelines and timely identify the problems and find solutions on the problems; Improving maintenance and management of facility and equipment and preparing stnadby machines for the key equipments to ensure double loop power supply; Keeping the doors and windows of sewage pump rooms closed to ensure noise level be within the limits of the boundary of plant, In order to reduce the impact of offensive odor gas from pump station, collection well should be closed and wastewater should be promptly pumped into pipes then be convoyed into WWTP timely. Cleaning up and transport the screenings soon after after dewatering; Planting trees around the WWTP and selecting plants that have high rate of offensive gas purification Trying best to ensure the normal operation of screen and grit chamber to achieve the expected reduction of SS and COD. Hanging the alarming signs at the discharging gates during the accident period and reminding relevant departments to take preventive measures Risk 3: Break of wastewater network: During the opeartation of drainage pipe, sewer pilelines might be broken because of the rolling of vehicle and construction of municipal works. The wastewater would spill over and pollute the surface water after the break of network. If the network of water-supply breaks at the same time, the wastewater will pollute the drinking water and result in environmental accident. Anyway, this kind of accident is very low. Mitigation measures include: The management of wastewater network should be strengthened. First-aid repair should be carried out when wastewater network breaks, so that the leakage of wastewater and pollution of surface water could be reduced. This CEA requires the design and implementation units reinforce the anti-seepage and construction management in overlap region of wastewater network and water-supply network, so that the pollution accident could be prevented. Risk 4: dredged silt pollution on environment In the construction phase, river silt dredging may couse pollution risk to the river water quality due to the release of pollutants from silt into water colume; Silt dredging, drying, hauling and disposal may generate offensive odours to impact nearby residents; Silt drying pits and disposal site may pollute groundwater if the drying pits and disposal site are not installed with impermeable layers; Silt leakage from vehicles would a be a risk of polluting enviornment. Mitigation measures include: Existing land use pattern of the pieces of land to be borrowed as silts drying sites are farmland use. Impermeable liners will be installed at the bottom of drying sites although there is no ground water to be used as drinking water sources at downstream of ground water flow direction, no ecological protection points or vulnerable points nearby. The impermeable liner will be made of a layer of 300 mm tamped clay, a filtration layer of 300 slag or gravels, installed with drainage trenches to convey leachate into rivers. According to the silt leaching test results of silts conducted by Yunnan Environmental Monitoring Centre Station on July

Page 49 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

2009 for Liji River and Tuwei River system, contents of such pollutants of Ag, Ni, Be, Cr+6, Hg, F- CN-, As, Ba, Se, Cd, Cr, Pb, Zn, Cu and pH in silts can meet the requirement of Class A of “Integrated Wastewater Discharging Standard” (GB 8978-1996). At normally circumstances, there would be no significant impact of silt drying sites on environment. However, if the lining and drainage trenches for drying sites were disigned irrationally, there would ba a risk of inflow of fine particles dredged silts into rivers to increase SS in the river water. According to the analysis of the features of river silts contamination, silts in different river sections will be disposed in different ways: dredged and dried silt from river sections outside urban areas will be used for green land, while dredged and dried silt from river sections in the urban areas be hauled to Ludian solid waste sanitary landfill site (designed as a sanitary one, installed with impermeable liner and landfill gas emission and inflammation facilities). With regard to the first disposal way, heavey metals contents in silts to be dredged from river sections outside urban area compliance with “Control Standard for Agricultural Use of Sludge” (GM4284-84), and lower than Class III of “Soil Environmental Quality Standard” (GB 15618-1995), the requirement for woodland use. Therefore, the silts will not significanly pollute and harm vegetations. With regard to the second disposal way, it is the most safe way to haul silts to be dredged and dried to Ludian solid waste sanitary landfill site for disposal to ensure that the silt will not enter into open environment. Risk 5: Collapse of Dams In the operation phase, environment risk of river rehabilitation is the destruction of rehabilitated rivers by the dam-collapes at upstream dam (Yanjiafen Dam, Qingmen Dam, Beizha Dam, Jiaojia Dam, Toudaogou Dam, Fangyangchong Reservoir and Shenggengtang Reservoir). The basic information of all dams are in linked projects section of this report. In the WB mission during the project preparation phase, independent inspection and evaluation of the 7 dams was conducted by WB dam specialist. Based on the exisiting issues, In the Dam safety Report, prepared by WB dam specialist, it i requires the reinforcement of dam safety management, development of operational maintanence surveillance manual (OMS) and emergent preparadness plan (EPP) for accident etc. all of the above could effectively reduce the risk of dam break and ensure the normal operation of the project.

5. Analysis of Alternatives

During the project development, various alternatives have been proposed, screened and compared with technical, economic as well as environmental criteria. In terms of the environmental comparison for the alternatives, the primary objective was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. 5.1 Alternatives of“With” and “Without” Sub-projects

Based on the environment benefit and social economic development, this project analyzed the conditions of without water supply, wastewater, and river rehabilitation sub-projects. After analysis, the conclusion shows that without the three subprojects, Zhaotong central urban area will not meet the future water demand necessary to achieve the social and economic development targets and a part of the population will continue to rely on untreated spring water and underground water for drinking. Increased volume of untreated urban wastewater along with the rapid industrialization, urbanization and population growth in the area, will be discharged and polluted the receiving waters directly. The surface water quality would continue to deteriorate, threatening drinking water safety, groundwater quality, ecosystem particularly agriculture production relying on irrigation, and the standard of living for the residents in the project cities and those downstream, and eventually weakening the ability for sustainable economic development in the region; the river silt will exert negative impacts to

Page 50 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA flood discharge and threaten urban safety, the river water quality will also be deteriorated. Therefore, all the three sub-projects are necessary 5.2 Location Alternatives for WSPs and WWTP Sites 5.2.1 Location Alternatives of WSPs

Two alternatives are considered for Taiping WSP and three alternatives are considered for Qingmen WSP. In addition to the consistency with urban master plan, the WSP site selection should consider following aspects: Reasonable water distribution networks arrangement Distance to the water sources for better layout the raw water transmission pipeline Better wastewater discharging condition; Sound geological condition for better water distribution; Wider space available for long-term future expansion; Better sanitary environment and be suitable to establishment of prevention barrier; Minimum demolition and less farmland occupation; Transportation convenience; and Low cost for construction, operation and maintenance. After the careful analysis, Taiping WSP site is selcted to be located at a cross between a highway and an urban road, and Qingmen site is selcted to be located at an planned industrial subzone, south to railway sation. The sites of WSPs are at sound elevation for better water distribution and are believed least cost sites minimue social and environmental adverse impacts. 5.2.2 Lacation Alternatives for WWTP Site

Two alternatives are considered for WWTP site, one is to constructed a new WWTP at the south end of the planned north new urban area, a junction between Wayao River and Ganmei Road serving only for the planned new urban area; The other is to extend the existing WWTP where the land for extension is already available serving for both the planned new urban area and part of old towns originally unserved by existing WWTP. Following aspects are considered for the selection of WWTP site alternatives: Planned Land use pattern and its availability Sound terrain conditions to collect and convey urban wastewater by gravity to WWTP and dircharge treated effluent to recipient water body Location of the prevailing wind direction Sewer pipeline arrangement Alternative 1 has disadvantages in long distance wastewater transfer which goes through the old town, difficult in sewer pipeline installation, but it has the advantages of extendiong service area of the old town, making full use of existing WWTP facilities for future operation and management, which reduces the project investment. Alternative 2 has disadvantages in the location, which is in the city center, close to surrounding residential area, and is windward to the old city centre; the site is on farmland, which brings problem in land acqusition, then higher investment than Program 1.

Page 51 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Hence the alternative 1 is recommended in the FSR, i.e. extension on the reserved land of existing WWTP. 5.3 Technical Process Alternatives 5.3.1 WWTP Treatment Process

In China, the mature and widely applied main treatment processes of urban secondary WWTP are A/A/O process, modified SBR process (ICEAS process), and oxidation ditch. The technical characteristicses of these processes are listed in the table below. These three treatment processes have many sucessful application practice with good denitrification and dephophsorization functions and with similar investment for the WWTPs in same scale. Based on the specific conditions of the project, biological treatment process mainly by oxidation ditch will be considered as recommended alternative for this project, the reasons include: Existing WWTP in Zhaotong City is using oxidation ditch process. ZTMWSSC have already got rich experiences in operation and management of this process and company could easily have the equipment supplied and staff allocated. Oxidation ditch process has a good adaptation ability and operational flexibility. It could meet the treament requirements in different period and make the effluent meet the design discharge standard. Oxidation ditch process, which has a high organic loading and strong capactiy to be adaptive to the high fluctuation of influent load with high removal rate of BOD5 (95％～98％) and CODcr (90～95％). This process also has a high ability of nitrogen and phosphorus removal. A strong extendibility of oxidation ditch system Therefore oxidation ditch process is recommended as the treatment process for Zhaotong new WWTP. 5.3.2 Disinfection Process of WWTP

The often used disinfection technique for the WWTP includes liquid chlorine disinfection, UV disinfection and ozone disinfection etc. the characristic of the 3 disinfection methods, their advantages and disadvantages are carefully discussed and compared. For instance: chlorine disinfection will generate carcinogenic byproduct of chloroform and occupy larger land for construction; Ozone disinfection consumes higher energy and long disinfection procedure. While, UV disinfection has advantage of little contact time, easy civil works construction and is more environmental-friendly, the application of wastewater UV disinfection will become a mainstreamed. Therefore, disinfection method of the WWTPs will use UV disinfection. 5.4 Alternatives for Solid Waste Disposal 5.4.1 Dredged Silt Drying Alternatives

River silt, after being dredged, contains high moisture which need to be dried before reuse or final disposal. Three alternatives for the dredged silts drying are considered: Alternative 1: Air-dry in temporary drying pits: ground of the drying pits will be levelled with bottom laid with an impermeable layer (300mm thick soil), above which will be a filtering layer (300mm thick layer of big slag or gravel). The site will be divided into 12 cells (around 1000m2 each) separated by brick wall of about 1.1 m high. The silts will be dumped into the cell (from cell 1 to cell 12) with silt thickness of about 0.8m. At the middle of each

Page 52 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA temporary stockpiling cell for natural drying, a drainage trench filled with stone will be laid. The water will be drained through the trench network and discharged into river. Silt will be dried in drying pits and will not be hauled out to sanitary landfill site for disposal until moisture reduced to about 60%. Alternative 2: Sedimentation and Sanitary landfill: under this alternative, drying pit are also necessay which are to be divided into 1~12 stockpiling cells. Each cell should be first excavated to a certain deep and encircled by earth bank. Dredged silt will be conveyed by tankers or pipes into the cells rotatively for sedimentation. After natural sedimentation, the supernatant will be discharged into the rivers nearby. The residual surface water above the silts could be extracted by pumps, or the leachate be drained througha graval drainage ditch into leachate holding well and extracted out to allow silt further air-dried and conslidated. Consolidated silt will be hauled to sanitary landfill site for final disposal. . Alternative 3: mechanical dewatering method: which is based on alternative 1, plus mobile dewatering facilties such as belt pressure-filtration machine to fasten the dewatering speed of silts and cycle of silt treatment. Advantages and disadvantages of these alternatives and analyzed in terms of drying duration, construction cost and potential secondary pollution and recommended alternative 1 which is also consistance with silt dredging method. 5.4.2 River Silts Disposal Alternatives

A leaching test on silts to be dredged from Liji River and Tuwei River. Result of leaching test indicate that river silts do not belong hazardous waste. Furthermore, heavy metals in silts in river sections outside the urban areas meet the requirement of “Control Standard for Sludge Agricultural Use” (GB 4284-84). Different alternatives are considered for the disposal of river silts: Alternative 1. Mixing the silts with construction debris proporly for land levelling: for river silts with heavy metals compliance with GB 4284-84 and lower than Class III of GB 15618-1995, and with lower fertility, this alternative is applicable to level the ground of north new urban areas. This alternative can reduce the volume of silt to be landfilled, as well as the cost. River silts hauling distance is relatively shorter with lower cost of transportation. However, this alternative may potentially pollute ground water under the levelled ground. Alternative 2. Landfill: Although heavy metals in silts to be dredged from river section inside urban areas compliance with GB 4284-84 and lower than Class III of GB 15618-1995, they have been comtaminated by organic matters from urban sewage and garbage. In order to prevent the comtaminated silts from entering into open environment, the these dredged silts, after drying, should be hauled to Ludian sanitar landfill site for final disposal. The cost of this alternative is relatively higher. Alternative 3. Greenland use: for river silts with heavy metals compliance with GB 4284-84 and lower than Class III of GB 15618-1995, and with higher fertility, this alternative is applicable. They can be use directly on the greenland to be established under river rehabilitation sub-project. This alternative can effectively reduce landfill volume and cost. Nitrogen and phosphoruse in silts can also be fully used. These three alternatives are discussed and analyzed in terms of the silt hauling distance and cost, and significance to its impact on environment. A combination of both green land use and landfill is recommended by EA for the disposal of river silts, which can reduce the cosntruction cost and occupation of Ludian landfill volume. Heavy metals in silts to be dredged from rive sections outside urban area are lower than Class III of “Soil Environmental Quality Standard” GB 15618-1995, meeting the requirement for woodland use, it will not cause significant impact on vegetation. Reuse of waste is also a win-win solution.

Page 53 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

5.4.3 WWTP Sludge Disposal Alternatives

Three alternative for final sludge disposal, e.g incineration, landfill and agricultual usage were analysed. In order to avoid potential secondary pollution from sludge, sludge landfill is finally selected at pre-conditions that sludge be dewatering and quicklime chemically dried to the moisture of about 60% before landfill disposal, and sludge be properly covered when transported to landfill site to avoid the leakage and impact to the ambient environment along the hauling route. Meanwhile, IA should actively study the approach for sludge resource utilization. The sludge component should be indentified. If the sludge meets the standard of sludge for agricultural use written in table 6 of the Discharge standard of pollutants for municipal wastewater treatment plant (GB18918-2002), the sludge could be used as fertilizer for greening and forest nearby in order to reduce the cost for sludge disposal. 5.5 Construction Method Alternatives 5.5.1 Pipelinge Installation Alternatives

Three construction alternatives for water distribution and sewer pipelines: open trench excavation, pipe-jacking, and horizontal directional drilling were considered and compared in terms of applicability, safety, environmental impact, technical requirement and construction cost. Given that the proposed diameter of water distribution pipelines are DN 200-800, sewer pipeline DN 400-1200. Most of the land along the pipeline are farmland. The soil coverage thickness for the pipe is about 1.0m. This depth is good for the excavation. The wastewater pipe and water distribution network are laid beneath municial main roads. It would be laid while the construction of road. Pipe channel excavation is recommended for the economical investment of project, except for pipe-jacking for a small section of sewer pipeline. 5.5.2 River Silts Dredging Alternatives

Main methods of river dredging are: dredging boat method, hydraulic dredging machine and pipe booster conveying methold and manual dredging method of river course excavation, pumping water by dam and manual desilting. (1) dredging boat alternative dredging boat for silt and waste dredging is high efficient and speedy at low cost. However it requires large scale of the river way for passing the dredging boat. However this alternative is not applicable to Zhaotong for there is no large water body and dredging boat. (2) hydraulic dredging machine and pipe booster conveying alternative The dam would constructed section by section in the riverway with an interval of 700~800m. the water in the dam would be drained or diverted. The hydraulic dredging machine would be installed after the riverbed is emerged. The high-pressure water jet would drop the silt pump under the design depth and forming a swag. A shallow slot would be swashed out in front of sludge pump. The soil around the shallow slop would be excavated in fan shape, and then the soil would be crushed and and transferred to silt site. After this work, the silt pump would be moved to carry out another work in the same method repeatedly. Characteristic: a) It is easy for movement and loading with small size of the machine. The silt dredging is speedy with high concentration of dredged silt. The construction cost is lowered in this way. b)the machine is flexible for operation, especially convenient for operation in narrow and complex river body c) easy control of the construction quality. The whole procedure is directly visible . (3) manual dredging alternative Page 54 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

the dam would be constructed section by section with an interval of 500~600m. the water in the dam would be drained or diverted. After the riverbed is emerged, the sludge dredging would be conducted by manually. This method requires high labour intensity with great impact on ambient environment. It could not be used in urban area. However, it could be applied in the suburb due to its simple process and low equipment investment. The 3 dredging alternatives mentioned above are suitable for river dredging in plain. However, when considering the small size of the river body in Zhaotong urban area, its low water level and the short bridge, only the hydraulic dredging machine and pipe booster conveying methold is recommended for dredging in old town region. manual dredging method is recommended for dredging in other river sections.

6 PUBLIC INVOLVEMENT AND INFORMATION DISCLOSURE

6.1 Public Consultation

Two rounds of public consultation were conducted during the course of environmental impact assessment. The first round was carried out after finishing the outlines of different EIA reports during September 2009, and the second round after the draft EA report from Novermber to early December 2010. The primary objective of the first round was to gather information on public concerns about the Project, while that for the second round was to communicate the EIA findings and proposed mitigation measures and confirm public acceptance and satisfactory. Both rounds of public consultation focused on the project-affected people and beneficiaries of different age groups, genders, educational backgrounds and occupations as well as other stakeholders. Public consultation methods used in EA are: in the first round of consultation, questionnaires designed for each sub-prject are circulated to each groups of sub-project and targeted public persons, including males, females, different education background and occupations, while in the second round of consultation, the publics for all the three sub-projects were gethered together for a EA public workshop. 6.2Information Disclusure

Information about the Project, as well as the location and timing of public meetings, summary of individual EIAs were circulated to the local communities, groups to be consulted and disclosed through major local newspapers, website. Timing, methods, contents and feedbacks of public consultation are summarized in table below

Table 6-1 Public Informed Information Time Method Information disclosed release (1)name and introduction of the project (2)name and contact information of the IA

th (3)name and contact information of the EA 8 September 2009 unit First found when EA outlines Pasting bulletins in local communities (4)working procedure and content of the were shaped EIA (5)main potential environment issues drawing public attention (6) method for public commenting 24th November circulating message to groups Abstract of 3 sub-project EIAs 2009, Second 20th ,24th , and 26th Release of project EIA on local TV (1) method for reading the EA first draft round of November 2009 station, Zhaoyang Information Website, initial draft of EIAs local newspaper respectively (2) method for public commenting were shaped Page 55 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Table 6-2 Information Disclosure

Time of 1st Time of 2nd Name of Project Submission Location of information Ref. EA CN / EN information information and EA/EMP of EA/EMP disclosure disclosure disclosure

CN and Dec 25, To be on WB infoshop, YN 1 CEA Y EN 2009 PMO EIA of water Abstract of 3 sub-project EIAs Dec 28, 2 supply Y CN Zhaoyang TV Station, 2009 sub-project 2009-11-24 Zhaoyang Daily Newspaper, 2009-11-20 Zhaoyang Information Website, EIA of Y CN 2009-9-8 Zhaoyang PMO, Zhaotong Dec 28, 2009-11-26 3 wastewater Water Supply & Drainage Co, 2009 2009-12-3 sub-project Zhaotong Urban Construction Investment & Development Co., EIA of river Y CN Dec 28, Ltd, Yunnan Institute of 4 rehabilitation 2009 Environmental Science, sub-project YNPMO 6.3 Results and Conclusion Table 6-3 Summary of the Public Consultation (Individuals)

Issues curved Issues concerned Recommendations

What environmental impact ·recommend to minimize noise impact on Protection of water sources, issues are mostly residents’ living impact on water, air, pollution concerned, do you have impact of solid waste, impact any recommendations on ·recommend to improve construction on eco-environment environmental issues condition, reduce impact during Water construction。 supply ·nobody object to the sub-project, 95.8% of people questioned are sub-project supportive, 4.2% feel unceremonious Do you have any objection ·people believed that water supply sub-project will improve urban to the sub-project, and environment and residents’ living quality, and will promote economic What are the reasons development and environmental improvement of Zhaotong central urban area. All the people questioned are supportive.

·recommend to minimize noise impact on What environmental impact Air pollution, solid waste local residents living during construction, issues are mostly pollution; and noise pollution shorten construction duration as much as concerned, do you have during construction possible to reduce noise impact. any recommendations on

environmental issues ·recommend to transport solid waste out of WWTP to reduce odour pollution Wastewater sup-project ·nobody object to the sub-project, 93.85% of people questioned are supportive, 3 persons did not make comments

Do you have any objection · people believe that sewerage system influence largely on urban to the sub-project, and production and living environment. The establishment of urban sewerage What are the reasons system should go in parallel with the development of urban area as an municipal engineering project. The project implementation will improve local water quality, improve living condition of local residents. All people are supportive It’s suggested to reduce the noise impact What environmental impact on the residents as much as possible. The River issues are mostly impact on water environment should be Pollution of water, air, solid rehabilitation concerned, do you have reduced to minimum. waste and vibration sub-project any recommendations on It’s also suggested to shorten the environmental issues construction phase in order to reduce the inconvenience for the residents

Page 56 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Issues curved Issues concerned Recommendations

· No objection is received. 98.63% of total are supportive. Only 1 person is neutral. Do you have any objection to the sub-project, and · The respondents consider that the river environment in Zhaoyang district What are the reasons is bad and to be improved. River rehabilitation will not only favour the urban living environment and landscaping, but also promote the image of Zhaotong city

Table 6-4 Summary of Public Consultation (Social Groups) Issues surveyed Issues concerned Recommendations ·avoid construction during noon time and The most concerned issues mid-might，low-noisy equipments should be among the impact of project selected for construction. construction on environment; ·Environmental protection measures should be suggestions to the taken during construction to mitigate adverse Pollution of wastewater, environment issues produced impact. waste gas and solid by project waste, noise impact, ·Layout of water distribution pipeline should be The most concerned issues impact on designed scientifically and rationally to among the impact of project eco-environment harmonize with other urban infrastructure and construction on environment; to avoid repeat construction and open suggestions to the Water excavation repeatedly. environment issues produced supply by project sub-project ·strengthening the clearance of solid waste

·100% of groups surveyed shown supportive attitude The most concerned issues among the impact of project ·all groups beloved that the north new urban area is planned urban area, at construction on environment; present, urban infrastructure in north new urban area lags behind urban suggestions to the development. The implementation of water supply sub-project will improve environment issues produced urban environment, ensure safety and reliability of water supply, reduce by project over-development and over-use of shallow ground water, avoid pollution on water sources, reduce wasting of water resource, improve living condition of local residents. The most concerned issues Strength construction quality supervision and among the impact of project control, and speed up implementation to benefit construction on environment; to Zhaotong people. suggestions to the Recommended to dispose of solid waste from environment issues produced WWTP in centralized way. The disposal site by project Pollution of odor and should be far away from urban area The most concerned issues solid waste and noise among the impact of project construction on environment; Ensure the treated effluent be compliance with suggestions to the discharging standard. Considerations should Waste water environment issues produced be given to the reuse of treated effluent. subproject by project ·100% of groups surveyed shown supportive attitude · all the groups believed that the existing WWTP cann’t meet the need of Any objections to the project urban expansion and population growth. The extension of WWTP is construction? If yes, please adaptive to urban development. It will reduce pollution of wastewater on write your reason rivers, effectively protect eco-environment, significantly improve urban environment quality. It is of importance significance to environmental protection. It is imperative to implement this sub-project. The groups strongly support the subproject. Page 57 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Issues surveyed Issues concerned Recommendations

The most concerned issues It’s suggested to centralize the disposal of solid among the impact of project waste far away from urban area; construction on environment; The construction materials should be stacked suggestions to the Pollution of water, air, at specified place to facilitate the residents environment issues produced solid waste and vibration passing by; by project and also the impact of When the construction is carried out nearby the The most concerned issues transporting materials on school, it’s suggested to avoid constructing among the impact of project the street cleaning during school hours; construction on environment; The pollution produced by the construction suggestions to the should be dealt with in line with the regulation to River environment issues produced reduce the environment impact to minimum. rehabilitation by project subproject 1. The respondents consider that the river environment in Zhaoyang district is bad and to be improved. River rehabilitation will not only favor the urban living environment and landscaping, but also promote the image of The most concerned issues Zhaotong city among the impact of project 2. 100% of the social groups investigated are supportive to the project construction on environment; 3. They think river rehabilitation is the long-years wish of the citizen. River suggestions to the rehabilitation is the key to the urban environment. The clean river will not environment issues produced only beautify environment, but also purify the air quality. It’s a landscape of by project the city. The project will improve the living environment of the residents, promote the image of the city, it will also help realize the eco sustainable development. After the information releasing and public participation, conduting questionnaire, seminar and analysis, the conclusion is made as following: （1）form the questionnaire of first public involvement phase, the respondents are certain awared of the EP. A majority think there will be a favorable eco and social benefit with the project construction, which will facilitate the development of economy in Zhaoyang district. They support the construction of project but they require to solve the portential environment pollution issues properly. （2）the public representatives at the seminar of the second public involvement phase supports the project implementation. They require necessary EP meassures to ensure no negative impact on the ambient environment. Most of the farmers’ concerns stay at the compensation for the land acquisition. The owner should communicate with the farmers as soon as possible to guarantee the interest of the farmers. （3）for the environmental issues reflected by public and for the requirement of the EP for the project construction, the project owner should ensure the EP work and take proper countermeasure for the pollution control to ensure all the pollutants meet the discharging standard and will produce no negative impact on the residents living by during the project construciton and operation phases. In general, through the analysis of the pollutant production and control and assessment of the environment impact of the project, the CEA agrees with the comments received from the public and social groups. The CEA also agrees the construction of project. The environmental issues raised form and concerned by the pubic is avoidable under strict production management and pollution control. The project owner should strength the communication with the public living by. The public benefit should be emphasised. The normal operation of pollution control facilities should be ensured by strict production management. The pollution control measures should be carried out while project construction in order to eliminate the doublts of the public and ensure the stable production, safe environment, stable society, development in harmony.

Page 58 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

7 ENVIRONMENTAL MANAGEMENT PLAN (EMP)

EMP is proposed to outline the mitigation, monitoring and institutional measures to be taken during project implementation and operation to avoid or control adverse environmental impacts, and the actions needed to implement these measures. For each proposed measure, the EMP defines the technical content, the estimated cost, the schedule of implementation, the role and responsibilities of the different persons or institutions, the source of funding and the way to monitor the results. The environmental management plan has already included in EIA of each sub-project. The Environmental Management Plan (EMP) covers all phases of the Project from preparation to construction and to commissioning and operation. They aim to ensure control of the environmental impacts through implementation of monitoring and mitigation activities. The full EMP of the Project will be incorporated into the construction and operation management plans of the Project as appropriate and will form part of the bidding documentation. 7.1 Organizations 7.1.1 Organization Framework and Responsibility

The Zhaotong Urban Environmental Project, as a component of the second phase of Yunnan Urban Environmental Project (YUEP), will be implemented strictly following the environmental management organizational framework established under YUEP. YNPMO will be responsible for the supervision of project planing, design and environmental protection, organization of training for environmental management staff in the province. Municipal PMO and EPB will be responsible for the execution of implementation program and technical standards, and daily supervision of environmental management. Municipal environemental monitoring station, delegated by the Owner, is in charge of the environmental monitoring of project area during construction and operation. The ennvironmental supervision engineer delegated by the Owner is in charge of the environmental monitoring. The Project Owner intends to assign specific environmental management staff to take charge of the environmental management in different phases; implement environmental laws, regulations and plans; review the implentation of environmental protection measures; promote advanced technologies and experience in environmental protection; organize trainings on environmental protection technologies for relevant sub-project staff for the capacity building. Because of the great differences in environment management between project construction and operation stages and that they could be short-term or long-term, the Contractor and Operator need to establish its specific management departments for these two stages. The management department for construction stage will be removed as this stage terminates and the department for operation period starts to function. The organization chart is shown in the figure below:

Page 59 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

National Level MEP WB

Yunnan Provincial Level Yunnan EPD Yunnan PMO

Zhaotong Municipality/Zhaoyang Zhaoyang District PMO District EPB

Zhaotong WS&WW Co. / Urban Investment Co.

Sub-prefecture/municipal EMS Sub-prefecture/municipal EMS Sub-prefecture/municipal Environmental Supervision Engineer

Operator or Project Owner Design Institute

Contractor Contractor EA Agency

Environmental Environmental Management & Management & Execution Environmental Management Supervision Execution Institution during Institution during Institution of Design and Construction Construction Construction

Figure 7-1 Environmental Management Organizational Framework

Parties involved, their main environmental responsibility and staffing requirement in EMP in difference phases are shown in table below.

Table 7-1 Environment Management Institutional Arrangement

Personnel Phase Major parties involved Environmental Responsibility requirement or other remarks Responsible for issues related to environmental protection management during project design, preparation

Ensure available fund for taking environmental protection 2 PO/IA and PMO Liaison and coordination with gov,t line agencies related with environmental management issues Incorporating environmental mitigation cost into designed total ， project cost Design and 1 preparation Design Institute, Specifying environmental mitigation measures into technical specification of bidding document. Providing environmental protection support to the project design; EA team Preparation of EA document 3 Development of EMP Local EPB Review and approval of EA reports

Page 60 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Personnel Phase Major parties involved Environmental Responsibility requirement or other remarks Evaluating EA outlines, evaluate EA reports, 1 Others… Social supervision Ensuring that all proposed environmental protection measures are under management, ensure fund available to take measures; Managing and supervising environmental protection works during construction PMO or PO/IA 2 Liaison and coordination with Gov. line agencies related to environmental management issues Monitoring the implementation of EMP and regularly report to local EPB, PMO, and WB Taking environmental mitigation measures specified in bidding document, contract, and EMP during construction Accepting guidance and supervisions from environmental Contractor management staff of PO/IA, environmental supervision engineer 2 and local EPB Accepting technical advices from environmental protection consultants Supervising the performance of contractor in taking environmental Engineering /env. mitigation measures specified in contract 1 Supervisor Construction Coordinating with PO/IA for better environmental management To be Commissioned by PO/IA, to conduct environmental monitoring determined in Environment monitoring activities as requested in EMP TOR for unit Commissioned by PO/IA to conduct necessary environmental environmental monitoring when abnormal conditions occurs monitoring Sample inspecting environmental mitigation measures taken by PO/IA and contractors Local Env. Protection Accepting report on EMP implementation by PO/IA and 1 Bureau contractors, and provide administrative management; Arranging emergency responsive measures if accident occurs during construction Commissioned by OP/IA to provide technical support on environmental protection based on EA report and design result Without Others (TA consultant) … Providing technical support to contractors on environmental limitation protection Providing EMP training prior to the construction。 Carry out environment education, technical training, technical PMO seminars, increase staff awareness on environmental protection, 1 disseminate the advanced techniques and experiences Responsible for a series of environmental protection assignment, make environmental protection fund available Managing and supervising environmental mitigation measures during operation. Owner /operator 2 Liaison and coordinating with gov’t. line agencies related to environmental management Coordinating environmental issues related to local residents Responding to environmental accidents To be determined in Environment Monitoring Commissioned by PO/IA, to conduct environmental monitoring Operation TOR for unit activities as requested in EMP period environmental monitoring Carrying out environmental protection acceptance Inspecting the operation performance of environmental protection Local EPB facilities Include into regulatory of pollution sources Inspecting the implementation of environmental monitoring program Inspection if additional environmental mitigation measures are Relevant agencies 1 necessary, if any points of environmental concerns are ignored Inspecting if environmental quality at points of environmental concerns compliance with relevant standard Without Others… Providing social supervision limitation

Page 61 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

7.1.2 Environmental Management Staffing of Sub-projects

Zhanyang PMO will appoint one person specially for environmental protection, responsible for the coordination and monitoring reporting of environmental protection during preparation and implementation periods. For the 3 sub-projects during project implementation, Project Owner will require Contractor and supervision company to set up specific environmental staff during construction period. Project Owner (WS & WW Co.) and River management authority (Zhaoyang District Water Resources Bureau) will set specific environmental staff. Table 7-2 Environmental Management Personnel Setup for Sub-projects Constructio Owner Contractor n Supervi Operator sion Environm Subt No. Project Name Environ Environme Environme ental Emergenc otal ment ntal Super ntal Supe Managem y Rescue Coordi vision Co rvision En ent Team nator ordinator gineer Technicia n 1 Water Supply 1 2 1 2 1 7 2 Wastewater 1 2 1 2 1 7 3 River Rehabilitation 1 1 1 2 1 6 Total 3 3 3 5 3 17 7.2 Environmental Mitigation and Monitoring 7.2.1 Mitigation measures

The project owners will take the ultimate responsibility for environmental performance and environmental management during construction. The PMO will have dedicated environmental, specialist on staff who will be responsible to manage the day to day environmental performance, of the contractors, maintain liaison with regulatory agencies and communicate with the affected, public including receiving public complaints. The environmental staffs from the provincial and ZYPMO are also responsible for ensuring the implementation of mitigation measures identified and designed by the EA and EMP. They will work closely with the design institute and contractors as may be necessary to modify and update the mitigation design and scale as needed by the actual conditions during project construction and implementation. The Contractors are fully responsible for implementing the mitigation measures in compliance with the Environmental Obligations detailed in their Contract and in the EMP. The Environmental Team of the Construction Supervision Environmental Engineer (CSEE) and YZM EMS will monitor construction sites and activities to ensure that best environmental practices are applied and to assess the performance of the mitigation measures. Details of mitigation measures during project design, construction and operation are proposed in EA and summarized in chapter 4 of this summary. 7.2.2 Monitoring and Report

Environmental monitoring programs will address different objectives: (i) during construction, to ensure that contractors fulfill their environmental control obligations (compliance monitoring) and that performance of mitigation measures satisfy environmental standards and objectives (ambient monitoring), and (ii) during operation stage, to ensure the facilities are operated in accordance with their technical specifications and in compliance with environmental standards. During construction, compliance monitoring programs will be carried out under the responsibility of the contractors, the CSEE and ZTM EMS. All parties will rely on qualified staff Page 62 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA with monitoring equipment and technical capability for monitoring of water, air, noise, and soil, with qualified laboratory facilities assuring the accuracy of the analytical results and their legal standing. When complaints are received from the public, environmental monitoring staff will immediately conduct additional measures to identify the source of non-conformity. Results from the environmental monitoring activities will be submitted by project owners and implementation agencies to Provincial PMO timely a semi-annual basis. Provincial PMO will report to the World Bank on a semi-annual basis. If any un-compliance activity happens, the local EPB should be timely informed and report to higher level EPB if necessary. Based on the proposed project implementation schedule, construction durations for water supply, wastewater and river sub-projects are 3 years, 2 years and 2 years respectively, with estimation monitoring costs of RMB 21,600 yuan, 18,880 yuan and 64,800 yuan respectivley. Monitoirng program for the three sub-projects are considered to be 3 years with estimated costs of RMB 194,400 yuan, 46,440 yuan and 30,600 yuan respectively. In addition, soil conservation monitoirng program with estimated cost of RMB 241,000 were proposed. 7.3 Training on Environmental Management

environmental capacity building is an integal technical supportive part of EMP. It’s necessary to provide training on EMP and other knowledge and know-how skills to staff in PO/IA, operators, authourites concerned, contractor, construction superviors, local PMO, local EBP. Specific training on different post should also be targeted. Training programs for the targeted paries for each of the subproject are also developed and summariced in table below:

Table 7-3 Environment Training Program and Budget Budget/ Name of Funding phase personnel No of person total RMB10000Yu sub-total source an Environment 1 2010 1x3 management staff Project Manager 2 2010 2x3 coordinator TA contract Before im Environment supervision Construction 1 plementati 1x3 engineer on All workers of C Before co Engineering Workers 3x3 Water ontractor nstruction contract Supply, wa Subtotal 7x3 stewater, River rehab Environment managem Before 1 2x3 ilitation ent staff operation subprojects Environmental risks res Before PO routing e 1 operation 1x3 Operation ponse Staff xpenditure Environmental staff Before 1 1x3 techniques training operation subtotal 4x3 Subtotal of cost 11x3

A total of 3.4327 million RBM budget of EMP implementation for the 3 sub-projects during the construction and during the operation phase is detailed as following table. Of the EMP budget, the environmental management expense during the construction for the sub-projects of water supply, wastewater and river rehabilitation are respectively RMB541,600yuan, RMB438,880yuan, and RMB603,800 yuan. The total amount will be a part of the project investment and specified in technical specification of the bidding document or be within the contract price of the contractor. The EM expenses during the operational phase will be in charge of project owner form the daily maintanence cost Page 63 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Table 7-4 Total Budget of the EMP Yearly budget Expense Budget for Name of (RMB10000yuan) during item 3 years of Total sub-project construction construction operation operation phase Operation of salary 8 8 24 24 project Clerical cost 5 5 15 15 management transportation 2 2 6 6 unit

Water Water quality monitoring 0.24 5.4 0.72 16.2 supply Air monitoring 0.08 0.72 Noise monitoring 0.24 1.08 0.72 3.24 Training 7 4 7 4 Subtotal 22.56 25.48 54.16 68.44 112.6 Operation of salary 8 8 16 24 project Clerical cost 5 5 10 15 management transportation 2 2 4 6 unit Water quality monitoring 0.72 2.16 wastewater Air monitoring 0.8 0.48 1.6 1.44 Noise monitoring 0.144 0.288 0.288 0.864 Sludge monitoring 0.06 0.18 Training 12 8 12 8 Subtotal 27.944 24.484 43.888 57.644 101.532 Operation of salary 8 8 16 24 project Clerical cost 5 5 10 15 management transportation 2 2 4 6 unit Water quality monitoring 0.6 0.9 1.2 2.7 River Air monitoring 1.92 3.84 rehabilitation Noise monitoring 0.72 1.44 Water & soil conservation 8.45 7.2 16.9 7.2 monitoring Sludge monitoring 0.12 0.36 Training 7 4 7 -- Subtotal 33.69 27.22 60.38 59.26 119.64 Total 84.194 77.248 158.428 185.344 343.272

8 CONCLUSION AND RECOMMENDATIONS OF ENVIRONMENTAL ASSESSMENT

8.1 Conclusion of environmental assessment

According to Decree No. 40 of the State Council of the People's Republic of China - Guidance Category for adjusting industrial structure (2008), municipal WS & WW network, WS source, WSP and WWTP project belong to the industries to be encouraged, in line with national industial policy. According to the Regulatory Planning of Zhaotong Municipality Urban Area (2007-2020), the project construction complies with the city’s master plann. The project construction will complete the infrastructure of the urban environment, which provide the foundation for the ecological barrier of upstream of Yangtse river in Zhaotong city. The project will promote the image of Zhatong city, accelerate the social and economic sustainable development. After the completion of the project the water pollutants will be reduced to minimum and the eco environment around and in Zhaotong city will be protected. After the completion of project, the seperated drainage system will be formed gradually in Zhaotong. The direct discharg of wastewater into rivers will be reduced, which will improve the river water quality. It will significantly reduce the polution to the local water body because of the extention of WWTP. It’s esimated that the reduction of following pollutants discharging into Tuwei river will be: COD1387t/a, BOD949t/a, SS1022t/a, TN73t/a, NH3-N109.5t/a, TP14.6t/a. River rehabilitation will intercept the pollution of the urban wastewater on urban river, effectively remove the contaminants and pollution source accumulated in the river. The project will effectively improve the water quality in Tuwei and Liji river and the eco landscape of the urban rivers. Page 64 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Regarding the Water supply and drainage project, the location selection for WSP and waste water treatment plant were reasonable, and the drainage system, arrangement of sewer pipelines, service scope, service population and location selection of the proposed Qingmen WSP, Taiping WSP and existing WWTP are in compliance of and some even more optimized to the Controlling Specific Planning of Urban Masterplan Revision of Zhaotong Main City (2007-2020). The wastewater sub-project is an important action to implement “the Circular of Yunnan Provincial Government on the Issuance of Integrated Working Program on Energy Saveing and Pollution Reduction and Its Tasks Assignment Program” (Doc No. Yunzhengfa [2007]113). It is one of the construction project included in “Plan for the Construction of Urban Wastewater Treatment and Recycling Facilities during 11th 5-Year” The project is also in line with the national industrial policies of the article 22 (high efficient and low energy consumption wastewater treatment & recycling technology development and facilities manufacture) of item 26 (integrated utilization of EP and resources conservation) of Category 1 (encouraged category) in the Guiding Catalog of Industrial Structure Adjustment issued by National Development and Reform Commission Order No.40. River rehabilitation sub-project, belonging to non-pollution ecological imporvement project, is in adhance to the local city musterplan. The pollution of river rehabilitation sub-projects comes from construction period. However the construction period is short. The impact could be brought under control if mitigation measures in EMP are carried out properly, and funds for carrying out EMP are ensured, and management is strengthened. Thus, the discharged pollutants during construction will not cause the change of local environmental function. The negative impact will be eliminated at the completion of project construction. After the project implementation, the water quality of Liji and Tuwei rivers will be improved obviously. The river silt dredging will be in favor to the recovery of the aquatic ecosystem. The project implementation can enhance the landscape of water body and greening, which provides a great urban living environment. The project will improve the flood control capability of Liji and Tuwei river in Zhaoyang district that will protect the life and property of residents living in Zhaoyang district. The value of land at both sides of the rivers will be increased. The project is with good social benefit. Mitigation measures on wastewater, Exhausted gas, noise and solid waste produced during construction have been proposed to control them effectively to the accptable level. The noise will not lead to exceedance of acoustic environmental quality standard around the environmental sensitive point. The solid waste will receive proper disposal with little impact on environment. Construction will cause the disturbance on the regional eco environment. A certaiin water and soil erosion will be caused during the construction of water transmission and distribution pipeline, river rehabilitation, WSP and WWTP. Solil erosion control program has been developed specificallyt for this project. After the implementation of measures proposed in this program, the water and soil erosion will be reduced. During operaqtion, with proper pollution control measures (including the mitigation measures and recommendation made in the EMP), the noise, offensive odors impact on the residents will be miminzed to the acceptable level. The screenings, grit and surplus sludge from WWTP will be hauld Ludian waste sanitary landfill site for disposal, all of which will not produce new hazards. Through public consultation, information disclosure, questionaire survey, workshop and analysis to sub-project construction, the following conclusiong are made: the first public participation and phase I questionaire survey results indicated that the target groups had obtained certain level of enviornmental protection awareness. The majority of people recognized that the project construction brings relatively good socio-economic benefits, which would be favorable to promote economic development in Zhaoyang District, and would like to support relevant government authorities to settle the possible enviornmental pollution during construction. Representatives partcipating in the second time of public participation workshop Page 65 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA consultation expressed support to project implementation, and required to adopt necessary enviornmental protection measures to ensure that no adverse impact to surrounding environment. Villagers in genenral focused on land compensation, and PO should try to communicate with villagers as soon as possible and guarantee the affected farmers benefit. Upon receiving complains on enviornmental issues and relative requirements to project constructions from public, PO should make good arrangement of enviornmental protection, adopt effective pollution prevention measures, make sure all pollutants discharge compliance with standards, and minimize adverse impact to the living of local residents during project construction and operation phases. Through the risk anticipated, if there’s a chlorine leakage accident in Taiping and Qingmen WSPs, the influence area is within 200m. The main victims of sodium chlorate explosion accident will be the staff working in the plant and the ambient air environemnt. With the implementation of risk prevention measures and emergency preparadness plan, the risk will be minimized. Duble-loop power supply in WWTP is designed to avoid the discharging of untreated wastewater into Tuwei river and downstream in case of power cut-off. In general, the positive benefits is standout after the project completion. The project construction is in line with coordinated development of the social, economic and environmental protection and the principle of the EIA. Mitigation measures proposed by EMP during EA of this project under the principles of “three simultaneous environmental system” (e.g. the design, construction, acceptance of environmental protection faclities are down simultaneously wiht the desing, construction, and acceptance of the project”) the negetive environmental impact will be minimized. The positive benefit is far greater than the negative environmental benefit. the project is feasible in terms of environment. 8.2 Recommendations

1. in order to ensure the water quality in the area, the management and control of domesitc and agricultural pollution sources of the runoff in Yudong reservoir should be strenthened; to enhence the protection of vegetation and ecological construction around the Yudong reservoir. Felling is prohibited. The natural vegetation, sapling and bank protection belt should be protection for reducing the water and soil erosion; The whole Dalongdong Spring water body should be defined as a sanitation protection zone followed by strict prevention measures. 2. on receiving the approval for the EA report, under the coordinate ofhe Zhaoyang PMO, the 2 project owners should fulfil the responsibility of implementation of EMP, task, duties and expenses for the project, enhence the monitoring and reporting, complete the three simultaneous rules of the EP. 3. after the construction of WSP, it’s required to enhence the safety mangement, develop strict guard system to prevent the persons without fixed duties enter in so as to ensure the safety water supply. Once the water pollution incident occurs during operation, the WSP should be promptly informed in order to take proper measures. To strengthen the safety work for storing, transfering and transporting the hazardous materials, e.g. chlorine. 4. operational record and monitoring report should be prepared and analysed prompty on a regular basis by the project owner. The project owner should establish sound technical fiiling system to accumulate technical experience for the operation and continuously improve operational standard and monitoring capability. 5. during the project operation, a strict safeguard system should be developed. It’s required to establish clear and mandatory operational supervision & management system in order to protect the basic environment water usage downstream. 6. It is recommended to relevant government agencies to close self-water supply at north new urban area, especially those who use ground water.

Page 66 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

7. it’s suggested to strengthen the dam safety management of upstream and develop the emergency preparadness plan (EPP). It’s commented to conduct technical training to the dam management staff and to prevent the failure of the river rehabilidation due to the dam-break 8. Holistically scheduling the construction of water distruction network, interceptors along riverbanks, and river rehabilitation activities to avoid construction overlaps. Strict construction management, including construction programing, contractors mobillization, coordination, inspection should be practised through the entire construction process to minimize the impact of construction on peripheral environment. In summary, the implementation of ZTUEP would be environmentally feasible provided that all the measures proposed in the alternative analysis, mitigation measures, EMP, RAP, public consultations are well taken.

Page 67 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Page 68 ZHAOTONG CENTRAL URBAN ENVIRONMENT PROJECT （YUEP PHASE II—ZHAOTONG COMPONENT） EXECUTIVE SUMMARY OF EA

Page 69