EMR: PRC: Liaoning Environmental Improvement Project

Environmental Monitoring Report

Environmental Monitoring Report Project Number: 36362 March 2008

PRC: Liaoning Environmental Improvement Project

Prepared by Liaoning Provincial Development and Reform Commission Foreign Capital Utilization Office/H&J Inc, USA Liaoning Province, PRC

This report has been submitted to ADB by the Liaoning Provincial Government Project Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Ref No: LNEIP-003-9-003

PEOPLE’S REPUBLIC OF CHINA LIAONING ENVIRONMENTAL IMPROVEMENT PROJECT ADB LOAN 2112-PRC

Second Semi-annual Environmental Monitoring Report 2007

Prepared for Asian Development Bank

Prepared by Liaoning Provincial Development and Reform Commission Foreign Capital Utilization Project Office

and

H&J, Inc., USA

March 2008

ABBREVIATIONS

ADB − Asian Development Bank BEPB − Benxi Environmental Protection Bureau BEMC − Benxi Environmental Monitoring Center BGHC − Benxi General Heating Company BPGC − Benxi Panva Gas Co., Ltd CEM − Continuous Environmental Monitoring CFB − Circulating Fluidized Bed CHP − Combined Heat and Power Generation CHS Central Heating Subproject CNY − Chinese Yuan EIA − Environmental Impact Assessment EMO − Environmental Management Office EMP − Environmental Management Plan EPB − Environmental Protection Bureau ESP − Electrostatic Precipitator GDI Gas Distribution Improvement Subproject GLP − Government of Liaoning Province HES Heat Exchange Station LDRC − Liaoning Development and Reform Commission LEPB − Liaoyang Environmental Protection Bureau LNEIP − Liaoning Environmental Improvement Project LREHC − Liaoyang Real Estate Heating Company PIA − Project Implementing Agency SEMR Semiannual Environmental Monitoring Report SIEE − Summary Initial Environmental Examination YEMC Yingkou Environmental Monitoring Center YEPB − Yingkou Environmental Protection Bureau YHC Yingkou Heating Company

TABLE OF CONTENTS

I. INTRODUCTION ...... 4 A. Basis of SEMR ...... 4 B. Environmental Procedure Review...... 5 C. Legal Requirements...... 6 II BENXI GDI ...... 7 A. Scope of Subproject...... 7 B. Subproject Progress...... 7 C. Environmental Management Office (EMO)...... 7 D. Environmental Monitoring Data ...... 7 E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards ...... 8 F. Issues and Recommendations...... 9 III. BENXI CHS ...... 10 A. Scope of Subproject...... 10 B. Subproject Progress...... 10 C. EMO ...... 10 D. Environmental Monitoring Data and Mitigation Measures Taken during the Construction Period...... 10 E. Issues and Recommendations...... 11 IV. LIAOYANG CHS ...... 12 A. Scope of Subproject...... 12 B. Subproject Progress...... 12 C. EMO ...... 12 D. Environmental Monitoring...... 12 E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards ...... 13 F. Issues and Recommendations...... 13 V. YINGKOU CHS ...... 14 A. Scope of Subproject...... 14 B. Subproject Progress...... 14 C. EMO ...... 14 D. Environmental Monitoring...... 14 E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards ...... 15 F. Issues and Recommendations...... 16 VI. CONCLUSIONS ...... 17

LIST OF APPENDIXES

Appendix A: Monitoring Data for Benxi GDI Appendix B: Monitoring Data for Yingkou CHS

iii I. INTRODUCTION

1. This Semiannual Environmental Monitoring Report (SEMR) describes the implementation of the environmental monitoring and implemented mitigation measures recommended in the Environmental Impact Assessment (EIA) and the Summary Initial Environmental Examination (SIEE) for the Liaoning Environmental Improvement Project (LNEIP or the “Project”) during the construction period.

2. Based on the Project Agreement, the Government of Liaoning Province and each Project Implementation Agency (PIA) shall ensure that (i) the Project be constructed and operated in accordance with the national and local environmental procedures and guidelines, ADB’s Environmental Policy (2002), and EIAs; (ii) any adverse environmental impacts arising from the construction and operation of the Project facilities be minimized by implementing the mitigation measures, environmental monitoring program and other recommendations presented in EIAs; and (iii) the implementation of the environmental management plan (EMP) and any violation of safety or environmental standards, if any, be regularly reported to ADB.

3. Environmental specialists from H&J, Inc (the “Consultant”) and the Liaoning PMO visited project sites in 2007. During their visits in depth discussions were made with the four PIAs and local environmental protection bureaus (EPBs) from Benxi, Liaoyang and Yingkou in regard to their responsibilities for environmental monitoring. Particular attention was focused on the monitoring and reporting compliance during the construction period. In addition, meetings and communications between the Consultant and PIAs were also made for collection of monitoring data and mitigation measures taken during the construction period in 2007.

4. This LNEIP consists of seven subprojects, including four ongoing subprojects and three newly approved subprojects. Benxi Central Heating Subproject (hereafter “Benxi CHS”) and Liaoyang Central Heating Subproject (hereafter “Liaoyang CHS”) were completed in 2006 and 2007, respectively. Most of Yingkou Central Heating Subproject (hereafter “Yingkou CHS”) was completed and the remaining will be completed in 2008. Sixty seven percent of installation work for Benxi Gas Distribution Improvement Subproject (hereafter “Benxi GDI”) were completed and the remaining will be completed in 2008. The construction of newly approved subprojects was not commenced in 2007.

5. This report applies for a period starting from April 1 to October 31, 2007 and covers the following areas: (i) documentation review and compliance with environmental regulations, (ii) environmental institutional structure and responsibility, (iii) mitigation measures undertaken to minimize adverse environmental impacts arising from the construction or operation of the Project facilities, (iv) environmental monitoring, and (v) conclusions and recommendations.

A. Basis of SEMR

6. The basis of this report is as follows: SIEE; EIAs; EMPs; Project Agreement; Monthly/Quarterly Environmental Monitoring Reports; Quarterly Progress Reports; and

Relevant Environmental Codes.

B. Environmental Procedure Review

7. Each of the contractors, construction supervision companies, and PIA’s designated staff from the site management team are responsible for environmental monitoring and supervision. The responsibilities of these staffs include day to day site environmental monitoring of their own contracts, implementation of environmental action plan mitigation measures, and reporting of site environmental performance of the contract sections, which is mainly a self inspection and self monitoring.

8. During the construction stage, the construction supervision companies are responsible for the preparation and submission of monthly environmental supervision reports; meanwhile the environmental monitoring agencies are responsible for the monitoring of environmental parameters and development of quarterly environmental progress reports.

9. The PMO has designated Mr. Chen Bin with environmental engineering background to serve as an environmental officer for this Project. The PMO, with the assistance of an implementing consulting firm, is responsible for compiling the SEMRs.

10. Specific responsibilities of PIAs, contractors, local environmental monitoring centers, and construction supervision companies are defined as follows:

PIA: ¾ Develop environmental section of the contract; ¾ Provide training to contractors and all other related environmental personnel; ¾ Site review; ¾ Resolve environmental complaints; ¾ Develop and implement pollution prevention measures; ¾ Implement environmental monitoring plans; ¾ Provide monthly environmental monitoring reports with monitoring data; ¾ Implement mitigation measures and health and safety; and ¾ Arrange for environmental meetings as necessary.

Local Environmental Monitoring Center: ¾ Conduct environmental monitoring and oversight; ¾ Develop environmental progress reports. Supervision Companies (during construction period): ¾ Environmental management; ¾ Receive complaint calls; and ¾ Report environmental issues. Contractors (during construction period): ¾ Implementation of environmental mitigation measures; ¾ Provide basic sanitation facilities; ¾ Domestic sewage treatment; ¾ Solid waste management; ¾ Noise and dust control; ¾ Personal protective equipment for workers; ¾ Take measures to ensure construction equipment to meet relevant national or local emissions and noise standards.

11. It was estimated that 412 small coal-fired heat boilers in the Project cities will be decommissioned by the end of 2008. Approximately, 261 such boilers had been closed by the end of October 2007 including 43 in Benxi, 141 in Liaoyang and 77 in Yingkou. As the central heating projects are being implemented, more small boilers are expected to be closed in late 2007 and/or 2008.

12. Specifically, the civil works for Liaoyang CHS was completed in 2006, and all the installation work was done inside the buildings. As a result, on-site environmental monitoring for air and noise during the construction period was not performed. Similarly, Benxi CHS was completed, so no environmental monitoring process was made during the reporting period.

13. The environmental monitoring for air and noise was performed for Benxi GDI and Yingkou CHS, and the relevant monitoring data were gathered during the reporting period.

C. Legal Requirements

14. The following provides a list of the applicable PRC environmental laws and regulations and ADB environmental policies and regulations during the construction period.

♦ Air Pollutant Integrated Emission Standard, GB16297-1996 ♦ Environmental Quality Standards for Surface Water, GB 3838-2002 ♦ Quality Standard for Ground Water, GB/T 14848-93 ♦ Noise Limits for Construction Site, GB 12523-90 ♦ Integrated Wastewater Discharge Standard, GB 8978-1996 ♦ Standard of Noise at Boundary of Industrial Enterprises, GB 12348-90 ♦ Integrated Emission Standard of Air Pollutants, GB16297-1996 ♦ Ambient Air Quality Standards, GB 3095-1996 ♦ Standard of Environmental Noise in Urban Area, GB 3096-93 ♦ Environmental Quality Standard for Soils, GB 15618-1995 ♦ Liaoning Wastewater and Waste Gas Discharge Standard, DB21-60-89 ♦ Water Quality Standard for wastewater to be injected into city sewage system, CJ 1082-1999 or CJ 0082-1999

II BENXI GDI

A. Scope of Subproject 15. This subproject is for replacement of 43 km aging gas pipelines and construction of 5 km new gas pipelines, including a set of gas desulphurization facilities. B. Subproject Progress 16. As of the end of October 2007, 67% of pipeline installation had been completed. Replacement and construction of 26.6 km aging gas pipelines and 5 km new gas pipelines had been completed and additional 12 km aging pipelines will be replaced in 2008. The subproject is expected to be finished in 2008. C. Environmental Management Office (EMO) 17. The Benxi Panva Gas Co., Ltd (BPGC) has appointed Mr. Fan Lianjing to be responsible for the environmental management of this subproject during the construction period. The responsibilities of the PIA and the Benxi Environmental Monitoring Center (BEMC) are discussed in Section I (B). The individuals and their titles in the EMO are summarized in Table 1.

Table 1 EMO Personnel of BPGC Name Organization Position Titles in EMO Wang Cuntian BPGC Deputy General Manager Director of EMO Fan Lianjing BPGC Deputy Director Deputy Director of EMO Chen Tie BPGC Division Chief Environmental management person Yin Zhiyu BPGC Division Chief Environmental management person Wang Tiejun Contractor Project Manager Environmental management person Chong Jianli Contractor Project Manager Environmental management person Wang Construction Supervision Engineer Environmental Zhenghong Supervision Co. management person Chu Guiqing Construction Supervision Engineer Environmental Supervision Co. management person Gao Guisheng BEMC Director Environmental monitoring person Chen Bin PMO Environmental Officer Coordinator on environmental issues

D. Environmental Monitoring Data 1. Air Monitoring

18. The construction of Benxi GDI subproject commenced in April 2007, and the dust monitoring work was conducted in the second, third and fourth quarter of 2007. Dust was monitored in the five construction sites during construction period.

19. The results, summarized in Appendix A, showed that daily values of TSP varied from 0.061 mg/m3 to 0.224 mg/m3, and were in compliance with the Ambient Air Quality 3 3 Standard (GB3095-1996) of 0.30 mg/m . The daily values of PM10 varied from 0.046 mg/m to 0.179 mg/m3, and 10.5% of the values exceed the Standard of 0.15 mg/m3.

2. Noise Monitoring

20. Noise was monitored in the four functional areas affected by the subproject during construction period. The monitoring data for noise are presented in Appendix Table A-2.

21. The applicable standard used for compliance evaluation is the Standard of Construction Site GB 12523-90.

22. The results, summarized in Appendix A, showed that recorded results for noise were in compliance with the standard of 75 dB (A) during day time and 55 dB (A) at night.

3. Wastewater Monitoring

23. No monitoring data concerning wastewater discharged into the municipal sewers was provided during the reporting period.

4. Solid Waste

24. No hazardous construction wastes and domestic wastes were produced during the construction period. The amount of solid waste produced during construction period was not provided. However, it is estimated to be 7,700 m3 based on the total number given in the EIA and the percentage of the subproject completed.

E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards 1. Dust Suppression

25. Dust control was regularly made by the Contractor. First, dusts produced during pipe trenching were suppressed through water spraying by the Contractor; second, emissions from construction equipment and vehicles were controlled by conducting appropriate weekly maintenance on sites; third, construction materials easily flying over were covered; and finally, soils excavated from pipe trenches on sites were cleared and transported out in due course.

2. Noise Control

26. Construction equipment with low noise was selected to be used during the construction period, while routine maintenance was made to keep construction equipment in good service condition. Construction time was seriously controlled to avoid adverse impacts on surrounding residents.

3. Wastewater Control

27. The program for construction activities was well prepared to appropriately avoid construction during rainy days. The solid wastes excavated were transported out in due course to avoid secondary wastewater pollution. In addition, most pipe trenches were excavated manually and/or by small-sized construction equipment, thus no heavy equipment

was used during pipe trenching, and no heavy equipment maintenance was made during the construction period.

4. Solid Waste

28. Most solid wastes excavated were appropriately placed and timely backfilled and the remaining were disposed at designated Qianjingou Site.

5. Erosion Control 29. Landscaping grass or trees were recovered after construction was completed.

6. Violation of Safety or Environmental Standards

30. None violation of safety or environmental standards was reported during the reporting period.

F. Issues and Recommendations

3 31. Since 10.5% of the PM10 daily values exceed the Standard of 0.15 mg/m , it is recommended that the Contractor, the construction supervision company and the PIA work together to reduce the rate exceeding the standard.

III. BENXI CHS

A. Scope of Subproject

32. The subproject PIA is the Benxi General Heating Company (BGHC). The subproject aims at improving the local air quality by replacing numerous small boilers with a larger more efficient central heating supply system. The subproject consists of: construction of 2x58 MW circulated fluid bed (CFB) hot water boilers; construction of support facilities (water, power and coal supply systems), construction of 17 km of heat supply pipeline and 18 heat exchange stations (HESs). The project will demolish 63 small and inefficient coal-fired boilers.

B. Subproject Progress

33. The construction of Benxi CHS was substantially completed in late 2005. The boilers reached full capacity during the 2006-2007 heating season. No further construction was made during the reporting period.

C. EMO

34. The BGHC has appointed Ms. Xia Jing and Mr. Jiang Hai to be responsible for the environmental management of this subproject. The responsibilities of the PIA, BEPB and the Benxi Environmental Monitoring Center (BEMC) are discussed in Section I (B). The individuals and their titles in the EMO are summarized in Table 2.

Table 2 EMO Personnel of BGMC Name Organization Position Titles in EMO Xia Jing BGHC Division Chief Director of EMO Li Yu Shi BEPB Deputy Director Deputy Director of EMO Gao Guisheng BEMC Director Environmental management person Jiang Hai BGHC Project Manager Environmental management person Gao Xu BGHC Environmental Person Environmental management person Chen Bin PMO Environmental Officer Coordinator on environmental issues

D. Environmental Monitoring Data and Mitigation Measures Taken during the Construction Period

35. No construction was made during the reporting period, and no environmental monitoring data was requested.

E. Issues and Recommendations

36. The excavation slope issue was requested to be addressed in late 2006 by ADB, but this has not been solved in the reporting period. It is recommended that the PIA take immediate actions to stabilize and seed the exposed excavation surface to prevent further erosion and loss of topsoil.

IV. LIAOYANG CHS

A. Scope of Subproject

37. The PIA for Liaoyang CHS is the Liaoyang Real Estate Heating Company (LREHC). Liaoyang CHS covers Beicaoku Heating Plant and Doushuangshu Heating Plant. This subproject includes a) ten 58 MW chain-grate stoker hot water boilers and auxiliaries, of which 2 are financed by local fund; b) 63 HESs, of which 8 are financed local fund; c) 48.5 km heat distribution pipelines, and d) 174 small boilers decommissioned. This subproject provides heating services to an area of 8.2 million m2.

B. Subproject Progress

38. All civil works for the subproject were completed in late 2006. The installation of the eight chain-grate stoker hot water boilers and their auxiliaries were completed in October 2007.

C. EMO

39. LREHC has appointed Mr. Zhao Guangwei and Mr. Luo Jiming to be responsible for the environmental management of this subproject. The responsibilities for the PIA, Liaoyang Environmental Protection Bureau (LEPB), Contractor and Loan Supervision Companies are discussed in Section I (B). The individuals and their titles in the EMO are summarized in Table 3.

Table 3 EMO Personnel of LREHC Name Organization Position Titles in EMO Zhao LREHC Deputy General Manager Director of EMO Guangwei Luo Jiming LEPB Deputy Director Deputy Director of EMO Yi Qinghao Contractor Project Manager Managing person Wang Contractor Project Manager Managing person Xueyin Li Yan Supervision Company Project Manager Environmental person Yu Junhai Supervision Company Project Manager Managing person Shi Jie LREHC Section Chief Environmental protection person Hong Xia LEPB Officer Environmental protection person Chen Bin PMO Environmental Officer Coordinator on environmental issues

D. Environmental Monitoring

40. No information was provided, because all civil works were completed in 2006, and all the remaining installation work was conducted indoors.

E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards 1. Dust, Wastewater and Solid Waste Control

41. In both Beicaoku and Doushuangshu Heating Plants, some coal was left over from the 2006-2007 heating season and was supposed to be used for the 2007-2008 heating season. Though the coal storage piles haven’t been covered to avoid fugitive dust emissions based on the Consultant’s recommendation made in June, the nets around coal storage area were repaired to avoid spreading of coal during windy days. The PIA was also reminded to take appropriate preventative measures to avoid stormwater runoff during the summer storm season.

42. In August 2007 there were still some bottom ash and slag stored in the Doushuangshu Plant. After a discussion between the Consultant and the PIA in regard to the slag to be taken away from the plants to avoid potential air and stormwater pollutions, from September, the ash and slag piles were no longer in the plant.

2. Noise Control

43. All equipment had been delivered on sites and all installation work was conducted inside the buildings, and doors and windows of workshops were closed to reduce noise impacts from the installation of boilers and other relevant equipment. In addition, the installation working time was seriously controlled to avoid adverse impacts on surrounding residents.

3. Violation of Safety or Environmental Standards

44. None environmental and safety violation was reported to the PMO during the reporting period.

F. Issues and Recommendations

45. The coal storage areas are open without any effective prevention measures to avoid fugitive dust emissions. It is recommended by ADB, the Consultant and the EIA that enclosed coal storage sheds and silos for ash storage need be constructed as soon as possible.

46. However, the existing coal storage area in the Beicaoku Heating Plant is located at a planned urban road. Thus a coal shed can not be constructed at this location. A half-enclosed coal shed and silos for ash storage will be constructed at another place. It is not sure at this moment if a land acquisition will be needed to construct the coal and ash storage sheds.

As regard to the Doushuangshu Heating Plant, mesh nets have been installed around the coal storage area as a temporary measure. It is planned to construct reinforced concrete walls surrounding the coal storage area, with a height of 1.5 meters, in the summer of 2008, while the mesh nets with a height of 5.5 meters will be installed on the reinforced concrete walls. Water spray system will be installed to reduce coal dusts, and drainage trenches will be constructed to discharge stormwater in the coal areas.

V. YINGKOU CHS

A. Scope of Subproject

47. Yingkou CHS consists of: (i) three 58 MW CFB boilers, of which 2 are financed by local fund and one by ADB; (ii) two 12 MW steam turbine power generators, of which 1 set is financed by local fund and the other by ADB; (iii) two 29 MW peak shaving boilers; (iv) 12 HESs; and (v) 40 km heat distribution pipelines.

B. Subproject Progress

48. The installation for one CFB 75 t/h-boiler, heating distribution pipelines and heat exchangers was completed during the reporting period.

49. The environmental management processes were carried out in accordance with the requirements of EIAs and applicable environmental standards. A training regarding environmental management was conducted before the construction commenced. The mitigation measures to reduce pollutions of air, noise, ground water and solid wastes were taken during the construction period. The environmental monitoring was conducted regularly to meet applicable environmental standards.

C. EMO

50. The Yingkou Heating Company (YHC) has appointed Mr. Yang Xishen to be responsible for the environmental management of this Subproject. The responsibilities for the PIA, Yingkou Environmental Monitoring Center (YEMC), Contractor and Local Supervision Companies are discussed in Section I (B). The individuals and their titles in the EMO are summarized in Table 4.

Table 4 EMO Personnel for YHC Name Work Unit Position Titles in EMO Shi Fenglai YHC Chief Engineer Director of EMO Liu Han YEMC Deputy Director Deputy Director of EMO Yang Xishen YHC Section Chief Manager Xue Shijin Anshan Sida Supervision Company Chief Supervision Manager Engineer Qian Jufu Jiangsu Huaneng Construction and Project Manager Manager Engineering (Group) Co. Ltd (Contractor) Li Yongzhi Yingkou Binhai Thermal Power Co. Ltd Manager Manager Chen Bin PMO Environmental Officer Environmental Coordinator

D. Environmental Monitoring

51. The PIA has signed a contract with the YEMC during the reporting period to provide environmental monitoring and collect environmental data according to the guidance provided by the Consultant. The Environmental Manager of PIA worked closely with the YEMC, PMO and the Consultant to ensure that environmental monitoring was conducted as prescribed under the covenants of this Loan in conjunction with ADB’s guidelines.

1. Air Quality Monitoring

52. As requested in the EIA, 22 air monitoring locations were set up to monitor TSP. Of them, one is for the boiler installation, 6 are for the installation of hot water pipelines, 3 are for steam pipelines, and the remaining 12 are for 12 HESs. The detail monitoring locations are summarized in Appendix B.

53. During June to October 2007, the environmental monitoring work lasted two days for each construction site, and the TSP was monitored twice a day.

54. The results, summarized in Appendix B, showed that the daily values for TSP varied from 0.236 mg/m3 to 0.388 mg/m3, and 7.6% of the values exceeded the Standard of 0.30 mg/m3.

2. Noise Monitoring

55. Similarly, 22 noise monitoring locations were set up around the heating plant, hot water pipelines, steam pipelines, and HESs to monitor noise during the construction period. The detail monitoring locations are summarized in Appendix B.

56. During June to October 2007, the environmental monitoring work lasted two days for each construction site, and the noise was monitored twice during daytime, because no construction was made at night.

57. The applicable standard used for sampling and testing is Noise Limits for Construction Site, GB 12523-90.

58. The results, summarized in Appendix B, showed that average values for noise are in compliance with the standard of 60 dB (A) and 70 dB (A) based on functional area grade.

3. Wastewater Monitoring

59. No monitoring data concerning wastewater discharged into the municipal sewers was provided during the reporting period.

4. Solid Waste

60. No hazardous construction wastes and domestic wastes were produced during the construction period. No information for solid wastes was provided during the reporting period.

E. Mitigation Measures Implemented and Violations of Safety or Environmental Standards

1. Air

61. The Contractor is responsible for the air quality control through water spraying before and after construction to reduce air pollutions.

2. Noise

62. Noise isolation barriers were applied on the sites with potential noise source to reduce adverse impacts to surrounding areas. Meanwhile, the construction time was appropriately set up to avoid affecting surrounding areas during the construction period.

3. Ground Water

63. The ground water produced during the construction period shall be timely discharged into the municipal sewers to avoid secondary pollutions.

4. Solid Waste

64. The portion of the solid wastes produced during the construction period but not used for backfill, were timely delivered into the designated landfill, while the portion of the solid wastes to be used for backfill were enclosed with regular water spraying to avoid air pollutions to the surrounding areas.

5. Violation of Safety or Environmental Standards

65. It is always requested that safe construction with good qualities be very significant. No any information for violation of safety or environmental standards was provided during the reporting period.

6. Training and Public Participation

66. Before the construction commenced, the training on managing staff included the knowledge of environmental protection and the importance of environmental management, and the training should be given by the management staff to the relevant workers on sites.

67. During the construction period, communications were made between the managing staff and the surrounding residents to know the satisfaction rates on the construction of the ADB financed subprojects. The satisfaction rate was over 90%.

F. Issues and Recommendations

68. Since 7.6% of the daily values for TSP exceed the Standard of 0.3 mg/m3, it is recommended that the Contractor, the construction supervision company and the PIA work together to reduce the rate exceeding the standard.

VI. CONCLUSIONS

69. The EMPs for the ongoing subprojects were generally implemented during the construction period. The subprojects were constructed in accordance with the national and local environmental procedures and guidelines, and the requirements of the EIAs. The adverse environmental impacts arising from the construction period were minimized by implementing relevant mitigation measures. None violation of safety or environmental standards was reported during the reporting period.

70. The PIAs of Benxi GDI and Yingkou CHS engaged environmental monitoring institutes to monitor the environment impacts and provided monitoring data to the PMO.

71. The issue of the excavation slope surface for Benxi CHS and the issue of open coal storage sites for all heating PIAs were discussed during the reporting period, and are expected to be addressed in 2008.

72. Liaoning EPB has provided up to CNY10 million funds to the PIA of Liaoyang CHS for environment improvement from 2006 to 2007. In addition, on-line environment monitoring equipment will be installed in Liaoyang and Yingkou subprojects in 2008.

Appendix A – Benxi GDI Table A-1 Monitoring Data for TSP and PM10 Year 2007 Results (mg/m3) Q1 Q2 Q3 Q4 Locations TSP PM10 TSP PM10 TSP PM10 TSP PM10

Dayu 0.152 0.114 0.121 0.091 0.076 0.057 0.104 0.078

Xihu 0.224 0.179 0.188 0.150 0.139 0.104 0.220 0.165

Dongming 0.168 0.126 0.163 0.122 0.115 0.086 0.127 0.095

Zhiye Hospital 0.139 0.104 0.105 0.079 0.061 0.046 0.105 0.079

Caitun 0.132 0.099 0.117 0.088 0.156 0.125

Value of GB3095-1996 II 0.3 0.15 0.3 0.15 0.3 0.15 0.3 0.15

Rate exceeding the standard 0% value of TSP

Rate exceeding the standard 10.5% value of PM10

Appendix A – Benxi GDI Table A-2 Monitoring Data for Noise Year 2007 Results Leq [dB(A)] Q1 Q2 Q3 Q4 Locations Day Night Day Night Day Night Day Night

Function Area I 48.1 37.1 49.9 40.4 50.0 38.3 49.9 43.0 Function Area II 51.9 40.8 53.4 44.6 50.3 43.4 53.3 43.9 Function Area III 59.8 48.3 62.0 52.0 60.2 51.3 60.2 49.2 Function Area III 62.2 45.2 60.5 46.8 62.9 50.8 62.0 49.2

Value of Code for 75 55 75 55 75 55 75 55 Construction Site GB 12523-90

Appendix B – Yingkou CHS Table B-1 Monitoring Locations for TSP and Noise

No. Monitoring Location Detail Position Remarks West of Crossing of Pingan Road and 1 Binhai Thermal Power Plant Boiler installation Jinniushan Da St. Pingan Rd. Hot water 2 Binhai Plant to Xinxing Da St. South Section Pipeline Pingan Rd. Hot water 3 Binhai Plant to Xinxing Da St. Middle Section Pipeline Pingan Rd. Hot water 4 Binhai Plant to Xinxing Da St. North Section Pipeline Bohai Da St. Hot water 5 Pingan Rd. to Xuefu Rd. East Section Pipeline Bohai Da St. Hot water 6 Pingan Rd. to Xuefu Rd. Middle Section Pipeline Bohai Da St. Hot water 7 Pingan Rd. to Xuefu Rd. West Section Pipeline Zhiquan St. 8 Binhai Plant to Binhai Rd. Steam Pipeline South Section Zhiquan St. 9 Binhai Plant to Binhai Rd. Steam Pipeline Middle Section Zhiquan St. 10 Binhai Plant to Binhai Rd. Steam Pipeline North Section

nd Heat Exchange 11 2 Construction Co. Hualian, Xinxing Station (HES) 12 Zhongtian Yipin Er yuan HES 13 Yijing International Bohai Da St., Xinhua Rd. HES 14 Zhiwen Yuan Xinhua Rd. Yucai Primary School HES 15 Zhongtian New Town Bingan Rd., Xinxing Da St. HES 16 Yujing Huating Jinniushan, Xinha Rd. HES 17 Ruihuayuan Qinghua Rd., Liaohe Da St. HES 18 Xiyuan Shifu Rd., Stadium HES 19 Qiwen Qinghua Rd., Jinniushan HES 20 Mashi Qinghua Rd., Yixian HES 21 Zhicheng Pingan Rd., Bohai Da St. HES 22 Education Commission Sisi Rd., Dangxiao HES

Appendix B – Yingkou CHS Table B-2 Monitoring Data for TSP Unit: mg/m3 Monitoring No. Location Monitoring Data Maximum Standard Date Binhai Thermal Jun 16 0.181 0.296 0.264 1 0.296 0.3 Power Plant Jun 17 0.260 0.285 0.158 Pingan Rd. Jun 21 0.230 0.196 0.388 2 0.388 0.3 South Section Jun 22 0.232 0.249 0.132 Pingan Rd. Jun 27 0.194 0.138 0.171 3 Middle Section 0.230 0.3 Jun 28 0.230 0.196 0.168 Pingan Rd. Jul 4 0.203 0.230 0.209 4 0.296 0.3 North Section Jul 5 0.181 0.296 0.264 Bohai Da St. Jul 12 0.177 0.219 0.266 5 East Section 0.266 0.3 Jul 13 0.239 0.190 0.236 Bohai Da St. Jul 20 0.189 0.216 0.224 6 0.266 0.3 Middle Section Jul 21 0.266 0.245 0.169 Bohai Da St. Jul 27 0.237 0.198 0.328 7 West Section 0.328 0.3 Jul 28 0.236 0.279 0.182 Zhiquan St. Aug 2 0.224 0.238 0.192 8 0.236 0.3 South Section Aug 3 0.236 0.176 0.169 Zhiquan St. Aug 8 0.233 0.218 0.249 9 Middle Section 0.249 0.3 Aug 9 0.182 0.226 0.246 Zhiquan St. Aug 14 0.172 0.291 0.256 10 0.291 0.3 North Section Aug 15 0.249 0.194 0.239 2nd Aug 24 0.181 0.239 0.272 11 Construction 0.272 0.3 Co. Aug 25 0.259 0.187 0.221

Aug 29 0.218 0.232 0.284 12 Zhongtian Yipin 0.284 0.3 Aug 30 0.271 0.183 0.237 Yijing Sep 4 0.242 0.283 0.179 13 International 0.283 0.3 Sep 5 0.263 0.167 0.194 Sep 8 0.263 0.261 0.273 14 Zhiwen Yuan 0.273 0.3 Sep 9 0.185 0.236 0.262 Zhongtian New Sep 13 0.233 0.227 0.334 15 Town 0.334 0.3 Sep 14 0.267 0.293 0.247 Sep 19 0.181 0.241 0.228 16 Yujing Huating 0.388 0.3 Sep 20 0.185 0.388 0.266

Monitoring No. Location Monitoring Data Maximum Standard Date Ruihuayuan Sep 24 0.240 0.155 0.247 17 0.247 0.3 Sep 25 0.233 0.187 0.237 Sep 27 0.244 0.151 0.197 18 Xiyuan 0.256 0.3 Sep 28 0.239 0.256 0.189 Qiwen Oct 8 0.241 0.189 0.237 19 0.271 0.3 Oct 9 0.236 0.254 0.271 Oct 11 0.237 0.252 0.261 20 Mashi 0.261 0.3 Oct 12 0.238 0.186 0.197 Zhicheng Oct 13 0.334 0.254 0.275 21 0.334 0.3 Oct 14 0.246 0.253 0.197 Education Oct 18 0.263 0.234 0.187 22 0.263 0.3 Commission Oct 19 0.248 0.229 0.253 Rate exceeding 7.6% standard

Appendix B – Yingkou Central Heating Project Table B-3 Monitoring Data for Noise Unit: dB (A) Monitoring No. Location Monitoring Data Maximum Date Binhai Thermal Power Jun 16 57.9 58.5 1 60 Plant Jun 17 59.1 59.3 Pingan Rd. Jun 21 65.3 64.1 2 70 South Section Jun 22 66.8 65.9 Pingan Rd. Jun 27 64.2 63.7 3 70 Middle Section Jun 28 63.9 65.3 Pingan Rd. Jul 4 65.4 65.8 4 70 North Section Jul 5 64.9 65.7 Bohai Da St. Jul 12 68.7 69.4 5 70 East Section Jul 13 69.8 68.9 Bohai Da St. Jul 20 68.6 69.1 6 70 Middle Section Jul 21 69.5 68.8 Bohai Da St. Jul 27 68.9 69.5 7 70 West Section Jul 28 69.7 69.3 Zhiquan St. Aug 2 64.7 66.4 8 70 South Section Aug 3 65.8 64.9 Zhiquan St. Aug 8 62.6 62.4 9 70 Middle Section Aug 9 62.8 62.3 Zhiquan St. Aug 14 63.5 64.1 10 70 North Section Aug 15 63.2 64.4 Aug 24 56.2 55.1 11 2nd Construction Co. 60 Aug 25 52.8 53.4 Aug 29 56.8 56.7 12 Zhongtian Yipin 60 Aug 30 58.6 59.2 Sep 4 58.2 58.0 13 Yijing International 60 Sep 5 57.7 57.4 Sep 8 56.4 56.1 14 Zhiwen Yuan 60 Sep 9 55.9 56.3 Sep 13 55.7 55.2 15 Zhongtian New Town 60 Sep 14 55.9 55.6 Sep 19 53.4 54.0 16 Yujing Huating 60 Sep 20 53.7 54.2 Sep 24 54.1 54.6 17 Ruihuayuan 60 Sep 25 54.3 54.5

Monitoring No. Location Monitoring Data Maximum Date Sep 27 53.5 53.9 18 Xiyuan 60 Sep 28 53.7 53.2 Oct 8 55.1 55.4 19 Qiwen 60 Oct 9 54.8 54.7 Oct 11 56.4 55.9 20 Mashi 60 Oct 12 56.1 55.8 Oct 13 54.5 53.9 21 Zhicheng 60 Oct 14 54.8 54.1 Oct 18 55.4 55.9 22 Education Commission 60 Oct 19 55.0 55.5