Heilongjiang Energy Efficient District Heating Project

Environmental Monitoring Report

Project Number: 44011-013 January 2019

PRC: Heilongjiang Energy Efficient District Heating Project

The 8th Semi-annual Report (July to December 2018)

Prepared by Heilongjiang Project Management Office and HJI Group Corporation

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

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

Environmental Monitoring Report

Loan No. 2898-PRC 8th Semiannual Report (July–December 2018) January 2019

PRC: Heilongjiang Efficient District Heating Project

Prepared by Heilongjiang Project Management Office and HJI Group Corporation for the Asian Development Bank.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

CURRENCY EQUIVALENTS (as of December 2018)

Currency Unit – Chinese Yuan (CNY) US Dollar ($)

Currency Unit – CNY CNY1.00 = $0.1457 $1.00 = CNY6.8632

ABBREVIATIONS ADB Asian Development Bank AP Affected Person CFB Circulating fluidized bed CHP Combined heat and power BOD5 Five days Biochemical Oxygen Demand CEIA Consolidated Environmental Impact Assessment CO2 Carbon Dioxide CNY Chinese Yuan CSC Construction Supervision Company EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EMU Environmental Management Unit EPB Environmental Protection Bureau FSR Feasibility Study Report GHG Greenhouse gas GRM Grievance Redress Mechanism HES Heat exchange station HPG Heilongjiang Provincial Government HSP Heat source plant LIEC Loan Implementation Environmental Consultant MEP Ministry of Environmental Protection NDRC National Development and Reform Committee NO2 Nitrogen Dioxide NOx Nitrogen Oxides OHS Occupational Health and Safety PAM Project Administration Manual PIA Project Implementation Agency PM10 Particulate Matter smaller than 10 micrometers PMO Project Management Office PRC People’s Republic of China PPTA Project Preparatory Technical Assistance SO2 Sulfur Dioxide SPS Safeguard Policy Statement, ADB TSP Total Suspended Particulates

ii Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

WEIGHTS AND MEASURES cm centimeter A-weighted sound pressure level in dB(A) decibels kg kilogram km kilometer kWh kilowatt hours m meter m2 square meter m³ cubic meters mg/l milligrams per liter mg/m3 milligrams per cubic meter 0C degrees Celsius

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

iii Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

TABLE OF CONTENTS

I. INTRODUCTION ...... 1

A. REPORT PURPOSE AND RATIONALE ...... 1 B. PROJECT OBJECTIVE AND COMPONENTS ...... 1 C. PROJECT IMPLEMENTATION PROGRESS ...... 3

II. INSTITUTIONAL ARRANGEMENTS FOR EMP IMPLEMENTATION ...... 9

III. ENVIRONMENTAL MITIGATIONS MEASURES IMPLEMENTED ...... 11

IV. SUMMARY OF ENVIRONMENTAL MONITORING ...... 13

A. MONITORING PLAN AND RESPONSIBILITIES ...... 13 B. MONITORING RESULTS AND ANALYSES ...... 13

V. CLOSURE OF SMALL BOILERS ...... 21

VI. PUBLIC CONSULTATION, GRIEVANCE REDRESS MECHANISM ...... 21

VII. INSTITUTIONAL STRENGTHENING AND TRAINING ...... 23

VIII. COMPLIANCE WITH ENVIRONMENT RELATED PROJECT COVENANTS ...... 25

IX. CONCLUSIONS ...... 27

APPENDIX 1: TONGJIANG MONITORING DATA FROM THE ONLINE MONITORING SYSTEM OF THE HSP ...... 28 APPENDIX 2: HARBIN MONITORING DATA FROM THE ONLINE MONITORING SYSTEM OF THE HSP ...... 31 APPENDIX 3: POTENTIAL IMPACTS AND MITIGATION MEASURES DURING CONSTRUCTION AND OPERATION ...... 34 APPENDIX 4: PHOTOS FROM SUBPROJECTS ...... 42

iv Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

I. INTRODUCTION

A. Report Purpose and Rationale

1. This Environmental Monitoring Report (EMR) is the eighth report since the project implementation and was prepared by the Consultants from HJI Group Corporation (USA), With the assistance from the project management offices (the PMO) of Heilongjiang Province for the Heilongjiang Energy Efficient District Heating Project (the project). This EMR covers the period of July to December 2018 and it is based on (i) the environmental monitoring reports (operation phase) of Jiamusi, Yichun Tangwanghe, Qitaihe, and Harbin Taiping subproject provided by Harbin Yuchi Environmental Testing Co., LTD., (the certificated environmental monitoring entity for subprojects) and automatic online monitoring data of Tongjiang and Harbin Taiping subprojects (operation phase); (ii) The contractors and construction supervision companies’ (CSCs) internal environmental inspection reports, and (iii) the PMO and consultants’ construction site inspections.

2. During the reporting period, only Hailing subproject had construction activities, and the other five subprojects were at operation. The external environmental monitoring was conducted during the reporting period for the subprojects of Jiamusi, Qitaihe, Tangwanghe (Yichun); and the online monitoring systems of Tongjiang and Harbin Taiping HSPs were operating normally (Section IV).

3. The purpose of this EMR is to document the environmental management activities and compliance with the approved environmental management plan (EMP) of this project as baseline during the PPTA in 2012. This report is prepared in accordance with the environmental monitoring program as part of the EMP. It presents project implementation progress, institutional setup for EMP implementation, supervision and monitoring; environmental monitoring results; project readiness assessment; the grievance redress mechanism (GRM); as well as the assessment of effectiveness of environmental impact mitigation measures implemented.

B. Project Objective and Components

4. In 2012 the People’s Republic of China (PRC) received a $150 million loan from the Asian Development Bank (ADB) to assist the implementation of the Project. The development objective of the Project is to support nine subprojects in nine cities and towns in Heilongjiang Province to improve their district heating infrastructure and reduce air pollutions from small inefficient heat-only boilers. However, four subprojects quitted from ADB loan and the Hailin subproject was newly added. The summary of the project information is shown in Table 1-1.

Table 1.1: Project Key Data

Loan Number: Loan 2898-PRC Project Title: Heilongjiang Energy Efficient District Heating Project Borrower: The People’s Republic of China Executing Agency: Heilongjiang Provincial Government through the Project Management Office Date of Board Approval: 4 September 2012 1

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Loan Agreement Signing: 26 February 2013 Project Agreement Signing: 26 February 2013 Date of Loan Effectiveness: 28 May 2013 Date of Completion: 30 December 2018 Loan Closing Date: Initial: 30 June 2018 Delayed to: 30 June 2019 Last ADB Review Mission: 12-17 August 2018 Project Cost and Financing The total project cost is estimated at $352.8 million, of Plan: which $150 million will be covered by ADB loan, and the remaining is covered by the counterpart funding. Four subprojects withdrew from ADB loan and Hailin subproject was approved for inclusion in the ADB loaned project in 2017. In the first half of 2018, the Provincial Project Management Office sent a letter to the State Ministry of Finance through the Provincial Department of Finance to extend the project completion and closing date and return the ADB loan $17 million. The Ministry of Finance and ADB approved in June 2018. The project was extended for one year and will use ADB loan in the amount of $133 million.

5. By the end of December 2018, four of six subprojects were completed construction including the subprojects of Yichun Tangwanghe, Jiamusi, Tongjiang, and Qitaihe. Harbin Taiping heat supply plant has been finished construction while the construction of pipelines and heat exchange station was not completed. The newly added Hailin subproject was approved by ADB in the second haft of 2017. The construction of Hailin subproject started in April 2018 and ended in November 2018. It was not completed and put into operation as scheduled. Four subprojects (Jidong, Jiagedaqi, Yichun Xinqing and Raohe) have been implemented using domestic funds and was approved to be cancelled from ADB financing. The expected project impact is improved urban environment, quality of life of local residents, and higher economic growth in the project cities. The Project brings many benefits including environmental protection and improvement, climate change mitigation and local social and economic development. The components of each subproject are summarized in Table 1-2 (The cancelled subprojects not included).

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Table 1-2: Summary of Subprojects New Heating Number of Heating Small Heating SCADA Area No. Subproject Heat Pipeline Boiler Source System (million Exchanger (km) Closure 2 (MW) m ) Harbin Taiping HSP & 2 x 116 1 40 Yes 22 18 4.0 DH MW CFB 2 Jiamusi West DH _ 111 Yes 68 218 14.8 3 Qitaihe DH _ 33 Yes 30 15 7.6 Tongjiang City HSP& 3 x 58 4 24 Yes 17 36 2.7 DH MW CFB Yichun City - 5 _ 22 Yes 27 16 1.5 Tangwanghe DH Hailin HSP (newly 2 x 25 MW 6 Yes 56 4.74 added in 2017) CFB Total 456 230 164 359 35.34 CFB = circulated fluidized-bed, DH = district heating, HSP = heating source plant, km = kilometer, m2 = square meter, MW = megawatt, No. = number, SCADA = supervisory control and data acquisition. Source: PMO and subprojects.

C. Project Implementation Progress

6. Harbin Taiping District Heating Subproject is to construct 2×116 MW CFB hot water boilers, install a primary heating network with a total length of 22 km, and install 40 new heat exchange stations. The maximum design heating capacity is 323 MW and the newly added heat-supply area will be 4 million m2. Moreover, 18 scattered and low efficiency small coal- fired boilers will be closed or demolished upon construction of the subproject.

7. There are four ADB loaned contract packages (three equipment packages and one civil work), including “supply and installation of boilers and auxiliaries” (HTPM&E-1), “supply and installation of boiler ancillary equipment” (HTPM&E-2), “supply and installation of heat pipelines, heat exchange stations (HESs), and SCADA” (HTPM&E-3), and “civil works of heat source” (HEBTJ01). For the HTPM&E-1, HTPM&E-2 and HEBTJ01, the construction works have been completed. For the package of HTPM&E-3, the contract was awarded on 30 September 2016. As of the end of December 2018 the HTPM&E-3 contract package has completed about 50% which exceeded the time limit. It is expected that this contract package will have a large amount of equipment materials that cannot be installed before the project loan closure. Except from HTPM&E-3 package, all other contract packages have been completed in the first half of 2018. Besides, 23 scattered and low efficiency small coal-fired boilers have been closed or demolished.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 1-1: Harbin Taiping New HSP

8. Jiamusi West District Heating Subproject is to install 67,864 m of primary heating network; construct 111 heat exchange stations, including 28 new and 83 rehabilitation ones on the closed small boiler houses; and install a SCADA control system. Upon completion of the subproject, the total district heating area will reach 14.8 million m2, including existing area of 7.3 million m2 and newly added area of 7.5 million m2. It was planned to close or demolish 218 scattered and low efficiency coal-fired small boilers. The heat source comes from the existing combined heat and power (CHP) plant.

9. There are two procurement packages under ADB funding, including “supply of heat pipelines” (JMSHW01) and “supply and installation of equipment in HESs and SCADA” (JMSHW02). For the Package JMSHW01 the pipeline supply and the disbursement have been completed. For the Package JMSHW02, the procurement was completed in November 2015. The civil works started at the end of 2015 and continued in 2017. This subproject has been completed in 2017. All 218 scattered and low efficiency coal-fired small boilers have been closed or demolished.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 1-2: Jiamusi West District Heating Subproject

10. For Qitaihe District Heating Expansion Subproject, new heating network with heat supply area of 5.81 million m2 was added, including a total of 17,907 m of main pipeline and 12,501 m of branch pipeline; a total of 33 new HESs and 2 boosting pump stations are constructed; 1.8 million m2 of low temperature direct heating network are retrofitted to high temperature indirect heating network, including 3,732 m of main pipeline and 3,904 m of branch pipeline of the primary network, and 17,575 m of secondary network; and 10 existing heat distribution stations will be retrofitted from direct heating to indirect heating HESs. The total heat supply area will be 7.61 million m2, including the newly added 1.8 million m2 after the retrofitting. It is planned to close or demolish 15 scattered and low efficiency coal-fired small boilers and all of them have been closed or demolished.

11. There are three ADB loaned procurement packages, including “supply of heat pipeline 1” (QTHHW-01), “supply of heat pipeline 2” (QTHHW-02), and “pipeline civil works and installation” (QTHTJ01). The construction activities for contract packages QTHHW-01 and QTHHW-02 have been completed. For the QTHTJ01, the contract was awarded in August 2015 and the pipeline supply and installation has been completed.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 1-3: Qitaihe District Heating Subproject

12. Tongjiang Heat Source Construction Subproject. The scope of this subproject includes the construction of 3×58MW coal-fired CFB hot water boilers and ancillary facilities, installation of 16,550 m heat pipeline, and installation of 24 HESs (with heat supply capacities in the range of 50,000 m2 to 210,000 m2). The current heat supply area by the subproject is 1,210,900 m2, and newly added area of 1,466,100 m2. After completion of the subproject, the total heat supply area will reach 2,677,000 m2 and 36 scattered and low efficiency coal-fired small boilers have been demolished.

13. There are four procurement packages (three equipment procurement packages and one civil work package) under ADB loan, including “supply and installation of boilers and auxiliaries” (TJHW-01), “supply of HESs and SCADA” (TJHW-02), “supply of heat pipeline” (TJHW-03), and “civil works of boiler plant” (TJTJ01). The contract TJHW-01 has been completed. The bid for contract TJHW-02 is disqualified since the bidder didn’t respond to ADB requirements. The subproject decided to use its own fund for TJHW-02 package. The contract TJHW-03 was awarded in March of 2016. This subproject has been completed and put into operation in 2016.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 1-4: Tongjiang HSP and Pipelines

14. Yichun Tangwanghe District Heating Network Expansion Subproject. This subproject is to construct 27.4 km of heating network, install 12 new HESs and rehabilitate 10 ones. The existing heating area in Tangwanghe is 360,000 m2, in which Tangwanghe Baohuabanchang CHP serves a district heating area of 70,000 m2, and small boilers cover a heating area of 290,000 m2. The total district heating area reaches 1.52 million m2 upon completion of the subproject. 16 scattered, inefficiency small coal-fired boilers were closed or demolished.

15. There are two procurement packages under ADB funding, including “supply and installation of equipment in HESs and SCADA” (YCTWHDH-01) and “supply of heat pipelines” (YCTWHDH-02). Both contract packages have been completed. The subproject was completed construction and put into operation in 2017.

16. Hailin CHP Plant Subproject. Hailin City Government applied to add Hailin Central Heating Subproject to the project to utilize the ADB loan savings due to drop out of four subprojects. The Hailin subproject is to construct a new combined heat and power (CHP) plant with three 130 t/h circulated fluidized-bed (CFB) hot water boilers with two units of B25 backpressure steam turbine-generators. The maximum design heating capacity is 196 MW and the heat-supply area will be 4.74 million m2. Moreover, 56 scattered and low efficiency coal-fired small boilers and about 10,000 home heating stoves will be removed upon construction of the subproject. The PIA for the subproject is Hailang Thermal Power Co. Ltd., a private company. In October 2017, ADB approved the project's medium-term adjustment 7

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8) program and newly added the Hailin subproject to construct a new combined heat and power (CHP) plant to provide efficient district heating service for Hailin. There are five contract packages under the subproject (three equipment packages and two civil work package) that will use ADB loan, including “civil work of heat source plant” (package HLTJ-01), “civil work of heat source plant” (package HLTJ-02), “supply of steam turbine generators” (package HLHW-01), and “supply and installation of boiler and water treatment equipment” (package HLHW-02), “supply and installation of boiler ancillary equipment” (package HLHW-03). This subproject has been under construction since April 2018 and stopped in November 2018 due to the low temperature in winter. It is suggested that provincial PMO should formulate plans for accelerating progress of each contract package as soon as possible, otherwise this subproject cannot be completed and put into operation in 2019.

Figure 1-5: Hailin CHP Plant under Construction

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

II. INSTITUTIONAL ARRANGEMENTS FOR EMP IMPLEMENTATION

17. Executive Agency. Heilongjiang Provincial Government (HPG) is the executing agency for the project. A project leading group 1 was established and is responsible for directing the project and providing policy guidance during project implementation. The PMO has been set up under the project leading group and is responsible for coordinating the implementation of project activities on behalf of the HPG.

18. Project Management Office (PMO) is responsible for implementing EMP. In the design stage, the PMO and the project implementation agencies (PIAs) request design institutes to incorporate mitigation measures specified in the EMP in the detailed designs. To ensure the contractors comply with the EMP, the PMO and the PIAs assisted by the environmental consultants prepare and provide the following specification clauses to incorporate in the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their tendering documents; (ii) environmental clauses for contractual terms and conditions; and (iii) environmental monitoring requirements in domestic EIAs, the IEE and the EMP. The PMO supported by environment consultants, prepares semi-annual environment progress reports and submit them to ADB.

19. Project Implementing Agencies (PIAs) formed the environmental management units (EMUs), which consist of a leader and a staff to coordinate environmental issues. The EMUs are in charge of (i) implementation of EMP at each subproject level; (ii) supervising the implementation of mitigation measures during construction; (iii) supervising contractors and construction supervision companies’ (CSCs) internal monitoring and coordinating the compliance monitoring; (iv) implementation of training programs for contractors; (v) incorporating environmental management, monitoring, and mitigation measures into the construction and operation management plans; (vi) reporting on the EMP performance to the PMO semiannually; and (vii) arranging reviews of environmental monitoring and responding to any unanticipated impacts. The EMUs are technically supported by environment consultant and supervised by the provincial EPB and the municipal EPBs.

20. Local Environment Protection Bureaus (EPBs) are responsible for (i) undertaking the ambient monitoring program presented in the Environmental Monitoring Plan (EMP); (ii) reviewing the project semiannual environmental monitoring reports and, if appropriate, directing the PMO and PIAs to address any subproject deficiencies; (iii) coordinating with the PIAs on waste management and decommissioning of existing small boilers; and (iv) participating in the GRM as required. The EPBs are also invited to participate in subproject environmental compliance monitoring inspections.

21. Loan implementation environment consultant (LIEC). A LIEC was hired under the loan implementation consultancy services. The LIEC advises the PMO, PIAs, contractors and the CSCs on all aspects of environmental management and monitoring for the project. The LIEC (i) assists the PMO to update the EMP and environmental monitoring program as necessary; (ii) verifies the implementation of the environmental protection measures specified in the EMP; (iii) reviews internal and compliance monitoring reports and the semi-

1 A project leading group, consisting of the HPDRC, HPFB, Heilongjiang Construction Bureau (HCB), and Heilongjiang EPB provides policy direction and operational guidance.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8) annual environment performance report; (iv) prepares the semi-annual environmental monitoring verification report; (v) provides training to the PMO, the PIAs, contractors and CSCs on environmental management implementation and monitoring; (vi) identifies any environment-related implementation issues and suggest necessary corrective actions, and reflect these in the environment management plan; and (vii) undertakes site visits to verify EMP implementations.

22. Contractors are (i) responsible for implementing relevant mitigation measures and internal monitoring during construction specified in EMP, and (ii) under the supervision of the local EPBs and CSCs.

23. Construction supervision companies (CSCs). CSCs are selected by the PIAs according to PRC procedures. The CSCs are responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC must have at least one environmental staff on each construction site to: (i) supervise contractor’s EMP implementation performance; (ii) conduct internal environmental inspection and monitoring; (iii) complete out monthly environmental performance forms to be submitted to the PMO.

24. Local environment monitoring station or certified environment organization is responsible for monitoring environmental conditions around the facilities and construction sites according the ADB approved environment monitoring program and check compliance with the PRC’s environmental standards and regulations during construction and operation of each subproject. The Harbin Yuchi Environmental Testing Co (HYETC) was contracted by the consultants and the PMO for the external environmental monitoring during both construction and operation.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

III. ENVIRONMENTAL MITIGATIONS MEASURES IMPLEMENTED

25. The potential environmental impacts and mitigation measures and the environmental monitoring plan during construction and operation phases defined in the EMP are shown in the Appendix 1. The main mitigation measures during the construction are summarized in the following paragraphs.

26. Dust: Spray water on construction sites and material handling routes where fugitive dust is being generated; pay particular attention to dust suppression near sensitive receptors such as schools, hospitals, or residential areas; cover materials during truck transportation, in particular, the fine material, to avoid spillage or fugitive dust generation; pay particular attention to dust suppression near sensitive receptors.

27. Noise: Ensure that noise levels from equipment and machinery conform to the national standard, and properly maintain machinery to minimize noise; apply noise reduction devices or methods where piling equipment is operating within 500 m of sensitive sites such as schools, hospitals, and residential areas; reduce noise at night, restrict the operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban roads between 8 pm and 7 am the next day based on international best/common construction practice; incorporate noise considerations in public notification and public consultation; disseminate procedure of handling complaints through the Grievance Redress Mechanism (GRM).

28. Solid Waste: Establish temporary storage for solid wastes away from water bodies or other environmental sensitive areas, and regularly haul the waste to an approved landfill or designated dumping site; provide appropriate waste storage containers and reach agreement with local villages or residential communities for disposal of worker’s camp domestic waste through appropriate local facilities; make these arrangements prior to commencing construction; hire a contractor with proper credentials to remove all wastes from sites to approved waste disposal sites, according to appropriate domestic standards; hold contractors responsible for proper removal and disposal of any significant residual materials, wastes, and contaminated soils that remain on the ground after construction. Any planned paving or vegetating of the area shall be done as soon as the materials are removed to protect and stabilize the soil; prohibit waste incineration at construction sites.

29. Solid waste generated by demolishing small boilers houses: in the case of asbestos impact, identify, properly label and pack asbestos as well as demolishing debris contaminated with asbestos during demolishing small boilers, and transport them in specific closed vehicles to the secured landfill in Harbin in accordance with the World Bank’s Environment, Health and Safety (EHS) Guideline; in the case of non-hazardous solid waste, maximize reuse/recycling of deconstruction wastes generated during demolition (e.g. iron, bricks, windows, doors, steel bars, sell them to local waste recycling stations), dispose other demolition debris in municipal solid waste landfills or special construction and demolition debris landfills subject to approval by the municipal EPBs.

30. Soil erosion: Minimize active open excavation areas during pipeline trenching activities and some foundation works, and use appropriate compaction techniques for those constructions; construct intercepting ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage; limit construction and material handling during periods of rains and high winds; plant grass in the heating plants to protect ground, especially on sandy soil areas. 11

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

31. Soil contamination: Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas, and use the best management practice to avoid soil contamination; remove all construction wastes from the site to approved spoil disposal sites.

32. Wastewater: All areas where construction equipment is being washed will be equipped with water collection basins and sediment traps; septic treatment and disposal systems will be installed at construction camps along with proper maintenance protocols; for areas with oily wastewater discharges, oil-water separators will be installed before the sedimentation basin.

33. Flora and Fauna: Preserve existing vegetation where no construction activity is planned, or temporarily preserve vegetation where activity is planned for a later date; properly backfill, compact, and re-vegetate pipeline trenches after heating pipeline installation; protect existing trees and grassland during constructions; when a tree has to be removed or an area of grassland disturbed, replant trees and re-vegetate the area after construction; remove trees or shrubs only as a last resort if they impinge directly on permanent structures; in compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

IV. SUMMARY OF ENVIRONMENTAL MONITORING

A. Monitoring plan and responsibilities

34. The project monitoring program focuses on the environment within the project area of influence. Contractors and CSCs conduct daily internal environmental inspections and monitoring. Inspection and monitoring results are documented in monthly internal environment inspection reports, submitted to the PIAs and the PMO.

35. Harbin Yuchi Environmental Testing Co (HYETC), a certified environmental monitoring entity was contracted to conduct the compliance environment monitoring. The environment monitoring program is shown in Table 4-1, which is derived from the original monitoring plan defined in the EMP of the IEE.

Table 4-1: Environmental Compliance Monitoring Program

Subject Parameter Location Frequency Construction Phase Air TSP, NOx, At all construction sites and one day per time, two times per PM10 sensitive receivers nearby (at year least five point) Noise LAeq At all construction sites and Twice per day (once in day time sensitive receivers nearby (at and once at night time) for one least five point) day, four times per year Operation Phase Air TSP Boundaries of HSP One day per time, two times per year. Noise HSP LAeq Boundaries of HSP One day per time, two times per year. HSE LAeq Boundaries of HSE One day per time, one time per year. Source: Adapted from project EMP, monitoring plan.

36. HYETC conducted the environmental monitoring for the operation subprojects (Harbin, Qitaihe, Jiamusi and Tongjiang) according to above monitoring program.

B. Monitoring results and analyses

(1) Jiamusi Subproject

37. The HYETC conducted the noise monitor for Jiamusi subproject on December 28, 2018. The monitoring sites and pictures are shown in Figure 4-1 and Figure 4-2. The monitoring results are shown in Table 4-2.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 4-1: Noise Monitoring Sites of Jiamusi Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Figure 4-2: Noise Monitoring Pictures of Jiamusi Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Table 4-2: Noise Monitoring Results of Jiamusi Subproject (Unit: dB(A)) Monitoring GB12348- GB3096-2008 Sampling Monitoring Compliance No. Results 2008 Class II Class 4a Sites Sites Status Day Night Day Night Day Night South to site 1 51 50 In compliance boundary 1# West to site 2 47 48 In compliance boundary 2# Luoma North to site 3 Station 50 49 In compliance boundary 3# 60 50 70 55 Slightly East to site Exceed the 4 47 54 boundary 4# standard limit at night West to site 1 48 48 In compliance Linjianghu boundary 1# ayuan North to site 2 Station 52 48 In compliance boundary 2#

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

East to site 3 50 48 In compliance boundary 3# Slightly South to site Exceed the 4 49 52 boundary 4# standard limit at night Source: Harbin Yuchi Environmental Testing Co., LTD.

38. As shown in the monitoring results: i) the noise level at 4# point of Luoma Station and 4# point of Linjianhuayuan Station at night slightly exceed the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) - Class II; and ii) the noise levels of other six points are in compliance with the Class II Standard of GB12348-2008 and Class 4a Standard of GB3096-2008.

(2) Qitaihe Subproject

39. The HYETC conducted the noise monitor for Qitaihe subproject on 29 December 2018. The monitoring sites and pictures are shown in Figure 4-3 and Figure 4-4. The monitoring results are shown in Table 4-3.

Figure 4-3: Noise Monitoring Sites of Qitaihe Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Figure 4-4: Noise Monitoring Pictures of Qitaihe Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Table 4-3: Noise Monitoring Results of Qitaihe Subproject (Unit: dB(A)) Monitoring GB12348- GB3096-2008 Sampling Monitoring Compliance No. Results 2008 Class II Class 4a Sites Sites Status Day Night Day Night Day Night Slightly Exceed East to site the standard limit 1 boundary 1# 54 53 at night Slightly Exceed North to site the standard limit 2 boundary 2# 52 51 Jinshuiwan at night Station South to site In compliance 3 boundary 3# 49 50 Slightly Exceed West to site the standard limit 4 boundary 4# 60 58 at night 60 50 70 55 Slightly Exceed East to site the standard limit 1 boundary 1# 57 57 at night North to site In compliance 2 boundary 2# 49 47 Binli Station Slightly Exceed West to site the standard limit 3 boundary 3# 57 58 at night Slightly Exceed South to site the standard limit 4 boundary 4# 48 45 at night Source: Harbin Yuchi Environmental Testing Co., LTD.

40. As shown in the monitoring results that i) the noise at all monitoring points in both daytime and nighttime meet the Class 4a Ambient Environmental Quality Standard for Noise of GB3096-2008; ii) the noise levels at 8 monitoring points in the daytime meet the Class II Standard of (GB12348-2008); iii) for the nighttime, noise level at 3# of Jinshuiwan Station and 2# and 4# of Binli Station were in compliance with the Class II Standard of (GB12348- 2008), while the noise levels at the other sites (1#, 2# and 4# of Jinshuiwan Station, and 1# and 3# of Binli Station) slightly exceed the standard.

(3) Yichun Tangwanghe Subproject

41. The HYETC conducted the noise monitor for Yichun Tangwanghe subproject on December 27th 2018. The monitoring sites and pictures are shown in Figure 4-5 and Figure 4-6. The monitoring results are shown in Table 4-4.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 4-5: Noise Monitoring Sites of Tangwanghe Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Figure 4-6: Noise Monitoring Pictures of Qitaihe Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Table 4-4: Noise Monitoring Results of Tangwanghe Subproject (Unit: dB(A)) Monitoring GB12348- GB3096-2008 Sampling Monitoring Compliance No. Results 2008 Class II Class 4a Sites Sites Status Day Night Day Night Day Night

East to site In compliance 1 boundary 1# 49 45

South to site 2 No.2 46 43 In compliance Middle boundary 2# School West to site In compliance 3 Station boundary 3# 48 43

North to site In compliance 4 boundary 4# 48 44 60 50 70 55

North to site In compliance 1 boundary 1# 56 45

Hotel East to site 2 48 47 In compliance Station boundary 2# South to site In compliance 3 boundary 3# 49 45

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

West to site In compliance 4 boundary 4# 52 42 Source: Harbin Yuchi Environmental Testing Co., LTD.

42. The noise monitoring results show that the noise level at all monitoring points of Tangwanghe subproject at both nighttime and daytime are in compliance with both the Class II Standard of Emission Standard for Industrial Enterprises Noise at Boundary (GB12348- 2008), and the Class 4a Standard of Ambient Environmental Quality Standard for Noise (GB3096-2008).

(4) Tongjiang Subproject

43. The monitoring results for the boiler emission were obtained from the online monitoring system of the HSP. The level of PM, SO2, and NOx of the emission were monitored per hour in one day in October, November, and December of 2018. The maximum level of the three pollutants are shown in Table 4-5, while the full monitoring data attached in Appendix I.

3 Table 4-5: Maximum level of PM, SO2, and NOx of Tongjiang Subproject (Unit: mg/m ) Date PM SO2 NOx Compliance Status 2018.10.18 24.07 366.43 86.18 Standards: In compliance GB13271-2014 2018.10.28 24.04 298.35 107.96 In compliance (Table 1): 2018.11.08 31.38 358.69 58.53 In compliance PM= 80 2018.11.17 43.12 371.09 184.29 In compliance SO =400 2018.11.28 39.00 323.84 124.31 2 In compliance NOx =400 2018.12.09 17.91 378.18 193.29 In compliance Source: Harbin Yuchi Environmental Testing Co., LTD.

44. The results above show that the pollutants of SO2, NOx and flue dust (PM) in the maximum concentration (October to December 2018) all meet the national Standard of Pollutants Emission from Boilers of GB13271-2014.

(5) Harbin Taiping Subproject

45. Noise: The HYETC conducted the noise monitor for Harbin Taiping subproject on December 29th 2018. The monitoring sites and pictures are shown in Figure 4-7 and Figure 4-8. The monitoring results are shown in Table 4-6.

Figure 4-7: Noise Monitoring Sites of Harbin Taiping Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD. 18

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Figure 4-8: Noise Monitoring Pictures of Harbin Taiping Subproject

Source: Harbin Yuchi Environmental Testing Co., LTD.

Table 4-6: Noise Monitoring Results of Harbin Taiping Subproject (Unit: dB(A)) Monitoring GB12348- GB3096-2008 Sampling Monitoring Compliance No. Results 2008 Class II Class 4a Sites Sites Status Day Night Day Night Day Night

North to site In compliance 1 boundary 1# 49 43

North to site 2 No.51 50 43 In compliance Heping boundary 2# Shiye East to site In compliance 3 Station boundary 3# 47 43

East to site In compliance 4 boundary 4# 46 42 60 50 70 55 South to site In compliance 1 boundary 1# 47 44

East to site In compliance 2 No.33 boundary 2# 51 43 Dianshilou East to site Station In compliance 3 boundary 3# 57 44

North to site In compliance 4 boundary 4# 49 44 Source: Harbin Yuchi Environmental Testing Co., LTD.

46. The noise monitoring result shows that the noise level of all monitoring points of Harbin Taiping subproject are in compliance with the standard limit of Emission Standard for Industrial Enterprises Noise at Boundary Class II (GB12348-2008) and Environmental Quality Standard for Noise (GB3096-2008) Class 4a.

47. The monitoring result during the HSP operation (Harbin Taiping): The monitoring data was from the on-line exhaust emission automatic monitoring system of Taiping HSP, which shows that the pollutants of SO2, NOx and flue dust in the maximum concentration (Oct. to Dec. 2018) all meet the national Standard of Pollutants Emission from Boilers of GB13271-2014. (Table 4-7). The full air quality data attached in Appendix I for reference.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

3 Table 4-7: Maximum level of PM, SO2, and NOx of Harbin Subproject (Unit: mg/m ) Date PM SO2 NOx Compliance Status 2018.10.18 12.362 378.671 289.775 Meet the standard 2018.10.25 8.185 293.486 323.759 Meet the standard 2018.10.30 9.675 369.860 308.076 Standards: Meet the standard 2018.11.06 13.785 392.932 211.632 GB13271-2014 Meet the standard 2018.11.13 12.770 395.797 316.571 (Table 1): Meet the standard 2018.11.20 18.528 380.849 321.814 PM 80 Meet the standard 2018.11.27 16.216 299.968 347.813 SO2 400 Meet the standard 2018.12.04 21.334 369.694 395.588 NOx 400 Meet the standard 2018.12.14 27.582 385.997 383.923 Meet the standard 2018.12.19 18.200 378.082 302.866 Meet the standard 2018.12.26 27.563 330.713 316.976 Meet the standard Source: Harbin Yuchi Environmental Testing Co., LTD.

(6) Hailin Subproject

48. The construction for Hailin subproject was stopped in November 2018 due to cold weather, and the external monitoring was conducted by HYETC in December 2018, so the monitoring was not conducted for the subproject. Both the PIA and HYETC promised that the monitoring for the subproject will be conducted in spring 2019, which will be included in the next EMR.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

V. CLOSURE OF SMALL BOILERS

49. The Project was expected to demolish 359 small, inefficient and coal-fired boilers. As of the end of December 2018, 322 small boilers (90% of the planned total) have been shut down. Only 42 small boilers in Hailin remained, which is planned to be demolished before the end of June 2019.

Table 5-1: Small Boilers Closed by June 2018

Number of Small Remaining No. Subproject Boilers Closed Boilers Boilers 1 Qitaihe DH 15 15 0 2 Harbin Taiping HP and DH 18 18+5 0 3 Jiamusi West DH 218 218 0 4 Tongjiang City HP and DH 36 36 0 5 Yichun City-Tangwanghe DH 16 16 0 6 Hailin CHP (newly added) 56 14 42 Total 359 317+5 42 Note: DH = district heating, HP = heating plant. Source: PIAs.

VI. PUBLIC CONSULTATION, GRIEVANCE REDRESS MECHANISM

50. Public consultation during EIA for each subproject had been conducted during preparation of the domestic EIAs and the IEE in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s SPS (2009). Information disclosure and public consultation included: two rounds of internet/newspaper disclosure; numerous meetings with key stakeholders, including representatives of the affected public, local authorities and sector specific organizations; informal visits to communities and households in the project areas; two questionnaire surveys; and a wider stakeholder meeting attended by affected people and other concerned stakeholders. 51. Public consultation in 2016. As a part of the requirements of the environment acceptance process, additional information disclosure and public consultation were conducted for Tongjiang subproject in 2016. A two-page project information was disclosed and it includes project scope, environmental controls, environmental mitigation measures taken by the PIA. A questionnaire survey method was used to get public opinion and questionnaire was distributed to 50 people and collected 50 returned questionnaires. The survey results are summarized below: i)or the project benefits, 78% of the participants think the project will improve the air quality in Tongjiang; 34% of them think the project will improve the economic development; 32% of them think it will improve the quality of life; and 30% of them think it will increase the financial income of Tongjiang; ii) Survey participants mostly pay attention to emissions from the boilers (62%) and secondary concern is fugitive dust from the coal storage yard and ash storage area (27%); iii) 84% of the participants think the environment control devices are effective; 16% of the participants did not know enough to comment and no one thinks it’s not effective; and iv) 62% of the participants agree with the environment acceptance; 38% of them can accept with the environment acceptance while no one disagrees. 21

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

52. A grievance redress mechanism (GRM) was established in each subproject city in compliance with ADB’s SPS requirement to prevent and address community concerns and assist the project to maximize environmental and social benefits. The GRM was presented and discussed with potentially affected persons during public consultation. Table 6-1: Contact details for the entry points of subprojects Contact Agency Position Telephone E-mail person Harbin Taiping

IA of Harbin Zhang Cheng Section chief 13936168730 [email protected]

Tangwanghe

Contractor Wang Xiaoguang Project manager 13904580338 [email protected] Construction Guo Dehai Project manager 13846689440 [email protected] supervisor LEPB Ma Shengli Director general 13359660909 [email protected] PPCU Wang Qiang Deputy director 18704587007 [email protected] Deputy project PIA Yan Ruihai 13945893068 [email protected] manager Tongjiang

Contractor Li Zhihua Project manager 13796691920 Construction Zhao Feng Chief engineer 13351645857 supervisor EPB Gao Yongsheng Supervision chief 13019753313 IA Chen Diangui Chief engineer 15177193777 Source: Information provided by PIAs

53. During the reporting period, there was no public consultation activity and grievance in the project cities.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

VII. INSTITUTIONAL STRENGTHENING AND TRAINING

54. The Study Tour to Liaoning Province was successfully conducted with the consultants’ assistance from December 24th to 27th 2018. The study tour includes eight members from the PMO, the Provencal DRC and the IAs of Harbin Taiping, Jiamusi, Tangwanghe and Hailin, During the study, the two heating supply companies of Yingkou Huayuan Thermal Power Company and Yingkou Dashiqiao Hongyang Thermal Power Company in Liaoning Province were visited. The leaning contents include: energy saving for heating supply in cold area; boiler emission control; management of district heating supply industry and service improvement, etc.

55. A capacity building and training program has been defined in the project EMP, which addresses training needs, i.e. training needed for project personnel in order to ensure that contractors and CSCs are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards.

56. The LIEC conducted training to the staff, technicians and managers from the PMO, the PIAs, the contractors, the CSC and other related units. The main contents of training included i) introduction of the international best practice on soil erosion protection; ii) district heating and emission reduction and climate change; iii) introduction of ADB’s SPS and the World Bank’s Environment, Health and Safety; iv) EMP and mitigation measures during both construction and operation; v) project GRM implementation; and vi) best practices for EMP implementation during construction including responsibilities of contractors and CSCs. Refresher trainings on EMP implementation and monitoring reporting were conducted in October 2016 and November 2017 and representatives from each subproject participated in the training. The status of implementing the training program specified in the EMP is summarized in Table 7-1.

57. The contractor and CSC’s monthly standard forms for recording environmental management and mitigation measures were submitted to the PMO and PIAs by contractors and CSCs.

Table 7-1: EMP Capacity Building and Training Program

Date Completed or Topic Attendees Comments Planned ADB’s and PRC’s PMO, PIAs and Completed in December ADB’s safeguard policy statement environmental laws, contractors 2014, May 2015, October and other environmental regulations; regulations and 2016 and November Project applicable PRC’s policies 2017 environmental laws, policies, standards and regulations; International environmental management practice in civil constructions Grievance Redress PMO, PPCU, PIAs, Completed in December GRM structure, responsibilities, and Mechanism Local EPBs, 2014, May 2015 and timeframe residential October 2016 communities, and Stakeholders Implementation of PMO, PIAs, Completed in December Impacts and mitigation measures environment contractors, CSCs 2014, May 2015, October during construction and operation; monitoring plan 2016 and November Monitoring and auditing mechanism; 23

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

2017 Reporting requirements; Corrective action of EMP International good IA, local EPBs Completed in December practices and 2014 and May 2015 technologies in district heating Source: Consultants.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

VIII. COMPLIANCE WITH ENVIRONMENT RELATED PROJECT COVENANTS

58. Compliance with covenants defined in the Loan Agreement and Project Agreement that directly or indirectly refer to environment, health and safety, and the implementation of the EMP has been assessed. The project complies with most environmental covenants while some are not yet due. A list of loan covenants and compliance status is shown Table 8-1 below.

Table 8-1: Compliance with environment related project covenants Reference to Loan Status of Covenants Documents Compliance PROJECT AGREEMENT a) The HPG shall ensure, and cause the PIAs to ensure, Schedule: In compliance. that the preparation, design, construction, implementation, Execution of No violation was operation and decommissioning of the Project and all Project observed or Project facilities comply with (a) all applicable laws and Para 3 reported by the regulations of the Borrower relating to environment, health PIAs. and safety; (b) the Environmental Safeguards; and (c) all measures and requirements set forth in the IEE, EMP and any corrective or preventative actions set forth in a Safeguards Monitoring Report. b) The HPG shall ensure, and cause the PIAs to ensure, Schedule: In compliance. that all bidding documents and contracts for Works contain Execution of provisions that require contractors to: Project (1) comply with the measures relevant to the contractor set Para 6 forth in the IEE, EMP and any corrective or preventative actions as set forth in a Safeguards Monitoring Report; (2) make available a budget for all, such as environmental and social measures; and (3) provide the HPG, through the PIAs, with a written notice of (i) any unanticipated environmental risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE and EMP, and/or (ii) any other unanticipated social risks or impacts that arise during construction, implementation or operation of the Project. c) The HPG shall do, and cause the PIAs to do, the Schedule: In compliance. following: Execution of Before this EMR, Project seven EMRs (1) submit (i) semiannual Safeguards Monitoring Reports had been during construction, and (ii) annual Safeguard Monitoring Para 7 submitted. Reports for environment during operation of Project facilities, to ADB for review and disclose relevant information from such reports to affected persons promptly upon submission; (2) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE and/or EMP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event 25

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Reference to Loan Status of Covenants Documents Compliance and proposed corrective action plan; and (3) report any actual or potential breach of compliance with the measures and requirements set forth in the EMP promptly after becoming aware of the breach. d) The HPG shall cause the PIAs to complete the closure Schedule: As of the end of of around 470 small coal-fired heat boilers identified for Execution of December 2018, closure under the Project by 2017. The demolition of Project 322 small boilers boilers, in particular the handling and disposal of wastes (90% of the Para 15 including asbestos or asbestos contaminated materials, if planned total) any, shall be carried out in accordance with the provisions have been shut set forth in the IEE and EMP. The cost associated with the down. only 42 handling, transport and disposal of asbestos or asbestos small boilers contaminated materials shall be included in the Project. (Hailin The HPG shall ensure that before Project completion, site subproject) to be investigation of contaminated land has been conducted, shut down. and site-specific remedial measures have been developed, reviewed and cleared by the concerned local environment Implementation protection bureaus and ADB. The HPG shall cause the of labor and PIAs to ensure that (a) all permanent employees affected retrenchment by the closure of such small boilers under the Project are and reemployed in a timely manner and in accordance with the reemployment Labor Retrenchment and Reemployment Plan, so that they plan is being shall be at least as well off as they would have been in the implemented. absence of the Project; (b) casual workers are reemployed where possible; (c) employment training is arranged for the remaining unemployed seasonal workers; (d) adequate staff, resources and budget are committed for monitoring and supervision of the Labor Retrenchment and Reemployment Plan; and (e) implementation of the Labor Retrenchment and Reemployment Plan is reported to the HPG and ADB through semiannual progress reports, and Project completion reports. e) The HPG shall ensure that, within 2 months of the Schedule: In compliance. Effective Date, a grievance redress mechanism, acceptable Execution of GRMs were to ADB and in accordance with the PAM, is established and Project established in functioning effectively to (a) review and document eligible Para 21 the project cities. complaints of Project stakeholders; (b) proactively address No complaints grievances; (c) provide the complainants with notice of the were received in chosen mechanism/action; and (d) prepare periodic reports the second half to summarize (i) the number of complaints received and of 2018. resolved, (ii) chosen actions, and (iii) final outcomes of the grievances and make these reports available to ADB. Eligible complaints shall include (a) those related to the Project; (b) any of the service providers; (c) any person responsible for carrying out the Project; (d) complaints on misuse of funds and other irregularities; and (e) grievances due to any safeguards and gender issues. Source: Consultants.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

IX. CONCLUSIONS

59. EMP implementation during the reporting period was generally satisfactory. Base on the site inspection conducted by the consultants, the PMO and PIAs in July, August and December 2018, the contractor of Hailin Subproject had assigned staff in charge of daily environment, health and safety management, and the CSC included an environmental supervision staff. The monthly internal monitoring forms were prepared by contractor and CSC, and submitted to the PMO and PIA, the environment management units (EMUs) were established. GRMs have been setup in both the PMO and PIAs. So far, no complaints have been received.

60. The study tour to Liaoning Province was conducted in December 2018 with the learning content of energy saving for heating supply in cold area; boiler emission control; management of district heating supply industry and service improvement, etc.

61. The certificated external environmental monitoring entity (HYETC) conducted the external environmental monitoring for the subprojects of Jiamusi, Qitaihe, Tangwanghe; and the data from the online boiler emission monitoring system of Tongjiang and Harbin Taiping HSPs showed that the pollutants of SO2, NOx and flue dust (PM) in the maximum concentration all meet the national Standard of Pollutants Emission from Boilers of GB13271-2004.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Appendix 1: Tongjiang Monitoring Data from the Online Monitoring System of the HSP

(Unit: mg/m3)

Monitoring Time PM SO2 NOx 2018-10-18 22:00:00 23.65 363.48 81.00 2018-10-18 20:00:00 23.48 366.43 79.90 2018-10-18 19:00:00 23.54 363.76 78.30 2018-10-18 18:00:00 23.57 364.10 76.80 2018-10-18 17:00:00 23.70 365.07 78.77 2018-10-18 16:00:00 23.74 364.61 82.44 2018-10-18 15:00:00 23.93 365.40 86.18 2018-10-18 14:00:00 24.02 362.31 83.56 2018-10-18 13:00:00 24.07 356.55 80.73 2018-10-18 12:00:00 23.98 358.46 78.94 2018-10-18 11:00:00 23.81 360.88 75.87 2018-10-18 10:00:00 23.96 356.93 75.49 2018-10-18 09:00:00 24.00 354.31 76.78 2018-10-18 08:00:00 23.87 355.73 78.77 2018-10-18 07:00:00 23.88 351.21 79.66 2018-10-18 06:00:00 23.90 350.51 77.86 2018-10-18 05:00:00 23.96 350.48 78.44 2018-10-18 04:00:00 23.80 353.82 77.44 2018-10-18 03:00:00 23.73 358.11 74.38 2018-10-18 02:00:00 23.87 357.63 76.43 2018-10-18 01:00:00 23.83 356.98 78.82 2018-10-18 00:00:00 23.88 355.04 80.84

2018-10-28 23:00:00 23.30 277.67 102.04 2018-10-28 21:00:00 23.02 285.21 107.35 2018-10-28 20:00:00 23.03 279.33 106.35 2018-10-28 19:00:00 24.04 263.49 99.80 2018-10-28 16:00:00 23.65 269.85 95.61 2018-10-28 15:00:00 22.36 282.75 100.12 2018-10-28 11:00:00 22.54 265.23 107.15 2018-10-28 08:00:00 22.36 294.69 95.61 2018-10-28 06:00:00 22.29 297.97 96.20 2018-10-28 05:00:00 22.38 298.35 100.01 2018-10-28 04:00:00 22.50 294.78 107.96

2018-11-08 22:00:00 27.98 358.69 44.52 2018-11-08 21:00:00 28.55 355.12 47.50 2018-11-08 19:00:00 29.27 344.36 39.88 2018-11-08 18:00:00 30.33 324.53 41.91 28

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Monitoring Time PM SO2 NOx 2018-11-08 17:00:00 30.29 327.82 44.97 2018-11-08 16:00:00 30.50 327.31 45.83 2018-11-08 15:00:00 30.91 319.73 50.49 2018-11-08 14:00:00 31.26 311.21 55.47 2018-11-08 13:00:00 31.33 319.99 58.18 2018-11-08 12:00:00 31.38 312.16 58.53 2018-11-08 09:00:00 30.20 322.83 50.93 2018-11-08 07:00:00 29.34 338.40 52.32

31.15 0烟尘值 0 二氧化硫值 0 氮氧化物值！□ 烟道截面积值口烟气湿度值 0 烟气流速值口烟气动压值 0 烟气 2018-11-17 20:00:00 温度值 [□烟气压力 357.89 147.51 值 0 排放值 [□歼境湿度 [□歼境温度口反吹压力口一氧化碳值 0 氧含值口伴热温度口制冷温度值口全选 2018-11-17 19:00:00 31.90 355.97 151.16 2018-11-17 18:00:00 31.64 359.94 155.93 2018-11-17 15:00:00 31.71 371.09 153.81 2018-11-17 13:00:00 37.02 264.70 170.16 2018-11-17 12:00:00 39.62 223.86 184.29 2018-11-17 11:00:00 43.12 311.31 164.55 2018-11-17 08:00:00 33.41 363.93 123.42 2018-11-17 07:00:00 33.94 348.13 129.27 2018-11-17 05:00:00 33.39 357.77 136.23 2018-11-17 03:00:00 33.93 355.15 136.67

2018-11-28 23:00:00 36.66 320.00 109.05 2018-11-28 22:00:00 36.77 314.50 109.84 2018-11-28 20:00:00 36.73 320.99 112.11 2018-11-28 16:00:00 36.80 309.05 113.01 2018-11-28 15:00:00 36.94 323.84 102.18 2018-11-28 11:00:00 38.34 297.72 96.64 2018-11-28 10:00:00 38.18 304.42 97.22 2018-11-28 08:00:00 37.88 295.45 105.21 2018-11-28 06:00:00 39.00 270.42 101.92 2018-11-28 03:00:00 38.17 291.61 112.97 2018-11-28 01:00:00 38.70 306.79 124.31 29

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Monitoring Time PM SO2 NOx

2018-12-09 09:00:00 17.14 374.66 193.29 2018-12-09 08:00:00 17.36 376.86 183.13 2018-12-09 07:00:00 16.96 375.88 185.68 2018-12-09 06:00:00 16.99 378.18 183.10 2018-12-09 05:00:00 16.40 374.13 177.46 2018-12-09 04:00:00 16.31 371.31 183.74 2018-12-09 03:00:00 16.56 365.70 177.05 2018-12-09 02:00:00 17.86 367.18 171.32 2018-12-09 01:00:00 17.91 361.14 168.02 2018-12-09 00:00:00 16.19 362.76 179.88 2018-12-09 23:00:00 16.23 373.81 173.50 2018-12-09 21:00:00 16.35 372.71 156.94 2018-12-09 20:00:00 16.51 370.75 145.94 2018-12-09 19:00:00 17.59 370.66 166.28 2018-12-09 17:00:00 19.03 363.20 165.32 2018-12-09 16:00:00 19.65 363.89 162.24 2018-12-09 15:00:00 18.44 363.59 162.63 2018-12-09 14:00:00 17.97 365.96 171.22 2018-12-09 13:00:00 22.18 371.00 161.83 2018-12-09 12:00:00 20.54 364.40 168.40 2018-12-09 11:00:00 22.79 366.54 175.29 2018-12-09 10:00:00 18.77 368.06 185.42 Note: Data marked with grey is the maximum level of each parameter in one day. Source: Consolidated by consultants from PMO.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Appendix 2: Harbin Monitoring Data from the Online Monitoring System of the HSP

18 Oct. 2018

28 Oct 2018

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

8 Nov. 2018

17 Nov. 2018

28 Nov. 2018

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

9 Dec. 2018

9 Dec. 2018 Source: PMO

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Appendix 3: Potential Impacts and Mitigation Measures during Construction and Operation

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues Soil erosion  Minimize active open excavation areas during In compliance. Soil due to pipeline trenching activities and some foundation Limit construction during construction works, and use appropriate compaction techniques periods of high winds. activities for those constructions Water spray for dust control.  Construct intercepting ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage  Limit construction and material handling during periods of rains and high winds  Stabilize all earthwork disturbance areas within maximum 14 days after earthworks have ceased at the sites  Plant grass in the heating plants to protect ground, especially on sandy soil areas  Properly slope or re-vegetate disturbed surfaces, such as compacted pipeline trenches  Appropriately set up temporary construction camps and storage areas to minimize land area required and impact on soil erosion Soil  Properly store petroleum products, hazardous In compliance. contamination materials and wastes on impermeable surfaces in Petroleum waste collected secured and covered areas, and use the best in specific tank, and cleaned management practice to avoid soil contamination once a month  Remove all construction wastes from the site to approved spoil disposal sites  Provide spill cleanup measures and equipment at the construction site and require contractors to conduct training in emergency spill response procedures Surface and  All areas where construction equipment is being In compliance. Wastewater groundwater washed will be equipped with water collection basins Fuel followed proper contamination and sediment traps protocol for transferring fuel from  Septic treatment and disposal systems will be and the PRC standard of construction installed at construction camps along with proper JT3145-88 (Transportation, wastewater, maintenance protocols Loading and Unloading of and domestic  For areas with oily wastewater discharges, oil-water Dangerous or Harmful water separators will be installed before the sedimentation Goods) basin Noise from  Ensure that noise levels from equipment and In compliance. Noise construction, machinery conform to the National standard, and Winter construction hours: machinery properly maintain machinery to minimize noise 9:00-18:00; Summer operation, and  Apply noise reduction devices or methods where construction hours: 8:00- transportation piling equipment is operating within 500 m of 17:00. activities sensitive sites such as schools, hospitals, and Piling equipment is operated residential areas at 2 km away from the  Locate sites for rock crushing, concrete-mixing, and nearest resident area;

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues similar activities at least 1 km away from sensitive areas  To reduce noise at night, restrict the operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban roads between 8 pm and 7 am the next day based on international best/common construction practice  Public notification of construction operations will incorporate noise considerations; information procedure of handling complaints through the Grievance Redress Mechanism will be disseminated  Place temporary hoardings or noise barriers around noise sources during construction, if necessary  If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation Vibration  Prohibition of, pipeline trench compacting, pilling In compliance. Vibration generating by and road roller operation at night Same as above. compacting and rolling Dust  Spraying water on construction sites and material In compliance Ambient Air generating by handling routes where fugitive dust is being During construction water construction generated spray twice a week; limit activities  Pay particular attention to dust suppression near construction during Winter sensitive receptors such as schools, hospitals, or period with high wind. residential areas  Cover materials during truck transportation, in particular, the fine material, to avoid spillage or dust generation;  Pay particular attention to dust suppression near sensitive receptors such as schools, hospitals, or residential areas Air emission  Store petroleum or other harmful materials in Timely maintain vehicles from vehicles appropriate places and covering to minimize fugitive and construction and dust and emission machineries construction  Ensure vehicle emissions are in compliance with equipment PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005  Maintain vehicles and construction machineries to a high standard to ensure efficient running and fuel- burning and compliance with the PRC emission standards Solid waste  Establish temporary storage for solid wastes away In compliance. Solid Waste from from water bodies or other environmental sensitive Domestic waste collected in construction areas, and regularly haul to an approved landfill or specific tank, and cleaned activities designated dumping site once a week  Provide appropriate waste storage containers and reach agreement with local villages or residential 35

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues communities for disposal of worker’s camp domestic waste through appropriate local facilities. These arrangements will be made prior to commencing construction  Hire a contractor with proper credentials to remove all wastes from sites to approved waste disposal sites, according to appropriate domestic standards  Hold contractors responsible for proper removal and disposal of any significant residual materials, wastes, and contaminated soils that remain on the ground after construction. Any planned paving or vegetating of the area shall be done as soon as the materials are removed to protect and stabilize the soil  Prohibit waste incineration Hazardous  Prepare and implement the protocol for the handling In compliance. and Polluting and disposal of hazardous and pollution construction Fuels, oil, and other Materials from materials including a spill prevention and emergency hazardous materials were construction plan stored within secured areas activities  Storage facilities for fuels, oil, and other hazardous on impermeable surfaces. materials shall be within secured areas on Vehicles and equipment impermeable surfaces, and provided with bunds and were staged in designated cleanup installations areas to prevent  Vehicles and equipment will be properly staged in contamination of soil and designated areas to prevent contamination of soil surface water. and surface water; vehicle, machinery and equipment maintenance and refueling shall be properly carried out so that spilled materials do not seep into the soil  Oil traps shall be provided for service areas and parking areas; and fuel storage and refilling areas will be located at least 300 m from drainage structures and important water bodies  Contractors’ fuel suppliers shall be properly licensed. They shall follow proper protocol for transferring fuel and the standard of Transportation, Loading and Unloading of Dangerous or Harmful Goods of JT 3145-88 Small boiler  A month before demolishing the small boilers, a In compliance site survey and investigation for the small boiler sites will be conducted by the PIAs and the local EMCs under supervision of the local EPBs. The assessment will include contamination status of soil, groundwater, structures and surface water bodies if nearby. Base on the survey and investigation, if the environments are contaminated, the site restoration plan shall be developed taking into account the World Bank’s Group General EHS Guidelines on Construction and Decommissioning and follow up activities will be conducted by the PIAs under the supervision of the

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues local EPBs.  Asbestos risk assessment will be conducted by the project city EPB under the supervision of Harbin Hazardous Wastes Disposal Center (HHWDC), which will be shared by the local EPBs, the PMO and ADB. In case of  If unexpected asbestos and ACM is identified In compliance asbestos through the assessment, the removal, transport and impact during disposal of asbestos and ACM will be carefully and demolishing professionally conducted. The associated costs will small boilers be included in the project. houses  Identify, properly label and pack asbestos as well as demolishing debris contaminated with asbestos during demolishing small boilers, and transport them in specific closed vehicles to the secured landfill of HHWDC in Harbin in accordance with the World Bank’s EHS Guideline  Proper protective clothing and specific equipment shall be provided by HHWDC to its trained team and demolishing contractors’ workers involving demolishing and disposal of asbestos during deconstruction of the small boilers  Train workers on the hazards, danger and procedures of working in areas contaminated with asbestos  A site contamination investigation will be undertaken in consultation with the local city EPB, and if necessary site specific plans taking into account the World Bank’s Group General EHS Guidelines on Construction and Decommissioning will be developed to address any site contamination. The plans will be reviewed by the local EPB and ADB. Contaminated spoil will be transported to suitable spoil disposal sites approved by the local EPB, and clean fill provided. The site will be rehabilitated to a level suitable for its proposed future use; the local EPB will approve the rehabilitation, and will require additional rehabilitation actions if necessary. Non-  Maximize reuse/recycling of deconstruction wastes In compliance hazardous generated during demolition (e.g. iron, bricks, solid waste windows, doors, steel bars etc.), sell them to local generated by waste recycling stations) demolishing  Dispose other demolition debris in municipal solid small boilers waste landfills or special construction and demolition houses debris landfills subject to approval by the municipal EPBs  Throwing waste into the river will be strictly prohibited Protection of  Preserve existing vegetation where no construction In compliance. Flora and vegetation, re- activity is planned, or temporarily preserve The greening is planned to 37

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues Fauna vegetation of vegetation where activity is planned for a later date be built along both sides of disturbed  Properly backfill, compact, and re-vegetate pipeline the road. The greening will areas; planting trenches after heating pipeline installation start after the road and  Protect existing trees and grassland during construction. compensatory constructions; when a tree has to be removed or an planting trees area of grassland disturbed, replant trees and re- and grass vegetate the area after construction  Remove trees or shrubs only as a last resort if they impinge directly on permanent structures; and  In compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation Traffic  Require contractors to consider the impact on traffic In compliance. Community congestion in construction scheduling. A traffic control and Coordinated construction Disturbance and accident, operation plan will be prepared and it shall be activities with local traffic and approved by each local traffic management management authorities. and Safety interruption in administration before construction. The plan shall public utilities include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, building interim roads, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed.  The plan shall also include coordination with other utility providers to ensure the construction activities will not interfere or interrupt with their services.  Plan construction activities so as to minimize disturbances to utility services. Temporary land occupation will be planned well ahead of construction to minimize its impact. Land will be reinstated to its original condition after construction  Implement safety measures around the construction sites to protect the public, including warning signs to alert the public to potential safety hazards, and barriers to prevent public access to construction sites Health  Identify and minimize, so far as reasonably In compliance. Occupation damage and practicable, the causes of potential hazards to accidents Provide sufficient personal al health workers. protective equipment to all during  Provide preventive and protective measures, workers. and safety construction including modification, substitution, or elimination of activities hazardous conditions. Provide safety training for  Provide appropriate personal protective equipment employment of workers; (PPE) to minimize risks, including ear protection, Provide periodically class iii hard hats and safety boots. safety education and disease  Provide adequate safety protection equipment prevention. including firefighting systems.  Provide adequate signage in risk areas.  Provide procedures for limiting exposure to high 38

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues noise or heat working environments in compliance with PRC noise standards for construction sites (GB12523-1990) and relevant international guidelines.  Provide training for workers, and establish appropriate incentives to use and comply with health and safety procedures and utilize PPE.  Provide training for workers on the storage, handling and disposal of hazardous wastes.  Provide procedures for documenting and reporting occupational accidents, diseases, and incidents.  Provide emergency prevention, preparedness, and response arrangements  Daily reminder on specific safety issues before operation  Establish and conduct chance-find procedures for None Physical physical cultural resources Cultural  Cultural heritage sites will be preserved where identified. Strictly in accordance with PRC Resources regulations, no person shall destroy, damage, deface, conceal or otherwise interfere with the relic  If a new site is unearthed, work should be stopped immediately and the PIA and local cultural relic bureau promptly notified, and construction will resume only after a thorough investigation and with the permission of the appropriate authority. Operation Air pollution  Proper operation and maintenance of In compliance. Air Quality from heat desulfurization, denitrification, dust removal source equipment and online monitoring instruments Dust from coal  Water will be sprayed to suppress dust during In compliance. and ash transporting and unloading coal handling  Water spraying of coal stockpiles will be optimized to minimize air flow through the stockpile;  Coal stockpiles will be compacted as required to minimize air ingress and the potential for auto ignition and loss of volatiles;  Enclosed trucks will be used for transportation of ash from heating plants to secondary user industry;  Water spraying on top layer of ash in the ash dykes will be conducted. Noise from  Provide acoustic enclosures, barriers, or shields to In compliance. Noise coal crusher, reduce noise; draft fan, air  Provide green belt all along the heating plants' compressor boundary for further attenuation of noise; and water feed  Implement restricted access, and provision of pumps in heat protective equipment such as earmuffs and source earplugs for personnel working in high noise generating areas; 39

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues  Mufflers will be installed on vents of the boiler and air blowers and sound-proof shields will be installed on the power generators to mitigate the noise impact. Noise from  Install sound-proof shield and double window In compliance. heat exchange stations Fly ash and  All fly-ash and slag will be stored on site and sold to In compliance. Solid slag could the local construction industry as a raw building Wastes affect soil and material and to be used as material for road water quality if construction. not properly  No permanent on site ash disposal will be allowed. managed Boiler  All demolition wastes will be routinely collected by In compliance. decommissioni appropriately licensed waste management ng could affect companies for reuse, recycling (e.g. equipment; soil, air and steel, iron and other metals; salvageable wood and water quality if building materials; etc.) or final disposal in a not managed licensed waste facility (e.g. for non-recyclable properly. materials). Waste management will be undertaken in consultation with local authorities.  No onsite landfills will be permitted at any demolition site.  No burning of wastes will be permitted at any demolition site.  A site contamination investigation will be undertaken in consultation with the local city EPB, and if necessary site specific plans will be developed to address any site contamination. Contaminated spoil will be transported to suitable spoil disposal sites approved by the local EPB, and clean fill provided. The site will be rehabilitated to a level suitable for its proposed future use; the local EPB will approve the rehabilitation, and will require additional rehabilitation actions if necessary.  Homeowners who choose to dispose their household stoves should be given access to the services of the waste management companies noted above. Water pollution  Wastewater will be treated to achieve maximum In compliance. Wastewater and reuse in reuse and recycling; heat source  Leachate and drainage from the coal storage yard plant will be collected and drained into the storage pond for reuse in spraying the coal storage yard and treated to remove the particles before reuse;  All HSPs’ sanitation facilities will discharge to septic systems and municipal sewer networks that meet relevant PRC standards;  Runoffs from HSPs will be directed to sedimentation basins, and wastewater will be reused if possible, 40

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Potential Implementation status and Item Impacts and Mitigation Measures and/or Safeguards compliance with EMP Issues for dust suppression. Solid waste residue in the basins will be cleared as required and transported to local EPB approved landfills;  For areas with oily wastewater discharges, oil-water separators will be installed before discharging to the sedimentation basins; and  Wastewater will be treated for removal of oil and grease and it will be re-used on-site for horticulture.  Any oil and grease sludge skimmed out from the treatment process will be collected and handed over to recycler as per PRC standards. Wastewater  Regularly clean the sedimentation tank, dispose of In compliance. from heat accumulated sludge and sediments in the municipal exchange landfill; and stations  Conduct environmental monitoring for the backwash effluent based on the EMP before discharging into the sewer. Backwash  Build an equalization and sedimentation tank in In compliance. effluent from each HES for pH adjustment and sedimentation heat exchange (SS≤400mg/L) before the backwash effluent is stations discharged into the municipal sewer; Occupational  Conduct regular inspections of the district heating In compliance. Community and network, and repair defects promptly; and Disturbance community  Comply with the PRC State Administration of health and Worker Safety Laws and Regulations and Safety safety

Economic  Labor Retrenchment Plan (LRP) developed and In compliance. Boiler displacement implemented in accordance with PRC applicable Demolition laws

Compliance  Review environmental monitoring and compliance In compliance. Associated with approved reports of project’s associated facilities of the heat source EIAs and heating plants and transmission tunnel/pipeline, EMPs suggest corrective actions if necessary.

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Appendix 4: Photos from Subprojects

Harbin Taiping Heating Subproject

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Hailin Subproject

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Jiamusi Subproject

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Qitaihe Subproject

Heilongjiang Efficient District Heating Project Environmental Monitoring Report (No.8)

Tongjiang Subproject