Guangxi Beibu Gulf Cities Development Project

Environmental Assessment Report (DRAFT)

Environmental Impact Assessment Project Number: 43023-01 December 2010

People’s Republic of China: Guangxi Beibu Gulf Cities Development Project

Prepared by the Government of the Guangxi Zhuang Autonomous Region for the Asian Development Bank

This environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website.

CURRENCY EQUIVALENTS (As of 1 July 2010)

Currency Unit – Yuan (CNY) CNY 1.00 = $ 0.1471 $ 1.00 = CNY 6.80

ABBREVIATIONS

ADB – Asian Development Bank ASEAN – Association of South-East Asian Nations BGEDZ – Beibu Gulf Economic Development Zone BMG – Beihai Municipal Government BOD – Biological Oxygen Demand CAST – Cyclic Activated Sludge Technology CEIA – Consolidated Environmental Impact Assessment COD – Chemical Oxygen Demand CNY – Chinese Yuan dB(A) – A-Weighted Decibel DI – Design Institute ASEAN – Association of South East Asian Nations EA – Executing Agency EEM – External Environmental Monitor EIA – Environmental Impact Assessment EIAI – EIA Institute EIS – Environmental Impact Statement EMP – Environmental Management Plan EMS – Environmental Monitoring Station EMU – Environmental Management Unit EPB – Environmental Protection Bureau EPD – Environmental Protection Department FMG – Fangchenggang Municipal Government FSR – Feasibility Study Report FYP – Five-Year Plan GDP – Gross Domestic Product GEPD – Guangxi Environmental Protection Department GHG – Greenhouse Gas GMS – Greater Mekong Subregion GPLG – Guangxi Project Leading Group GRO Grievance Redress Officer GZAR – Guangxi Zhuang Autonomous Region GZARG – Guangxi Zhuang Autonomous Region Government IA – Implementing Agency IEE – Initial Environmental Evaluation IEM – Internal Environmental Monitor LEI – Licensed Environmental Institute MEP – Ministry of Environmental Protection MIP – Maoling Industrial Park NO2 – Nitrogen Dioxide NR – Nature Reserve

OEE – Onsite Environmental Engineer PBGECA – Pan-Beibu Gulf Economic Cooperation Area PIC – Project Implementing Company PLG – Project Leading Group PM10 – Particular Matter smaller than 10 micrometers PMO – Project Management Office POC – Project Operating Company PPCC – Project Public Complaint Center PPRD – Pan-Pearl River Delta PPTA – Project Preparatory Technical Assistance PRC – People’s Republic of China QMG – Qinzhou Municipal Government QPEDA – Qinzhou Port Economic Development Area RP – Resettlement Plan SEA – Strategic Environmental Assessment SEPA – State Environmental Protection Administration SEPP – Soil Erosion Prevention Plan SO2 – Sulphur Dioxide SS – Suspended Solids TN – Total Nitrogen TP – Total Phosphorus TSP – Total Suspended Particulates WRB – Water Resource Bureau WWTP – Wastewater Treatment Plant

WEIGHTS AND MEASURES

‰ – per mill (per thousand) ha – hectare kg/d – kilogram per day km – Kilometer km2 – square kilometer m – meter m2 – square meter m3 – cubic meter m3/d – cubic meters per day m3/s – cubic meters per second mg/m3 – milligrams per cubic meter mm – millimeter mu – unit of land area equal to 1/15 ha or 667 m2

NOTE

In the report, “$” refers to US dollars.

Disclaimer: 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.

III

TABLE OF CONTENTS

CURRENCY EQUIVALENTS ABBREVIATIONS WEIGHTS AND MEASURES LIST OF TABLES LIST OF FIGURES Page A. EXECUTIVE SUMMARY 1 1. Project Rationale 1 2. Project Objective, Outcome and Outputs 1 3. Environmental Categorization and Environmental Due Diligence 2 4. Major Environmental Risks and Anticipated Impacts 3 5. Major Project Benefits 4 6. Public Consultation and Grievance Redress Mechanism 6 7. Conclusions 6

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 7 1. Legal Framework 7 2. Institutional Framework 8 3. Approval Authorities and EIA Institutes 9

C. DESCRIPTION OF THE PROJECT 11 1. Need for the Project 11 2. Special Features of the Project 12 3. Local Urban Master Plans 13 4. Project Components 14

D. DESCRIPTION OF THE ENVIRONMENT 27 1. Overview of Guangxi 27 2. Description of the Environment of Beihai City 27 3. Description of the Environment of Qinzhou City 32 4. Description of the Environment of Fangchenggang City 35 5. Assessment Boundaries and Applicable Standards 40 6. Justification of the Use of PRC Standards 42

E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 45 1. Incremental Environmental and Social Benefits 45 2. Scoping and Screening of Potential Impacts 47 3. Measures to Minimize Potential Adverse Impacts during Design Phase 47 4. Potential Environmental Impacts and Mitigation Measures during Construction 48 5. Potential Impacts and Mitigation Measures during Operation Phase 57

F. ANALYSIS OF ALTERNATIVES 100 1. Environmental Considerations 100 2. Alternatives Related to Roads and Related Facilities 100 3. Alternatives Specific to Individual Roads 105 4. Alternatives for Fangchenggang Maoling Wastewater Treatment Plant 111

G. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 114 1. Information Disclosure and Public Consultations to Date 114 2. Consultation Results 117 3. Future Information Disclosure and Public Consultation Program 117

H. GRIEVANCE REDRESS MECHANISM 119 1. Objectives of Grievance Redress Mechanism 119 2. Current Practice in the PRC 119 3. Grievance Redress Mechanism for the Project 119 4. Types of Grievances Expected and Eligibility Assessment 120 5. GRM Steps and Timeframe 120 6. Special Considerations for Wanheshan Nature Reserve 121

I. ENVIRONMENTAL MANAGEMENT PLAN 123 1. Objectives 123 2. Mitigation Measures 123 3. Organizational Structure for Environmental Management 123 4. Monitoring, Inspection and Reporting 125 5. Mechanism for Grievance Redress and for Feedback and Adjustment 126 6. Environmental Management Capacity in Three Project Cities 126

J. CONCLUSION 128 1. Project Benefits and Impacts 128 2. Main Risks and Environmental Safeguard Assurances 130 3. Overall Conclusion 134

APPENDIX 1: ENVIRONMENTAL MANAGEMENT PLAN APPENDIX 2: WANHESHAN HERON NATURE RESERVE APPENDIX 3: STRATEGIC ANALYSIS

LIST OF TABLES

Page Table B-1: Applicable Environmental Guidelines...... 7 Table B-2: Applicable Environmental Standards...... 8 Table B-3: EIA Institutes and Approval Authorities for Subprojects ...... 10 Table C-1: Major Engineering Parameters of Beihai Zhulin Road ...... 15 Table C-2: Major Engineering Parameters of Beihai Yingpan Road...... 17 Table C-3: Major Engineering Parameters of Qinzhou Xincheng Road Network...... 19 Table C-4: Major Engineering Parameters of Fangcheng-Jiangshan Road...... 21 Table C-5: Design Influent and Effluent Parameters for Maoling WWTP...... 23 Table C-6: Characteristics of Wastewater for Selected Factories in the MIP...... 23 Table C-7: Major Engineering Parameters of Maoling WWTP and Sewerage Network...... 24 Table D-1: Assessment Boundaries ...... 41 Table D-2: Emission and Discharge Standards Applicable to Project...... 41 Table D-3: Ambient Environmental Quality Standards...... 41 Table D-4: Comparison of PRC legislated standards with World Bank Group’s EHS guideline...... 43 Table E-1: Air Emission Limits for Diesel-Powered Non-Road Mobile Machinery ...... 48 Table E-2: Dust Generation from a 5-Ton Construction Truck...... 49 Table E-3: Dust Suppression by Water Spray ...... 49 Table E-4: Dust Suppression by Fences ...... 50 Table E-5: Wastewater and Solid Waste from Construction Camps and Activities...... 51 Table E-6: Noise Levels of Selected Construction Equipment...... 52 Table E-7: PRC Noise Limits for Construction Sites...... 52 Table E-8: Balances of Fill-and-Cut for Subprojects...... 53 Table E-9: Baseline Air Quality Monitoring Results for Beihai Zhulin Road ...... 58 Table E-10: Predicted CO and NO2 Concentrations for Beihai Zhulin Road...... 59 Table E-11: Baseline Noise Monitoring Results for Beihai Zhulin Road ...... 61 Table E-12: Predicted Noise Levels for Beihai Zhulin Road ...... 62 Table E-13: Distances for Meeting Noise Standards ...... 63 Table E-14: Noise Levels for Sensitive Receptors along Beihai Zhulin Road...... 63 Table E-15: Baseline Air Quality for Beihai Yingpan Road ...... 64 Table E-16: Predicted Daily Average CO and NO2 Concentrations along Yingpan Road...... 65 Table E-17: CO and NO2 at Sensitive Receptors for Beihai Yingpan Road...... 67 Table E-18: Baseline Noise Monitoring Results for Beihai Yingpan Road...... 67 Table E-19: Baseline Air Quality Monitoring Results for Qinzhou Xincheng Road...... 68 Table E-20: Predicted Daily Average CO and NO2 in Qinzhou Xincheng Road Network ...... 69 Table E-21: CO and NO2 at Sensitive Receptors for Qinzhou Xincheng Road Network...... 69 Table E-22: Baseline Acoustic Quality in Qinzhou Xincheng Urban Road Network Area ...... 70 Table E-23: Distances of Meeting Noise Standards for Qinzhou Xincheng Road Network...... 71 Table E-24: Baseline Air Quality Monitoring Results for Fangcheng-Jiangshan Road ...... 73 Table E-25: Air Quality at Representative Sites for Fangcheng-Jiangshan Road...... 73 Table E-26: Baseline Acoustic Monitoring for Fangcheng-Jiangshan Road ...... 74 Table E-27: Predicted Noise Levels at Distance from Road Centre ...... 75 Table E-28: Distances of Meeting Noise Standards for Fangcheng-Jiangshan Road ...... 75 Table E-29: NSRs and Mitigation Measures for Fangcheng-Jiangshan Road...... 76 Table E-30: NSRs and Mitigation Measures for Fangcheng-Jiangshan Road...... 79

Table E-31: Air Quality at Representative Sites for Maoling Wastewater Treatment Plant...... 81 Table E-32: Baseline Noise Level for Maoling WWTP...... 82 Table E-33: Noise Levels of WWTP Equipment ...... 82 Table E-34: Predicted Noise Levels at Border of Maoling WWTP ...... 82 Table E-35: Pollution Indices of Maolingjiang River...... 83 Table E-36: Pollution Indices of Maowei Bay...... 84 Table E-37: Water Quality of Receiving Rivers with Maoling WWTP...... 85 Table E-38: Water Quality of Maowei Bay with Maoling WWTP...... 85 Table E-39: Estimated Energy Savings and GHG Emission Reduction...... 87 Table E-40: Qinzhou Port Industrial Zone Emergency Response Plan ...... 90 Table E-41: Nature Reserves and Historical and Cultural Relics in Project Cities...... 93 Table E-42: Affected Physical Resources in Project Cities...... 95 Table F-1: Comparison of Asphalt and Concrete Pavements...... 102 Table F-2: Cost-Benefit Analysis of Public Utility Conduit for Qinzhou Road Component ...... 103 Table F-3: Comparison of Lighting Schemes for Yingpan Road...... 104 Table F-4: Comparative Analysis of Siting Alternatives for Qinzhou Xincheng Community...... 106 Table F-5: Alternatives Analysis of Fangcheng-Jiangshan Road...... 108 Table F-6: Noise Levels at NR Border for Different Design Alternatives for 2023...... 110 Table F-7: Reduced Pollution Loadings from Maoling WWTP...... 111 Table F-8: Comparative Analysis of Class 1B and Class 1A for Maoling WWTP ...... 112 Table G-1: Information Disclosure and Public Consultations during Project Preparation...... 115 Table G-2: Major Public Comments and Suggestions on Wanheshan NR and Feedback...... 118

VII

LIST OF FIGURES

Figure C-1: Location Map of Beihai Zhulin Road ...... 16 Figure C-2: Sample Cross-Sectional Profile of Beihai Zhulin Road ...... 16 Figure C-3: Location Map of Beihai Yingpan Road...... 18 Figure C-4: Sample Cross-Sectional Profile of Beihai Yingpan Road...... 18 Figure C-5: Cross-Sectional and Horizontal Profiles of Nankang Bridge (Right Half)...... 19 Figure C-6: Location Map of Qinzhou Xincheng Road Network...... 20 Figure C-7: Sample Cross-Sectional Profile of Qinzhou Xincheng Road Network...... 21 Figure C-8: Location Map of Fangcheng-Jiangshan Road ...... 22 Figure C-9: Sample Cross-Sectional Profile of Fangcheng-Jiangshan Road...... 22 Figure C-10: Layout Map of Maoling WWTP and Sewerage Network ...... 26 Figure C-11: Schematic Chart of Maoling Wastewater Treatment Process...... 26 Figure E-1: Location of Fangcheng-Jiangshan Road to Chashan Reservoir ...... 57 Figure E-2: Distribution of Daily Average CO along Beihai Zhulin Road for 2013 and 2025...... 60 Figure E-3: Distribution of Daily Average NO2 along Beihai Zhulin Road for 2013 and 2025 ...... 60 Figure E-4: Distribution of Daily Average CO along Beihai Yingpan Road for 2013 ...... 65 Figure E-5: Distribution of Daily Average NO2 along Beihai Yingpan Road for 2013...... 66 Figure E-6: Distribution of Daily Average CO along Beihai Yingpan Road for 2032 ...... 66 Figure E-7: Distribution of Daily Average NO2 along Beihai Yingpan Road for 2032...... 66 Figure E-8: Distribution of NO2 along Fangcheng-Jiangshan Road for 2027...... 73 Figure E-9: Opening and Closure between Road and NR ...... 77 Figure E-10: Two Openings between the Road and the NR...... 78 Figure E-11: DO Profile along Maolingjiang River and Maowei Bay...... 86 Figure E-12: Typical Cross-Section of Permeable Pavement...... 88 Figure E-13: Qinzhou Environmental Emergency Response Organizational Structure ...... 89 Figure E-14: Lane Separators for Beihai Yingpan Road...... 91 Figure E-15: Safety Islands and Crosswalks for Qinzhou Road Network ...... 92 Figure E-16: Barrier-Free Lane for Qinzhou Road Network...... 92 Figure F-1: Road Breaks (Left, Times/Year) and Reasons (Right) in Xiamen City ...... 103 Figure F-2: Beihai Yingpan Road Alignment and Nankang River Crossing ...... 105 Figure F-3: Class I Noise Standard Contour along NR (Without Project) for 2027 ...... 109 Figure F-4: Class I Noise Standard Contour at NR (Recommended Alternative 6) for 2027 ...... 109 Figure G-1: Community Information Poster ...... 115 Figure G-2: First and Second Internet Postings for Fangcheng-Jiangshan Road...... 116 Figure G-3: Consultations and Site Visits by PPTA Consultants and ADB Missions ...... 116

VIII

A. EXECUTIVE SUMMARY

1. This consolidated environmental impact assessment (CEIA) contains the results of the environmental assessment undertaken for the Guangxi Beibu Gulf Cities Development Project (the Project). It is prepared in accordance with the requirements of the Asian Development Bank (ADB) Safeguard Policy Statement (SPS 2009) on the basis of five domestic EIA reports that meet the requirements of the People’s Republic of China (PRC) EIA Law (2003) and associated regulations. The CEIA draws on project level Feasibility Study Reports, Soil Erosion Protection Plans (SEPP), Strategic EIAs, PPTA's social and economic assessments, and project policy dialogue discussions.

1. Project Rationale

2. Guangxi Zhuang Autonomous Region (GZARG) is one of the 12 less-developed provinces and autonomous regions under the PRC’s Western Development Strategy. GZARG is located in southwestern PRC and has its distinct advantage of providing the nearest sea port access for neighboring landlocked provinces of Guizhou, Yunnan, and Hunan as well as Sichuan and Chongqing farther in the west. Moreover, sharing a borderline of 1,020 kilometers (km) with Viet Nam and a shoreline of 1,595 km, GZARG has also been emerging as an important national multimodal transport and trade gateway to link southwest PRC with neighboring countries in the Greater Mekong Subregion (GMS) and Association of Southeast Asian Nations (ASEAN).

3. Lying in the southern part of the GZAR, Beihai, Qinzhou, and Fangchenggang that the Guangxi Beibu Gulf Cities Development Project targets are three major coastal cites at the heart of the Guangxi Beibu Gulf Economic Zone (GBGEZ). As a gateway to the GMS, ASEAN and Pan Beibu Gulf Economic Cooperation Area (PBGECA), the GBGEZ is expected to take a pivotal role for national economic and social development through strengthening the PRC– GMS–ASEAN sub-regional economic integration. Beihai, Qinzhou and Fangchenggang are facing tremendous development opportunities and challenges. Despite the recent increase in public investment, urban infrastructure and service provision cannot match the increasing urban infrastructure demand, thereby leading to (i) inefficient transportation capacities, (ii) degradation of urban environment, (iii) deterioration in the quality of life, (iv) lack of investments, and (v) unbalanced socioeconomic development. Obsolete utility facilities and inadequate urban infrastructure result in lack of coverage, poor service standards and frequent service failures. This is particularly true for urban road networks and urban environmental protection facilities. These infrastructure bottlenecks constrain the full participation of the cities in the subnational and subregional cooperation programs, prevent them from deriving the maximum benefits from these programs, and eventually impede the full realization of these programs.

2. Project Objective, Outcome and Outputs

4. The impact of the project will be the improved basic living conditions and socioeconomic development in 3 port cities (Beihai, Qinzhou, and Fangchenggang) to support PRC-ASEAN regional cooperation by 2018. The expected outcome will be improved urban infrastructure services and environment of 5 project areas in 3 project cities by 2015.

5. The project has 5 investment subprojects and 1 capacity development component, which will generate following outputs:

(i) Beihai Zhulin Road and Related Infrastructure. (i) 8.4 km of urban road, (ii) 2.5 km of storm water drainage ditch, (iii) street lighting and signage and (iv) landscaping ; (ii) Beihai Yingpan Road and Related Infrastructure. (i) 7.8 km of urban road, (ii) 650 m of bridge, (iii) 13.1 km of storm water drainage pipelines. (iv) water supply pipelines, (v) sewerage pipelines, (vi) street lighting and signage and (v) landscaping; (iii) Qinzhou Xincheng Urban Road Network and Related Infrastructure. (i) 12.2 km of urban road network, (ii) 21.1 km of sewerage pipelines, (iii) street light and signage, and (v) landscaping; (iv) Fangchenggang Maoling WWTP and Sewerage Network. (i) wastewater treatment plant with a capacity of 30,000 t/day, (ii) 24km of sewerage pipeline network, (iii) sludge treatment facility, and (v) related infrastructure; (v) Fangcheng-Jiangshan Road and Related Infrastructure. (i) 16.1 km of road rehabilitation and construction, (ii) storm water drainage ditch, (iii) traffic signage, and (iv) landscaping; (vi) Capacity Development. (i) technical support including training to provincial and municipal government and project implementation companies on effective and smooth project implementation, basic and advanced O&M methodology of project facilities, and urban land use and transport planning for emergency response, road safety and human-friendly district planning; and (ii) technical assistance on developing universal design guidelines for urban infrastructure and public facilities, in addition to strengthening capacity in urban infrastructure design and planning for future climate change impacts by developing appropriate engineering guidelines based on international and national best practices.

3. Environmental Categorization and Environmental Due Diligence

6. The project was classified as environmental category A for the purpose of environmental impact assessment under the ADB Safeguard Policy Statement (2009). A scoping exercise was carried out for the EIA of each individual subprojects at the beginning of the EIA process, through a number of techniques such as the Leopold matrix, site visits, community interviews and web posting, to identify the potential impacts, both positive and negative. According to the ADB criteria for the EIA categorization of projects1, wastewater treatment with its potential to pollute surface resources and representing a public health threat in case of malfunctioning is adjudged to require a Category A EIA. On the other hand, the PRC legislative provisions of the EIA of urban roads require the highest standard of EIA documentation (EIA Report) and lower level (EIA Table) for wastewater treatment. Thus, a combination of the two sets of guidelines required a high level of assessment for both sectors.

7. Domestic EIAs have been prepared for all subprojects by qualified local institutes in accordance with the PRC Law on Environmental Impact Assessment (2003) using methodologies and standards consistent with relevant guidelines established by the PRC Ministry of Environmental Protection (MEP). The domestic EIAs for all subprojects were reviewed and approved by the respective municipal environmental protection bureau (EPB). Given the environmental sensitivity of the Fangcheng-Jiangshan road subproject with the potential to impact a county-level heron nature reserve, the EIA for this component was reviewed by an expert panel (including specialists on migratory birds) and approved by the

1 ADB 2009, Safeguard Policy Statement, Asian Development Bank, Manila.

environmental protection department on provincial level. Soil erosion prevention plans (SEPPs) have also been prepared for the subprojects in accordance with the PRC Law on Soil Erosion Prevention Control (1991).

8. During project processing, multiple rounds of due diligence reviews have been carried out to assess the quality and completeness of the five domestic EIA reports against the ADB safeguard requirements. The due diligence reviews involved: (i) identification and analysis of alternatives to the project, including the without-project scenario; (ii) identification and comparison of project alternatives, including alternative routes, sites and designs; (iii) review of the academic literature, especially related to protection and conservation requirements for herons; and (iv) supplementary stakeholder consultations with key informants, local experts, and the local herons conservation society. The findings from the due diligence reviews have been incorporated into the domestic EIA studies and this CEIA.

9. The CEIA was prepared in accordance with the requirements of the Asian Development Bank (ADB) Safeguard Policy Statement (2009). The CEIA contains the relevant parts of the domestic EIAs, and draws on project level Feasibility Study Reports, PPTA's social and economic assessments, Strategic Environment Impact Assessments, Soil Erosion Prevention Plans, and project policy dialogue discussions. The report contains the following chapters: (i) executive summary; (ii) national policy, legal and administrative framework; (iii) description of the project; (iv) description of the environment; (vi) anticipated potential environmental impacts and mitigation measures; (v) analysis of alternatives, (vi) information disclosure, consultation and participation; (vii) grievance redress mechanism; (viii) environmental management plan; and (ix) conclusion. A detailed description of the environmental management plan (EMP) is presented in Appendix 1. The EMP entails a summary of the anticipated impacts and mitigation measures, environmental monitoring program, public consultation program, responsibilities for implementation and supervision, institutional strengthening and training plan, reporting and supervision, work plan, cost estimates for environmental management, and mechanism for feedback and adjustment. A special report on the county level Wanheshan nature reserve is provided in Appendix 2.

4. Major Environmental Risks and Anticipated Impacts

10. The identified major regular impacts during the construction and operation phases include permanent and temporary acquisition of land, population resettlement, borrow and spoil, air pollution, water pollution, noise pollution, impacts associated with solid waste disposal, protected and other sensitive areas, occupational and community safety and health.

11. Site-specific impacts and risks include the potential adverse effect of the Fangcheng- Jiangshan road on the county-level Wanheshan heron nature reserve and the Chashan reservoir as a water supply source for the Jiangshan town, the potential aquatic environmental impact and the risk of chemical spills associated with the 640-m Nankang bridge over the Nankang river as part of the Beihai Yingpan road, the potential cumulative impacts from the Qinzhou port industrial zone on the planned Xincheng community which the proposed Qinzhou Xincheng road network will serve, and the adverse environmental impact of the accidental discharge of the Maoling WWTP on the receiving water bodies.

12. Appropriate environmental mitigation and monitoring measures were defined for all identified risks and anticipated impacts, and are included in the environmental management plans of the domestic EIAs and the CEIA. The consolidated EMP is presented in Appendix 1 of this report. The EMP sets out the procedures and plans to carry out mitigation measures and

monitoring requirements during sequential stages of the Project (Pre-construction, Construction and Operational phases). It consists of two plans, one for implementing mitigation measures and the other for carrying out environmental monitoring. For each impact, appropriate mitigation measures are described. Internal, external and compliance monitoring and supervision will be undertaken to ensure that environmental impacts will be minimized to acceptable levels. The domestic EIAs and this CEIA conclude that all identified risks and anticipated impacts can be mitigated to acceptable levels if the measures defined in the EMPs are carefully implemented and monitored. The environmental mitigation measures will be incorporated in the biding documents and bill of quantities of the civil works contracts. International and domestic environment consultants will be recruited under the project management consultancy service to prepare and supervise the implementation of the environmental management plan, monitor the environmental and social impacts, and prepare related reports.

13. Local environmental protection bureaus will support the implementing agencies and project implementation companies in undertaking the environmental management plans. Capacity building in environmental management, a detailed training program for which has been developed in the environmental management plan, will be provided for the executing agency, implementing agencies, and project implementation companies, to ensure the borrower’s institutional capacity in managing environmental impacts and risks.

14. A major potential risk identified during the scoping and screening exercise relates to the impact of the Fangcheng-Jiangshan road on a county-level nature reserve which is home to ten species of herons, three of which are under state level or provincial level protection. The risks of the road on the heron nature reserve have been thoroughly examined. The redline of the proposed road upgrading has a direct distance of 86 m to the border of the nature reserve. A comprehensive mitigation measures package has been developed to protect the nature reserve from noise and light disturbance, including amongst others a 3km section of low-noise pavement along the nature reserve, planting of dense vegetation in two openings, the strict control of construction activities during migration and breeding season, erection of warning signs to prohibit horn blowing. A supervision committee will be created as an oversight group with advisory and supervisory authority. The committee will be chaired by a national heron specialist. The committee will monitor the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions. With the implementation of mitigation, protection and supervision measures, the impact on the nature reserve and the heron’s habitat is judged to be insignificant. In addition, an enhancement package was developed in close consultation with all relevant local stakeholders. The investment costs have been incorporated into the overall project investment budget. Enhancement measures will include reforestation within the nature reserve to improve the quality of the habitat and provide additional or replace damaged breeding sites; strengthened patrols to reduce poaching; improve the heron rescue and quarantine system to reduce death rates from diseases such as bird flu; community awareness and education programs; and policy and institutional strengthening including formulation of local policies, training of conservation officials, and scientific studies and investigations. The implementation of the enhancement package will be supported by an expert in migratory bird protection, hired under the project. An analysis of the Wanheshan heron nature reserve is presented in Appendix 2.

5. Major Project Benefits

15. The project will have substantial environmental and socioeconomic benefits. A total of 651.9 thousand people will directly benefit from the project, of which 33.77% of the total population are rural poor and 6.88% urban poor, and 48.5% females. The improved road

networks in the three project cities and the adoption of energy-efficient LED lights for the project roads will lead to energy savings, improve air quality, enhance connectivity for promotion of regional cooperation, and improve environmental quality. It is estimated that approximately 30.3 million liters of fuel can be saved for the first 20 years of operation of the road networks, as a result of the improved road conditions. The fuel savings, combined with LED lights, will result in the reduction of CO2 emission by 141,078 tons during the first 20 years of operation of project facilities, and the improvement of air quality in the project cities. The use of permeable pavement blocks, increased road elevation and improved drainage capacity will increase climate resilience. The improved road conditions will also help reduce traffic congestion and improve road safety.

16. The Maoling WWTP and associated sewerage network subproject will upgrade the sewerage coverage of the Maoling industrial park (MIP) and the town of Maoling to 100% and the treatment of the sewage and industrial wastewater from zero to 100%. The WWTP will reduce the COD discharge by 87% or 4,270.5 t/a, BOD by 92% or 2,518.5 t/a, NH3-N by 82% or 328.5 t/a, TP by 88% or 76.7 t/a and SS by 93% or 76.7 t/a, significantly contributing to improved water quality of the rivers and coastal waters and the sanitary conditions of Maoling town and the Maoling industrial park.

17. The improvements in urban sanitation, quality of the surface and coastal waters and air quality, and traffic safety are expected to enhance health for local residents, quality of marine products, regional integration and international trade, local investment environment and the overall socioeconomic development. Other tangible and immediate benefits will be the increased employment opportunities directly related to construction and operation. Most of the estimated more than 100,000 person-months of unskilled labor during project implementation will go to the local communities. Indirect employment from related services will generate additional local income during the construction period. In the operational stage, an estimated 2,500 permanent employment positions related to road maintenance, and additional indirect employment positions from increased tourists and economic expansion will be created in the region.

18. The project is consistent with ADB’s water policy 2 and will help the PRC achieve Millennium Development Goal 7, Target 7.C, which establishes the 2015 target of halving the proportion of people without sustainable access to safe drinking water and improved sanitation. It will contribute to the realization of the ADB strategy for the GMS with the vision to achieve enhanced connectivity, competitiveness and economic integration. The project is also consistent with ADB’s strategic objectives in the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability. By supporting the sustainable development in the three project cities, the project supports ADB’s long-term strategic framework (Strategy 2020) and PRC Country Partnership Strategy (2008-2010); it promotes efficient infrastructure, strengthens environmental management, and supports inclusive growth and balanced development to help the Government build a xiaokang (moderately well-off) society. An analysis of the project’s relation and contribution to regional, national and local development strategies is presented in Appendix 3.

19. The project serves as a valuable demonstration project to support basic urban infrastructure development in other cities in western provinces. Demonstrative features include the application of LED street lighting, public utility conduit in Qinzhou which is widely used in developed countries, rarely in the PRC and first time in Guangxi, and permeable paving blocks

2 ADB. 2001. Water for All: The Water Policy of ADB. Asian Development Bank, Manila, Philippines.

that will reduce surface runoff and peak flood and increase climate resilience. Furthermore, the project will support capacity development of barrier-free and universal design in urban infrastructure and public facilities to guide city districts to become more user-friendly particularly for elderly and vulnerable people. The project will also provide capacity development support for transport planning for industrial emergency response and urban road safety by effectively separating heavy industrial vehicles passing through residential areas.

6. Public Consultation and Grievance Redress Mechanism

20. For each subproject, key government stakeholders and environmental experts have been consulted throughout the national EIA process. Several rounds of consultation, including web-posting draft domestic EIAs, questionnaire surveys, neighborhood meetings, site visits and formal and informal discussions with local stakeholders were carried out for each subproject. The comments and suggestions received from the survey covered dust prevention control, traffic congestion management, odor prevention and control for the WWTP, noise and light reduction for a county-level heron nature reserve, proper implementation of mitigation measures and operational supervision by the local environmental protection bureau (EPB), and employment opportunities for local communities. The stakeholder comments and suggestions have been incorporated into the EIAs and CEIA.

21. Special consultations were conducted with the Fangcheng district forest bureau which has the administrative authority of the Wanheshan heron nature reserve, the Fangchenggang municipal environmental protection bureau (EPB) who has supervisory responsibility, local experts and local conservation society. The comments and suggestions from these key stakeholders included the use of noise reduction surface, noise and light barriers, scheduling of construction to non-breeding season and close ecological monitoring. Training programs for the GPMO, PICs and contractors will be carried out timely to ensure that all mitigation measures as defined in the EIA and EMP will be implemented.

22. A grievance redress mechanism (GRM) has been established to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits. A grievance officer has been appointed in the GPMO since the start of the PPTA. In consultation with the EA and the IAs, it is agreed that each PIC will establish a Project Public Complaints Center (PPCC) in each site office. Training will be provided to the GPMO, PPCC and contractors on the GRM.

7. Conclusions

23. The CEIA concludes that the project will have substantial socioeconomic and environmental benefits resulting from improvements in urban transportation and wastewater treatment. Conventional engineering designs with proven records of reliable performance will be adopted for the construction of roads and bridges and wastewater treatment plant, and for the installation of related municipal infrastructures along the roads. The feasibility was carefully examined against local conditions including future demand projections for road traffic and wastewater generation and concluded as adequate. Alternative analyses were also complemented to select the most appropriate options. The new infrastructure will be environmentally sound in its design, siting, construction and operation. Although adverse environmental impacts are anticipated during the construction and operation of the project, mitigation measures set out in the environmental management plan and closely scrutinized following the environmental monitoring plan are expected to fully mitigate these potential impacts.

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

1. Legal Framework

24. The environmental management system in the PRC consists of a well-defined hierarchy of regulatory, administrative and technical institutions. At the national level, the People’s Congress has the authority to proclaim national environmental laws; the State Council promulgate the national environmental regulations; and the Ministry of Environmental Protection (MEP) issue the environmental guidelines. The provincial and local governments can also issue provincial and local environmental regulations and guidelines in accordance with the national ones. In addition, the local ordinances, national and local environmental standards and national and local five-year environmental protection plans form an important part of the legal framework.

25. The major laws that established the PRC legal and administrative framework for environmental and natural resource management include, among others, the Environmental Protection Law (1989), Environmental Impact Assessment Law (2003), Water Law (2002), Water Pollution Prevention and Control Law (2008), Air Pollution Prevention and Control Law (2000), Solid Waste Pollution Prevention and Control Law (2005), Soil Erosion Control Law (1991), Marine Environment Protection Law (2000), Law of Protection of Wild Fauna (2004), Flood Prevention Law (1998), Fishery Law (1987) and Forest Law (1998), Land Administration Law (1999), Highway Law (1998), Energy Conservation Law (2008) and Urban and Rural Planning Law (2008). The major regulations pertaining to environmental impact assessment of this project entail the Regulation on Environmental Protection of Construction Projects (1998), Regulation on EIA of Plans and Programs (2009), Regulation on Protection of Terrestrial Wild Fauna (1992) and Regulation Nature Reserves (1994).

26. The implementation of the laws and regulations is supported to a series of management and technical guidelines. The major management and technical guidelines applicable to this project are provided in Table B-1.

Table B-1: Applicable Environmental Guidelines Guideline Code/Year Guideline on Jurisdictional Authorities for Approval of EIAs of Construction Projects 2009 Guideline on EIA Classification of Construction Projects 2008 Guideline on Environmental Information Disclosure (Trial) 2007 Interim Guideline on Public Participation in EIA 2006 Technical Guideline on EIA: Surface Water HJ/T 2.3-1993 Technical Guideline on EIA: Atmospheric Environment HJ 2.2-2008 Technical Guideline on EIA: Acoustic Environment HJ 2.4-2009 Technical Guideline on Ecological Assessment (Trial) HJ/T 192-2006 Guideline on EIA of Highway Projects JTGB 03-2006 Guideline on Design of Environmental Protection for Highways JTJ/T 006-1998

27. The environmental standard system that supports the implementation of the environmental protection laws and regulations in the PRC can be classified into two categories by function –– pollutant emission/discharge standards and ambient environmental quality standards. The pollutant emission/discharge standards and the ambient environmental standards applicable to this project are provided in Table B-2.

Table B-2: Applicable Environmental Standards Standard Code Comprehensive Standard on Emission of Air Pollutants GB 16297-1996 Standard on Emission of Odor Pollutants GB 14554-1993 Standard on Pollutant Discharges from Municipal Wastewater Treatment Plants GB 18918-2002 Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-Road GB 20891-2007 Mobile Machinery (I, II) Noise Limit for Construction Sites GB 12532-1990 Noise Limit for Industrial Enterprises GB 12348-2008 Ambient Air Quality Standard GB 3095-1996 Surface Water Quality Standard GB 3838-2002 Marine Water Quality Standard GB 3097-1997 Ambient Acoustic Quality Standard GB 3096-2008

28. In 2006, the State Council released the Directive on Implementing Scientific Perspective on Development and Strengthening Environmental Protection. The policy directive called for strengthening of: i) water pollution prevention and control, with emphasis on drinking water safety and pollution control for key national watersheds; ii) urban environmental protection, with emphasis on urban pollution prevention and control; iii) air pollution prevention and control, with emphasis on SO2 emission reduction; iv) rural environmental protection, with emphasis on soil contamination prevention and control; and v) ecological protection, with emphasis on promoting human-nature harmony. In line with the basic national policy of building a resource-efficient and environment-friendly society, the national 11th five-year plan (FYP) for environmental protection established a series of environmental protection targets, including reducing energy intensity (measured in energy consumption per unit of GDP) by 20% and total pollution loading by 10% and raising the rate of centralized urban sewage treatment by 70%.

2. Institutional Framework

29. In the PRC, the enforcement of environmental laws and regulations rests with the environmental protection authorities within each level of government. At the national level, the Ministry of Environmental Protection is the regulatory, enforcement and supervision authority. Each province has an environmental protection department (EPD). The environmental management authority at the municipal and county level is the environmental protection bureau (EPB). These authorities are supported by environmental monitoring centers and environmental protection research institutes.

30. There is a well-developed environmental monitoring network across the country. There is an environmental monitoring center each at the national, provincial and municipal level. The national and provincial environmental monitoring centers are responsible for, among other things, setting up and supervising the implementation of environmental monitoring standards and protocols, and compiling and publishing environmental quality statistics at the national and provincial level respectively. The regular monitoring of ambient environmental quality and the compliance monitoring of pollution sources rest with the municipal (prefecture) and county (or county-status city) environmental monitoring center/station. Moreover, five regional environmental inspection and supervision centers were set up across the country in 2008, with the responsibility to oversee environmental law enforcement, investigate serious pollution cases, and mediate cross-regional environmental disputes.

3. Approval Authorities and EIA Institutes

31. Article 16 of the PRC EIA Law (2003) stipulates that an Environmental Impact Statement (EIS) is required for any capital construction project producing significant environmental impacts, so as to provide a comprehensive assessment of these potential environmental impacts. On 2 September 2008, the MEP released the Guideline on EIA Classification for Construction Projects, which came into effect on 1 October 2008. According to this guideline, a project is classified into one of the following three categories. The EIS and TEIAR under PRC EIA regulations are similar to the CEIA and IEE, respectively, under the ADB Safeguard Policy Statement (2009). Under PRC EIA Law (2003), public consultations are not required for TEIARs and EIRFs.

(i) Category A: Projects with significant adverse environmental impact, an Environmental Impact Statement (EIS) is required. (ii) Category B: Projects with adverse environmental impacts which are of lesser degree and/or significance than those of Category A; a Tabular environmental Impact Assessment Report (TEIAR) is required. (iii) Category C: Projects unlikely to have adverse environmental impact; an Environmental Impact Registration Form (EIRF) is required.

32. The 2008 Guideline of Environmental Protection Categories of Construction Projects provides detailed classifications of EIAs into 23 general categories and further into 198 subcategories, on the basis of nature and scale of project and the environmental sensitivity of the project site. According to the guideline, the proposed urban road subprojects belong to the general category of “urban transport facilities” and the subcategory of “roads” for which an EIS is required. The Maoling wastewater treatment plant belongs to the general category of “urban infrastructures and real estate” and subcategory of combined “centralized industrial wastewater treatment plants” and “centralized sewage and industrial wastewater treatment plants” for which an EIS is required. In summary, an EIS is required for each subproject; and a total of five EISs were prepared under the domestic regulatory requirements.

33. In 2002, the State Environmental Protection Administration (SEPA, now the Ministry of Environmental Protection or MEP) proclaimed a ministerial guideline that provides for jurisdictional division of responsibilities for the review and approval of EIA reports. The guideline was amended in 2004 and 2009. According to the 2009 guideline, the review and approval of EIAs for construction projects requiring the approval, authorization or registration by authority under or granted by the State Council, or trans-provincial construction projects rests with the MEP 3 . Other types of construction projects are approved by the provincial or municipal environmental protection authorities in a similar fashion.

34. In 2004, the Ministry of Personnel (now Ministry of Human Resources and Social Security) and SEPA issued a joint interim guideline on professional qualification of the EIA engineer4. As of today, there are approximately 13,000 certified EIA engineers in the country. The PRC also has a qualification system for entities that prepare EIA reports5 . The 2005

3 Guideline on Jurisdictional Authorities for Approval of EIAs for Construction Projects, Ministry of Environmental Protection, Ministerial Order No. 5, 16 January 2009. 4 Interim Guideline on Professional Qualification of the EIA Engineer. Ministry of Personnel Document [2004] No. 13), 2004. 5 Management Guideline on Qualification of EIA Institutes. State Environmental Protection Administration, Ministerial Order No. 26, 2005.

guideline requires that an EIA institute can conduct EIAs only after it has been certified by the MEP by passing several qualification criteria. There are approximately 1,000 certified EIA institutes across the country, including about 200 that hold the class A certificate and 800 that hold the class B certificate6.

35. The EIA institutes and approval authorities for the subprojects are summarized in Table B-3. The Project Preparatory Technical Assistance (PPTA) consultants assisted the finalization of the domestic EIAs and the domestic feasibility study reports (FSRs). All domestic EIAs received approval by the respective approval authority.

Table B-3: EIA Institutes and Approval Authorities for Subprojects Subproject EIA Institute Approval Authority Fangchenggang City Fangcheng-Jiangshan Road and Associated Guangxi Institute of Guangxi Zhuang Autonomous Infrastructures Transportation Research Region EPD Maoling Wastewater Treatment Plant and Guangzhou Environmental Fangchenggang Municipal Sewerage Network Protection Institute EPB

Qinzhou City Qinzhou Port Xincheng Urban Road Network Fujian Gaoke Environmental Qinzhou Municipal EPB and Associated Infrastructures Protection Institute

Beihai City Zhulin Urban Road and Associated Zhejiang Environmental Beihai Municipal EPB Infrastructures Protection Institute Yingpan Urban Road and Associated Zhejiang Environmental Beihai Municipal EPB Infrastructures Protection Institute

6 An EIA institute with the Class A certificate can undertake all EIAs, whereas an EIA with the Class B certificate can undertake such EIAs that require review and approval at the provincial level or below.

C. DESCRIPTION OF THE PROJECT

1. Need for the Project

36. Lying in the southern part of the GZAR, Beihai, Qinzhou, and Fangchenggang that the Guangxi Beibu Gulf Cities Development Project targets are three major coastal cites at the heart of the Guangxi Beibu Gulf Economic Zone (GBGEZ). As a gateway to the GMS, ASEAN and PBGECA, the GBGEZ is expected to take a pivotal role for national economic and social development through strengthening the PRC–GMS–ASEAN sub-regional economic integration. The GBGEZ's key development thrusts aim to promote not only GZAR's economic and social development but to share its benefits with neighboring landlocked provinces of Guizhou, Yunnan, and Hunan as well as Sichuan and Chongqing further to the west. In spite of such potential, Beihai, Qinzhou, and Fangchenggang are less developed medium-sized cities and difficult to meet the requirements of their potential strategic roles in the sub-regional and sub- national programs. This is particularly true for urban road networks and urban environmental protection facilities for wastewater treatment. These infrastructure bottlenecks constrain the full participation of the cities in the sub-national and sub-regional cooperation programs, prevent them from deriving the maximum benefits from these programs, and eventually impede the full realization of these programs.

37. All components will support approved development master plans and sector programs. The project preparation and the EIA process have been guided by and have given full consideration to complementarity to the ADB strategy for the Greater Mekong Subregion (GMS), national and provincial strategies, local development plans, local urban master plans and the strategic environmental assessments that are relevant to the project. The relation and contribution of the project to the major strategies, development plans, urban master plans and strategic environmental assessments are summarized in Appendix 3.

38. The objectives of the proposed project are to build urban road and environmental infrastructures in Beihai, Qinzhou and Fangchenggang cities to improve the investment climate, accelerate international trade and commerce, and to ensure sustainable economic development through appropriate environmental management. The outcome of the project will be improved urban infrastructures and environmental management to meet urban expansion and development needs in three project cities. The project consists of five engineering subprojects, plus a capacity building component, as follows: (i) Beihai Zhulin road of 8.42 km; (ii) Beihai Yingpan road of 7.79 km; (iii) Qinzhou Xincheng road network of 12.21 km in 6 sections; (iv) Fangcheng-Jiangshan road of 16.13 km (upgrading); and (v) Maoling wastewater treatment plant with a treatment capacity of 30,000 m3/day and sewerage network with a length of 24 km for the Maoling industrial park. The project roads include a combination of such associated infrastructures as water supply pipeline, sewage pipeline, storm sewer, power and telecommunication cables, traffic lights, street lights and landscaping, which are project subcomponents. With self-financing, Maoling town will build a sewerage network of 2.7 km which will transmit the sewage in Maoling town to the WWTP. In ADB definition, this part of the sewerage network constitutes an “associated project”.

39. The Guangxi Zhuang Autonomous Region Government (GZARG) will serve as the executive agency (EA) for the Project. The Beihai, Qinzhou and Fangchenggang municipal governments will serve as the implementation agencies (IAs). The project implementing companies (PICs) are as follows: i) Beihai City Investment Company Ltd. for Beihai Zhulin road; ii) Beihai Lugang Company Ltd. for the Beihai Yingpan road; iii) Qinzhou Linhai Company Ltd. for the Beihai Xincheng road network; iv) Fangchenggang Dongwan Transport Company Ltd. for

the Fangcheng-Jiangshan road; and v) Maoling Industrial Park Management Committee Ltd. for the Maoling WWTP. The project is estimated to cost a total of approximately $392.49 million, of which $200 million will be financed by ADB loan and the rest from the budgets of the three project cities. The cost of implementing the EMP has been incorporated into the Project investment plan. The implementation of the Project will take five years from 2011 to 2015.

2. Special Features of the Project

40. Integrated Effects of Urban Infrastructures to Promote the Economic Development of Various Sectors. Due to the special geographical location of the three project cities, the urban infrastructure in the project will have an integrated effect to promote the urbanization and the fast development of various economic sectors. The Beihai component will play an important role to promote the development of industries, logistic services and tourism. The GZAR has set these sectors as the pillars of the economic growth. The Qinzhou component will direct provide services to the newly developed industries zone in the cities. This component will contribute significantly to the urbanization of the Qinzhou city, and will have a demonstrative effect for the similar coastal cities, where the harmonized development of new industrial zone and residential area is essential for rapid urbanization and industrialization. The Fangchenggang component links the industrial development, tourism to the Jiangshan peninsula, logistic services to the border cities.

41. Comprehensive Urban Services for the Three Core Cities of GBGEDZ and Demonstration Effect for Less-Developed Coastal Cities. The project will achieve a demonstration effect for other less developed coastal cities in Asia. The project, which is representative of other less developed coastal cities in PRC, will demonstrate how less- developed coastal cities can effectively and efficiently develop and manage urban infrastructure services that are necessary for them to achieve economically, socially, and environmentally sustainable urban sector development and promote greater economic integration with nearby metropolitan areas (i.e. PPRDECA).

42. Climate Mitigation and Resilience. The project will support ADB’s climate change initiatives such as encouraging the use of energy-efficient technologies to improve economic efficiency and environmental quality and enable sustainable development. The improvement in road conditions will reduce fuel consumption by 30.3 million liters, and the adoption of LED lights for the urban roads will reduce electricity consumption by 66.6 million kWh. The combined fuel and electricity savings will reduce GHG emission by 141,078 tons of CO2. Meanwhile, the adoption of permeable blocks for pedestrian lanes will reduce surface runoff and flooding and thus increase the climate resilience of the Project cities.

43. International Trade for Regional Integration. The road and environmental facilities built under the Project will facilitate efficient trans-shipment throughput at the logistics center, lowering handling costs and reducing trans-shipment delays for goods crossing the border. The Project thus will help accomplish the PRC national strategies on western development as well as regional cooperation and economic integration with GMS, ASEAN and Pan-Beibu Gulf countries. Moreover, the Beihai, Qinzhou and Fangchenggang ports which the Project roads will serve are the only marine gateway in southwestern PRC to the international market for landlocked neighboring provinces of Yunnan, Guizhou, Chongqing and Hunan.

44. Introduction of Public Utility Conduit in Qinzhou Xincheng Road Network. The public utility conduit has the advantage of minimizing urban land acquisition and reducing the cost and public annoyance of repeated opening the road surface for maintenance and repairs of

public utility pipelines for power, gas, water, sewage, heating and telecommunication. It is commonly used in developed countries, only in a few large cities in the PRC but not in Guangxi. The Project will thus have a demonstration effect for the use of public utility conduits in Guangxi and the rest of the PRC.

45. Universal Design for Urban Infrastructure and Public Facilities. The project will support capacity development of barrier-free and universal design in urban infrastructure and public facilities to guide city district becoming more friendly and conscious for elderly and vulnerable people.

46. Human-Centered Urban District and Transport Planning. The project will provide capacity development support for pursuing human-centered district and transport planning, including: (a) transport planning for industrial emergency response, (b) district land use planning to benefit local poor and migrate workers, and (c) road safety by considering functions of urban roads to effectively separate heavy industrial vehicles passing through residential areas.

3. Local Urban Master Plans

a) Beihai Urban Master Plan

47. The Beihai Urban Master Plan (BUMP) covers the timeframe of 2008 to 2025. The BUMP establishes the strategic direction of building Beihai into an “international tourist city” and an “port city” with priorities on high-and-new technologies and port-related industries, and making the city into an “international Beihai, coastal Beihai, tourist Beihai and liveable Beihai”, and a Beihai as an important node of the international cities network, a demonstration area for cooperation with ASEAN and for serving south-western, central and central-southern PRC. The city is divided into three urban districts, with the Haicheng district lying in the west, Yinhai district in the center and the Tieshan port district in the east against the coast. The urban development will be pursued in eight clusters, including the Zhulin cluster (where the proposed Zhulin road will serve as a major vertical artery transport corridor) and the Tieshan port west cluster (where the proposed Yingpan road will serve as the southern-most transport link between the Tieshan port industrial zone and the Yingpan town as its residential area). Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 40% or 9 m2 per capita by 2015 and 45% or 13 m2 per capita by 2025. The transport plan includes a well-covered public transit system. The BUMP has also established zoning restrictions on future urban expansion by dividing the urban area into four categories: i) already built-up area; ii) areas suitable for urban expansion; iii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; and iv) forbidden areas, where any urban development will not be allowed. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed Zhulin and Yingpan roads are located in the areas suitable for urban expansion.

b) Qinzhou Urban Master Plan

48. The Qinzhou Urban Master Plan (QUMP) covers the timeframe of 2008 to 2025. The QUMP establishes the strategic direction of building the city into an “open Qinzhou” (China- ASEAN-oriented international transport hub, logistics center and gateway for south-western PRC), “modern Qinzhou” (Beibu Gulf-oriented coastal industrial hub, modern port city with economic vitality and coordinated urban-rural development) and “unique Qinzhou” (a liveable

and commerce-friendly city with south-western culture, coastal landscape and south-east Asia culture). The city is divided into two urban districts: Qinnan district in the south and Port district in the north. The Xincheng area where the proposed Qinzhou Xincheng road network is located will be built into a full-serviced residential community with a population of 170,000 by 2025 for the workers of the entire Port district. Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Major pollution targets include centralized sewage treatment and sanitary garbage disposal of respectively 80% and 95% by 2012, 85% and 98% by 2020 and 90% and 100% by 2025. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 40% or 9 m2 per capita by 2012, 43% or 13 m2 per capita by 2020 and 45% or 14 m2 per capita by 2025. The transport plan includes a well-covered public transit system. The QUMP has also established zoning restrictions on future urban expansion by dividing the urban area into three categories: i) forbidden areas, where any urban development will not be allowed; ii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; and iii) areas suitable for urban expansion. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed road network is situated in the Xincheng area designated under the QUMP as suitable for residential development.

c) Fangchenggang Urban Master Plan

49. The Fangchenggang Urban Master Plan (FUMP) covers the timeframe of 2008 to 2025. The FUMP establishes the strategic direction of building Fangchenggang into an “important port city” as a marine gateway for south-western PRC; ii) coastal industrial base with iron and steel, power, grain and chemical as pillars; iii) “gateway city” linking south-western PRC with ASEAN; iv) “international coastal tourism resort”; and v) “central city for Guangxi Beibu Gulf Economic Zone”. The city is divided into major urban districts: Fangcheng district in the west and Gangkou (port) district in the east. The proposed Fangcheng-Jiangshan road is located in the Fangcheng district and the Maoling WWTP in the Gangkou district. Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Major pollution targets include centralized sewage treatment and sanitary garbage disposal of respectively 70% and 100% by 2015 and 90% and 100% by 2025. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 35% or 7.3 m2 per capita by 2015 and 45% or 8.4 m2 per capita by 2025. The FUMP has also established zoning restrictions on future urban expansion by dividing the urban area into three categories: i) forbidden areas, where any urban development will not be allowed; ii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; iii) areas suitable for urban expansion; and iv) already built-up areas. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed Fangcheng-Jiangshan road is located in the area designated as suitable for urban development. The Maoling WWTP is situated in the Maoling industrial park (classified as industrial use) as the northern annex of the Gangkou industrial district.

4. Project Components

50. The project consists of five engineering subprojects, including two in Fangchenggang, one in Qinzhou and two in Beihai, plus a capacity building component. Valued at $3 million from the loan proceeds, the capacity building component entails 52 person-months of international consultancy and 181 person-months of national consultancy for providing technical assistance and institutional strengthening in project management, financial management, procurement and

contract management, environmental and social safeguards, integrated urban transport planning and sustainable urban development. It will enhance the capacity of the three Project cities to undertake project implementation in compliance with ADB and PRC policy and regulatory requirements and to adopt international standards and best practices in integrated urban transport planning and sustainable urban development. The engineering subprojects are described in the following sections.

a) Beihai Zhulin Road and Related Facilities

51. The subproject is located in Yinhai district, Beihai city. The total length of road is 8,416 m and the width of the redlines is 60 m. The road is classified as urban artery class I, with a design speed of 60 km/h. At K0+450, there is a small bridge of 60 m in length over a drainage canal. Other related facilities include traffic lights, street lights and landscaping. The major engineering parameters of the subproject are provided in Table C-1.

Table C-1: Major Engineering Parameters of Beihai Zhulin Road Specification Unit Measurement 1 Road Length km 8.416 Redline m 60 Class Urban artery class I Design speed km/h 60 Pavement Concrete Lanes no. From Beihai-Tieshan highway to Guihua road, 4-lane; Guihua road to Zhulin salt farm, 6 motorized lanes and 2 non-motorized lanes and 2 pedestrian lanes Maximum slope % 1.9 Minimum slope % 0.3 Maximum vertical radius of m 15,000 curve Minimum vertical radius of m 3,000 curve Vegetation cover % 21.7 2 Drainage Ditch Ditch on both sides of road m 16,832 Source: Domestic feasibility study report, August 2010.

52. As a subdistrict of the Yinhai district, Zhulin area is located approximately 11 km east of the main city center, and 18 km to the Tieshangang (port) district. Situated to the south is the Beibu Gulf and about 9 km to the north is the Beihai Futian airport. The proposed road begins from the Beihai-Tieshan first class highway and ends at Zhulin salt farm. The alignment passes through two major administrative units: Fucheng Township in the north and Zhulin salt farm in the south along the coastline. There are no protected natural, cultural or historical areas within 500 m along the road alignment.

53. Fucheng Township covers an area of 293.8 km2 with 22 villages. The total population is approximately 80,000 with agricultural population accounting for approximately 79%. In addition to the Beihai airport, the Beihai-Tieshan class-I highway passes through the township and the Beihai-Qinzhou railway is 25 km away. The state-owned Zhulin salt farm occupies an area of 11.4 km2, of which 664 ha are for salt production and 200 ha as shrimp ponds. It has 1,390 employees and an annual production of approximately 30,000 t/y of sea salt. The farm is due to close soon owing to the national policy of phasing out salt farms with a capacity of below 100,000 t/y. A concept plan has been prepared to develop the Zhulin area into a mixed residential-commercial-tourism area, with the objectives of creating more space for urbanization,

creating more livelihood opportunities for the soon-to-be laid-off workers and their families, and revitalizing the economy of the Zhulin area. The proposed road is a vital part of the Beihai urbanization plan and areal development plan.

54. The location map is shown in Figure C-1. A selected cross-section profile of the road is shown in Figure C-2. The total borrow for the road construction is estimated at 676,000 m3. It will be taken on both sides along the alignment. The borrow sites will form the roadside drainage ditches. The cut and fill is balanced, and no spoil is necessitated.

Figure C-1: Location Map of Beihai Zhulin Road

Figure C-2: Sample Cross-Sectional Profile of Beihai Zhulin Road

b) Beihai Yingpan Road and Associated Infrastructures

55. The Beihai Yingpan road serves to connect the Tieshan port industrial zone and Yingpan town. The Tieshan port district is the most rapid and convenient access channel to sea and also an important transportation hub linking Guangxi and the southwestern inland provinces. The road length totals 7,770 m, with 6 lanes and a width of 70 m between the redlines. The associated infrastructures include drainage pipes, water supply pipes, sewerage pipes, traffic lights, street lights and landscaping. There is a 650-m long bridge over the Nankang river. The major engineering parameters of the subproject are provided in Table C-2.

Table C-2: Major Engineering Parameters of Beihai Yingpan Road Specification Unit Measurement 1 Road Length m 7,770 Redline m 70 Class Urban artery class I Design speed km/h 60 Pavement Concrete Lanes no. 6 motorized lanes, 2 non-motorized lanes and 2 pedestrian lanes Maximum slope % 2.49 Minimum slope % 0.3 Maximum vertical radius of curve m 12,000 Minimum vertical radius of curve m 3,000 Vegetation cover % 38.6 2 Bridge Type of bridge Fabricated partially pre-stressed concrete small box girder Length m 640 Design load Highway – class I Design speed km/h 60 Lane no. 6 Width m 33 Span (5 × 35 m) + (4 x 40 m) + (4 x 35 m) + (5 x 35 m) 3 Associated Infrastructures Drainage pipe D800~D1,600 x 13,123 m Water supply pipe D600 x 13,212 m Sewerage pipe D300~D400 x 4,457 m Source: Domestic feasibility study report, August 2010.

56. According to the Yingpan development plan (2010-2025), the development orientations will be: i) a national class-I fishery port, concentrated in the southern coast); ii) a modern tropical agricultural development demonstration area (northwest); and iii) a residential area for the Tieshan port industrial zone (north). The town population is forecasted to grow to 18,000 by 2015 and to 38,000 by 2025. The development plan has received approval and its implementation will start in 2010. The primary objectives of the proposed road are to serve as a link for the workers of the Tieshan port industrial zone to commute to their residences in Yingpan, as a route to transport goods from and to the Tieshan port industrial zone and as a part of the trans-Guangxi coastal expressway as a tourist and scenic road. There are no protected natural, cultural or historical areas within 500 m along the road alignment.

57. The location map is shown in Figure C-3. A selected cross-section profile of the road is shown in Figure C-4. The cross-sectional and horizontal profiles of the Nankang Bridge are shown in Figure C-5. The cut volume is estimated at 603,000 m3 and fill 536,000 m3, with the balance of 67,000 m2 as spoil to be disposed of to low-lying grounds in two places for temporary

storage and will be used for the ongoing land developments in the area. The approved temporary spoil disposal sites are indicated on the location map (Figure C-3).

Figure C-3: Location Map of Beihai Yingpan Road

Figure C-4: Sample Cross-Sectional Profile of Beihai Yingpan Road

Figure C-5: Cross-Sectional and Horizontal Profiles of Nankang Bridge (Right Half)

c) Qinzhou Xincheng Road Network and Associated Infrastructures

58. The ADB-financed roads are the second phase of the road network for the Xincheng district. The domestically financed first phase is now near completion. Xincheng is a new fully- serviced residential district with a purpose to serve the Qinzhou port industrial zone. The planned population for the Xincheng district is 170,000 by 2025. The ADB financed road network consists of six sections of urban artery class I road, with a total length of 12,208 m. The major engineering parameters of the Xincheng road network and associated infrastructures are provided in Table C-3.

Table C-3: Major Engineering Parameters of Qinzhou Xincheng Road Network Parameter Measurement Class Design Speed No. 1 Road Road 2,331-m long x 60-m wide Urban artery road 60 km/h North Storm sewer 5,580 m class II Sewerage 2,836 m Public utility conduit 2,331 m No. 2 Road Road 1,454-m long x 60-m wide Urban artery road 60 km/h North Storm sewer 3,870 m class II (Phase II) Sewerage 3,400 m Public utility conduit 1,454 m No. 3 Road Road 1,312 m long x 50 m wide Urban artery road 50 km/h North Storm sewer 3,140 m class II (Phase II) Sewerage 3,080 m Public utility conduit 1,312 m 1st Street Road 2,639 m long x 50-m wide Urban artery road 50 km/h Storm sewer 7,020 m class II Sewerage 6,520 m Public utility conduit 2,639 m 3rd Street Road 627-m long x 50-m wide Urban artery road 50 km/h (Phase II) Storm sewer 2,560 m class II Sewerage 1,410 m Public utility conduit 627 m Jingu Outer Ring Road 3,846-m long x 40-m wide Urban secondary road 40 km/h Road Storm sewer 11,120 m class II (Phase II) Sewerage 3,810 m Public utility conduit 3,846 m

Total Road 12,209-m long Street lights LED light every 35 m Landscaping 28.3% Public utility conduit 12,209 m Storm sewer 33,290 m Sewerage 21,056 m Source: Domestic feasibility study report, August 2010.

59. In 2009 Jingu (renamed Xincheng, or new city) was designated as a full-serviced residential area with a planned population of 170,000 or 2/3 of the people living in the port district. The proposed road network will enable the development of the Xincheng residential district, supporting the development of Qinzhou port industrial zone and of Qinzhou city as a whole.

60. The location and layout map is shown in Figure C-6. A sample cross-section profile is shown in Figure C-7. The estimated cut is 2.54 million m3, and the estimated borrow is 2.57 million m3. An additional 28,000 m3 of borrow will be needed to fulfill the gap. The borrow will be taken from the northwestern hill area, and the approved borrow sites are indicated in the location map (Figure C-6).

Figure C-6: Location Map of Qinzhou Xincheng Road Network

Figure C-7: Sample Cross-Sectional Profile of Qinzhou Xincheng Road Network

d) Fangchenggang Fangcheng-Jiangshan Road and Associated Infrastructures

61. The subproject involves the upgrading of the existing Fangcheng-Jiangshan road from class II with a road width of 8.5 m to class I with a road width of 26 m and design speed of 100 km/h. The road begins from the Shuiying village, Fangcheng district and ends at Shanjiao village, Jiangshan township by connecting with the Jiangshan-Dongxing highway, with a total length of the road is 16,131 m. The purposes of the road are to serve the planned development of the Jiangshan peninsula into a tourist area and to accommodate the increasing traffic from Fangcheng district to Dongxing city which borders Vietnam. The major engineering parameters are provided in Table C-4.

Table C-4: Major Engineering Parameters of Fangcheng-Jiangshan Road Parameter Unit Measurement Length m 16,131 Road class Class I Design speed km/h 100 Maximum slope ％ 4 Minimum length of slope m 250 Redline m 26 Width of motorized lane m 2-2×3.75 Medium-sized bridge m/no. 114/2 Small-sized bridge m/no. 78/3 Culvert no. 54 Underpass no. 14 Interchange no. 2 Intersections no. 3 Drainage ditch km 32 Source: Domestic feasibility study report, August 2010.

62. Highways in the project area include S312 (provincial) and X253 (county). S312 starts from Qinzhou and enters Fangchenggang city at Maoling. With a total length of 48 km, the X253 runs from Fangcheng to Dongxing city that borders Vietnam. The proposed subproject involves the upgrading of the starting section of X253 from Fangcheng to Jiangshan which now suffers from congestion and frequent accidents. The objectives of the road upgrading are to increase the connectivity between the urban center of the Fangcheng district and Jiangshan peninsula and between Fangcheng district and Dongxing city as a border trade town and the connectivity of the local communities along the alignment.

63. The location and layout map is shown in Figure C-8. A sample cross-sectional profile is shown in Figure C-9. The construction of the road will require 1.80 million m3 of fill and 1.53 million m3 of cut. Since the alignment is characterized by rolling hills, the hill cut will be used as fill for the adjacent gully sections. There are however two sections where 132,400 m3 will be borrowed (K2+850 and K16+100) and two sections where 364,900 m3 will be disposed (K9+550 and K13+950). The approved borrow and spoil sites are indicated in the location map (Figure C-8).

Figure C-8: Location Map of Fangcheng-Jiangshan Road

Figure C-9: Sample Cross-Sectional Profile of Fangcheng-Jiangshan Road

e) Fangchenggang Maoling Wastewater Treatment Plant

64. The proposed WWTP and sewerage network is intended to serve both the Maoling Industrial Park (MIP) and the town of Maoling. The MIP is situated in the eastern part of Fangcheng District, Fangchenggang City. The proposed subproject has a treatment capacity of 30,000 m3/d which is expected to accommodate the urban and industrial growth up to 2017. An expansion to 100,000 m3/d is planned to serve the urban and industrial expansion to 2025. The proposed sewerage network has 24 km of pipelines with diameters ranging from 400 mm to 1,200 mm, and a sewage pump station. The sewers will be built under the pedestrian path, with an average burying depth of 4 m. Since the roads in the MIP will be new construction, the sewerage network will be built simultaneously to avoid repeated re-opening of the roads and save costs. An additional 2.70 km of sewers will be constructed and financed by the Maoling town government with a total investment of CNY 1.50 million. The diameter will be between DN 300 and DN 600. The Maoling town government has provided a letter of commitment to build the sewers simultaneously with those in the MIP.

65. The design influent and effluent parameters for the WWTP are presented in Table C-5. The design influent parameters were determined on the basis of enterprise wastewater discharge monitoring data, the PRC Water Quality Standards for Wastewater Discharges into Urban Sewerage Networks (CJ 3082-1999) and the PRC Code for Design of Outdoor Wastewater Engineering (GB 50014-2006). The wastewater discharges and pollutant concentrations of selected enterprises are shown in Table C-6. Further verification of the design influent volume and quality parameters will be undertaken during the detailed design phase, including lab tests if deemed necessary. According to the Development Plan for the Guangxi Beibu Gulf Economic Zone (2006-2020), all WWTPs along the coast are required to meet the Class 1B of the PRC Pollutant Discharge Standards for Urban Wastewater Treatment Plants (GB 18918-2002). The major engineering parameters of the ADB-financed WWTP and sewerage network are provided in Table C-7.

Table C-5: Design Influent and Effluent Parameters for Maoling WWTP COD BOD NH3-N TP SS pH Influent (mg/l) 450 250 35 8 300 6-9 Effluent (mg/l) 60 20 8 1 20 6-9 Removal Rate 86.7% 92.0% 77.1% 87.5% 93.3% -- Note: Design effluent refers to GB 18918-2002, Class 1B. Source: Domestic feasibility study report, August 2010.

Table C-6: Characteristics of Wastewater for Selected Factories in the MIP Xingwang Soybean Residual

Hongyuan Pulp Huarun Cement Qihang Modified Processing Factory Factory Starch Factory Factory Wastewater vol (m3/a) 3,552,200 300 16,200 6,900 COD Influent 2,693 300 8,965 4,000 (mg/l) Effluent 411 100 ≦100 ≦100 BOD Influent 715 152 2,047 955 (mg/l) Effluent 145 25 ≦30 ≦30 SS Influent 400 155 1,000 450 (mg/l) Effluent 65 35 ≦50 55

NH3-N Influent 48 36 35 400 (mg/l) Effluent 11 10 10 ≦15

The above Industrial Lime neutralization parameters refer to wastewater: YTXX + settlement + sewage with the use Integrated pre-treatment + activated carbon for Treatment technology of septic tank; settlement + anaerobic filtration and industrial anaerobic + aerobic acidification + A/O; decolour + grease wastewater is Sewage: septic tank removal pond recycled Note: Influent refers to before pre-treatment; effluent refers to after pre-treatment. Source: Domestic feasibility study report and domestic EIA, August 2010.

Table C-7: Major Engineering Parameters of Maoling WWTP and Sewerage Network Wastewater Treatment Plant Specification Structure Unit Qty (m) 1 Coarse screen well 9.0 × 5.5 × 4.0 Steel bar-reinforced concrete no. 1 2 Sewage pump house 15.0 × 9.0 × (9.0+5.0) Framework no. 1 3 Fine screen 10.0 × 3.5 × 2.0 Steel bar-reinforced concrete no. 1 4 Rotational sedimentation × H = 3.5 × 3.7 Steel bar-reinforced concrete no. 2 pond 5 CAST reaction tank 50 × 15 × 5.5 Steel bar-reinforced concrete no. 6 6 Air blower house 15 × 8 × 4.5 Brick and concrete no. 1 7 Disinfection pool 10.0 × 2.0 × 2.5 Steel bar-reinforced concrete no. 1 8 Sludge storage pond 10.0 × 10.0 × 3.5 Steel bar-reinforced concrete no. 1 9 Emergency pond 50.0 × 50.0 × 6.5 Steel bar-reinforced concrete no. 1 10 Chemicals chamber and 20.0 × 15.0 × 4.5 Framework no. 1 sludge dewatering workshop 11 Warehouse and auxiliary 6.0 × 20.0 × 4.0 Framework no. 1 equipment workshop Sewerage Network Item Specification Material Unit Quantity 1 Sewer pipe DN500 Class II steel-reinforced concrete m 4,981 2 Sewer pipe DN600 Class II steel-reinforced concrete m 2,875 3 Sewer pipe DN800 Class II steel-reinforced concrete m 9,191 4 Sewer pipe DN1000 Class II steel-reinforced concrete m 5,161 5 Sewer pipe DN1200 Class II steel-reinforced concrete m 1,792 6 Inspection well ￠1000 Brick no. 140 7 Inspection well ￠1250 Brick no. 110 8 Inspection well ￠1500 Brick no. 60 Source: Domestic feasibility study report, August 2010.

66. The effluent from the Maoling WWTP will be discharged into the Maolingjiang River which empties into the Maowei Bay. The Maolingjiang River has been designated to meet the class III water quality of the PRC Surface Water Quality Standards (GB 3838-2002). The Maowei Bay has been designated to meet the class III water quality of the PRC Marine Water Quality Standards (GB 3097-1997). Because of tidal effect, the Xiaotaojiang river as a tributary of the Maolingjiang river is also affected. The Xiaotaojiang is used at present for irrigation only. The receiving section of the Maolingjiang River is its estuary which is not used for irrigation, residential or industrial water supply. But the irrigation intakes are located upstream the WWTP effluent outlet and thus there will be no major impact on the present or future beneficial uses of the river. Urban and industrial water supply for Maoling town and MIP is provided by the Maoling water supply company. The scattered villager households use groundwater. The project is located in water-abundant southern PRC where the yearly annual rainfall amounts to 2,800 mm, with the maximum being 3,800 mm and minimum being 2,200 mm. There is no other intended use except for irrigation for the Xiaotaojiang River. But the irrigation withdrawals are taken from upstream the tidal influence of the effluent outlet and thus there will be no major impact on the

present or future beneficial uses of the river. There are no protected nature and cultural and historical relics within the project area.

67. The cyclic activated sludge technology (CAST) is adopted. CAST is a combination of a biological selector and variable volume process reactor. The process operates with a single sludge in a single reactor basin to accomplish both biological treatment and solids-liquid separation. It is by design and operation a biological nutrient removal process, configured to function with filamentous sludge bulking control. A simple repeated sequence of aeration and non-aeration is used to provide aerobic, anoxic and anaerobic process conditions, which in combination with the aeration intensity, favor nitrification, denitrification and phosphorus removal. The WWTP will have a removal rate of 86.7% for COD, 92.0% for BOD, 77.1% for NH3-N, 87.5% for total phosphorus and 93.3% for SS. It will reduce the pollution loadings by 4,270.5 t/a for COD, 2,528.5 t/a for BOD, 328.5 t/a for NH3-N, 76.7 t/a for total phosphorus and 3,066.0 t/a for SS, significantly improving the local water environment.

68. The WWTP is estimated to produce 11.05 t/d of sludge with 80% water content which will require disposal. Four disposal options, including sanitary landfill, incineration, direct land application and composting were examined in terms of compliance with regulatory requirement, potential secondary environmental impacts and cost-effectiveness. The sanitary landfill option is chosen because of industrial influent, for low risk of secondary pollution and for low investment and operating costs. Policy dialogue was conducted with the MIP in regard to the disposal of sludge in the future and it is agreed that when phase II becomes operational and more sludge is generated, the wide options for beneficial use and sanitary disposal, including reuse as building material, landscaping, alternative fuel, incineration and sanitary landfill, will be fully explored in the feasibility study of the second phase.

69. The site layout map, also covering the Maoling town sewerage network, is provided in Figure C-10. The CAST treatment process is presented in Figure C-11. The construction requires cut of 35,000 m3 and fill of 10,000 m3. The remaining 25,000 m3 of earth will be used in the plant as landscaping soil.

Figure C-10: Layout Map of Maoling WWTP and Sewerage Network

Figure C-11: Schematic Chart of Maoling Wastewater Treatment Process

D. DESCRIPTION OF THE ENVIRONMENT

1. Overview of Guangxi

70. Guangxi is a mountainous region. The Nanling Mountains are found in the northeast border, with the Yuecheng Mountains and Haiyang Mountains being its shorter branching ridges. Nearer to the center of the region are the Dayao Mountains and the Daming Mountains. To the north there are the Duyao Mountains and the Fenghuang Mountains, while on the southeast border there are the Yunkai Mountains. The highest point is Mount Mao'er located in the Yuecheng Mountains, at 2,141 m. Many rivers cut valleys through the mountains. Most of these rivers form the tributary basin of the West River: Guangxi has a short coastline on the Gulf of Tonkin. Important seaports include Beihai, Qinzhou and Fangchenggang. Guangxi has a subtropical climate. Summers are generally long and hot. Average annual temperature is 170C to 23°C, while average annual precipitation is 1,250 to 1,750 mm. The Guangxi has a rich and diverse ecosystem partly due to the subtropical climatic conditions and topography. Over 6,000 plant species and a variety of wild animals exist.

2. Description of the Environment of Beihai City

i) Overview

71. Beihai is situated in the Southern part of the Guangxi Zhuang Autonomous Region (GZAR). Its geographical coordinates are east longitude of E 108°50~109°47 and N 20°26~21°55. The territory covers 3,337 km2, including urban area of 957 km2. It is adjacent to Nanning municipality in the north, Zhanjiang city in the east, Haikou city in the southeast and Hainan province in the south.

72. Its geography basically leans from the north to the south, and hilly mountains are located in the north-east and north-west, while the coastal mesa and plains are in the south. The topography is mainly dominated by mesa and plains which account for 70% of the territory.

73. Beihai is characterized by the tropical monsoon climate. The average annual temperate is 22.90C, average annual precipitation 1,670 mm. The major natural disaster is typhoon, with an average frequency of 6 in 10 years. The highest tide is 3.75 m (recorded in 21 July 1986) and the lowest 2.35 m (recorded in 25 March 1987). The once-in-50-year tide is calculated to be 3.73 m, and once-in-100-year tide 3.96 m. The tidal wave has a height of 0.3 ~ 0.6 m.

ii) Natural Resources

74. Beihai city is rich in mineral resources, and the known reserve volume of quartz sands mines is 30 million tons, containing more than 98% of silicon dioxide. The proven reserve of gypsum mines is 271 million tons, containing an average of 70.97% of annaline. The proven reserve of pottery clay is 189 million tons, which contains 24% to 32% of aluminum oxide and 52.5 % to 64.8% of silicon dioxide. The reserve of iserite is 1.26 million tons with 52% to 60% titanium dioxide.

75. The coastal line within Beihai starts from the Yinkuo bay in Lianjiang county of Guangdong province in the east to Dafengjiang port of Qinzhou city in the west, with a total length of 500 km. The coastal mudflat totals 48,670 ha. The 160,000-km2 Beibu Gulf fishing ground is home to more than 500 species of fish, 10 species of shrimps and a sustainable yield

of 700,000 t/a. Of the near-shore sea area of 150,890 ha, 140,000 ha can be put into aquaculture use.

76. The volume of surface water resources totals 34.97 billion m3. The total storage of reservoirs amounts to 2.15 billion m3. There are 93 rivers with a total length of 558 km, total catchment area of 2,324 km2 and total annual surface runoff of 9.19 billion m3. Beihai also has abundant ground water resources totaling 2 billion m3, with a possession of 3,300 m3 or 1.3 times of the national average.

77. Beihai has rich agricultural resources. With abundant sunshine and rainfall and fertile soils, Beihai produces many varieties of subtropical fruits and grain and economic crops including orange, longan, lychee, pineapple, mongo, banana, peanut, sugarcane and rice. The forested area totals 78,700 ha or a coverage of 29%. Beihai’s coastlines total 500 km, and coastal mudflats more than 500 km2 (including 250 km2 of sandy beaches) that are home to many marine species. Beihai has 115,000 ha of forests, with a forest cover of 29%. Protected natural areas include the Shankou national mangrove forest nature reserve (80 km2), Hepu national dugong nature reserve (350 km2), Guantouling national forest park (246 ha), Weizhou island national geological park (25 km2) and Weizhou island provincial birds nature reserve (26 km2).

78. Located at the subtropical region with adequate sunshine, plenty of rainfall and rich vegetation and characterized by beautiful scenery and comfortable climate, Beihai is one of the most favorable tourist destinations. Beihai was named the national key tourist city by the State Tourism Bureau in 1988. Yintan (or sliver beach, 22 km2) was one of the earliest 11 national tourist areas. During the year of 2009, the number of the tourists from both home and abroad reached CNY 8.16 million, or 17.38% higher than the year of 2008. While among the tourists, those from abroad reached 61,400 or 10.3% higher than that in 2008. And the total tourism income reached CNY 5.17 billion or 36.2% higher than that in 2008.

iii) Environmental Quality

79. Environmental monitoring data in 2009 showed that the ambient air quality and the acoustic quality were rated as excellent. The surface water quality was rated as good. Specifically, the air quality met class II of the national air quality standards, with the annual average concentration of total suspended particulates (TSP) being 0.15 mg/m3 compared to the 3 3 3 class II threshold of 0.20 mg/m , nitrogen dioxide (NO2) 0.025 mg/m (vs. 0.04 mg/m ), and 3 3 sulphur dioxide (SO2) 0.048 mg/m (vs. 0.06 mg/m ). The average urban noise level was 49.5 dB(A) compared to the corresponding thresholds for at day time 55 dB(A) and at night time 45 dB(A). More than 91.5% of the monitored sections met the applicable national surface water quality standards, but COD and DO concentrations in some locations violated the applicable standards in the low-flow season (see Chapter E for more details on baseline ambient air and water quality).

80. Marine environmental quality monitoring in 2008 showed that most of the marine environment in Guangxi was rated to be clean and moderately clean. The marine ecosystem is assessed to be healthy. The total area of mangrove distribution remains constant, and the communities stable. Although relatively high concentrations of inorganic nitrogen and petroleum are found in some coastal areas in Fangchenggang, Qinzhou and Beihai, the overall marine water quality is still rated as clean. Excessive concentrations of inorganic nitrogen are situated in coastal areas with concentrated aquaculture such as the Maowei Bay. Water quality in the port areas suffers from mild petroleum pollution. The continuous growth of land-based pollution

sources is causing increasing marine pollution. Of the monitored 26 wastewater outlets that directly discharge into the sea, 25 violate the wastewater discharge standards. About 7% of the coastal areas near wastewater discharge outlets (“pollution hotspots”) are below the class IV of the PRC Marine Water Quality Standard (GB 3097-1993); 14% belong to class IV; and 43% belong to class III.

iv) Socioeconomic Development

81. Beihai municipality administers one county (Hepu county) and three districts (Haicheng district, Yinhai district and Tieshan district), with total area of 3,337 km2 including urban area of 957 km2. Beihai municipality has a total population of approximately 1,577,200 (end of 2009). The agricultural population accounts for 1,110,400 (or 70.40% of the total population). While the non-agricultural population accounts for 466,800 (or 29.60% of the total population). According to Beihai city 2007 statistical yearbook, the city's urban population is 581,500, accounting for 36.8% of the total population. The main three ethnic minorities are Zhuang, Yao, and Miao.

82. In 2009, Beihai’s GDP reached CNY 33.5 billion, with an increase of 16% over 2008. The value added of the first, second and third industry are CNY 7.73 billion, CNY 13.52 billion and CNY 12.25 billion respectively, with increase of 5.3%, 22% and 14.6% respectively. The GDP growth rates of first, second and tertiary industries were 6%, 21% and 15% respectively. The GDP per capita is CNY 20,093 (equivalent to US$ 2,939). The per-capita annual disposable income for urban residents in 2009 was CNY 15,200, or an increase of 8.7%. The per-capita annual net income for farmers was CNY 4,740 or an increase of 10%. Average annual wage of workers is CNY 21,659, with increase of 18.22%. The newly added employees totaled at 30,700 persons, with increase of 2.55%.

v) Area of Influence of Zhulin Road

83. The Zhulin road subproject is situated in the Yinhai district. The 8,416-m-long road runs through Fucheng township and the Zhulin salt farm. The road starts from the Beihai-Tieshan highway. Extending from the start, present land uses in the Fucheng township are dominated by forests and mostly rain-fed farmland where sugarcane, sweet potato, peanut and corn crops are grown.

84. The second half of the road alignment passes through the state-owned Zhulin salt farm with a production capacity of approximately 35,000 t/a which will be closed soon due to a national policy to phase out salt farms under 100,000 t/a. Due to low profitability of salt farming, large tracts of the salt field are being converted into aquaculture ponds mainly for shrimp farming.

85. The Project area is primarily a Quaternary alluvial plain. The landform is flat which minimizes the volume of cut-and-fill, with an average elevation of between 8 and 29 m above the sea level. The soils are clay and sandy clay of 1 to 15 m in depth and with an excellent geological carrying capacity or 180~400 kPa. According to PRC Seismic Classification Standards (GB 18036-2001), the seismic peak acceleration factor for the Project area is 0.05 g or an equivalent of VI in basic seismic intensity. A destructive earthquake has never been reported in the area.

86. There are three villages along the alignment with the distance from 45 to 250 m. Field surveys have revealed that there are no nature reserves, protected animal and plant species, cultural or historical relics within the area of direct influence.

Road start (newly built Beihai-Tieshan Farmland (existing road will be upgraded) highway to left)

One of scattered villages Changchun village (road will pass right of village to avoid resettlement; note poor condition of exiting road)

Zhulin salt farm Shrimp pond newly converted from salt farm

vi) Area of Influence of Yingpan Road

87. The proposed 7,770-m-long Yingpan road starts from Yingpan town, extends to the east, crosses the Nankang river and finally connects with the Shihua road at the Tieshan port industrial zone. The Yingpan section of the road corridor is primarily farmland and forested land. Agricultural crops include sugarcane, sweet potato, peanut and corn.

88. The Tieshan port (or Tieshangang) district lies about 30 km from main urban center, covers 394 km2 and administers 3 townships (including Yingpan township), 36 villages and 4 neighborhood committees with a total population of about 160,000. At present, the Tieshan port has 11 berths of various sizes up to 150,000 tons, and more are planned. The Tieshan port district is the most rapid and convenient access channels to sea and also important transportation hub linking Guangxi and the southwestern inland provinces.

89. The proposed road ends at Yingpan town. The township covers an area of 99.8 km2 and administers 10 village committees and 2 neighborhood committees with a total population of 59,895, of which 95.5% or 57,112 are agricultural population, at the end of 2009. The net income for farmers for 2009 was CNY 4,025. To the north is the Beihai-Tieshan class I highway, and to the south is the Guangxi coastal highway.

90. The Nankang river separates the Yingpan from the Tieshan port industrial zone. It has a length of 31 km and a catchment area of 198 km2. The once-in-10-year flow is approximately 700 m3/s. The water quality meets the class III of the PRC Surface Water Quality Standards (GB 3838-2002). Biological survey has revealed that there are no protected aquatic species in the Nankang river or its estuary. Beyond the Nankang river, the land use along the road alignment is primarily industrial, as part of the Tieshan port industrial zone.

91. The landform along the whole alignment is dominantly flat which minimizes the volume of cut-and-fill. There are five villages along the alignment with the distance ranging from 50 to 200 m. Field surveys have revealed that there are no nature reserves, protected animal or plant species, cultural or historical relics within the area of direct influence.

Exiting road Landform along road alignment

Location of proposed Nankang bridge Existing tidal gate

3. Description of the Environment of Qinzhou City

i) Overview

92. Qinzhou is located in the central-southern shoreline of the Beibu Gulf in Guangxi Zhuang Autonomous Region (GZAR) between E 100°11~109°9 and N 21°35~22°28. The territory covers 10,728 km2. The city center is 110 km away from Nanning, 120 km away from Beihai, and 40 km away from Fangchenggang.

93. Located in the north are mountains, including the Liuwan Mt., Luoyang Mt. and Shiwandashan Mt., and the south faces the Beibu Gulf. The north and west are dominated by medium-height hills of 250 m in elevation. The central region consists of low-hills, depressions and alluvial plains. The east comprises low hills. The south is composed of relatively flat coastlines and alluvial plains, including the Qinjiang river delta.

94. The project site is situated in Jingu community. The topology is characterized by declining elevation from north (hills) to south (bay). The central area is mainly occupied by shrimp ponds, the northern area is mudflat. The western and northern parts consist of small hills with an average elevation between 25 m ~ 49 m, compared to an elevation of 7 m in the southern and central areas.

95. The project area is characterized by tropical monsoon climate with average annual precipitation at 1,765 mm. The average annual temperature is between 220C and 22.60C. The wet season overlaps with the hot summer months of June to September. The area is not prone to earthquakes, with the strongest ever recorded being 3.5 on the Richter scale. In accordance with the PRC Seismic Classification Standards (GB 18036-2001), the area has a peak seismic acceleration factor 0.05 g/s and design seismic intensity of VI.

ii) Natural Resources

96. Qinzhou is abundant in mineral resources such as pottery clay, plaster, kaolin, manganese, titanium, quartz sand, limestone and coal. The proven reserve of plaster is 313 million tons, pottery clay is 1.71 million tons, manganese is 3.03 million tons, titanium is 275 hundred tons, kaolin is 4.20 million tons, and lead-zinc is 1.15 million tons.

97. Qinzhou is home to 32 rivers with a catchment area greater than 100 km2, including Qinjiang, Maolingiang, Nanliujiang and Dafengjiang. The total catchment area totals more than 6,000 km2, average annual runoff of 5.01 billion m3, and average yearly water resource volume of 10.42 billion m3. There are some 4,450 water storage facilities with a total capacity of 812 million m3.

98. With abundant sunshine and rainfall and fertile soils, Qinzhou has more than 211,600 ha of cultivated land. Grown here are rice, corn, sweet potato, sugarcane, peanut, banana, pineapple and lychee, longan. The total length of coastlines is 520 km. The total area of intertidal mudflats amounts to 172 km2 (including 60 km2 of sandy beaches) that are home to hundreds of marine plants, fishes and animals. Qinzhou has 540,000 ha of forests, with a forest cover of 52%. Mangrove protection is a priority for Qinzhou. The well-known mangrove protection areas include the Qinzhou bay mangrove forest nature reserve and Maowei bay mangrove forest nature reserve.

99. Situated between mountains and sea, Qinzhou enjoys abundant tourism resources. Qinzhou is awarded by the State Tourism Bureau the title of excellent national tourism city. The Sanniang bay is the home of China white dolphin. Other tourist attractions include the Bazhaigou valley (adventure, summer resort, sightseeing, and recreation) and the Longmen islands (marine park). In 2009, Qinzhou received 3.02 million tourists and the tourism revenues amounted to CNY 1.2 billion or an increase of 56.2% and 48.8% respectively over 2008.

iii) Environmental Quality

100. Environmental monitoring data in 2009 showed that the air quality in Qinzhou city was rated as excellent; and the surface water quality and acoustic quality as good. Specifically, the air quality met the requirements of Class II of the national air quality standards, with the annual 3 average concentration of PM10 being 0.062 mg/m compared to the class II threshold of 0.10 3 3 3 mg/m , nitrogen dioxide (NO2) 0.012 mg/m (vs. 0.04 mg/m ), and sulphur dioxide (SO2) at 0.013 mg/m3 (vs. 0.06 mg/m3). The average urban noise level was 50.6 dB(A).

101. Most of the monitored sections water quality parameters met the applicable national surface water quality standards, but COD and DO concentrations in some locations violated the applicable standards in the low-flow season. The water quality of the Jingu river (within the project’s area of influence) meets the class III of the PRC Surface Water Quality Standards (GB 3838-2002). The marine water quality meets the class III of the PRC Marine Water Quality Standards (GB 3097-1997).

iv) Socioeconomic Development

102. Qinzhou municipality administers two counties (Lingshan and Pubei) and three districts (Qinnan district, Qinbei district and Qinzhou port economic development zone), with total area of 10,800 km2. It has a total registered population of approximately 3,711,900 (end of 2009), of which 35% or 1,299,170 are urban. The main three ethnic minorities are Zhuang, Yao, and Miao.

103. In 2009, Qinzhou’s GDP reached CNY 39.6 billion, with an increase of 15.3% over 2008. The value added of the first, second and third industry increased by 6.0%, 19.2% and 18.8% respectively. The GDP per capita is CNY 20,093 (equivalent to US$ 2,939). The per-capita annual disposable income for urban residents in 2009 was CNY 15,768, or an increase of 12.1%. The per-capita annual net income for farmers was CNY 4,843 or an increase of 9.3%. Average annual wage of workers is CNY 21,659, with increase of 18.22%. The newly added

employees totaled at 16,500 persons, and rural-urban labor transfer increased by 72,000 persons.

v) Area of Influence of Xincheng Road Network

104. The proposed road network is situated in the western part of the Qinzhou port. Consisting of 6 sections, the proposed road network has a total length of 12,208 m. To its west is the Jingu river; to its south is the phase I of the domestically-financed Xincheng road network which is near completion; to the east is an industrial area for logistics and light industries separated by the Dananping no. 4 road; and to the north are forested hills. The water quality of Jingu river meets the class III of the PRC Surface Water Quality Standards (GB 3838-2002). The Qinzhou bay lies approximately north of the proposed road network. The water quality of the bay index meets the class III of the PRC Marine Water Quality Standards (GB 3097-1997).

105. The landform along the whole alignment is dominantly flat which minimizes the volume of cut-and-fill. The area consists primarily of aquaculture ponds (mostly shrimp), scattered farm plots (mostly vegetables) and forest parcels. Within the 200-m road corridors there are eight small communities. Field surveys have revealed that there are no nature reserves, cultural or historical relics within the area of direct influence.

Shrimp ponds (note hills to north and northeast)

Dominant landforms (pond and hill) Existing road and settlement (background)

4. Description of the Environment of Fangchenggang City

i) Overview

106. Fangchenggang is located in the south of Guangxi Zhuang Autonomous Region (GZAR) between N 21°36~22°22 and E 107°28~108°36. The territory area totals 6,181 km2, including 42 km2 of built-up urban areas. It neighbors Qinzhou municipality in the east, Chongzuo municipality in the west, Nanning municipality in the northeast, Vietnam in southwest and the Beibu Gulf in the south.

107. The landscape is interwoven with mountains, plateaus and hills (78%), water surface (8%) and alluvial plains (14%). The north and south are primarily low-mountains and hills. The central part is dominated by mountains. The southeast is lined with coastal hills and mudflats. The Shiwandashan Mountain runs east to west through the territory.

108. Fangchenggang has the humid subtropical monsoon climate, with abundant sunshine and warm temperature. The yearly average temperature is 22oC; the yearly sunshine totals 1,500 hours; and yearly average precipitation is 2,823 mm. The wet season overlaps with the hot summer months of June to September. The area is affected by typhoon 2 to 3 times per years.

ii) Natural Resources

109. Important deposits in Fangchenggang include manganese, titanium, iron and granite. The proven reserve of manganese totals 750,000 tons, titanium 1,000,000 tons, iron 117,200 tons and granite 150 million m3. There are 45,310 ha of farmland, accounting for 7.3% of the total territory. Major agricultural crops include rice, corn, sweet potato, peanut, sugarcane, banana, pineapple and other tropical fruits. Forests account for more than 346,500 ha and forest cover stands at approximately 57%.

110. There are more than ten rivers flowing through the territory of Fangchenggang, with a total length of more than 400 km and the average annual runoff of more than 8 billion m3. Five major rivers drain into the Xiwan bay: Lizitan, Liyujiang, Dawangjiang, Chongsha (small stream) and Shitan (small stream) which are used primarily for irrigation purposes. The largest river is Lizitan, with a length of 13 km, average width of 40 m and average depth of 2 m. The Liyujiang River has a length of 3 km, average width of 2.5 m and average depth of 1.5 m. The Dawangjiang River has a length of 5.2 km, average width of 3 m and average depth of 2 m. The coastline in Fangchenggang totals 770 km and the area of coastal mudflats totals 35,000 ha. The water quality for most of the marine areas meets class I of the PRC Marine Water Quality Standards (GB 3097-1997). There are more than 500 marine fish species and more than 200 shrimp species.

111. There are four protected areas three of which are national-level (the Beilunhe estuary national mangrove nature reserve, Shiwandashan mountain national nature reserve and Fangcheng jinhua tea national nature reserve). Protected areas account for 71,100 ha or 11.4% of the territory.

112. The long history, multiple ethnic culture, beautiful landscape and the clean ocean make Fangchenggang one of the most favorite tourist destinations in Guangxi. Tourist arrivals in 2008

amounted to 2.27 million or an increase of 13.9% and tourism revenues CNY 960 million or an increase of 28.7% over 2007.

iii) Environmental Quality

113. According to the ambient environmental monitoring data in 2009, the overall environmental quality in Fangchenggang city was rated as excellent7. All the ambient air, water and noise parameters and noise level met the national ambient environmental standards. Specifically, the air quality met the requirements of class II of the national air quality standards, with the annual average concentration of total suspended particulate matter smaller than 10 3 3 micrometers (PM10) being 0.063 mg/m compared to the class II threshold of 0.10 mg/m , 3 3 3 nitrogen dioxide (NO2) 0.021 mg/m (vs. 0.04 mg/m ), and sulphur dioxide (SO2) at 0.019 mg/m (vs. 0.06 mg/m3). The average urban noise level was 49.6 dB(A). More than 93% of the monitored river sections, the water quality met the applicable national surface water quality standards, but COD and DO concentrations in some locations violated the applicable standards in the low-flow season. More details on baseline ambient environment quality is presented in chapter E.

iv) Socioeconomic Development

114. Fangchenggang municipality administers two urban districts (Gangkou and Fangcheng), one city (Dongxing) and one county (Shangsi). Fangchenggang municipality has a total registered population of approximately 869,200 at the end of 2009, including 385,800 of urban population (44.4%). Six ethnic minorities, including the Zhuang, Yao, Miao, Jing, Dong, Li, Yilao and Man account for 52% of the population.

115. In 2009, Fangchenggang’s GDP reached CNY 24.4 billion, with an increase of 22.6% over 2008. The value added of the first, second and third industry increased by 4.8%, 36.2% and 14.2% respectively. The per-capita annual disposable income for urban residents in 2009 was CNY 16,607, or an increase of 11.9%. The per-capita annual net income for farmers was CNY 4,330 or an increase of 8.1%. Average annual wage of workers is CNY 26,437, with increase of 7.4%. The newly added employees totaled at 2,400 persons.

v) Area of Influence of Fangcheng-Jiangshan Road

116. The proposed subproject involves the upgrading of the Fangcheng-Jiangshan road from class II with a width of 8.5 m to class I with a width of 26 m. The road extends from the Shuiying village, Fangcheng district to Shanjiao village, Jiangshan Township, with a total length of 16,131 m. The road alignment is dominated by low mountains and hills. The road runs across five small rivers, including Liyujiang, Dawanghe, Lizitan, Chongsha and Shitan. Within the area of direct influence, there are 23 villages and institutions.

117. The geological formations are dominated by sandstone, quartz sandstone and shale that originated from shallow coastal deposits of the Triassic system of the late Paleozoic-Mesozoic era. According to the PRC Seismic Classification Standards (GB 18036-2001), the area has a peak seismic acceleration factor of 0.05 g/s and design seismic intensity of level VI.

7 In the PRC, environmental quality is generally classified into five levels: excellent, good, mildly polluted, moderately polluted and heavily polluted.

118. The section of K0+000~K2+900 is characterized by forested small hills and small areas of dryland. K2+900~K5+600 is dominated by flat plains where rice, corn, banana and vegetables are grown. K5+600~K7+200 consists of forested low hills. K7+200~K9+900 passes through forested small hills on the right and flat plains on the left where paddies, dryland and shrimp ponds can be found. K9+900~K12+817 and K12+817~K16+131 (the only newly built section) are featured by forested small hills.

119. To the right side of K12+000 ~ K12+700 lies the Chashan reservoir. The reservoir has a catchment area of 1.13 km2, storage capacity of 2.11 million m3. It is classified as a small reservoir8. The primary functions are for irrigation and drinking water supply for Jiangshan town. The withdrawal outlet for the Jiangshan water treatment plant is 195 m on the right side of K12+700. There are two protection zones for the reservoir. The first-class protection zone is the water body itself. The second-class protection is the watershed. The shortest distance between the redline and the first class zone is 75 m; the shortest distance between the redline and the second-class zone is 45 m. The proposed alignment will expand towards the opposite direction of the reservoir. The existing road and proposed expansion is located downstream the reservoir. There are densely forested hills between the road and the reservoir. The location map of the existing road and proposed expansion in relation to the reservoir is provided in Figure E-1 in Chapter E.

120. At the right side of K3-900 ~ K4-900 there is a county-level heron nature reserve. The road alignment has the shortest distance of 86 m to the border of the nature reserve. The road upgrading will take place to the opposite side of the nature reserve. Details about the nature reserve can be found in Appendix 2. There are no protected physical cultural resources within the direct project area.

K0+000 (road start at Shuiying village) K16+131 (road end at Shanjiao village)

8 In PRC classification, a reservoir falls into one of the five classes: i) extra-large, with a storage capacity of greater than 1 billion m3; ii) large, with a storage capacity between 100 million and 1 billion m3; iii) medium, with a storage capacity between 10 million and 100 million m3; iv) small, with a storage capacity between 1 million and 10 million m3; and v) extra-small, with a storage capacity of small than 1 million m3.

K1+500 (farmland) K8+200 (forested hill)

K8+900 (paddies and shrimp pond) K12+100 (forested hills on both sides)

K8+120 (bridge over Liyujiang river) Roadside shops and house

vi) Area of Influence of Maoling Wastewater Treatment Plant

121. The proposed WWTP and sewerage network is intended to serve both the Maoling Industrial Park (MIP) and the town of Maoling. The MIP is situated in the eastern part of Fangcheng District, Fangchenggang City. The major industries in the MIP include pulp and paper, steel, cement, building materials and agricultural processing.

122. The area of influence of the Maoling WWTP covers the site of the WWTP, the Maoling Industrial Park (MIP), the receiving waters of the Maolingjiang River and the Maowei bay, as well as the Xiaotaojiang River under tidal influence. It also includes the Maoling town area where the domestically-financed sewerage network as an associated project will be built. Maoling town covers an area of 128 km2. It has 9 villages and the Maoling town with a total population of 23,500 in 5328 families at the end of 2009. The recommended site for the WWTP is situated in the northeastern part of the Maoling industrial park. It is mostly barren hills with unused flat land in between.

123. There are six small settlements within the direct influence area; one settlement with 6 households is located on the WWTP site requiring resettlement; and the other three small settlements have a distance between 130 m (upwind), 220 m (side wind) and 350 m (side upwind) respectively. The site is also close to factories with large wastewater volumes, which will save the cost of sewer construction. The land is easy to prepare, with a good balance of cut- and-fill. Field surveys have confirmed that there are no protected areas, protected species or cultural and historical relics within the direct influence area.

124. The project area is characterized by alluvial plains with low-mountains and hills. The geological formations include sandstone, siltstone and mudstone. The soils are primarily of brown-yellow and brown-red sandy clay. According to the PRC Seismic Classification Standards (GB 18306-2001), the project area has a peak seismic acceleration rate of 0.05 g/s, and design seismic intensity of VI.

125. The WWTP effluent will be discharged into the Maolingjiang River which flows approximately 2,500 m into the Maowei bay. The Maolingjiang River is the third largest waterway in southern Guangxi. It originates from Qinzhou, flows through Fangchenggang and empties itself to the Maowei bay. The Maolingjiang River has a flowrate of 16 m3/s for the dry season and an average flowrate of 49.5 m3/s; thus the dilution factor for the Maolingjiang River will be 46.08 for the minimum flow period and 142.55 for the average flow period. The Maowei bay is shared between Qinzhou and Fangchenggang. The bay has an area of 380 km2 and coastline of 366 km. The highest tide is 3.62 m and lowest -2.21 m. The average wave height is 0.3 ~ 0.6 m. Because of tidal effect, the WWTP will also affect the Xiaotaojiang River which is a tributary of the Maolingjiang River. During the dry season the Xiaotaojiang River has a flow rate of approximately 1 m3/s and the average annual flowrate is 3 m3/s.

126. Baseline water quality monitoring was conducted as part of the domestic EIA. The water quality of both the Maolingjiang and Xiaotaojiang rivers meet the class III of the PRC Surface Water Quality Standard (GB 3838-2002). The water quality of the Maowei bay meets the class III of the PRC Marine Water Quality Standards (GB 3097-1997). More details of the baseline water quality of Maolingjiang and Xiaotaojiang rivers and Maowei bay can be found in Chapter E. There are protected nature and cultural and historical relics within the area project area.

Site of WWTP Xiaotaojiang river

Maolingjiang river Lizui village (160 m NE of WWTP)

5. Assessment Boundaries and Applicable Standards

127. For the Beihai Zhulin and Yingpan roads, the assessment boundary is defined to include 200 m from the redline on both sides of the road. For the Qinzhou Xincheng road network, the assessment boundary covers the entire area where the roads are distributed. For the Fangchenggang Fangcheng-Jiangshan road, the assessment boundary includes 200 m from the redline on both sides of the road, the Wanheshan heron nature reserve and the Chashan reservoir. For the Maoling WWTP, the assessment boundary covers the area of 500 m from the boundaries of the plant, the Xiaotaojiang River, Maolingjiang River and the Maowei Bay to which the effluent will be discharged, as well as the area of coverage of the sewerage network in Maoling town.

128. The assessment boundaries for the subprojects are detailed in Table D-1. The emission and discharge standards that are applicable to all subprojects are provided in Table D-2. The applicable ambient environmental quality standards are provided in Table D-3. A comparison of the PRC legislated standards with the World Bank Group’s EHS Guidelines in presented in Chapter 6 and Table D-4.

Table D-1: Assessment Boundaries Subproject Assessment Boundary Beihai Zhulin Road 200 m from the redline on both sides of road Beihai Yingpan Road 200 m from the redline on both sides of road Qinzhou Xincheng Road Network Xincheng District Fangchenggang Fangcheng- 200 m from the redline on both sides of road; Chashan reservoir; Wanheshan Jiangshan Road heron nature reserve Fangchenggang Maoling WWTP 500 m from the border of the WWTP; Xiaotaojiang river; Maolingjiang river; Maowei bay, Maoling town Source: Domestic EIAs, August 2010.

Table D-2: Emission and Discharge Standards Applicable to Project Code Title Air emission GB 16297-1996 Comprehensive Air Pollutant Emission Standards (see Table D-4) Wastewater discharge GB 18918-2002 Effluent Discharge Standards for Urban Wastewater Treatment (For Maoling WWTP) Plants, Class 1B (see Table D-4) Wastewater discharge GB 3086-1999 Standards for Wastewater Discharged into Municipal (For all road subprojects) Sewerage Networks Noise GB 12523-1990 Noise Limits for Construction Sites Source: Domestic EIAs, August 2010.

Table D-3: Ambient Environmental Quality Standards Air Surface Water Marine Water Noise Subproject (GB 3095-1996) (GB 3838-2002) (GB 3097-1993) (GB 3096-2008) Beihai Zhulin Road Class II n/a Class I Class II Beihai Yingpan Road Class II Class II Class II Class I for road start to Qingshantou coastal dyke; Class II for Qingshantou coastal dyke to Qingshantou village; Class III for Qingshantou village to road end Qinzhou Xincheng Road Class II Class III Class III Class II and IVa Network Fangcheng-Jiangshan Class II except for Class III n/a Class II and IVa Road Wanheshan Heron except for NR where Class I Wanheshan Heron applies NR where Class I applies Maoling WWTP Class II Class III Class III Class III Note: a) GB 3095-1996, PRC Ambient Air Quality Standard; b) GB 3838-2002, PRC Surface Water Quality Standard; c) GB 3097-1993, PRC Marine Water Quality Standard; and c) GB 3096-2008, PRC Ambient Acoustic Quality Standard. Source: Domestic EIAs, August 2010.

6. Justification of the Use of PRC Standards

129. ADB’s Safeguard Policy Statement (2009) requires projects to apply pollution prevention and control technologies and practices consistent with international good practices as reflected in internationally recognized standards such as the World Bank Group’s Environmental, Health and Safety Guidelines. The project compared PRC legislated standards with the World Bank Group’s EHS guidelines, and concluded that the application of PRC legislated standards was justified. The justification is based on several observations:

130. The World Bank Group’s EHS guidelines partly suggest the use of internationally recognized standards in case of absence of national legislated standards. In this project, this clause applies to ambient air quality and ambient water quality standards: (i) The General EHS Guidelines on Air Emissions and Ambient Air Quality state that “Projects with significant sources of air emissions, and potential for significant impacts to ambient air quality, should [apply] national legislated standards, or in their absence, the current WHO Air Quality Guidelines or other internationally recognized sources”. Given the availability of national legislated standards, the application of other internationally recognized standards is not justified; (ii) The General EHS Guidelines on Air Emissions and Ambient Air Quality state that “Projects with significant sources of air emissions, and potential for significant impacts to ambient air quality, should prevent or minimize impacts by ensuring that emissions do not result in pollutant concentrations that reach or exceed relevant ambient quality guidelines and standards by applying national legislated standards, or in their absence, the current WHO Air Quality Guidelines or other internationally recognized sources”. Given the availability of national legislated standards, the application of other internationally recognized standards is not justified.

131. Some PRC standards are internationally accepted standards. The EHS Guidelines acknowledge the PRC standard GB 18918-2002 (Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant) as internationally acceptable standard. Its use in this project is thus justified.

132. Some PRC standards are more stringent than internationally accepted standards defined in the World Bank Group’s EHS Guidelines. PRC standards of relevance to the project include ambient CO and NO2 concentrations (see Table D-4).

133. PRC standards are not always comparable to standards suggested in the World Bank Group’s EHS Guidelines. Some ambient air quality standards, including NO2 and H2S, are defined for different time periods (exposures), and are thus not directly comparable (Table D-4). PRC ambient acoustic quality standards are defined for categories not directly attributable to the classification of the World Health Organization. As standard limits are not significantly different (e.g. noise levels), a shift to alternate classifications or time periods, which would require an adaptation of the monitoring procedures by nationally accredited monitoring stations, does not seem justified.

134. Some PRC standards are not defined in the World Bank Group’s EHS Guidelines. Internationally accepted standards for NH3 and TSP, which are defined in PRC ambient air quality standards, could not be identified. Other parameters which could not be compared to international standards include surface and marine water quality standards.

Table D-4: Comparison of PRC legislated standards applied in this project with World Bank Group’s EHS guideline Parameter PRC standards International standards Remarks Ambient Air Quality GB-3095-1996 WHO Air Quality Guidelines Global Update (2005); USEPA TSP 0.2 mg/m3 (Class I, 24h) WHO: No standard No comparison possible 0.3 mg/m3 (Class II, 24h) USEPA: No standard 0.5 mg/m3 (class III, 24h) CO 4.0 mg/m3 (Class I, 24h) WHO: No standard PRC standard is more 4.0 mg/m3 (Class II, 24h) USEPA: 10 mg/m3 stringent than USEPA 6.0 mg/m3 (Class III, 24h) NO2 0.08 mg/m3 (Class I, 24h) WHO: 0.04 mg/m3 (365d); PRC and WHO standards 0.08 mg/m3 (Class II, 24h) 0.20 mg/m3 (1h) are not compatible given 0.12 mg/m3 (Class III, 24h) USEPA: 0.14 mg/m3 (24h) the different time periods. PRC standard is more stringent than USEPA

PM10 0.05 mg/m3 (Class I, 24h) WHO: 0.05 mg/m3 (24h) PRC standards are 0.15 mg/m3 (Class II, 24h) USEPA: 0.15 mg/m3 (24h) comparable to EPA 0.25 mg/m3 (Class III, 24h) standard.

Pollutant Discharge GB-18918-2002 US-EPA Standards for Urban WWTPs NH3 (Samples taken at factory USEPA: No standard border, 4 times/day at 2 h interval, use the maximum): 1.0 mg/m3 (Class I) 1.5 mg/m3 (Class II) 4.0 mg/m3 (Class III)

H2S (Samples taken at factory CalEPA: 0.042mg/m3 (0.5h) The standards are not border, 4 times/day at 2 h USEPA: 0.002mg/m3 (365d) comparable as the interval, use the maximum): measurement methods 0.03 mg/m3 (Class I) (time and intervals) are 0.06 mg/m3 (Class II) different. 0.32 mg/m3 (Class III)

Ambient Acoustic GB-3096-2008 World Health Organization Quality Standard (1999) Leq (dBA) 45/55 (night/day, Class I) Class I: 45/55 (night/day) WHO Class I: Residential, 50/60 (night/day, Class II) Class II: 70/70 (night/day) institutional, educational 55/65 (night/day, Class III) WHO Class II: Industrial, 55/70 (night/day, Class IVa) commercial 60/70 (night/day, Class IVb)

Surface Water GB-3838-2002 No comparable standard Quality Standard identified/suggested in the COD 15 mg/l (Class II) EHS guideline 20 mg/l (Class III) 30 mg/l (Class IV) NH4-N 0.5 mg/l (Class II) 1.0 mg/l (Class III) 1.5 mg/l (Class IV) TP 0.1 mg/l (Class II) 0.2 mg/l (Class III) 0.3 mg/l (Class IV)

Marine Water GB-3097-1997 No comparable standard Quality Standard identified/suggested in the COD 2 mg/l (Class I) EHS guideline 3 mg/l (Class II) 4 mg/l (Class III) 5 mg/l (Class IV) Inorg. N 0.2 mg/l (Class I) 0.3 mg/l (Class II) 0.4 mg/l (Class III) 0.5 mg/l (Class IV) Active P 0.015 mg/l (Class I) 0.030 mg/l (Class II) 0.030 mg/l (Class III) 0.045 mg/l (Class IV)

Pollutant Discharge GB-18918-2002 GB-18918-2002 GB-18918-2002 is Standards for (Class 1B) (Class 1A) explicitly mentioned in the Urban WWTPs EHS Guideline as COD 50 mg/l 50 mg/l internationally accepted BOD5 20 mg/l 10 mg/l standard SS 20 mg/l 10 mg/l TN 20 mg/l 15 mg/l NH3-N 8 mg/l 5 mg/l TP 1 mg/l 0.5 mg/l Coliforms 10,000 1,000

Standards for CJ 3086-1999 German Law (Wasser- CJ 3086-1999 is Wastewater haushaltsgesetz, WHG) applicable to municipal Discharges into sewers that connect to Urban Sewerage urban wastewater Networks treatment plants. COD 500 mg/l - No comparable standard BOD5 300 mg/l - identified/suggested in the Total lead 1.0 mg/l 1.0 mg/l EHS guideline, German Total copper 2.0 mg/l 1.0 mg/l standards used for Total cadmium 0.1 mg/l 0.1 mg/l comparison. Ammonia nitrogen 35.0 mg/l 100.0 mg/l Sulfide 8.0 mg/l - SS 400 mg/l -

Borderline Noise GB 12348-2008 World Health Organization WHO Class I: Residential, Standards for (1999) institutional, educational Industrial WHO Class II: Industrial, Enterprises commercial Leq (dBA) 55/45 (day/night, Class I) Class I: 45/55 (night/day) 60/50 (day/night, Class II) Class II: 70/70 (night/day) 65/55 (day/night, Class III) 70/55 (day/night, Class IV)

Noise Limits for GB 12523-1990 USEPA Construction Sites Leq (dBA) 75/55 (Earth works, 85 (day, 8h exposure) day/night) 85 (Pile driving, day; banned for night) 70/55 (Structural works, day/night) 65/55 (Exterior and interior finishing works, day/night)

E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

1. Incremental Environmental and Social Benefits

135. Direct Project Beneficiaries. The Project will directly benefit more than 651,900 local residents in the three project cities (173,900 urban and 478,000 rural). Of the total direct beneficiary populations, approximately 48.5% are women, 33.77% are poor living under the rural poverty line of less than CNY 1,196 per capita per year and 6.88% living under the urban minimum living guarantee (MLG) at CNY 250 per capita per month, and 23.67% are ethnic minorities scattered in the three project cities of Beihai, Qinzhou and Fangchenggang.

136. Reduced Emissions. The improved road networks in the three project cities and the adoption of energy-efficient LED lights for the project roads will lead to energy savings, improve air quality, enhance connectivity for promotion of regional cooperation, and improve environmental quality. It is estimated that approximately 30.3 million liters of fuel can be saved for the first 20 years of operation of the road networks, as a result of the improved road conditions. The fuel savings, combined with LED lights, will result in the reduction of CO2 emission by 141,078 tons during the first 20 years of operation of project facilities, and the improvement of air quality in the project cities. More details on emission reductions are presented in section 5 vii) of this Chapter.

137. Reduced Water Pollution. The Maoling WWTP and associated sewerage network subproject will upgrade the sewerage coverage of the Maoling industrial park (MIP) and the town of Maoling to 100% and the treatment of the sewage and industrial wastewater from zero to 100%. The WWTP will reduce the COD discharge by 87% or 4,270.5 t/a, BOD by 92% or 2,518.5 t/a, NH3-N by 82% or 328.5 t/a, TP by 88% or 76.7 t/a and SS by 93% or 76.7 t/a, significantly contributing to improved water quality of the rivers and coastal waters and the sanitary conditions of Maoling town and the Maoling industrial park.

138. Improved Environmental and Public Health. The proposed WWTP and sewer network component in Fangchenggang city will reduce water pollution to the receiving water bodies, improve the water quality of surface water, improve the living environment of the local residents, and reduce water-borne diseases. All these will contribute to the improved living standards of the local residents. Benefits will be felt especially by the poor who are most vulnerable to get access to transport services and to environment-related diseases and poor urban environments. A public environment awareness raising program in parallel with the existing environment and health programs and close coordination with the environmental protection bureaus and health bureaus in Fangcheng district of Fangchenggang city will be carried out during the implementation of the Project. The improvements in urban sanitation, quality of the surface and coastal waters and air quality, and traffic safety are expected to enhance health for local residents, quality of marine products, regional integration and international trade, local investment environment and the overall socioeconomic development.

139. Social and Poverty Reduction Benefits. The project will improve mobility and access, and sanitation and public health and will enable sustained economic growth, industrial and tourism development, urbanization, and environmental improvement of project cities. A total of 651.9 thousand people will directly benefit from the project. The project will create 9,850 person- years of direct and 25,610 person-years of indirect employment opportunities during the project construction phase, with estimated earnings amounting to CNY 240.36 million or $35.35 million from direct employment and CNY 624.94 million or $91.9 million from indirect employment. It will generate 1,190 direct jobs and 3,090 indirect jobs during the project operation phase, with

estimated earnings of CNY 26.89 million or $3.95 from direct employment and CNY 69.83 million or $10.27 from indirect employment. The GZARG, BMG, QMG, and FMG have assured that employment priorities will be given to vulnerable groups including women, the poor, and ethnic minorities. To ensure the positive benefits of improved transport and water treatment, public programs in road safety and environmental awareness will be conducted by the BMG, QMG and FMG during the course of the project supported by consulting services. These programs will particularly address the needs and risks for women and children from increased transport demand and environmental degradation. Social actions under the project, GAP and EMDP will be supervised and monitored by a social development specialist.

140. Gender Benefits. The project is designed to be categorized as Effective Gender Mainstreaming (EGM). Results from the household survey and focus group discussions indicate that women are primarily responsible for household related traveling and socializing activities, water collection, wastewater disposal and management as well as cooking, washing, and taking care of the sick and old family members. Time spent on these activities means less time available for them for other priorities. The project will have significant benefits for women to reduce the energy, time, and effort spent by women on these activities, allowing them greater participation in income-generating activities, family entertainment or leisure. Women strongly support the project across all of the components, and they perceive that the project will improve their quality of life and create employment and income opportunities for them. A gender action plan (GAP) has been prepared. The GAP will help to ensure: (i) increased women’s participation in the project, including a target for at least 20% employment for women, ethnic minorities and poor; (ii) participation and gender sensitive trainings on public road safety and environmental awareness programs; (iii) participation in capacity building activities; and (iv) appropriate gender targets, indicators and sex-disaggregated data for project monitoring and evaluation. International and national resettlement and social development specialists with gender experiences will be provided under the capacity development component to ensure that social safeguards (resettlement) and GAP are implemented.

141. Demonstration Benefits. The project serves as a valuable demonstration project to support basic urban infrastructure development in other cities in western provinces. This is achieved through: (i) enhancing the synergy of environmental and transportation infrastructure; (ii) improving technical designs, such as integrating climate change adaptation measures of proper slope protection and erosion control for roads; (iii) enhancing the coordination and integration of infrastructure planning and management; and (iv) strengthening the administrative capacities of local agencies. Demonstrative features include the public utility conduit in Qinzhou which is widely used in developed countries, rarely in the PRC and first time in Guangxi, and permeable paving blocks that will reduce surface runoff and peak flood and increase climate resilience.

142. Capacity Building. The project’s capacity building initiatives will ensure the sustainable operations and viability of the new facilities, while facilitating operational and managerial improvements to existing infrastructure. Through organizational restructuring and the re- engineering of operations and maintenance, existing infrastructure services will improve. The improved technical designs will result in lowered pavement and network maintenance costs, enhancing the long-term sustainability of the road assets.

2. Scoping and Screening of Potential Impacts

143. A scoping exercise was carried out for the EIA of each individual subprojects at the beginning of the EIA process, through a number of techniques such as the Leopold matrix, site visits, community interviews and web posting9, to identify the potential impacts, both positive and negative. The identified potential impacts were then screened during the EIA process in order to: (i) identify the relative significance of potential impacts; (ii) establish the scope of the assessment which assists in focusing on major, critical, and specific impacts; and (iii) enable adaptability in regard to consideration of new issues associated with the local context and specific site and alignment.

144. The potential impacts and risks were identified during the scoping and screening exercise which drew heavily from information disclosures and consultations with key stakeholders ranging from the responsible and supervisory government agencies to members of the local communities. The identified major regular impacts during the construction and operation phases include permanent and temporary acquisition of land, population resettlement, borrow and spoil, air pollution, water pollution, noise pollution, impacts associated with solid waste disposal, protected and other sensitive areas, occupational and community safety and health. Site-specific impacts and risks include the potential adverse effect of the Fangcheng- Jiangshan road on the county-level Wanheshan heron nature reserve and the Chashan reservoir as a water supply source for the Jiangshan town, the potential aquatic environmental impact and the risk of chemical spills associated with the 640-m Nankang bridge over the Nankang river as part of the Beihai Yingpan road, the potential cumulative impacts from the Qinzhou port industrial zone on the planned Xincheng community which the proposed Qinzhou Xincheng road network will serve, and the adverse environmental impact of the accidental discharge of the Maoling WWTP on the receiving water bodies.

145. The scoping and screening exercise also led to the identification of positive impacts, including enhanced climate resilience through the use of permeable interlocking blocks for the pedestrian pavements of the project roads, reduced GHG reduction from the use of energy- efficient LED lights, and avoided frequent road breaks and resultant reduced environmental and socioeconomic impacts from the use of public utility conduit for the Qinzhou road network. It provided for the opportunity to focus on the critical environmental issues of concern, and on minimizing the potential adverse impacts and maximizing the potential positive impacts.

3. Measures to Minimize Potential Adverse Impacts during Design Phase

146. In the preparation of the domestic feasibility studies, domestic EIAs, soil erosion prevention plans (SEPPs) and this consolidated EIA and the resettlement plans, and during the ensuing preliminary design phase, the following mitigation measures have been and will be undertaken:

i) All the project sites were carefully selected to avoid or minimize potential adverse impacts on the environment and surrounding communities. ii) The facilities are located and designed to minimize resettlement impacts.

9 According to PRC regulatory requirement, an announcement shall be posted in the web page of the responsible or supervisory authority within one week of EIA initiation for the purpose of soliciting public comments on the project, the terms of reference for the EIA, and any potential issues of concern to the general public. All five subprojects have complied with this requirement. More detailed discussion on the public consultation activities for the project can be found in Chapter G (Information Disclosure, Consultation and Participation) of this CEIA.

iii) Adequate technical design and scheduling of construction activities for the components will provide for safety, sanitation, and environmental protection in compliance with national regulations and international practices. iv) Wide consultations with the key stakeholders and affected persons have been undertaken on the potential environmental and social impacts. Special consultations with the local conservation society, community members and experts were held with regard to the possible impacts of the Fangcheng-Jiangshan road on the Chashan reservoir and the county-level Wanheshan heron nature reserve. The comments and suggestions from the consultation activities have been incorporated into the project design. v) All components have undergone the EIA process under the PRC laws and regulations. The EIA documents were prepared by qualified EIA institutes, reviewed by expert panels, and approved by the responsible provincial and municipal environmental protection authorities. vi) Appropriate environmental mitigation and monitoring measures are included in the EMPs. The proposed environmental mitigation measures will form part of the design documents for the components, and be included in the contracts for procurement of goods and services. All contractors and subcontractors will be required to comply with the EMPs. vii) The environmental monitoring program has also incorporated into the overall project design to ensure that environmental impacts are closely monitored and the construction and operating activities are closely supervised against the approved EMPs.

4. Potential Environmental Impacts and Mitigation Measures during Construction

i) Air Emissions

147. Anticipated sources of air pollution from construction activities in all subproject sites include: (i) dust generated from earth excavation, loading, hauling, and unloading; (ii) dust generated by the movement of vehicles and heavy machinery on unpaved access and haul roads; (iii) dust from aggregate preparation, concrete-mixing, and haulage activities; (iv) odor from asphalt melting, mixing, and spreading; and (v) exhaust from vehicles and equipment.

148. Gaseous Air Pollution. The construction machinery will be regularly inspected to meet the PRC Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non- Road Mobile Machinery (GB 20891-2007), as provided in Table E-1.

Table E-1: Air Emission Limits for Diesel-Powered Non-Road Mobile Machinery Net Power (Pmax) CO HC NOx HC+NOx PM (kW) (g/kWh) (g/kWh) (g/kWh) (g/kWh) (g/kWh) 130 Pmax 560 3.5 1.0 6.0 -- 0.2 75 Pmax < 130 5.0 1.0 6.0 -- 0.3 37 Pmax < 75 5.0 1.3 7.0 -- 0.4 18 Pmax < 37 5.5 1.5 8.0 -- 0.8 8 Pmax < 18 6.6 -- -- 9.5 0.8 0 Pmax < 8 8.0 -- -- 10.5 1.0 Source: Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-Road Mobile Machinery (GB 20891-2007), Ministry of Environmental Protection and State Quality Supervision, Inspection and Quarantine Administration.

149. Dust. Construction activities, especially earth excavation and fill, material preparation and transportation, can produce dust. The blowing dust from construction sites usually consists of suspended particulates with diameters of < 5 m (8％), 5~20 m (24％), > 20 m (68％). Temporary earth piles are often a significant source of dust. The daily average TSP at 150 m downwind of the earth pile can reach 0.49 mg/m3 or 160% of the class II limit, under the following conditions: (i) with wind speed of 3 m/s; (ii) dry weather; and (iii) no environmental protection measures (e.g., water spraying). Another major sources of dust include earth loading and unloading, movement of vehicles in and out of the construction sites, earth leakage and littering from vehicles and the exposed surface of the construction site. It is estimated that in the area from 50~150 m from the construction site, the TSP exceeds the class II limit of the PRC ambient air quality standards, but will be able to meet the class II limit with a distance of 200~300 m from the site. Dust from the transportation vehicles at the construction site usually accounts for about 60% of the total. The empirical formula for completely dry weather is as follows:

   85.0  PWv  75.0 Q 123.0 ×=          5.08.65 

Where, Q = dust from transportation vehicle, kg/(km • vehicle); V = vehicle speed, km/h; W = load, t; P = dust on road surface, kg/m2.

150. For a 5-ton truck, the amounts of dust production under different speeds and road conditions are shown in Table E-2.

Table E-2: Dust Generation from a 5-Ton Construction Truck Dust Generation (kg/km•vehicle) Speed Under Different Road Surface Dust (kg/m2) (km/h) 0.1 kg/m2 0.2 kg/m2 0.3 kg/m2 0.4 kg/m2 0.5 kg/m2 5 0.0283 0.0476 0.0646 0.0801 0.0947 10 0.0566 0.0953 0.1291 0.1602 0.1894 15 0.0850 0.1429 0.1937 0.2403 0.2841 20 0.1133 0.1905 0.2583 0.2583 0.3788

151. The most effective measure to suppress dust is water spray. A daily spray of water for 4~5 times on the road surface can reduce dust by as much as 70%. The more detailed results of dust suppression by water spray are provided in Table E-3. As can be seen from the table, 4~5 sprays on a daily basis will reduce the pollution distance to 20~50 m. As is shown in Table E-4, dust suppression can also be achieved by sealing off the construction site by fences.

Table E-3: Dust Suppression by Water Spray Hourly Average Concentration of TSP (mg/m3) At Different Distance from Construction Site Water Spray 5 m 20 m 50 m 100 m 4~5 times/d 10.14 2.89 1.15 0.86 No 2.01 1.40 0.67 0.60 Source: Domestic EIAs, August 2010.

Table E-4: Dust Suppression by Fences TSP Concentration (mg/m3) Upwind At Different Downwind Distances Construction Site 20 m 50 m 100 m 150 m 200 m 250 m (Reference Point) Without fence 1.303 0.722 0.402 0.311 0.270 0.210 3 0.204 mg/m With fence (metal board) 0.824 0.426 0.235 0.221 0.215 0.206 Source: Domestic EIAs, August 2010.

152. A series of mitigation measures will be undertaken to limit dust generation during construction for the subprojects. Water trucks will be used to wet the construction roads, according to a daily schedule and taking into consideration weather conditions. When construction takes places during dry and windy days, water will be sprayed on earth piles and exposed surfaces to suppress dust. Aggregate preparation and storage areas and concrete- mixing plants will be located more than 300 m from the nearest residential area, downwind by the prevailing wind, while asphalt plants will be located more than 500 m downwind. Dust suppression equipment will be installed in concrete-batching plants. Proper maintenance of vehicles and diesel equipment, and avoidance of unnecessary running of vehicle and equipment engines will reduce emissions. Regular field inspections will be conducted by the contractor’s onsite engineer and by the environmental officer of the PIC. In case of violations or community complaints about dust and smoke pollution, the contractors will be ordered to take time-bound corrective actions.

ii) Wastewater and Solid Wastes

153. Construction Wastewater. Wastewater produced during construction will come from washing aggregates, pouring and curing concrete, and oil-containing wastewater from machinery maintenance and repairs. Measures for managing wastewater include settling ponds and oil-water separators. Recycled water will be used in spraying for dust control.

154. Construction Camp Wastewater. Wastewater during the construction phase will come from the construction camps which will be required for all subprojects. Each worker will produce approximately 120 liters per day of domestic wastewater. Septic tanks and temporary eco-toilets will be established to treat/contain the sewage from the construction camps. No construction camps will be necessary for the construction of the Maoling town sewerage network (project associated facility) since it is located in the urban center, but eco-toilets will be provided at the construction site.

155. Solid Waste. An average of 1 kg/d per worker of garbage will be produced from the construction camps. A covered garbage basin will be constructed at each construction camp. The garbage will be collected regularly and transported to the municipal landfill for sanitary disposal. The production of construction solid wastes (building demolition wastes and discarded packages and construction materials) will depend on the local conditions of the routes and sites. Reusable materials from building demolition (such as steel bars, window and door frames and bricks), discarded packages and other construction wastes will be collected and sold to local recycling stations. The non-recyclable wastes will be transported to the municipal landfills for sanitary disposal.

156. The estimated wastewater, garbage and construction solid waste for each subproject are presented in Table E-5.

Table E-5: Wastewater and Solid Waste from Construction Camps and Activities Wastewater Garbage Construction (m3/d) (kg/d) Solid Waste (t) Beihai Zhulin Road 10 80 120,000 Beihai Yingpan Road 10 80 100,000 Qinzhou Xincheng Road Network 15 100 100,000 Fangchenggang Fangcheng-Jiangshan Road 15 100 364,900 Fangchenggang Maoling WWTP 10 80 10,350 Note: Wastewater and garbage refer to those produced from construction camps. Construction solid waste includes building demolition and construction wastes. Source: Domestic EIAs, August 2010.

157. Hazardous and Polluting Materials. A construction material handling and disposal protocol that includes spill responses will be prepared and implemented as part of each site’s environmental supervision manual. The following measures will be taken to prevent pollution of soil and surface and groundwater: storage facilities for fuels, oil, and similar products will be within secured areas on impermeable surfaces, and provided with bunds and clean-up installations; vehicles and equipment will be properly staged in designated areas to prevent contamination of soil and surface water; vehicle, machinery, and equipment maintenance and refueling will be carried out so that spilled materials do not seep into the soil; oil traps will 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.

158. The contractors’ fuel suppliers will be properly licensed, follow proper protocol for transferring fuel, and be in compliance with PRC Guidelines on Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

159. Demolition Waste, Asbestos. The project will require the deconstruction/demolition of existing buildings (35,000m2). Presence of asbestos in these structures is not anticipated, but this will need to be confirmed prior to demolition. The most likely presence of asbestos is in corrugated asbestos-cement sheets or "A/C Sheets" used for roofing and for side walls. The centers for disposal of toxic and hazardous waste of Beihai, Fangchenggang and Qinzhou will conduct visual inspections to confirm absence or presence of asbestos. This requirement was defined in the loan covenants. If presence of asbestos is confirmed in some of the buildings, an asbestos management plan will be developed by a licensed institute. The plan shall (i) clearly identify the locations where asbestos containing material (ACM) is present; (ii) define the procedures for monitoring its condition; (iii) define procedures to access the locations where ACM is present to avoid damage; and (iv) identify training requirements of staff who can potentially come into contact with the material to avoid damage and prevent exposure. In case ACM presence is confirmed, the licensed institute with specially trained personnel will be in charge to remove and dispose existing ACM, and clearance monitoring will be performed and approved by construction bureaus before the affected building is demolished. The licensed demolition companies will be required to demonstrate having experience and capability to observe good practice standards with asbestos, including training of workers and supervisors, possession of (or means of access to) adequate equipment and supplies for the scope of envisioned works, and a record of compliance with regulations on previous work.

iii) Construction Noise

160. Noise Sources. The construction the roads and the WWTP and associated sewerage network will require a variety of equipment: (i) earth moving, including front-end loaders, back hoes, bull dozers, trucks, rollers, scrappers, graders and pavers; (ii) material handling, including concrete mixers, concrete pumps, cranes and derricks; (iii) power units, including compressors and generators; and (iv) impact equipment, including pile drivers, pneumatic breakers, pneumatic chippers and hydraulic breakers; and other equipment, such as poker vibrators, compressed air blowers and power saws and drills. They generate many differing types of noise such as background noise, idling noise, blast noise, impact noise, rotating noise, intermittent noise, howling, screeches and squeals. The noise levels of selected construction equipment are provided in Table E-6.

Table E-6: Noise Levels of Selected Construction Equipment Noise Level, dB(A), At Distance from Source Equipment 5 m 10 m 20 m 40 m 60 m 80 m 100 m 120 m 150 m 200 m 300 m Wheeled loader 90 84 78 72 68 66 64 62 61 58 54 Grader 90 84 78 72 68 66 64 62 61 58 54 Vibratory roller 86 80 74 68 64 62 60 58 57 54 51 Two-wheeled, double-vibrating roller 84 75 69 63 59 57 55 53 52 49 45 Three-wheeled roller 84 75 69 63 59 57 55 53 52 49 45 Pneumatic roller 76 70 64 58 54 52 50 48 47 44 40 Bulldozer 86 80 74 68 64 62 60 58 57 54 51 Hydraulic excavator 84 75 69 63 59 57 55 53 52 49 45 Generator (2 generating units) 98 78 72 66 62 60 58 56 54 52 49 Impact well driller 73 67 61 55 52 49 47 45 44 41 38 Agitator 82 76 70 64 61 58 56 55 53 50 47 Source: Domestic EIAs, August 2010.

161. Mitigation Measures. The project will adopt the following measures: (i) selection of quieter equipment; (ii) modifying existing old equipment; (iii) erection of sound barriers; (iv) regular maintenance; (v) noise perimeter zones; and (vi) work activity scheduling. If pile driver or equipment with noise levels over 90 dB(A) is used, the following noise reduction measures will be adopted: (i) temporary noise barriers, such as plywood or metal barriers, around the entire construction site; (ii) “quiet” pile-driving technology based on soils and structural requirements, as feasible; (iii) noise control at the receiver’s site; (iv) limiting hours to 8 am - 4 pm and excluding 12:00 pm - 2:00 pm or other mid-day hours near sensitive receptors. With these mitigation measures, the noise levels from the construction sites will be able to meet the PRC Noise Limits for Construction Sites (GB 12532-90), as is shown in Table E-7.

Table E-7: PRC Noise Limits for Construction Sites Limit, dB(A) Construction Phase Major Noise Sources Day-Time Night-Time Earth works Bulldozer, excavator, loader 75 55 Pile driving Various types of pile driving machines 85 Construction prohibited Structure Concrete mixer, vibrator, electric saw 70 55 Exterior and interior finishing Crane, hoist 65 55 Source: Noise Limits for Construction Sites (GB 12532-1990), Ministry of Environmental Protection and State Quality Supervision, Inspection and Quarantine Administration.

162. Sensitive Receptors. Special caution will be taken at construction sites that are close to such sensitive sites as schools, hospitals and office buildings whereby the construction activities will be scheduled to coincide with summer vacations, holidays and weekends. When construction activities are unavoidable during the school season, the use of heavy equipment

will be restricted to weekends and non-class hours. Special measures for the Wanheshan heron nature reserve are formulated and they are described in subsection ix) below.

163. Construction sites will be monitored by local environmental authorities or a contracted environmental monitoring agency. If noise limits are exceeded, equipment and construction conditions will be checked, and mitigation measures will be implemented to rectify the situation. Suitable measures will be taken to protect workers' hearings while operating heavy equipment according to the worker health protection law of the PRC.

iv) Soil Erosion

164. Earthwork, Soil Erosion. Runoff from construction sites is one of the largest sources of sediment in urban areas under development. Soil erosion removes over 90 percent of sediment by tonnage in urbanizing areas where most construction activities occur. If uncontrolled, eroded sediment from construction sites creates many problems, including adverse impacts on water quality, habitats, navigation and recreational activities. The balances of fill-and-cut for the subprojects are summarized in Table E-8.

165. A soil erosion prevention plan (SEPP), which contains, among other things, the borrow and soil sites, has been prepared for each subproject in accordance with the PRC regulatory requirements and approved by the respective municipal soil erosion control office10. The erosion control plans are prepared based on two main concepts: (i) disturb the smallest area of land possible for the shortest period of time, including the balance of borrows and spoils; and ii) stabilize disturbed soils to prevent erosion from occurring.

Table E-8: Balances of Fill-and-Cut for Subprojects Estimated Estimated Volume of Fill Volume of Cut Subproject (‘000 m3) (‘000 m3) Borrow or Spoil Sites Beihai Zhulin Road 676 676 Fill and cut are balanced without the need for spoil Beihai Yingpan 536 603 67,000 m3 of spoil will be disposed in low- Road lying grounds along the alignment Qinzhou Xincheng 2,544 2,572 28,000 m3 will be borrowed from hills west Road Network of the Xincheng district Fangchenggang 1,530 1,804 132,400 m3 of borrow will be taken from 2 Fangcheng- hills at K2+850 and K16+100; 364,900 m3 of Jiangshan Road spoil will be disposed of at 2 low-lying sites at K9+550 and K13+950 Fangchenggang 10 35 25,000 m3 of spoil will be used as Maoling WWTP landscaping material for the WWTP Maoling town 6 6.5 500 m3 of spoil will be used as landscaping sewerage network soil Source: Domestic EIAs, August 2010.

166. The SEPPs contain a combination of measures: (i) sediment basins, which are engineered impoundment structures that allow sediment to settle out of the runoff from the construction site. They will be installed prior to full-scale grading and remain in place until the disturbed portions of the drainage area are fully stabilized. They will be located at the low point

10 Soil Erosion Control Law of the People’s Republic of China, passed at the 20th Session of the Standing Committee of the People’s Congress on 29 June 1991; State Council Regulations on Implementation of the Soil Erosion Control Law, 1 August 1993.

of sites, away from construction traffic, where they will be able to trap sediment-laden runoff; (ii) sediment traps, which are small impoundments that allow sediment to settle out of runoff water. They will be installed in a drainage way or other point of discharge from a disturbed area. Temporary diversions will be used to direct runoff to the sediment trap; (iii) filter fabric fences, which will be used to filter out sediment as construction runoff flows through the fabric; (iv) straw bale barriers, which are composed of anchored straw bales that detain and filter construction runoff; (v) inlet protection, which consists of a barrier placed around a storm drain drop inlet, which traps sediment before it enters the storm sewer system; (vi) construction entrance, which is a pad of gravel over filter cloth located where traffic leaves a construction site. As vehicles drive over the gravel, mud, and sediment are collected from the vehicles' wheels and offsite transport of sediment is reduced; and (vii) vegetated filter strips, which are low-gradient vegetated areas that filter overland sheet flow. The implementation of the above protection measures will minimize the soil erosion to meet the national standards.

v) Impacts Associated with Bridge Construction

167. Potential Impacts. Most of the bridges to be constructed under the project are of small size and cross small streams. Special precaution will be taken to minimize the impact on the receiving streams. The major potential impacts from bridge construction include: i) soil erosion from earth works and siltation of the waterway; ii) pollution from the use of chemicals, such as solvents and paints; iii) pollution from leaks construction equipment and machinery such as hydraulic fluids, fuel and lubricants; and iv) disturbance to aquatic species and ecosystems such as occupation of breeding, spawning and feeding grounds.

168. Mitigation Measures include: i) minimize the removal of vegetation and area of exposed soils; ii) avoid construction activities during the rainy season and rainy days; iii) protect all bare soils (whether it is an abutment slope or an earth stockpile) before raining by the use of silt fences, fiber rolls, plastic sheeting, gravel bags and other proven sediment control practices to prevent soil and trash from getting into watercourses or storm drains; iv) re-vegetate the exposed surfaces as soon as construction is completed; v) avoid dripping and over spraying of paints; vi) store chemicals with containers and away from streams; vii) operate and maintain equipment and machinery properly to avoid leaks; and viii) clean up spills and leaks immediately.

169. Nankang River Bridge. There is a large bridge over the Nankang river as part of the Beihai Yingpan road. The bridge has a span of 640 m supported by 19 piers and a width of 33 m with 4 motorized lanes, 2 non-motorized lanes and 2 pedestrian lanes. Ecological surveys have been conducted and neither protected species were discovered 500 m above and below the bridge alignment nor are there breeding, spawning or feeding grounds. Since the style of the bridge is fabricated partially pre-stressed concrete small-box girder, all structures (including all beam and joints) except for the piers will be pre-fabricated off-site. Therefore the major impact- generating activities include pier construction (drilling and pouring) and assembly of the upper structures. The building of the bridge foundation will require drilling which will produce drilling fluids (water and clay) and sediment. The drilling sites will be sealed with steel fences. The small quantities of drilled spoil, consisting of silt and rocks will be reused for building the approaches and adjacent road sections. Care will be taken during concrete pouring to avoid drops and leaks. The assembly and finishing of the pre-fabricated top structures will use lubricants and paints. Special care will be taken to avoid drops, leaks and overuse. Construction equipment and machinery on the bridge site will be operated and maintained properly to avoid leaks of fuel and lubricants. With implementation of the above mitigation measures, the impact of bridge construction on the Nankang River will be minor. However, the bridge design is still preliminary. It is agreed that during the detailed design stage, more detailed environmental due

diligence will be undertaken. If necessary, additional environmental mitigation measures will be proposed and implemented.

vi) Occupational and Community Health and Safety

170. Occupational and Community Health for Road Construction. Health risks are primarily related to increased transit population during construction (construction workers) and operation (visitors) in the regions. The increased mobile population could potentially bring and spread infectious diseases in the project area. The un-hygienic and un-healthy life style of the workers could spread diseases such as hepatitis and HIV-AIDS to local residents as well as among themselves.

171. Proposed measures for protecting occupational and community health include the following: (i) training on disease prevention and control to construction workers, particularly epidemic diseases such as HIV, H1N1 and hepatitis B prior to start of the construction. Leaflets will be distributed, and education seminars will be organized, in association with the local government and communities, to increase the awareness and knowledge on the HIV/AIDS; (ii) brochures and posters in and around the construction sites for disease control, not only for construction workers but also villagers and others in the areas; (iii) adequate protective gear such as condoms will be provided to workers at the construction camps; and (iv) periodical health checks for construction workers to ensure their health and wellbeing.

172. Occupational and Community Safety for Road Construction. The safety risk is primarily in the construction phase with the local residents, particularly children who have low or no awareness of construction site safety and traffic safety. In a linear construction site there will be hardly full control of the site and the construction areas will be mostly open with no control from public access. Deep cuts and other excavation could also be a safety hazard at night. The explosion operation for deep cuts and materials borrowing and the resulting flying stones, as well as explosive handling, will be among the most dangerous activities on the construction sites which pose risks to residents. The explosive operation could also affect the safety and structure integrity of houses in a 500 m radius area through strong vibration of the explosion as well as damaging roof tiles and windows from flying stone from explosion.

173. Proposed measures to protect the occupational and community safety are as follows: (i) safe and convenient passages for the public; (ii) hardhats, earpiece, safety shoes, reflective garments and other personal protection equipment for construction workers; (iii) adequate warning signs in areas of potential dangers; (iv) traffic safety officers on or near heavy movement of construction vehicles, or heavy construction vehicle traffic through the villages; (v) regular training of construction workers on occupational health and safety; and (vi) safety outreach to schools and local residents. No blasting will be needed for the road construction except for the Fangcheng-Jiangshan road where small-scale blasting will be necessary in a number of places. The proposed safety measures on blasting are as follows: (i) transportation, storage, process, package on site, connect, blasting and the disposal of the blasting will be required to comply with the PRC Regulation on of Blasting Safety (GB 6722-1986); (ii) only trained and experienced workers will be allowed to undertake blasting operations; (iii) area with radius of 500 m will be sealed off to prevent all personnel, including workers, local residents and travelers from entering; and (iv) safety examination will be fulfilled after the blasting and any safety hazards will be removed before the site is open for traffic. There will be no tunnel along any of the roads.

174. All contractors shall be required to implement effective occupational health and safety measures for their workers within all construction sites, including efficient sanitation, adequate health services and protection clothing and equipment. The contractors’ performance and activities for occupational health and safety shall be incorporated in their monthly progress reports.

vii) Construction Impacts on Wanheshan Heron Nature Reserve

175. Potential Impacts. In view of the environmental sensitivities of the Wanheshan heron nature reserve (see Appendix 2 for a detailed description of the nature reserve), special measures have been proposed to minimize the impact of construction activities. The major potential impacts of construction activities on the NR include noise and light disturbances, air pollution and water pollution.

176. The special mitigation measures include the following: (i) erect noise barriers in the two openings; (ii) prohibit construction activities or use of noise-intensive machinery during the migration season (end of March to end of April; mid-September to end of October), breeding season (early April to end of June) and the time periods of the day of leaving and returning to the nests (04:30-05:40 and 16:00-19:00); (iii) prohibit construction activities during the night; (iv) use dust-suppression measures such as spraying of exposed surface and avoiding dry and wind days; (v) use low-air-emission and low-noise construction machinery; (vi) avoid water pollution from construction spoils and oil leakage; (vii) locate construction camps at least two kilometers away from the NR to avoid water and land pollution; (viii) minimize occupation of farmland and wetlands; (ix) maximize the use of spoils; (x) erect warning signs to prohibit horn blowing and garbage throwing from diverted traffic; and (xi) awareness building and training of construction workers.

177. Moreover, the construction contractor will be required to have an on-site environmental manager to supervise the implementation of the mitigation measures. An advisory and supervisory committee will be established prior to commencement of project implementation. The committee will be led by a local heron expert, head of the local heron conservation society, environmental safeguard specialist of the loan implementation consultancy, and an officer of the GPMO. The internal and external environmental monitors and the committee will conduct regular inspection of the site during the construction period. During the site inspections, local residents will be consulted for views and suggestions with respect to impacts on the NR and mitigation measures. If and when undue impacts occur, contractors will be required to halt construction until corrective actions are satisfactorily implemented. The investments for the protection, monitoring and supervision measures are estimated (Table E-30) and incorporated into the overall project investment plan.

viii) Chashan Reservoir

178. The Chashan reservoir is located to the north of the Fangcheng-Jiangshan road at K12+75~295. It is a water supply source for Jiangshan town with a population of approximately 4,000. There are two protection zones for the reservoir. The class-I protection zone covers the water surface of the reservoir. The class-II protection zone covers the entire watershed. The closest distance is 45 m from the road redline to the boundary of the class-I protection zone, and 75 m from the road redline to the class-II protection zone. As can be seen from Figure E-1, the Chashan reservoir has a small catchment situated upstream of the proposed road upgrading, with densely forested hills to separate the road from the water body. Its elevation is about 15 m above the road surface.

Figure E-1: Location of Fangcheng-Jiangshan Road to Chashan Reservoir

179. The following measures will be adopted to protect the reservoir from construction activities: (i) no construction-related activities will be permitted north of the road; (ii) borrow and spoil disposal sites will be located 3 km away on the opposite site of the reservoirs; (iii) the 220 m section of the road facing the reservoir will be fenced and warming signs posted; and (iv) construction workers will be trained on ways to protect the water body when building this section of the road. In view of the fact that the road is located downstream of the reservoir and with the implementation of the mitigation measures, the impact of the proposed road on the water quality of the reservoir will be insignificant.

5. Potential Impacts and Mitigation Measures during Operation Phase

180. The following sections discuss the potential impacts from the operation of the project facilities, the recommended measures to mitigate these impacts and the significance of the residual impacts. For ease of information organization and presentation, the first five sections deal with air, noise and water pollution-related impacts of the five subprojects. Special issues of concern related to a specific subproject, if they exist, will also be included in the respective section on that subproject. The discussion of potential impacts and mitigation measures common to all subprojects will be examined in the ensuring sections by topic.

i) Beihai Zhulin Road and Related Infrastructures

Air Pollution 181. Baseline Data. Baseline air quality monitoring in the Beihai Zhulin road subproject area was undertaken for TSP, CO and NO2 in 7 locations along the alignment. The results are shown in Table E-9. As can be seen from the table, the air quality in the project area meets the class II of the PRC Ambient Air Quality Standards (GB 3095-1996).

Table E-9: Baseline Air Quality Monitoring Results for Beihai Zhulin Road Daily Average TSP Daily Average CO Daily Average NO2 Location Date (mg/m3) (mg/m3) (mg/m3) 2010.6.30 0.037 <1.25 0.012 2010.7.1 0.044 <1.25 0.003 2010.7.2 0.040 <1.25 0.003 1 Start 2010.7.3 0.028 <1.25 0.007 2010.7.4 0.036 <1.25 0.003 2010.7.5 0.036 <1.25 0.003 2010.7.6 0.031 <1.25 0.004 2010.6.30 0.064 <1.25 0.005 2010.7.1 0.050 <1.25 0.002 2010.7.2 0.062 <1.25 0.013 2 Shangcun village 2010.7.3 0.023 <1.25 0.012 2010.7.4 0.031 <1.25 0.008 2010.7.5 0.037 <1.25 0.003 2010.7.6 0.045 <1.25 0.004 2010.6.30 0.056 <1.25 0.003 2010.7.1 0.037 <1.25 0.016 2010.7.2 0.042 <1.25 0.005 3 Sanjiacun village 2010.7.3 0.018 <1.25 0.002 2010.7.4 0.033 <1.25 0.002 2010.7.5 0.026 <1.25 <0.002 2010.7.6 0.023 <1.25 0.002 2010.6.30 0.047 <1.25 0.003 2010.7.1 0.030 <1.25 0.003 2010.7.2 0.038 <1.25 <0.002 4 Toucun village 2010.7.3 0.038 <1.25 0.002 2010.7.4 0.031 <1.25 <0.002 2010.7.5 0.041 <1.25 <0.002 2010.7.6 0.034 <1.25 0.002 2010.6.30 0.031 <1.25 0.002 2010.7.1 0.014 <1.25 <0.002 2010.7.2 0.026 <1.25 0.004 150 m south of 5 2010.7.3 0.026 <1.25 <0.002 Toucun village 2010.7.4 0.031 <1.25 0.002 2010.7.5 0.030 <1.25 <0.002 2010.7.6 0.033 <1.25 0.002 2010.6.30 0.054 <1.25 0.008 2010.7.1 0.065 <1.25 0.011 2010.7.2 0.062 <1.25 0.009 Zhulin salt farm, 4th 6 2010.7.3 0.039 <1.25 0.005 division 2010.7.4 0.047 <1.25 0.013 2010.7.5 0.050 <1.25 0.004 2010.7.6 0.042 <1.25 0.003 2010.6.30 0.046 <1.25 0.015 2010.7.1 0.032 <1.25 0.007 2010.7.2 0.038 <1.25 0.003 7 End 2010.7.3 0.031 <1.25 0.011 2010.7.4 0.029 <1.25 0.016 2010.7.5 0.033 <1.25 0.004 2010.7.6 0.042 <1.25 0.004 Regulatory limit 0.30 4.00 0.08 Note: Regulatory limit refers to class II of the PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010.

182. Air Quality Predictions. The concentrations of CO and NO2 along the road alignment for 2013, 2020 and 2025 are predicted by use of the HIWAY-2 model recommended in the Specifications for Environmental Impact Assessment of Highway Construction (JTGB 03-2006):

   2    2   2  Q j 1 1 y  1  − hz  1  + hz   ∫ B             CPR = A exp − exp −×   exp −+   dl 2 U ⋅σσπ  2 σ    2 σ   2 σ  zy   y      z     z  

Where, 3 Cpr = pollutant concentration at location R0 from highway section AB, mg/m ; U = wind speed at the height of the effective emission source at highway section, m/s; Qj = emission intensity of gaseous pollutant j, mg/(vehicle • m); y, z = horizontal and vertical dispersion coefficients; x = downwind distance between central point of linear source and the location, m; y = vertical inner distance between central point and vertex of linear source, m; z = height of location above ground, m; h = effective height of emission source, m; A, B = start and end of linear source.

183. The predicted CO and NO2 concentration are shown in Table E-10, and selected graphs are provided Figure E-2 through Figure E-3. The daily average thresholds of the class II of PRC Ambient Air Quality Standards (GB 3095-1996) are 4.00 mg/m3 for CO and 0.08 mg/m3 for NO2. As can be seen from the table, the CO and NO2 concentrations for 2013, 2020 and 2025 will meet the applicable national air quality standards from 20 m from the redline, including the sensitive receptors.

Table E-10: Predicted CO and NO2 Concentrations for Beihai Zhulin Road Concentration (mg/m3) At Distance to Redline Period Pollutant θ 20 m 50 m 80 m 100 m 150 m 200 m Peak 0.2720 0.1529 0.0834 0.0597 0.028 0.0135 0 Daily Average 0.1127 0.0634 0.0346 0.0247 0.0116 0.0056 CO Peak 0.1798 0.1524 0.1235 0.1095 0.0853 0.0698 90 Daily Average 0.0745 0.0632 0.0511 0.0454 0.0354 0.0289 2013 Peak 0.0893 0.0501 0.0274 0.0195 0.0044 0.0044 0 Daily Average 0.0363 0.0205 0.0112 0.0079 0.0038 0.0018 NO 2 Peak 0.0589 0.0500 0.0405 0.0359 0.0279 0.0227 90 Daily Average 0.0240 0.0205 0.0166 0.0147 0.0114 0.0093 Peak 0.4280 0.2407 0.1313 0.0939 0.0442 0.0213 0 Daily Average 0.1790 0.1007 0.0549 0.0393 0.0185 0.0089 CO Peak 0.2830 0.2398 0.0813 0.1724 0.1342 0.1099 90 Daily Average 0.1184 0.0330 0.0432 0.0721 0.0561 0.0459 2020 Peak 0.1410 0.0793 0.0432 0.0308 0.0146 0.0069 0 Daily Average 0.0587 0.0330 0.0181 0.0128 0.0061 0.0028 NO 2 Peak 0.0936 0.0780 0.0643 0.0571 0.0444 0.0362 90 Daily Average 0.0388 0.0329 0.0266 0.0238 0.0184 0.0150 Peak 0.6323 0.3423 0.2434 0.1432 0.0734 0.0754 0 Daily Average 0.2743 0.2214 0.0743 0.0643 0.0465 0.0156 CO Peak 0.3434 0.4532 0.2234 0.2445 0.1876 0.1567 90 Daily Average 0.2245 0.0623 0.0843 0.1165 0.0976 0.0886 2025 Peak 0.1842 0.1156 0.0869 0.0604 0.0546 0.0103 0 Daily Average 0.0956 0.0654 0.0421 0.0432 0.0125 0.0079 NO 2 Peak 0.1124 0.1132 0.0956 0.0942 0.0865 0.0875 90 Daily Average 0.0754 0.0630 0.0542 0.0546 0.0653 0.0654 Source: Domestic EIA, August 2010.

Figure E-2: Distribution of Daily Average CO along Beihai Zhulin Road for 2013 and 2025

Figure E-3: Distribution of Daily Average NO2 along Beihai Zhulin Road for 2013 and 2025

Noise 184. Baseline Noise Conditions were monitored for two days along the road alignment. The results are presented in Table E-11. As can be seen from the table, the baseline noise levels meet the applicable class II of the PRC Ambient Noise Standard for Urban Areas (GB 3096- 2008).

Table E-11: Baseline Noise Monitoring Results for Beihai Zhulin Road Location Time Noise Level, dB(A) Day-time 52.5 1 Start Night-time 45.5 Day-time 43.3 2 280 m from start Night-time 44.1 Day-time 45.4 3 840 m from start Night-time 42.8 Day-time 50.6 4 Shangcun village Night-time 45.2 Day-time 48.3 5 Sanjiacun village Night-time 39.9 Day-time 47.0 6 Toucun village Night-time 41.6 Day-time 47.9 7 150 m south of Toucun village Night-time 43.3 th Day-time 53.5 8 Zhulin salt farm, 4 division (1) Night-time 45.5 th Day-time 52.7 9 Zhulin salt farm, 4 division (2) Night-time 48.3 Day-time 49.7 10 End Night-time 43.3

Day-time 60 for Class II, 70 for Class IVa Regulatory limit Night-time 50 for Class II; 55 for Class IVa Note: Regulatory limit refers to Class IVa of the PRC Ambient Acoustic Quality Standards (GB 3096-93). Source: Domestic EIA, August 2010.

185. Noise Level Predictions. Noise levels were predicted for 2013, 2020 and 2025 by using the methodologies recommended in the PRC Specifications for EIA of Highway Projects (JTG B03-2006). The model for predicting ambient noise levels is as follows:

1L.0 1L.0 L = 1010lg Aeq交 +10 Aeq背 Aeq环 [ ]

Where, LAeq环 = ambient noise level at the forecast location, dB; LAeq交 = road traffic noise level at the forecast location, dB; LAeq背 = baseline noise level at the forecast location, dB.

The following model is used to predict the road traffic noise levels:

Ni  5.7   +ψψ  21 Aeq )( ()LihL OE i ++= lg10lg10   + lg10   L −∆+ 16 TVi  r   π 

Where, Aeq )( ihL = hourly equivalent noise level for vehicle type i, usually classified as large, medium or small, dB;

(L )ioE = average radiating noise level at reference location (7.5 m) for i type vehicle, dB; Ni = hourly traffic volume for the vehicle type, vehicle/h; T = time used to calculate the equivalent noise level, T = 1 h; Vi = average traveling speed of vehicle type i, km/h; ,ψψ 21 = aperture angles between the location and the start and end of the road section, rad; ∆L = correction for other factors, dB; ∆ = ∆ + ∆ + ∆LLLL 坡坡路路其其 ∆L 路面 = correction for road surface material, dB;

∆L 坡度 = correction for road slope, dB;

∆L 其它 = correction for such factors as atmospheric attenuation, surface attenuation and transmission attenuation, dB.

The total equivalent noise level for all vehicles is follows:

 1.0 LAeq大 1.0 LAeq中 1.0 LAeq小  L TAeq )( = 10lg10 +10 +10  

Where, L TAeq )( = hourly equivalent noise level of road traffic, dB.

Table E-12: Predicted Noise Levels for Beihai Zhulin Road Noise Level at Different Locations from Road Center, dB(A)

20 m 40 m 60 m 80 m 100 m 120 m 160 m 200 m Day-time 62.1 56.1 51.2 48.8 47.1 45.8 43.7 42.1 Compliance yes yes yes yes yes yes yes yes 2013 Night-time 56.1 49.4 45.6 43.7 41.6 40.3 40.8 40.3 Compliance +1.1 yes yes yes yes yes yes yes Day-time 62.7 56.1 52.9 51.2 50.3 49.6 49.2 48.8 Compliance yes yes yes yes yes yes yes yes 2020 Night-time 56.5 49.8 44.6 45.6 46.4 45.5 42.7 42.2 Compliance +1.5 yes yes yes yes yes yes yes Day-time 65.0 59.1 55.9 54.1 52.7 51.6 50.2 49.5 Compliance yes yes yes yes yes yes yes yes 2025 Night-time 57.3 52.0 48.6 46.6 46.3 43.9 43.3 43.1 Compliance +2.3 yes yes yes yes yes yes yes Note: Compliance refers to meeting the regulatory limit of class IVa of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). The day-time and night-time limits are respectively 70 dB(A) and 55 dB(A). Source: Domestic EIA, August 2010.

186. The predicted noise levels at different locations from the road center are presented in Table E-12. The estimated minimum distances for meeting the class IVa and class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008) are provided in Table E-13. They will provide guidance for planning future developments alongside the road corridor. In particular,

sensitive receptors, such as schools, kindergartens, hospitals and nursing homes, should not be located in areas where the noise levels exceed the applicable standards.

187. The noise levels of three noise-sensitive receptors were forecasted and the results are presented in Table E-14. The forecasted noise levels of the three sensitive receptors meet the class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). No special mitigation measures are necessary.

Table E-13: Distances for Meeting Noise Standards Distance for Meeting Class IVa Distance for Meeting Class II 70 dB(A) for 55 dB(A) for 60 dB(A) for 50 dB(A) for Day-Time Night-Time Day-Time Night-Time 2013 12 22 25 35 2020 15 28 30 38 2025 18 32 35 55 Note: Class IVa refers to the PRC Ambient Acoustic Quality Standards (GB 3096-2008). The day-time and night-time limits are respectively 70 dB(A) and 55 dB(A). Source: Domestic EIA, August 2010.

Table E-14: Noise Levels for Sensitive Receptors along Beihai Zhulin Road Noise Level, dB(A) Distance and 2013 2020 2025

Sensitive Direction to Class II Class II Class II Receptors Road Center (m) Parameter Day Night Day Night Day Night Shangcun Baseline 50.6 45.2 50.6 45.2 50.6 45.2 village, 10 Road contribution 43.5 40.6 49.5 42.1 49.9 43.9 1 W150 households, Total 51.7 46.1 52.0 46.3 52.0 46.4 40 people Compliance yes yes yes yes yes yes Sanjiacun Baseline 48.3 39.9 48.3 39.9 48.3 39.9 village, 12 Road contribution 45.8 40.3 49.6 45.5 51.6 43.8 2 E120 households, Total 48.6 40.4 50.1 46.1 51.9 44.2 48 people Compliance yes yes yes yes yes yes Toucun Baseline 47.0 41.6 47.0 41.6 47.0 41.6 village, 14 Road contribution 42.9 40.6 42.0 44.1 50.0 43.2 3 E180 households, Total 48.6 42.3 47.2 45.0 51.6 44.1 56 people Compliance yes yes yes yes yes yes Note: Compliance refers to meeting the regulatory limit of Class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). The day-time and night-time limits are respectively 60 dB(A) and 50 dB(A). Source: Domestic EIA, August 2010.

Wastewater and Solid Waste 188. There will be no point sources of water pollution related to the operation of the roads. The associated infrastructures contain sewage pipelines which will transmit the sewage to the 30,000-m3/d Zhulin wastewater treatment plant scheduled for completion by the end of 2011 (which is ahead of the road opening in 2012). Road runoff will go directly to storm culverts and sewers. The runoff will contain water pollutants such as SS and petroleum but the quantities are predicted to be small. The environmental impacts are expected to be minimal. Garbage thrown on the roadside by drivers and passengers will be swept and collected by road cleaners from the urban sanitation bureaus and transported to the municipal landfill. The environmental impacts will be negligible.

ii) Beihai Yingpan Road and Related Infrastructures

Air Pollution 189. Baseline Air Quality monitoring was carried out for 3 parameters (TSP, CO and NO2) for 7 consecutive days between 11 and 17 July 2010 in six locations along the road alignment. The monitoring results showed that the baseline air quality meets the class II standards of the PRC Ambient Air Quality Standards (GB 3095-1996), as is shown in Table E-15.

Table E-15: Baseline Air Quality for Beihai Yingpan Road Daily Average Concentration (mg/m3) Location Date TSP CO NO2 2010.7.11 0.058 0.62 0.009 2010.7.12 0.060 0.50 0.010 2010.7.13 0.029 0.75 0.008 Road start 2010.7.14 0.058 0.65 0.010 2010.7.15 0.049 0.72 0.009 2010.7.16 0.044 0.82 0.008 2010.7.17 0.063 0.75 0.008 2010.7.11 0.032 0.65 0.013 2010.7.12 0.030 0.55 0.010 2010.7.13 0.029 0.77 0.012 West end of 2010.7.14 0.049 0.62 0.012 Qingshantou dyke 2010.7.15 0.044 0.62 0.010 2010.7.16 0.047 0.77 0.011 2010.7.17 0.050 0.62 0.011 2010.7.11 0.046 0.65 0.010 2010.7.12 0.083 0.67 0.012 2010.7.13 0.041 0.82 0.013 East end of 2010.7.14 0.059 0.60 0.014 Qingshantou dyke 2010.7.15 0.070 0.85 0.012 2010.7.16 0.062 0.72 0.012 2010.7.17 0.082 0.67 0.010 2010.7.11 0.052 0.65 0.011 2010.7.12 0.039 0.52 0.009 2010.7.13 0.036 0.92 0.015 Qingshantou village 2010.7.14 0.066 1.00 0.013 2010.7.15 0.045 0.80 0.019 2010.7.16 0.057 0.67 0.013 2010.7.17 0.071 0.77 0.011 2010.7.11 0.049 0.70 0.010 2010.7.12 0.038 0.60 0.012 2010.7.13 0.057 0.85 0.012 Yutangcun village 2010.7.14 0.080 0.65 0.015 2010.7.15 0.078 0.90 0.015 2010.7.16 0.059 0.67 0.016 2010.7.17 0.086 0.72 0.014 2010.7.11 0.116 1.05 0.013 2010.7.12 0.080 0.57 0.013 2010.7.13 0.069 0.67 0.015 Road end 2010.7.14 0.088 0.57 0.013 2010.7.15 0.095 0.65 0.013 2010.7.16 0.117 0.65 0.019 2010.7.17 0.113 0.65 0.011 Regulatory limit 0.30 4.0 0.08 Note: Regulatory limit refers to class II of PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010.

190. Air Quality Predictions. The concentrations of CO and NO2 along the road alignment for 2013, 2015, 2020, 2025 and 2032 are predicted by use of the HIWAY-2 model recommended in the Specifications for Environmental Impact Assessment of Highway Construction (JTGB 03-2006).

191. The predicted CO and NO2 concentration are shown in Table E-16, and selected graphs are provided Figure E-4 through Figure E-7. The daily average thresholds of the class II of PRC Ambient Air Quality Standards (GB 3095-1996) are 4.00 mg/m3 for CO and 0.08 mg/m3 for NO2. As can be seen from the table, the CO and NO2 concentrations for 2013, 2015, 2020, 2025 and 2032 will meet the applicable national air quality standards from 35 m from the redline. The CO and NO2 concentrations for 2013, 2015, 2020, 2025 and 2032 will meet the applicable national air quality standards for the sensitive receptors (Table E-17).

Table E-16: Predicted Daily Average CO and NO2 Concentrations along Yingpan Road Concentrations at Different Distances from Redline (mg/m3) 200 m 180 m 160 m 130 m 100 m 70 m 50 m 35 m CO 2013 0.1334 0.1441 0.1567 0.1802 0.2120 0.2568 0.2985 0.3393 2015 0.1453 0.1569 0.1706 0.1963 0.2309 0.2797 0.3251 0.3695 2020 0.1898 0.2050 0.2230 0.2566 0.3018 0.3656 0.4250 0.4830 2025 0.1817 0.1963 0.2134 0.2455 0.2888 0.3499 0.4067 0.4622 2032 0.1932 0.2087 0.2270 0.2611 0.3072 0.3721 0.4326 0.4916 Regulatory limit 4.0

NO2 2013 0.0210 0.0226 0.0246 0.0283 0.0333 0.0403 0.0469 0.0533 2015 0.0229 0.0247 0.0268 0.0309 0.0362 0.0439 0.0510 0.0580 2020 0.0298 0.0322 0.0350 0.0403 0.0474 0.0574 0.0667 0.0758 2025 0.0286 0.0308 0.0335 0.0386 0.0453 0.0550 0.0638 0.0725 2032 0.0304 0.0328 0.0357 0.0410 0.0482 0.0584 0.0679 0.0772 Regulatory limit 0.08 Note: Regulatory limit refers to the threshold of the Class II of PRC Ambient Air Quality Standard (GB 3095-1996). Source: Domestic EIA, August 2010.

Figure E-4: Distribution of Daily Average CO along Beihai Yingpan Road for 2013

Figure E-5: Distribution of Daily Average NO2 along Beihai Yingpan Road for 2013

Figure E-6: Distribution of Daily Average CO along Beihai Yingpan Road for 2032

Figure E-7: Distribution of Daily Average NO2 along Beihai Yingpan Road for 2032

Table E-17: CO and NO2 at Sensitive Receptors for Beihai Yingpan Road Road Sensitive Receptor and Daily Average Concentration (mg/m3) Section Distance from Redline 2013 2015 2020 2025 2032 CO 1 Zuoluocun village, 50 m 0.2985 0.3251 0.4250 0.4067 0.4326 2 Yutangcun village, 55 m 0.2714 0.2956 0.3863 0.3697 0.3933 3 Nanshetang village, 140 m 0.1674 0.1823 0.2382 0.2280 0.2425 4 Qingshantoucun village, 200 m 0.1334 0.1463 0.1898 0.1817 0.1932 5 Tangshitang village, 60 m 0.2488 0.2709 0.3541 0.3389 0.3605 Regulatory limit 4.00 NO2 1 Zuoluocun village, 50 m 0.0469 0.0510 0.0667 0.0638 0.0679 2 Yutangcun village, 55 m 0.0426 0.0464 0.0606 0.0581 0.0618 3 Nanshetang village, 140 m 0.0263 0.0286 0.0374 0.0358 0.0381 4 Qingshantoucun village, 200 m 0.0210 0.0229 0.0298 0.0286 0.0304 5 Tangshitang village, 60 m 0.0391 0.0426 0.0556 0.0532 0.0566 Regulatory limit 0.08 Note: Still wind and 900 angle. Source: Domestic EIA, August 2010.

Noise 192. Baseline Noise conditions were monitored for two days along the road alignment. The results are presented in Table E-18. As can be seen from the table, the baseline noise levels meet the applicable class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008).

Table E-18: Baseline Noise Monitoring Results for Beihai Yingpan Road Location Time Noise Level, dB(A) Day-time 48.5 1 Start Night-time 44.7 Qingshantuncun village, Day-time 48.2 2 west end Night-time 43.7 Qingshantoucun village, Day-time 50.7 3 east end Night-time 45.5 Day-time 49.7 4 Qingshantoucun village Night-time 45.0 Day-time 48.4 5 Nanshetang village Night-time 44.5 Day-time 48.9 6 Yutangcun village Night-time 44.0 Day-time 49.0 7 End Night-time 44.1 Day-time 60 Regulatory limit Night-time 50 Note: Regulatory limit refers to Class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). Source: Domestic EIA, August 2010.

193. Noise Level Prediction. Noise levels were predicted for 2013, 2020 and 2025 by using the methodologies recommended in the PRC Specifications for EIA of Highway Projects (JTG B03-2006). The model for predicting ambient noise levels is the same as for the Beihai Zhulin road. The results have shown that the day-time and night-time noise levels can meet Class IVa of the PRC Ambient Acoustic Quality Standards (GB 3096-2008) at 20 m from road center for 2013 and 30 m for 2025; and Class II at 30 m from road center by 2013 and 40 m from road

center by 2025. The analysis has also concluded that the day-time and night-time noise levels for the sensitive receptors can also meet the Class IVa standards.

Wastewater and Solid Waste 194. There will be no point sources of water pollution related to the operation of the roads. The associated infrastructures contain sewage pipelines which will transmit the sewage to the 50,000-m3/d wastewater treatment plant located in the northwestern part of the Yingpan town and scheduled for completion by the end of 2011 (which is ahead of the road opening in 2012). Road runoff will go directly to storm culverts and sewers. The runoff will contain water pollutants such as SS and petroleum but the quantities are predicted to be small. The environmental impacts are expected to be minimal. Garbage thrown on the roadside by drivers and passengers will be swept and collected by road cleaners from the urban sanitation bureaus and transported to the municipal landfill. The environmental impacts will be negligible.

iii) Qinzhou Xincheng Road Network and Associated Infrastructures

Air Pollution 195. Baseline Data. The area will be built into a mixed residential-commercial district, for which the class II of the PRC Ambient Air Quality Standards (GB 3095-1996) applies. Baseline air quality monitoring was carried out for 3 parameters (CO, NO2, and PM10) for 8 consecutive days between 26 June and 3 July 2010 in five sites (Jingu village group 3, Diyitong village, Songbogang village, Maolidun village and Danshuiwan village) within the road network area. The monitoring results showed that the baseline air quality meets the class II standards (Table E-19).

Table E-19: Baseline Air Quality Monitoring Results for Qinzhou Xincheng Road 7-Day Average Regulatory Daily Average 7-Day Average Pollution Monitoring Limit Concentration Concentration Index % of Location Parameter (mg/m3) (mg/m3) (mg/m3) (Pi) Violation PM 0.15 0.071~0.077 0.074 0.049 0 Jingu village, 10 NO 0.12 0.021~0.024 0.022 0.018 0 group 3 2 CO 4.0 1.4~1.6 1.471 0.037 0 PM10 0.15 0.057~0.059 0.058 0.39 0 Diyitong NO2 0.12 0.013~0.021 0.017 0.15 0 CO 4.0 1.0~1.2 1.071 0.27 0 PM 0.15 0.051~0.055 0.053 0.35 0 Songbogang 10 NO 0.12 0.001~0.017 0.013 0.11 0 village 2 CO 4.0 1.0~1.2 1.100 0.28 0 PM 0.15 0.061~0.064 0.063 0.42 0 Maolindun 10 NO 0.12 0.011~0.014 0.012 0.10 0 village 2 CO 4.0 1.1~1.4 1.243 0.31 0 PM 0.15 0.047~0.05 0.048 0.32 0 Danshuiwan 10 NO 0.12 0.021~0.023 0.022 0.18 0 village 2 CO 4.0 1.4~1.7 1.529 0.38 0 Note: Standard refers to class II of the PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010.

196. Air Quality Predictions. The hourly, daily and annual concentrations of CO and NO2 were predicted with the use of the AERMOD modeling software for the assessment area of 3.5 km x 2.75 km. The AERMOD modeling software is recommended in the PRC Technical

Guideline on Environmental Impact Assessment – Atmospheric Environment (HJ 2.2-2008). The major results are summarized in Table E-20. The daily average thresholds of the class II of PRC Ambient Air Quality Standards (GB 3095-1996) are 4.00 mg/m3 for CO and 0.12 mg/m3 for NO2. As can be seen from the table, the CO and NO2 concentrations for 2013, 2020 and 2028 will meet the applicable national air quality standards. The CO and NO2 concentrations for 2013, 2020 and 2028 will meet the applicable national air quality standards for the sensitive receptors (Table E-20).

Table E-20: Predicted Daily Average CO and NO2 in Qinzhou Xincheng Road Network Daily Average Concentration (mg/m3) 2013 2020 2028 CO NO2 CO NO2 CO NO2 Regulatory limit (mg/m3) 4.00 0.12 4.00 0.12 4.00 0.12 Baseline (mg/m3) 1.471 0.022 1.471 0.022 1.471 0.022 Max contribution (mg/m3) 0.142 0.026 0.231 0.042 0.316 0.057 Predicted max value (mg/m3) 1.163 0.048 1.702 0.064 1.787 0.079 % in regulatory limit 29.08 40 42.55 53.33 44.68 65.83 Meeting regulatory limit yes yes yes yes yes yes Prevailing wind (degree) 20, 40, 70, 140, 160, 320, 340, 360 Wind speed (m/s) 0~3 Temperature (0C) 9.9~12.9 Note: a) Predicted max value = baseline + max contribution from road; b) Regulatory limit refers to class II of the PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010.

Table E-21: CO and NO2 at Sensitive Receptors for Qinzhou Xincheng Road Network Daily Average Concentration (mg/m3) 2013 2020 2028 Sensitive Receptor CO NO2 CO NO2 CO NO2 Baseline (mg/m3) 1.1 0.013 1.1 0.013 1.1 0.013 Max contribution (mg/m3) 0.028 0.005 0.045 0.008 0.063 0.011 Songbogang village Predicted max (mg/m3) 1.128 0.018 1.145 0.021 1.163 0.024 (70.72,1437.08) % in regulatory limit 28.20 15.00 28.63 17.50 29.08 20.00 Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.071 0.017 1.071 0.017 1.071 0.017 Diyitong village Max contribution (mg/m3) 0.033 0.006 0.053 0.01 0.073 0.013 （-273.37,559.22） Predicted max (mg/m3) 1.104 0.023 1.124 0.027 1.144 0.03 % in regulatory limit 27.60 19.17 28.10 22.50 28.60 25.00 Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.471 0.022 1.471 0.022 1.471 0.022 Max contribution (mg/m3) 0.041 0.008 0.066 0.012 0.092 0.017 Jingu village, group 2 Predicted max (mg/m3) 1.512 0.03 1.537 0.034 1.563 0.039 (-948.3,-137.77) % in regulatory limit 37.80 25.00 38.43 28.33 39.08 32.50 Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.471 0.022 1.471 0.022 1.471 0.022 Max contribution (mg/m3) 0.035 0.006 0.057 0.01 0.078 0.014 No. 4 primary school Predicted max (mg/m3) 1.506 0.028 1.528 0.032 1.549 0.036 (-1327.68,73.98) % in regulatory limit 37.65 23.33 38.20 26.67 38.73 30.00 Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.471 0.022 1.471 0.022 1.471 0.022 Max contribution (mg/m3) 0.072 0.013 0.115 0.021 0.158 0.029 Jingu village, 3rd group Predicted max (mg/m3) 1.543 0.035 1.586 0.043 1.629 0.051 (-1243.87,-49.54) % in regulatory limit 38.58 29.17 39.65 35.83 40.73 42.50 Meeting regulatory limit yes yes yes yes yes yes Dalingjiao village Baseline (mg/m3) 1.243 0.012 1.243 0.012 1.243 0.012 (935.34,378.36) Max contribution (mg/m3) 0.072 0.013 0.117 0.021 0.161 0.029 Predicted max (mg/m3) 1.315 0.025 1.36 0.033 1.404 0.041 % in regulatory limit 32.88 20.83 34.00 27.50 35.10 34.17

Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.243 0.012 1.243 0.012 1.243 0.012 Maolitun village Max contribution (mg/m3) 0.052 0.01 0.086 0.015 0.12 0.022 (1769.09,259.25) Predicted max (mg/m3) 1.295 0.022 1.329 0.027 1.363 0.034 % in regulatory limit 32.38 18.33 33.23 22.50 34.08 28.33 Meeting regulatory limit yes yes yes yes yes yes Baseline (mg/m3) 1.471 0.022 1.471 0.022 1.471 0.022 Max contribution (mg/m3) 0.037 0.007 0.06 0.011 0.085 0.015 Jingu village, group 1 Predicted max (mg/m3) 1.508 0.029 1.531 0.033 1.556 0.037 (-670.39,-168.65) % in regulatory limit 37.70 24.17 38.28 27.50 38.90 30.83 Meeting regulatory limit yes yes yes yes yes yes Note: a) Predicted max value = baseline + max contribution from road; b) Regulatory limit refers to Class II of the PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010

Noise 197. Baseline Data. Acoustic environment monitoring was carried out in 6 representative sites within the project area for 20 m, 40 m, 60 m, 80 m and 120 m from the redline for two consecutive days between 2 and 3 July 2010 (08:00-12:00 and 22:00-24:00). As are shown in Table E-22, the acoustic monitoring results showed that the baseline noise levels for all sites met both day-time and night-time limits of the class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008).

198. Noise Level Prediction. Noise levels were predicted for 2013, 2020 and 2028 by using the methodologies recommended in the Technical Guideline on EIA – Acoustic Environment (HJ 2.4-2009). The estimated minimum distances for meeting the regulatory limits of the PRC Ambient Acoustic Quality Standards (GB 3096-2008) are presented in Table E-23. Since the Xincheng district will be completely rebuilt, there will be no sensitive receptors when the roads are constructed. According to PRC regulations, before a subdivision of the area is developed for a specific purpose of use, an EIA will be prepared. In the EIA, a detailed assessment of the noise levels will be undertaken, which will guide the detailed layout of the subdivision. If the noise level of any proposed building would violate the applicable noise standards, mitigation measures will be proposed.

Table E-22: Baseline Acoustic Quality in Qinzhou Xincheng Urban Road Network Area Day, dB(A) Night, dB(A) Monitoring Location Class Level Limit Violation Level Limit Violation Jingu village, group 2 II 53.1 60 No 45.6 50 No Jingu village, group 3 II 54.1 60 No 45.4 50 No Diyitong village II 54.5 60 No 46.1 50 No Dajiaoling village II 47.5 60 No 44.2 50 No Songbogang village II 49.6 60 No 44.3 50 No Maolidun village II 51.2 60 No 46.1 50 No Note: Class and limit refers to class II of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). Source: Domestic EIA, August 2010.

Table E-23: Distances of Meeting Noise Standards for Qinzhou Xincheng Road Network Minimum Distance from Noise Limit, Redline for Meeting Road Year Time Class dB(A) Standard (m) IVa 70 <1 Day II 60 90.3 2013 IVa 55 72.9 Night II 50 >200 IVa 70 <1 Day #1 Road II 60 158.1 2020 (north section) IVa 55 135.4 Night II 50 >200 IVa 70 1.6 Day II 60 >200 2028 IVa 55 >200 Night II 50 >200 IVa 70 <1 Day II 60 88.4 2013 IVa 55 70.1 Night II 50 >200 IVa 70 <1 #2 Road Day II 60 162.2 (north section, 2020 IVa 55 139.2 phase 2) Night II 50 >200 IVa 70 <1 Day II 60 >200 2028 IVa 55 >200 Night II 50 >200 IVa 70 <1 Day II 60 44.8 2013 IVa 55 34.4 Night II 50 >200 IVa 70 <1 #3 Road Day II 60 91.4 (north section, 2020 IVa 55 73.2 phase 2) Night II 50 >200 IVa 70 <1 Day II 60 145.8 2028 IVa 55 >200 Night II 50 >200 IVa 70 <1 Day II 60 42.5 2013 IVa 55 31.2 Night II 50 >200 IVa 70 <1 Day st II 60 98.6 1 Street 2020 IVa 55 79.1 Night II 50 >200 IVa 70 <1 Day II 60 158.1 2028 IVa 55 >200 Night II 50 >200 IVa 70 <1 Day II 60 32.6 2013 IVa 55 23.1 Night II 50 166.7 IVa 70 <1 Day 3rd Street II 60 74.1 2020 (phase 2) IVa 55 59.6 Night II 50 >200 IVa 70 <1 Day II 60 120.0 2028 IVa 55 138.8 Night II 50 >200 Jingu Outer Ring Road 2013 IVa 70 <1 Day (phase 2) II 60 19.0

IVa 55 13.6 Night II 50 117.9 IVa 70 <1 Day II 60 25.7 2020 IVa 55 17.9 Night II 50 >200 IVa 70 <1 Day II 60 51.0 2028 IVa 55 54.2 Night II 50 >200 Note: Class and standard refer to the PRC Ambient Acoustic Quality Standards (GB 3096-2008). Source: Domestic EIA, August 2010.

Wastewater and Solid Waste 199. There will be no point sources of water pollution related to the operation of the roads. The associated infrastructures contain sewage pipelines which will transmit the sewage to the 100,000-m3/d wastewater treatment plant which is now under construction in the area of phase I north of the proposed road network and scheduled for by the end of 2011 (which is ahead of the road opening in 2012). Road runoff will go directly to storm culverts and sewers. The runoff will contain water pollutants such as SS and petroleum but the quantities are predicted to be small. The environmental impacts are expected to be minimal. Garbage thrown on the roadside by drivers and passengers will be swept and collected by road cleaners from the urban sanitation bureaus and transported to the municipal landfills. The environmental impacts will be negligible.

iv) Fangchenggang Fangcheng-Jiangshan Road and Associated Infrastructures

Air Pollution 200. Baseline Air Quality monitoring was carried out in two sites (Shuiying village and Dongfengdui village) for 7 consecutive days between 7 and 13 April 2010. Dongfengdui is situated in the Wanheshan heron nature reserve whereby class I of the PRC Ambient Air Quality Standards (GB 3095-1996) is adopted. Shuiying is a reference for other sections of the road where the class II applies. As is shown in Table E-24, the baseline air quality in the two monitored sites meets the respective standards.

201. Air Quality Predictions. Simulations of air quality along the road alignment for 2017 were carried by using the ADMS models recommended in the PRC Technical Guidelines for EIA (Atmospheric Environment) (HJ 2.2-2008). The results are presented in Table E-25 and Figure E-8. The simulation results have shown that all parameters are within the applicable limits. Specifically, for Zhangwu village where the class II of the PRC Ambient Air Quality Standards (GB 3095-1996) applies, the forecasted average daily concentration of NO2 for 2027 is 0.045 3 3 mg/m or 38% of the class II limit; the maximum daily concentration of NO2 is 0.068 mg/m or 3 57% of the class II limit; and the maximum hourly concentration of NO2 is 0.106 mg/m or 44% of the class II limit.

202. For Dongfengdui village which is a reference location for the herons nature reserve and 3 where the class I applies, the forecasted average daily concentration of NO2 is 0.050 mg/m of 3 63% of the class I limit; the maximum daily concentration of NO2 is 0.078 mg/m or 98% of the class I limit; and the maximum hourly concentration of 0.116 mg/m3 or 97% of the class I limit. With the implementation of the phase IV vehicular emission standards and a more stringent vehicle inspection program, the air quality in the project area for both the short-, medium- and long-term will meet the prescribed ambient air quality standards.

Table E-24: Baseline Air Quality Monitoring Results for Fangcheng-Jiangshan Road Parameter and Measurement of Daily Average Concentration (mg/m3)

Regulatory Limit 7 Apr’10 8 Apr’10 9 Apr’10 10 Apr’10 11 Apr’10 12 Apr’10 13 Apr’10 Shuiying NO2 0.08 0.044 0.054 0.042 0.045 0.043 0.042 0.044 village TSP 0.20 0.142 0.152 0.158 0.153 0.165 0.161 0.158 Dongfengdui NO2 0.08 0.024 0.024 0.022 0.025 0.023 0.022 0.024 village TSP 0.08 0.102 0.092 0.098 0.083 0.105 0.090 0.088 Note: Regulatory limit refers to the PRC Ambient Air Quality Standard (GB 3095-1996); Class I applies to Dongfengdui village (representative of Wanheshan heron nature reserve) and Class II to Shuiying village (representative of entire alignment except for Wanheshan heron nature reserve). Source: Domestic EIA, August 2010.

Table E-25: Air Quality at Representative Sites for Fangcheng-Jiangshan Road Measurement Day of Time of Site Standard (mg/m3) Occurrence Occurrence Long-term average 0.045 - - Zhangwu village Class II Daily max 0.068 10th day - Hourly max 0.106 10th day 21:00 Long-term average 0.050 - - Dongfengdui village Class I Daily max 0.078 10th day - Hourly max 0.116 5th day 17:00 Note: Standard refers to PRC Ambient Air Quality Standards (GB 3095-1996). Source: Domestic EIA, August 2010.

Figure E-8: Distribution of NO2 along Fangcheng-Jiangshan Road for 2027

Noise 203. Baseline Acoustic Quality monitoring was carried out in 14 sites: one at Gaolaoshan village, two sites at Dongfengdui village, one site for Nanmushu village, two sites at Shitan village and eight sites at Wanheshan heron nature reserve in April, May and August 2010. The

sites are selected as being representative of the sensitive receptors along the alignment. The monitoring results are presented in Table E-26. Only two closest buildings on the road in Dongfengdui and Shitan villages violate the applicable standards by a margin of about 4 to 6 decibels at night. For the Wanheshan nature reserve, the night-time noise level at the third monitored site violates the class-I standard by 0.4 dB(A) for the first sample. The night-time noise levels at the 5th monitored site violates the class-I standard by 1.4 dB(A) and 1.2 dB(A) for the first and second samples respectively. The night-time noise levels at the 6th monitored site violates the class-I standard by 0.6 dB(A) and 1.0 dB(A) for the first and second samples respectively. The conclusions can be drawn from the baseline noise monitoring for the Wanheshan: i) the violations all occur at night-time; and ii) the violations all occur at the monitored points facing the openings.

204. Noise Level Predictions. Noise levels were predicted for 2013, 2019 and 2027 for distances to the road centerline of 20 m to 200 m with an interval of 10 m by using the methodologies recommended in the Technical Guideline on EIA – Acoustic Environment (HJ2.4-2009). The predicted noise levels in the various distances from the road centre are presented in Table E-27. On the basis of the predicted noise levels, the minimum distances of meeting the applicable acoustic standards were estimated (Table E-28). The safe distances will be used to guide future developments, including zoning and issuance of building permits in the road corridor.

Table E-26: Baseline Acoustic Monitoring for Fangcheng-Jiangshan Road Measurements in dB(A) Violation Location Time 1st Sample 2nd Sample Standard 3rd Sample 4th Sample Day 52.1 52.4 60 - - Gaolaoshan village Night 47.2 46.8 50 - - 1st row of bldg to Day 64.8 65.8 70 - - Dongfengdui road Night 58.9 59.1 55 +3.9 +4.1 Village 35 m from Day 52.4 51.7 60 - - redline Night 46.7 45.4 50 - - Day 43.1 43.9 60 - - Nanmushu village Night 41.6 40.4 50 - - 1st row of bldg to Day 67.2 66.4 70 - - Shitan road Night 60.7 60.3 55 +5.7 +5.3 village 35 m from Day 54.8 54.1 60 - - redline Night 47.8 48.0 50 - - #1 (K4+140, 163 Day 48.7 49.0 55 - - m to redline) Night 43.6 43.5 45 - - #2 (K4+180, 136 Day 49.1 49.6 55 - - m from redline) Night 44.2 44.5 45 - - #3 (K4+240, 112 Day 50.6 50.8 55 - - m from redline) Night 45.4 44.9 45 +0.4 - #4 (K4+400, 86 Day 48.8 49.1 55 - - Wanheshan m from redline) Night 44.3 44.6 45 - - nature #5 (K4+520, 105 Day 50.5 50.2 55 - - reserve m from redline) Night 46.4 46.2 45 +1.4 +1.2 #6 (K4+575, 120 Day 50.9 50.0 55 - - m from redline) Night 45.6 46.0 45 +0.6 +1.0 #7 (K4+640, 145 Day 49.2 48.7 55 - - m from redline) Night 44.0 44.8 45 - - #8 (K4+655, 40 Day 51.1 50.7 60 - - m from redline) Night 45.9 44.8 50 - - Source: Domestic EIA, August 2010.

Table E-27: Predicted Noise Levels at Distance from Road Centre Distance to 2013, dB(A) 2019, dB(A) 2027, dB(A) Road Center (m) Night Day Night Day Night Day 20 68.5 61.9 70.7 64.1 72.6 66.0 30 66.6 60.0 68.9 62.2 70.8 70.8 40 63.9 57.3 66.1 59.5 68.0 61.4 50 61.9 55.2 64.1 57.4 66.0 59.4 60 59.9 53.3 62.1 55.5 64.0 57.4 70 57.0 50.4 59.2 52.6 61.1 54.5 80 56.0 49.4 58.2 51.6 60.1 53.5 90 53.0 46.3 55.2 48.6 57.1 50.5 100 51.0 44.4 53.2 46.6 55.1 48.5 110 49.1 42.4 51.3 44.6 53.2 46.6 120 48.3 41.7 50.5 43.8 52.4 45.8 130 47.5 40.9 49.8 43.1 51.7 45.0 140 46.9 40.3 49.1 42.5 51.0 44.4 150 46.2 39.6 48.5 41.8 50.4 43.7 160 45.7 39.0 47.9 41.2 49.8 43.2 170 45.1 38.5 47.3 40.7 49.2 42.6 180 44.6 38.0 46.8 40.2 48.7 42.1 190 44.1 37.5 46.3 39.7 48.2 41.6 200 43.6 37.0 45.8 39.2 47.7 41.1 Note: Assuming no sound barriers. Source: Domestic EIA, August 2010.

Table E-28: Distances of Meeting Noise Standards for Fangcheng-Jiangshan Road Standard, Distance Standard, Distance Standard, Distance dB(A) (m) dB(A) (m) dB(A) (m) Year Class Day Night Day Night Class Day Night Day Night Class Day Night Day Night 2013 70 55 7 52 60 50 60 76 55 45 84 101 2019 4a 70 55 24 62 2 50 50 67 86 1 55 45 91 116 2027 70 55 33 68 60 50 81 94 55 45 102 130 Note: a) Assuming no artificial or natural sound barriers; b) Minimum distance refers to minimum distance from the road centre required to meet the applicable noise limit; c) standard refers to the maximum allowable noise level; and d) class refers to the applicable class of the PRC Ambient Acoustic Quality Standards (GB 3096-2008) Source: Domestic EIA, August 2010.

205. Noise-Sensitive Receptors. Twenty-three (23) noise-sensitive receptors (NSRs) have been identified along the recommended alignment of the Fangcheng-Jiangshan road, including 11 NSRs where class IVa of the PRC Ambient Acoustic Quality Standards (GB 3096-2008) is applicable and 12 NSRs where class II is applicable. All of the 11 class IVa-applicable receptors violate the day-time or night-time maximum limits for the long-term (2027), with the most serious violation being forecasted to be in Shuiying where the noise level in 2027 exceeds the limit by 3.3 dB(A) for the day-time and 11.7 dB(A) for the night-time. For the 12 Class II-applicable NSRs, 10 violate the day-time or night-time maximum limits for the long-term (2027), with the most serious violation being forecasted to be in Jiangshan township police station where the noise level in 2027 exceeds the limit by 3.7 dB(A) for the day-time and 2.0 dB(A) for the night- time. The proposed mitigation measures are provided in Table E-29. The estimated costs of the proposed mitigation measures have been incorporated into the project investment plan.

Table E-29: NSRs and Mitigation Measures for Fangcheng-Jiangshan Road No. of Cost Applicable Violation Affected dB(A) Estimate No. NSR Stake No. Class dB(A) Households Mitigation Measure Reduced (CNY 000) 1 Shuiying K0+600 4a +10.2 8 60 m2 of windows replaced with 20 42.0 ventilated, sound-proof ones 2 Qiaotoudui K3+800~ 4a +7.8 4 32 m2 of windows replaced with 20 22.4 K4+100 ventilated, sound-proof ones 2 ------3 Dongfengdui K4+350 4a +7.8 5 30 m2 of windows replaced with 20 21.0 ventilated, sound-proof ones 2 ------4 Zhongjiandun K5+100~ 4a +8.9 8 64 m2 of windows replaced with 20 44.8 K5+500 ventilated, sound-proof ones 2 ------5 Longjiuwu K6+480 4a +8.7 4 30 m2 of windows replaced with 20 21.0 ventilated, sound-proof ones 2 ------6 Lizitan K8+400 4a +9.6 4 36 m2 of windows replaced with 20 25.2 ventilated, sound-proof ones 2 ------7 Hengshan K8+600~ 2 +0.7 10 Existing windows are able to -- -- K9+300 abate the noise to acceptable levels; no mitigation measures are necessary 8 Dalongkeng K9+450 4a +7.3 4 30 m2 of windows replaced with 20 21.0 ventilated, sound-proof ones 2 ------9 Chongsha K10+965 2 +2.8 25 Planting of thick trees along the 3 57.5 side of the village, with a total length of 113 m 10 Shashan K12+000 4a +8.3 5 40 m2 of windows replaced with 20 28.0 ventilated, sound-proof ones 2 ------11 Jiangshan K12+760 2 +5.5 30 50 m2 of windows replaced with 20 35.0 Police Stn (persons) ventilated, sound-proof ones 12 Zaohetong K15+850 4a +7.3 10 78 m2 of windows replaced with 20 54.6 ventilated, sound-proof ones 2 +0.5 10 Existing windows are able to -- -- abate the noise to acceptable levels; no mitigation measures are necessary 13 Shanjiaoxicun K16+000 4a +0.5 10 Village is low-lying; Noise l can be 3 52.5 2 +1.1 18 abated to acceptable levels by planting 105 m of thick trees along the side of the village Total (CNY 000) 425.0 Source: Domestic EIA, August 2010.

Wastewater, Solid Waste 206. There will be no point sources of water pollution related to the operation of the roads. Road runoff will go directly to storm culverts and sewers. The runoff will contain water pollutants such as SS and petroleum but the quantities are predicted to be small. The environmental impacts are expected to be minimal. No sewage sewers are provided as the road serves to connect the urban district of Fangcheng and the Jiangshan peninsula. Plans are in place to build the sewage sewers in a phased fashion as urbanization takes places. Garbage thrown on the roadside by drivers and passengers will be swept and collected by road cleaners from the urban sanitation bureaus and transported to the municipal landfill. The environmental impacts will be insignificant.

Wanheshan Heron Nature Reserve 207. Potential Noise Impact: The major potential impact of the proposed Fangcheng- Jiangshan road upgrading is noise pollution. Field inspections have revealed that there are vegetated hills alongside the road that separate the road from the NR (Figure E-9). However, there are two openings at present, one with a length of 265 m and the other 150 m, which are major pathways of traffic noise transmission to the NR (Figure E-10). The PRC Ambient Acoustic Quality Standards (GB 3096-2008) stipulates that nature reserves shall meet the class- I standards of dB(A) 55 for day-time noise level and dB(A) 45 for night-time level.

208. Mitigation Measures: Eight alternative designs for the 3-km section passing by the nature reserve, including the without project scenario, were identified. Noise simulation was undertaken for the identified alternatives. The alternative of “noise-reducing surface and dense planting of trees” has been recommended. The results of the simulations and the justification for the selection of the recommended alternative are detailed in Chapter F. (analysis of alternatives). The simulation results have shown that with the adoption of noise reducing asphalt road surface and the closure of the two openings with densely planted trees, the noise level will meet the class-I of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). Academic studies have shown that the noise-and-light reduction effect of a green belt depends on a number of factors, including the width of the green belt and its canopy density (which in turn depends on the types of trees and shrubs)11. The types of trees and shrubs and the combination of trees and shrubs that can best reduce noise and light pollution will be identified during the detailed design stage. Additional mitigation measures include the posting along the nature reserve section of signs banning horn blowing and speeding and more frequent patrols. With the implementation of the above mitigation measures, the noise impact of the proposed road upgrading will be insignificant.

WANHESHAN NR

WANHESHAN NR WANHESHAN NR

Figure E-9: Opening and Closure between Road and NR

11 See, for example, Yin Aihua, et al. 2006. “Primary study on the noise-reduction effects of different tree species in the Pearl river delta”, Guangdong Forest Science and Technology, Vol. 22, Issue 4, pp. 79-82. Ding Yazhao, Zhou Jingxuan and Li Heng. 2004. “Study on effects of green belts on highway noise reduction”, Environmental Pollution Prevention and Control, Vol. 6, December 2004 Issue.

Figure E-10: Two Openings between the Road and the NR

209. Luminal Impact: The two openings are also the pathways for light pollution to the nature reserve. There are no national regulations in the PRC on outdoor lighting related to protected areas. But the Beijing Specification for Limitation to Obtrusive Light of Outdoor Lighting (DB11/T 731-2010), the first ever outdoor lighting regulation in the PRC, prohibits the use of lighting (especially decorative lighting) near wildlife habitats. The International Dark-Sky Association (IDA) 2008 Practical Guide on Effects on Artificial Light at Night on Wildlife (www.dark-sky.org) discusses the effects of artificial light on wildlife and advises the minimum use of artificial light in wildlife areas. No road lights will be provided along this section of the road. Meanwhile, closure of the two openings with densely planted trees will significantly reduce vehicular light pollution. Moreover, in order to minimize disturbance to the NR, no road lights will be installed in the NR section of the road. Other mitigation measures include warning signs informing drivers of nature reserve ahead and prohibiting the use of high-beam lights. Police patrol will also visit this section more frequently for checks on vehicular light use. With the implementation of the mitigation measures particularly the full closure of the NR section of the road with the existing green hills and densely planted trees, the light impact on the nature reserve is expected to be minimal.

210. Enhancement Measures: In order to reduce the risk of the proposed road upgrading to the nature reserve and for the purpose of removing the most critical threats to the herons, a series of enhancement measures will be implemented. The enhancement package entails the strengthening of: (i) reforestation in the Wanheshan mountain as the nesting and breeding ground; (ii) patrols to reduce poaching; (iii) heron rescue and quarantine to reduce death rate

from diseases such as bird flu; (iv) community awareness and education effort by training on protection of the herons and their habitat for community members, including those people living near or dependent on the heron feeding grounds (i.e., coastal mangroves and mudflats, aquaculture ponds, and paddies—primary food sources for the herons); and (v) local policies, training of local conservation officials and scientific studies and investigations for better understanding and hence enhanced protection of the herons and their habitat. The terms of reference for local policy formulation and scientific studies and investigations, including activities and outputs, will be developed as soon as the loan implementation consultants and the heron NR supervision committee are engaged, and included in the loan implementation inception report.

211. Monitoring and Supervision: The environmental quality at the nature reserve and the heron population during both the construction and operation phases will be monitored closely by the internal and external environmental monitors and the special advisory and supervisory committee. The policy and institutional strengthening program will enhance the capacity of the local responsible and supervisory authorities.

212. Cost Estimates: The above-mentioned protection, enhancement and monitoring and supervision measures have been thoroughly discussed and agreed by the EA, IAs, PICs, Fangcheng forest bureau as the responsible authority and Fangchenggang environmental bureau who has supervisory authority over the nature reserve. The total costs for the protection, enhancement and monitoring and supervision measures for the Wanheshan heron nature reserve have been estimated to be CNY 4.97 million. The detailed measures and corresponding costs are provided in Table E-30. The costs have been incorporated into the overall project investment plan.

Table E-30: NSRs and Mitigation Measures for Fangcheng-Jiangshan Road Investment during Investment Project Implementation during Protection / Enhancement Measure (‘000 CNY) Operation (CNY) Protection Measure Noise-reducing surface for 3-km section along the NR 1,529 Closing of 2 openings with dense trees 420 Fencing 200 Extra dust-and-noise suppression 100 Warning and no horn blowing signs 150 Subtotal 2,399

Enhancement Measure Reforestation in the Wanheshan mountain 200 400 Strengthened patrol 50 200 Heron rescue and quarantine 100 200 Community awareness and education 75 150 Policy and institutional strengthening 100 400 Subtotal 525 1,350

Monitoring and Supervision Monitoring of impact on heron population 100 200 Supervisory committee 200 200 Subtotal 300 400

Total 3,224 1,750

Note: (i) costs of protection measures for the operation phase are incorporated into the project O&M budget; (ii) costs for enhancement measures for the operation phase are for 20 years; (iii) costs for monitoring are for the first 5 years of operation, and the costs thereafter will be incorporated into the NR regular management program.

Chashan Reservoir 213. The operation of the Fangcheng-Jiangshan road may pose a risk to the water quality of the Chashan reservoir as a water supply source for Jiangshan town. But the risk is assessed to be minor for two major reasons: (i) the road is situated downstream of the reservoir; and (ii) there are densely forested hills between the road and the reservoir. It is recommended that the openings will be fenced to prevent drivers and passengers from entering the reservoir catchment area. Warning signs will also be installed along road side prohibiting littering and more frequent police patrol will be undertaken. Emergency numbers will be posted. The reservoir is registered with the city’s emergency response information system. In case of a chemical spill, the driver or any witness can call the emergency numbers and the emergency response office will immediately dispatch the emergency response team. A more detailed description of the city emergency preparedness and response system is provided in the ensuing subsection vii.

v) Fangchenggang Maoling Wastewater Treatment Plant

Air Pollution 214. Baseline Data. The major air pollution from the Maoling WWTP is foul odor associated with the emission of H2S and NH3. Baseline air quality monitoring was undertaken for the two related parameters for seven consecutive days between 27 May and 2 June 2010 in three representative locations. The three locations are: (i) dormitory of cement plant located 90 m upwind to the northeast of the WWTP; (ii) the WWTP site; and (iii) Lizhigen village located 750 m downwind to the southwest of the WWTP. The baseline monitoring results are presented in Table E-31. All the borderline standards of class II of the PRC Odor Pollutant Emission Standards (GB 14555-1993) apply.

215. Emissions of NH3 and H2S from the WWTP (including the de-odor workshop) were estimated at different distances from the WWTP with the Gaussian dispersion model. The concentrations of NH3 and H2S will meet the class II of the PRC Odor Pollutant Emission Standards (GB 14555-93). There are two sensitive receptors for the odor emissions: (i) the dormitory of the concrete plant, which has a distance of 130 m upwind from the WWTP; and (ii) Nanluoyong village, which has a distance of 220 m. The concentrations of NH3 and H2S at these sensitive receptors will also be within the regulatory limits. In order to further reduce the odor annoyance, a green belt of thick trees with a width of at least 10 m will be established. 216.

Table E-31: Air Quality at Representative Sites for Maoling Wastewater Treatment Plant H2S NH3 Hourly Hourly Concentration Pollution Index Concentration Pollution Index 3 3 Monitoring Location Date (mg/m ) (Pi) (mg/m ) (Pi) 27 May <0.002~0.002 0.10~0.20 <0.02~0.05 0.05~0.25 28 May <0.002~0.004 0.10~0.40 0.02~0.08 0.10~0.40 29 May <0.002~0.005 0.10~0.50 0.04~0.08 0.20~0.40 Dormitory of cement 30 May <0.002~0.002 0.10~0.20 <0.02~0.04 0.05~0.20 plant 31 May <0.002~0.002 0.10~0.20 0.03~0.07 0.15~0.35 1 June <0.002~0.004 0.10~0.40 0.04~0.08 0.20~0.40 2 June <0.002~0.005 0.10~0.50 0.02~0.05 0.10~0.25 27 May <0.002 0.10 <0.02~0.03 0.05~0.15 28 May <0.002~0.002 0.10~0.20 <0.02~0.03 0.05~0.15 29 May <0.002~0.003 0.10~0.30 0.03~0.04 0.15~0.20 WWTP site 30 May <0.002 0.10 <0.02~0.02 0.05~0.10 31 May <0.002 0.10 <0.02~0.03 0.05~0.15 1 June <0.002~0.003 0.10~0.30 0.02~0.05 0.10~0.25 2 June <0.002~0.004 0.10~0.40 <0.02~0.04 0.05~0.02 27 May <0.002~0.003 0.10~0.30 <0.02~0.05 0.05~0.25 28 May <0.002~0.003 0.10~0.30 0.02~0.05 0.10~0.25 29 May <0.002~0.004 0.10~0.40 0.03~0.08 0.15~0.40 Lizhigen village 30 May <0.002~0.003 0.10~0.30 <0.02~0.04 0.05~0.20 31 May <0.002~0.003 0.10~0.30 0.03~0.08 0.15~0.40 1 June <0.002~0.005 0.10~0.50 0.04~0.10 0.20~0.50 2 June <0.002~0.006 0.10~0.60 0.04~0.08 0.20~0.40 Regulatory limit 0.06 1.5 Note: Regulatory limit refers to class II of the PRC Odor Pollutant Emission Standards (GB 14555-1993). Source: Domestic EIA, August 2010.

Noise 217. Baseline Acoustic Quality: Baseline noise monitoring was carried out in five sites for two consecutive days (11 and 12 June 2010). The monitoring results are presented in Table E- 32. The results have shown that the baseline acoustic quality at the proposed WWTP site meets class III of the PRC Ambient Acoustic Quality Standards (GB 3096-2008). With the estimated intensities of various sources at the WWTP presented in Table E-33, the noise levels at 200 m from the borders of the WWTP are predicted by using the methodologies recommended in the Technical Guideline on EIA – Acoustic Environment (HJ2.4-2009). The results are presented in Table E-34. As shown in the table, the night-time noise level will violate the applicable standard by 3.5 dB(A) at 200 m east of the WWTP, and by 0.1 dB(A) at 200 m north of the WWTP. One noise-sensitive receptor is located 130 m in the NE direction of the WWTP, and the predicted noise level for the sensitive receptor meets the class-III standards. One sewage pump station will built. The pump is an underground type such that the above-ground noise level is minimal. The site is located beside a railway line where there is no any sensitive receptor within a radius of 200 m. In conclusion, the ambient noise levels for the Maoling WWTP will be reduced to acceptable levels, with the implementation of the following mitigation measures: i) use of underground sewage pump; ii) use of insulation materials for the sludge de-watering workshop; iii) use of an underground sewage type of pump to pump back to the activated sludge tank the effluent from the mechanical dewatering unit; and iv) establishment of a 10-m green belt.

Table E-32: Baseline Noise Level for Maoling WWTP Noise Level, dB(A)

Date Day-Time Night-Time 11 June 2010 54.9 52.5 East border 12 June 2010 53.4 48.7 11 June 2010 49.4 47.7 South border 12 June 2010 54.8 49.2 11 June 2010 50.5 48.8 West border 12 June 2010 51.5 46.1 11 June 2010 55.0 53.1 North border 12 June 2010 56.9 51.0 Dormitory of cement 11 June 2010 52.8 49.4 factory 12 June 2010 54.2 46.3 Note: Class III of the PRC Ambient Acoustic Quality Standards (GB 3096-2008): 65 dB(A) for day-time and 55 dB(A) for night-time. Source: Domestic EIA, August 2010.

Table E-33: Noise Levels of WWTP Equipment Noise Level, dB(A) dB(A) 5 m 15 m 30 m 50 m 100 m 120 m 150 m 200 m Wastewater pump 80 66.0 56.5 50.5 46.0 40.0 38.4 36.5 38.4 Air-driven sand remover 80 66.0 56.5 50.5 46.0 40.0 38.4 36.5 38.4 Sludge pump 85 71.0 61.5 55.5 51.0 45.0 43.4 41.5 39.0 Air blower 90 76.0 66.5 60.5 56.0 50.0 48.4 46.5 44.0 Belt dewatering machine 85 71.0 61.5 55.5 51.0 45 43.4 41.5 39.0 Power generating house 105 91.0 81.5 75.5 71.0 65.0 63.4 61.5 58.9 Source: Domestic EIA, August 2010.

Table E-34: Predicted Noise Levels at Border of Maoling WWTP WWTP Contribution, Baseline, Total Standard, Time dB(A) dB(A) dB(A) dB(A) Violation 200 m from east Day 54.9 59.2 65 no 57.2 border Night 52.5 58.5 55 +3.5 200 m from Day 54.8 56.1 65 no 50.2 south border Night 49.2 52.8 55 no 200 m from west Day 51.5 55.6 65 no 53.4 border Night 48.8 54.3 55 no 200 m from Day 56.9 57.8 65 no 50.7 north border Night 53.1 55.1 55 +0.1 Note: Standard refers to Class III of the PRC Ambient Acoustic Quality Standards (GB 3096-2008): 65 dB(A) for day- time and 55 dB(A) for night-time. Source: Domestic EIA, August 2010.

Water Pollution 218. Pollution Reduction. The operation of the Maoling WWTP will significantly reduce the pollution loadings from the Maoling industrial park and the Maoling town: COD by 87% or 4,270.5 t/a, BOD by 92% or 2,518.5 t/a, NH3-N by 82% or 328.5 t/a, TP by 88% or 76.7 t/a and SS by 93% or 3,066.0 t/a. This will significantly improve the water quality of the water bodies in the project area, particularly the Maolingjiang River and the Maowei Bay. However, the effluent from the Maoling WWTP will be a major point-source of water pollution.

219. Quality Standards. The WWTP is designed to meet the class 1B of the PRC Pollutant Discharge Standards for Urban WWTPs (GB 18918-2002), and effluent will be discharged into the Maolingjiang river which flows 2.5 km into the Maowei Bay. According to the Guangxi water environmental functional zoning plan, the Fangchenggang city water environmental functional

zoning plan and the Fangchenggang marine functional zoning plan, the class III of the PRC Ambient Surface Water Standards (GB 3838-2002) applies to the Maolingjiang river; and the class III of the PRC Marine Water Quality Standards (GB 3097-1997) applies to the Maowei Bay. The Maolingjiang river has an average yearly flowrate of 49.2 m3/s, with the flowrate for the high-low season (June – September) being 83 m3/s and the flowrate for the low-flow season (October – April) being 16 m3/s.

220. Baseline Water Quality monitoring was undertaken in five locations on the Maolingjiang River for three consecutive days between 10 and 12 June 2010. A total of 23 water quality parameters were analyzed. The pollution indices are presented in Table E-35. As can be seen from the table, the baseline water quality of the Maolingjiang River meets the designated class III standards. The pollutant with the highest pollution index is petroleum which has reached or is close to the class III limit.

Table E-35: Pollution Indices of Maolingjiang River Monitoring Location 1# 2# 3# 4# 5# 6# High-tide 0.01~0.26 0.01~0.30 0.01~0.01 0.18~0.24 0.02~0.05 0.01~0.11 pH Low-tide 0.05~0.34 0.06~0.25 0.03~0.23 0.02~0.24 0.05~0.14 0.01~0.15 High-tide 0.52~0.59 0.55~0.61 0.52~0.70 0.53~0.71 0.50~0.68 0.46~0.59 DO Low-tide 0.51~0.58 0.36~0.62 0.57~0.64 0.52~0.60 0.37~0.60 0.33~0.64 High-tide 0.20~0.33 0.17~0.37 0.23~0.47 0.17~0.53 0.20~0.33 0.27~0.80 SS Low-tide 0.23~0.30 0.17~0.33 0.40~0.47 0.20~0.57 0.20~0.40 0.33~0.43 High-tide 0.70~0.80 0.55~0.90 0.40~1.00 0.40~0.75 0.65~0.90 0.70~0.80 COD Low-tide 0.60~0.80 0.70~1.0 0.60~0.80 0.55~0.90 0.50~1.00 0.85~0.90 High-tide 0.65~0.75 0.50~0.53 0.50~0.60 0.50~0.70 0.53~0.60 0.53~0.70 BOD Low-tide 0.63~0.80 0.50~0.55 0.55~0.65 0.58~0.65 0.50~0.60 0.53~0.65 High-tide 0.76~0.79 0.60~0.70 0.51~0.59 0.72~0.80 0.66~0.74 0.51~0.68 NH -N 3 Low-tide 0.67~0.73 0.56~0.68 0.56~0.84 0.64~0.79 0.64~0.79 0.59~0.77 High-tide 0.50 0.50~0.75 0.50~0.55 0.50~0.75 0.50~0.55 0.60~0.80 TP Low-tide 0.45~0.75 0.30~0.65 0.45~0.90 0.50~0.80 0.50 0.25~0.35 High-tide 0.001 0.001 0.001 0.001 0.001 0.001 Cu Low-tide 0.001 0.001 0.001 0.001 0.001 0.001 High-tide 0.05 0.05 0.05 0.05 0.05 0.05 Zn Low-tide 0.05 0.05 0.05 0.05 0.05 0.05 High-tide 0.01 0.01 0.01 0.01 0.01 0.01 Arsenic Low-tide 0.01 0.01 0.01 0.01 0.01 0.01 High-tide 0.01 0.01 0.01 0.01 0.01 0.01 Mercury Low-tide 0.01 0.01 0.01 0.01 0.01 0.01 High-tide 0.2 0.2 0.2 0.2 0.2 0.2 Cd Low-tide 0.2 0.2 0.2 0.2 0.2 0.2 +6 High-tide 0.08 0.08 0.08 0.08 0.08 0.08 Cr Low-tide 0.08 0.08 0.08 0.08 0.08 0.08 High-tide 0.2 0.2 0.2 0.2 0.2 0.2 Pb Low-tide 0.2 0.2 0.2 0.2 0.2 0.2 High-tide 0.05 0.05 0.05~0.10 0.05~0.10 0.05 0.05 Cyanide Low-tide 0.05 0.05 0.05~0.10 0.05 0.05 0.05 High-tide 0.2 0.2 0.2 0.2 0.2 0.2 Phenol Low-tide 0.2 0.2 0.2 0.2 0.2 0.2 High-tide 1.0 0.6~1.0 1.0 0.6~1.0 0.8~1.0 0.8~1.0 Oils Low-tide 0.8~1.0 0.8~1.0 0.6~1.0 0.6 0.6~1.0 0.6~0.8 Cationic High-tide 0.25 0.25 0.25 0.25 0.25 0.25 surfactant Low-tide 0.25~0.28 0.25 0.25~0.30 0.25~0.32 0.25 0.25~0.47 High-tide 0.095~0.100 0.095~0.105 0.070~0.105 0.095~0.110 0.100~0.115 0.095~0.100 Sulfide Low-tide 0.095~0.105 0.060~0.100 0.085~0.105 0.095~0.110 0.095~0.100 0.095~0.100 Note: i) Monitoring location #1 = 300 m upstream of the effluent discharge outlet; #2 = 1,000 m upstream of the effluent discharge outlet; #3 = 100 m on the Xiaotaojiang river before it joins with Maolingjiang river (reference point); #4 = 300 m downstream of the effluent discharge outlet; #5 = 1,000 m downstream of the effluent discharge outlet; #6 = 2,000 m downstream of the effluent discharge outlet. Source: Domestic EIA, August 2010.

221. Baseline marine water quality monitoring was undertaken in two locations in the Maowei Bay (3,000 m from the effluent discharge outlet) for three consecutive days between 10 and 12 June 2010. A total of 17 water quality parameters were analyzed. The pollution indices are presented in Table E-36. As can be seen from the table, all water quality parameters in the Maowei Bay, except for active phosphate at the second monitoring location, meet the designated class III standards. The active phosphate concentration exceeds the class III standard by 10%.

Table E-36: Pollution Indices of Maowei Bay Monitoring Location 1# 2# High-tide 0.12~0.27 0.03~0.19 pH Low-tide 0.02~0.04 0.01~0.30 High-tide 0.04~0.09 0.05~0.07 SS Low-tide 0.06~0.10 0.08~0.10 High-tide 0.31~0.40 0.31~0.39 DO Low-tide 0.21~0.38 0.23~0.31 High-tide 0.05~0.85 0.58~0.72 COD Low-tide 0.68~0.85 0.50~0.73 High-tide 0.0062~0.0084 0.0062~0.0084 Inorganic nitrogen Low-tide 0.0075~0.0091 0.0075~0.0091 High-tide 0.73 1.0~1.1 Active phosphate Low-tide 0.77~0.93 0.70~0.73 High-tide 0.016~0.018 0.014~0.018 Cu Low-tide 0.012~0.014 0.014 High-tide 0.076~0.087 0.054~0.076 Pb Low-tide 0.076~0.098 0.044~0.065 High-tide 0.023~0.034 0.026~0.034 Cd Low-tide 0.027~0.036 0.030~0.033 High-tide 0.01 0.01 Arsenic Low-tide 0.01 0.01 High-tide 0.05 0.05 Hg Low-tide 0.05 0.05 +6 High-tide 0.2 0.20~0.25 Cr Low-tide 0.2 0.2 High-tide 0.01 0.01 Cyanide Low-tide 0.01 0.01 High-tide 0.1 0.1 Phenol Low-tide 0.1 0.1 High-tide 0.19~0.21 0.19~0.22 Sulfide Low-tide 0.19 0.20~0.22 High-tide 0.10~0.13 0.10~0.17 Oils Low-tide 0.10~0.20 0.07~0.17 Source: Domestic EIA, August 2010.

222. Water Quality Predictions. Xiaotaojiang and Maolingjiang are tidal rivers. In accordance with PRC Technical Guideline on EIA: Surface Water Environment (HJ/T 2.3-93), the O’Connor model is used to predict the concentrations of degradable pollutants. The predicted impact of the WWTP on the water quality of the Xiaotaojiang River and Maolingjiang River is presented in Table E-37. The water quality prediction results show that the COD in Xiaotaojiang River will meet the Class III standards at a distance of approximately 1,000 m from the effluent discharge outlet at high-tide, and for NH3-N, the distance is approximately 500 m. For the Maolingjiang River, the COD and NH3-N meet the class III standards for all distances.

Table E-37: Water Quality of Receiving Rivers with Maoling WWTP Distance from Effluent Discharge Outlet (m)

10 50 100 150 200 250 500 700 1000 Xiaotaojiang river COD (mg/m3) High-tide 21.96 21.85 21.71 21.57 21.43 21.30 20.66 20.17 19.50 3 NH3-N (mg/m ) High-tide 1.22 1.20 1.17 1.14 1.11 1.09 0.99 0.93 0.87 Maolingjiang river COD (mg/m3) High-tide 13.43 13.43 13.43 13.42 13.42 13.40 13.40 13.38 13.36 Low-tide 0.96 0.96 0.95 0.95 0.94 0.94 0.93 0.93 0.92 3 NH3-N (mg/m ) High-tide 14.86 14.86 14.85 14.85 14.86 14.85 14.84 14.84 14.83 Low-tide 0.83 0.83 0.82 0.82 0.82 0.81 0.81 0.81 0.80 Note: Class II standard for COD = 20 mg/l, NH3-N = 1.0 mg/l. Source: Domestic EIA, August 2010.

223. The Joseph-Sendner dispersion model was used to predict the marine water quality of the Maowei bay. The results are provided in Table E-38. Inorganic nitrogen meets the class III of the PRC Marine Water Quality Standards (GB 3097-1997) for all distances. COD and active phosphorus will meet the class III with 90 m of dispersion after the plume enters the bay. The impact is judged to be acceptable. The DO concentrations in Maolingjiang River and Maowei Bay during the low-flow season (worst case scenario) were predicted with the use of the Streeter-Phelps model. The results have shown that the DO concentrations under the worst case scenario meet the regulatory requirements. More specifically, the DO concentration upstream of the effluent outlet (i.e., at the distance of 0 m) is 6.19 mg/l, gradually declines and reaches the minimum of 6.14 mg/l (at the distance of 2,500 m) when the Maolingjiang River flows into the Maowei Bay, and recovers rapidly to 6.40 mg/l at the distance of 4,000 m. The minimum of 6.14 mg/l compares favorably to the regulatory threshold of 5 mg/l for both Maolingjiang River (class III of PRC Surface Water Quality Standard, GB 3838-2002) and for Maowei Bay (class III of PRC Marine Water Quality Standard, GB 3097-1997). The forecasted DO profile along the Maolingjiang River and Maowei Bay under the scenario of low-flow and low tide is presented in Figure E-11.

Table E-38: Water Quality of Maowei Bay with Maoling WWTP Concentration (mg/l) at Different Distances (m) from Effluent Outlet 2,510 2,600 2,650 2,750 3,000 3,200 3,500 4,000 4,500 5,000 COD High-tide 5.67 3.66 3.58 3.52 3.47 3.46 3.44 3.44 3.43 3.43 Low-tide 5.52 3.65 3.57 3.51 3.47 3.45 3.44 3.44 3.43 3.43 Inorganic High-tide 0.29 0.21 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.19 nitrogen Low-tide 0.32 0.21 0.20 0.20 0.20 0.19 0.19 0.19 0.19 0.19 Active High-tide 0.049 0.030 0.030 0.030 0.030 0.028 0.028 0.028 0.028 0.028 phosphorus Low-tide 0.049 0.030 0.030 0.029 0.029 0.028 0.028 0.028 0.028 0.028 Note: Class III of PRC Marine Water Quality Standards (GB 3097-1997): COD = 4 mg/l; inorganic N = 0.40 mg/l; active P = 0.030 mg/l. Note: Domestic EIA, August 2010.

Figure E-11: DO Profile along Maolingjiang River and Maowei Bay

224. Project Associated Facility. In addition to serving the Maoling industrial park, the WWTP will also treat municipal sewage of the Maoling town. The Maoling town sewerage network will be built with domestic financing. The feasibility study and environmental impact assessment for the Maoling town sewerage network were prepared. A due diligence review of the EIA was undertaken. The sewerage network will improve ambient surface water quality, sanitation conditions of the town, public health for local residents and local investment environment. The identified potential negative impacts are associated with construction, including soil erosion and siltation of drainage system, and traffic annoyance. These construction impacts will be mitigated by the measures as recommended in the section on construction impacts and mitigation measures which will not be repeated here.

225. Industrial Wastewater. As required by the PRC, industrial wastewater discharged to the project sewer and WWTP will be pretreated to meet the PRC Standards for Water Quality of Wastewater Discharged into Municipal Sewage Sewers (CJ3082-1999). Illegal discharge of industrial wastewater could have major toxic effects on microorganisms and the wastewater treatment process. To prevent these effects, the following mitigation measures will be implemented: (i) water quality in the municipal sewer systems in the WWTP subproject areas will be monitored at least four times a year by the local environmental protection bureau (EPB); and (ii) in case of noncompliance, the enterprise will be required to install additional facilities with a time-bound plan, plus a fine.

226. Monitoring. The WWTP will be required to comply with the class 1B of the PRC Standards for Pollutant Discharges of Municipal WWTPs (GB18918-2002). In accordance with the PRC Guideline on Environmental Protection Audit upon Completion of Construction Projects (1991), the WWTP will undergo an audit within three months of trial operation against the mitigation measures contained in the EIA. On-line monitoring equipment will be installed to monitor the water quality of the effluent. Regular maintenance will be implemented strictly to ensure normal operation of all equipment.

227. Sludge Disposal. The WWTP will produce 11.1 t/d of sludge after mechanical dewatering. The dewatered sludge will have a water content of approximately 80%. The sludge will be put into geotextile tubes and kept in the storage room for natural drying. The storage room will be covered, and the floor will be lined with membrane. The naturally dried sludge will be transported in sealed containers to the municipal sanitary landfill. The municipal landfill has agreed to accept the sludge. In view of the fact that aerobically treated sludge is difficult to dewater and it might be difficult to achieve a higher dewatering efficiency using geotextile tubes, more detailed analysis will done during the detailed design phase to identify the best mechanical unit to dewater the sludge. When the second phase of the WWTP becomes operational, the generation of sludge will increase. With the advancement of technology, the WWTP will explore new ways of beneficial reuse of the sludge, after laboratory testing confirms the non-existence of toxic chemicals.

vi) Climate Change Mitigation and Resilience

228. Climate Change Mitigation. The project will contribute to climate change mitigation in two major ways. First, the improvement of road conditions will increase fuel efficiency and thus reduce the emission of greenhouse gases (GHGs). Second, the project roads will adopt energy- saving LED street and traffic lights which also help reduce GHG emissions. Moreover, a change in siting of the Maoling WWTP, suggested by the PPTA consultants, has resulted in considerable energy savings that will also lead to the reduction of GHG emissions. The estimated energy savings and associated GHG emission reductions are summarized in Table E-39.

Table E-39: Estimated Energy Savings and GHG Emission Reduction Average Annual GHG Average Annual Emission Reductions Type of Energy Savings (tons of CO2 equivalent) Fuel (liter) 436,700 1,076.5 Beihai Zhulin Road Electricity (kWh) -- -- Fuel (liter) 535,840 1,320.8 Beihai Yingpan Road Electricity (kWh) 464,280 462.9 Fuel (liter) 83,243 205.2 Qinzhou Xincheng Road Network Electricity (kWh) 1,068,500 1,065.3 Fuel (liter) 458,650 1,130.6 Fangcheng-Jiangshan Road Electricity (kWh) -- -- Maoling WWTP Electricity (kWh) 1,798,000 1,792.6

Fuel (liter) 1,514,433 3,733.1 Total Electricity (kWh) 3,330,780 3,320.8

Grand Total (Average Annual CO2 Emission Reduction) 7,053.9 Note: Emission factors recommended by the PRC National Statistical Bureau: gasoline = 2.30 kg-CO2/liter; diesel = 2.63 kg-CO2/liter; electricity = 0.997 kg-CO2/kWh. Fuel is assumed to be 50% of gasoline and 50% diesel, thus the emission factor is averaged to be 2.465 kg-CO2/liter. Electricity savings are from the use of LED in comparison to high-voltage sodium lamp. Fuel savings are from road improvements with saturated traffic, except for: i) Qinzhou Xincheng road network for which the fuel saving is in comparison to the second best alternative of locating the residential site in the main urban center; and ii) Maoling WWTP for which the electricity saving is in comparison to selecting the second best alternative site where additional sewage pumps are needed. Source: Energy saving data is compiled from domestic FSRs and EIAs, August 2010.

229. Climate Change Adaptation. Climate resilience considerations have also been incorporated into the project design. For the Qinzhou Xincheng road network, the elevation of the road is raised to 7.8 m compared to the once-in-100-year flood level of 4.5 m. The use of permeable pavement will be adopted for the project roads (Figure E-12). This can have at least

three major benefits. First, pervious interlocking paving blocks bedded in coarse aggregate with 15% open cell area can have a permeability index up to 0.032~0.044 mm/s while the average yearly (1995-2005) maximum hourly rainfall for the three project cities is approximately 0.028 mm/s 12 . This will effectively mitigate floods, protect drainage systems and recharge the groundwater aquifer, thus increasing the climate resilience of the project roads13. The use of permeable blocks will be refined in the detailed design stage.

Figure E-12: Typical Cross-Section of Permeable Pavement

vii) Risk of Accidental Spills and Mitigation Measures

230. Main Environmental Risks Related to Roads. One of the major environmental risks for the road projects is the accidental release of hazardous and toxic substances during the transportation process. For the Qinzhou Xincheng road network, transport of such substances will not be permitted, and the risk is relatively low. Beihai Yingpan road is close to an industrial area, and the risk is relatively high. The risk for the Beihai Zhulin and Fangcheng-Jiangshan roads is medium.

231. National Master Plan for EPR. The occurrence of public safety accidents in the PRC is increasing in recent years. This has prompted the various levels of government to put in place emergency preparedness and response (EPR) procedures. The National Master Plan for Public Emergency Preparedness and Response was released by the State Council on 8 January 2006. The national master plan establishes the principles, policy and institutional framework for preparing and responding to public emergencies. It classifies public emergency events into four general categories: (i) natural disasters, including flood and drought, meteorological calamities, earthquakes, geological hazards, marine disasters, biological disasters and forest and grassland fires; (ii) accidental disasters, such as various industrial and mining safety accidents, transport accidents, public facility accidents, environmental pollution and ecological damage; (iii)

12 Qiu Pingzhu and Tang Bingna. 2007. Analysis of Rainfall Intensity in Guangxi. Journal of Meteorological Research and Application, Vol. 28, Supplementary Issue, pp. 50-52. 13 The permeable paving blocks can also remove COD by 30%, SS by 60%, total nitrogen (TN) by 25% and total phosphorus (TP) by 25%. They can also improve the microclimate of the road surface by reducing road surface temperature by 2~50C. See, for example, Virginia DCR Stormwater Design Specification No. 7: Permeable Pavement, Version 1.7, March 8, 2010. Lu Qing. 2007. Permeable Paving Blocks: Making Road Environment- Friendly, Beijing Science and Technology Commission.

public health emergencies, including outbreak of infectious diseases, occupational diseases, animal diseases and food poisoning; and (iv) social safety events, related to terrorist attacks, economic safety and international emergencies. They are further divided into four classes: (i) extremely serious as class I; (ii) very serious as class II; (iii) quite serious as class III; and (iv) serious as class IV, requiring corresponding levels of responses.

232. GZAR Master Plan for EPR. The GZAR Government proclaimed the provincial master plan for public emergency preparedness and response in 2004, and the project cities released their municipal plans in 2006. Sectoral plans in respect to earthquakes, floods, chemical spills and public health emergencies, institution-based plans (enterprises, schools, hospitals, etc.) and areal plans (e.g., Qinzhou port industrial zone emergency plan, Beihai Tieshan port industrial zone emergency response plan) have also been formulated in the various levels of administration.

233. EPR in Project Cities. A schematic representation of the Qinzhou environmental emergency response system is presented in Figure E-13. The main elements of the Qinzhou port industrial zone emergency response plan are summarized in Table E-40. The environmental emergency response systems of Beihai and Fangchenggang have a similar structure.

Figure E-13: Qinzhou Environmental Emergency Response Organizational Structure

Table E-40: Qinzhou Port Industrial Zone Emergency Response Plan Element Requirements 1 Coverage Production facility area, storage area, environmental protection targets 2 Organization Emergency offices and personnel in factories and non-industrial establishments 3 Level of emergency and Level of emergency will trigger corresponding response procedure response 4 Response and rescue tools Response facilities, equipment and instruments 5 Early warning and Early warning and communication means, channels, transportation and communication traffic control 6 Inspection and monitoring Professional teams will be responsible for reconnaissance, monitoring, and assessment of the nature, parameters and consequences of the emergency, for the purpose of informed decision making 7 Containment and cleanup Pollution containment and cleanup measures and equipment for emergency site, adjacent area and fire control area 8 Evacuation Evacuation planning and organization, medical rescue and public health protection 9 Termination and restoration Emergency termination procedure and post-emergency restoration plan 10 Training Emergency preparedness and response training and drills 11 Public education and information Public education and information dissemination program for local communities

234. In case a transport-related environmental emergency would occur, the witness can call 12369 (a dedicated 24-hour number nationwide for environmental emergencies) or 12345 (a hotline nationwide for mayor’s office) or any of the general public emergency telephone numbers, including 110, 119, 120 and 122. The emergency numbers will be posted along the roads and on the bridges. After receiving the witness report, an emergency response team will be immediately dispatched to assess the situation, and then appropriate reporting, response, monitoring and evacuation (if necessary) actions will be triggered. When special chemicals are involved, expert advice will be sought. Environmental emergency response drills are carried out regularly in the project cities.

235. During project preparation, extensive consultations were undertaken with the municipal environmental emergency response leading groups and the municipal environmental emergency response command offices of the project cities. The project roads will be included in the existing environmental emergency preparedness and response systems. Moreover, the banning of the transport of hazardous, toxic and dangerous goods in the inner city roads in the Qinzhou Xincheng network will be stringently enforced by the local transportation and police bureaus. An emergency holding and clean-up reserve fund of CNY 200,000, together with an emergency monitoring fund of CNY 50,000, will be set aside for each road project. The two funds are incorporated into the environmental protection investment plan as well as the overall project investment plan.

236. Environmental Risks Related to Maoling WWTP. There is a risk of accidental release of high-concentration wastewater at the Maoling WWTP, due to a possible malfunctioning of the electric, mechanical or control system, or the failure of the biological treatment process as a result of shock loads or chronic system overload. This risk has been identified and assessed in the domestic feasibility study report and the domestic EIA. The proposed mitigation measures include: (i) spare parts for key components; (ii) regular inspection and proper maintenance of the WWTP; (iii) regular staff training; and (iv) automated online, real-time monitoring of influent and effluent quality. An emergency holding pond with a volume of 15,000 m3 will be used to deal with a possible accidental release. The estimated investment of CNY 8.56 million for the emergency holding pond, together with an emergency environmental monitoring reserve fund of

CNY 50,000, has been incorporated into the overall investment project budget. The 12 hours of holding time will allow adequate time for emergency repairs to the malfunctioning system. Each enterprise also has a 12-hour holding pond which will be called into use if and when an accidental release from the Maoling WWTP would occur. An in-house analytical lab will be established prior to operation of the WWTP. The major analytical equipment will include the following: wastewater sampler, pH meter, flow meter, conductivity meter, UV/VIS spectrophotometer, DO meter, COD speedy tester, thermostat incubator, electric balance, centrifuge and Muffe furnace. An emergency preparedness and response plan will be formulated and put in place before the WWTP becomes operational. The emergency preparedness and response plan will address, among other things, training, resources, responsibilities, communication, procedures, and other aspects required to respond effectively to emergencies associated with the risk of accidental discharges. Appropriate information about emergency preparedness and response activities, resources, and responsibilities will be disclosed to affected communities.

viii) Occupational and Community Health and Safety

237. Operational Safety for Roads. Concerns over the community safety of project roads have been thoroughly examined during project preparation. The inner-city roads for Qinzhou Xincheng road network have pedestrian lanes, and other roads have pedestrian paths. All roads have separate lanes for non-motorized traffic. The pedestrian lane, non-motorized lane and motorized lanes are separated by curb stones and green barriers (Figure E-14). Pedestrian- priority push-button traffic lights, safe islands, crosswalks (zebra lines), boarding bays/islands and barrier-free lanes will be established at all intersections for the Qinzhou Xincheng road network (Figure E-15 and Figure E-16). Moreover, road ramps are designed to ensure safety entry and exist of vehicles, including degree of curvature, vehicle limit, guardrails and reflectors. Sufficient road signs will be properly designed and placed in necessary locations. School and community traffic safety program will be designed and implemented for the class-I roads (Beihai Zhulin road, Beihai Yingpan road and Fangcheng-Jiangshan road). Road maintenance sites will be properly sealed, ahead signs placed and adequate number of safety officers posted to direct traffic. Road maintenance vehicles will be installed with warning lights, and staff will wear safety hats and reflective garments and undergo safety training.

Figure E-14: Lane Separators for Beihai Yingpan Road

Figure E-15: Safety Islands and Crosswalks for Qinzhou Road Network

Figure E-16: Barrier-Free Lane for Qinzhou Road Network

238. Occupational Health and Safety for Maoling WWTP. Wastewater treatment plant operators may be injured by slips, trips and falls on wet floors; by falls into treatment ponds, pits, clarifiers or vats and by splashes of hazardous liquids; they may suffer cuts and pricks from sharp tools, contusions, etc. They are exposed to hazards related to work in confined spaces. Other common hazards include electric shock, explosions, entanglement in moving machinery and so on. The following measures will be implemented to safeguard the safety and health of WWTP operators: (i) use safety shoes or boots with non-slip soles; (ii) wear personal protective equipment and chemical resistant clothing to avoid exposure of skin or eyes to corrosive and/or polluted solids, liquids, gases or vapors; (iii) post safety instructions in each workshop regarding the storage, transport, handling or pouring of chemicals; (iv) check electrical equipment for safety before use; verify that all electric cables are properly insulated; take faulty or suspect electrical equipment to a qualified electricity technician for testing and repair; (v) wear safety goggles in all cases where the eyes may be exposed to dust, flying particles, or splashes of harmful liquids; (vi) wear respiratory mask in the sludge dewatering and de-odor workshops and when moving and transporting sludge; and (vii) obey all safety instructions concerning entry into confined spaces, e.g., check atmosphere for oxygen or for poisonous gases, use respiratory protection equipment if needed, have a co-worker stand guard in case of need for help, etc. Moreover, all workers will undergo periodic examinations by occupational physician to reveal early symptoms of possible chronic effects or allergies. Finally, health and safety will be incorporated into the regular staff training programs. The safety and health of the workers are therefore safeguarded.

239. Community Health and Safety for Maoling WWTP. There is a community health concern related to the emission of foul odor and the discharge of effluent from the Maoling WWTP. The assessment has concluded that: (i) the ambient air and water quality surrounding the WWTP will meet the national standards; and (ii) the measures to mitigate the accidental release of effluent, including the supply of spare parts and the use of a holding pond, are adequate. The community health concerns are therefore adequately addressed.

ix) Impacts on Biodiversity and Physical and Cultural Resources

240. Protected Areas. During the EIA studies, legally protected areas and historical and cultural relic sites were identified in order to ensure the protection of biodiversity and physical and cultural resources. The important protected areas and historical and cultural relic sites in the project areas are provided in Table E-41. None of the five subprojects passes through nature reserves or areas with protected physical and cultural resources. The potential impact of the Fangcheng-Jiangshan road on the Wanheshan nature reserve was discussed earlier. Because of the long distances between the road alignments and WWTP site, the impact of the subprojects on the other sites of ecological, historical and cultural significance is assessed to be nil or minimal.

Table E-41: Nature Reserves and Historical and Cultural Relics in Project Cities Direction to Distance Level of Name Road (km) Protection Targets Protection Beihai Zhulin and Yingpan Roads Nature Reserves/Protected Areas Closest Direction to Distance Level of Name Road (km) Protection Targets Protection Shakou mangrove nature reserve E 35 Mangrove forest, wetland National ecosystem Hepu county dugong nature reserve SE 44 Dugong (sea cow), wetland National ecosystem Golden coast mangrove nature SW 8 Mangrove forest, wetland Provincial reserve ecosystem Dangjiang mangrove nature reserve W 16.5 Mangrove forest, wetland Provincial ecosystem Weizhou island birds nature reserve S 90 Migratory birds, wetland Provincial ecosystem Historical and Cultural Relics Hepu ancient tombs protection area SE 40 Ancient tombs National Dashige temple SE 40 Ancient temple National Bailong pearls town protection area E 3 Historical town Provincial Beihai ancient town protection area E 14 Ancient architecture, ancient Municipal wells, old trees

Qinzhou Xincheng Road Network Nature Reserves/Protected Areas Qinzhouwan mangrove forest nature S 5 Mangrove forest, wetland Provincial reserve ecosystem Maowei bay mangrove forest nature SW 10 Mangrove forest, wetland Provincial reserve ecosystem Historical and Cultural Relics Sanjiangwan scenic area S 50 Coastal tourist area National Wenbi pagoda N 3 Qing dynasty building Provincial Qinzhou county ancient town N 30 Ancient architecture Provincial

Fangcheng-Jiangshan Road Nature Reserves/Protected Areas Beiluhe estuary mangrove nature SW 3 Mangrove forest, wetland National reserve ecosystem Fangcheng jinhua tea nature reserve NW 35 Jinhua tea National Wanheshan heron nature reserve W 86 m Herons County Historical and Cultural Relics Bailong ancient fortress NE 5 Historical relics National

Maoling WWTP Nature Reserves/Protected Areas Maowei bay mangrove forest nature E 25 Mangrove forest, wetland Provincial reserve ecosystem Historical and Cultural Relics Beiqiu relic site NE 3 New stone age coastal Provincial settlement Source: Domestic EIAs, August 2010.

241. Flora and Fauna. There are no rare, threatened, or endangered species within the construction boundaries (with the exception of the Wanheshan nature reserve). But special precautions shall be taken during and after construction for the protection of small animals, reptiles, and birds of common species that live in vegetated roadside areas, medians, embankments and slopes, inner areas of bridges, etc. The potential impacts of the Project on flora and fauna include removal of vegetation and disruption of the ecosystem during construction. In particular, the cutting and filling for roadbed constructions will alter the original landscape and vegetation. As a result, some birds and small mammals and reptiles that inhabit these areas will be dislocated. Measures to mitigate the impact to flora will include the following: (i) preserve existing vegetation where no construction activity is planned, or temporarily preserve vegetation where activity is planned for a later date; (ii) protect existing trees and grassland during road, bridge and sewer network constructions; where a tree has to be removed or an area of grassland disturbed, replant trees and re-vegetate the area after construction; (iii) remove trees or shrubs only as the last resort if they impinge directly on the permanent works or approved necessary temporary works; and (iv) in compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation. More details about the loss of forest and farmland resources and the compensation measures can be found in the following paragraph.

242. Loss of Physical Resources: The use of physical resources by the proposed project is shown in Table E-42. Monetary compensation will be provided to the owners of the physical resources in accordance with applicable PRC laws and regulations and ADB policies. The monetary compensation will be used to relocate or rebuild the ground attachments and auxiliary facilities. Both the PRC Land Administration Law (2003) and Forest Law (1998) require “no net loss” for the temporary and permanent acquisition of farmland and forest land for the purpose of development projects. In accordance with the PRC Land Administration Law (2003), the temporarily occupied land will be required to be restored to the original state in addition to monetary compensation for inconvenience. The proposed project will not involve “basic farmland” for which the PRC has stringent policies for its protection for the purpose of safeguarding food security. For permanent acquisition of farmland, a payment will be made to an earmarked “land reclamation fund” administered by the municipal land resources bureau (LRB). The LRB will use the payment to reclaim the equivalent quantity of the farmland lost to

the project. The current standard for reclamation fee in Guangxi is as follows: CNY 200,000 per ha for irrigated farmland and CNY 120,000 per ha14.

243. For the permanent acquisition of forest land, a payment will be made to an earmarked “forest cover restoration fund” administered by the municipal forestry bureau. The forest bureau will use the earmarked fund to reforest an equivalent area of the forest land lost to the project. The current standard for the reforestation fee ranges from CNY 20,000 per ha for urban landscaping forest land to CNY 80,000 per ha for ecological protection forest and CNY 100,000 for state-protected or special-purpose forest land15. The proposed project will comply with the “no net loss” regulatory requirement, and therefore, there will be no net loss of forest land and farmland as a result of the project. In addition to the “no net loss” compensatory reforestation, a total of 174 ha of landscaping (tree planting) for the project roads and the special protection and enhancement reforestation measures in the Wanheshan section of the Fangcheng-Jiangshan road will be established at a total investment of approximately CNY 57 million. Taken the “no net loss” compensatory reforestation and the roadside landscaping and Wanheshan reforestation together, the total reforested area for the project as a whole will amount to 272 ha, compared to the loss of woodland at 98 ha as a result of project construction.

Table E-42: Affected Physical Resources in Project Cities Qinzhou Fangcheng- Beihai Zhulin Beihai Yingpan Xincheng Road Jiangshan Road Road Network Road Maoling WWTP Total Land Acquisition (ha) Perm Temp Perm Temp Perm Temp Perm Temp Perm Temp Perm Temp Farmland (ha) 18.22 23.42 2.04 38.74 1.83 33.33 3.63 2.00 3.30 115.71 10.80 Woodland (ha) 6.55 3.65 3.96 47.83 35.60 1.62 4.33 6.00 97.96 11.58 Grassland (ha) 1.70 0.60 24.55 0.33 26.58 0.60 Fish pond (ha) 4.63 3.84 16.76 11.90 1.27 1.25 26.50 13.15 River (ha) 7.63 0.22 7.63 0.22 Salt farm (ha) 12.68 12.68 0.00 Wasteland (ha) 1.75 0.59 1.16 21.20 1.23 0.50 22.95 3.48 Roads (km) 1.06 0.40 1.46 0.00 Drainage facilities (ha) 0.48 0.48 0.00 Agricul. facilities (ha) 1.47 1.47 0.00 Village resid. land (ha) 5.28 0.04 2.85 0.12 8.13 0.16 Other (ha) 0.11 14.27 14.38 0.00 0.00 0.00 Total 50.48 0.00 56.66 7.45 130.73 15.01 91.40 7.73 6.66 9.80 335.93 39.99

Ground Attachments and Auxiliary Facilities Housing demolition 6.88 6.41 15.97 0.69 5.15 35.10 (000 m2) Public toilets (no.) 5 6 5 16 Fruit trees (no.) 35 35 Walls (m) 2.00 168.00 300.00 470.00 Wells (no.) 1 5 2 8 Animal pans (m2) 45.00 45.00 Biogas digester (m2) 15.00 15.00 Graves (no.) 235 235 Power/telecom line (km) 0.23 37.28 1.00 8.70 47.21 Power/telecom poles 2 68 5 75 (no.) Parking lot (m2) 200.00 200.00 Source: Domestic resettlement plans, August 2010.

14 Announcement on Adjusting Land Reclamation Fees, GZAR Finance Department, GZAR Land Resource Department and GZAR Price Bureau, 15 October 2009, Gui Cai Jian [2009] No. 254. 15 Interim Guideline on Collection and Use of Forest Restoration Fees, Ministry of Finance and State Forestry Administration, 2003.

x) Socioeconomic Impacts

244. Land Acquisition and Resettlement. The physical quantities of the land acquisition program for the proposed project are provided in Table E-42. Based on the resettlement impacts identified, the implementation of the proposed project will affect 13 rural villages, two resident communities, two farms, four townships, one county, and four districts. The permanent land acquisition will affect 724 households or 4,710 people. Temporary acquisition will affect 642 households or 3,173 persons. A total of 234 households or 1,045 people will be relocated. Of the total area of permanent land acquisition, 36.44 ha are illegal shrimp ponds developed by the local and absentee villagers will be removed. Of the total population to be affected by permanent land acquisition, 20 households or 85 persons are employees of the Sanhekou state farm and 1,415 persons are employees of the Zhulin salt farm. Both farms are located in Beihai under the proposed Zhulin road. In addition, associated productive assets, ground attachments, and basic infrastructure and facilities will also be affected. Of the 724 households and 4,710 persons affected by permanent land acquisition and house demolition, 13 households and 71 persons are minority households (5 Zhuang households or 28 persons, 6 Yao households or 35 persons, and 2 Jing household or 8 persons), and 231 households or 1,587 persons are vulnerable groups, including 125 households living under minimum living guarantee (MLG), and 37 households with “five guarantees,” 6 women-headed households, 13 disabled households, and 50 extremely poor households.

245. A full resettlement plan (RP) has been prepared for each subproject in accordance with PRC laws and regulations and ADB’s Safeguard Policy Statement (2009). The RPs will be updated based on census of affected persons (APs) and detailed measurement survey and submitted to ADB for review and approval prior to award of civil works contracts. The RPs provide a socioeconomic profile of affected persons and scope of impacts, and they address issues related to compensation entitlement, the legal framework, public consultations, grievance procedures, environmental protection, rehabilitation measures, and budget and implementation milestones. Resettlement requirements have been carefully considered and incorporated into the project design.

246. Based on consultations with local governments and those affected, and general practice in GZAR and the three cities of Beihai, Qinzhou and Fangchenggang, a set of compensation standards was adopted by the respective city project management office (PMO) and IA. The resettlement strategy encompasses (i) the replacement of housing, and (ii) the restoration of livelihoods and income. For people losing land, cash compensation will be paid to the APs to be used for tertiary industry development. For people losing housing, they will receive “cash compensation” or “cash and reconstruction house land” within the same villages or “cash and purchase of new houses” in the resettlement sites or other places. Assistance will be provided to enable APs for allocation of reconstruction house land, construction of new houses, or locating available housing close to their original homes, if that is their preference. The respective city PMOs, IAs and local governments will provide necessary assistance for house construction and relocation during resettlement implementation. All APs will be adequately informed on eligibility for compensation, compensation standards, livelihood and income restoration plans, and project timing. Timely payment of compensation will be made to APs. No land acquisition, demolition or dispossession of assets will take place prior to satisfactory compensation of APs.

247. The measures for economic rehabilitation include: (i) provision of employment opportunities during project construction and operational phases; (ii) provision of social

insurance; (iii) non-agricultural production, including development of self-employed tertiary businesses (i.e. purchase of construction equipment for rental income, clothing, grocery, transportation, cargo, community service, home electronics repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, food catering and hotel services and (iv) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses. For vulnerable groups, attention and assistance will be given to their special needs and expectations. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing arrangement, special fund and MLG, and assistance to restore their living conditions and incomes.

248. Extensive consultations with the APs and other key stakeholders have been undertaken through meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings. Their views and expectations have been integrated into the RPs. The APs will be notified about the key elements of the RP, in the form of a resettlement information booklet (RIB), prior to ADB management review meeting (MRM). The BMG, QMG, FMG and concerned district/township governments will implement ADB’s full disclosure policy for resettlement activities, including: (i) distribution of the RIBs to the APs and village offices and resident community office; and (ii) posting of the RPs in Chinese at village offices and resident community offices, and on the ADB website in English and Chinese before the MRM. The IAs will establish project resettlement units for supervising implementation, continuing public consultation, monitoring resettlement progress, and responding to grievances. The grievance address procedures are well established and explanations are included in the RPs and RIBs.

249. RP implementation will be monitored internally and externally. Monitoring methodologies are specified in the RPs. Internal supervision and monitoring will be done by qualified agencies or individuals engaged by the IAs to ensure compliance with the provisions of the RPs. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of resettlement. These reports will be submitted to ADB, EA, and the IA, and will be uploaded to the ADB website.

250. The land acquisition and resettlement will be implemented between 2011 and 2014. The preliminary cost estimate for the land acquisition and resettlement program is CNY 411.87 million or equivalent to $60.57 million. The estimated costs cover compensation for permanent land acquisition, temporary land occupation, demolition houses and auxiliaries, relocation allowance, basic infrastructure and special facilities, other costs, land-related taxes, and contingencies. The costs are included in the project investment and financing plans.

251. Economic Displacement. The Zhulin salt farm is located in Zhulin urban cluster, Fucheng Township, Yinhai district of Beihai city, within the area of Beihai Zhulin road and associated infrastructures subproject. The farm is 28 km away from the central town of Beihai city. At present, the land uses of the Zhulin salt farm and Zhulin cluster are mainly salt field and shrimp ponds. According to the Beihai City Urban Master Plan (2008-2025) and Beihai City Zhulin Cluster Concept Plan (2010), the Zhulin cluster will be developed and constructed into a comprehensive service center cluster. The implementation of this plan, which includes the restructuring and modernization of the Zhulin salt farm, will affect 1,415 employees. A comprehensive re-employment plan has been developed which will ensure economic rehabilitation of affected workers through: (i) provision of employment opportunities during the project construction and operational phases; (ii) provision of social insurance; (iii) non- agricultural production, including development of self-employed tertiary businesses; (iv) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses; and (v) provision of social insurance program to the

APs. The Zhulin salt farm will gradually switch to the development of other sectors and all the employees will be re-employed in relevant industries and the local governments and the IA will ensure that no job will be lost. For vulnerable groups, attention and assistance will be given to their special needs and expectations. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing arrangement, special fund and MLG, and assistance to restore their living conditions and incomes.

252. Impact on Ethnic Minorities. Ethnic minority people account for 23.67% of the direct project area of the three coastal cities. The social analysis determined that they are socially and economically integrated with the Han population, and the potential impacts of the Project on ethnic minority people will be the same as its impacts on the Han population. Negative impacts are anticipated to be limited to resettlement and appropriate mitigation has been assured in the resettlement plans. Adequate outreach will be assured in the public road safety program and environmental awareness raising program through the use of appropriate languages in materials produced.

253. Other Social Issues. No other social risks and/or vulnerability are anticipated as a result of the project. The project construction workers will be engaged locally. Prevention and control of transmissible diseases and HIV/AIDS, and community disturbance training and sensitization will be provided to the contractors, as well as drug and human trafficking education will be provided the local communities, ensured in the loan assurances and monitored in the social action plans. Core labor standards will be implemented. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men, (iii) pay equal wages for work of equal value, and to pay women’s wages directly to them; and (iv) not employ child or forced labor. Specific targets for employment have been included in the gender action plan (GAP).

xi) Cumulative Impacts

254. The assessment of cumulative impacts began in the early 1970s when it was realized that proposed projects needed to be analyzed in relation to their location and surrounding land uses. Further, agencies that processed multiple concurrent permit approvals for similar types of projects also realized that such approvals needed to incorporate consideration of all applications in close spatial and temporal proximity to each other, as such actions often contribute to cumulative effects. A simple definition is as follows: “cumulative effects are changes to the environment that are caused by an action in combination with other past, present, and future human actions.” In practice, cumulative impacts are best dealt with by strategic environmental assessment (SEA), also referred to as Programmatic EIA in the US and Plan EIA in the PRC.

255. During the preparation of the domestic EIA, special attention was paid to the air pollution effect of the Qinzhou port industrial zone (QPIZ) on the Xincheng area as a centralized residential community for the entire QPIZ. The Qinzhou city urban master plan (2008-2020) and the plan EIA for the QPIZ were reviewed. The urban master plan covers the detailed location analysis of the different functional zones and areas within the planned Qinzhou city urban area, including the environmental suitability; and the environmental chapter of the urban master plan contains the plans for urban pollution control facilities. The plan EIA covers, among other things, cumulative impacts of the proposed developments within the QPIZ, including the Xincheng area as a centralized residential community for the QPIZ.

256. According to the urban master plan, the maximum daily sewage generation is forecasted to be 54,000 m3/d, and the average daily sewage generation is estimated at 41,500 m2/d. The

sewage will be collected through the sewerage network, which will be part of the proposed project roads, and transmitted to the Dalanping WWTP. Located at the corner of 8th avenue and 5th road within the Dalanping industrial subdivision, the Dalanping WWTP is under construction and scheduled for completion by the end of 2011. The design capacity is 50,000 m3/d for the short-term (phase I), with room for expansion to 200,000 m3/d (phase II). The effluent will meet the class 1A of the PRC Pollutant Discharge Standard for Urban WWTPs (GB 18918-2002). It will be discharged into the Qinzhou bay whose quality will meet the class I of the PRC Marine Water Quality Standard (GB 3097-1997).

257. The volume of solid waste for the Xincheng district is predicted to be 170 t/d when the district is fully developed. The solid waste will be transported to the Shimenkan sanitary landfill, about 18 km north of the Qinzhou port industrial zone. Occupying an area of 25.3 ha and coming into service in 2006 with a planned life of 25 years, the landfill has a capacity of 1.88 million m3 and daily processing capacity of 500 t/d. The landfill has a composting facility for manufacturing organic fertilizers. The leachate is collected and treated. The landfill design has taken into account the solid waste from the Xincheng district. The solid waste generated in the Xincheng district will be dropped by the individual households into the garbage containers. The containers will then be transported to the district transfer station where the recycles will be collected for sale to recycling stations. The remaining waste will be transported by sealed garbage trucks to the landfill. The garbage collection, transportation and disposal are the responsibility of the city’s urban sanitation bureau.

258. The air quality simulation conducted in the framework of the plan EIA took into consideration the background concentrations and the incremental emissions from the QZIP and the air-shed characteristics. The predicted air quality for the Xincheng area meets the designated class-II of the PRC Ambient Air Quality Standards (GB 3095-1996). The air quality predictions were made on the basis of background concentrations of the pollutants from the QPIZ and the contributions from the proposed project roads. Details of the air quality predictions can be found in an early section in this chapter.

259. The plan EIA of the Beihai Tieshan port industrial zone (TPIZ) was also reviewed in the context of the proposed Yingpan road. The maximum allowable emissions for TPIZ for 2010 to meet the applicable air quality standards are predicted to be 3,710 t/a for SO2 and 1,870 t/a for TSP. The assimilative capacity of the water environment for 2010 is 14,235 t/d for COD, and 1,051 t/d for NH3-N, 529 t/a for petroleum. The cumulative impacts of the TPIZ and the proposed road are assessed to be within the carrying capacity of the local environment. There is a conceptual plan for the modern Yingpan fishery zone to the west and north of the proposed road corridor. When the proposal proceeds to the master plan stage, a plan EIA will be prepared in accordance to the PRC Regulation on Plan EIA (2009). The conduct of the plan EIA has been included in the list of assurances for the project.

260. Moreover, the Beihai Zhulin district is planned to be developed into a commercial- recreational-tourist-residential area. A preliminary conceptual plan has been prepared. When the proposal proceeds to the master plan stage, a plan EIA will be prepared in accordance to the PRC Regulation on Plan EIA (2009). The conduct of the plan EIA has been included in the list of assurances for the project.

261. Based on the due diligence review, the cumulative impacts for the concerned subprojects are within the carrying capacities of the areas. Summaries of the urban master plans and plan EIA are provided in Appendix C.

F. ANALYSIS OF ALTERNATIVES

1. Environmental Considerations

261. During the project preparation, various alternatives have been proposed, screened against technical, economic, energy efficiency, as well as environmental criteria. In terms of the environmental consideration for the alternatives, the primary objective was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. Alternatives were compared in terms of their potential environmental impact, the feasibility of mitigating these impacts, capital and recurrent costs, impacts on land acquisition and resettlement, suitability under local conditions, as well as emission reduction.

2. Alternatives Related to Roads and Related Facilities

i) With and Without Project Alternatives

262. The proposed project targets the three most important strategic cities in Guangxi, i.e. Beihai, Qinzhou and Fangchenggang, which are relatively poorer areas suffering from poor infrastructure provision. To maximize potentials for strong growth and raise the living standard of the people, in particular the ethnic minorities, Guangxi Autonomous Region Government in its 11th FYP sets high priority to sustainable economic development, through construction and upgrading of the infrastructure, while protecting the environment. Improvement of the road network and accessibility and strengthening of environmental protection and management is crucial to achieving and sustaining inclusive growth in the Beibu Gulf cities. Efficient, safe, and environmentally sustainable roads and related infrastructure is needed to cope with the increasing demand as a result of the trade growth, industrial development and urbanization and also benefit the poor and ethnic minorities.

263. The without-project scenario would result in continued urban infrastructure shortage on quantity or lack of reliable good quality roads in the three cities. The situation would gradually become worsened along with the pressure ascribed by growing population, economic development and the standard of living, weakened competitiveness of the cities and their attractiveness for outside investments, impeded further development of the cities and their economy as well as further improvement of the standard of living for their citizens.

264. Compared to the without-project alternative, the with-project alternative will contribute to vehicular emission reductions and hence improved ambient air quality through more efficient motor vehicle operation, and shorter travel time. It is estimated that approximately 30.3 million liters of fuel can be saved for the first 20 years of operation of the road networks, as a result of the improved road conditions. The use of LED lamps for street and traffic lights will result in savings of 30.7 million kWh of electricity during the first 20 years of operation of the project roads. The fuel and electricity savings will lead to the reduction of CO2 emission by 141,078 tons for the 20-year period, and the improvement of air quality in the project cities.

265. The project will also contribute to climate resilience. The road elevation of the Qinzhou Xincheng road network is raised to 7.8 m compared to the once-in-100-year flood level of 4.5 m, with significant benefit of climate resilience. Climate resilience will also be enhanced through the use of permeable interlocking blocks for pedestrian pavement. Pervious interlocking paving blocks bedded in coarse aggregate with 15% open cell area will have a permeability index up to 0.032~0.044 mm/s while the average yearly (1995-2005) maximum hourly rainfall for the three project cities is approximately 0.028 mm/s. This will effectively mitigate floods, protect drainage

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systems and recharge the groundwater aquifer, thus increasing the climate resilience of the project roads. The permeable paving blocks can also remove COD by 30%, SS by 60%, total nitrogen (TN) by 25% and total phosphorus (TP) by 25%.

266. The improved road conditions will also help reduce traffic congestion and accidents. Economic benefits will include higher efficiency in transporting local raw materials and finished goods to local and outside markets. More tangible and immediate benefits will be the increased employment opportunities directly related to construction and operation. Most of the estimated more than 100,000 person-months of unskilled labor during project implementation will go to the local communities. Indirect employment from related services will generate additional local income during the construction period. In the operational stage, an estimated 2,500 permanent employment positions related to road maintenance, and additional indirect employment opportunities from increased tourists and economic expansion will be created.

ii) Road Alignment

267. Consideration was given to the alignments of roads to ensure that they would improve connectivity to the transportation networks, both new and existing. The alignments were assessed based on a set of selected design criteria, including:

a) Connectivity to the national expressway network in Guangxi; b) Easy access to and from other roads in the region; c) Facilitation of the operation of the overall road networks of the city; d) Projected future regional traffic distribution; e) Easy access without going through downtown and industry areas; f) Minimizing civil works and avoiding sections with unfavorable geological conditions or difficult engineering works such as deep cuts or high fills; g) Minimize construction costs; h) Minimizing environmental impact along the routes; i) Minimizing land acquisition and resettlement; j) Reduce hauling distance for construction materials; k) Minimizing disturbance of existing roads and utilities; and, l) Incorporating the views of local people in selecting the location of proposed interchanges and the arrangement of pedestrian underpasses, and in designing the re-vegetation plan.

268. The comparative analyses of different alignment alternatives for the Beihai Yingpan road and the Fangcheng-Jiangshan road are discussed in section 3 of Chapter F.

iii) Road Pavement

269. Two alternatives were considered in the different road sub-components for road pavement structure, including cement concrete pavement and asphalt concrete pavement. The selection of the road pavement was based on traffic type and forecast, climate, soil and requirements like skid resistance, durability, thermal resistance, permeability, local material supply, hydro-geological conditions, comfort, noise emissions as well as costs of construction and O&M and in accordance with the PRC Specifications for Urban Road Design (CJJ 37- 1992). A comparison of the pros and cons of asphalt and concrete pavements has been undertaken and the results are provided in Table F-1. On the basis of the compar3ative analysis, asphalt pavement is adopted for the Qinzhou Xincheng road network which consists of inner city roads and for 3 km of the Fangcheng-Jiangshan road along the Wanheshan heron

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nature reserve; and concrete pavement will be used for all other roads which are outer city roads and also used for transportation of goods.

Table F-1: Comparison of Asphalt and Concrete Pavements Parameter Asphalt Concrete Load capacity Low High Driving comfort High Low Water stability Weak Strong Thermal stability Weak Strong Landscape effect Good Average Pavement performance Low noise, low vibration, low High noise, high vibration, high dazzle dazzle Design life 15 years 30 years Adaptability to subgrade High Low deformation Maintenance and repair Easy to maintain and repair Difficult to maintain and repair Traffic disturbance during repair Short traffic closure Long traffic closure Average cost of repair and 1,200 600 maintenance (CNY/m2) Investment (CNY million) High Low Source: Domestic feasibility study, August 2010.

iv) Sidewalk

270. Different types of paving materials were considered for the pedestrian sidewalks. The most common types of sidewalk material in the PRC are concrete paving blocks. At present, most concrete paved blocks used in the PRC are non-permeable and the use of permeable blocks is yet not common. To demonstrate the commitment of the project cities to environmental protection and climate proofing, permeable pavers will be adopted for project roads. The permeable interlocking blocks used in the project will have a permeability index up to 0.032~0.044 mm/s while the average yearly (1995-2005) maximum hourly rainfall for the three project cities is approximately 0.028 mm/s. This will effectively keep storm water on site, mitigate floods, protect drainage systems and recharge the groundwater aquifer, thus increasing the climate resilience of the project cities. The permeable paving blocks are estimate to also remove COD by 30%, SS by 60%, total nitrogen (TN) by 25% and total phosphorus (TP) by 25%.

v) Public Utility Conduit

271. Public utility conduits are widely used in developed countries but rarely in the PRC and none in Guangxi Zhuang Autonomous Region cities. Although the initial investment is relatively high and inter-agency coordination is necessary, the use of public utility conduits can produce the following benefits: (i) avoidance of repeated opening of roads by different utility providers for installation, repair and maintenance; (ii) reduced costs of maintenance and repair; (iii) reduced risk of breakage and damage of underground public utilities which are estimated to cause an annual direct economic loss of CNY 5 billion and an annual indirect economic loss of CNY 40 billion for the country 16 ; and (iv) reduced annoyance and disturbance to drivers and local

16 Li Jinfang, Pu Zhiming. 2009. A preliminary study of public utility conduits in Dongping new city, Guangdong province. Building Science, Technology and Management, Vol. 2009, No. 5.

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residents. Statistics show17 that: (i) the breaking of roads in Xiamen runs between 8 times per year (branch roads) and 28 times per year (artery roads); and (ii) reasons for road breaking include the construction of, in an ascending order, nature gas pipelines, sewage and storm sewers, water pipelines, telecommunication cables and power cables (Figure F-1). A comparative cost analysis of public utility conduit with other alternatives was undertaken (Table F-2). In spite of the high financial cost, the IA in Qinzhou has made the decision to adopt public utility conduits for the Xincheng road network. This will serve as a pilot, and which, if successful, will be promoted by the Guangxi Zhuang Autonomous Region development and reform commission in other cities in the autonomous region.

Figure F-1: Road Breaks (Left, Times/Year) and Reasons (Right) in Xiamen City

Table F-2: Cost-Benefit Analysis of Public Utility Conduit for Qinzhou Road Component Integrated Public Utility Conduit Conventional Method Description All utility pipelines and cable (power, All pipelines are buried within the subgrade telecommunication, gas, water, sewage and under the sidewalk during the construction. heating, etc.) are placed in a conduit Maintenance and repair are done by breaking the road.

Implementation Need for inter-agency consultation, No need for inter-agency coordination, easy coordination and integrated management, to implement relatively difficult to implement O&M requirement Easy to O&M O&M is carried out separately, and will get increasingly difficult Direct financial costs Direct costs: Direct costs: (a) Investment (about CNY 20,000/m) (a) Investment (about CNY 2,610/m) (b) O&M (about CNY 830/m) (b) O&M (CNY 0/m)

External costs: (c) Reconstruction of pipelines (d) Road occupation fee (e) Capacity expansion

External costs (b)~(e) are estimated at CNY 6,000/m/a)

External n/a a) Reduced quality of road surface socioeconomic costs b) Increased traffic jam c) Reduced traffic safety

Direct benefit (a) Rental charges n/a (b) Avoided accidental breakages and leakages (c) Avoided loss of inspection well covers

External benefits (a) Social benefits: more efficient use of n/a

17 When will we not repeated open up our roads? http://www.360doc.com/content/08/0415/17/60340_1192346.shtml.

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underground space, land appreciation (c) Environmental benefits: avoided environmental impacts of road breaks (e.g., dust, noise) (d) Disaster prevention benefits: reduced incidence of accidents from all types of construction activities and geological and meteorological hazards

Relative long-term 0.6645 1 cost (over the life of the facilities)

Benefit-cost ratio 2.18 n/a (over the life of the facilities)

Note: Data compiled by PPTA consultants from various sources, including: (i) Guo Ying, Zhu Wenjun and Yang Jun. 2006. “Method and case study on the cost-benefit analysis of urban multiple-purpose tunnel”, Chinese Journal of Underground Space and Engineering, Vol. 2, No. 7, pp. 1,236-1,239; (ii) Xue Weichen, Wang Hengdong and Hu Xiang. 2009. “Economic analysis of the pre-fabricated, pre-stressed public conduit for Shanghai expo park”. Special Structures, Vol. 26, No. 2, pp. 101-104; (iii) “Feasibility study report of the urban public conduit for Phoenix Xincheng district, Tangshan city”, July 2009; (iv) Zhao Qianyu. 2009. “Analysis of healthy development of urban underground “blood vein” – preliminary review of urban public conduits and conventional pipelines”, Engineering and Architecture, 2009, No. 4, pp.44-45; (v) Qiu Yuting. 2008. “Investment and financing model analysis for utility tunnels in Chinese cities”, a dissertation submitted to Tongji University in conformity with the requirements for the degree of Master of Management, March 2008; (vi) Xu, Lijuan. 2007. “Control and management of the costs of municipal facilities”, Urban Roads, Bridges and Flood Control, 2007, No. 7, pp.179-179; (vii) Nie Yongping, et al. 2004. “Cost analysis of public conduits”, Underground Space, Vol. 24, No. 3, pp.377-378; and (viii) Jiang Qunfeng and Zhu Gehong. 2002. “Preliminary analysis of urban public conduits”, Metallurgical Design and Research, Vol. 22, No. 3, pp.46-53.

vi) Street Lighting

272. Two street lighting alternatives were compared, including (i) high-pressure sodium lights, and (ii) LED lights. Both schemes can meet the required lighting standards, but LED light consumes significantly less electricity. According to ADB’s policy to promote pollution prevention and abatement and the national energy conservation policy, LED light was adopted. The comparison of the two alternatives for Beihai Yingpan road as an illustration is presented in Table F-3.

Table F-3: Comparison of Lighting Schemes for Yingpan Road High-Pressure Sodium Light LED Light Indicator (PHILIPS-400W) (PHILIPS-BRP363-240W) Note Light efficiency (Lm/w) 120 120 Equal Life expectancy (h) 10,000 50,000 LED is better Contains mercury and Environment No mercury and lead LED is better lead Daily power consumption 6 kWH 3 kWh LED is better (12 hours) SO emission (0.03 2 0.18 kg 0.09 kg LED is better kg/kWh) CO emission 2 5.98 kg 2.99 kg LED is better (0.997 kg/kWh) High pressure sodium Price CNY 1,400/lamp CNY8,000/lamp light is better

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Maintenance cost CNY 200/lamp/year CNY 25/lamp/year LED is better Annual saved electric cost Electricity price: CNY CNY 1,090 by LED Lamp 0.79/Kwh Annual saved electric and maintenance costs Saved cost by LED light CNY 7,812 multiplied by 11 minus during usage life (11 years) increased initial investment in LED

3. Alternatives Specific to Individual Roads

i) Beihai Yingpan Road Alignment and Nankang River Crossing

273. Bridge Alignment. The main function of the Beihai Yingpan road is to connect the Tieshan port industrial zone with the Yingpan town as a residential community for the industrial zone and to serve the planned ASEAN modern fishery port. It will require the crossing of the Nankang River. Four alternatives were analyzed to cross the river, as illustrated in Figure F-2. Although comprising a 640-m-long bridge at the river estuary, the southern alternative route (red) was selected as the length of the road, land acquisition and resettlement are minimized, and the total investment and operation costs are lower. The bridge will run in parallel to the existing tidal gate at a distance of 10 m upstream.

Figure F-2: Beihai Yingpan Road Alignment and Nankang River Crossing

274. Bridge Type. Two bridge types were considered in the FSR, including (i) continuous pre-stressed concrete whole box girder, and (ii) fabricated-style partial pre-stressed continuous concrete box girder. The comparison was conducted in terms of structure bearing, technological economy, implementation, foundation requirements, aesthetics and financial aspects. Option (ii) was selected mainly for reasons related to investment costs, the length of the construction period, and the foundation requirements.

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ii) Material for Subgrade for Beihai Roads

275. The Beihai Zhulin and Yingpan roads require borrow for the road embankments. The original proposal was to borrow sand from the nearby sea, using a sand-blowing technique. As no environmental impact study was conducted to assess the potential impacts of this alternative on the aquatic environment, the proposal was dropped following the recommendations of ADB and the PPTA Consultants. Instead, the project will use nearby areas as borrow sites. The borrow sites are approved in the soil erosion prevention plans.

iii) Siting of Qinzhou Xincheng Project Area

276. The Xincheng area was selected in the Qinzhou Urban Master Plan (2008-2025) as the site for the full-service community to serve a planned population of 170,000 of the entire Qinzhou port economic development area (QPEDA) when it is fully developed by 2028. With a total area of 138 km2, the QPEDA is surrounded by the sea in the west and south. To the east lies a scenic and tourist area. Situated to the immediate north is a flood plain and power corridor that are prone to flooding risks and electromagnetic radiation. Situated to the north-east is a water catchment that serves as the water supply source for the city and is therefore prohibited from any development. This leaves two alternatives: (i) the Xincheng area that is located on the central north belt within the QPEDA; and (ii) the Qinnan district which is 25 km away. A comparison of the pros and cons of the two alternatives is summarized in Table F-4. It is concluded that with the implementation of mitigation measures, the Xincheng area is more suitable to support the QPEDA and is thus recommended as a proposed community site.

Table F-4: Comparative Analysis of Siting Alternatives for Qinzhou Xincheng Community Issues of Concern Alternative 1: Xincheng Area Alternative 2: Qinnan District Air quality Xincheng is located within the economic As Qinzhou’s main urban area, development area where there will be the Qinnan district is the industrial enterprises, particularly the administrative, financial and petrochemical plant with a capacity of 10 commercial center of Qinzhou million t/a. Air quality has been identified city. There are few industrial as a primary issue of concern. facilities and the air quality meets the class I of the PRC Ambient The strategic environmental assessment Air Quality Standards (GB 3095- undertaken in 2008 for the Qinzhou port 1996). Hence the air quality is economic development zone concluded superior. that the air quality would meet the class II of the PRC Ambient Air Quality Standards (GB 3095-1996).

As part of the domestic EIA undertaken for the project, a more detailed analysis of the air quality impact of the fully operational economic development area on the Xincheng community in terms of PM10, N2O and CO was carried out. The simulation results have shown that the air quality in the Xincheng area by 2028 will meet the class II of the PRC Ambient Air Quality Standards (GB 3095-1996).

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Noise pollution Petrochemical, logistics and pulp and Ambient monitoring data show paper enterprises are located in the that the noise levels in the immediate vicinities of the Xincheng Qinnan district meet the district. However, there is adequate applicable standards except for distance in each side (500 m to 2,000 m) certain traffic-congested areas in to buffer noise impact. PRC Noise Limit for the downtown. Noise-compliant Industrial Enterprises (GB 12348-2008) areas are available to build requires all enterprises to meet the residential communities. residential acoustic quality standards at 200 m from the borders of the factory. With the establishment of green buffers, the noise levels in the Xincheng community are predicted to meet the applicable national standards for urban residential areas.

Risk of flooding The Xincheng area abuts the Jingu river Areas meeting flood control which is a tidal river to its west. Flooding is standards for residential areas identified as a risk. Analysis has shown are available. that the once-in-100-year flood level is 4.5 m. The average elevation of the roads will be 7.8 m which will be able to resist once- in-100-year floods. Future residential development will be required to meet once- in-100-year floods.

Industrial accidents The possible risk of industrial accidents No major risk exists. comes from the petrochemical plant (fire, leak of toxic gas, explosion, etc.). The distance is more than 2,000 meters. Meanwhile, the Qinzhou port economic development zone, petrochemical plant and the Xincheng community will each have an emergency preparedness and response system that will reduce the risk and respond to the accident if it occurs.

Contribution to energy The average daily commuting distance per The average daily saving and emission worker is 8 km. Compared to alternative 2, communicating distance per reduction about 83,243 t/a of fuel will be saved and worker is 50 km. the corresponding reduction of CO2 is estimated to be 205.2 t/a. Source: a) Domestic EIA, August 2010; b) Domestic feasibility study report, August 2010; and c) SEA of the Qinzhou port economic development zone, December 2008.

iv) Road Alignment for Fangcheng-Jiangshan Road

277. Given the environmental sensitivities of the project area especially in regard to the Wanheshan heron nature reserve a number of alternatives have been identified, and the pros and cons of the alternatives have been analyzed. The results of the analysis are provided in Table F-5. The recommended option is to widen the existing roadbed from 8.5 m to 26 m toward the direction away from the nature reserve. This option would have the least possible impact on the nature reserve among all the with-project scenarios while meeting the project

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purposes. The potential impacts, mitigation measures and the significance of the residual impacts are discussed in the following section.

Table F-5: Alternatives Analysis of Fangcheng-Jiangshan Road Alternative Pros Cons 1. Without-project No incremental impacts on Project objectives of improving transport alternative the NR services would not be achieved.

2. Use of inner city road for No incremental impacts on The inner city road was not built to Fangcheng-Jiangshan the NR serve the purpose. It would cause traffic traffic jams of the inner city road, slow down speed and aggravate inner city air pollution.

3. Build a new road away Would reduce the impacts Would affect the feeding grounds of the from the NR on the NR per se herons by reducing the area of wetlands. Would increase cost substantially. Would require larger amount of land acquisition.

4. Use existing roadbed for Would reduce the impacts Would affect the feeding grounds of the one directional traffic and on the NR per se herons by reducing the area of build a new road for wetlands. Would increase cost opposite traffic substantially. Would require larger amount of land acquisition.

5. Keep existing width of the Would not be able to reduce the total section near the NR volume of traffic. Would slow down traffic and cause jams. Speed changes would cause safety concerns.

6. Use existing roadbed and Would minimize occupation Would have possible impacts on the NR widen to the direction of heron habitats compared in terms of traffic noise and vehicle away from the NR to the other with-project lights. (recommended alternatives. alternative) Source: Domestic feasibility study report, August 2010.

v) Design Alternatives for Protection of Wanheshan Heron NR

278. For the purpose of protection of the Wanheshan heron NR in association with the proposed Fangcheng-Jiangshan road, the following design alternatives were identified: (i) without-project; (ii) upgrading road but no widening; (iii) noise-reducing road surface for 3 km of the section along the nature reserve (Figure E-10); (iv) closing of the two openings with thick trees; and (v) closing of the two openings with vegetated hills. Noise impact was predicted for eight combinations of design alternatives. The predicted noise levels of the major design alternatives are presented in Table F-6. As can be seen from the table, the last four alternatives (5, 6, 7 and 8) can meet the applicable noise standards. A decision has been made to use noise-reducing asphalt surface for the 3-km section passing by the nature reserve, at an incremental cost of CNY 1.52 million. It therefore becomes a matter of making a choice between alternative 6 (thick trees to close the two openings), alternative 7 (vegetated hills to close the two openings), and alternative 8 (sound walls to close the two openings). The disadvantage of alternative 7 is the need for acquiring 0.7 ha of farmland. The local environment is dominated by

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low-mountains and hills and farmland is precious for local communities. As such, alternative 6 is less desirable from a social perspective. Alternative 8 of erecting sound walls may cause safety concerns to the drivers in addition to disharmony with the predominantly rural, green landscape. In weighing the four acceptable alternatives, alternative 6 (noise-reducing surface for the 3-km section along the NR and planting of thick trees to close the two openings) has been selected for meeting the applicable class-I noise standards, avoiding the loss of precious farmland, having less safety risk to drivers and having greater harmony with the local landscape. The simulated class I noise standard contours for the without-project alternative and the recommended alternative 6 is presented in Figure F-3 and Figure F-4.

Figure F-3: Class I Noise Standard Contour along NR (Without Project) for 2027

Figure F-4: Class I Noise Standard Contour at NR (Recommended Alternative 6) for 2027

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Table F-6: Noise Levels at NR Border for Different Design Alternatives for 2023 Noise Level at NR Border, Violation, Design Alternative Location Time dB(A) dB(A) Day 54.1 - #3 Night 48.3 3.3 Day 52.8 - 1. 2-lane without upgrading (without project) #4 Night 47.1 2.1 Day 54.5 - #5 Night 48.7 3.7 Day 51.5 - #3 Night 45.7 0.7 Day 50.6 - 2. 2-lane with upgrading #4 Night 45.0 - Day 51.8 - #5 Night 46.0 1.0 Day 53.5 - #3 Night 47.4 2.4 Day 52.3 - 3. 4-lane without any noise-reduction measure #4 Night 46.3 1.3 Day 53.9 - #5 Night 47.7 2.7 Day 51.6 - #3 Night 45.7 0.7 4-lane without noise-reducing surface, openings Day 50.6 - 4. #4 closed by thick trees Night 45.0 - Day 50.6 - #5 Night 46.0 1.0 Day 50.3 - #3 Night 44.8 - 4-lane without noise-reducing surface, openings Day 49.6 - 5. #4 closed with vegetated hills Night 44.3 - Day 50.5 - #5 Night 44.9 - Day 50.6 - #3 Night 44.7 - 4-lane with noise-reducing surface, openings Day 50.0 - 6. closed by thick trees #4 Night 44.3 - (Recommended alternative) Day 50.1 - #5 Night 44.8 - Day 49.8 - #3 Night 44.4 - Day 49.3 - 4-lane with noise-reducing surface, openings #4 7. Night 43.9 - closed with vegetated hills Day 50.0 - #5 Night 44.5 -

Day 48.6 - #3 Night 43.5 - 4-lane with noise-reducing surface, openings Day 48.4 - 8. #4 closed with sound walls Night 43.3 - Day 48.6 - #5 Night 43.5 - Note: Class I of the PRC Ambient Acoustic Quality Standards (GB 3096-2008): 55 dB(A) for day-time and 45 dB(A) for night-time. Source: Domestic EIA, August 2010.

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4. Alternatives for Fangchenggang Maoling Wastewater Treatment Plant

i) Without and Without Project Alternatives

279. There is currently no centralized sewerage network and wastewater treatment in Maoling town and the Maoling industrial park (MIP). Urban sewage flows to the water bodies through open or covered sewers on the sides of the streets. Industrial effluents are discharged to the rivers through open ditches. Poor sewage and wastewater collection also pollute the groundwater and affects the health of residents. Maoling town and the MIP are situated along the coast. Wastewater flows either directly to the coastal waters or via a short distance from the Xiaotaojiang and Maolingjiang rivers. Although the present average marine water quality can still meet the class III standards, some key parameters are reaching their applicable thresholds. Further industrial and urban growth will produce greater amounts of pollutants, and without the Project, surface water and the marine environment will deteriorate rapidly. The without-project alternative is thus not appropriate.

280. The with-project alternative will generate great environmental and social benefits. The proposed sewage and industrial wastewater collection and treatment will improve the sanitary conditions of Maoling town and the MIP, reduce the incidence of water-borne diseases and improve public health. The WWTP and sewage network will collect and treat 100% of the wastewater generated in the town of Maoling and the Maoling industrial park. By removing 82% to 93% of the major pollutants that are discharged without treatment, the water quality of the receiving rivers will improve greatly. The reduction of pollutant discharges will lead to reduced pollution in the surface water bodies in Maoling, particularly the Xiaotaojiang River and Maolingjiang River. According to environmental monitoring data, the water quality of the two rivers meets the class III of the national ambient water quality standard during the high-flow season (June – September) but COD, NH3-N and TP exceed the applicable ambient standards during the low-flow season. The pollution reductions as a result of the project are summarized in Table F-7. Table F-7: Reduced Pollution Loadings from Maoling WWTP COD BOD NH3-N TP SS Discharge without Project (t/a) 4,927.5 2,737.5 401.5 87.6 3.285.0 Discharge with Project (t/d) 657.0 219.0 73.0 11.0 219.0 Rate of Removal (%) 87% 92% 82% 88% 93% Amount of Reduction (t/a) 4,270.5 2,518.5 328.5 76.7 3,066.0 Source: Domestic feasibility study report, August 2010.

ii) Alternative Sites and Designs

281. The sub-component FSR and EIA have analyzed a number of alternatives, the most relevant relating to the siting of the WWTP within the MIP; the wastewater treatment process; the effluent discharge standard; and sludge treatment and disposal. These alternatives are discussed below.

282. WWTP Siting. Three alternative sites were analyzed. The selected site, situated northwest of the MIP, was selected for the following reasons: (i) the site is in line with the urban master plan and the long-term urban development needs; (ii) the geological conditions are favorable; (iii) the site is located in a low-lying area so as to take advantage of gravity flow of the wastewater with an estimated annual electricity saving of 1.80 million kWh and annual GHG reduction of 1,793 tons compared to the originally selected alternative site; (iv) the site is

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situated downstream of the urban area and of the water supply intake, as well as at the safe distance from local communities; and (v) the site is easily accessible and can be connected to the water supply and electrical power supply.

283. Effluent Discharge Standard. The project considered adoption of two discharge standards, including class 1A and class 1B (GB 18918-2002). The effluent from the Maoling WWTP will be discharged into the Maoling River which empties into the Maowei bay. The Maoling River has been designated to meet the class III water quality of the PRC Surface Water Quality Standards (GB 3838-2002). The Maowei Bay has been designated to meet the Class III water quality of the PRC Marine Water Quality Standards (GB 3097-1997). According to the Development Plan for the Guangxi Beibu Gulf Economic Zone (2006-2020), all WWTPs along the coast are required to meet the class 1B of the PRC Pollutant Discharge Standards for Urban Wastewater Treatment Plants (GB 18918-2002). The Project selected class 1B standard for the design of the WWTP. This selection was also approved by the Fangchenggang municipal environmental protection bureau. While the effluent quality would improve if class 1A was applied, the unit cost would increase from CNY 0.98/m3 for class 1B to CNY 1.40/m3 for class 1A. The wastewater treatment tariff is now CNY 0.80/m3 (levied on the volume of water supply). If class 1A would be adopted, the annual financial gap would be CNY 6.57 million for class 1A (Table F-8). The adoption of class 1A would represent a great financial burden for the MIP and Maoling town. The wastewater treatment tariff will be adjusted before completion of the WWTP to ensure cost recovery. The adoption of the class 1B discharge standard is recommended as it will also allow the Maoling River and Maowei bay to meet their applicable water quality standards.

Table F-8: Comparative Analysis of Class 1B and Class 1A for Maoling WWTP Class 1B Class 1A Assumed WWTP process to Pre-treatment + CAST Pre-treatment + hydrolysis + comply with respective biochemical + disinfection + CAST + tertiary treatment standard sludge thickening and dewatering (chemical removal of phosphorus + coagulative sedimentation + filtration + disinfection) + sludge thickening and dewatering Total investment (CNY million) 87.26 105.00 Annual average operating cost 5.81 9.86 (CNY million) Unit cost (CNY/m3) 0.98 1.40 COD removal rate (%) 87 89 BOD removal rate (%) 92 96 SS removal rate (%) 93 97 NH3-N removal rate (%) 77 86 TN removal rate (%) 60 70 TP removal rate (%) 87 94 Source: Domestic feasibility study report, August 2010.

284. Wastewater Treatment Process. Alternative treatment processes have been assessed that meet the national class 1B discharge limits, including the cyclic activated sludge treatment process (CAST process), the conventional activated sludge process and the oxidation pond process. The CAST process was selected for the following reasons: (i) the process is reliable, can meet the class 1A and 1B discharge standards, and is effective in removing nitrogen and phosphorus; (ii) the CAST process is a mature process widely applied in PRC, is highly adaptable to inflow water quality fluctuations, and produces an effluent of high and stable quality.

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285. Wastewater Disinfection. The Policy Directive on Urban Wastewater Treatment and Pollution Control Technologies (2002) of the PRC government requires the installation of disinfection facilities for all urban wastewater treatment facilities for the purpose of ensuring public health and safety and preventing the spread of infectious diseases. A number of disinfection technologies – including physical methods such as heating, ultraviolet, γ or χ radiation and molecular sieves, and chemical methods with the use of strong oxidation agents such as chlorine gas, chlorine dioxide, ozone, potassium permanganate, chloramine and sodium hypochlorite – were compared. The ultraviolet disinfection method was selected for its simplicity of operation, inactivation of a wide spectrum of pathogens (including excellent inactivation of Giardia, Crypto, and Viruses) and the avoidance of secondary pollution and health and safety concerns from the use of chemicals. UV systems are generally considered safer and more reliable than their chemical alternatives, while providing a higher level of disinfection.

286. Sludge Treatment and Disposal. The WWTP will generate 11.05 t/d of sludge (with 80% water content) after dewatering and thickening. Two thickening and dewatering alternatives have been analyzed, including: (i) mechanical thickening and mechanical dewatering; and (ii) gravity thickening and mechanical dewatering. Mechanical thickening and mechanical dewatering was selected mainly because of the limited land occupation and the minor odor emissions. Four disposal alternatives have been analyzed, including (i) sanitary landfill; (ii) incineration; (iii) direct land application; and (iv) composting. Direct land application and composting were rejected because of the risk of heavy metal contamination from the industrial wastewater. The sanitary landfill option was finally selected because of the relatively low investment and operating costs. The Fangcheng district sanitation bureau issued a letter of agreement on 20 April 2010, accepting to landfill dewatered sludge in the municipal landfill. Policy dialogue was undertaken with the Fangchenggang municipal government (FMG) with respect to the safe and beneficial disposal of the increasing amount of sludge in the WWTPs in the municipality when more WWTPs will come into line in the 12th FYP. The FMG will commission a study of an integrated approach for beneficial sludge utilization.

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G. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

1. Information Disclosure and Public Consultations to Date

287. Information disclosure and stakeholder consultations were conducted during the course of EIA and CEIA preparations in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006), and ADB Safeguard Policy Statement (2009). The information disclosure and consultations included: i) questionnaire surveys; ii) a wider stakeholder meeting attended by representatives of the affected public and other concerned stakeholders; iii) informal visits to communities and households in the project areas; iv) community disclosures with posters; and v) internet disclosures. Those affected by land acquisition and resettlement were consulted throughout the process of resettlement planning and social and poverty impact studies, using a variety of public consultation techniques including questionnaire surveys, community meetings, focus group discussions, key informant interviews and household visits that were carried out by local design institutes, the PPTA consultants, and ADB missions. The total number of people consulted with the first three techniques (questionnaire surveys, stakeholder meetings and informal community visits) amounted to approximately 2,600.

288. During the preparation of domestic EIA reports, formal questionnaire interviews of 900 people living in the direct project areas were undertaken, covering different age groups, genders, educational backgrounds, and occupations. The PPTA consultants and ADB TA review missions conducted consultations with relevant government agencies, particularly those with responsibilities for macroeconomic planning; environmental protection; soil erosion control; marine resources management; land resource management; and urban construction and planning of the three cities. In total, the wider stakeholder meetings held in April, May, June and July 2010 drew over 300 participants from key municipal government agencies of the three project cities, district government agencies, and local communities. Project information was posted in communities in the direct project areas.

289. Information disclosure via internet posting was undertaken twice for each subproject. According to the PRC Interim Guideline on Public Participation in EIA (2006), the first was done seven days after the IA signed the contract was the EIA institute. The purpose of the first internet posting was to solicit public comments and suggestions on the project and on the terms of reference for the EIA. The purpose of the second internet posting was to solicit public comments and suggestions on the preliminary findings of the EIA, including the potential impacts identified, proposed mitigation measures and conclusions; and an abridged version of the first draft of the EIA was attached for download as part of the information disclosure. For all of the information disclosures, contact names, phone numbers and email addresses of the IAs, EIA institutes and responsible authorities were included.

290. The information disclosure and public consultation activities undertaken to date are summarized in Table G-1. Exhibits of information disclosures, site visits and consultations are presented in Figure G1 through Figure G-3.

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Table G-1: Information Disclosure and Public Consultations during Project Preparation Meetings with Meetings with Government Stakeholder Questionnaire Community Internet Subproject Agencies Groups Survey Disclosure Posting Beihai Zhulin 36 people 61 people 300 with return Apr-Jun 2010 1st: 20 Apr 2010 road between Apr- between Apr- rate of 100% 2nd: 19 Jul 2010 Jun 2010 Jun 2010

Beihai Yingpan 27 people 53 people 300 with return Apr-Jul 2010 1st: 20 Apr 2010 road between Apr- between Apr-Jul rate of 100% 2nd: 19 Jul 2010 Jun 2010 2010

Qinzhou 30 people 65 people 100 with return Apr-Jun 2010 1st: 15 Apr 2010 Xincheng road between Mar-Jul between Apr- rate of 97% 2nd: 18 Jun 2010 network 2010 Jun 2010

Fangcheng- 34 people 61 people 100 with return Apr-May 2010 1st: 6 Apr 2010 Jiangshan road between Apr- between Apr-Jul rate of 89% 2nd: 13 May Jun 2010 2010 2010

Maoling WWTP 22 people 48 people 100 with return Apr-May 2010 1st: 6 Apr 2010 between Jun-Jul between Apr- rate of 96% 2nd: 13 May 2009 May 2010 2010

Fangcheng-Jiangshan road Beihai Yingpan road

Figure G-1: Community Information Poster

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First internet posting Second internet posting

Figure G-2: First and Second Internet Postings for Fangcheng-Jiangshan Road

Qinzhou Xincheng road network Beihai Zhulin road

Fangcheng-Jiangshan road Qinzhou Xincheng road network

Fangcheng-Jiangshan road

Figure G-3: Consultations and Site Visits by PPTA Consultants and ADB Missions

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2. Consultation Results

291. The consultations revealed that 96%–98% of the consulted public are supportive of the project, with the rest being unsure. The expected benefits include promotion of sustained urban development, protection of people from the threat of flooding, better access to urban transportation infrastructure, better prospect for regional cooperation, better prospect for outside investment and better prospect for socioeconomic development.

292. The anticipated negative impacts include possible noise pollution, air pollution from vehicles, and land acquisition and resettlement. The consulted public made several suggestions for mitigating the potential adverse environmental and social impacts: (i) construction activities close to residential areas should stop between 10:00 pm and 7:00 am; (ii) heavy construction equipment located in close proximity to schools and residential areas should be fitted with noise suppression apparatus; (iii) dust-generating construction vehicles should be covered and dusty construction areas sprayed with water; (iv) green sound barriers should be planted along the proposed roads; and (v) affected people should be properly compensated in accordance with PRC land compensation policies. Most of these suggestions have been incorporated in the EIA reports and CEIA. Those concerns that are beyond the scope of the EIA, such as a resettlement plan and protection of existing infrastructure during construction, have been conveyed to relevant authorities.

293. All of the consulted relevant government agencies of the three project cities express their strong support to the project and their willingness to undertake the corresponding responsibilities for the proposed component environmental administration.

294. Extensive public consultations have been undertaken in regard to the Wanheshan heron nature reserve. The consulted responsible authorities included the Fangchenggang Municipal Forest Bureau, Fangcheng District Forest Bureau, Fangchenggang Municipal Environmental Protection Bureau and Fangcheng District Environmental Protection Bureau. Twenty survey questionnaires were distributed to local community members and eighteen were returned. Special consultations were also undertaken with Mr. Xu Xinbang, representative of the Xu family and head of the Wanheshan Herons Conservation Society, and Professor Zhou Fang, a well- known heron ecologist with extensive research experience with the Wanheshan NR and chair of the Guangxi Provincial Nature Reserve Proposal Review and Approval Committee. The comments and suggestions from the consultations and the feedback are summarized in Table G-2.

3. Future Information Disclosure and Public Consultation Program

295. Information disclosures and public consultations to safeguard the environment and local communities will continue throughout construction and into the operation phase. During construction, the consultations will be undertaken regularly in the forms of formal questionnaire surveys and informal interviews, by the environmental safeguard specialists (as external monitor) and social safeguard specialists of the loan implementation consultancy (LIC), of the local residents living in the project areas, especially those around the construction sites. The consultations will focus on public complaints about community annoyances from construction activities, such as construction noise and dust, as well as public concerns about the environment and resettlement. Immediate adjustments will be undertaken to address any public complaints and concerns. During the first 3 years of operations, the EEM and LIC will continue

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with the regular public consultation program. Thereafter, public complaints and concerns will be channeled through the city EPB hotlines.

296. Environmental information will be disclosed by ADB as follows:

(i) The CEIA will be available for review at www.adb.org 120 days before the project is considered by the ADB Board. (ii) Copies of the domestic EIAs will be made available on request. (iii) All environmental monitoring reports during loan implementation will be available at www.adb.org.

Table G-2: Major Public Comments and Suggestions on Wanheshan NR and Feedback Comment / Suggestion Feedback Expansion of road be undertaken to the direction away from the Adopted NR Construction activities be avoided during nesting and breeding Adopted season, migrating season and time periods of day of herons leaving and returning to nests Construction workers be prohibited from entering the NR Adopted Low-noise, low-air-emission construction machinery be used Adopted Construction at night be avoided Adopted Construction camps be located as far away as possible from the Adopted NR Path to NR not be blocked during construction so as to allow local Adopted residents to pass through Concrete road surface be replaced with asphalt Adopted Land occupation be minimized Adopted Warning signs be erected about NR and banning of horn blowing Adopted and garbage throwing Awareness building and training of contractors and construction Adopted workers on nature conservation and the importance of protecting the herons be undertaken Supervision of construction activities along the NR and monitoring Adopted of construction and operation impacts on NR be undertaken The section of K2+100 ~ K5 be straightened to keep a farther Not adopted. The straightening distance from the NR would involve large amounts of population resettlement in Liyucun village committee, Liyucu primary school, Qiaotoudui village, Dawan village and possibly a local temple. Source: a) Domestic EIA, August 2010; and b) Notes of various consultations by the PPTA consultants and ADB review missions.

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H. GRIEVANCE REDRESS MECHANISM

1. Objectives of Grievance Redress Mechanism

297. A grievance redress mechanism (GRM) has been established to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits. In addition to serving as a platform to resolve grievances, the GRM has been designed to help achieve the following objectives: (i) open channels for effective communication, including the identification of new environmental and social issues of concern arising from the project; (ii) demonstrate concerns about community members and their environmental and social well-being; (iii) prevent and mitigate any adverse environmental and social impacts on communities caused by project implementation and operations; (iv) improve mutual trust and respect and promote productive relationships with local communities; and (v) build community acceptance of the project’s “social license” to operate.

298. The GRM is accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, are available. Opportunities for confidentiality and privacy for complainants should be honored where this is seen as important.

2. Current Practice in the PRC

299. Currently, when residents or organizations are negatively affected by project activities, they may complain to the contractors and IAs by themselves or through their community committee, or complain directly to the district/city EPB before they finally appeal to the court. In case a problem happens during the construction, they usually complain to the contractors first if they believe the construction is the source of the problem. If the contractors' responses are unsatisfactory, they will contact the district/city EPB, who will first record the complaints and then go to the site to listen to explanations from the contractors’ side. In case of discrepancies, the district/city EPB may need to consult with the IA or environmental supervision engineer to acquire relevant information. This kind of fact finding or site investigation is usually time intensive, delaying the mediation process. The major weaknesses of the current system are (i) lack of a specialized unit to address grievances; and (ii) no timeframe for the grievance redress mechanism.

3. Grievance Redress Mechanism for the Project

300. A grievance officer has been appointed in the GPMO since the start of the PPTA. The GPMO grievance officer has been advising and supervising the EIA institutes in conducting the information disclosures and public consultations. In consultation with the EA, IAs, and PICs, it is agreed that each PIC will establish a project public complaints center (PPCC). The PPCC will be managed by the two members of the environmental management unit (EMU) of the PICs. The PPCC’s phone number, fax, address, email address will be disclosed to the people through a notice board at the project site. When a complaint arises, people will contact the respective PPCC and which will initiate the GRM. The PPCC will instruct contractors, PICs and construction supervisors if people complain about the project. The PPCC will coordinate with the local government or the EPB, if necessary, and will be supported by the environmental safeguard specialists of the project management consultancy services.

301. Each contractor will also assign the on-site project engineer / manager to act as the onsite environmental engineer (OEE). The name and contact details of the OEE will also be

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posted at the notice board at the construction site. When the OEE receives a compliant from a local community member, s/he will immediately report to the PPCC who will determine a course of redress.

302. The tracking and documenting of grievances and resolutions within the PPCCs will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) dedicated staff to update the database routinely; (iii) systems with the capacity to analyze information so as to recognize grievance patterns, identify any systemic causes of grievances, promote transparency, publicize how complaints are being handled, and periodically evaluate the overall functioning of the mechanism; (iv) processes for informing stakeholders about the status of a case; and (v) procedures to retrieve data for reporting purposes, including the periodic reports to the GPMO and the GPMO’s report to the ADB.

4. Types of Grievances Expected and Eligibility Assessment

303. Public grievances addressed by the GRM will most likely relate to environmental issues during the construction phase, as comprehensive consultations with potentially affected people conducted during project preparation confirmed their basic support to the project. Grievances will include damage to public roads due to heavy vehicle operation and transportation of heavy equipment and materials; disturbance of traffic and increased traffic congestion; dust emissions; construction noise, rock blasting and vibration; soil erosion; disposal of waste materials in inappropriate places; loss of income; damage to private houses; safety measures for the protection of the general public and construction workers; water quality deterioration; etc. Construction-related grievances can be numerous, and managing them is the contractor’s responsibility under its contract with the PICs.

304. Once a complaint is received and filed, the PPCC will identify if complaints are eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; (ii) the nature of the issue is outside the mandate of the environment GRM (such as issues related to resettlement, allegations of fraud or corruption); and (iii) other company or community procedures are more appropriate to address the issue. Complaints illegible to the project or the environmental GRM will be recorded and passed onto relevant authorities. If an eligible complaint is rejected, the complainant will be informed of the decision and the reasons for rejection.

5. GRM Steps and Timeframe

1. Procedures and timeframes for the grievance redress process are as follows (see Figure H-1):

(i) Stage 1: If a concern arises during construction, the affected person will submit the complaint to the contractor directly (OEE or any onsite construction personnel) or through GRM access points (community leaders, neighborhood organizations, district EPB). Whenever possible, the contractor will resolve the issue of concern directly with the affected person. The contractor will give a clear reply within one week. If successful, the contractor will inform the PPCC accordingly.

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(ii) Stage 2: If not successful, the affected person will submit an oral or written complaint to the PPCC by themselves or through GRM access points. For an oral complaint, the PPCC must make written records properly and report to the city PMO and GPMO. The PPCC will consult the complainant, the contractor, the city PMO and other relevant parties, assess the eligibility of the complaint, identify solutions and give a clear reply within two weeks. The environment specialists of the project management consultancy services will assist the PPCC in replying to the affected person. The contractors during construction and the PICs/operators during operation should implement the agreed-upon redress solution and convey the outcome to the PPCC within one week;

(iii) Stage 3: If the affected person is still not satisfied with the proposed solution, PPCC will forward the formal complaint to the GRM coordinator (GPMO). The GPMO must identify a solution and prepare a clear reply in consultation with the complainant, GEPD, city EPB, city PMO, the PIC and the environment specialists of the project management consultancy services, and submit it to the affected person within 30 days. The contractors during construction and the PICs/operators during operation should implement the agreed-upon redress solution and convey the outcome to the PPCC and the GPMO within two weeks;

(iv) Stage 4: If the affected person is still not satisfied with the proposed solution, GPMO will inform the ADB project team and submit all relevant documents. The ADB project team will assess the situation, contact the affected person and Government project counterparts and design and implement the course of actions.

(v) Stage 5: If the affected people are still not satisfied with the reply in Stage 4, s/he can go through local judicial proceedings.

6. Special Considerations for Wanheshan Nature Reserve

305. Given the environmental sensitivity of the Wanheshan heron nature reserve, a supervision committee will be created as an oversight group with advisory and supervisory authority. The committee will consist of a national heron specialist (chair) contracted by the project management consultant, one representative of the Fangchenggang PMO, Fangcheng district forestry bureau, the local heron conservation society, and the environmental safeguard specialists of the project management consultant (secretary). The committee will monitor the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions. The committee will meet at least every three months or more frequently in case of emergencies. Members of the committee will inspect the construction site along the section adjacent to the nature reserve on a monthly basis during the construction period, and bi-weekly during peak construction. The supervisory committee will be allowed to access the construction site, inspect all project records and summon any project personnel, including construction contractors, for collecting and verifying information. The committee will be functional from the start of project implementation and till at least two years into the operation of the Fangcheng-Jiangshan road.

306. Quarterly reports will be prepared in English and Chinese by the supervision committee and submitted to the Fangchenggang EPB, GPMO, the IA and ADB. The monitoring report will include but not being limited to the following: i) impacts on the nature reserve; ii) implementation and effectiveness of mitigation measures; iii) community views and suggestions; iv) compliance with the EMP; and v) recommendations for additional corrective actions.

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Solve problem Solve Operators Contractors, Complainant, EPB,PMO, PIC, Operators Contractors, Operators PMO,PIC, Contractors, EPB,GEPD, Complainant,EA, consult advise consult advise Solution found DistrictEPBs (SpecialMission) ADB ADB ProjectTeam grievance Oral Oral or written Solution not found Inform solved, if Forward if notsolved Inform solved, if Forward if notsolved PPCC (PIC)PPCC design/operation GRM(GPMO)Coordinator Solution found Grievancerelated to Grievances/complaintsby individuals, groups, or institutions Communityleaders, neighborhood organizations, local authorities, etc. PMO/EA/PIC/operator GRMentry points Implementsolution Solution found grievance Oral Oral or written Contractor/PIC Grievancerelated toconstruction Step 4 Step Step 1 Step 2 Step Step 3 Step (7-14 days) (7-14 (max. 1 week) (max. 1 (max. 1 month) (max. 1 (max. 2 weeks) (max. 2 (max. 3 months) (max. 3 Implementation

(GRM) Mechanism Grievance Redress Project Proposed Figure H-1:

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I. ENVIRONMENTAL MANAGEMENT PLAN

1. Objectives

307. EMPs have been developed for all subprojects. The EMPs and the consolidated EMP define all potential impacts of the project components and the mitigation and enhancement measures with the objectives of avoiding or reducing these impacts to acceptable levels, and defining the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the environmental management plans. They seek to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the individual EIAs and EMPs, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

308. The EMP for the Guangxi Beibu Gulf Cities Development Project is presented in Appendix 1. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design.

2. Mitigation Measures

309. The EMP contains measures to mitigate the potential environmental impacts and risks. The responsibilities for implementing and supervising these measures are also assigned to different agencies. Details of the mitigation measures can be found in Appendix 1.

3. Organizational Structure for Environmental Management

310. As the executive agency, the Government of Guangxi Zhuang Autonomous Region will have the overall accountability for the overall project and its subprojects for ensuring compliance with the PRC’s laws and regulations as well as the provisions of ADB’s Safeguard Policy Statement (SPS 2009). As the implementing agency, each municipal government will be accountable for ensuring the implementation of the environmental management plan and coordinating the environmental audit and monitoring of the subproject(s) in the respective city. The project implementing company (PIC) on behalf of the city governments will be responsible for ensuring the implementation of the specific mitigation measures in cooperation with contractors as contained in the EMP.

311. The GZAR Project Management Office (GPMO) will be responsible for setting up the environmental management system, consisting of inspection, monitoring, reporting, and initiating corrective actions or measures. In the engineering design stage, EA, IAs and PICs will pass the EMP to the design institutes for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detail design, submitted to GPMO and ADB for review, and finally be passed to the construction contractors. To ensure that contractors will comply with the EMP’s provisions, GPMO, city PMOs and PICs will prepare and provide the following specification clauses for incorporation into the bidding procedures: i) a list of environmental management requirements to be budgeted by the bidders in their proposals; ii) environmental clauses for contractual terms and conditions, and iii) full EIAs and CEIA for compliance. The city PMOs will each nominate dedicated, trained, and qualified environment specialists.

312. The GPMO will recruit, through international competitive bidding, a project management consultancy that will include one national and one international environment specialist. The loan

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implementation consultancy will assist the GPMO to supervise the compliance with ADB safeguard policies and PRC environmental protection laws and regulations. The loan implementation environmental safeguard specialists will assist the GPMO to oversee the EMP implementation and fulfill the environmental reporting requirements.

313. A licensed environmental institute (LEI) will be contracted by the IA to serve as the internal environmental monitor (IEM). The IEM will undertake air, water and noise samples and laboratory analysis in respect to the subproject(s) in the respective city to determine the compliance with the applicable emission and ambient standards. The internal monitoring results will be used by the EEM to prepare the semi-annual environmental report.

314. In response to SPS 2009 requirements, the GPMO will further recruit, through international competitive bidding, an external environmental monitor (EEM). The EEM will review all environment reports, including internal and compliance monitoring reports and the semi-annual environment performance report, and prepare a semi-annual environment monitoring verification report. The report should confirm the project’s compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues and necessary corrective actions, and reflect these in a corrective action plan.

315. Upon completion of each subproject and within three months of trial operation, a licensed environmental institute (LEI) will be recruited by the PIC to conduct the project completion environmental audit. The LEI will prepare the project completion environmental audit report and submit to the city EPB for review and approval.

316. Each PIC will set up an environmental management unit (EMU) that will generally require two employees. The EMU will be responsible for: (i) implementing the EMPs and developing further implementation details; (ii) supervising contractors’ implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal regular environmental monitoring; (vi) redressing public grievances; and (vii) reporting performance of the EMP to GPMO, city PMO and responsible agencies.

317. The EPB at the city level, delegated by GEPD, will ensure the compliance with the PRC and local environmental regulations through regular and random environmental compliance monitoring and inspection during construction and operation. The environmental monitoring station (EMS) under the EPB at the city level will conduct the actual environmental compliance monitoring and inspection.

318. Construction contractors will be responsible for implementing mitigation measures during construction. They will designate an onsite environmental engineer (OEE) for each construction site to oversee the implementation of the mitigation measures in accordance with the environmental provisions in the construction contract.

319. Given the environmental sensitivity of the Wanheshan heron nature reserve, a supervision committee will be created as an oversight group with advisory and supervisory authority. The committee will consist of a national heron specialist (chair) contracted by the project management consultancy, one representative of the Fangchenggang PMO, Fangcheng district forestry bureau, the local heron conservation society and the national environmental specialist of the project management consultancy (acting as secretariat to the supervision committee). The committee will monitor the environmental impacts and performance of

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mitigation measures and provide advice on additional corrective actions. The committee will meet at least every three months or more frequently in case of emergencies. Members of the committee will inspect the construction site along the section adjacent to the nature reserve on a monthly basis during the construction period, and bi-weekly during peak construction.

320. Environmental training will be essential for IAs, PICs and contractors to implement the EMP. GPMO will be responsible for organizing training programs, which will cover (i) environmental laws, regulation and policies; (ii) implementing mitigation measures; (iii) environmental technologies and procurement; (iv) operating and maintaining environmental facility; (v) environmental monitoring, supervision; and (vi) documentation and reporting. The training program will be delivered by the loan implementation consultancy.

321. A detailed summary of the roles and responsibilities of different institutions in the implementation of the EMP is provided in Appendix 1.

4. Monitoring, Inspection and Reporting

322. Internal and external monitoring will be undertaken to oversee the implementation of the EMP and monitor the actual environmental impacts that will occur. The internal environmental monitoring that requires field sampling and laboratory analysis of emissions and ambient environmental quality with respect to air, water and noise will be done by the licensed environmental institute (LEI) under contract to the PIC. The internal monitoring will also cover non-quantitative parameters such as solid waste management and soil erosion control, and it will be carried out through visual inspections by the onsite environmental engineer (OEE) of the construction contractor and the EMU officers of the PIC. GPMO and city PMO officers will join the internal monitoring and inspection activities from time to time.

323. External monitoring is the responsibility of the external environmental monitor (EEM). The EEM will receive and analyze the internal environmental reports (both quantitative and non- quantitative). They will also participate in field inspections together with the OEE and EMU officers or undertake independent field inspections to verify the implementation of the EMP. The EEM will prepare a semi-annual environment monitoring verification report. The report should confirm the project’s compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues, and reflect these in a corrective action plan.

324. Compliance monitoring will be carried out by the environmental monitoring station (EMS) in each city. The EMS will conduct regular and random environmental monitoring activities before and during construction and operation, as well as in the event of emergencies.

325. The internal field and analytical monitoring report will be prepared by the LEI on a quarterly basis. An internal inspection report will be prepared for each inspection, averaging once every month. All internal monitoring reports will be submitted to the PIC, city PMO and GPMO on a quarterly basis. The GPMO will use the internal environmental monitoring reports and the independent field inspection reports to prepare, with assistance from the environmental safeguard specialists of the loan implementation consultancy, the semi-annual environmental progress report in both Chinese and English languages and submit to the EA and ADB within four weeks past the reporting period. The semi-annual environmental monitoring report will cover but not being limited to the following: (i) the extent and severity of the environmental impacts against the predicted impacts, (ii) performance or effectiveness of the environmental protection measures or compliance with pertinent rules and regulations, (iii) trends in impacts,

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(iv) overall effectiveness of the project EMPs, and (v) the need for taking additional mitigation measures.

326. Semi-annual reports will be prepared in English and Chinese languages by the Wanheshan nature reserve supervision committee and submitted to the GPMO and ADB. The semi-annual report will cover the implementation status of the EMP, actual impacts vs. the forecasted impacts on the nature reserve and the heron population, and recommendations for corrective actions and additional measures if necessary.

327. Moreover, within 3 months after each subproject completion, or no later than one year with permission of the city EPB, a project completion environmental audit report shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001); (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities; and (iii) finally reported to ADB. The environmental acceptance reports of the subproject completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

5. Mechanism for Grievance Redress and for Feedback and Adjustment

328. A grievance redress mechanism (GRM) has been established to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits. In addition to serving as a platform to resolve grievances, the GRM has been designed to help achieve the following objectives: (i) open channels for effective communication, including the identification of new environmental and social issues of concern arising from the project; (ii) demonstrate concerns about community members and their environmental and social well-being; (iii) prevent and mitigate any adverse environmental and social impacts on communities caused by project implementation and operations; (iv) improve mutual trust and respect and promote productive relationships with local communities; and (v) build community acceptance of the project’s “social license” to operate. The grievance redress mechanism entails a grievance focal point in the GPMO and a project public complaint center for each PIC. The procedure and reporting requirement of the grievance redress mechanism have also been defined. Details can be found in Chapter G.

329. Based on the inspection and monitoring reports, environmental authorities will decide whether: (i) further mitigation measures are required as corrective action, or (ii) improvement is required to environmental management practices. If it is found during the monitoring and inspection exercise that there has been substantial deviation from the EMP or any changes made to any of the subprojects, which may cause substantial adverse environmental impacts or an significant increase in the number of affected people, the GPMO should consult with the GEPD and ADB immediately and form an EIA team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA reports will be submitted to the environmental authorities for review and approval and to ADB.

6. Environmental Management Capacity in Three Project Cities

330. The EPB in each city consist of five sections and three institutions. The five sections cover EIA, pollution control and planning, regulatory affairs and public education, public information office, and general administration. The three institutions include the environmental monitoring station (fully government funded), inspection and enforcement brigade (fully government funded), and the environmental science research institute (partially government

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funded). The environmental science research institute holds a class B EIA certificate issued by MEP.

331. The environmental monitoring stations in the three project cities are certified on an annual basis by the national environmental monitoring network. The environmental monitoring stations are fully staffed and equipped for compliance monitoring (existing pollution sources and completion inspection and monitoring of new projects) and ambient air and water quality and noise monitoring. Each of the environmental monitoring stations provides more than 30,000~40,000 monitoring data each year. Regular professional training is provided by the national, provincial, and local environmental authorities and monitoring centers for knowledge and skills upgrading.

332. An automated online 24-hour monitoring program for key polluting enterprises is under development in each city. About half of the key polluting enterprises have been covered by the program; and full coverage is expected by 2011. In addition, key polluting enterprises are inspected 4 to 6 times per year with unannounced monitoring visits, and regular polluting enterprises 1 to 2 times per year. Monitoring data is compiled on a quarterly basis. Compliance monitoring of regular pollution sources is conducted twice a year.

333. Ambient air quality monitoring is done regularly at several monitoring points in each city where automated continuous monitoring of SO2, NO2, and PM10 is undertaken. According to MEP and Guangxi EPD requirements, air quality, in the form of the air pollution index, is reported daily to the Guangxi EPD and published on a daily basis to the general public via the internet and local television.

334. The EPB is a member of the city PMO. Its representatives have participated in discussions during the PPTA and ADB review missions. The EPBs are fully committed to supporting and supervising the implementation of the EMP, including the recommended mitigation measures.

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J. CONCLUSION

1. Project Benefits and Impacts

333. Current infrastructure services for the three cities are inadequate to meet the requirements of their potential strategic roles in sub-regional and sub-national programs. This is particularly true for urban road networks and urban environmental protection facilities. These infrastructure bottlenecks constrain the full participation of these border cities in the sub-national and sub-regional cooperation programs, prevent them from deriving the maximum benefits from these programs, and could eventually impede the full realization of these programs.

334. In this context, the improved road networks in the three project cities will lead to enhanced connectivity for promotion of local development and regional cooperation, energy savings, improve air quality, and improve environmental quality as a whole. The project will promote sustained economic growth, industrial and tourism development, urbanization, and environmental improvement of the project cities. A total of 651.9 thousand people will directly benefit from the project. Of which, 33.77% of the total population are rural poor and 6.88% urban poor, and 48.5% females. The ethnic minorities make up 23.67% of the total population in the direct project area, dominated by Zhuang ethnic group, 65.98% of the ethnic minorities are of the absolute rural poor, 18.33% urban poor.

335. The improved road networks in the three project cities and the adoption of energy- efficient LED lights for the project roads will lead to energy savings, improve air quality, enhance connectivity for promotion of regional cooperation, and improve environmental quality. It is estimated that approximately 30.3 million liters of fuel can be saved for the first 20 years of operation of the road networks, as a result of the improved road conditions. The fuel savings, combined with LED lights, will result in the reduction of CO2 emission by 141,078 tons during the first 20 years of operation of project facilities, and the improvement of air quality in the project cities. The use of permeable pavement blocks, increased road elevation and improved drainage capacity will increase climate resilience. The improved road conditions will also help reduce traffic congestion and improve road safety.

336. The Maoling WWTP and associated sewerage network subproject will upgrade the sewerage coverage of the Maoling industrial park (MIP) and the town of Maoling to 100% and the treatment of the sewage and industrial wastewater from zero to 100%. The WWTP will reduce the COD discharge by 87% or 4,270.5 t/a, BOD by 92% or 2,518.5 t/a, NH3-N by 82% or 328.5 t/a, TP by 88% or 76.7 t/a and SS by 93% or 76.7 t/a, significantly contributing to improved water quality of the rivers and coastal waters and the sanitary conditions of Maoling town and the Maoling industrial park.

337. The improvements in urban sanitation, quality of the surface and coastal waters and air quality, and traffic safety are expected to enhance health for local residents, quality of marine products, regional integration and international trade, local investment environment and the overall socioeconomic development. Other tangible and immediate benefits will be the increased employment opportunities directly related to construction and operation. Most of the estimated more than 100,000 person-months of unskilled labor during project implementation will go to the local communities. Indirect employment from related services will generate additional local income during the construction period. In the operational stage, an estimated 2,500 permanent employment positions related to road maintenance, and additional indirect employment positions from increased tourists and economic expansion will be created in the region.

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338. The project is consistent with ADB’s water policy and will help the PRC achieve Millennium Development Goal 7, Target 7.C, which establishes the 2015 target of halving the proportion of people without sustainable access to safe drinking water and improved sanitation. It will contribute to the realization of the ADB strategy for the GMS with the vision to achieve enhanced connectivity, competitiveness and economic integration. The project is also consistent with ADB’s strategic objectives in the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability. By supporting the sustainable development in the three project cities, the project supports ADB’s long-term strategic framework (Strategy 2020) and PRC Country Partnership Strategy (2008-2010); it promotes efficient infrastructure, strengthens environmental management, and supports inclusive growth and balanced development to help the Government build a xiaokang (moderately well-off) society.

339. The project serves as a valuable demonstration project to support basic urban infrastructure development in other cities in western provinces. Demonstrative features include the application of LED street lighting, public utility conduit in Qinzhou which is widely used in developed countries, rarely in the PRC and first time in Guangxi, and permeable paving blocks that will reduce surface runoff and peak flood and increase climate resilience. Furthermore, the project will support capacity development of barrier-free and universal design in urban infrastructure and public facilities to guide city districts to become more user-friendly particularly for elderly and vulnerable people. The project will also provide capacity development support for transport planning for industrial emergency response and urban road safety by effectively separating heavy industrial vehicles passing through residential areas.

340. The identified major regular impacts during the construction and operation phases include permanent and temporary acquisition of land, population resettlement, borrow and spoil, air pollution, water pollution, noise pollution, impacts associated with solid waste disposal, protected and other sensitive areas, occupational and community safety and health.

341. Site-specific impacts include the potential adverse effect of the Fangcheng-Jiangshan road on the county-level Wanheshan heron nature reserve and the Chashan reservoir as a water supply source for the Jiangshan town, the potential aquatic environmental impact from the 640-m Nankang bridge over the Nankang river as part of the Beihai Yingpan road, the potential cumulative impacts from the Qinzhou port industrial zone on the planned Xincheng community which the proposed Qinzhou Xincheng road network will serve, and the adverse environmental impact of the accidental discharge of the Maoling WWTP on the receiving water bodies.

342. Appropriate environmental mitigation and monitoring measures were defined for all identified impacts, and are included in the environmental management plans of the domestic EIAs and the CEIA. The EMP sets out the procedures and plans to carry out mitigation measures and monitoring requirements during sequential stages of the project (pre-construction, construction and operational phases). It consists of two plans, one for implementing mitigation measures and the other for carrying out environmental monitoring. For each impact, appropriate mitigation measures are described. Internal, external and compliance monitoring and supervision will be undertaken to ensure that environmental impacts will be minimized to acceptable levels. The domestic EIAs and this CEIA conclude that all identified impacts can be mitigated to acceptable levels if the measures defined in the EMPs are carefully implemented and monitored. The environmental mitigation measures will be incorporated in the biding documents and bill of quantities of the civil works contracts. International and domestic environment consultants will be recruited under the project management consultancy service to

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prepare and supervise the implementation of the environmental management plan, monitor the environmental and social impacts, and prepare related reports.

343. Local environmental protection bureaus will support the implementing agencies and project implementation companies in undertaking the environmental management plans. Capacity building in environmental management, a detailed training program for which has been developed in the environmental management plan, will be provided for the executing agency, implementing agencies, and project implementation companies, to ensure the borrower’s institutional capacity in managing the environmental impacts.

2. Main Risks and Environmental Safeguard Assurances

344. One of the major environmental risks for the road projects is the accidental release of hazardous and toxic substances during the transportation process. For the Qinzhou Xincheng road network, transport of such substances will not be permitted, and the risk is relatively low. Beihai Yingpan road is close to an industrial area, and the risk is relatively high. The risk for the Beihai Zhulin and Fangcheng-Jiangshan roads is medium. During project preparation, extensive consultations were undertaken with the municipal environmental emergency response leading groups and the municipal environmental emergency response command offices of the project cities. The project roads will be covered by the existing environmental emergency preparedness and response systems which are judged to be adequate. In addition, each project road will establish an earmarked fund at CNY 200,000 for responding to transportation-related chemical spills. The fund will be called into use, when a spill would occur, for building a temporary holding pond and for clean-up and environmental monitoring. The mitigation measures will reduce the risk to an acceptable level.

345. Another major potential risk identified during the scoping and screening exercise relates to the impact of the Fangcheng-Jiangshan road on a county-level nature reserve which is home to ten species of herons, three of which are under state level or provincial level protection. The risks of the road on the heron nature reserve have been thoroughly examined. The redline of the proposed road upgrading has a direct distance of 86 m to the border of the nature reserve. A comprehensive mitigation measures package has been developed to protect the nature reserve from noise and light disturbance, including amongst others a 3-km section of low-noise pavement along the nature reserve, planting of dense trees in two openings, the strict control of construction activities during migration and breeding season, erection of warning signs to prohibit horn blowing. A supervision committee will be created as an oversight group with advisory and supervisory authority. The committee will be chaired by a national egret specialist. The committee will monitor the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions. With the implementation of mitigation, protection and supervision measures, the impact on the nature reserve and the egret’s habitat is judged to be insignificant. In addition, an enhancement package was developed in close consultation with all relevant local stakeholders. The investment costs have been incorporated into the overall project investment budget. Enhancement measures will include reforestation within the nature reserve to improve the quality of the habitat and provide additional or replace damaged breeding sites; strengthened patrols to reduce poaching; improve the heron rescue and quarantine system to reduce death rates from diseases such as bird flu; community awareness and education programs; and policy and institutional strengthening including formulation of local policies, training of conservation officials, and scientific studies and investigations. The implementation of the enhancement package will be supported by an expert in migratory bird protection, hired under the project. With the implementation of the mitigation,

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enhancement and monitoring and supervision measures, the risk to the Wanheshan nature reserve will be reduced to an acceptable level.

346. Moreover, there is a risk of accidental release of high-concentration wastewater at the Maoling WWTP, due to a possible malfunctioning of the electric, mechanical or control system, or due to system overload and failure of the biological treatment process. This risk has been identified and assessed in the domestic feasibility study report and the domestic EIA. The proposed mitigation measures include: i) spare parts for key components; ii) regular inspection and proper maintenance of the WWTP; iii) regular staff training; and iv) automated online, real- time monitoring of influent and effluent quality. An emergency holding pond with a volume of 15,000 m3 will be used to deal with a possible accidental release. The estimated investment of CNY 8.56 million for the emergency holding pond, together with an emergency environmental monitoring reserve fund of CNY 50,000, has been incorporated into the overall investment project budget. The 12 hours of holding time will allow adequate time for emergency repairs to the malfunctioning system. Each enterprise also has a 12-hour holding pond which will be called into use if and when an accidental release from the Maoling WWTP would occur. The mitigation measures are anticipated to effectively minimize the risk to an acceptable level.

347. The following assurances will be acted up by the respective levels of governments to ensure the effective implementation of the measures and mechanisms for mitigating the potential impacts and risks and for enhancing the environmental and social benefits of the project:

i. GZARG, BMG, QMG and FMG shall, and shall cause each PIC/POC to ensure that all Project facilities are built, operated, maintained, and monitored in strict conformity with: (i) all applicable laws and regulations, including national and local regulations and standards for environmental protection, health, labor, and occupational safety; and ADB’s Safeguard Policy Statement (2009); (ii) all environmental mitigation and monitoring measures detailed in the EIAs, CEIA and EMP for the Project. GZARG will cause the IAs to incorporate such mitigation and monitoring measures into the design and bidding documents and construction contracts. GZARG, BMG, QMG and FMG will ensure that contractors are supervised to ensure compliance with requirements of the EMPs, applicable laws and regulations and ADB’s Safeguard Policy Statement (2009).

ii. Throughout project implementation, GZARG, BMG, QMG and FMG will cause the PICs to review any changes to the project design that may potentially cause negative environmental impacts, and in consultation with ADB, revise environmental monitoring and mitigation measures as necessary to assure full environmental compliance. GZARG will provide to ADB within 60 days, justification for any proposed changes to the mitigation measures required during design, construction, and operations, if any changes to the CEIA must be implemented for safety or emergency reasons.

iii. GZARG, BMG, QMG and FMG shall establish and maintain a grievance redress mechanism (GRM) as agreed in the CEIA to receive and facilitate resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental impacts. GZARG shall ensure that GPMO appoints and trains one grievance officer to coordinate the project GRM, establish a grievance register, and report to ADB in the framework of the semi-annual environment progress reporting. BMG, QMG and FMG shall establish project public complaint centers in each city PIC, and appoint and train a grievance officer. GZARG, BMG, QMG and FMG shall ensure that contractors and

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potentially affected people are informed on the GRM timeframe and procedures, their rights and duties, prior to Project implementation. iv. GZARG, BMG, QMG and FMG will cause the PICs to ensure that sufficient resources and fulltime personnel are provided in monitoring EMP implementation. GZARG will ensure that the PICs provide quarterly environmental monitoring reports throughout the construction period to the GPMO, which will in turn prepare and submit to ADB semiannual environmental reports in a format acceptable to ADB until the completion of the Project. Such reports shall be provided to ADB from the commencement of the Project Implementation until the Project Completion and shall include (a) progress made on mitigation measures and monitoring, (b) problems encountered, and (c) corrective action plan in the event of any violation of the Borrower’s environmental standard, rules, regulations and laws having occurred. v. GZARG, BMG, QMG and FMG will ensure that the capacity-building program described in the EMP is implemented as planned from the date of engagement of the project management consultant until the physical project completion. vi. GZARG and FMG will ensure that (i) the management of Wanheshan nature reserve follows national regulations on nature reserves; (ii) all mitigation and protection measures and monitoring requirements defined in the EMP for the Fangcheng-Jiangshan road are implemented; (iii) the Wanheshan nature reserve enhancement package defined in the EMP is implemented prior to project completion. GZARG shall ensure that FMG include the Wanheshan nature reserve in the city master plan. vii. GZARG and FMG will ensure that a Wanheshan nature reserve supervision committee with advisory and supervisory authority is established prior to the project implementation. GZARG and FMG will ensure that the supervision committee (i) holds meetings quarterly or anytime as required ; (ii) monitors the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions; (iii) inspects the construction site along the section adjacent to the nature reserve on a monthly basis during the construction period; (iv) reports regularly to GZARG and FMG; and (v) prepares and submits report to GZARG, FMG and ADB as a part of semi-annual environmental reports. viii. GZARG, BMG, QMG and FMG shall ensure that emergency preparedness and response mechanisms are developed for the project components, and that these mechanisms are incorporated into the emergency preparedness and response system of the respective cities, districts and industrial zones. ix. FMG shall encourage all industries operating in the Maoling industrial park to be connected to the Maoling wastewater treatment plant and ensure that (i) the industries will pre-treat their wastewater to the level complying with the designated sewerage discharge standards; and (ii) the Fangcheng EPB will conduct regular monitoring to ensure compliance with PRC legislated standards. GZARG shall cause FMG to develop appropriate sewerage discharge standards for industry in line with PRC national law and international practice before the completion of the Project wastewater treatment plant and inform ADB once such standard are approved. x. GZARG, BMG, QMG and FMG shall strengthen their capacity on (i) O&M of road and wastewater treatment plant, (ii) transport planning for emergency response, (iii) traffic

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safety, and (iv) non-motorized transport including for bicycle and pedestrians and public outreach in connection with non-motorized transport. xi. Regarding the urban roads to be constructed under the Project, GZARG, BMG and QMG shall, and shall cause PICs to ensure: (i) installation of light emitting diode (LED) or equivalent energy-saving technology for street lights and traffic lighting system for BMG and QMG, (ii) installation of public conduit to the planned roads as an innovative engineering measures for better long-term environmental and economic benefit for QMG, and (iii) use of permeable surface for sidewalk to the planned road for sustainable district drainage system for BMG and QMG. xii. GZARG and BMG shall ensure, that strategic environment impact assessments are conducted in the framework of the Zhulin district land use planning approval and ASEAN fishery industry economic development zone in Yingpan district, and that these are approved by 31 December 2012. xiii. GZARG, BMG, QMG and FMG shall ensure, and shall cause PICs to ensure that (i) design recommendations on road safety provided during Project preparation are incorporated into the Project bidding documents; (ii) road safety inspection are carried out and recommendations of these inspection are taken into account, prior to and after the opening of the roads to the traffic; and (iii) road safety awareness program is implemented in roadside communities and communities are encouraged to participate and provide feedback on road and traffic safety design and operation of the Project roads. xiv. GZARG and FMG shall ensure that the branch sewer pipeline construction financed by Maoling town is designed, constructed and put into operation simultaneously to enable the Maoling wastewater treatment plant to receive the domestic wastewater. xv. GZARG and FMG shall ensure that a new wastewater treatment company operating Maoling WWTP is set up and endorsed by the FMG before the subproject completion of the Project wastewater treatment plant, and adequate staff is allocated and trained for O&M before the commencement of the plant operation. GZARG and FMG shall inform ADB once the wastewater treatment company is registered. xvi. BMG, QMG and FMG will ensure that the demolition of project affected buildings will follow national regulations on disposal of construction waste, and will be done with the EPB’s approval and supervision. BMG, QMG and FMG will ensure that a visual inspection is conducted by licensed institutes prior to demolition of these buildings to confirm absence of asbestos or asbestos containing materials (ACM). If presence of asbestos is confirmed, BMG, QMG and FMG will ensure that an asbestos management plan is developed for all affected buildings. The concern MG will cause the PICs to ensure that the contractors receive adequate training on asbestos management, occupational health and safety, and that the demolition of the affected buildings is conducted and supervised in conformity with the approved management plans. xvii. GZARG, BMG, QMG and FMG will ensure that the compensatory reforestation measures will be implemented by the respective city forest bureaus before or upon completion of project implementation.

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xviii. GZARG, BMG, QMG and FMG shall ensure, that (i) in coordination with the local health bureaus, the contractors are made to disseminate information on the risks of socially and sexually transmitted diseases, including HIV/AIDS, to their employees, temporary laborers and their family members, and subcontractors during project implementation; (ii) ensure that public environmental awareness and education programs on health and hygiene behavior and properly managing wastewater and solid waste disposal; and (ii) specific provisions to this effect are included in the works contracts and are monitored and reported semi-annually to ADB.

xix. GZARG and BMG shall ensure and cause the PICs to ensure that (i) the labor re- employment plan is implemented in a timely manner as agreed with ADB; (ii) adequate staff, resources and budget are committed for monitoring and supervision of the labor re- employment plan; and (iii) implementation of the labor re-employment plan is reported to GZARG and ADB.

xx. GZARG shall develop (i) appropriate guidelines for universal design and barrier-free urban infrastructure and public facilities, and (i) design guidelines for climate proofing for urban infrastructure, through capacity development components before the completion of the Project with an aim of developing a people-centered and environmentally friendly urban planning and design guidelines in each project city.

3. Overall Conclusion

348. The project will generate great socioeconomic benefits by promoting sustainable urban development and regional cooperation. The overall findings of the domestic EIAs and the CEIA are that negative impacts on air, water, and acoustic environment are expected, especially during construction. In general these impacts will be temporary and localized. The proposed mitigation measures are prescribed conceptually in the CEIA. These measures will be updated into the detailed EMPs during the design stage and continuously refined during construction. The EMPs will be implemented by the PICs and contractors; monitored and supervised by professional environmental management agencies and city environmental monitoring stations; and regularly reported to the GPMO, city PMOs, city EPBs and ADB.

349. Any adverse environmental impacts and risks associated with the project will be prevented, eliminated, or minimized to an acceptable level, by the implementation of the EMPs proposed under the EIAs and CEIA, particularly through the environmental mitigation measures and the mechanism for the continuous adjustment.

134 Appendix 1

ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

1. EMPs have been developed for all subprojects. The EMPs and the consolidated EMP define all potential impacts of the project components and the mitigation and enhancement measures with the objectives of avoiding or reducing these impacts to acceptable levels, and defining the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the environmental management plans. They seek to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the individual EIAs and EMPs, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

2. The EMP includes: (i) objectives, (ii) summary of impacts and mitigation measures, (iii) environmental monitoring and inspection, (iv) public consultations, (v) responsibilities and authorities for implementation, (vi) institutional strengthening and training, (vii) reporting and supervision, (viii) work plan, (ix) cost estimates, and (x) mechanism for feedback and adjustment. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design.

B. Summary of Potential Impacts and Mitigation Measures

3. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified by the individual environmental impact assessments (EIAs), as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table A1.1. The mitigation measures will be incorporated into the tendering documents (where appropriate), construction contracts and operational management plans, and will be undertaken by contractors, the PIC under the supervision of the GPMO, city PMO and the city EPB, and the GEPD when necessary. The effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether they should be continued or improvements should be made. Improvements need to be confirmed through stipulated environmental management procedures.

4. Resettlement plans have been prepared to ensure that the affected persons will be made better off or at least not worse off because of the project. Details of the required actions are given in the individual resettlement plans for the individual subprojects.

Table A1.1: Summary of Potential Impacts and Mitigation Measures Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency A. Pre-Construction 1. EIA and Site/alignment • The recommended sites/ DI and EIA EA, IA, EPB Feasibility selections routes for the individual Institute, PIC, Study Stage subprojects were selected PPTA from various alternatives so Consultants, as to minimize adverse ADB Missions impacts on the environment and land resources.

A1-1 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Engineering • Engineering and DI, EIA EA, IA, EPB and technological alternatives Institute, PIC, technological were evaluated and PPTA alternatives selected on the basis of Consultants, pre-defined financial, ADB Missions environmental, socioeconomic criteria, with a view to minimize adverse environmental and social impacts and risks and maximize environmental and social benefits.

Sector • The project rationale and DI, EIA EA, IA, Urban strategy design are consistent with Institute, PIC, Planning and complement the PPTA Bureau, EPB achievement of the Consultants, objectives of the urban ADB Missions development strategy and urban master plan that promote environmental sustainability and liveability.

Public • Several rounds of wide EIA Institute, EA, IA, PIC, consultations public consultations have PPTA EPB been conducted on Consultants, environment, poverty, and ADB Missions resettlement during feasibility studies, and EIA and CEIA preparations.

Wanheshan • Special consultations with EIA Institute, EA, IA, PIC, Heron NR key stakeholders, including PPTA EPB, Forest the Xu family, local heron Consultants, Bureau conservation society, heron ADB Missions experts and city and district environmental protection and forest bureaus were undertaken.

2. Design Stage Establishing • A 2-person environmental PIC EA, IA EMU management unit (EMU) will be established with each PIC.

Maoling • Verify the design influent DI, PIC EA, EPB WWTP volume of the Maoling WWTP and influent quality parameters, including lab tests if deemed necessary. • Detailed analysis of sludge

A1-2 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency dewatering processes to identify the best mechanical unit to dewater the sludge. EIA for • Review and refine EMP of Licensed PIC Nankang Nankang bridge based on environmental bridge detailed engineering institute design.

Wanheshan • Identify types of trees and DI NR Heron NR shrubs and the supervision combination of trees and committee, shrubs that can best EA reduce noise and light pollution Updating EMP • Mitigation measures DI, PIC EA, IA defined in the EMPs will be reviewed, updated and incorporated into the detailed design to minimize adverse environmental impacts.

3. Biding and Bidding • Environmental provisions EMU, EA, IA, PIC Construction documents will be included in the Tendering Preparation and RFPs. Agency, loan contractors’ • Environmental section will implementation qualifications be included in the TOR for consultancy bidders. • Environmental clauses for contractors in reference to the EMP and monitoring plan will be included in the construction and supply contracts.

Environmental • Contractors will be required Contractors PIC, EEM operation and to prepare an supervision environmental operation manual and supervision manual, for approval by PIC. Grievance • Appoint a grievance officer GPMO EA, ADB officer at the commencement of the PPTA.

Project public • Establish a project public PIC EA, IA, ADB complaints complaints center center

Taking of land • Establish a resettlement PIC EA, IA, ADB and property office comprising local government officials to

A1-3 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency manage the land acquisition and resettlement process. • Conduct information dissemination and community consultation programs in accordance with the PRC Land Administration Law (1999) and ADB Safeguard Policy Statement (2009). • Ensure that all resettlement activities are reasonably completed before construction starts on any subproject.

Re- • Ensure implementation of IA GPMO employment the re-employment plan for plan for the affected workers of the economic Zhulin salt farms. displacement

Licensed • Prior to start of PIC EA, IA environmental construction, an LEI will be institute (LEI) engaged to conduct as internal internal field sampling and environmental laboratory analysis of air, monitor (IEM) water and noise pollution.

External • Prior to start of GPMO GPLG, ADB environmental construction, EEM (as part monitor of the loan implementation consultancy), will be engaged according to ADB procurement procedures.

Wanheshan • A supervision committee IA, PIC EA, ADB heron nature will be created as an reserve oversight group with supervision advisory and supervisory committee authority. The committee will consist of a national heron specialist (chair) contracted by the project management consultant, one representative of the Fangchenggang PMO, Fangcheng district forestry bureau, the local heron conservation society, and the environmental

A1-4 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency safeguard specialists of the project management consultant (secretary).

Onsite • After contract award and Contractor PIC environmental prior to start of engineer construction, the contractor will assign an onsite environmental engineer for each contract

Environmental • Environmental specialists GPMO GPLG management and/or officials from GEPD training will be invited to provide training on implementation and supervision of environmental mitigation measures to relevant persons, especially construction engineers and managers.

B. Construction Phase (All Subprojects) 1. Soil Erosion Excavation • Strip and stockpile topsoil, Contractor OEE, EMU, build retaining walls where EEM necessary before dumping. • Provide temporary detention ponds or containment to control silt runoff. • Construct intercepting ditches and chutes to prevent outside runoff entering disposal sites, and divert runoff from sites to existing drainage or ponds.

Transport and • Soils will be used as refill Contractor OEE, EMU, disposal of and landscaping materials EEM soils on site to the best extent possible. • Settling ponds will be built in construction sites. Soils in settling ponds will be cleared for use as refill materials.

Construction • Straws or cloths will be laid Contractor OEE, EMU, vehicles at the entry/exist of each EEM construction site. • Tires of construction vehicles will be cleansed

A1-5 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency regularly of soils.

Exposed • As soon as construction is Contractor OEE, EMU, surfaces completed, re-vegetation EEM with trees and grasses will be undertaken.

2. Water Pollution Siltation in • With implementation of the Contractor OEE, EMU, water bodies recommended mitigation EEM measures defined under “soil erosion”, siltation in water bodies will be insignificant. • Bridge construction: pump slurry to shore and dispose of the cutting materials properly to reduce the disturbance of sediments and the residual impact to water quality leading to short-term increase in SS concentrations in the river immediately downstream from the bridge construction sites.

Wastewater • Wastewater from Contractor OEE, EMU, from construction camps will be EEM construction diverted to municipal camps sewers when available. • In peri-urban areas when municipal sewers are not available, septic tanks and eco-toilets will be used. • Unauthorized dumping of wastewater will be prohibited.

Construction • Settling ponds and oil Contractor OEE, EMU, wastewater separators will be installed EEM at each construction site. recycled water will be used in spraying for dust control.

Handling of • A construction materials Contractor OEE, EMU, chemicals handling protocol (i.e., EEM storage away from watercourses and provision of retention areas to contain accidental spills of such toxic, hazardous, and harmful construction

A1-6 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency materials as caustic and acidic substances, oil and petroleum products, and asphalt materials) will be prepared and applied to prevent soil and surface/ ground water pollution. • Workers (especially painters) will be trained on safe and diligent handling of chemicals to avoid accidental spills, and on emergency response when a spill would occur. • A prevention and emergency response plan will be developed and implemented. • Earmarked fund for containing bridge chemical spill emergency will be established and maintained.

Household • Prior to demolition, houses Demolition OEE, EMU, chemicals will be searched and Contractor EEM cleared of household chemicals and any other toxic substances which will be sent to the municipal toxic wastes depository for safe disposal.

3. Air Pollution Dust from • Vehicles delivering Contractor OEE, WMU, material granular and/or fine EEM delivery and materials to the sites will be construction covered. vehicles • Wheels of construction vehicles will be cleansed regularly of soils.

Dust from • Materials storage sites Contractor OEE, EMU, construction must be 300 m from EEM sites residential areas and covered or sprayed with water. • Extra care will be paid during dry, strong windy days. • Water will be sprayed on construction sites twice a day in the dry days if

A1-7 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency needed. • Upon completion of civil works, all construction sites will be required to be re- vegetated with trees and grasses.

Dust from • All roads and pavements Contractor OEE, EMU, construction used by vehicles of the EEM roads contractors or suppliers will be kept clean and clear of all dust, mud, or extraneous materials dropped by their construction vehicles. Cleaning will be done on a regular basis. • Water will be sprayed on access roads twice a day as needed.

Emissions • Vehicle emissions will Contractor OEE, EMU, from vehicles comply with Limits and EEM, and Measurement Methods for equipment Emissions from Light-duty Vehicles(Phase III,IV) (GB18352-2005), Limits and Measurement Methods for Exhaust Pollutants from Compression Ignition and Gas Fuelled Ignition Engines of Vehicles(Phase III,IV,V)(GB17691-2005), Limits and Measurement Methods for Crankcase Pollutants From Heavy- duty Vehicles Equipped with P.I Engines(GB 11340-2005), Limits and Measurement Methods for Exhaust Smoke from C.I.E.(Compression Ignition Engine) and Vehicle Equipped with C.I.E.(GB3847-2005), and Limits and Measurement Methods for Exhaust Pollutants from Vehicles Equipped Ignition Engine under Two-speed Idle Conditions and Simple Driving Mode

A1-8 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Conditions(GB18285- 2005). Use gas purifiers to minimize the exhaust fumes. • Equipment and machinery emissions must comply with Integrated Emission Standard of Air Pollutants (GB16297-1996). • A regular inspection and certification system will be initiated to make sure that exhaust gases complied with emission standards.

4. Noise Noise from • Noise from equipment and Contractor OEE, EMU, equipment machinery will comply with EEM and vehicles Noise Limits for Construction Site (GB12523-1990). • Equipment and machinery will be inspected and maintained regularly. • Large trucks will be kept away from residential areas. • At construction sites within 500 m of the nearest residential area, noisy construction work will be stopped between 22:00 and 06:00 hours.

Demolition • House demolition at Demolition OEE, EMU, construction sites will be Contractor EEM required to stop between 22:00 and 06:30.

Community • Interviews with residents OEE, EMU EEM, PIC complaints living adjacent to about noise construction sites will be conducted on a regular basis to identify community complaints about noise, and seek suggestions from community members to reduce noise annoyance. • Community suggestions will be used to adjust work hours of noise-generating equipment and machinery.

A1-9 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Sensitive • When activities are Contractor OEE, EMU, receptors unavoidable during the EEM school season, the use of heavy equipment will be restricted to weekends and non-class hours. • Protection measures (e.g., sound-proof windows) will be implemented for sensitive receptors for which noise levels do not meet national standards.

5. Solid Wastes Domestic • Multi-compartment Contractor OEE, EMU, waste from collection bins will be EEM construction provided to facilitate reuse, camps recycling and composting of solid waste. • Wastes will be stored away from water bodies and will be regularly collected by the city sanitation bureau and hauled to the municipal sanitary landfill.

Asbestos • The cities’ centers for Centres for EPBs, containing disposal of toxic and disposal of GPMO, EEM material hazardous waste (under toxic and (ACM) the EPB) will conduct hazardous visual inspection of waste, buildings to be demolished licensed to confirm absence or demolition presence of ACM. companies • In case ACM presence is confirmed, a licensed company will be appointed to develop and implement an asbestos management plan (AMP). The plan must define ACM locations, procedures for monitoring its condition, procedures to access, remove, transport and dispose ACM, and training of staff. • Conduct clearance monitoring before the affected building is demolished.

A1-10 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Demolition • Professional demolition Demolition OEE, EMU, waste companies will be contractor EEM contracted to carry out housing demolition. • If presence of ACM is confirmed, demolition contractors would be required to demonstrate having capability to observe good practice standards with asbestos, including training of workers and supervisors, possession of (or means of access to) adequate equipment and supplies for the scope of envisioned works, and a record of compliance with regulations on previous work. • Reusable and recyclable materials (such as bricks, windows and doors, steel bars) will be collected for reuse and recycle. Remaining construction wastes will be transported to the municipal landfill. • Upon completion of construction, clean up construction and demolition wastes in timely manner. Re-vegetate all the construction sites with trees and grasses.

6. Impact on Flora Vegetation • Minimize disturbance to Contractor OEE, EMU, original vegetation. EEM • Preserve existing vegetation where no construction activity is planned or temporarily to preserve vegetation where activity is planned for a later date. • Rehabilitate disposal and borrow sites into grassland, woodland, or farmland after closing.

A1-11 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Forest cover • Compensatory Forest GPMO, City reforestation of 98 ha in Bureaus of PMO, EEM total for three cities, Three Project including 10.2 ha for Beihai Cities city, 47.9 ha for Qinzhou city and 39.9 ha for Fangchenggang city, will be undertaken, as required by the PRC national policy.

7. Sanitation and Health and • Identify all potential health Contractor OEE, EMU, Safety sanitation of hazards, establish and EEM workers implement professional health and sanitation plan for the engineering program. • Maintain and monitor sanitation condition in construction areas. • Regular health checks for construction workers. • Safety, health and sanitation training for construction workers.

Safety of the • Ensure all construction Contractor OEE, EMU, public and the sites provide the necessary EEM workers personal protective equipment and other resources to create a safe working environment; • Require construction site operations to comply with PRC state administration of worker safety laws and regulations. • Identify all potential safety hazards, establish and implement safety plan for the engineering program. • Put up warning signs to alert the public of potential safety risks in and around the construction sites.

8. Energy Use Equipment • Select the equipment and Contractor OEE, EMU, and GHG selection machinery in compliance EEM Emission with the national standard and obtaining the energy conservation certification.

A1-12 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Energy • Set up operation Contractor OEE, EMU, conservation optimization program to EEM of the avoid the unnecessary transportation running of vehicle. vehicles • Use low emission vehicles (refer to item 3).

9. Climate Permeable • Permeable interlocking Contractor OEE, EMU, Resilience bricks blocks will be used for all EEM sidewalks

10. Public Utility Public utility • Public utility conduit will be Contractor OEE, EMU, Conduit conduit for built for Qinzhou Xincheng EEM Qinzhou road network to avoid road Xincheng road breaks network

11. Social/ Cultural Resettlement • All affected persons will be PIC, City EA, IA Considerations compensated and resettled Resettlement in a timely and adequate Office manner, in accordance with the resettlement plans.

Economic • All affected employees of PIC IA, EA, ADB displacement the Zhulin salt farms will be taken care of in the framework of the re- employment plan.

Traffic • Build interim roads. Contractor OEE, EEM, management • Select transport routes to City Traffic reduce disturbance to Bureau regular traffic. • Divert traffic at peak traffic hours, and reinstating the area to its original condition on completion of construction.

Cultural • The local relics bureau will Contractor OEE, EMU, heritage be contacted immediately EEM, when any relic is Provincial discovered during Cultural excavation. Heritage • Cultural heritage sites will Bureau be preserved where identified. In accordance with the PRC regulations, no person shall destroy, damage, deface, conceal, or otherwise interfere with

A1-13 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency a relic. • If an important site is unearthed, work should be stopped immediately and the matter promptly referred to the county, municipal, provincial or state level relics agencies for evaluation and decision on appropriate actions.

12. Environmental Workers’ • Training of workers on Contractor OEE, EMU, Protection training health and safety. EEM Training • Training of workers on environmental protection. • Train the construction workers on the energy conservation and emission reduction.

13. Wanheshan NR Use of noise- • 3-km section passing by Contractor EMU, EEM, (Mitigation reducing the NR will adopted asphalt Supervisory Measures) surface surface Committee

Construction • Construction activities will Contractor OEE, EMU, and through- be scheduled to avoid the EEM, traffic noise migratory period (end of Supervisory March to end of April; mid- Committee September to end of October), breeding period (early April to end of June), and periods of the day of leaving and returning to the nests (04:30-05:40 and 16:00-19:00). • Use of heavy vehicles, equipment and machinery will be avoided to the best extent possible. • Equipment and machinery used for this section will be inspected to meet the national standards and maintained prior to commencement of construction. • Large trucks will be kept away from residential areas. • Construction camp will be located at least 2 km away from NR.

A1-14 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency • Erect warning signs to prohibit horn blowing and throwing of garbage. • Awareness building and training of construction workers. • Noise monitoring at the border of the NR will be undertaken on a weekly basis. Mitigation measures will be formulated and implemented if noise level exceeds class I limit.

Establish • Dense trees will be planted Contractor EMU, EEM, green belt for to close the two openings Supervisory two openings alongside the section of the Committee NR as sound and light barriers for the NR

Light pollution • In order to minimize Contractor OEE, EMU, disturbance to the NR, no EEM, EPB, road lights will be installed Supervisory in the NR section of the Committee road.

Air emissions • Suspend construction Contractor OEE, EMU, activities during dry, windy EEM, EPB, days. Supervisory • Construction roads and Committee sites will be sprayed more frequently to suppress dust. • Construction vehicles will be cleansed of mud. • Vehicles transporting dust- generating materials will be tightly covered. • All vehicles will be inspected to meet national emission standards and maintained before being dispatched to work in this section.

Workers’ • Road side facing the NR Contractor OEE, EMU, disturbance to will be fenced to prevent EEM, herons construction workers from Supervisory entering the NR. Committee

A1-15 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Dumping of • Signs will be posted along Contractor OEE, EMU, liquid and the road section to prohibit EEM, solid wastes the dumping of liquid and Supervisory solid wastes. Committee

Borrow and • Neither borrow nor spoil Contractor OEE, EMU, spoil disposal disposal will be allowed EEM, along the road section. Supervisory Committee Monitoring • Monitoring of the impact of Supervisory EA, ADB construction activities on Committee the NR and heron population and recommend additional mitigation measures if necessary

14. Wanheshan NR Detailed TOR • Define detailed terms of LIEC, NR EA, ADB, (Enhancement for reference for local policy supervision Fangcheng Measures) enhancement formulation and scientific committee Forest measures studies and investigations, Bureau, EPB including activities and outputs; the TOR will be included in the loan implementation inception report.

Reforestation • Reforest the Wanheshan Local Supervisory of Wanheshan mountain as the nesting Conservation Committee, mountain and breeding ground for Society EA, ADB, herons for 25 years at an Fangcheng investment of CNY 600,000 Forest Bureau, EPB

Strengthen • Strengthen NR patrol to Local Supervisory NR patrol reduce poaching of herons Conservation Committee, at a cost of CNY 250,000 Society EA, ADB, over 25 years Fangcheng Forest Bureau, EPB

Heron rescue • Increase rescue and Local Supervisory and quarantine to reduce Conservation Committee, quarantine diseases such as bird flu at Society EA, ADB, a cost of CNY 300,000 Fangcheng over 25 years Forest Bureau, EPB

Community • Community conservation Local EA, ADB, education education program will be Conservation GEPD designed and implemented Society, at a cost of CNY 375,000 Fangcheng over 25 years Forest Bureau, EPB

A1-16 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency

Capacity • Formulate local policy, Forest Bureau, EA, ADB, building for training of conservation EPB, Local GEPD responsible officials and local Conservation and conservation society Society supervisory members, conduct studies authorities and investigations

15. Chashan Fencing • Road section facing the Contractor OEE, EMU, Reservoir Chashan reservoir will be EEM, fenced to prevent Reservoir construction workers from Mgt Office, entering the reservoir area. WRB

Reforestation • Plant dense trees Contractor OEE, EMU, alongside the road section EEM, of the Chashan reservoir Reservoir as part of road landscaping Mgt Committee, WRB

Dumping of • Signs will be posted along Contractor OEE, EMU, liquid and the road section to prohibit EEM, solid wastes the dumping of liquid and Reservoir solid wastes. Mgt Office, WRB

Borrow and • Neither borrow nor spoil Contractor OEE, EMU, spoil disposal disposal will be allowed EEM, along the road section. Reservoir Mgt Office, WRB Erect advisory • Erect advisory and warning Contractor OEE, EMU, and warning signs for drivers not to liter EEM, signs and for drivers of Reservoir hazardous and dangerous Mgt Office, goods to slow down and WRB take caution Water quality • Baseline water quality LEI OEE, EMU, monitoring monitoring prior to EEM, construction, semi-annually Reservoir during construction Mgt Office, WRB

C. Operation Phase for Roads 1. Soil Erosion Rehabilitated • Regular inspections will be POC IA, WRB sites undertaken to ensure proper maintenance of drainage structures and re- vegetated areas in accordance with requirements of soil

A1-17 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency erosion prevention plan. • Maintenance of road slopes, cuts and embankments—such as watering, fertilizing, pest control and re-planting— will be carried out regularly during road operation. • Maintenance will be budgeted as part of regular infrastructure maintenance programs. • Regular monitoring of erosion prevention and control measures will be undertaken by WRB and EPB.

2. Water Pollution Wastewater • Wastewater from POC EPB from maintenance stations will maintenance be directly discharged to stations municipal sewers that will go to the municipal WWTP. • In cases where connection with municipal sewers is not available, septic tank or on-site wastewater treatment facility will be installed for treating wastewater before being discharged into receiving water bodies.

3. Air Pollution Vehicles • All vehicles will pass City Traffic IA national standard test as Bureau part of annual vehicle safety and exhaust inspection. • Random spot checks are conducted and noncompliance will result in a fine and a deadline for repairs to meet vehicular emissions standards.

4. Noise Noise from • Sound-proof measures will POC, LEI IA roads be inspected and maintained regularly. • Sensitive receptors and residential neighbourhoods along the road corridor will be monitored for noise

A1-18 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency annoyance from the road network. Mitigation measures will be formulated and implemented if noise limit does not meet the national standard. • Future urban development will be planned to abide by the noise-safe distances. In cases whereby such distances are not possible, such mitigation measures as sound barriers, sound- proof windows, sound- breaking tree lines and traffic control will be adopted.

Wanheshan • Green belt alongside the POC, LEI IA, EPB, NR NR section of the road will Forest be inspected and Bureau, Local maintained quarterly. Conservation • Noise levels will be Society monitored semi-annually during first 5 years of operation, and annually thereafter. • See construction section above for other mitigation and enhancement measures.

5. Solid Wastes Garbage from • Garbage bins and POC IA, EPB operation of containers will be placed road network along the road network. • Road cleaning will be undertaken on a regular basis.

6. Flora and Vegetation • All vegetation covers will POC IA, EPB Fauna be properly maintained. • All slope stabilization sites will be inspected regularly. • If signs of failure are discovered, repair will be immediately initiated.

Herons • Heron population and Local Forest Wanheshan ecosystem will Conservation Bureau, EPB be monitored by local Society conservation society, local

A1-19 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency forest bureau and local EPB. Mitigation measures will be formulated and implemented immediately. • Forest bureau and EPB will continue to implement the annual reforestation program. • Funding for local conservation society will be increased.

7. Energy Use Vehicles • Vehicular fuel efficiency Transport EA, IA and GHG standards will be Bureau Emissions stringently enforced during vehicle inspections. • Driver training/outreach program for fuel economy.

8. Community Sanitation • All roads will be kept in POC IA, Transport Health and sanitary conditions. Bureau Safety Road safety • Speed limits will be Transport IA for drivers and stringently enforced by Bureau, Police community local police. Bureau members • Road safety will be incorporated/strengthened in driving training programs. • Road safety education program for local communities will be implemented/improved.

9. Environmental Chemical • Emergency preparedness Road POC, IA, EPB, City Risks spills and response for project Local Emergency roads will be fully Transport Preparedness incorporated into the local Bureau, Local and sectoral and areal Police Bureau Response emergency preparedness Office and response plans. • The rule of banning transport of hazardous, toxic and dangerous goods on the inner city roads (Qinzhou) will be stringently enforced by local transportation and police bureau. • Environmental emergency number will be posted on roadsides.

A1-20 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency • Emergency holding and clean-up reserve fund of CNY 200,000 will be established for each road project. • Emergency monitoring fund of CNY 50,000 will be established and maintained for each road project.

D. Operation Phase for Maoling WWTP 1. Water Quality Impact of • Conduct environmental EMS, POC EPB effluent from inspection by EMS before WWTP on the formal operations to receiving make sure the effluents water bodies meet class 1B of Discharge Standards of Pollutants for Municipal WWTPs (GB18918-2002). • Implement strict regular maintenance to ensure normal operation of all equipment. • Set up an effluent monitoring program to regularly monitor effluent and surface water quality.

WWTP • Use dual power supply for PIC, POC EPB treatment the WWTP. The operator performance, should store a generator malfunction and enough diesel oil for power failure. • Establish an in-house analytical lab with wastewater sampler, pH meter, flow meter, conductivity meter, UV/VIS spectrophotometer, DO meter, COD speedy tester, thermostat incubator, electric balance, centrifuge and Muffe furnace. • Prepare O&M manuals • Provide adequate training to the operator on proper operation and maintenance of the facilities. • Set up appropriate internal and external protocols for communicating with EPB, health and safety

A1-21 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency authorities, effluent reuse users, and other agencies.

Illegal • Develop industrial pollution EPB IA industrial control, process control discharges and management plans to keep adequate treatment of industrial waste before discharge into the sewer system. • Set up an industrial wastewater monitoring system, and strictly enforce prohibition of illegal industrial discharges.

2. Air Quality Odour from • Arrange the sludge POC EPB WWTP dewatering process inside of appropriate building. • Clean up and dispose of sludge in timely manner. Avoid storage of dewatered sludge in WWTP for long time. • Haul the dewatered sludge for the final disposal in a sealed truck. • Carry out regular odour monitoring.

Odour from • Cover the inflow chamber. POC EPB pumping • No new residential house station to be built within 100 m sanitary buffer from pumping station. • Strengthen the management and forestation. • Carry out regular odour monitoring.

3. Noise Noise from • Use of an underground PIC, POC EPB pumping pump to pump back to the station activated sludge tank the effluent from the mechanical dewatering unit. • Regularly maintain machinery and keep equipment in good condition. • Regularly monitor noise

A1-22 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency and set up mechanism for compliance.

Noise from • Selected low-noise PIC, POC EPB equipment equipment and vehicles. operation • Install high-noise equipment indoors with adequate thick walls, soundproof doors, and double-glazed windows.

4. Solid Waste Dewatered • Carry chemical tests of PIC, POC EPB sludge from sludge to identify whether WWTP the quality of sludge complies with Discharge Standards of Pollutants for Municipal WWTPs (GB18918-2002) • Maintain the dewatering equipment regularly. • Control the water content

5. Ecology Vegetation • Provide a vegetation buffer PIC, POC EPB zone around the WWTP and the pump station.

6. Environmental Accidental • Enforce disinfection PIC, POC EPB Risks discharge process before discharge. from • Install automatic flow meter WWTP and water quality monitoring system. • Establish emergency preparedness and response planning framework, prior to the operation of the WWTP, and develop the said plan during the first year of operation. The plan should address training, resources, responsibilities, communication, procedures, and other aspects required to respond effectively to emergencies associated with the risk of accidental discharges. • Emergency preparedness and response for WWTP will be fully incorporated into the local sectoral and

A1-23 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency areal emergency preparedness and response plans. • Disclose appropriate information about emergency preparedness and response activities, resources, and responsibilities to affected communities. • Provide a tank for the storage of wastewater discharged in emergency during leakage or spill • Take measures if any potential incidents or illegal discharge is found during regular inspection and maintenance. • Through training, improve skills of workers on handling emergencies. • Strengthen the skills of workers on handing daily operation management through on job training. • Standby equipment and pipes will be installed to reduce the risk of accidental overflow. • Emergency holding pond for WWTP and industrial enterprises in the Maoling industrial park will be maintained regularly.

Leaking or • Use antiseptic pipes of high POC EPB bursting of quality. Regularly check the pipes interface of the pipeline where leakage is prone to happen. • Provide adequate supervision, management and proper maintenance to the sewer pipes. • Enhance the operation monitoring. • Provide an emergency response plan for the leaking or bursting of pipes.

A1-24 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency Abnormal • Maintain the odour control POC EPB functioning of facility regularly. odour control • Employ standby equipment facility for this type of accident.

7. Energy Idle machine • Arrange the treatment units POC IA Conservation and operator in a form that can meet and GHG different influent volume Emission and keep the operated Reduction equipment in its full productive capacity as possible. • Change the number of operation units based on the different flow volume of water. • Employ frequency-variable equipment.

E. Capacity Building 1. Training Environmental • See training plan below training of EMU, city PMOs, GPMO and contractors

2. Climate Technical • Engage 3 person-month of GPMO PLG, ADB Proofing assistance on international and 5 person- climate- month of national proofing urban consultants by QBS infrastructure method. The objective of the activity is to assist three Beibu Gulf cities to strengthen capacity to design urban infrastructure design and planning for future climate change impacts by developing appropriate engineering guidelines based on international and national best practices. 3. Human- Human- • Engage 4 person-month of GPMO PLG, ADB Centered centered international and 5 person- Universal universal month of national Design design for consultants by QBS urban method. The objective of infrastructure the activity is to assist three and public Beibu Gulf cities to facility strengthen capacity to implement people-friendly

A1-25 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Company Agency urban planning and design for public infrastructures and facilities by developing appropriate guidelines based on national laws and regulation, international standards, and international and national best practices.

ADB = Asian Development Bank, CEIA = consolidated environmental impact assessment, EEM = external environmental monitor (as part of the implementation consultancy), EIA = environmental impact assessment, EMP = environmental management plan, EPB = environmental protection bureau at the city level, GEPD = Guangxi environmental protection department, GPLG = Guangxi project leading group, GPMO = Guangxi project management office, OEE = onsite environmental engineer, PIC = project implementing company, POC = project operating company, PPTA = project preparatory technical assistance, PRC = People’s Republic of China, RFP = request for proposal, TOR = terms of reference, WRB = water resources bureau at the city level, WWTP = wastewater treatment plant. Sources: Domestic EIAs, and consultations with EA, IAs, PICs and relevant government agencies.

C. Environmental Monitoring and Inspection

5. An environmental monitoring program is presented in Table A1.2. This program considers the scope of monitoring, environmental media, monitoring parameters, time and frequency, implementing and supervising agencies. The monitoring will follow the methodology provided in the national standard methods for monitoring pollutants. Other associated standards are national environmental quality standards and pollutant discharge/emission standards.

6. Internal Monitoring and Inspection: Internal and external monitoring will be undertaken to oversee the implementation of the EMP and monitor the actual environmental impacts that will occur. The internal environmental monitoring that requires field sampling and laboratory analysis of emissions and ambient environmental quality with respect to air, water and noise will be done by the licensed environmental institute (LEI) under contract to the PIC. The internal monitoring will also cover non-quantitative parameters such as solid waste management and soil erosion control, and it will be carried out through visual inspections by the onsite environmental engineer (OEE) of the construction contractor and the EMU officers of the PIC. GPMO and city PMO officers will join the internal monitoring and inspection activities from time to time.

7. Given the environmental sensitivity of the Wanheshan heron nature reserve, a supervisory committee was created as an oversight group with advisory and supervisory authority (see Chapter I-4). The committee will monitor the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions. The committee will inspect the construction site along the section adjacent to the nature reserve on a monthly basis during the construction period, and bi-weekly during peak construction.

8. External Monitoring and Inspection: GPMO will recruit an external environmental monitor (EEM). The EEM will review all environment reports, including internal and compliance monitoring reports and the semi-annual environment performance report, and prepare a semi- annual environment monitoring verification report. The report should confirm the project’s

A1-26 Appendix 1

compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues and necessary corrective actions, and reflect these in a corrective action plan. The EEM will also participate in field inspections together with the OEE and EMU officers or undertake independent field inspections to verify the implementation of the EMP.

9. Compliance Monitoring and Inspection: The Environmental Monitoring Station (EMS) at the city level will be responsible to undertake regular and random compliance monitoring and inspection before, during, and after construction, as well as in the event of emergencies. If abnormalities are found, the EPB will impose a fine and issue a notice of rectification with a specific deadline.

10. Environmental Acceptance Monitoring and Audit: Moreover, within 3 months after each subproject completion, or no later than 1 year with permission from the responsible environmental authorities, environmental acceptance monitoring and audit reports will be (i) prepared by a qualified environmental institute in accordance with the MEP Guideline on Project Completion Environmental Audit (2001); (ii) reviewed for approval by environmental authorities who has given the approval to the same individual EIA, and (iii) finally submitted to the Asian Development Bank (ADB).

11. Ambient Environmental Monitoring during Project Operations: Ambient environmental monitoring in relation to the subprojects will be incorporated into the regular ambient environmental monitoring program of each project city. The monitoring will cover water quality, air quality and acoustic quality. Air quality and noise monitoring will cover the residential areas along the road alignments and surrounding the Maoling WWTP. Water quality monitoring will include the Xiaotaojiang river, Maolingjiang river and Maowei bay. Air quality, noise and ecological monitoring for the Wanheshan heron nature reserve will be conducted semi-annually by Fangchenggang EPB. Water quality monitoring for the Chashan reservoir will be done semi- annually by the reservoir management committee.

12. Environmental monitoring, including the environmental benefits monitoring, will be incorporated into the Project Performance management System (PPMS). The GPMO with assistance from the PIC and POC will be responsible for analyzing and consolidating the data through their management information system. The PPMS will be designed to allow adequate flexibility to adopt remedial actions regarding project design, schedules, activities, and development impacts. At the beginning of the project, the GPMO, IAs, the PICs, and consultants will develop comprehensive PPMS procedures to systematically generate data on inputs and outputs of the project components and agree on environmental and related social economic indicators to be used to measure project impacts. The GPMO, IAs, the PICs/POCs will refine the PPMS framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness.

13. The monitoring results will be used to evaluate: (i) the extent and severity of environmental impacts compared with the predicted impacts, (ii) performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the EMPs. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Modification of measures required by the EMPs will be performed, if necessary. The GPMO and EPB play critical roles in this feedback and adjustment mechanism as shown in Figure A1.1.

A1-27 Appendix 1

14. The environmental monitoring program is included in Table A1.2. The cost estimates for the environmental monitoring program are shown in Table A1.7. Before implementing the monitoring plan, responsible agencies will provide more accurate estimates of the costs and present a further detailed breakdown of the cost estimates. During project implementation, the costs will be adjusted based on actual requirements.

Table A1.2: Environmental Monitoring Program Time and Implementing Supervising Item Parameters Location Frequency Agency Agency A. Construction (Internal Monitoring) 1. Water Sewage and Construction Visual inspection OEE, EMU EEM Quality – construction camps and for proper Wastewater wastewater construction sites operation of settling ponds, septic tanks and sewerage connections; monthly

Water pH, NH3-N, TN, For each 3 samples each Licensed EMU, EEM, Quality – TP, BOD, COD, component, time; at beginning environmental EPB Surface SS, oils minimum 2 of construction institute Water locations on the and quarterly river upstream and thereafter downstream of the construction site

2. Air TSP, PM10 2 monitoring 3 samples at each Licensed EMU, EEM, locations for each location each time; environmental EPB construction site semi-annually institute

3. Noise Leq 1 location at the Twice (day-time Licensed EMU, EEM, border with and night-time) environmental EPB settlements within each time; monthly institute 200 m of each during peak construction site construction, quarterly otherwise 4. Solid Waste Garbage from All camps Visual inspection; OEE, EMU EEM construction biweekly camps

Demolition All buildings Visual inspection City centres EPBs waste subject to to confirm for disposal of deconstruction presence/absence toxic and of asbestos, once hazardous before demolition waste

Visual inspection OEE, EMU EEM of demolition sites, weekly 5. Soil and Removal of All sites Visual inspection OEE, EMU EEM Vegetation vegetation and weekly exposed surface

A1-28 Appendix 1

Time and Implementing Supervising Item Parameters Location Frequency Agency Agency

Soil Erosion All borrow pits, Visual inspection OEE, EMU EEM control spoil disposal sites biweekly measures and construction (Topsoil sites stockpile, detention ponds construction, intercepting ditches, rehabilitate construction sites)

Compensatory Areas designated Semi-annually, LIEC, EEM GPMO reforestation: 98 by the forest until end of project ha in total, bureaus of the implementation including 10.2 three project cities ha in Beihai city, 47.9 ha in Qinzhou city and 39.9 ha in Fangchenggang city

6. Wanheshan TSP Five locations 3 samples at each Licensed EMU, EEM, NR along the border location each time; environmental Supervisory facing road weekly institute Committee

Noise (Leq) 5 locations along Twice (day-time Licensed EMU, EEM, the borderline of and night-time) environmental Supervisory the NR facing the each time; weekly institute Committee road during entire construction period

Garbage from Along NR section Visual inspection; OEE, EMU, EEM, construction of road twice per week Local Supervisory workers Conservation Committee Society

Soil and Along NR section Visual inspection OEE, EMU, EEM, vegetation of road for excessive Local Supervisory excavation and Conservation Committee vegetation Society removal, water spray of dust sources, soil erosion; twice per week

Construction Along NR section Interviews with OEE, EMU, EEM, workers of road local residents; Local Supervisory entering the NR twice per week Conservation Committee

A1-29 Appendix 1

Time and Implementing Supervising Item Parameters Location Frequency Agency Agency Society

Heron NR Quarterly site Supervisory population surveys during Committee construction; annual site surveys during operation

7. Chashan Garbage from Along reservoir Visual inspection; OEE, EMU EEM, Reservoir construction section of road twice per week Chashan workers Reservoir Mgt Committee

Construction Along reservoir Interviews with OEE, EMU EEM, workers section of road reservoir Chashan entering the management Reservoir reservoir area office; weekly Mgt Committee

Water quality: Head, center and Once before Licensed EMU, EEM, 23 basic intake of reservoir construction; once environmental EPB, WRB parameters as quarterly during institute per class III of construction; once PRC Surface annually after Water Quality construction Standards (GB 3838-2002)

8. Occupational Health status, Construction sites Quarterly during City Health EEM Health and hygiene status, and work camps construction Bureau, OEE, Safety availability of EMU clean water, emergency response plans.

B. Project Completion Environmental Audit 1. Air Quality TSP, PM10 2 locations for Once upon Licensed EPB each component completion, 3 environmental samples per day institute for 3 consecutive days at each location

H2S, NH3, 4 borders of Once upon Licensed EPB Maoling WWTP completion, 3 environmental samples per day institute for 3 consecutive days

A1-30 Appendix 1

Time and Implementing Supervising Item Parameters Location Frequency Agency Agency 2. Noise Leq (dB(A)) Minimal 4 2 samples for 1 Licensed EPB locations for each day at each environmental component at location institute boundary

3. Soil and Re-vegetation, All sites Visual inspection Licensed EPB Vegetation landscaping for compliance environmental with design Institute

4. WWTP 12 basic and 7 Maoling WWTP Once upon Licensed EPB Effluent category I-B effluent outlet completion, 3 environmental water quality samples per day institute parameters as for 3 consecutive per PRC days at each Effluent location Standard for Urban WWTPs (GB 18918- 2002).

5. WWTP Water content, Maoling WWTP Once upon Licensed EPB Sludge coliform sludge workshop completion, 3 environmental samples per day institute for 3 consecutive days

6. Wanheshan Closures of 2 NR section of road Visual inspection Licensed EPB NR openings for compliance environmental with design Institute

Air: TSP 5 locations along Once upon Licensed EPB NR border completion, 3 environmental samples per day Institute for 3 consecutive days at each location

Noise 5 locations along 2 samples for 1 Licensed EPB NR border day at each environmental location institute

7. Chashan Fencing Road section Visual inspection Licensed EPB Reservoir abutting reservoir for compliance environmental with design Institute

C. Operation (Compliance Monitoring) 1. WWTP 12 basic and 7 Maoling WWTP Automated online EMS EPB Influent and category I water monitoring, and Effluent quality unannounced parameters as visits by city EPB per PRC semi-annually Effluent Standard for

A1-31 Appendix 1

Time and Implementing Supervising Item Parameters Location Frequency Agency Agency Urban WWTPs (GB 18918- 2002).

2. Sludge Water content, Maoling WWTP 3 samples per EMS EPB coliform day for 1 day; semi-annually

3. Air Quality TSP, PM10, 4 borders of 3 samples per EMS EPB H2S, NH3 Maoling WWTP day for 3 consecutive days; semi-annually

4. Noise Leq (dB(A)) 4 borders of the 2 samples each EMS EPB Maoling WWTP time, 2 samples and sensitive during daytime, 2 receptors at night each time; semi- annually

D. Operation (Ambient Monitoring) 1. Air Quality TSP, PM10, Wanheshan NR: 3 3 samples per Licensed EPB NOx, NO2, CO locations at border day for 3 environmental as per PRC of NR facing road; consecutive days; institute Ambient Air Xincheng district: 9 semi-annually Quality locations evenly Standards (GB distributed; 3095-1996). Other roads: sensitive receptors within 200 of alignments

2. Surface 23 basic Chashan reservoir; 3 samples each Licensed EPB Water parameters as Nankang river; time; semi- environmental Quality per class III of Xiaotaojiang river; annually institute PRC Surface Maolingjiang river Water Quality Standards (GB 3838-2002)

3. Marine 35 parameters Maowei bay 3 samples each Licensed EPB Water as per PRC time; semi- environmental Quality Marine Water annually institute Quality Standards (GB 3097-1997).

4. Noise Leq (dB(A)) as Wanheshan NR: 3 2 samples each Licensed EPB per PRC locations at border time, 2 samples environmental Ambient of NR facing road; during daytime, 2 institute Acoustic Xincheng district: 9 at night each Quality locations evenly time; semi- Standards (GB distributed; annually

A1-32 Appendix 1

Time and Implementing Supervising Item Parameters Location Frequency Agency Agency 3096-2008). Other roads: sensitive receptors within 200 of alignments 5. Heron Number of Wanheshan Once a year Local Forest Population herons in the mountain Conservation Bureau, EPB NR Society

BOD = biochemical oxygen demand, COD = chemical oxygen demand, dB(A) = A-weighted decibel, EEM = external environmental monitor (as part of the implementation consultancy),EMS = environmental monitoring station at the city level, EPB = environmental protection bureau at the city level, GEPD = GZAR environmental protection department, GPMO = GZAR project management office, Leq = equivalent continuous noise level, LRB = land resources bureau at the city level, m = meter, NH3-N = ammonia nitrogen, OEE = onsite environmental engineer, pH = measure of acidity and alkalinity, PM10 = particulate matter smaller than 10 micrometers, SS = suspended solids, TN = total nitrogen, TP = total phosphor, TSP = total suspended particulates, WRB = water resource bureau at the city level. Source(s): Domestic EIAs, and consultations with GPMO, city PMOs, EPBs and PICs.

D. Public Consultation

i. Public Consultation during Project Preparation

15. Various public consultations were conducted in the course of the preparation of the feasibility study reports and EIAs. During the feasibility studies, the respective municipal governments were consulted to assist in route/site and process selections. During EIAs and project preparatory technical assistance, public consultations with various groups of stakeholders were conducted. The main focuses of public consultations were to assess the environmental impacts of the proposed subprojects on nearby residents and mitigation measures, as well as resettlement issues. These activities were carried out in accordance with PRC Interim Guidelines on Public Participation in Environmental Impact Assessment (2006) and ADB Safeguard Policy Statement (2009).

16. Extensive public consultations have been undertaken in regard to the Wanheshan Herons NR. The consulted responsible authorities included the Fangchenggang Municipal Forest Bureau, Fangcheng District Forest Bureau, Fangchenggang Municipal Environmental Protection Bureau and Fangcheng District Environmental Protection Bureau. Twenty survey questionnaires were distributed to local community members and eighteen were returned.

17. Special consultations were also undertaken with Mr. Xu Xinbang, representative of the Xu family and head of the Wanheshan Herons Conservation Society, and Professor Zhou Fang, a well-known heron ecologist with extensive research experience with the Wanheshan NR and chair of the Guangxi provincial nature reserve proposal review and approval committee.

ii. Future Public Consultation Plan

18. Future plans for public involvement during the design, construction, and operation phases were developed during the project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the project is completed. They include several types of consultations, e.g., site visits, workshops, investigation of specific issues, interviews, and public hearings. A special

A1-33 Appendix 1

consultation program will be implemented for the Wanheshan heron nature reserve. The public consultation program for project preparation, implementation and operation are presented in Table A1.3.

19. Public participation plans are part of the project implementation and management plan. The PICs are responsible for public participation during project implementation. The PICs will also establish environmental management units (EMUs) for supervising implementation, continuing public consultation, monitoring progress, and responding to grievances. The staff at the offices will be well trained to handle crisis situations or conflicts with residents due to distress from environmental impacts. Estimated costs for public participation activities during project construction and operation are presented in Table A1.7, and they are included in the project investment plan. In addition, the established feedback mechanisms (Figure A1.1) will ensure timely feedback and measures to address any concerns raised by the project affected communities.

Table A1.3: Public Consultation Program Organizer Approach / Times Subjects Participants 1. Project Preparation GPMO, PIC, • EIA public opinion surveys: Priority, design, GPMO, PIC, Design Institutes, once for each subproject environmental benefits Design Institutes, EIA institutes, RP • Expert panel review: once for and impacts, social EIA institutes, institutes, EPB, each subproject benefits and impacts, EPB, other Forest Bureau • Socioeconomic and AP mitigation measures, provincial and surveys attitudes toward municipal • Public consultation meeting + subproject project, and government questionnaire: once for overall suggestions stakeholders, project community • Site visits: multiple times representatives

PPTA • Site visits (multiple times) Priority, design, GPMO, PIC, EIA Consultants, ADB • Formal meetings with GPMO, environmental benefits institutes, EPB, PMOs, IAs, PICs (multiple and impacts, social municipal times) benefits and impacts, government • Formal and informal meetings mitigation measures, stakeholders, with Xu family, local attitudes toward community conservation society, nearby subproject project, and representatives, , residents of Wanheshan NR suggestions Wanheshan NR local conservation society 2. Construction Licensed • Public consultation and site Adjusting mitigation Residents within environmental visits: at least once a year measures if necessary, construction institute, EMU, construction impacts, area LIEC comments and suggestions

• Expert workshop or press Comments and Experts from conference: at least once Suggestions on mitigation various sectors, measures, public media opinions

• Public information session: at Adjusting mitigation Representatives of least once a year measures if necessary, residents and construction impacts, social sectors

A1-34 Appendix 1

Organizer Approach / Times Subjects Participants comments and suggestions

• Survey on resettlement: as Comments and Affected people required per RPs suggestions

• Quarterly consultations for Comments and Xu family, local Wanheshan heron nature suggestions on impact conservation reserve and mitigation society, local residents 3. Test Operation Licensed • Questionnaire survey: at least Comments and Local residents environmental once during test operation suggestions on and social sectors, institute, EMU, • Site visits: multiple, depending operational impacts, EPB LIEC on results of project completion public suggestions on environmental audit corrective actions 4. Operation EMU, LIEC • Public opinion survey: once Effects of mitigation Residents per year in the first five years measures, impacts of adjacent to WWTP of operation operation, comments and suggestions for corrective actions

• Site visits: once every 6 WWTP operational WWTP managers months by EEM and GPMO performance, informal and workers, local interviews with local residents adjacent residents to plant

• Public workshop: as needed Public comments and Representatives of based on public opinion survey suggestions on corrective residents and and public complaints received measures social sectors

• Expert workshop or press Expert comments and Experts from conference: as needed based suggestions on corrective residents, social on public consultation and measures sectors, media workshop

• Semi-annual consultations for Comments and Xu family, local Wanheshan heron nature suggestions on impacts conservation reserve and protection measures society, local residents

AP = affected person, EEM = external environmental monitor, EIA = environmental impact assessment, GEPD = GZAR environmental protection department, GPMO = GZAR project management office. LIEC = Loan Implementation Environment Consultant, PIC = project implementing company, POC = project operating company, RP = resettlement plan. Source(s): Domestic EIAs, and consultations with GPMO, city PMOs, GEPD, EPBs and PICs.

A1-35 Appendix 1

E. Responsibilities and Authorities for Implementation

20. As the executive agency, the Government of Guangxi Zhuang Autonomous Region will have the overall accountability for the overall project and its subprojects for ensuring compliance with the PRC’s laws and regulations as well as the provisions of ADB’s Safeguard Policy Statement (SPS 2009). As the implementing agency, each municipal government will be accountable for ensuring the implementation of the environmental management plan and coordinating the environmental audit and monitoring of the subproject(s) in the respective city. The project implementing company (PIC) on behalf of the city governments will be responsible for ensuring the implementation of the specific mitigation measures in cooperation with contractors as contained in the EMP.

21. The GZAR Project Management Office (GPMO) will be responsible for setting up the environmental management system, consisting of inspection, monitoring, reporting, and initiating corrective actions or measures. In the engineering design stage, EA, IAs and PICs will pass the EMP to the design institutes for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detail design, submitted to GPMO and ADB for review, and finally be passed to the construction contractors. To ensure that contractors will comply with the EMP’s provisions, GPMO, city PMOs and PICs will prepare and provide the following specification clauses for incorporation into the bidding procedures: i) a list of environmental management requirements to be budgeted by the bidders in their proposals; ii) environmental clauses for contractual terms and conditions, and iii) full EIAs and CEIA for compliance. The city PMOs will each nominate dedicated, trained, and qualified environment specialists.

22. The GPMO will recruit, through international competitive bidding, a project management consultancy that will include one national and one international environment specialist. The loan implementation environment consultancy (LIEC) will assist the GPMO to supervise the compliance with ADB safeguard policies and PRC environmental protection laws and regulations. The loan implementation environmental safeguard specialists will assist the GPMO to oversee the EMP implementation and fulfill the environmental reporting requirements. A licensed environmental institute (LEI) will be contracted by the IA to serve as the internal environmental monitor (IEM). The IEM will undertake air, water and noise samples and laboratory analysis in respect to the subproject(s) in the respective city to determine the compliance with the applicable emission and ambient standards. The internal monitoring results will be used by GPMO and the LIEC to prepare the semi-annual environmental report.

23. In response to SPS 2009 requirements, the GPMO will further recruit, through international competitive bidding, an external environmental monitor (EEM). The EEM will review all environment reports, including internal and compliance monitoring reports and the semi-annual environment performance report, and prepare a semi-annual environment monitoring verification report. The report should confirm the project’s compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues, and reflect these in a corrective action plan.

24. Upon completion of each subproject and within three months of trial operation, a licensed environmental institute (LEI) will be recruited by the PIC to conduct the project completion environmental audit. The LEI will prepare the project completion environmental audit report and submit to the city EPB for review and approval.

A1-36 Appendix 1

25. Each PIC will set up an environmental management unit (EMU) that will generally require two employees. The EMU will be responsible for: (i) implementing the EMPs and developing further implementation details; (ii) supervising contractors’ implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal regular environmental monitoring; (vi) redressing public grievances; and (vii) reporting performance of the EMP to GPMO, city PMO and responsible agencies.

26. The EPB at the city level, delegated by GEPD, will ensure the compliance with the PRC and local environmental regulations through regular and random environmental compliance monitoring and inspection during construction and operation. The environmental monitoring station (EMS) under the EPB at the city level will conduct the actual environmental compliance monitoring and inspection.

27. Construction contractors will be responsible for implementing mitigation measures during construction. They will designate an onsite environmental engineer (OEE) for each construction site to oversee the implementation of the mitigation measures in accordance with the environmental provisions in the construction contract.

28. Given the environmental sensitivity of the Wanheshan heron nature reserve, a supervision committee will be created as an oversight group with advisory and supervisory authority. The committee will consist of a national heron specialist (chair) contracted by the project management consultancy, one representative of the Fangchenggang PMO, Fangcheng district forestry bureau, the local heron conservation society and the environmental specialists of the project management consultancy (acting as secretariat to the supervision committee). The committee will monitor the environmental impacts and performance of mitigation measures and provide advice on additional corrective actions. The committee will meet at least every three months or more frequently in case of emergencies. Members of the committee will inspect the construction site along the section adjacent to the nature reserve on a monthly basis during the construction period, and bi-weekly during peak construction.

29. Environmental training will be essential for IAs, PICs and contractors to implement the EMP. GPMO will be responsible for organizing training programs, which will cover (i) environmental laws, regulation and policies; (ii) implementing mitigation measures; (iii) environmental technologies and procurement; (iv) operating and maintaining environmental facility; (v) environmental monitoring, supervision; and (vi) documentation and reporting. The training program will be delivered by the loan implementation consultancy.

30. Shown in Table A1.4 are the environmental responsibilities in different phases of the project.

A1-37 Appendix 1

Table A1.4: Environmental Responsibility Matrix Phase Agencies Environmental Responsibilities Preparation Design institute Review and select alternatives (technological, design, siting, etc.)

EIA institute Prepare EIAs and EMPs for subprojects, including information disclosures and public consultations

EPB Review and approve EIAs, including the EMPs; information disclosures

PPTA consultants Advise EIA and DI institutes on EIA preparation and SPS (2009) requirements; review domestic EIAs; prepare CEIA, including public consultations.

GPMO, city PMO Supervise EIA, CEIA and public consultations

IA Review and endorse CEIA, including the EMP, for posting at ADB website

PIC Coordinate EIA, CEIA and public consultations

Design Design institute Update the EMPs in cooperation with EIA institutes, and incorporate mitigation measures in engineering detail designs and contracts

GPMO Recruit loan implementation consultancy, including environmental safeguard specialists

Establish Wanheshan NR supervisory committee

City PMO Appoint grievance redress officer

PIC Recruit internal environmental monitor

Set up EMU

Establish project public complaint centers

EMU Formulate contractual environmental clauses

Tendering and EMU, LIEC, city PMO, Incorporate EMP clauses in RFPs and contracts Contracting GPMO

Construction PIC Ensure implementation of mitigation measures, and public consultations (through EMU)

Coordinate Grievance Redress Mechanism (through PPCC)

Contractor Appoint onsite environmental engineer (OEE)

Implement all mitigation measures, including those on community and occupational health and safety

A1-38 Appendix 1

Phase Agencies Environmental Responsibilities OEE Conduct environmental inspection and prepare inspection report

EMU Conduct environmental inspection and prepare inspection report

GPMO, city PMO, city Advise and supervise implementation of mitigation EPB measures

Licensed Conduct internal monitoring and prepare emission and environmental institute ambient monitoring report contracted by PIC

LIEC Conduct training on environmental management; assist the GPMO to oversee the EMP implementation and fulfill the environmental reporting requirements.

EEM Conduct external monitoring (including public consultations), and prepare semi-annual environmental monitoring verification report to ADB and EA

Centre for disposal of Conduct visual inspection of buildings to be demolished toxic and hazardous to confirm presence/absence of asbestos. waste

Wanheshan NR Conduct regular monitoring and supervision of supervision committee construction works around the NR, conduct public consultation

Monitor heron population changes

EMS on behalf of city Conduct compliance monitoring EPB Conduct ambient monitoring in case of construction related environmental emergency

City Forest Bureau Undertake compensatory reforestation: 12 ha in Beihai city, 47.9 ha in Qinzhou city and 39.9 ha in Fangchenggang city

Test Operation Licensed Conduct project completion environmental audit, environmental institute including sampling and lab tests, and prepare project contracted by PIC completion environmental audit report

City EPB Review and approve project completion environmental audit report, and order corrective actions if necessary

LIEC Participate in project completion environmental audit and prepare project completion environmental audit to ADB and EA

Operation POC Ensure proper operation of subproject facilities according to design standards, and implementation of mitigation measures and public consultations Redress grievances

A1-39 Appendix 1

Phase Agencies Environmental Responsibilities

EMU Conduct and coordinate environmental monitoring and inspections

Licensed Conduct internal environmental monitoring and environmental institute inspection, supervise implementation of EMPs, and contracted by POC conduct public consultations

EEM Conduct external monitoring (including public consultations), and prepare semi-annual monitoring verification report to ADB and EA

EMS on behalf of city Conduct regular and unannounced environmental EPB compliance monitoring and inspection to WWTP; Conduct ambient monitoring of air quality and noise levels in Qinzhou Xincheng district and along road corridors; Monitor air and noise levels along the border of NR facing the Fangcheng-Jiangshan; Monitor ambient environment in case of environmental emergency. Local Conservation Monitor heron population Society (Wanheshan NR)

Traffic Police Bureau Patrol roads for speeding and other violations (e.g., littering and horn blowing near Wanheshan NR)

ADB = Asian Development Bank, CEIA = consolidated environmental impact assessment, EA = executing agency, EEM = external environmental monitor (as part of the implementation consultancy), EIA = environmental impact assessment, EMP = environmental management plan, EMS = environmental monitoring station at the city level, EMU = environmental management unit, GEPD = Guangxi environmental protection department, GPMO = Guangxi project management office, PIC = project implementing company, POC = project operating company, PPTA = project preparatory technical assistance, PRC = People’s Republic of China, RFP = request for proposal. Source(s): Domestic EIAs, consultations with GPMO, city PMOs, GEPD, EPBs and PICs.

F. Institutional Strengthening and Training

31. An assessment undertaken during the project preparatory technical assistance indicates that GPMO has adequate technical and institutional capacities for project implementation. However, the PICs and POCs have weak capacity in environmental management and monitoring. For proper implementation of the EMPs, it is necessary to strengthen the capacity of the PICs and POCs. The proposed training is shown in Table A1.5.

32. It is considered that the four-tier implementation arrangement—PLG, EA, IA, and PIC/POC—provides a reasonable framework for project management and control. The definition of roles, responsibilities and relationships between the PLG, GPMO, city PMO, PIC/POC, and other relevant agencies (e.g., GEPD, EPB) is adequate to ensure the effective implementation of the Project.

33. Environmental specialists in the GPMO, city PMO, PIC/POC, and contractors will receive training in environmental management, environmental monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental

A1-40 Appendix 1

management techniques. Funding of this training will be included in the project budget and in the operation and maintenance budget in the operation phase.

Table A1.5: Institutional Strengthening and Training Activities Target Agencies/ Contents Timing Attendees Strengthening Institutional GPMO, city PMO, • Defining institutional arrangements for During project Strengthening PIC/POC, GEPD, environmental management, monitoring, and preparation EPB supervision • Defining positions and responsibilities • Appointing and recruiting personnel

Licensed • Recruiting and contracting licensed Prior to project environmental environmental institute for internal implementation institute environmental management consultancy and monitoring

LIEC • Recruiting and contracting one national and Prior to project one international LIEC for the overall project implementation for environmental management consultancy, environmental training, and GPMO support EEM • Recruiting and contracting an EEM for the Prior to project overall project for external monitoring implementation

Environmental EMU, Licensed • Developing environmental management During project Management environmental clauses and incorporating them into preparation Clauses and institute construction and operational contracts Protocols • Developing/refining environmental monitoring protocols • Developing environmental emergency response procedures

Training Environmental GPMO, city PMO, • Environmental laws and regulations Prior to project Laws, PIC, POC, EMU, • Environmental policies and plans implementation Regulations OEE, contractor • Best environmental management practices and Policies • Environmental emergency response

EMP GPMO, city PMO, • Responsibility and duties for project Prior to and during Implementation Licensed construction, management and environmental project environmental protection implementation institute, PIC/POC, • Tasks of environmental protection in the EMU, OEE, project construction contractor • Key environmental protection contents in project construction • EMP improvement and corrective actions

Grievance GPMO, city PMO, • Effective communication with the general Prior to and during Redress PPCC, EMU, public and NGOs project Mechanism OEE, contractor • Grievance redress mechanism implementation • Case studies and best practices in receiving and responding public complaints

A1-41 Appendix 1

Activities Target Agencies/ Contents Timing Attendees Environmental Construction • Construction environmental management Prior to and during and workers, practices project Occupational PIC/POC, EPBs • Occupational health and safety, including implementation Health and asbestos, HIV/AIDs safety Training • Protection of Wanheshan NR • Protection of Chashan reservoir

Advanced PMO, PIC/POC • Study the basics of theory and practice, Prior to or at the Training on • Training on the international experiences and beginning of Wastewater best practices project Treatment • Operation, control and maintenance implementation management

Environmental PIC/POC, • Water savings At the beginning protection and contractors • 3R’s (reduce, reuse, recycle) of project Hygiene • Wastewater minimization implementation Awareness • Occupational health and safety Program • Protection of water reservoir and Wanheshan Nature Reserve

Environmental Community • Awareness about nature conservation Prior to and during Conservation members in • Laws and regulations on nature reserves project Wanheshan heron • Household pollution control implementation NR • Reduced use of agrochemicals

WWTP Facility POC • Operation and maintenance of environmental Prior to or at the Operation and facilities beginning of Maintenance • Safety operation regulations project • Equipment management and emergency implementation response procedures

Climate GPMO, PIC, POC, • Basic knowledge about climate change and During project Proofing Urban Urban Planning adaptation implementation Infrastructure and Construction • International best practices on climate Bureau, EPB proofing

Human- GPMO, PIC, POC, • Basic knowledge about human-centered During project Centered Urban Planning universal design implementation Universal and Construction • International best practices on human- Design of Bureau, EPB centered universal design Urban Infrastructure and Public Facilities

Environmental EMU, Licensed • Monitoring and inspection methods, data Prior to and during Monitoring, environmental collection and processing, interpretation of project Inspection and institute, OEE data, reporting system implementation Reporting • Environmental reporting requirements • Project performance management system (PPMS)

A1-42 Appendix 1

EEM = independent environmental monitor (as part of the implementation consultancy), EMP = environmental management plan, EMU = environmental management unit, EPB = Environmental Protection Bureau at the city level, GEPD = Guangxi Environmental Protection Department, GPMO = Guangxi Project Management Office, PIC = project implementing company, POC = project operating company. Source(s): Domestic EIAs, and consultations with GPMO, city PMOs, GEPD, EPBs and PICs.

G. Reporting and Supervision

34. Internal Monitoring Report. During the construction period, results from the internal monitoring by the licensed environmental institute contracted by PIC/POC and inspections by OEE and EMU will be reflected in the monthly construction reports. The reports will summarize: (i) environmental issues during construction, including public grievances and responses; (ii) mitigation measures taken, if any; and (iii) consequences of the impacts on the environment and/or surrounding communities, including public grievances and responses.

35. The contractors will be trained to take immediate actions to remedy unexpected adverse impacts or ineffective or inefficient mitigation measures, as required by the EMP. The PIC will also respond to these reports in order to ensure that contractors have taken appropriate and timely action. Additional measures may be taken, if needed, to ensure that all issues raised by the reports are appropriately addressed.

36. Results from the detailed internal environmental monitoring program and mitigation actions for the construction phase will be submitted monthly to the PIC/POC, quarterly to GPMO and city PMO, and bi-annually to GEPD and EPB. GEPD and EPB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

37. Compliance Monitoring Report: One agency authorized by GEPD and EPB will be responsible for environmental compliance monitoring and inspection according to the PRC environmental regulations during construction and operation. The compliance monitoring reports will include: (i) project background, (ii) construction and operation activities, (iii) environmental conditions, (iv) measurement or sampling taken during auditing and their locations, (v) analytical results, (vi) interpretation and implication of the monitoring results, (vii) determination of the compliance status with regard to applicable regulations and standards, and (viii) recommendations for improvement. These reports will be submitted to GEPD and EPB by EMS with a copy to GPMO and city PMO.

38. Project Completion Environmental Audit Report: Project completion environmental audit report of the completion of each subproject will be prepared in accordance with the MEP Ministerial Guideline on Project Completion Environmental Audit (2001) within 3 months after completion. The report will focus on the project compliance of environmental performance when it is put into the operation. The report will be sent to environmental authorities for review and approval. If non-compliance is found, the project will be asked to be improved to the requirements before the official commencement of the operation.

39. Environmental Progress Report: The EA/GPMO has the responsibility to monitor and assess overall project activities under the project design and monitoring framework, and will be accountable to ADB for ensuring the effective implementation of the EMPs. The GPMO will be assisted by the LIEC, as part of the loan implementation consultancy recruited through international competitive bidding, to fulfill its environmental supervision, monitoring and reporting to the ADB. The environmental monitoring reports will be submitted to the ADB and EA/GPMO

A1-43 Appendix 1

on a semi-annual basis. The reports will emphasize: (i) progress made in implementing the EMPs; (ii) implementation of mitigation measures; (iii) environmental compliance; (iv) institutional strengthening and training; (v) public consultations and results; (vi) public grievances and responses; and (vii) problems occurred and corrective actions taken. ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

40. External environmental monitoring verification report. In response to SPS 2009 requirements, the GPMO will recruit, through international competitive bidding, an external environmental monitor (EEM). The EEM will review all environment reports, including internal and compliance monitoring reports and the semi-annual environment progress report, and prepare a semi-annual environment monitoring verification report. The report should confirm the project’s compliance with the EMP and PRC legislated standards, identify any environment- related implementation issues, and reflect these in a corrective action plan.

41. Wanheshan Heron NR Monitoring Report: Quarterly reports will be prepared in English and Chinese languages by the Wanheshan nature reserve supervision committee and submitted to the GPMO and ADB. The quarterly report will cover the implementation status of the EMP, actual impacts vs. the forecasted impacts on the nature reserve and the heron population, and recommendations for corrective actions and additional measures if necessary.

42. Chashan Reservoir Water Quality Monitoring Report: For the Chashan reservoir, a baseline water quality monitoring report prior to construction and a quarterly water quality during construction and an annual water quality monitoring report will be prepared during operation. If water quality violations are discovered, studies and investigations will be commissioned to identify the causes and recommend mitigation measures.

43. The environmental reporting plan is presented in Table A1.6.

Table A1.6: Environmental Reporting Plan Reports From To Frequency Pre-Construction Chashan Baseline water quality Licensed EMU, EEM, Once prior to Reservoir monitoring environmental GPMO construction institute contracted by Fangcheng- Jiangshan road PIC

Construction Phase Internal Internal construction OEE PIC, contractor Monthly Monitoring report

Internal monitoring report Licensed PIC, GPMO, city Quarterly environmental PMO, GEPD, institute EPB

Compliance Compliance monitoring EMS GEPD, city As per the PRC Monitoring report PMO, EPB regulation

A1-44 Appendix 1

Progress Semi-annual GPMO, LIEC ADB Semi-annual Reporting environment progress report External External monitoring EEM ADB, GPMO, Semi-annual Monitoring verification report GEPD, EPB, city PMO, PIC

Wanheshan Special monitoring Supervisory ADB, GPMO, Quarterly Heron NR committee EPB, Forest Monitoring Bureau, PIC

Chashan Water quality monitoring Licensed EMU, GPMO, Quarterly Reservoir environmental Chashan Mgt institute Committee, contracted by WRB PIC

Reforestation Compensatory LIEC GPMO, City Once at the end of report reforestation PMO, ADB, City project implementation Forest Bureau

Test Operation Project Project completion EMS GEPD, EPB, Once within 3 months of Completion environmental audit GPMO, city project completion Environmental report PMO Audit

Operation Phase Internal Internal monitoring report Licensed GPMO, city Quarterly for the first 2 Monitoring environmental PMO, POC, years of operation institute EEM

Compliance Compliance monitoring EMS GEPD, EPB As per the PRC Monitoring report regulation

Progress Semi-annual GPMO, LIEC ADB Semi-annual for the first Reporting environment progress 2 years of operation report External External monitoring EEM ADB, GPMO, Semi-annual for the first Monitoring verification report city PMO, POC 2 years of operation

Wanheshan Internal monitoring Local ADB, GPMO, Annual for 20 years Heron NR conservation city PMO, POC, society EEM

Chashan Water quality monitoring Licensed EMU, GPMO, Annual for 20 years Reservoir environmental Chashan Mgt institute Committee, contracted by WRB POC

ADB = Asian Development Bank, EEM = external environmental monitor (as part of the implementation consultancy), EPB = environmental protection bureau at the city level, EMS = environmental monitoring station at the city level, EMU = environmental management unit, GEPD = Guangxi environmental protection department, GPMO = Guangxi project management office, PIC = project implementing company, POC = project operating company, WRB = water resource bureau. Source(s): Domestic EIAs, and consultations with GPMO, GEPD, EPBs and PICs.

A1-45 Appendix 1

H. Cost Estimates for Environmental Management

44. Before construction, the GPMO and PICs will develop detailed responsibilities and requirements for contractors and will provide detailed cost estimates of mitigation measures and environmental monitoring in the construction contracts. The GPMO and PICs also will detail the responsibilities of their environmental management offices and prepare their work schedules.

45. Before operation, the PIC/POC will develop detailed work plans for environmental management and monitoring during operation based on the EMP. These work plans will be submitted to EPB and GEPD to help them to supervise implementation.

46. The PICs with help from the GPMO will develop detailed plans for procurement of equipment and materials, and civil works for implementing mitigation measures and monitoring plans. These plans will be incorporated into project contracts. Environmental considerations will be incorporated into the procurement to ensure environmentally responsive procurement.

Table A1.7: Cost Estimates for EMP Beihai Qinzhou Fangcheng- Beihai Yingpan Xincheng Jiangshan Maoling

Zhulin Rd Rd Rd Network Road WWTP Total (CNY 000) (CNY 000) (CNY 000) (CNY 000) (CNY 000) (CNY 000) Air pollution control 750.00 650.00 400.00 300.00 1,614.80 3,714.80 Water pollution control 450.00 400.00 550.00 300.00 1,105.00 2,805.00 Solid waste disposal 380.00 300.00 593.60 200.00 2,983.00 4,456.60 Noise pollution control 500.00 800.00 448.50 780.00 230.00 2,758.50 Soil erosion control and 8,463.00 13,628.80 41,517.50 39,974.40 1,364.80 104,948.50 landscaping Emergency preparedness and 200.00 200.00 200.00 200.00 8,613.00 9,413.00 response Labor safety and health 564.00 1,667.50 3,403.20 3,592.80 345.20 9,572.70 Public consultations 150.00 200.00 100.00 300.00 100.00 850.00 Environmental training 100.00 100.00 100.00 200.00 140.00 640.00 Project completion 210.00 260.00 210.00 150.00 500.00 1,330.00 environmental audit Environmental impact 460.00 460.00 420.00 225.00 200.00 1,765.00 assessment Environmental monitoring 350.00 350.00 450.00 600.00 200.00 1,950.00 Environmental supervision 200.00 200.00 200.00 200.00 100.00 900.00 during implementation Mitigation and enhancement 2,944.20 2,944.20 for Wanheshan NR Mitigation and enhancement 340.00 340.00 for Chashan reservoir

Total 12,777.00 19,216.30 48,592.80 50,306.40 17,495.80 148,388.30 Note: Not included are: i) the inputs of international and national environmental safeguard specialists (i.e., external monitor) as part of the loan implementation consultancy, estimated at CNY 1.21 million; ii) inputs of international and national climate proofing experts as part of the loan implementation consultancy, estimated at CNY 0.67 million; and iii) inputs of international and national universal design experts as part of the loan implementation consultancy, estimated at CNY 0.84 million. Source(s): Domestic feasibility study reports, domestic EIAs, and consultations with GPMO, GEPD, EPBs and PICs.

47. Cost estimates for mitigation measures, environmental monitoring, public consultations, and capacity building are summarized in Table A1.7. The compliance monitoring costs will be

A1-46 Appendix 1

borne by the PIC/POC as part of their enforcement functions. Internal monitoring costs will be borne by the contractors and PIC/POC. Independent monitoring costs will be from the loan implementation consultancy budget. Before implementing a monitoring plan, responsible agencies will present a more detailed breakdown of the estimated budget. During project implementation, the budgets will be adjusted based on actual requirements. Contractors will bear the costs for all mitigation measures during construction, which will be included in the tender and contract documents. The PIC will bear the costs related to mitigation measures during operation. Costs related to environmental supervision during construction and operation will be borne by the PIC/POC. Costs for capacity building will be borne by the project as a whole. During the operation phase, the training costs will be included in the operation and maintenance budget.

I. Mechanism for Feedback and Adjustment

48. Based on the inspection and monitoring reports, environmental authorities will decide whether: (i) further mitigation measures are required as corrective action, or (ii) improvement is required to environmental management practices. If it is found during inspection that there has been substantial deviation from the EMPs or any changes made to the project or any subprojects which may cause substantial adverse environmental impacts or increase the number of affected people, then GPMO should consult with environmental authorities and ADB immediately and form an environmental assessment team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA reports including EMPs will be submitted to the environmental authorities for approval, and finally report to ADB. The revised EMPs will be passed to the contractor(s) and PIC/POC for implementation. The mechanism for feedback and adjustment is presented in Figure A1.1.

A1-47 Appendix 1

Figure A1.1: Mechanism for Feedback and Adjustment

A1-48 Appendix 2

Wanheshan Heron Nature Reserve

A. Introduction

1. The proposed Fangcheng-Jiangshan road passes by the Wanheshan heron nature reserve (NR) from the right side at K3+900~K4+900. The new road is in fact a widening of the existing road from 8 m to 26 m. The expansion will take place toward the opposite direction of the NR. The shortest distance from the redline to the boundary of the NR is 86 m. Because of the environmental sensitivity, a series of due diligence studies have been carried out to understand the potential impacts of the proposed project on the NR, with a focus on the legal boundary, ecological boundary, project alternatives, public concerns, impacts and mitigation measures.

B. History of the Nature Reserve

2. The “Guangxi Fangcheng Wanheshan Herons Nature Reserve” was officially established by the Government of the Multiple-Ethnic Autonomous County, Fangcheng District, Fangchenggang Municipality on 12 April 1993 in accordance with Document No. [1993] 24. The official document defines the NR to include the area within a radius of 500 m from the center of the Wanheshan Mt., with a total area of 79 ha.

3. The Wanheshan Mt. was originally an unnamed mountain. As more and more herons found their home in the mountain, local people gave it the present name1. The Wanheshan Mt. was the private land of a Xu family. In March 1953, the Xu family sighted a few dozen herons in the mountain. Mr. Xu Huai’an, the first-generation herons guardian as he was respectfully referred to, set forth the family rule of “three no’s” –– no shooting, no catching and no collecting eggs. With the protection effort of the Xu family in five generations and the local residents, the number of herons grew to more than 30,000 in more than 10 species today.

C. Overview of Herons

4. Herons (Ardeidae) are medium- to large-sized water-wading birds that can be found world-wide. In the PRC, they are distributed in seven ecological regions that cover all provinces in the country2. There are 63 species of herons in the world, of which 20 species can be found in the PRC. The coastal zones of the Beibu Gulf are situated in the flyway of migratory birds between SE Asia and NE Asia. They are an important stopover and fuelling station for the migratory birds, and one of the breeding grounds in southern PRC for many species of herons.

5. The project area is situated in one of the global migratory routes, namely the East Asia- Australasia Flyway (Figure A2.1). Herons in Fangchenggang are found mainly in three sites: i) Liyujiang village (i.e., Wanheshan), Jiangping town, Fangcheng district; ii) Hongsha village, Guangpo town, Gangkou district; and iii) Wutou village, Dongxing city. The number totals approximately 100,000. The herons stay in Wanheshan for about six months from April to November. In November, the herons leave the Wanheshan Mt. to winter for Southeast Asia, and fly back in March-April.

1 “Wan” in Chinese means “ten thousand”, denoting many; “he” means “cranes” which local people mistook the herons to be when they first saw them; and “shan” means “mountain”. 2 Zhu Xi and Zou Xiaoping. 2001. Herons of China. China Forestry Publishing House, Beijing, China.

A2-1 Appendix 2

Project Area

Central Asia Americas Flyway Africa-Eurasia East Asia- Flyway Flyway Australasia Flyway

6. Through many years of protection by local residents (especially the Xu family), a stable herons community has been established. There are ten heron species, of which seven nest in the NR. The habitats include the Wanheshan Mt. itself as a nesting and breeding ground, and the fish ponds and paddies adjacent to the mountain and the nearby coastal wetlands as the feeding ground.

7. The Wanheshan Mt. and its surroundings have 131 species of higher plants, belonging to 100 genera and 57 families. According to recent studies3, there are ten species of herons in Wanheshan Mt., including Bubulcus ibis, Heronta garzetta, Nyclicorax nyxlicicax, Heronta alba, Ardeola bachus, Heronta intermedia, Argea purpurea, Heronta euphotes, Ardea cinerea and Lxobrychus cinnamomeau, of which the Ardeloa idae is under state level protection, and Adrea cinercea and Ardeloa bachus are under provincial protection.

8. Herons belong to the Ciconiformes order and the Ardeidae family. They are widely distributed in the world, mostly found in rivers, lakes, swaps and coastal wetlands. Most of them are migratory in nature and communal during the breeding period. Herons are widely distributed across the PRC and especially common as resident birds in the south and migratory birds in the north. They build their nests in trees and feed on juvenile fish, shrimps, aquatic insects and other aquatic organisms. Each year, the herons fly from the south to the Wanheshan Mt. in March/April, build their nests in April/May and breed in May when the number peaks to more

3 1) Jiang Yuli. 2007. Studies on the Relationship between Ardeide and Coastal Plant Species. Thesis for the partial fulfilment of master of science in ecology, Guangxi University. 2) Ye Fen, Huang Chengming and Li Hanhua. 2006. Study on Spatial Niche of Seven Species of Colonial Breeding Herons and Herons in Fangcheng, Guangxi Autonomous Region. Sichuan Journal of Zoology, Vol. 25, No. 3. 3) Xiong Ying, Deng Fuying, Tang Qinglan, Huang Fuping, Li Xiangdong and Zhou Chuanming. 2005. Studies on Ecological Distribution of the Dominant Soil Microorganism Populations in Wanheshan Reserve of Herons. Journal of Guangxi Agricultural and Biological Science, Vol. 24, No. 1 (March 2005). 4) Ye Fen, Huang Chengming and Li Hanhua. 2003. Breeding Population of Chinese Heron in Fangcheng of Guangxi Province. Chinese Journal of Zoology, Vol. 38, No. 5. 5) Huang Fuping, Li Xiangdong, Zhou Fang and Deng Fuying. 2002a. Plants of Herons-Nested Forests in Wanheshan Mountain, Fangchenggang, Guangxi. Journal of Guangxi Academy of Sciences, Vol. 18, No. 3 (August 2002). 6) Huang Fuping, Li Xiangdong, Zhou Fang and Deng Fuying. 2002b. Preliminary Studies on the Animal and Plant Resources in Herons Forests of Wanheshan Mt., Fangchenggang City, Guangxi. Guangxi Forestry Science, Vol. 31, No.1 (March 2002).

A2-2 Appendix 2 than 30,000 including more than 10,000 of adult birds and more than 20,000 young birds. The number of herons wintering in Wanheshan Mt. averages between 30 and 60, with the maximum of 100. As communal birds, herons stay in groups for nest-building and juvenile-raring, and make loud noises during the day and at night. They fly out between 04:30 and 05:40 to their feeding grounds and back between 16:00 and 19:00 in groups with noisy warbles.

9. Extensive research has been undertaken by the domestic EIA institutes and PPTA consultants for the purpose of this assessment, with a view to understand the ecological boundary of the NR. The methodologies included literature review, key informants (experts, local conservation society representatives and local residents) interviews and supplementary field surveys. The findings are as follows: i) the nesting and breeding are restricted to the forests in the Wanheshan Mt.; and ii) the feeding grounds can extend 15 km from the centre of the NR to all directions but primarily to the east, southeast, south, northeast and north of the NR.

10. Herons feed on aquatic organisms, including juvenile fish, shrimps, aquatic insects and sometimes aquatic plants. There are three major types of feeding grounds within the 15 km radius that contain the food sources for the herons: i) the mangroves and mudflats in the coastal wetlands in the Xiwan Bay (West Bay) to the east, southeast and south of the Wanheshan Mt.; ii) rivers, lakes, ponds, reservoirs, meadowland and farmland between the Wanheshan Mt. and the coastal wetlands; and iii) rivers, lakes, ponds, reservoirs, meadowland and farmland to the northeast and north of the Wanheshan Mt.

11. Nest-building begins in end of April to early May, and usually takes about a week. The nests are built on the branches of a tree and adjacent trees. As many as 20 nests can be found in one tree. The average nest has a diameter of 34 cm (30 ~ 38 cm) for the outer ring, height of 12 cm (10 ~ 13 cm) and depth of 7.6 cm (7 ~ 8 cm). About 90% of the nests are found between 2 m and 8 m, mostly between 2 m and 6 m. Breeding takes place in mid-May. One egg is laid in 1 ~ 2 days on average. There are 4 to 6 eggs for each hatch. Hatching takes 19 ~ 24 days, with a survival rate of 84.25%. Juvenile birds start to leave the nest 15 days after being hatched, learn to fly in another four weeks.

D. Environmental Pressures

12. The NR suffers from human disturbances, pollution of the surrounding environmental and natural disasters4. In particular, excessive use of agrochemicals have led to the destruction and pollution of the feeding grounds, especially the coastal mangroves and mudflats, aquacultural ponds and paddies as the primary food sources for the herons. Typhoons often destroy the nests and cause the death of juvenile birds.

13. The government and local communities have taken great effort to protect the NR. The Fangcheng district government has earmarked funds for protecting the herons and their habitats. A local conservation society has been established to take community-based action and it is headed by Mr. Xu Xinbang from the Xu family. Students and teachers of the Fangcheng experimental secondary school and several primary schools in Fangcheng district have annual tree-planting program every spring. In spite of these environmental pressures, the collective

4 Jiang Yuli. 2007. Studies on the Relationship between Ardeide and Coastal Plant Species. Thesis for the partial fulfilment of master of science in ecology, Guangxi University.

A2-3 Appendix 2 efforts have proven to be successful as the heron population have stabilized for the past few years5 (Figure A2.2).

Figure A2.2: Heron Population Changes between 1950s and 2010

E. International Agreements on Migratory Bird Protection

14. Of the world’s 1.75 million or more described animal species, at least 8,000-10,000 migrate. They use different habitats for different phases of their life cycles, living in one environment for part of the year and reproducing in another, or concentrating in one area and dispersing over another. These animals have evolved to make use of different environments and resources that are available only on a temporary basis. They range from antelopes to fish, from whales to elephants, from bats to birds.

15. Migratory species are vulnerable to a wide range of threats, including habitat shrinkage in breeding areas, excessive hunting along migration routes, and degradation of their feeding grounds. As a result of international concern over these threats, there are more than 30 different international, flyway-based instruments for the conservation of migratory birds. These range from multilateral intergovernmental treaties covering more than 110 countries, through instruments addressing the conservation of single species (or small groups of species), to voluntary, multi-sector partnerships and networks of designated sites.

16. The most comprehensive international framework for the protection of migratory species is the Convention on the Conservation of Migratory Species of Wild Animals (or commonly known as CMS). As an environmental treaty under the aegis of the United Nations Environmental Programme, CMS was adopted in 1979 and entered into force on 1 November 1983. CMS, also known as the Bonn Convention, recognizes that states must be the protectors of migratory species that live within or pass through their national jurisdictions, and aims to conserve terrestrial, marine and avian migratory species throughout their ranges.

5 Consultations with local heron experts, including Professor Zhou Fang of Guangxi University, during project preparation.

A2-4 Appendix 2

UNEP/CMS is widely recognised as the principal global Multilateral Environmental Agreement (MEA) for intergovernmental cooperation on the conservation of migratory species and provides a range of options for such cooperation, from legally binding Agreements to simpler, non- binding Memorandums of Understanding. Other global MEAs relevant for the conservation of migratory birds and their habitats include the Convention on Biological Diversity (CBD) and the ‘Ramsar’ Convention on Wetlands. CBD provides a high-level political umbrella and a Joint Work Programme between CBD and CMS was established by CBD Decision VI/20 (COP6, 2002). The Ramsar Convention text contains specific provisions for intergovernmental cooperation on wetland-dependent species and their habitats. Like CMS, Ramsar has established a Joint Work Programme with the CBD.

17. The Appendix I of the CMS contains a list of endangered migratory species of mammals, birds, reptiles and fish. There are about 80 bird species, including two species in the Ardeidae family: Ardeloa idae (Madagascar pond heron) and Egretta eulophotes (Chinese egret or Swinhoe’s egret or 黃嘴白鷺 in Chinese). According to 2001 reports, there were 2,600~3,400 Chinese egrets in the world, including 100 in Russia, 900~1,300 in North Korea, 600~1,000 in South Korea and 1,000 in the PRC. A 2003 study found 22 Chinese egrets (8 adult and 14 young in 4 nests) in the Wanheshan NR.

18. The Appendix II of the CMS contains migratory species that have an unfavorable conservation status or would benefit significantly from international co-operation organized by tailored agreements. In the Ardeidae family, eight species are on the list: Botaurus stellaris stellaris (Western Palearctic populations), Lxobrychus minutus minutus (Western Palearctic populations), Lxobrychus sturmii, Ardeola rufiventris, Ardeloa idae, Egretta vinaceigula, Casmerodius albus albus (Western Palearctic populations) and Ardea purpurea purpurea (populations breeding in the Western Palearctic). None of the heron species in the Wanheshan NR are on this list.

F. Summary of PRC Regulations on Migratory Birds Protection

19. Biodiversity protection, including the protection of migratory birds, is a shared responsibility in the PRC. The Ministry of Environmental Protection (MEP) is authority for making regulatory formulation, supervision and quality control. The implementation is divided among the ministries. This is particularly reflected in the management of nature reserves as wildlife habitats. Of the NRs in the PRC, some are managed by the forest authorities, others by the environmental agencies and still others by the Ministry of Agriculture and State Oceans Administration.

20. The PRC Government has attached great attention to biodiversity protection. As of 2009, there are about 2,350 NRs across the country, with a total area of 1.5 million km2 or 15% of the national territory. These NRs have put under protection 80% of the country’s natural terrestrial ecosystems, 40% of the natural wetlands, 20% of the natural forests, 85% of the wild flora and fauna and 65% of the higher plants.

21. China has participated and signed more than 30 international conventions and bilateral agreements on environment and resource protection. Those relevant to the protection of migratory birds include:

Convention on International Trade in the Endangered Species of Wild Fauna and Flora (ratified in 1981). Convention on Wetlands of International Importance (signed in 1981).

A2-5 Appendix 2

Convention on Biological Diversity (signed in 1992). Agreement between the Government of People’s Republic of China and the Government of Japan Concerning the Protection of Migratory Birds and Their Habitats (signed 1981). Agreement between the Government of the People's Republic of China and the Government of Australia for the Protection of Migratory Birds and their Environment (signed 1988).

22. In 1994, China launched the China Biodiversity Conservation Plan as a follow-up action to the ratification of the CBD. The National Biodiversity Strategy and Action Plan to be launched in 2010 will set the biodiversity conservation strategic direction, objectives and tasks, serving as a key tool to coordinate biodiversity and economic development in the next twenty years. Conservation of biodiversity in key regions of China, strengthening the management effectiveness of China’s protected area system, incorporating of biodiversity into regional and sectoral development planning are top on the actions of the document. Specific targets include: i) protect 90 percent of China’s protected species and key ecosystems through nature reserves; ii) conduct complete biodiversity surveys by 2015 for 8-10 of the priority conservation areas identified by the new plan; and iii) halt the loss of biodiversity in China by 2020.

23. The PRC policy for biodiversity conservation lays equal stress on both the development and utilization and the conservation and protection of natural resources and “one who develops, conserves; one who utilizes, compensates; one who destroys, restores.”

24. The PRC Law on Protection of Wild Fauna (1989) contains provisions dealing with the protection of wildlife and endangered species. Article 9 of the LPWF gives special protection to rare and endangered species by classifying them into class I and class II state protection. Provinces can also designate additional species as being under special provincial protection. Article 16 prohibits the catching, hunting, killing and trade of wildlife under protection. Other relevant regulations include the Regulation on Protection of Terrestrial Fauna (1992), Regulation on Nature Reserves (1994), State Council Circular on Strengthening Wetland Management (2004), and Guideline on Nature Reserve Inspection (2006).

25. The regulatory provisions to the Wanheshan nature reserve and the herons are summarized as follows: i) Article 12 of the Law on the Protection of Terrestrial Wild Fauna (1989): “If a construction project produces adverse effect on the environment for the survival of wild fauna under special state or local protection, the construction unit shall submit an environmental impact assessment. The environmental protection administration authority shall, in examining and approving the report, seek the opinion of the wild fauna administration authority at the same level”. For the proposed Fangcheng-Jiangshan road, an EIA has been prepared by the IA. The EIA has been reviewed by an expert panel and approved by the Fangchenggang environmental protection bureau in consultation of the Fangchenggang forest bureau (as the wild fauna administration authority). Comments and suggestions of the expert panel and the EPA approval document are included in the ensuing sections. ii) Article 8 of the Regulation on Protection of Terrestrial Wild Fauna (1992): “It is forbidden for any unit or individual to damage the living, resting and breeding grounds and the habitats of wild fauna under state or local protection.” The EIA of the proposed Fangcheng-Jiangshan road has concluded that the road is not anticipated to cause significant damage to the three species under the state and provincial protection.

A2-6 Appendix 2 iii) Article 18 of the Regulation on Nature Reserve (1994): “A nature reserve may be divided into core zone, buffer zone and experimental zone”. Article 30: “If a nature reserve is not zoned, the entire reserve shall be regarded as core zone and buffer zone”. Article 32: Within the core zone and buffer zone, no construction of production facilities shall be allowed”. The Wanheshan NR is not zoned, and therefore it shall be regarded as a core and buffer zone. Construction of production facilities shall not be allowed. The proposed Fangcheng-Jiangshan road has a closest distance of 86 m from the boundary of the NR, and thus it does not violate the provisions. iv) Article 33 of the Regulation on Nature Reserve (1994): “Any project to be constructed outside a NR shall not damage the environmental quality within the NR”. The domestic EIA and the CEIA conducted comprehensive analysis of the potential impact of the proposed road on the NR, and it has been concluded that with the adoption of noise- reducing road surface and the closure of two openings by densely planted trees, the proposed road upgrading will not damage the environmental quality within the NR. In order to reduce the risk of the proposed road upgrading to the nature reserve and for the purpose of removing the most critical threats to the herons, a series of enhancement measures will be implemented. The enhancement package entails the strengthening of: (i) reforestation in the Wanheshan mountain as the nesting and breeding ground; (ii) patrols to reduce poaching; (iii) heron rescue and quarantine to reduce death rate from diseases such as bird flu; (iv) community awareness and education effort by training community members on protection of the herons and their habitat; and (v) local policies, training of local conservation officials and scientific studies and investigations for better understanding and hence enhanced protection of the herons and their habitat.

G. Legal Status and Legal Boundary of the NR

26. The Wanheshan heron NR was established in 1993 by the government of the then Fangcheng Ge county (now part of Fangcheng district) with an official notice (Fang Zheng Fa no. [1993] 24) dated 14 April 1993. The summary translation of the official notice is attached below.

The Wanheshan Mt. in Liyujiang Xujiacun village a habitat for various herons under state protection. In order to protect these birds, an official notice is thereby issued as follows:

1) The county-level nature reserve is defined to be the area within 500 radius from the center of the Wanheshan mountain. Cutting of trees in the NR is strictly forbidden. Activities that disturb the birds such as burning and firecrackers are strictly forbidden. 2) Shooting and catching of birds in the NR is strictly forbidden. 3) Construction of any structure within the NR without permission is strictly forbidden. Any construction to be undertaken in the NR shall require the prior approval of the county people’s government and undergo related review and approval procedures. 4) Any unit or individual who contribute to the protection of the natural resources and herons in Wanheshan Mt. shall be rewarded. Any unit or individual who violates the above provisions shall be punished according to relevant laws.

Fangcheng Ge County People’s Government (Official Seal) 14 April 1993.

27. At the request of the ADB mission, the Fangcheng district government issued an official letter to confirm the legal boundary of the Wanheshan heron NR. A translation of the letter is provided below:

A2-7 Appendix 2

Fangchenggang City Dongwan Transport Co. Ltd.:

This is to confirm the receipt of your request (Fang Dongwan Co. document no. [2010] 145) to confirm the geographical coordinates of the center of the Wanheshan heron nature reserve and the shortest direct distance between the redline of the proposed Fangcheng-Jiangshan road and the boundary of the NR. After verification by a certified institution, this is to inform you as follows:

1) The geographical coordinates of the center of the Wanheshan heron nature reserve by WGS84 coordinate system are (N: 21.71405, E: 108.316012). 2) The shortest direct distance between the redline of the Fangcheng-Jiangshan road and the boundary of the nature reserve is 86.4 meters.

Fangcheng District People’s Government (Official Seal) 27 August 2010.

28. The officially confirmed legal boundary of the NR and its relation to the proposed road alignment is provided in Figure A2.3.

Figure A2.3: Location of Wanheshan Heron Nature Reserve to Fangcheng-Jiangshan

A2-8 Appendix 2

H. NR management and institutional organization

29. The administrative responsibility for the NR rests with the Fangcheng district forest bureau. Within the Fangcheng district forest bureau, there is a wildlife protection section that is staffed with two officers. The wildlife protection section is responsible for wildlife protection and management of the Wanheshan heron nature reserve. The Fangcheng district EPB is the supervisory authority for the Wanheshan NR. The specific responsibilities include inspection and evaluation of the management of the NR.

30. There is a local heron conservation society. The society is led by the head of the Xu family and its members come from the local communities. The society conducts such activities as patrol of the NR, reforestation, monitoring of the heron population, rescue and quarantine, and community education.

I. Approval of the Domestic EIA

31. The EIA of the proposed Fangcheng-Jiangshan road was reviewed by an expert panel consisting of five experts including a senior engineer of the Nanning Academy of Environmental Sciences, a professor of Guangxi University, a senior engineer of the Guangxi Environmental Science Society, a senior engineer of the Guangxi Academy of Environmental Sciences and a senior engineer of Fangchenggang City Environmental Monitoring Center. The panel review was held on 16 July 2010 and chaired by a senior official of the Fangchenggang Municipal Environmental Protection Bureau.

32. On the basis of the review by the expert panel, the Environmental Protection Department of the Guangxi Zhuang Autonomous Region Government issued the official approval (Gui Huan Guan no. [2010] 97) dated 1 September 2010. A summary of the official approval with respect to the Wanheshan nature reserve is presented as follows.

Fangchenggang City Dongwan Transport Co. Ltd.:

We have received the “EIA of the Fangcheng-Jiangshan Road” your company has submitted for approval. We have conducted a review and our reply is as follow:

The EIA complies with the specifications, its contents are comprehensive, important issues are highlighted, descriptions of the project and the environment are clear, the assessment boundary and class are generally appropriate, the impact predictions are reliable, and the mitigation measures are feasible. This EIA can serve as the basis for environmental protection design and environmental management. The recommended alignment (K route) runs 86 m from the boundary of the county-level Fangcheng Wanheshan heron nature reserve and 75 m from the Chashan reservoir as the water supply source for Jiangshan town. The project is consistent with the Fangchenggang City Urban Master Plan (2008-2025). With the implementation of the environmental protection measures recommended in the EIA, the adverse impacts of the project can be minimized to an acceptable level in terms of the local environment. Thereby we agree to the project as it is proposed in the EIA with respect to the nature, alignment, location and environmental protection measures, and propose the following requirements:

A2-9 Appendix 2

Along the sections of the Wanheshan county-level nature reserve and the Chashan reservoir, no borrow, spoil, material storage and mixing, construction camp or construction and operation management station shall be permitted. Warning signs shall be installed. Along the Wanheshan nature reserve section of the road, construction shall avoid heron breeding season (May to June) and peak migration period. No night construction shall be undertaken during the breeding and peak migration periods. Asphalt surface shall be adopted for the 3,000-m section of the road passing by the nature reserve. No horn blowing signs shall be installed. The landscaping of the nature reserve section shall be well designed. The existing trees shall be retained and trees shall be planted more densely. The investment for the noise and light green belt shall be earmarked. The noise and light impact on the nature reserve from construction and operation shall be minimized. Construction sites and the road section under construction shall be sprayed with water during sunny days to reduce dust. Transportation vehicles shall be installed with leak and dust prevention measures. Cement mixing sites shall be at least 300 m downwind human settlements, schools and other sensitive receptors. Water pollution protection measures shall be adopted. Construction wastewater and sewage from construction camps shall not be allowed to be discharged into the Chashan reservoir. Attention shall be paid to protection of the water transmission pipeline. Slurry from bridge construction shall be properly disposed; Waste oil and spoil shall not be permitted to be dumped into the water bodies. Prior to construction, the construction contractor shall obtain pollution discharge permits. For those sensitive receptors whose noise level exceeds the PRC Ambient Acoustic Quality Standard (GB 3096-2008), sound-proof windows and densely planted trees shall be installed to ensure that the noise level will meet the applicable standards. The investment shall be included in the environmental protection budget. Construction personnel shall be educated on wildlife protection. Soil erosion measures approved by the water resource bureau shall be implemented. An environmental emergency response plan shall be prepared and integrated into the local emergency response plan. The IA shall implement the “three simultaneousnesses system” (the environmental protection facilities shall be designed simultaneously, constructed simultaneously and put into operation simultaneously with the main project components). In accordance with the PRC Management Guideline on Project Completion Environmental Protection Audit, an application shall be submitted to the EPD for trial operation upon completion of construction. Trial operation shall be allowed only after permission is issued. Within three months of trial operation, an application for environmental protection audit, along with an investigation report, shall be submitted to the EPD. Project operation shall be allowed only after the project has passed the audit. The project shall be subject to inspection and supervision of the responsible local environmental authority. If the project construction starts five years from the date of approval of the EIA, the EIA shall be resubmitted for review. If at any time there are major changes to the nature, alignment, location and environmental protection measures, the EIA shall be revised and resubmitted to the EPD for review and approval. The Fangchenggang Municipal Environmental Protection Bureau is requested to undertake inspection and supervision of environmental protection during construction. Any environmental problem shall be reported to the EPD in a timely manner.

Environmental Protection Department, Guangxi Zhuang Autonomous Region (Official Seal) 1 September 2010.

A2-10 Appendix 2

J. Conclusion

33. From the above analysis, the following conclusions can be reached:

1) The proposed Fangcheng-Jiangshan road does not trespass the Wanheshan NR. The distance of 86 m between the road redline and the boundary of the NR provides a safe buffer for the potential impact on the NR.

2) The proposed road is consistent with the PRC laws, regulations and commitments to international conventions and agreements.

3) The domestic EIA has thoroughly investigated alternatives to the project (including the without project scenario), alternatives designs, and the potential impact on the NR (see main report). The following mitigation requirements are proposed:

i) Expand the road to the opposite direction of the NR. ii) Use low-noise asphalt surface for the 3-km section of the road. iii) Close the two openings facing the NR with densely planted trees.

4) The following enhancement measures will be implemented:

i) Reforestation in the Wanheshan mountain as the nesting and breeding ground; ii) Strengthened patrols to reduce poaching; iii) Improved heron rescue and quarantine to reduce death rate from diseases such as bird flu; iv) Community awareness and education effort by training community members on protection of the herons and their habitat; v) Formulation of local policies, training of local conservation officials and scientific studies and investigations for better understanding and hence enhanced protection of the herons and their habitat.

The estimated cost of CNY 2.94 million for the enhance package has been incorporated into the overall project investment plan.

A2-11 Appendix 3

STRATEGIC ANALYSIS

A. Introduction

1. The project preparation and the EIA process have been guided by and have given full consideration to complementarity to the ADB strategy for the Greater Mekong Subregion (GMS), national and provincial strategies, local development plans, local urban master plans and the strategic environmental assessments that are relevant to the project. The relationships between the project and the major strategies development plans, urban master plans and strategic environmental assessments are summarized in the following subsections.

B. ADB Strategies

2. In 2001, the six GMS countries of Cambodia, China, Laos, Myanmar, Thailand and Vietnam formulated the 10-year strategic framework for the GMS Program, with the vision to achieve enhanced connectivity, increased competitiveness, and a greater sense of community in the GMS. The 13th GMS Ministerial Conference (Vientiane, Lao PDR; 14-16 December 2004) produced its first Plan of Action (POA) to guide the GMS Program’s activities in the medium term. The POA was reviewed and endorsed by the second GMS Summit (Kunming, July 2005). A significant amount of resources has been mobilized for the GMS Program. For the 41 GMS projects with a total investment of $11 billion as of 31 December 2008, GMS governments have provided about $3.3 million; ADB has extended loans amounting to $3.8 billion; and ADB has also generated $3.9 billion in co-financing for these investment projects. A total of U$208 million of grant resources have been mobilized, of which $94 million have been provided by ADB, to finance technical assistance focusing on human resource development, tourism, environment, trade and investment.

3. Transport is the primary sector for ADB investment. Of the total ADB contribution, through its lending program of $3.8 billion between 1992 and 2008 to the nine priority sectors of the GMS Program1, $3.5 billion or more than 91% was on transport projects in Vietnam, Laos, Cambodia and China (Yunnan and Guangxi). Owing to the transport infrastructure investments, all mainland Southeast Asian countries will by 2012 be interconnected with each other, by a series of all-weather roads or "corridors." The GMS Program has built and envisaged a well- connected sub region. Together with improvements in power and telecommunications, these roads will play a key role in increasing the connectivity of the GMS countries and thereby promote closer economic cooperation. Increased connectivity will lead to greater economic opportunities, which will assist reduce poverty.

4. ADB investments in Guangxi are closely linked to the GMS Program. The roads and the marine port projects in Guangxi are part of the northern and eastern transport corridors that support the north-south economic corridor. The three project cities are located in the northeast part of the GMS (Figure A3-1), and thus the improvement of the urban road networks and of the environmental quality in the three cities through the proposed project interventions will contribute to the strategic objectives of inclusive growth and environmental protection for the subregion. Through the three project cities as a gateway, the benefits arising from subregional cooperation can radiate into other parts of the PRC.

1 The nine sectors cover transport, energy, telecommunications, environment, human resources development, tourism, trade and investment. Source: Asian Development Bank.

A3-1 Appendix 3

5. The project is consistent with ADB’s water policy 2 and will help the PRC achieve Millennium Development Goal 7, Target 7.C, which establishes the 2015 target of halving the proportion of people without sustainable access to safe drinking water and improved sanitation. The project is also consistent with ADB’s strategic objectives in the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability. By supporting the sustainable development in the three project cities, the project supports ADB’s long-term strategic framework (Strategy 2020) and PRC Country Partnership Strategy (2008-2010); it promotes efficient infrastructure, strengthens environmental management, and supports inclusive growth and balanced development to help the Government build a xiaokang (moderately well-off) society.

Figure A3.1: Project Cities in GMS and Other Subregional and National Programs

2 ADB. 2001. Water for All: The Water Policy of ADB. Asian Development Bank, Manila, Philippines.

A3-2 Appendix 3

C. National and Provincial Strategies

Western Development Strategy 6. Under the paramount leadership of Deng Xiaoping, the PRC began to reform its economy in 1978 by changing from a command economy to a market economy. The coastal regions of eastern PRC benefited greatly from these reforms, and their economies quickly raced ahead. The western half of the PRC, however, lagged behind severely. The Western Development Strategy (WDS) was launched in 1999, with the aim to help the western PRC catch up with the eastern provinces. A Leadership Group for Western Development, headed by the Premier, was established by the State Council in January 2000.

7. The WDS covers six provinces (Gansu, Guizhou, Qinghai, Shaanxi, Sichuan, and Yunnan), five provincial-level ethnic minority autonomous regions (Guangxi Zhuang AR, Inner Mongolia AR, Ningxia Hui AR, Tibet AR, and Xinjiang Uygur AR), and one municipality of provincial status directly administered by the central government (Chongqing) (see Figure A3.2). This region contains 71.4% of mainland China's area, but only 28.8% of its population (at the end of 2002), and 16.8% of its total economic output (2003).

Figure A3.2: Twelve Provinces under Western Development Strategy

8. Since 2003, the central government has released and implemented a series of preferential supporting policies to the WDS. These policies cover, among other things: i) direct financial support to capital construction projects; ii) increased shares of IFI loans; iii) promotion

A3-3 Appendix 3 of foreign and domestic direct investments; iv) priority consideration in location of large-scale state-invested water conservancy, transportation and energy projects; v) increase in transfer payments in the form of regular transfer payments and specialized subsidy and funding programs; vi) increase in lending by domestic development banks (e.g., China Development Bank) to infrastructure development, especially railways, primary highways, urban development, power, petroleum and natural gas projects; vii) reduction of corporate income taxes, value- added taxes, land taxes and import duties up to 100%; and viii) subsidies and tax breaks for natural resource industries such as mining, hydropower, coal, oil and gas. The main components of the strategy include the development of infrastructure (transport, hydropower plants, energy, and telecommunications), enticement of foreign investment, increased efforts on ecological protection (such as reforestation), promotion of education, and retention of talent flowing to richer provinces. As of 2006, a total of 1 trillion yuan has been spent building infrastructure in western China.

9. At the opening ceremony of the 11th Western China International Economic and Trade Fair and 2nd Western China Forum on International Cooperation held in Chengdu on 16 October 2009, Premier Wen Jiabao affirmed the continuation of the WDS. Premier Wen elaborated that the Chinese government will elevate the expansion of the western development and opening up to a more prominent strategic position, striving to make the western region a “new economic growth pole” by constructing it into a home base for modern industries, demonstration area for coordinated urban and rural reform and development and a pioneer for ecological protection. Further expansion of cooperation with neighbouring countries will be promoted. The project will therefore contribute to the achievement of the objectives of the WDS.

Guangxi Beibu Gulf Economic Area Development Plan 10. In January 2008, the “Guangxi Beibu Gulf Economic Zone Development Plan” was approved by the central government, reinforcing the importance of the Guangxi Beibu Gulf Economic Zone (GBGEZ) in the Western Development Strategy and the China-ASEAN Free Trade Area. The purpose is to transform the GBGEA into China’s gateway to ASEAN through the development of logistics, trade and commerce, processing and manufacturing and information industries.

11. Located in China’ southwestern coast, the GBGEZ is composed of four municipalities of Nanning, Beihai, Qinzhou and Fangchenggang in Guangxi, with a total land mass of 42,500 km2 and a total population of approximately 13 million (Figure A3.3).

A3-4 Appendix 3

Land area: 425,000 km2 2 Nanning Marine area: 130,000 km Municipality Coastline: 1,595 km Total population: 12.55 million

Note: end of 2006 GUANGXI ZHUANG AUTONOMOUS REGION

Qinzhou

Fangchenggang Municipality

Municipality Guangxi Beibu Gulf Beihai Municipality Economic Zone VIETNAM GUANGDONG PROVINCE

Figure A3.3: Guangxi Beibu Gulf Economic Development Zone

12. The strategic position of the GBGEZ is defined as an important international regional economic cooperation zone. It will serve as a gateway to Southeast Asia for the southwestern, southern and central-southern provinces, thus supporting the achievement of the Western Development Strategy and the development of the GBGEZ into an economic growth area in PRC’s southwestern coast.

13. According to the plan, the GBGEZ is divided into five “functional clusters” which cover two of the three project municipalities. The Qinzhou-Fangchenggang cluster will cover the urban centres of the two municipalities, the industrial zones along the coast and related areas. The priorities will be to take advantage of the deep and large seaports, construct tariff-free bonded zones at the ports, and develop heavy industries and port-based logistics industries along the coast. The Beihai cluster covers the urbanized area of Beihai, Hepu county seat and adjacent development areas. The priorities will be subtropical coastal tourism, electronics and information technologies, biological medicine, export processing and logistics.

14. The Dongxing-Pingxiang cluster entails the Dongxing city of Fangchenggang, Pingxiang city of Chongzuo, economic zones along the China-Vietnam border and surrounding areas. As a gateway of the coastal corridor to ASEAN countries, this cluster will have the priorities of export processing, trade and commerce and cross-border tourism. The Tieshan port cluster, covering theTieshan port district of Beihai and Longtan township of Yulin city, will focus on port-based coastal industries and agriculture. The central government has granted several preferential policies for the GBGEZ. The central support includes, among other things: i) planning and location of key programs and projects, as well as expeditious review, approval and registration; ii) establishment of tariff-free bonded areas and logistics zones; iii) establishment of local banks and sector investment funds, and expand enterprise bond program; and iv) promotion of GBGEZ subnational cooperation under the China-ASEAN cooperation framework. Although it is too early for the GBDEZ program to show results, its contribution to the future socioeconomic development of Guangxi is assured.

Guangxi Urbanization Strategy 15. The 11th FYP for GZAR has established a series of socioeconomic targets, including 10% of the average annual rate of GDP growth (compared to 10.6% for the 10th FYP) and 40% of urbanization rate by the end of 2010. One of the supporting measures is to accelerate

A3-5 Appendix 3 infrastructure development. The objective for the transportation sector is to build an integrated, fast, efficient and safe network of highways, railways, coastal ports, inland waterways and airports that further improve the inter- and intra-provincial connectivity. On the urbanization front, the objective is to promote coordinated urban and rural development. The Guangxi Beibu Gulf Economic Area will be developed into “dragon-head” and urban centers into new growth poles, supported by county-level economic growth, with a view to establish a new region-wide economic development pattern, entailing interconnected economy of coastal areas-urban centers-counties. Urbanization will be promoted around “four clusters and four belts”, including the Nanning-Beihai-Qinzhou-Fangchenggang coastal urban cluster connected by coastal highways and railways (Figure A3.4).

Figure A3.4: Four Clusters and Four Belts of Urbanization in GZAR

D. Local Urban Master Plans

Beihai Urban Master Plan 16. The Beihai Urban Master Plan (BUMP) covers the timeframe of 2008 to 2025, which includes the short term (2015) long term (2025). The planned city population is 1.05 million for 2015 and 1.75 million for 2025. The BUMP establishes the strategic direction of building Beihai into an “international tourist city” and an “port city” with priorities on high-and-new technologies and port-related industries, and making the city into an “international Beihai, coastal Beihai, tourist Beihai and livable Beihai”, and a Beihai as an important node of the international cities network, a demonstration area for cooperation with ASEAN and for serving south-western, central and central-southern PRC. The city is divided into three urban districts, with the

A3-6 Appendix 3

Haicheng district lying in the west, Yinhai district in the center and the Tieshan port district in the east against the coast. The urban development will be pursued in eight clusters, including the Zhulin cluster (where the proposed Zhulin road will serve as a major vertical artery transport corridor) and the Tieshan port west cluster (where the proposed Yingpan road will serve as the southern-most transport link between the Tieshan port industrial zone and the Yingpan town as its residential area). Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 40% or 9 m2 per capita by 2015 and 45% or 13 m2 per capita by 2025. The transport plan includes a well-covered public transit system. The BUMP has also established zoning restrictions on future urban expansion by dividing the urban area into four categories: i) already built-up area; ii) areas suitable for urban expansion; iii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; and iv) forbidden areas, where any urban development will not be allowed. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed Zhulin and Yingpan roads are located in the areas suitable for urban expansion.

Qinzhou Urban Master Plan 17. The Qinzhou Urban Master Plan (QUMP) covers the timeframe of 2008 to 2025, which includes the short term (2012), medium-term (2020) and long term (2025). The planned city population is 1.30 million for 2025. The QUMP establishes the strategic direction of building the city into an “open Qinzhou” (China-ASEAN-oriented international transport hub, logistics center and gateway for south-western PRC), “modern Qinzhou” (Beibu Gulf-oriented coastal industrial hub, modern port city with economic vitality and coordinated urban-rural development) and “unique Qinzhou” (a livable and commerce-friendly city with south-western culture, coastal landscape and south-east Asia culture). The city is divided into two urban districts: Qinnan district in the south and Port district in the north. The Xincheng area where proposed Qinzhou Xincheng road network is located will be built into a full-serviced residential community with a population of 170,000 by 2025 for the workers of the entire Port district. Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Major pollution targets include centralized sewage treatment and sanitary garbage disposal of respectively 80% and 95% by 2012, 85% and 98% by 2020 and 90% and 100% by 2025. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 40% or 9 m2 per capita by 2012, 43% or 13 m2 per capita by 2020 and 45% or 14 m2 per capita by 2025. The transport plan includes a well- covered public transit system. The QUMP has also established zoning restrictions on future urban expansion by dividing the urban area into three categories: i) forbidden areas, where any urban development will not be allowed; ii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; and iii) areas suitable for urban expansion. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed road network is situated in the Xincheng area designated under the QUMP as suitable for residential development.

Fangchenggang Urban Master Plan 18. The Fangchenggang Urban Master Plan (FUMP) covers the timeframe of 2008 to 2025, which includes the short term (2015) and long term (2025). The planned city population is 480,000 for 2015 and 1 million for 2025. The FUMP establishes the strategic direction of building Fangchenggang into an “important port city” as a marine gateway for south-western PRC; ii) coastal industrial base with iron and steel, power, grain and chemical as pillars; iii)

A3-7 Appendix 3

“gateway city” linking south-western PRC with ASEAN; iv) “international coastal tourism resort”; v) “central city for Guangxi Beibu Gulf Economic Zone”. The city is divided into major urban districts: Fangcheng district in the west and Gangkou (port) district in the east. The proposed Fangcheng-Jiangshan road is located in the Fangcheng district and the Maoling WWTP in the Gangkou district. Environmental function zones are designated and air, surface water, marine water and acoustic quality targets are set for the planning periods. Major pollution targets include centralized sewage treatment and sanitary garbage disposal of respectively 70% and 100% by 2015 and 90% and 100% by 2025. Ecological buffers zones and green belts are planned between and within the urban clusters. The green cover target is 35% or 7.3 m2 per capita by 2015 and 45% or 8.4 m2 per capita by 2025. The transport plan includes a well- covered public transit system. The FUMP has also established zoning restrictions on future urban expansion by dividing the urban area into three categories: i) forbidden areas, where any urban development will not be allowed; ii) restricted areas, where the development will be controlled to a level consistent with its environmental and ecological carrying capacity; iii) areas suitable for urban expansion; and iv) already built-up areas. Moreover, the master plan also covers an emergency preparedness response plan (fire, flood, earthquake, chemical spills, etc.). The proposed Fangcheng-Jiangshan road is located in the area designated as suitable for urban development. The Maoling WWTP is situated in the Maoling industrial park (classified as industrial use) as the northern annex of the Gangkou industrial district.

E. Strategic Environmental Assessments

19. Two of the proposed road projects, Beihai Yingpan road and Qinzhou Xincheng road network, are situated in an industrial area for which a strategic environmental assessment (SEA)3 was prepared and approved in 2009, in accordance with the PRC EIA Law (2003)4. Extensive public consultations were undertaken in respect to the SEAs, including, among other things, two website postings for each SEA, focus group meetings and expert panel reviews. The preparation of the project EIAs and CEIA was guided by the SEAs.

SEA for Beihai Tieshan Port Industrial Zone 20. The planning boundary of the Tieshan Port Industrial Zone (TPIZ) starts from the Nankang river in the west, Shitoufu village in the east, Beihai-Tieshan class-I highway in the south and Tieshan port area in the north, with a total area of 131.55 km2. The planned population is 300,000 by 2025. The development orientations of the TPIZ include logistics, trade, chemical, pulp and paper, manufacturing and power industries. There will be green belts surrounding the TPIZ and green barriers between the functional areas within the industrial zone (Figure A3.5).

3 In the PRC, SEA is called “Plan EIA”. SEA is used throughout the CEIA. 4 PRC Regulation on Plan EIA was proclaimed by the State Council and became effective as of 1 October 2009. ADB contributed to the formulation of the regulation, see “Recommendations on improving SEA in the PRC”, Observations and Recommendations, 16 March 2009, Beijing, PRC Resident Mission, Asian Development Bank.

A3-8 Appendix 3

TIESHAN Green Belt / Barrier Project Road PORT

INDUSTRIAL

ZONE

YINGPAN TOWN

Figure A3.5: Green Belts and Barriers for Tieshan Port Industrial Zone

21. The SEA covers, among other things, the following key issues: i) alternatives analysis; ii) cumulative impacts of the proposed developments within the TPIZ, including the planned residential communities; iii) mitigation measures, including recommendations on sectoral and geographical restrictions on industrial and residential developments and environmentally sensitive areas; iv) environmental facilities, including wastewater treatment plants and sanitary landfills; and v) risk assessment and emergency preparedness and response mechanism.

22. During the preparation of the domestic EIA, special attention was paid to the air pollution effect of the TPIZ on Yingpan town as a residential community. The air quality simulation took into consideration the emissions from the industrial zone and the airshed characteristics (e.g., Yingpan located parallel to the prevailing wind (see right bottom of Figure A3.6 for wind rose). The predicted air quality for the Yingpan town meets the designated class-II of the PRC Ambient Air Quality Standards (GB 3095-1996).

SEA for Qinzhou Port Industrial Zone 23. With a total area of 138.46 km2, the planning boundary of the Qinzhou Port Industrial Zone (QPIZ) covers the entire port district south of the Qinnan district. The planned population is 170,000 by 2025. The development orientations of the QPIZ include petrochemical, energy, logistics, trade, pulp and paper and manufacturing industries. There will be green belts surrounding the QPIZ and green barriers between the functional areas within the industrial zone.

24. The SEA covers, among other things, the following key issues: i) alternatives analysis; ii) cumulative impacts of the proposed developments within the QPIZ, including the Xincheng area as a centralized residential community for the QPIZ; iii) mitigation measures, including recommendations on sectoral and geographical restrictions on industrial and residential developments and environmentally sensitive areas; iv) environmental facilities, including wastewater treatment plants and sanitary landfills; and v) risk assessment and emergency preparedness and response mechanism. In particular, the cumulative air quality impact on Qinzhou city was simulated, and the incremental SO2 contour map is shown Figure A3.7.

A3-9 Appendix 3

Combing the background concentrations and the incremental concentrations, all air quality parameters meet the class II of the PRC Ambient Air Quality Standards (GB 3097-1996).

25. During the preparation of the domestic EIA, special attention was paid to the air pollution effect of the QPIZ on the Xincheng area as a centralized residential community for the entire QPIZ. The air quality simulation took into consideration the background concentrations and the incremental emissions from the QZIP and the airshed characteristics. The predicted air quality for the Xincheng area meets the designated class-II of the PRC Ambient Air Quality Standards (GB 3095-1996). Detailed results can be found in Chapter E.

Q I N Z H O U

FANGCHENGGANG

Xincheng District (Project Road Network( BEIHAI

Figure A3.7: Forecasted SO2 with Respect to Qinzhou Port Industrial Zone

A3-10