Environmental Monitoring Report

Project Number: 48358-001 Covered period: 1January 2020 - 30 June 2020 March 2021

People’s Republic of China: Shanxi Inclusive Agricultural Value Chain Development Project

Prepared by Shanxi Foreign Capital Pverty Alleviation Project Management Office for the Shanxi Provincial Government and the Asian Development Bank

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

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

Environmental Monitoring Report

Project Number: 3567-PRC November 2020

PRC: Shanxi Inclusive Agricultural Value Chain Development Project Environmental Monitoring Report for 1 January 2020 to 30 June 2020

The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s members, Board of Directors, Management, or staff, and may be preliminary in nature. Prepared by Shanxi Foreign Capital Poverty Alleviation Project Management Office for the Shanxi Provincial Government and the Asian Development Bank.

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

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

L3567-PRC: Shanxi Inclusive Agricultural Value Chain Development Project - Semi-annual environmental monitoring Report

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CURRENCY EQUIVALENTS

(as of 30 June 2020)

Currency unit – Yuan (CNY)

CNY1.00 = $ 0.1413

$1.00 = CNY 7.0715

ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank GRM Grievance redress mechanism

AVC Agricultural value chain Leq Equivalent continuous sound pressure level, in decibels

BOD5 5-day biochemical oxygen demand LAeq Equivalent continuous A-weighted sound pressure level, in decibels

CNY Chinese Yuan, Renminbi LIC Loan implementation consultant

CODcr Chemical oxygen demand IA Implementing agency

CSC Construction supervision company IEE Initial environmental examination dB Decibels MOE Ministry of Environment

DO Dissolved oxygen NH3-N Ammonia nitrogen

EIA Environmental impact assessment NO2 Nitrate

EA Executing Agency O&M Operation and maintenance

EIA Environmental impact assessment pH potential of hydrogen; used to specify the acidity or basicity of a solution

EIR Environmental impact report PMO Project management office

EIT Environmental impact table PAC Project agribusiness company or cooperative

EMA Environmental monitoring agency PPTA Project preparatory technical assistance

EMP Environmental Management Plan PRC People’s Republic of China

EMR Environmental Management Report RP Resettlement plan

EMS Environmental monitoring station SPG Shanxi provincial government

EPB Environmental protection bureau SOE State-owned enterprises

ESS Environmental safeguard consultant SPS Safeguard Policy Statement (of ADB)

FSR Feasibility study report WHO World Health Organization

FYP Five Year Plan WRB Water resources bureau

GDP Gross domestic product WRS Water resource specialist

GHG Greenhouse gas WWTP wastewater treatment plant

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NOTE In this report, "$" refers to US dollars

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SUMMARY PROJECT INFORMATION

GENERAL INFORMATION

Project title: Shanxi Inclusive Agricultural Value Chain Development Project

Date of project effectiveness: 11 January 2018

Executing agency: Shanxi Provincial Government

Implementing agency: 7 County Project Management Offices (CPMOs) under the County Poverty Alleviation and Development Offices. Counties include: Qin, Heshun, Quwo, Liulin, Shilou, Jishan, Guangling

Project implementing units 19 Project Agribusiness Companies and Cooperative (PACs) * including:

1. Shanxi Qinzhouhuang Millet Group Co., Ltd. 2. Guangling Kitano Edible Fungus Industrial Development Co Ltd. 3. Shanxi Juxin Weiye agricultural and Science & Technology 4. Heshun County Lvhe Ecological Agriculture & Livestock Development Co., Ltd. 5. Fenxi Hongchang Breeding Co., Ltd. 6. Fushan Guhuan Husbandry Science & Technology Co., Ltd. 7. Quwo Lvheng Agricultural Development Co., Ltd. 8. Shanxi Qierkang Elaeagnus Biological Products Co., Ltd. 9. Linfen Zhongde Farming Technology Development Co., Ltd 10. Liulin Fuzhongyuan Agricultural Development Co., Ltd. 11. Shilou Shude Jujube Industry Co., Ltd. 12. Shanxi Tianzhirun Date Processing Co., Ltd. 13. Xinjiang Hefeng Grain Planting Technology Cooperatives 14. Shanxi Xinjiang Vegetable Industry Development Co., Ltd 15. Shanxi Kaisheng Fertilizers Group Co., Ltd. 16. Yuncheng Xinke Taifang Vegetable Trading Co., Ltd 17. Shanxi Shanlihong Food Co., Ltd. 18. Shanxi Jinglong Group Jinghua Livestock and Poultry Products Development Co., Ltd 19. Shanxi Phonenix Wine Co., Ltdlopment Co., Ltd

PMO (name of agency): Shanxi Poverty Alleviation and Development Office

PMO Environment Officer (name, email): Ms. Li Xiaojuan, [email protected]

Loan implementation consultant / firm: NA

ESS: Mr. Zhang Defa

Construction supervision company(ies): NA

Contractor(s): NA

ADB web link to EMP: https://www.adb.org/projects/documents/prc-48358-001-iee

Domestic web link to EMP: NA

Note: PACs highlighted will be removed from the project,

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ENVIRONMENTAL SAFEGUARD MONITORING

ADB environment safeguard category: B

Environmental report prepared as per Initial Environmental Examination ADB requirements for this category: Addendum IEEs for scope changes

Domestic safeguard report: Domestic EIA reports (one for each subproject)

Quarterly period covered by this report: 1 January 2020 to 30 June 2020

# EMRs to date including this report: 4

Agency/person responsible for internal* 7 person (One from each PAC of remained subprojects) environmental monitoring:

Agency/person responsible for external* PACs will contract external environment monitoring agency one environment monitoring: month before civil work construction.

Agency/person responsible for Mr. Zhang Defa, the environmental safeguard consultant compliance* environment monitoring:

Agency/person responsible for This is environment safeguard category B project. No independent independent compliance monitoring: compliance monitoring for this project is required

Overall status of environmental On track safeguards:

ADB = Asian Development Bank, EMP = environmental management plan, EMR = environment monitoring report, ESS = environment safeguard specialist; PMO = project management office.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 7

A. OVERVIEW...... 7

B. PROGRESS IN IMPLEMENTING THE EMP...... 7

C. KEY ISSUES ...... 8

D. NEXT STEPS ...... 8 II. INTRODUCTION ...... 10

A. PURPOSE OF REPORT ...... 10

B. PROJECT OUTCOME, OUTPUTS AND SUBCOMPONENTS ...... 10

C. PROJECT IMPLEMENTATION PROGRESS ...... 11 III. SUMMARY OF THE PROJECT ENVIRONMENTAL MANAGEMENT PLAN...... 13 IV. ENVIRONMENTAL MANAGEMENT DURING THE REPORTING PERIOD ...... 15

A. INSTITUTIONAL ARRANGEMENT ...... 15

B. IMPLEMENTATION OF THE PROJECT MITIGATION MEASURES ...... 17

C. IMPLEMENTATION OF THE PROJECT MONITORING PROGRAM ...... 36

D. PUBLIC CONSULTATIONS AND GRIEVANCE REDRESS MECHANISM ...... 37

E. TRAINING AND CAPACITY BUILDING ...... 39

V. IMPLEMENTATION OF HEALTH AND SAFETY PLAN IN RESPONSE TO COVID-19 ...... 39

1. COVID-19 impact on the Project ...... 40

2. Resumption of the works and precaution measures ...... Error! Bookmark not defined.

B. COSTS OF EMP IMPLEMENTATION DURING THE REPORTING PERIOD ...... 41

C. COMPLIANCE WITH LOAN AND PROJECT ASSURANCES ...... 42

D. REPORTING ...... 43 VI. NEXT STEPS ...... 45 APPENDIX 1. COMPLIANCE WITH ENVIRONMENTAL ASSURANCES ...... 47 APPENDIX 2. PHOTOES ...... 52 APPENDIX 3. COVID-19 RISK ASSESSMENT ...... 55 I. COVID-19 INFECTION IN PROJECT AREA ...... 56

A. SHANXI PROVINCE ...... 56

B. PROJECT COUNTIES ...... 57 II. POLICIES AND GUIDELINES FOR COVID-19 PREVENTION AND CONTROL ...... 58

A. INTERNATIONAL PRACTICE GUIDANCE ...... 58

B. DOMESTIC REGULATIONS AND POLICY PRINCIPLES ...... 58

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C. APPLICABLE LOCAL REQUIREMENTS AND PROCEDURES ...... 59 III. COVID-19 IMPACT ON THE PROJECT ...... 60

A. IMPACT ON CONSTRUCTION SCHEDULE ...... 60

B. IMPACT ON CONSTRUCTION WORKERS ...... 61

C. IMPACT ON COMMUNITIES ...... 61 IV. SUMMARY MEASURES BY THE PROJECT TO MANAGE THE OUTBREAK ...... 61

A. MEASURES TAKEN BEFORE RESUMPTION OF CONSTRUCTION WORK...... 61

B. MEASURES TAKEN DURING CONSTRUCTION ...... 63 V. CONCLUSION ON THE LEVEL OF RISKS ...... 65 VI. NEXT STEPS TO MANAGE RISKS ...... 66

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EXECUTIVE SUMMARY

A. Overview.

1. This semi-annual report presents the status of compliance with the environment management plan (EMP) during the project implementation covering the period from 1 January 2020 to 30 June 2020. The key environment issues caused by project construction have been discussed, and corresponding improvement measures and follow up actions have been suggested according to the issues found.

B. Progress in Implementing the EMP.

1. In general, the project has been implemented in accordance with EMP requirements.

2. Contractual arrangement. PPMO has distributed the EMP to MPMOs, CPMOs, PACs and design institutes. Relevant environmental requirements have been included in the bidding documents, civil works contracts with contractor and supervision contract with supervision companies. The contractual arrangement complies with the EMP.

3. Institutional setup. PPMO, municipal and county PMOs and PACs have designated environment officers to conduct environment management. An environment person was appointed by each contractor and each supervision company to be responsible for the implementation of environmental mitigation measures and internal monitoring.

4. Mitigation measures implementation. The contractors have prepared site environment, occupational health and safety management plan. The site management plan has been properly implemented by the contractors. No environmental pollution, health and safety accident recorded during reporting period. The implementation of mitigation measures is complied with the EMP.

5. Public consultation and GRM. At the project preparation stage, PACs, design institutes, EIA Institutes have conducted related public consultation activities in accordance to ADB requirements. The GRM has been established and carried out by PPMO and PACs. No complaints have been received during this reporting period.

6. Internal monitoring. During reporting period, internal monitoring has been performed including: (i) regular site inspection by the CSC on a daily basis. (ii) Regular site inspections by Environment Officers of PACs with assistance of CSCs on a weekly basis. (iii) Random site inspections by PPMO, MPMO and CPMO. The internal monitoring activities undertaken include visual inspection of (i) dust mitigation measures, equipment maintenance; (ii) garbage and construction waste management; (iii) soil erosion and re-vegetation; (iv) camp hygiene, safety, availability of clean water, emergency response plans; (v) construction wastewater control and domestic wastewater management (vi) COVID-19 prevention measures 7 implementation. The internal monitoring results have been prepared by the CSCs and submitted to PACs for review on a monthly basis during the reporting period. In general, the internal monitoring is complied with the EMP.

7. External environmental monitoring. No environmental monitoring agency has been contracted during reporting period. The Shilou Shude PAC has consulted with two monitoring agencies including Shanxi Huadu Environment Monitoring Company ad Shanxi Taizhihe Environment Monitoring Agency, and select and contract one of them to conduct external monitoring for the subproject. It is expected the contract will be awarded by the end of July 2020 and the first external monitoring report will be conducted in early of August 2020. The Guangling Kitano PAC planned to contract Shanxi Qingze Sunshine Environmental Technology Company to conduct external monitoring. It is expected the first monitoring will be initiated in early August 2020.

8. Training. Environmental officers of PPMO and PACs have been working effectively on the project with the support of the environmental safeguard specialist (ESS). One formal training workshop has been conducted during previous reporting period. No training workshop held during this reporting period. The ESS provided guidance to PACs via phone call and WeChat communications as needed.

C. Key issues

9. Key issue is lack of external monitoring for the Shilou Shude and Guangling Kitano subprojects whose civil work construction initiated during this reporting period.

D. Next steps

10. As shown in following table ES-1.

Table ES-1. Actions to be taken during Following Reporting Period

Issue Action By When By Whom

External Each PAC recruits one environmental monitoring July 2020 PACs environmental agency. monitoring Shilou Shude and Guangling Kitano that initiated construction conduct monitoring following monitoring program for construction phase.

Training The ESS provides training to PACs, contractors and During field ESS CSCs. The training will focus on the implementation visits to mitigation measures and environment monitoring construction especially to the Shilou Shude and Guangling Kitano sites that already initiated construction; and focus the project completion environment acceptance and

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external monitoring for operation phase to PACs of Quwo and Heshun that will go to trial operation.

Acceptance report Quwo Lvheng and Heshun Lvhe to prepare Next reporting PACs of / audit report – acceptance report / audit report – completion of period Quwo and completion of facilities Heshun facilities

GRM disclosure Disclose GRM focal points to affected people at the before Contractors, main entrance to each construction site. construction PACs commencement

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II. INTRODUCTION

A. Purpose of report

11. The purpose of this environmental monitoring report (EMR) is to describe and assess progress for implementation of the environmental management plan (EMP) for the Shanxi Inclusive Agricultural Value Chain Development Project, for the reporting period 1 January 2020 to 30 June 2020. This EMR is submitted in compliance with the Safeguard Policy Statement (SPS)1 of the Asian Development Bank (ADB) and the loan agreement between ADB and the project executing agency.

12. This is the fourth EMR for the project. It covers part of the design phase and construction phases of the project since all the subprojects are still in design stage during reporting period. The report describes: (i) project readiness with respect to fulfilling environmental requirements; (ii) implementation of mitigation measures; (iii) monitoring activities; (iv) public consultations (including grievance redress); (v) training and capacity building; (vi) expenditures for EMP implementation (including mitigation, monitoring, and training); (vii) reporting; and (viii) an overall assessment of key achievements, challenges, issues, corrective actions, and lessons learned, during the reporting period.

B. Project outcome, outputs and subcomponents

13. The PACs comprise 18 companies and 1 cooperative (Xinjiang Hefeng Grain Planting Technology Cooperatives). The project outcome (income-generating opportunities from selected local specialty agricultural products are increased) will be accomplished through two outputs: (i) agricultural value chains (AVCs) strengthened; and (ii) inclusive business mechanism piloted. The PACs are grouped into two categories: (i) 9 PACs that were assessed to have the potential for value chain development (PAC1s) (output 1); and (ii) the other 10 PACs selected for the potential for inclusive business for output 2 (PAC2s).

14. Output 1: Agricultural value chains strengthened. This output will comprise nine subprojects of the PAC1s (i.e., five companies producing, processing, and/or marketing fruits, vegetable, mushroom, and wine; and four livestock and poultry farms). Investment component will help the PAC1s invest in civil works (workshops, cold storages, animal sheds, biogas digester) and/or goods (equipment and materials) for primary production, processing, and research and development to scale up and improve their operations and value chains based on their respective investment designs (AVC investment). Non-investment component will comprise (i) technical support for the PAC1s, including training and advisory services; (ii) preparation and implementation of the AVC action plans for at least eight PAC1s (model PAC1s) to demonstrate model AVCs; (iii) training on the value chain approach for agribusiness companies, cooperatives, farmers, and relevant government agencies; (iv) training for cooperatives and farmers on institutional and financial management, and cooperation arrangements in production and processing, and contracting; (v) awareness-

1 ADB. 2009. Safeguard Policy Statement. Manila.

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raising and training on business opportunities in AVC for services providers, such as financial institutions and logistics services providers; and (vi) study tours on best practices on the AVC for the PAC1s and relevant government agencies.

15. Output 2: Inclusive business mechanism piloted. This output will comprise 10 subprojects of the PAC2s (i.e., eight companies producing, processing, and/or trading coarse grains, mushroom, fruits, vegetable and its seedlings, herbal plants; and two livestock and poultry farms). The investment component will help the PAC2s invest in civil works (workshops, storages, animal sheds, and biogas digester) and/or goods (equipment and materials) for primary production, processing, marketing, and product quality control to scale up and upgrade their operations based on the PAC-specific investment designs; and further demonstrate inclusive business to generate viable income-generating opportunities, particularly for the poor and low-income people, based on the inclusive business action plans (inclusive business investment). Non-investment component will comprise (i) technical support to the PAC2s, including training and advisory services; (ii) development and implementation of a localized inclusive business mechanism (LIBM), which entails company appraisal, incubation, monitoring, evaluation, and recognition, to systematically promote inclusive business; (iii) preparation of inclusive business action plans for the PAC2s and their implementation, (iv) training for the Shanxi Poverty Alleviation and Development Office (SPADO) and the Shanxi Provincial Agriculture Department on localized inclusive business mechanisms; (v) training on the inclusive business approach for agribusiness companies; (vi) preparation and sharing of a policy brief on the LIBM and experiences with SPG and the government for their consideration to incorporate it in the PRC’s Fourteenth Five-Year Plan; (vii) study tours on best practices on inclusive business for the PAC2s and relevant government agencies; (viii) dissemination of the achievements of the LIBM implementation.

16. The PACs have existing agreements with local farmers to provide technical support, training, and materials (e.g. seedlings, young livestock) and in return, the farmers sell their products to the PAC. At the cooperative, all members are farmers who are co-owners and have contributed their lands to a common pool, share the resources, work, and benefits.

17. Key project activities. All subproject facilities will be expansions to the existing facilities, and the siting of subprojects meets PRC regulations. None of the PAC locations affect ecologically sensitive areas, including water source protection areas, nature reserves, scenic reserves, and cultural heritage sites.

C. Project implementation progress

18. The project became effective on 11 January 2018. The PPMO advised that 11 PACs (i.e. 4 value chain companies and 7 inclusive companies) have indicated their intention to drop out of the project. The reasons are various. Some PACs have obtained funds from alternative resources and will not use the loan proceeds anymore, while some failed to secure proportional collateral when entering into an onlending agreement with their respective PIAs. Under the circumstances, the PPMO may need to identify and select replacement PACs. Meanwhile, an unallocated loan amount of $8.19 million needs to be used for new PACs.

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19. Upon this reporting period, the overall project progress is about 22.5% against 45% of time elapsed. Implementation progress should be accelerated. As of this reporting period (30 June 2020), the total contract awards amounted to $ 26,447,462.17, 29.4% of the loan amount. Upon the end of this reporting period (30 June 2020), only 11 contracts including 2 TA contracts are awarded.

1) Contract 08-QWLH-C01, Construction of mushroom processing workshops, with the contract price of CNY 26,887,801.15; 2) Contract 05-HSLH-G01, Purchase of 700 cows, with the contract price of CNY 10,150,000.00; 3) Contract 05-HSLH-G02, Purchase of 800 cows, with the contract price of CNY 11,600,000.00 4) Contract 01-QZHM-E01, Millet powder production line and packing equipment, with the contract price of CNY 12,640,500.00 ; 5) Contract 02-GLKT-C01, Construction of mushroom processing workshops, with the contract price of CNY 28,211,097.51 ; 6) Contract 12-SLSD-C01, Construction of comprehensive processing workshops and supporting engineering, with the contract price of CNY 11,995,830.29 ; 7) Contract CS01-AVC, Advisory services on agriculture value chain development, with the contract price of USD 799,135.00; 8) Contract CS01-IB, Advisory services on piloting inclusive business mechanism, with the contract price of USD 534,424.60; 9) Contract 06-FXHC-C01, Construction of henhouse and supporting engineering, with the contract price of CNY 16,906,468.42; 10) Contract 06-FXHC-E01, Henhouse and supplementary equipment, with the contract price of CNY 18,400,372.85; 11) Contract 02-GLKT-E01, Mushroom production and processing equipment, including constant temperature refrigeration equipment, with the contract price of CNY 41,014,360.00

20. As of 30 June 2020, four civil work contracts was awarded, the contract 08-QWLH- C01 was completed in first half of 2019 and the rest three civil work contracts are under construction including 06-FXHC- C01 construction of henhouse and supporting engineering, 2-SLSD- C01 Construction of comprehensive processing workshops and supporting engineering and 02-GLKT- C01 construction of mushroom processing.

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III. SUMMARY OF THE PROJECT ENVIRONMENTAL MANAGEMENT PLAN

21. The project environmental management plan (EMP) is the primary reference document for the government and ADB for all environment-related mitigation, monitoring, reporting, and training activities for the project. Timely and effective implementation of the EMP is a key condition of the loan agreement between the government and ADB. The EMP was prepared as part of the initial environmental examination in 2017. The EMP is being implemented over 2 year, comprising 1 year of construction. The content of the EMP includes: institutional roles and responsibilities for EMP implementation; mitigation measures for environmental safeguard risks; environmental monitoring and reporting; training and capacity building; grievance redress mechanism (GRM); cost estimates; and, other information e.g. terms of reference for key positions.

22. Project institutional arrangements (Section B of the EMP). This section of the EMP describes the roles and responsibilities of relevant agencies for EMP implementation.

23. Project readiness assessment (Section B of the EMP). This is the first key step prior to the start of project civil works, to ensure that preparations for EMP implementation have been completed.

24. Potential impacts and mitigation (Section C of the EMP). This section of the EMP summarizes the potential environmental impacts and mitigation measures for the different phases of the project: detailed design and pre-construction phase; construction phase; and operations phase. Table EMP.2 in the EMP summarizes the environmental risks and mitigation measures, and agencies responsible for implementation and supervision of these measures.

25. Environmental monitoring program (Section D of the EMP). The program comprises three types of monitoring: (i) internal monitoring; (ii) external monitoring; and (iii) compliance monitoring Internal monitoring is assessment by the project implementation units (PACs) and/or CSCs to ensure the contractors are implementing mitigation measures as described in their contractual arrangements and EMP. External monitoring is the measurement of specific environmental variables (e.g. air quality, dust levels, noise emissions) to ensure that the construction activities do not exceed the legal parameters and standards specified for the project. This is being conducted by certified monitoring agencies. It has been agreed that each PAC will hire one external agency. Compliance monitoring is the overall assessment of whether all EMP measures are being complied with, and is conducted by the PMO Environment Officer, supported by the ESS. This monitoring does not involve quantitative measurement of environmental variables, but is based on visual inspection, site visits, and review of the progress reports for internal and external monitoring

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26. Reporting (Section D of the EMP). This section of the EMP describes the reporting requirements for the project, including the responsible agencies and reporting frequency.

27. Training (Section E of the EMP). This section of the EMP describes the training program for environmental safeguards, including the recipients and frequency of training.

28. Grievance Redress Mechanism (Section F of the EMP). This section of the EMP identifies the mechanisms to receive and manage any public environmental and/or social issues which may arise due to the Project.

29. Costs (Section G of the EMP). This section of the EMP describes the estimated costs for EMP implementation over 5 years. The cost estimates in the EMP include the costs for the mitigation measures, training, and monitoring.

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IV. ENVIRONMENTAL MANAGEMENT DURING THE REPORTING PERIOD

30. This section summarizes the progress made to implement the project EMP during the current reporting period.

A. Institutional Arrangement

31. EA/PMO environment officer. Shanxi Provincial Government is the executing agency (EA). A Project Leading Group (PLG) has been established to help guiding the project. The PMO established by the provincial government holds overall responsibility for supervising the mitigation measures implementation and reporting to ADB. The PMO is also responsible for replying to petitions and/or complaints from the affected people in the project area. Mrs Li Xiaojuan has been designated as PMO environment officer.

32. IA/MPMOs/CPMOs environment officer. As the implementing agencies, 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 district/county. The district/county governments (CPMOs) will be responsible for ensuring the implementation of the specific mitigation measures in cooperation with PACs as prescribed in the EMP. Each MPMO and each CPMO has designated an environment officer (Table IV-1).

33. PACs environment person. Each PAC will be responsible for (i) implementing the EMP and developing further implementation details; (ii) supervising their staff and contractors’ implementation of mitigation measures during construction; (iii) implementing training programs for construction crews; (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 CPMOs. All PACs have designated environment person (Table IV-1).

34. Loan implementation consultant-Environment Safeguard Specialist (ESS). The ESS will advise the PPMO, MPMOs, CPMOs, contractors, and construction supervision companies on all aspects of environmental management and monitoring for the project. The ESS will (i) assist in updating the EMP and environmental monitoring program, as needed; (ii) supervise the implementation of the mitigation measures specified in the EMP; (iii) support the PPMO MPMOs and CPMOs to prepare the semi-annual EMP monitoring and progress reports in English and Chinese and submit them to ADB; (iv) provide training to the project agencies on the PRC’s environmental laws, regulations and policies, ADB’s Safeguard Policy Statement (SPS, 2009), EMP implementation, and GRM in accordance with the training program; (v) identify any environment-related implementation issues, and propose necessary corrective actions; and (vi) undertake site visits for EMP inspection as required. Currently environmental specialist Mr. Zhang is ESS of the Project.

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35. Loan implementation consultant - Water Resource Specialist (WRS). The WRS will (i) review the status of water resources use of all 19 PACs ;(ii) facilitate meetings with the PACs and provincial and local bureaus for water resources and environment protection; (iii)based on these initial assessments, identify the PACs which are the highest priority for water resources management and monitoring; (iv) facilitate the preparation of water management plans (WMPs) by each PAC; (v) the WMPs will initially focus on the existing PAC facilities, and extend to the new facilities as they are completed; (vi) the WMPs will be presented as user-friendly practical manuals with step-by-step guides for PACs to increase water use efficiency and improve their resilience to water shortages and drought; (vii) identify simple and cost-effective water meters (and other equipment if needed) that are locally available in the PRC; (viii) guide the PACs in the installation of the water meters; (ix) begin piloting the WMPs, including the monitoring program, at the existing PAC facilities. Currently water resource specialist Mrs Zhang Xiying is the WRS of the Project.

36. Environment person of construction supervision companies (CSCs). Environment persons of CSCs will have the principal responsibility for observing contractor construction activities, and for ensuring that those activities are accomplished in compliance with the Project's environmental requirements, specifications, goals and objectives. They will ensure coordination at field level with representatives of government agencies in charge of EMP supervision as well as those in charge of control and monitoring activities. During this reporting period, no CSC has been recruited.

37. Environment person of contractors. An environment person will be appointed by each Contractor to be responsible for the implementation of environmental mitigation measures and internal monitoring. During this reporting period, no construction has been initiated and no environment persons has been appointed.

38. Environment monitoring agency (EMA). The environment performance of the project will be verified by external environmental monitoring agencies (EMA). The EMAs will be contracted by the PACs. It has been planned that each PAC will contract one EMA. The EMAs will conduct the external monitoring of EMP implementation. During reporting period, no EMA has been recruited.

39. Table IV-1 lists the environment person of PMO, MPMOs, CPMOs, PACs.

Table IV-1 PMO and PACs Safeguard Staff Environment and Social）

No. City Name County Name Project Agribusiness Company / Name Cooperative

1 Changzhi Hou Jiaxin Qin county Wang Yan Shanxi Qinzhouhuang Millet Group Co., Li Renyu Ltd.

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No. City Name County Name Project Agribusiness Company / Name Cooperative

2 Datong Li Xiaodong Guangling Yang Haixia Guangling Kitano Edible Fungus Co., Chai Yushan Ltd.

3 Jinzhong Zhou Feng Heshun Song Baozen Heshun County Lvhe Ecological Li Wuyan Agriculture & Livestock Development Co. Ltd.

4 Linfen Li Zhiqing Quwo Zhu Xiaoyu Quwo Lvheng Agricultural Development Duan Wei Co., Ltd.

5 Lvliang Li Qing Liulin Liu Nulian Liulin Fuzhongyuan Agricultural Zhang Zhiping Development Co., Ltd.

6 Shilou Shilou Shude Jujube Industry Co., Ltd. Wang Liming

7 Yuncheng Pan Jishan Wei Hong Shanxi Jinglong Group Livestock Huang Jianyun Yonghong Products Development Co., Ltd.

B. Implementation of the project mitigation measures

40. Implementation of the mitigation measures in the EMP is summarized in Table IV-2. This table is the same as Table EMP.2 of the EMP but has 2 additional columns, to summarize the implementation status and compliance for each listed mitigation measure within the reporting period. Due all of the subproject are still in design and approval stage, this table only include the implementation of measures for Pre-construction and Construction Preparation Stages.

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Table IV-2 Project impacts, mitigation measures, and implementation status

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

PRE-CONSTRUCTION PHASE

1.1 a. Public Complete public consultations for two PACs (for EIA PPMO, Not applicable as YES Detail consultatio which consultations were not conducted during design the two ns the project preparation phase): Shanxi CPMO subprojects have Design Tianzhirun Date Processing Co., Ltd., and instit , ESS been removed Stage Shanxi Xinjiang Vegetable Industry utes, from the project Development Co., Ltd. The detailed technical PAC designs should reflect the findings of the s consultations, as needed.

b. • Guangling Kitano Edible Fungus Industrial PAC CPMO Wastewater YES Wast Development Co., Ltd.: ensure the s, s, treatment ewat wastewater treatment designs in DEA are DIs, PPMO designs have er included in the detailed engineering designs; EIA , ESS been included in treat Instit detail ment • All other PACs: ensure that all wastewater ute engineering desig management measures and specifications in designs of the n and the DEAs are addressed, including new or Guangling Kitano dispo upgraded WWTPs and emergency overflow subproject. All sal ponds. This includes pretreatment facilities if wastewater discharging to central sewerage systems. management Verify design and performance parameters measures and of existing facilities. specifications for other PACs have been addressed

c. Manure Prepare and submit to PPMO details of the PAC PPMO Manure YES treatment design, management and monitoring of biogas s treatment have arrangeme systems or manure fermentation systems to been arranged nts ensure compliance design standards and with standards for discharge and use as organic fertilizer (GB7959-87).

For Hongchang PAC:

Ensure design of temporary manure storage pit in DEA is included in the detail engineering design.

d. For Hongchang PAC PACs, CPMO The Hongchang YES Storm DIs s, subproject was water Design water storage tank to collect storm water PPMO cancelled collectio and wastewater discharged from boiler house , WRS n and for reusing for landscaping and road sprinkling. Water storage storage tank designed

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Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

e. PACs will obtain a water use permit for their PACs WRBs, PACs obtained YES Water water inputs from the local Water Resources PPMO water extraction extracti Bureaus – providing all details required for that , WRS permit on application to the WRB permissi on

f. Climate Ensure that the measures below are addressed PACs, PPMO, Climate change YES change as far as possible in the detailed engineering DIs adaptation and designs. This includes specific features for CPMOs, mitigation adaptatio mitigation and adaptation, related to energy ESS measures are n and efficiency and resource use. being mitigation incorporated in to measures • Design storm, flash floods, and heat design protection and/or prevention measures for chicken breeding houses Insulation material applied and • Increase storm water pipes capacity by 10% ventilation system to account for projected increase in installed to reduce precipitation intensity heat stresses

• Good insulation and ventilation to reduce LED lighting applied potential heat stresses to workers for all farms;

• Design with sufficient drainage capacity for Cooling equipment the storage and other related facility to avoid with high energy damages from flash floods efficiency adopted • Develop robust disease control measures and procedures

• Develop more effective animal feeding and management procedures

• Help the food ingredient producers, mostly local farmers, for maintaining normal raw material supply by adapting climate change

• Develop improved management plans to minimize the cold storage time for food and ingredients

• Using LED lighting for all farms

• Pig manure biogas generation

• Fermentation of chicken manure for organic fertilizer

• Design the chicken breeding houses and other facilities with sufficient energy saving measures, including insulation of walls, upgraded heating, lighting, ventilation systems, and adopting more energy efficient

19

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

equipment

• Design with improved insulation

• Adopt cooling equipment with high energy efficiency

g. Air For Shude and Hongchang PAC: PACs, PPMO, Gas-fired boiler YES emission DIs designed control • Conduct feasibility study on using gas-fired CPMOs, boiler instead of currently proposed biomass ESS Air emission boiler. control designed

• Ensure air emission control designs in DEAs are included in the detailed engineering designs.

h. Landfill For Hongchang PAC PAC, DI PPMO, The subproject YES wells for was cancelled. disposal of • Ensure two landfill wells design in the DEA CPMO, chicken are included in the detailed engineering ESS Two landfill wells corpse design were included in preliminary design. Detail design is ongoing

1.2 Establish Contract two external specialists, one ESS and PPMO ADB ESS (Mr. Zhang YES Project and one WRS Defa) and WRS environ implement (Mrs. Zhang mental environme Xiying have been Support ntal mobilized since support March 2018 positions Contract environmental monitoring agencies in PAC CPMO No EMA has No each county been contracted.

Appoint PPMO Environmental and Social PMO PPMO Mrs. Li Xiaojuan YES Officers from PPMO has been appointed as Environmental and Social Officer since February 2018

Appoint County Environment and Social CPMOs PPMO Each County YES Officers PMO has appointed one environmental

20

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

officer since February 2018

Assign Environment and Social officers at each PACs CPMO, Each PAC has YES PAC ESS appointed one environmental officer since February 2018

1.3 Update Update mitigation measures defined in this EMP DIs, ESS, The EMP has YES Constru EMP based on the detailed design, including re- ADB been updated ction disclosure (if needed) of EMP on ADB website PACs, during Preparat PPMO preparation of ion the Addendum Stage IEEs for project scope change

Constructi • Prepare environment section in the terms PACs PPMO, Environment YES on plans of reference for construction bidders (using ESS section has been and included in document • Prepare environmental contract clauses DIs) bidding s for construction from EMP Tables EMP.2 documents –EMP.8 Environmental contract clauses has been included in civil work contract

Establish • Identify GRM entry points and brief them PACs, PPMO, GRM entry points YES and on their role ESS have been identified publicize CPMOs and publicized at GRM • Publicize GRM entry points, people and construction site contacts at each PAC construction site, in and village local newspapers, websites, and village committee committee and community premises

Constructi • Prepare construction plans for each PAC, Head PACs, Construction site YES on site including (i) measures to avoid plans was contract PPMO, planning disturbance to existing operations; (ii) prepared. or for ESS inclusion of relevant actions from this table each EHSO person was • Nominate an Environmental, Health and PAC nominated Safety Officer (EHSO) in contractors’ team Site EHS plan was • Develop site environmental health and developed safety plan for approval by the PAC.

Constructi • If contractor will use tankers to supply PAC, PPMO, The PACs YES on water construction water: obtain approvals, ESS, obtained contract use submit to PPMO construction or WRS

21

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

arrangeme • If water from on-site well(s) is to be used, water extraction nts obtain approvals, submit to PPMO permit

Environme Provide training to contractors on their roles and ESS PPMO Environment YES ntal responsibilities in EMP training training workshop was held in May 2018. No formal training workshop was conducted during this reporting period. Informal training was provided through phone call and WeChat communication

CONSTRUCTION PHASE

2.1 Soil Constructi Before construction, prepare a Site Drainage Contract CPMOs, Site drainage YES Erosion on related and Soil Erosion Management Plan, with the ors, ESS and soil erosion following: management soil PACs plan developed erosion • Maintain slope stability at cut faces by impacts erosion protection measures e.g. terraces and silt barriers

• Prior to earthworks, construct berms or drainage channels around the perimeter of the spoil and borrow sites, to capture soil runoff and direct rainwater away

• Plan and implement construction in staged sections, with one section completed and stabilized before beginning the next

• Stabilize all cut slopes and other erosion- prone working areas. Protect erosion- prone sites with sand bags

• Stabilize all earthwork disturbance areas within 30 days after earthworks are completed

• Identify and demarcate the sites for borrow pits and spoil disposal sites. Ensure all sites are within the boundaries of the existing PAC subproject land

• Minimize open excavation areas during

22

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

trenching and river regulation activities

• Use appropriate compaction techniques for pipe trench construction

• Provide temporary detention ponds or containment to control silt runoff

• Construct intercepting channels and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage or open ground for watering the vegetation.

• Limit construction and material handling during periods of rains and high winds

• Properly slope or re-vegetate disturbed surfaces e.g. pipeline trenches and cut banks

• Landscaping will only use native plant species

• Construction camps and storage areas will be located to minimize land area required

• Coordinate with local authorities and communities for the movement of heavy vehicles and machinery, especially along narrow roads, to avoid traffic jams and risks to community safety. See also Item 2.9

2.2 Constructi • Construction water. Obtain water from Contract CPMOs, The PACs YES Water on water approved source. No groundwater shall be ors, obtained WRS extracted without extraction construction Resourc and WRS, permits/approvals (see Item 1.3) water use permit. es preparatio PAC n of • WMPs. Prepare WMPs, including water The WMPs have monitoring program, for each subproject. been prepared WMPs Initiate pilot monitoring at existing PAC by the WRS. facilities. Program to be extended to the Car washing new ADB-funded facilities in operation water was used phase. See TOR for WRS (Section H of for dust EMP) for details depression • Car washing water should be reused for dust depression after sediment.

2.3 Pollution of • Develop actions for control of oil and other Contract CPMOs, All contractors YES Water surface dangerous substances ors, ESS Implemented

23

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

pollution water and • Collect construction wastewater in PACs groundwater sedimentation tanks, retention ponds, and filter tanks to remove silts and oil

• Equip sites for washing of machinery with collection basins and sediment traps

• Locate fuel storage, maintenance workshops and vehicle cleaning areas >500 m from water bodies

• Locate the storage facilities for fuels, oil, and other hazardous materials in secured areas on impermeable surfaces, and provided with bunds and cleanup installations

• Contractors’ fuel suppliers must be licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods)

• Minimize sediment / soil runoff into streams or rivers from earthworks, including sediment traps

• Locate labor camps >500 m from nearest water bodies

• Install portable toilets and on-site wastewater pre-treatment systems at construction camps along with proper maintenance protocols

• Monitor water quality during construction as per the EMP

2.4 Air Local air • Spraying water daily on construction sites Contract CPMOs, All contractors YES Quality pollution where fugitive dust is being generated ors, ESS implemented

from • Locate asphalt plants and mixers >500 m PACs constr downwind from the nearest residential areas uction and other sensitive receptors activiti es • Dust suppression near sensitive receptors e.g. schools, hospitals, residential areas

• Store petroleum or other harmful materials in appropriate places and covering to minimize fugitive dust and emission

• Cover materials during truck transport,

24

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

especially fine materials, to avoid spillage or dust

• Ensure vehicle and machinery emissions comply with PRC standards of GB18352- 2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005

• Timely monitoring of air quality and inspections during construction, as defined in the project EMP.

• Unauthorized burning of construction waste material shall be subject to penalties for the Contractor, and withholding of payment

• Site greening per DEA requirements to assist with air quality and odor mitigation

• Implement emergency air pollution control measures (such as suspend construction, limit construction hours) required by local government during heavily polluted weather.

2.5 Construct • Ensure that noise levels from equipment Contract CPMOs, All contractors YES Noise ion and machinery conform to PRC standard ors, ESS Implemented related of GB12523-90, Properly maintain PACs noise construction vehicles and machineries to impacts minimize noise

• Apply noise reduction devices or methods for high noise equipment operating within 200 m of sensitive sites e.g. schools, villages, residential areas

• Locate high-noise activities (e.g. rock crushing, concrete-mixing) > 1 km from sensitive areas

• Prohibit operation of high-noise machinery, and movement of heavy vehicles along urban and village roads, between 21:00 and 07:00, in accordance with provincial regulations

• Place temporary hoardings or noise barriers around noise sources during construction

• Mobile sound barriers will be used for sensitive receptors during construction

25

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

• When passing through villages, construction trucks will reduce speed to no more than 20 km/h

• Monitor noise levels at sensitive receptors during construction

• Conduct regular public consultation to identify any community concerns.

• If noise standards are exceeded, and/or community feedback indicates noise disturbance, then: (i) check equipment, construction conditions, and timing; (ii) including the times of construction utilizing high-noise machinery, shall be checked, and mitigation measures shall be implemented to rectify the situation

2.6 Potential • Prohibit excavation, stone-crushing and Contract CPMOs, Implemented YES Vibratio vibration compaction operations at night; ors, ESS n impacts • Consult communities prior to large PACs earthworks.

• Avoid sensitive timing e.g. exams at nearby schools or festivals

2.7 Potential • Minimize vegetation removal through Contract CPMOs, Implemented YES Ecology ecological detailed construction planning ors, ESS impacts • All sites which are cleared for temporary PACs construction purposes, will be re- vegetated

• For sites to be rehabilitated, first remove and stockpile the top soil

• Prior to construction, demarcate vegetation and habitats as no-go zones for workers and machinery.

• Workers will be trained to minimize disturbance to and protect wildlife

• Revegetate a site using the original top soil, and, native plant species

• Use native plant species for all site rehabilitation, to maintain genetic fitness and reduce the risk of introducing non- local and invasive species

• Remove and/or prevent standing or

26

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

stagnant pools of water, to reduce the risk of water-borne diseases; cover water storage equipment;

• Upon completion of construction, drain any sediment traps and pools

2.8 Protection • Prepare chance find procedure that Contract CPMOs, Implemented YES Physical of complies with PRC regulations. Including: ors, CACH, Chance find cultur chance • Immediately suspend works PACs ESS procedures al finds developed. No reso • Notify cultural heritage bureau, PPMO, cultural relic was urces and CPMO found. • Wait for bureau to inspect site and issue next steps

• Resume site work only after clearance of the bureau

2.9 Constructi • Traffic management. Prepare traffic Contract CPMOs, Implemented YES Healt on safety control and operation plan, to be approved ors, ESS The contractors h and by local traffic management PACs prepared and safet administrations before construction. y for implemented work • Underground facilities survey and COVID-19 ers protection. Plan the pipeline construction prevention and and to minimize disturbances to utility services. control plan and emergency response general • Information disclosure. Inform villagers, plan. No public residents, businesses in advance through construction safety media and information boards at issue occurred construction sites, including dates and during reporting duration of expected disruption period • Construction site protection. Install signs at construction sites in view of the public, informing people about the GRM and warning people of safety hazards

• Prohibit the use of heavy machinery at night.

• Secure all sites, e.g. with fencing, to prevent public access

• Closely regulate the use of explosives. Ensure staff are experienced and have relevant certifications

• Prepare and implement COVID-19 prevention and control plan and

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Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

emergency response plan

Worker Prepare an environmental, health and safety Contract CPMOs, Implemented YES safety management plan which will include the ors, ESS following: All contractors PACs prepared and • Provide a clean and sufficient supply of implemented health fresh water for construction sites and and safety camps management plan, including the one for • Provide adequate number of latrines at COVID-19 construction sites and work camps, and prevention and ensure that they are cleaned and control. maintained in a hygienic state No workers safety • Establish garbage receptacles at issue during construction sites and camps, and reporting period. periodically clear these to prevent outbreak of diseases

• Provide personal protection equipment to comply with PRC regulations e.g. safety boots, helmets, gloves, protective clothing, goggles, ear plugs

• Establish emergency preparedness and response procedures. Establish emergency phone link with hospitals

• Install fully equipped first-aid base at each construction camp

• Implement a records management system to store records of loss or damage of public utilities, local property, occupational accidents, diseases, and incidents. Include these data in progress reports to the CPMOs

• Occupational health and safety matters will be given a high degree of publicity to all work personnel and posters will be displayed prominently at construction sites

• Explosives. Comply with national regulations and procedures, including for secure storage, handling by qualified personnel, procedures for the planning, pre-site clearance, and post-site

• inspection before after the use of explosives

• Train all staff in sanitation, general health

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Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

and safety, and work hazards. Conduct awareness program for staff and communities about HIV / AIDS and other communicable diseases

• Implement core labor standards. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men; (iii) pay equal wages for work of equal value, and pay women’s wages directly to them; and (iv) not employ child or forced labor.

• Prepare and implement COVID-19 prevention and control plan and emergency response plan

OPERATIONAL PHASE

3.1 a. Impact • Finalize the water management plans PACs, CPMOs, Not yet due Not Water on water (WMPs) prepared during the construction WRS yet WRBs, phase for the existing PAC facilities, by due resources ADB extending the designs to the new ADB- funded facilities. This includes: (i) implementation of project design measures for improved water use efficiency; (ii) extension of the pilot water use monitoring program to the new ADB- funded subproject facilities (Item 2.2). Draft WMPs to be reviewed and endorsed by the PPMO and WRBs.

• Initiate the water use monitoring program in the new subproject facilities. Including: purchase and installation of water meters; monitoring at the locations and frequency described in the program manual (Item 2.2). See TOR for WRS (Section H of EMP) for further details

• Install water metering devices to monitor water use

• Conduct periodic water quality monitoring (Table EMP.4)

• Prepare and implement WMPs

• For Wei’erfu subproject, a 3,000m3 pool will be constructed to store water circulated for cooling;

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Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

• For Shude subproject, waste water from processing, pure water preparation should be reused for dust depression of the PAC.

For Hongchang PAC

• Storm water should be collected and reused for landscaping and dust depression

• Wastewater from softening water system of boilers should be reused for dust depression

b. • Ensure that all wastewater streams receive PACs CPMOs Not yet due Not Wastewat the recommended level of wastewater yet er treatment by individual PAC. Ensure that due managem existing WWTPs have sufficient capacity ent and operational condition for proposed expansions

• For Wei’erfu PAC: wastewater from washing of instrument, culture vessels, rotating bottles, and storage tanks, fermentation wastewater from vaccine production process, wastewater from washing of animal room and wastewater generated during quality inspection should be sterilized and disinfected for 1 hour with 121 steam at high temperature and pressure disinfection tank, before piping to WWTP℃ of the PAC.

• For Wei’erfu PAC, construct WWTP with a capacity of 150m3/d and treatment technique of Hydrolytic acidizing + A2O + chlorination”.

• For Shude PAC, construct a WWTP with “hydrolyze + bio-oxidation” technique adopted

• Properly maintain the operation of WWTPs to ensure effluent water quality meet the Class B standard set in Table 1 of “Wastewater Quality Standard for Discharge to Municipal Sewers (GB/T31962-2015)”

30

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

c. Impact • Separate storm water drainage system PACs CPMOs Not yet due Not on and sewerage collection system (store the yet groundwat storm water on site for use) due er quality • Dot not build any open trenches

• Install anti-seepage measures for drainage vessels and cement pipes, to convey wastewater and prevent overflow and infiltration

• Design all facilities (e.g. storage facilities, pre-treatment tanks, digesters, settling tanks, drainage pipes, digester storage tanks, rain water collection tanks) with high quality materials and monitor for leaks

3.2 Use of • Do not use agri-chemicals on the PRC List PACs CPMOs Not yet due Not Agricult fertilizers of Forbidden and Restricted Agriculture yet ural and Chemical in 2016 and/or listed as due chemica pesticides hazardous by the WHO ls • Pesticide application rates to comply with the PRC’s Action Plan for Reaching Zero Growth of Fertilizer and Pesticide Application till 2020 and are designed to target and reduce pesticide usage.

3.3 Manure at • Minimize the manual handling of manure PACs CPMOs Not yet due Not Manure animal from the animal pens to the treatment yet raising facilities through wet and dry manure due Manage facilities handling systems as possible ment • Provide health and safety equipment and training to workers tailored to the work tasks

• For manure treatment in biogas facilities, proper management of produced gas and biogas residuals to minimize risks. Maintain gas storage facilities to under 50t to keep risk level at Level 2 under PRC regulation Environmental Risk Assessment Guidelines for Project Construction

• (HJ/T169-2004)

• For reuse of biogas liquid and solid residuals on farmland, ensure that sufficient land and appropriate crops are utilized to prevent potential groundwater contamination. Best management 31

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

practices for land application of these residuals will be applied to all facilities with residual reuse

• For manure fermentation for use as organic fertilizers, ensure that surface runoff is diverted around storage piles and runoff from the piles are property treated to avoid surface or subsurface pollution. For reuse of fermented manure on farmland, ensure that sufficient land and appropriate crops are utilized to prevent potential groundwater contamination. Best management practices for land application of the fermented manure will be applied to all facilities with residual reuse

• Ensure that all use of agricultural waste products as organic fertilizer complies with the PRC’s Organic Fertilizer Standard (NY525-2012), including application rates, and content and quality of the source waste

3.4 Other • As far as possible, re-use organic waste PACs CPMOs Not yet due Not Other waste from agricultural production and yet Solid managem processing as animal feed and/or fertilizer. due Wastes ent For Shude subproject, waste jujube will be re-used as fertilizer; rice bran will be re- used as animal feed and filter residue from honey processing workshop will be sold out for resource utilization.

• Sludge from Shude and Hongchang WWTPs will be used for organic fertilizer;

• For Wei’erfu subproject, the laboratory chemicals, the infectious scrapped materials produced in the fermentation workshop, the animal faeces and corpses produced in the animal house should be sterilized at high temperature, and then be treated as hazardous waste together with the sludge from Wei’erfu WWTP .For disposal of hazardous substances, including laboratory chemicals, contract a specialized company certified for the collection and disposal of such substances

• For Hongchang subproject, .for disposal of hazardous substances, including medical waste contract a specialized company

32

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

certified for the collection and disposal of such substances

• Waste packaging materials sold to waste collection station for recycling

• Dispose general solid waste in landfills

• Dispose dead livestock in compliance with HJ/T 81-2001): (i) disposed in a timely manner; (ii) do not sell or use dead livestock as feed for recycling; (iii) dispose by incineration method; and (iv) if the farm is unable to establish an incinerator, then at least two sanitary landfill wells will be outfitted to dispose the dead livestock

3.5 Air Air • WWTPs will be constructed underground Local PPMO, Not yet due Not quality pollution, and all of the tanks will be and SPG yet Odor and covered. .Maintain operations in due county safety accordance with PRC regulations and in govern (NH3 and compliance with Class 2 ambient ment H2S) standards

For Shude subproject

• Millet flour processing workshop will be fully closed.

• Install gas collecting facilities in the cleaning, rice hulling and milling processes respectively. The waste gas will be emitted through a 15m high stack after being treated by bag dust collector.

• The biomass fired boiler is equipped with a low nitrogen combustion device, and the flue gas is discharged by a 30m high exhaust cylinder after being treated by a bag dust collector.

For Wei’erfu subproject:

• Fermentation waste gas from workshop, odor from animal house will be treated with activated carbon adsorption filter and then emitted through 15m high smokestack.

• Canteen oil fume will be collected and treated by electrostatic oil fume purifier

For Hongchang PAC

• The biomass-fired boiler is equipped with

33

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

a low nitrogen combustion device, and the flue gas is discharged by a 30m high exhaust cylinder after being treated by a bag dust collector.

• Add microbial agent additive to feed to promote conversion of ammonia nitrogen into protein thus reduce ammonia nitrogen emission.

• Install and operate ventilation devices for chicken houses.

• Regular spraying deodorant in manure storage pits and waste water treatment station.

• Canteen oil fume will be collected and treated by electrostatic oil fume purifier.

3.6 Noise • Maintain operations in accordance with Local PPMO, Not yet due Not Noise impacts PRC regulations and in compliance with and SPG yet Class 2 ambient standards due county govern ment

3.7 Chemical • Management of level 2 hazard under PACs CPMOs Not yet due Not Cooling storage HJ/T169-2004 to be implemented yet systems at cold due , gas storage • All facilities to be designed and operated in compliance with “Hazard Level 2” of facilities systems HJ/T169-2004, including the following: , and biogas  Plant layout includes emergency rescue facilities and emergency evacuation shelter

 Automatic monitoring, alarm, emergency shut-off and emergency shutdown systems

 Automatic gas detection and alarm systems

 Explosion/hazardous area zoning of site and fire alarm and fire management systems

 Emergency Plan

34

Item Issue Mitigation / Safeguard measure Agency Inspect Implementation In status, issues complia identified and nce? corrective actions

3.8 Comm • Ensure safe working environment for staff PACs C Not yet due Not Healt unity P yet h and and • Prepare site environmental health and M due safet worker safety procedures. These will comply with O y health the PRC’s Labor Law, Labor Contract s, and Law, and Special Rules on the Labor S safety Protection of Female Employees S S • Ensure that: (a) all reasonable steps are O taken to protect any person on the site from health and safety risks; (b) the construction site is a safe and healthy workplace; (c) machineries and equipment are safe; (d) adequate training or instruction for occupational health and safety is provided, especially for new workers; (e) adequate supervision of safe work systems is implemented; and (f) means of access to and egress from the site are without risk to health and safety

• Issue staff with protective gear appropriate to their tasks

• Regularly check electrical connections

• Fence off and secure the openings of water storage tanks at ground level

• Apply health and safety protocols for staff in the handling, application and clean-up of agricultural chemicals, to comply with the PRC’s Regulations on Safe Management of Hazardous Chemicals (Decree 591)

• Implement safeguard measures for “Level 2” environmental risk for gas storage systems (see above)

ADB = Asian Development Bank, CACH = County Administration of Cultural Heritage, DEA = domestic environmental assessments, DI = design institute, EIA = environmental impact assessment, EPB = environment protection bureau, EMP = environmental management plan, ESS = environment safeguard specialist, GRM = grievance redress mechanism, PAC = project agribusiness companies or cooperatives, , PPMO = provincial project management office, SSSO = Shanxi Safety and Security Office, SPG = Shanxi Provincial Government, WMP = water management plan, WRB = water resources bureau, WRS = water resource specialist.

35

41. Based on Table IV-2, of the 39 mitigation measures proposed in the EMP, 1 mitigation measure related to public consultation before construction is to be cancelled due to the two PACs planned to remove from the project, 27 measures have been implemented, 1 measure related to contract with EMA was not implemented, 10 measures are to be implemented because they are not yet due as the mitigation measures is for the stage of project operation.

42. Conclusions and next steps. During reporting period, institutional strengthening appointments are complied with the EMP in general. Most of the mitigation measures for the construction stage have been implemented during construction except no EMA was recruited. The next steps include:

 All PACs recruit EMA one month before subproject civil work construction.  Shilou Shude and Guangling Kitano conduct external environment monitoring as per EMP requirements.

C. Implementation of the project monitoring program

43. According to ADB requirement, project mitigation implementation and impact monitoring should be conducted during both the construction and operation stage. The following environment safeguard monitoring was conducted in the reporting period: internal monitoring, external monitoring and compliance monitoring.

44. Internal monitoring. During reporting period, internal monitoring has been performed including: (i) regular site inspection by the CSC on a daily basis. (ii) regular site inspections by Environment Officers of PACs with assistance of CSCs on a weekly basis. (iii) random site inspections by PPMO, MPMO and CPMO. The internal monitoring activities undertaken include visual inspection of (i) dust mitigation measures, equipment maintenance; (ii) garbage and construction waste management; (iii) soil erosion and re-vegetation; (iv) camp hygiene, safety, availability of clean water, emergency response plans; (v) construction wastewater control and domestic wastewater management (vi) COVID-19 prevention measures implementation. The internal monitoring results have been prepared by the CSCs and submitted to PACs for review on a monthly basis during the reporting period. In general, the internal monitoring is complied with the EMP.

45. External monitoring. No environmental monitoring agency has been contracted during reporting period. The Shilou Shude PAC has consulted with two monitoring agencies including Shanxi Huadu Environment Monitoring Company ad Shanxi Taizhihe Environment Monitoring Agency, and select and contract one of them to conduct external monitoring for the subproject. It is expected the contract will be awarded by the end of July 2020 and the first external monitoring report will be conducted in early of August 2020. The Guangling Kitano PAC planned to contract Shanxi Qingze Sunshine Environmental Technology Company to conduct external monitoring. It is expected the first monitoring will be initiated in early August 2020.

36

46. Compliance monitoring. The ESS was mobilized in March 2018. During the reporting period the ESS: (i) conducted no visit to the project sites due to impact of COVID-19 outbreak; (ii) assisted the PMOs in on-line environment training to PACs and construction contractors; (iii) reviewed project progress and compliance with the EMP; (iv) assisted the PMO Environment Officer in preparing semi-annual progress report to ADB; (v) held discussions with the PMO Environment Officer and PACs on the establishment of the GRM and implementation of the EMP; and (vi) assisted the PMO Environment Officer in preparing the third semi-annual EMR to ADB.

47. Conclusions and next steps. During the reporting period, no external environmental monitoring was conducted. Next steps include:

 All PACs especially those civil work constructions have already initiated recruit EMA. The monitoring should follow the monitoring plan defined in Table EMP.5 of the EMP.  PPMO and should strengthen the supervision on the implementation of external environment monitoring through the MPMOs and CPMOs.

D. Public consultations and grievance redress mechanism

48. Information disclosure. Information disclosure is achieved primarily through the bulletin boards erected at each construction site, as required by Chinese law. The bulletin boards contain a description about the project, layout map, construction safety, labour standards, environmental and health standards, name of the contractor(s) and names and contact information of the on-site managers and company executives. Public complaints can also be lodged through the 24-hour hotlines of the municipal and county EPBs in the three project cities (“12369” – common number country-wide). The municipal and county EPB also have online complaints gateways in their webpages. These channels are assessed to be adequate. As of today, no formal public complaint has been received.

49. Public consultations. Public consultation conducted includes EIA public opinion survey, socioeconomic and AP surveys, public consultation meeting, questionnaire survey and site visits organized by the PACs, Design Institutes and EIA institutes during the project preparation period. No public consultation was conducted during this reporting period.

50. Grievance redress mechanism. The PMO and PACs environment persons as shown in Table IV-1 are act as entry points of GRM. The contact information of the environment person was shown in the bulletin board at construction site. So far, except for asking about the project information by the local residents, the PACs and PMOs have not received any petitions and/or complaints since the GRM started performing in February 2018.

51. Conclusions and next steps. No grievances were received during reporting period. Next steps include: 37

 If there are any petitions and/or complaints, the related agencies will make records in accordance with Table IV-3.

38 Table IV-3 Summary Record of Petitions and/or Complaints

Types of Na date grievance was date grievance was date of follow up petitions me lodged with resolved by and/or or complai scope num N nts(oral of ber Villa Villa rem P P P A o. or grieva of ge Contr EP ge Contr EP Contra EP ark A A A D written) nces affe comm actor Bs comm actor Bs ctor Bs C C C B cted ittee ittee pers ons

E. Training and capacity building

52. There is no environmental training workshop conducted during reporting period. ESS conducted environmental training focusing on (i) project environmental management to the PMOs; (ii) environment monitoring to the PACs; and (iii) implementation of mitigation measures to the contractors; and environmental safeguard documents preparation to the PMOs via various phone call and email communications.

53. Conclusions and next steps. On the training workshop conducted in 2018. The training material has been delivered to all participants. With the progress of subprojects, new contractors and CSCs will be contracted. EMP implementation, groundwater awareness training will be held in the following reporting period according to the project implementation progress

F. Implementation of health and safety plan in response to COVID-19

54. In response to the official letter from ADB requests necessary action against COVID- 19 risk, the PPMO prepared a project level COVID-19 risk assessment with assistance of ESS (Appendix 3) All contractors prepared health and safety. These H&S plans have been 39

endorsed by the PPMO. Summary COVID-19 risk assessment and implementation of the H&S plan are presented below.

1. COVID-19 impact on the Project

55. The construction was suspended since the outbreak in accordance with the requirements of the national epidemic prevention policy. The emergency response level of public health emergencies in Shanxi Province was downgraded from level 1 to level 2 in 26 February, 2020, and further downgraded to level 3 in 19 March 2020. Therefore, the project began to restart gradually.

• Due to the national wide lockdown in PRC in January and February 2020, all of the project construction sites were closed until 29 March 2020. The COVID-19 caused one month delay comparing with the planned construction schedule.

• The epidemic has prevented construction personnel and laborers from being in place on time. Strict personnel movement control measures have been implemented by various localities have led to a significant reduction in the number of workers moving across regions and provinces in the short term. Construction personnel may be in short supply for a certain period of time, which will hinder the progress of the project. In addition, at early stage of reopening of construction site in March 2020, workers from other places were quarantined for 14 days, and the quarantine period has forced the delay of some projects.

• The epidemic has led to an increase in construction costs. After the national epidemic ended, a large number of projects were restarted. The price of construction materials and equipment has risen, and the cost of transportation and logistics has risen. The shortage of human resources and equipment will also cause the cost of employment to increase rapidly. In addition, the various disinfection, protective measures, and labor costs for the prevention and control of the epidemic also led to an increase in construction costs.

• At present, all counties in Shanxi Province are low-risk areas.

2. Development and Implementation of the Health and Safety Plan

56. Preparation. According to the provincial, municipal and local county regulations on Covid-19 prevention and control. The contractors implement the following measures:

• Developed H&S plan, develop H&S Plan including emergency response plan, setup institutional and responsibilities for H&S Plan implementation.

• Established register system. Implemented "one person, one file" management to 40

master the health status of each returning worker and family members and travel information during the Spring Festival holidays.

• Prepared sufficient epidemic protection materials. All contractors provided employees with protective articles such as masks, gloves, thermometers, hand sanitizer, disinfectant, alcohol and other disinfection articles, set up isolation rooms, and purchased emergency equipment such as protective clothing, goggles and medical equipment.

• Carry out comprehensive disinfection in the construction sites. Before the re- opening of construction site, cleaned up the construction sites, living and office areas in the project area according to the requirements of epidemic prevention and control.

• Arranged construction plan reasonably. The contractors rearranged the construction plan during the epidemic period; implement decentralized construction to reduce the aggregation construction area as far as possible.

57. Approval. Three days in advance of opening or re-opening construction sites, all contractors submitted following documents to county level Leading Group for COVID-19 outbreak prevention and control. Following documents were provided and approval have been obtained, including:

• Record form for opening or re-opening construction sites;

• COVID-19 outbreak prevention and control commitment

• COVID-19 outbreak prevention and control plan, and emergency response plan;

• Construction resumption plan (mainly including resumption time, number and source of returning personnel, construction plan, raw material procurement and product sales place, logistics and transportation, and epidemic situation

58. During reporting period, no management staff, construction worker that working on the project and nearby communities was affected by the COVID-19.

G. Costs of EMP implementation during the reporting period

59. The Table EMP.9 estimated the PPMO cost for EMP implementations. An estimate of total costs spent to date includes the following (Table IV-4):

Table IV-4 Cost Estimates in EMP and Actual Cost

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Item 2018 2019 2020 2021 2022 Subtotal

EMP Actual EMP Actual EMP Actual EMP Actual EMP Actual EMP Actual

Consultant – 100,800 100,800 100,800 100,800 100,800 100,800 100,800 100,800 504,000 302,400 ESS*

Consultant – 106,400 106,400 106,400 106,400 106,400 106,400 106,400 106,400 532,000 319,200 WRS*

GRM 1,800 1,800 800 800 800 800 800 800 5,000 3,400

Training program

EMP 42,000 42,000 42,000 21,000 42,000 21,000 84,000 84,000 implementation

Groundwater 30,000 30,000 30,000 30,000 awareness

Agriculture 30,000 30,000 30,000 30,000 extension

Humane treatment of 30,000 30,000 30,000 30,000 livestock

GRM 24,000 24,000 24,000 24,000

Environmental protection, 24,000 24,000 24,000 24,000 monitoring

TOTAL in 389,000 389,000 250,000 229,000 250,000 229,000 208,000 208,000 1,263,000 847,000 CNY

Note: * means funded by the ADB

60. Based on these estimates, the total amount spent to date for implementation of the EMP is approximately CNY 847,000.

H. Compliance with loan and project assurances

61. The loan agreement and project agreement between the government and ADB includes 9 assurances (or “covenants”) for environmental safeguards and/or related to environmental issues (Appendix 1). These relate to the timely and effective implementation of the EMP, as well as project-specific assurances tailored to the current project. Compliance with these assurances is a condition of the loan and project agreements. For the current reporting period: except the assurance that requires Tianzhuzui and Xinjiang PACs to conduct public consultation is not applicable as the two PACs would not participate in the project anymore, the other assurances are being complied with.

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I. Reporting

62. The project reporting requirements for environmental safeguards are summarized in Table IV-5 and comprise: i) progress reports from contractors and CSCs to the PACs, from PACs to CPMs and from CPMOs to PPMO; (ii) progress reports on external monitoring from an environmental monitoring agency to the PMO; (iii) environmental monitoring reports (EMRs) from the PMO to ADB.

Table IV-5 Project reporting requirements for environmental safeguards

Reports From To Frequency Comments

Construction phase

Internal monitoring Progress report Contractor PAC Regular All contractors CSC submitted monthly progress report

Internal monitoring Progress report PAC CPMO Quarterly The PACs submitted quarterly ESS reports to CPMO during reporting period

Internal monitoring Progress report CPMO PPMO Quarterly All CPMOs submitted progress reports to PPMO

External monitoring External EMA EPB Quarterly No external monitoring report PAC monitoring report CPMO prepared.

Compliance EMR (overall PPMO ADB Semi-annual 4 EMRs submitted monitoring progress of EMP including this one implementation) since project implementation

Acceptance report / Environmental Licensed EPB, Once; within 3 Not yet due audit report – acceptance acceptance EPD months of completion of report institute completion of facilities physical works

Operation phase

Internal monitoring Progress report PAC CPMO Quarterly Not yet due

Internal monitoring Progress report CPMO PPMO Quarterly Not yet due

Progress report ESS PPMO Quarterly Not yet due ADB External monitoring External EMA EPB Quarterly Not yet due monitoring report CPMO PAC Progress report Environmental PPMO, ESS ADB Semi-annual Not yet due progress report

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ADB = Asian Development Bank, CPMO = county project management office, EMA = environment monitoring agency, EPD = environmental protection department, EPB = environment protection bureau, ESS = environment safeguard specialist, PAC = project agribusiness company or cooperative, PPMO = provincial project management office.

63. The monthly internal monitoring reports have been prepared by contractors/CSCs. These reports were timely submitted to PAC. The PAC prepared quarterly environmental report and submitted to CPMO.

64. No EMA was contracted to conduct external environmental monitoring and no external monitoring report has been prepared.

65. Conclusions and next steps. Progress reporting from the PAC to PMOs, PPMO to ADB complies with the EMP. In general, the quality of the EMRs is improving. The next EMR will be for the period 1 July 2020 to 31 December 2020 and will be submitted to ADB on 31 January 2021.

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V. NEXT STEPS

66. Actions planned for next reporting period from 1 January 2020 to 30 June are listed in Table V-1

Table V-1 Environmental issues and Corrective Actions

Issue Action By When By Whom

Training The ESS provide training to PACs, During field visits ESS contractors and CSCs. The training will to construction focus on the implementation of the EMP sites especially to the Shilou Shude that will start construction during next reporting period and the PACs of Quwo and Heshun that went to trial operation.

Environmental PACs ensure the design institute to Design completion Design institute design incorporate all of the measures proposed in date the EMP into detail design PACs

PPMO and PACs monitor the progress of Design completion PPMO, PACs environmental design. date

Environmental Bidding document include environmental Bidding stage Tendering provisions into safeguards requirements company, PACs work contracts Incorporation of environmental clauses into civil work contracts

Acceptance report Quwo Lvheng and Heshun Lvhe to prepare Next reporting PACs of Quwo / audit report – acceptance report / audit report – period and Heshun completion of completion of facilities facilities

External Each PAC recruit one environmental One month before PACs environmental monitoring agency. Especially, civil work monitoring construction (i) The PACs of Heshun and Quwo that went to trial operation phase will conduct monitoring program defined for operation phase;

(ii) Shilou Shude that will start construction conduct monitoring following monitoring program for construction phase.

Construction site Prepare site management plan before Contractors management construction commencement

GRM disclosure Disclose GRM focal points to affected before Contractors, people at the main entrance to each construction PACs construction site. commencement

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Issue Action By When By Whom

Water abstraction PACs install water meter to measure the During operation PACs water use and to ensure the water abstraction permits with defined volumes

Waste water and PACs that involve in livestock and poultry Next reporting PACs involved in manure breeding design and construct waste water period wastewater and management and manure treatment facilities or contract manure third-party to for manure treatment. management

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APPENDIX 1. COMPLIANCE WITH ENVIRONMENTAL ASSURANCES

No. Description Schedule Status/Remarks

1 Conditions for Award of Contract LA, Being complied Schedule with. The Borrower shall cause SPG, through the Project Executing Agencies 4, para. 7 acting under the Onlending Agreements, not to permit the award by any PAC of any Works contracts which involve environmental impacts until:

(a) The county-level or other relevant Environmental Protection Bureau for the PAC’s location has approved the domestic environmental impact assessment required for the Works in accordance with applicable laws and regulations; and

(b) SPG has confirmed, through the Project Implementing Agencies, that the PACs have incorporated the relevant provisions from the EMP into the Works contract.

2 Onlending Agreements PA, Being complied Schedule, with. SPG shall cause the Project Implementing Agencies to enter into legally para. 2 valid and binding Onlending Agreements with the PACs located within their respective administrative regions. SPG agrees that, subject as provided below, interest rates and fees on the onlent loans will be as Onlending determined by each Project Implementing Agency in consultation with agreements SPG and that tenors of the onlent loans will be as set out in the PAM. were signed SPG shall ensure that the Onlending Agreements clearly set out all of the between PACs obligations to be performed by the respective PAC under the Loan with their Agreement, this Project Agreement, the PAM, the EMP, the SDAP and respective PIAs. the GAP so as to enable SPG to perform its undertakings hereunder. Without limiting the foregoing, SPG shall ensure that the Onlending Agreements provide that:

(c) The PAC will use the proceeds of the loan to purchase specified Goods and Works and to pay for a portion of the cost of Consulting Services for specified Project uses, in the case of the Goods and Works in accordance with the Procurement Plan in the PAM and incorporating into the bidding contracts and contracts for all such Goods and Works, the environmental, labor, health, safety, gender, social, integrity and other requirements specified herein and in the PAM to be included in bidding and contracting documents;

(e) The PAC will ensure that no proceeds of the loans under the Onlending Agreement are used for any activities prohibited under Appendix 5 of the SPS;

(h) In applying the loan proceeds to the specified Project uses and in operating equipment and facilities funded in whole or part by the loan, the PAC will comply with all applicable environmental and social requirements in the EMP, the GAP and the SDAP;

((k) The PAC will promptly notify the Project Implementing Agency or SPADO of any occurrence that is not in accordance with, or not anticipated by, the IEE, the EMP or the SPS and will cooperate with SPG, the Project Implementing Agency and SPADO to develop and implement corrective or remedial actions;

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No. Description Schedule Status/Remarks

(r) In addition to general undertakings about compliance with environmental laws and regulations and the EMP, the PAC shall make the following specific undertakings to the extent relevant to its activities under the Project and will also give any specific undertakings that SPG considers necessary for a particular PAC:

(i) Before and during implementation of the Works to be funded in whole or in part by the loan, the PAC will ensure that appropriate officers and staff complete training that is provided by the PPMO on implementation and supervision of the EMP.

(ii) Prior to borrowing any funds for Works, arrangements for the “external environment monitoring” described in Table EMP-4 of the EMP will be finalized. The external environment monitoring will be conducted by a domestic-certified agency, e.g., the environment monitoring station (EMS) of a county environment protection bureau, design institute or consulting firm. A clear arrangement will be made with the selected agency (either by the government or PAC) for the monitoring. The arrangement will be formalized in a written statement and/or contract, and a copy provided to ADB.

(iii) Prior to commencing any construction activities, the PAC will: (A) obtain water resource permits for existing facilities to be connected to the facilities funded under the Project and for the Project-funded facilities, and will provide the PPMO and the Project Implementing Agency or its project management office copies of these permits; (B) with the support of loan implementation consultants specified in the PAM, finalize the design of a water management plan for all Project-funded facilities, including a water monitoring program; (C) install the necessary equipment to implement the water monitoring program, including water meters at key water source and/or extraction points (e.g., wells, reservoirs, and/or municipal pipeline services); (D) initiate the water monitoring program with existing operations and then expand it to operations of the Project-funded facilities as they come on line; and (E) implement the water efficiency measures included in the facility designs and operational procedures.

(iv) The PAC will ensure that the design and operation of its facilities for solid and liquid waste collection, treatment, storage, and disposal: (A) comply with relevant regulatory standards; (B) match waste volume levels predicted in the Project’s feasibility study report; and (C) avoid pollution of surface water, groundwater and lands.

(v) If the PAC has biogas facilities, it will ensure that the design, management and monitoring of biogas facilities comply with regulatory standards for discharge of liquid and solid residuals such as organic fertilizer and will obtain confirmation from the relevant county environment protection bureau that all regulatory standards are met prior to commencing any construction.

(vi) If the PAC is engaged in livestock production and processing, (A) it will ensure that its processing facilities for waste, wastewater, and feed are equipped with electricity 48

No. Description Schedule Status/Remarks

meters to measure energy use; and (B) it will maximize energy savings measures in design and operation of all such processing facilities.

(vii) The PAC will not expand site operations beyond its land and stock inventories described in the domestic feasibility study reports and ADB project documents.

(viii) Where the PAC’s Works will involve “associated facilities” as described in the EMP, it: (A) will ensure that such associated facilities are operational not later than the Project- funded facilities; and (B) it will not make any changes to such associated facilities that might impact their capacity or functioning without the consent of the Project Implementing Agency with the concurrence of SPG and ADB.

3 Prohibited List of Investments PA, Complied with Schedule, SPG shall ensure that no proceeds of the Loan are used to finance any para. 19 activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS.

4 Environment

SPG shall, and shall cause the PACs to, ensure that the preparation, PA, Being complied design, construction, implementation, operation and decommissioning of Schedule, with. the Project and all Project facilities comply with (a) all applicable laws and para. 6 regulations of the Borrower relating to environment, health and safety; (b) the Environmental Safeguards; and (c) all measures and requirements set forth in the IEE, the EMP, and any corrective or preventative actions (i) set forth in a Safeguards Monitoring Report, or (ii) which are subsequently agreed between ADB and SPG.

5 Safeguards – Related Provisions in Bidding Documents and Works PA, Being complied Contracts Schedule, with para. 9 SPG shall ensure that all bidding documents and contracts for Works entered into by the PACs contain provisions that require contractors to:

(a) comply with the measures relevant to the contractor set forth in the IEE and the EMP, and any corrective or preventative actions set forth in (i) a Safeguards Monitoring Report, or (ii) subsequently agreed between ADB and SPG;

(b) make available a budget for all such environmental and social measures; and

(c) provide SPG with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE and the EMP.

6 Pre-construction Readiness

SPG shall ensure that the PPMO implements all of the following PA, Complied with measures before the Project Implementing Agencies provide any funds Schedule, to the PACs for: (a) appoint at least one qualified environment officer as para. 10-12 full time PPMO staff; (b) ensure that arrangements that satisfy the

requirements of paragraph 2(r)(ii) of this Schedule have been made for all PACs for environmental impact monitoring; and (c) ensure that the arrangements require all environment monitoring agencies to report their

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No. Description Schedule Status/Remarks

monitoring results to the Project Executing Agencies or their project management offices at the same time as they report it to the PACs.

SPG shall cause the PPMO to ensure that public consultations required under the SPS and the EMP are completed for Shanxi Tianzhirun Date Processing Co., Ltd, and Shanxi Xinjiang Vegetable Industry Not applicable as Development Co., Ltd. before they commence preparing detailed the two PACs engineering designs for their respective subprojects. would not participate in the project anymore. Before and during the implementation of Works, SPG shall cause the PPMO to organize and conduct training on implementation and supervision of the EMP for the Project Implementing Agencies, SPADO

and their project management offices, the PACs, construction supervision companies, and contractors. Being complied with.

7 Safeguards Monitoring and Reporting

SPG shall do the following:

(a) submit semi-annually Safeguards Monitoring Reports to ADB in PA, Being complied respect of implementation of, and compliance with, Environmental Schedule, with. Safeguards, and the EMP during construction and the implementation of para. 13 the Project until the issuance of ADB’s Project completion report, unless a longer period is agreed in the EMP, and disclose relevant information from such reports to the respective affected people under the Environmental Safeguards promptly upon submission;

(b) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP and the LURT agreements, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and

(c) report any actual or potential breach of compliance with the measures and requirements set forth in the EMP promptly after becoming aware of the breach.

8 Grievance Redress Mechanism SPG shall ensure that a safeguards grievance redress mechanism PA, Being complied acceptable to ADB is established in accordance with the provisions of the Schedule, with. IEE, the EMP and the PAM at the project management offices and the para. 25-26 PACs, within the timeframes specified in the relevant IEE, EMP and PAM, to consider safeguards complaints. GRM SPG shall ensure that within 60 days following the Effective Date of the established at Loan Agreement, a grievance redress mechanism acceptable to ADB is PPMO and established for non-safeguards complaints in accordance with the PAM. participating In each case, such mechanism shall function to (a) review and document PACs as well. eligible complaints of Project stakeholders; (b) proactively address grievances; (c) provide the complainants with notice of the chosen mechanism and/or action; and (d) prepare and make available to ADB upon request periodic reports to summarize (i) the number of complaints received and resolved, (ii) chosen actions, and (iii) final outcomes of the grievances and make these reports available to ADB upon request. Eligible non-safeguards complaints include those related to the Project, any of the service providers, any person responsible for carrying out the

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No. Description Schedule Status/Remarks

Project, complaints on misuse of funds and other irregularities as well as gender issues.

9 Labor Standards, Health and Safety

SPG shall ensure that the core labor standards and the Borrower’s PA, Being complied applicable laws and regulations are complied with during Project Schedule, with. implementation. SPG shall cause the PACs to include specific provisions para. 14-15 in the bidding documents and contracts financed by onlent proceeds of ADB loans under the Project requiring that the contractors, among other things: (a) comply with the Borrower’s applicable labor law and regulations and incorporate applicable workplace occupational safety norms; (b) in particular, do not use child labor, do not discriminate workers in respect of employment and occupation, do not use forced labor; and (c) disseminate, or engage appropriate service providers to disseminate, information on the risks of sexually transmitted diseases, including HIV/AIDS, to the employees of contractors engaged under the Project and to members of the local communities surrounding the Project area, particularly women.

SPG shall strictly monitor compliance with the requirements set forth in paragraph 14 above and provide ADB with regular reports.

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APPENDIX 2. PHOTOES

Environment bulletin board

Body temperature test Transport vehicle disinfection

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Construction site disinfection Work camp disinfection

Health and safety education On site safety training

Medical materials Dust suppression

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Bulletin board Warning signs

Dust suppression Dust suppression

Dust suppression Dust suppression

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APPENDIX 3. COVID-19 RISK ASSESSMENT

Loan 3567-PRC: Shanxi Inclusive Agricultural

Value Chain Development Project

Prepared by Shanxi Foreign Capital Poverty Alleviation Project Management Office for the Shanxi Provincial Government and the Asian Development Bank

7 July 2020

55

Loan 3567：Health and Safety Management Plan for

Shanxi Inclusive Agricultural Value Chain Development Project

I. COVID-19 INFECTION IN PROJECT AREA

A. Shanxi Province

1. As of 28 June, 2020, the COVID-19 infection status in Shanxi Province is shown in the table below.

2. As of 28 June, 2020, there are totally 134 domestic cases have been confirmed in Shanxi, of which 133 cases were confirmed by 25 February 2020 and all recovered by 12 March 2020. Since 12 March, there is no new case confirmed for 48 days until one case in Taiyuan was newly confirmed in 2 May 2020. The last confirmed person was recovered in 9 May 2020.

3. As of 28 June 2020, there are totally 64 imported cases have been confirmed in Shanxi, of which 5 cases were imported from UK and 59 cases imported from Russia. The last case was confirmed in 16 April 2020 and all imported cases were recovered by 12 May 2020.

4. As of 28 June, 2020, the days of no new confirmed case is 56 days.

City Newly Total Recovered Death Suspected confirmed confirmed

Domestic cases

晋中 Jinzhong 0 37 37 0 0

太原 Taiyuan 0 21 21 0 0

大同 Datong 0 12 12 0 0

运城 Yuncheng 0 19 19 0 0

晋城 Jincheng 0 10 10 0 0

朔州 Shuozhou 0 8 8 0 0

长治 Changzhi 0 8 8 0 0

56

忻州 Xinzhou 0 7 7 0 0

吕梁 Lvliang 0 6 6 0 0

阳泉 Yangquan 0 4 4 0 0

临汾 Linfen 0 2 2 0 0

Subtotal 0 134 134 0 0

Imported cases 0 64 64 0 0

Note: cities highlighted in yellow are project cities

5. The emergency response level of public health emergencies in Shanxi Province was downgraded from level 1 to level 2 in February 24 2020 and further downgraded to level 3 in 10 March 2020.

B. Project Counties

6. The subprojects are located in 10 counties including Qin, Taigu , Heshun, Fenxi, Quwo, Xiangning, Liulin, Shilou, Jishan, and Guangling. As of 28 June, 2020, the COVID-19 infection status in the project counties is shown in the table below.

County Newly Total Recovered Death confirmed confirmed

Jishan 0 1 1 0

Xiangning 0 1 1 0

Qin 0 0 0 0

Taigu 0 0 0 0

Heshun 0 0 0 0

Fenxi 0 0 0 0

Quwo 0 0 0 0

Liulin 0 0 0 0

Shilou 0 0 0 0

Guangling 0 0 0 0

Total 0 2 2 0

7. Totally 2 cases were confirmed in 2 of the 10 project counties. The one in Jishan 57

County was confirmed in 4 February 2020 and another one in Xiangning County was confirmed in 26 January 2020. Till 28 June 2020, there has been no new case confirmed for 145 days in the project counties.

II. POLICIES AND GUIDELINES FOR COVID-19 PREVENTION AND CONTROL

A. International Practice Guidance

8. Considerations for public health and social measures in the workplace in the context of COVID-19, World Health Organization. 2020. Geneva. Available here: https://www.who.int/publications-detail/considerations-for-public-health-and-social- measures-in-the-workplace-in-the-context-of-covid-19;

9. Working safely during COVID-19 in construction and other outdoor work. Guidance for employers, employees and the self-employed. HM Government. 2020. Available here: https://assets.publishing.service.gov.uk/media/5eb961bfe90e070834b6675f/working-safely- during-covid-19-construction-outdoors-100720.pdf

10. COVID 19 Standard Protocols. The Canadian Construction Association. Available here: https://www.cca-acc.com/wp-content/uploads/2020/04/CCA-COVID-19-Standardized- Protocols-for-All-Canadian-Construction-Sites-04-16-20.pdf

B. Domestic Regulations and Policy Principles

11. On 28 January 2020, China Center for Disease Control (CDC) issued Guideline for COVID-19 Virus Prevention. The guideline is available at the PRC CDC official website. It focuses on personal details and family protection, home medical observation, rational medical treatment, psychological counseling and other details. It guide the public to have a correct understanding, actively combine prevention and control, scientific protection, eliminate panic, and respond rationally. http://www.chinacdc.cn/jkzt/crb/zl/szkb_11803/jszl_2275/202001/t20200131_212080.html

12. In 8 April, 2020, Guideline on COVID-19 Prevention and Control Technology was released by PRC CDC to prevent the occurrence of cluster epidemic and to restore the normal order of production and human life. The guidelines were formulated for key provinces and autonomous regions to implement the joint prevention and control mechanism of COVID-19 disease. Health management shall be carried out for personnel from high-risk, medium risk areas and overseas according to local requirements; for personnel from low-risk areas, if their body temperature is normal, they can resume to work, and no isolation is required. (http://www.chinacdc.cn/jkzt/crb/zl/szkb_11803/jszl_11815/202004/t20200410_215890.html)

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13. On 21 February, 2020, the State Council issued Guideline for Prevention and Control of COVID-19 during Re-opening of Production or Resume Working. The guideline specifically states the different measures for different risk level areas for enterprises and institutions to resume work and production steadily and orderly . http://www.chinanews.com/gn/2020/02-22/9100813.shtml.

14. On 7 April 2020, the Central Leading Group on COVID-19 Virus Prevention and Control issued Guideline on Promoting Resumption of Work and Production while Effectively Preventing and Controlling COVID-19 Virus. It guides the prevention and control of COVID- 19 virus when resumption of work and production. http://wjw.shanxi.gov.cn/gwyggl08/25525.hrh

15. On 22 February 2020, Shanxi Leading Group for COVID-19 virus control issued Notice on Implementing Covid-19 virus Prevention and Control plan in Shanxi Province. The notice required to prevent and control COVID-19 virus by adopting regional classification of scientific control and precise treatment strategy. The notice require to assess and risk levels (low, medium and high) by county and public the dynamic risk levels of each county since 29 February 2020.

16. On 30 April, 2020, Shanxi CDC issued Notice on Implementation of Normalization COVID-19 Virus Prevention and Control. The notice required to conduct city level COVID-19 risk assessment. There should be no more barriers to the movement of people between low- risk areas (except for those entering the country). http://wjw.shanxi.gov.cn/gsggl08/25721.hrh

C. Applicable Local Requirements and Procedures

17. Guidelines for Employment Services for Enterprises and Projects to Resume Work and Production, 12 February 2020, Shanxi Government. The guideline promote the application of Shanxi Health Code System, which has gathered residents' electronic health records, inpatient and outpatient records, medicine purchase records, information of people entering Shanxi from areas with high risk areas, confirmed and suspected cases nationwide, people who may have close contacts with confirmed case in the country, and information of isolated communities. After complete the real name authentication, the system will automatically check and compare the background data, and generate two different color QR codes of green and orange according to the comparison results. Among them, green means that the health status of the residents has passed the verification. Orange means that the health status of the residents is not passed, which belongs to at least one of the following six situations:

• Had fever within 14 days

• Come from high-risk areas

• Confirmed or suspected case

59

• Close contact with confirmed case

• Residents of isolated communities

• Personnel who bought fever medicine within 14 days

18. Shanxi Leading Group for COVID-19 Prevention and Control requested the enterprises or contractors to:

• Designate a deputy general manager to be responsible for the implementation of the prevention and control measures for the resumption of work and production

• Establish employee/workers health records and implement daily dynamic registration system

• Provide sufficient prevention and control materials

• Prepare isolation observation site

• Implement personnel access management. Temperature measurement shall be conducted. Only those whose body temperature does not exceed 37.2 ° C can enter or leave the construction site.

• Disinfect working areas

• Strengthen workers dining management

• Strengthen dormitory management

• Minimize staff aggregation

• Strengthen traffic protection

• Strengthen publicity and education

• Strengthen safety management

19. On 19 February 2020, Shanxi Leading Group for COVID-19 virus prevention and control issued Notice on the implementation of prevention and control at different levels and restoration of normal production and living order. The notice require to assess and risk levels (low, medium and high) by county and public the dynamic risk levels of each county.

III. COVID-19 IMPACT ON THE PROJECT

A. Impact on construction schedule

20. At present, three subprojects have initiated to construction of civil works. The actually impact on the three subprojects construction is summarized as following.

• For Hongchang subproject, it is planned to initiate the civil work in early March 2020. 60

The actually opening of construction site is on 6 March 2020. The COVID-19 have only slight impact on the construction schedule.

• For Beiye subproject, it is planned to initiate civil work construction in 22 April 2020 while the actual re-opening construction sites is on 22 May 2020 outbreak of COVID- 19 caused one month delay.

• For Shilou Shude subproject, it is planned to initiate the civil work in late February 2020. The actually opening of construction site is on 26 March 2020. The COVID-19 caused one month delay on the civil work construction.

B. Impact on construction workers

21. The COVID-19 pandemic caused the construction workers unable to be in place. In order to prevent the spread of the COVID-19 pandemic, traffic control and isolation control measures have been taken in most parts of the country, which makes it difficult for many construction workers to return to the construction site as scheduled. Even if they return to the construction site, they have to be closed in the dormitory building for 14 days before taking up their posts. There are almost no construction all over China in January and February 2020. Most of the construction workers have to stay home and many of them have no income during this period.

22. Traffic control and isolation control measures affected all communities in Project Counties.

23. As of 28 June 2020, all subproject PACs have been re-opened their work places and construction sites.

C. Impact on communities

24. In 25 January 2020, the Shanxi provincial government declared to launch level 1 public health emergency response to the outbreak of COVID-19. Traffic control and isolation control measures have been implemented until 10 March 2020 when the health emergency response level was downgraded to level 3. These measures affected all communities in Project Counties. Travel, working and daily life of almost all the people in China were affected. Some people’s income was reduced due to delay in resume of work. Price of some daily supplies such as vegetables, fruits, masks and disinfectant increased.

IV. SUMMARY MEASURES BY THE PROJECT TO MANAGE THE OUTBREAK

A. Measures taken before resumption of construction work

25. Preparation. According to Covid-19 Prevention and Control Manual for Construction Site issued by Shanxi Leading Group for COVID-19 virus prevention and control. Following measures have been implemented before resumption of construction work. 61

• Develop H&S plan, develop H&S Plan, setup institutional and responsibilities for H&S Plan implementation

• Establish register system. Implement "one person, one file" management system. The contractors contacted the returned personnel from other places in advance to understand the dynamics and physical health of the returned workers

• Prepare sufficient epidemic protection materials. Enterprises (projects) shall, according to the needs of epidemic prevention, provide employees with protective articles such as masks, gloves, thermometers, hand sanitizer, disinfectant, alcohol and other disinfection articles, set up isolation rooms, and purchase emergency equipment such as protective clothing, goggles and medical equipment. Qualified enterprises (projects) can connect with the competent departments of the industry, contact the necessary medical staff, and prepare for emergency response.

• Carry out comprehensive disinfection in the construction sites. Before resuming work, the contractors entrusted professional disinfection organizations to disinfect the office places, canteens, dormitories, toilets and construction areas to be resumed.

• Arrange construction plan reasonably. The contractors should scientifically arrange the construction plan during the epidemic period, implement decentralized construction, and reduce the aggregation construction area as far as possible.

• Develop Emergency Response Plan. (i) The contractors developed emergency response plan, set up an epidemic prevention and control leading group with the project manager as the team leader at the construction site, organize and set up special work teams, and specify several site health specialists, as well as their responsibilities, institutions and division of labor. (ii) Temporary isolation room has been set up with good ventilation, such as bed, stool, thermometer, dirt bucket, etc. (iii) If the temperature is higher than 37.3 ℃, the site health officer will register the relevant information (including name, ID card number, permanent residence, current residence and contact information) and take them to the temporary observation room to contact the local community medical staff immediately. And report to the construction competent department and its entrusted construction safety project supervision organization. (iv) If suspected cases are found in the construction site, the construction site shall be closed down and measures shall be taken by the local health and epidemic prevention department. The person in charge of the construction site shall immediately pacify the site personnel and register the information of the personnel.

26. Application for construction site resumption. (i) The PACs filled in the record form of construction project construction site resumption. (ii) The contractors and the supervision company evaluated the COVID-19 prevention and control measures at the construction site. (iii) The PACs submitted the application to the local construction administrative department and get the approval.

27. Consultation and disclosure. Prior to the start of the construction, the PACs and contractors consulted with the representatives from the nearby villages of the re-opening of construction sites. The villagers were informed the contractors’ construction plan and 62

arrangement, COVID-19 prevention plan to make them aware of the project activities and management in coping with COVID-19 risks.

B. Measures taken during construction

28. In combination with the guidelines on epidemic prevention and control measures for enterprises and institutions under the State Council and the requirements of the local health commissions, all subprojects have implemented mitigation measures to prevent and control COVID-19 virus spreading. Specific measures are listed below.

29. Management of employees and workers. Detail measures include:

• Only heathy workers from low-risk areas are allow to resume work. The contractors contacted the returned personnel from other places in advance to understand the dynamics and physical health of the returned workers.

• Conducted body temperature test for all workers

• Workers filled registration form of self-health management of returning workers at construction sites.

30. Implement health monitoring and reporting system. Detail measures include:

• Monitor and record the staff movement. Carry out health management according to the local requirements on people from different risk areas, and carry out medical observation at home or in isolation for the personnel from the high risk areas. For the staff who are in isolation and live in the dormitory, the body temperature have been detected twice a day to master the health status of the absent personnel.

• Health reporting system. Set up a suspicious symptom reporting telephone. When employees or workers have fever and respiratory symptoms, they should report to the PAC truthfully in time. Summarize the health status of employees every day, report to the PAC, timely report the abnormal situation to the local Health Commission and take corresponding prevention and control measures.

31. Management of Construction Sites. Detail measures include:

• Site sanitation and disinfection. Before resuming work, the contractors entrusted professional disinfection organizations to disinfect the office places, canteens, dormitories, toilets and construction areas to be resumed. The disinfection has been carried out at least twice a day.

• Body temperature test. The contractors arranged special personnel with infrared thermometer to detect and record the body temperature of all personnel entering office building or construction site. Only those body temperature is normal are allowed to 63

enter.

• Access management of construction sites. . Each contractor and supervision company assigned special personnel to strictly manage all the entrance to the subproject construction site, office building and dormitory. Real name registration management has been implemented for workers on construction site. Personnel irrelevant to the project are not allowed to enter.

• Workplaces have been kept ventilated. When conditions permit, natural ventilation is preferred. In case of air conditioning is used, air supply system are checked daily to ensure safe and sufficient. All exhaust air is directly discharged to the outside, and the return air channel have been closed when air conditioning is not used.

• Ensure the normal operation of hand washing and other facilities. Hand washing equipment were provide in the workplace, and hand washing and spraying facilities have been kept in normal operation. If there is no hand washing equipment, it have been equipped with disposable disinfection products. (iv) Clean and disinfect the working and living places. The workplace, canteen, elevator, toilet, hand washing basin, commuting tools and other public areas and related articles have been regularly disinfected by special personnel. The frequent contact parts such as elevator button and door handle have been disinfected properly. (v) Reduce staff gathering and collective activities. Guide employees to line up orderly when using passageways, elevators, stairs and smoking areas, keep proper spacing, and do not talk to others when smoking. Number of meetings are reduced and meeting time and scale has been shortened. Air circulation has been properly maintained in the conference room, and where possible video or telephone meetings are applied. In principle, there are no more than 6 people in each dormitory, with an average of no less than 2.5 square meters. (vi) Managed to reduce group meal. Appropriately extend the dining time in the canteen, implement staggered peak dining, and use lunch boxes and scattered meals when possible. Cleaning and disinfection of recycled tableware, and disposable tableware have been used if there is no disinfection condition. Employees and construction workers are required to avoid sitting face to face and not talking to others when eating. (vii) All contractors have provided necessary medicines and protective materials, and cooperate with disease control departments to carry out isolation observation and tracking management. The contractors that have no clinic established contact with the medical institution nearby to ensure that the staff and construction workers can receive timely treatment or medical service. (viii) Standardize garbage collection and treatment. Special recycling bins for masks have been set up in public areas to strengthen the cleaning of dustbins and carry out disinfection treatment regularly. Classified management of garbage, collect and transport in time.

• Guide staff and construction workers personal protection: (i) strengthen the popularization of epidemic prevention and control knowledge after returning to work in various forms, so that employees can fully understand the prevention and control knowledge, master the protection points, enhance the protection awareness, and support the prevention and control work. (ii) All staff and construction workers are requested to reduce unnecessary going out and avoid going to places where people gather, especially places with poor air mobility. All staff are required to appropriately wear masks in crowded areas.

• Emergency response. (i) Clarify the responsibilities for each division and construction team for prevention and control. The director of each division or team is the first person 64

responsible for epidemic prevention and control. And the designated special person is responsible for the actually monitoring and implementation of prevention activities. For example, for Shilou Shude subproject, Mr. Xue from the PAC is the designated person, Mr. Xinfusuo is the person from contractor while Mr. Liang Xiaoqiang is the designated person from the supervision company. Emergency measures and handling procedures for epidemic prevention and control have been developed. (ii) Set up isolation observation area. When the staff or construction worker has suspicious symptoms, they will be isolated in the area in time and reported to the local disease control department, and the staff or construction worker will be arranged to seek medical treatment nearby according to relevant regulations.

32. Management of accommodation and dining. (i) The per capita use area of the dormitory is greater than 2.5 square meters. Each dormitory have no more than 6 workers and is equipped with openable windows to keep indoor ventilation and disinfect daily. (ii) Canteen cooks work with certificates. Measured the body temperature of the canteen staff every day, require the wearing of the respirator, do the disinfection work of tableware, keep the operation room clean, strictly purchase the food, check the purchase and register the accounts, advocate the use of fast food boxes, implement the serving of individual dishes, supervise the dining staff to wash their hands before meals, eat in the ventilated place, avoid cross infection, and strictly control. The number of people dining in the canteen was controlled.

33. Supervision. The contractors and supervision company have been carried out multi- level inspection through self-inspection, cross inspection and spot check. The contractors reported the COVID-19 inspection situation to the PAC before 18:00 every day.

V. CONCLUSION ON THE LEVEL OF RISKS

34. At present, the State Council and the National Health Commission jointly publish the epidemic situation every day and monitor the epidemic risk level in real time. Individuals can query the epidemic risk level of each county or city through the State Council website or mobile phone. http://bmfw.www.gov.cn/yqfxdjcx/index.html.

35. For the Beiye subproject, the contractor of Beiye subproject is Shanxi Jinfeng Construction Engineering Company which is based in Taiyuan Shanxi. The supervision company is Shanxi Shengxingyuan Engineering Project Management Company which is based in Taiyuan City too. For the Shilou Shude subproject, the contractor is Zhongnan Construction Company which is based in Xi’an. Of the total 13 construction workers, 11 workers are from are from Lvliang City. The supervision company is Shanxi Zhixinda Engineering Supervision Company which is based in Taiyuan City. All construction materials are locally available such as steel for Shude subproject is from Lvliang City while earth and cement are from Shilou County.

36. According to the query results on June 28, the epidemic risk levels of all cities and counties involved in the project are low-risk areas.

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VI. NEXT STEPS TO MANAGE RISKS

37. According to the COVID-19 epidemic prevention requirements, the contractors will dynamically adjust the epidemic prevention measures according to the requirements of the local epidemic prevention office and the local epidemic risk level according to the requirements of the relevant technical guidelines for prevention and control of COVID-19 in key places, key units and key groups, and report the health status and abnormal situation of employees in a timely manner.

38. The PAC will invite the local health experts to conduct training to all of the construction workers, the staff of PACs and CPMOs to ensure each employee or contractor knows the risks posed by COVID-19 and what their individual and collective responsibilities are in implementing H&S.

39. Each subproject contractor will further implement epidemic prevention and control measures, and make preparations for epidemic prevention and control for the operation of the project after construction. Each contractor will formulate specific epidemic prevention guidelines and measures according to its own characteristics.

40. Each contractor should refine their Health and Safety (H&S) plan including emergency response plan in response to COVID-19 and submit to the PACs, CPMOs and PPMO for approval.

41. Each contractor should designate an Environment Health and Safety (EHS) person to record the EHS status and report to the PAC on weekly basis. The PACs should report the EHS status to the CPMOs, MPMOs and PPMO on monthly basis. The updates on the implementation effectiveness of the H&S plan should also be recorded in the next scheduled EMRs.

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